DELIVERING SERVICE THROUGH INTERMEDIARIES

1. DELIVERING SERVICE
THROUGH INTERMEDIARIES
PRESENTING BY;
Vinayak Jituri
17MBA636
Manjunath Merwade
17MBA625

2. LEARNING OBJECTIVES
• Identify the primary channels through which
services are delivered to end customers.
• Provide examples of each of the key service
intermediaries.
• Discuss the benefits and challenges of each
method of service delivery.
• Outline the strategies that are used to manage
service delivery through intermediaries.

3. OUTLINE
• Service Distribution
• Direct or Company-Owned Channels
• Franchising
• Agents and Brokers
• Common Issues Involving Intermediaries
• Strategies for Effective Service Delivery
Through Intermediaries

4. SERVICE DISTRIBUTION
Direct Delivery Delivery of Service Through Intermediaries

5. FRANCHISING
Franchising is a system used by a company (franchisor) that grants others (franchisees)
the right and license (franchise) to market a product or service under the franchisor’s
trade names, trademarks, service marks, know-how and method of doing business. It is
a system for distributing products or services through independent resellers. It is a
format of mutual dependence which allows both the franchisor and the franchisee
realize profits and benefits.

6. BENEFITS AND CHALLENGES FOR
FRANCHISERS OF SERVICE
• Leveraged business format for
greater expansion and revenues
• Consistency in outlets
• Knowledge of local markets
• Shared financial risk and more
working capital
• Difficulty in maintaining and motivating franchisees
• Highly publicized disputes and conflict
• Inconsistent quality
• Control of customer relationship by intermediary

7. BENEFITS AND CHALLENGES FOR
FRANCHISERS OF SERVICE
• An established business
format
• National or regional brand
marketing
• Minimized risk of starting a
business
• Encroachment
• Disappointing profits and revenues
• Lack of perceived control over operations
• High fees

8. AGENTS AND BROKERS
AGENTS
A agent is some one who legally represents the principal and has the authority
to act on the pricipal’s behalf.
BROKER
A agent in some one who legally represents the insured even though he or she
receives a commision from the insurer.

9. BENEFITS AND CHALLENGES IN SERVICES
THROUGH AGENTS AND BROKERS
• Reduced selling and distribution
costs
• Intermediary’s possession of
special skills and knowledge
• Wide representation
• Knowledge of local markets •
Customer choice
• Loss of control over pricing
• Representation of multiple service principals

10. BENEFITS AND CHALLENGES IN
DISTRIBUTION OF SERVICES
• Consistent delivery for
standardized services
• Customer convenience
• Wide distribution
• Quick customer feedback
• Price competition
• Inability to customize with highly standardized
services
• Lack of consistency due to customer
involvement
• Changes in consumer behavior
• Competition from widening geographies

11. COMMON ISSUES INVOLVING
INTERMEDIARIES
• Conflict over objectives and
performance
• Difficulty controlling quality and
consistancy across area
• Tension between empowerment and
control
• Channel ambiguity

12. STRATEGIES FOR EFFECTIVE SERVICE
DELIVERY THROUGH INTERMEDIARIES
* Empowerment Strategies
* Control Strategies
* Partnering Strategies

13. STRATEGIES FOR EFFECTIVE SERVICE
DELIVERY THROUGH INTERMEDIARIES
Empowerment Strategies
Empowerment is a means by which
individuals are given the authority to
analyze situations autonomously and
take proactive decisions. This instills a
sense of ownership towards the
company in the employees.

14. STRATEGIES FOR EFFECTIVE SERVICE
DELIVERY THROUGH INTERMEDIARIES
Control Strategies
Strategic control is a term used to
describe the process used by organizations
to control the formation and execution
of strategic plans, it is a specialised form
of management control, and differs from
other forms of management control in
respects of its need to handle.

15. STRATEGIES FOR EFFECTIVE SERVICE
DELIVERY THROUGH INTERMEDIARIES
Partnering Strategies
Partnering is both challenging and resource
intensive. A partnering strategy is essential to
guide an organisation to make robust choices
on its investment in collaboration: the right
issue area, the right type of
partnerships, and the right type of partners
to ensure the greatest value to the
organisations.