Service Distribution
Discuss the various ways in which services can be distributed and the challenges faced using the various channels of distribution.
INTRODUCTION
A service can be defined as an essentially intangible benefit either on its own right or as a significant part of a tangible product which through some form of exchange satisfies an identified need (Palmer, 2001).
From the dictionary it is said to be a system or organization that provides for a basic public need.
Distribution is the process of making a product or service available for use or consumption by a consumer or business user.
A channel is simply a route and/or means. We can therefore say that service distribution channels are the routes through which economic activities are allocated, spread or positioned within a given area to create value and provide benefits to customers thus resulting in a desired change of state on the part of the service recipients by making these activities available.
There are different types of service offers i.e.
• Pure tangible good: These are primarily tangible goods with no accompanying service e.g. toothpaste, sugar, etc.
• Tangible goods with accompanying service.
• Hybrid: consists in equal parts both service and goods e.g. a restaurant offers food (good) as well as ambience (service).
• Major Service with accompanying goods and services e.g. airline travelers get both the service of transport and goods in form of food and magazines etc.
• Pure service: is primarily a service offer e.g. massage, etc.
There are further distinctions of service related to the equipment used, the need met (personal or business), objectives (profit or non-profit), ownership (public or private), among others.
CHARACTERISTICS OF SERVICES.
• Intangible: Services cannot be felt, tasted or heard before they are purchased.
• Perishable: They cannot be stored and are available for only that time.
• Inseparable: They cannot be separated from the provider because they
INTRODUCTION
A service can be defined as an essentially intangible benefit either on its own right or as a significant part of a tangible product which through some form of exchange satisfies an identified need (Palmer, 2001).
From the dictionary it is said to be a system or organization that provides for a basic public need.
Distribution is the process of making a product or service available for use or consumption by a consumer or business user.
A channel is simply a route and/or means. We can therefore say that service distribution channels are the routes through which economic activities are allocated, spread or positioned within a given area to create value and provide benefits to customers thus resulting in a desired change of state on the part of the service recipients by making these activities available.
There are different types of service offers i.e.
• Pure tangible good: These are primarily tangible goods with no accompanying service e.g. toothpaste, sugar, etc.
• Tangible goods with accompanying service.
• Hybrid: consists in equal parts both service and goods e.g. a restaurant offers food (good) as well as ambience (service).
• Major Service with accompanying goods and services e.g. airline travelers get both the service of transport and goods in form of food and magazines etc.
• Pure service: is primarily a service offer e.g. massage, etc.
There are further distinctions of service related to the equipment used, the need met (personal or business), objectives (profit or non-profit), ownership (public or private), among others.
CHARACTERISTICS OF SERVICES.
• Intangible: Services cannot be felt, tasted or heard before they are purchased.
• Perishable: They cannot be stored and are available for only that time.
• Inseparable: They cannot be separated from the provider because they
References: Felix O. Okatch, Marketing Management Systems (Pesisu Industries, 2002) G. Lancaster and L. Massingham, 'Essentials of Marketing ' (McGraw-Hill, 1988) P. Kotler, 'Marketing Management ' (Prentice-Hall, 7th ed., 1991). Pascal Petit (1987). Services, the New Palgrave: A Dictionary of Economics, v. 4, pp. 314-15. Richard E. Wilson, 'A Blueprint for Designing Marketing Channels ', (www.chicagostrategy.com, 2008) Roger J. Calantone, Michigan State University, Eli Broad College of Business, East Lansing, Michigan, USA Scott B. Keller, Michigan State University, Eli Broad College of Business, East Lansing, Michigan, USA William J. Stanton, Fundamentals Of Marketing (McGraw-Hill, 5th ed., 1978) www.emeraldinsight.com