Title: Channels for Services
1Channels for Services International Marketing
- Module 11
- Chapters 17 and 18
2Notes for students
- This is the last lecture for the semester.
- Notes on exam preparation are provided on the
unit home page at - http//www.usq.edu.au/ancil/fob/b-51363
3Lecture Overview
- Channels for services
- four special characteristics of services
- implications for channel management
- role of service intermediaries
- managing service intermediaries
- Channels for international marketing
- marketing channel environment
- modes of entry into foreign markets
- motivating international channel members
4Unique characteristics of services
- Services are intangible
- cannot be seen
- no physical flow
- difficult to evaluate
- more risky for the customer
- Services are inseparable
- simultaneous production and consumption
- providers skills and training are the product
- location and physical evidence become more
important
5- customer involvement
- customer is a co-producer
- degree of involvement varies
- impacts on degree of customisation
- variable
- people are an integral part of the product
- human element leads to variations in service
quality - delivered in real time remixed to suit needs
of customer
6Service characteristics cont.
- perishable
- cannot be stored or inventoried
- short life span
- may create fluctuations in demand
- What are the implications for channel management?
7Managing intangibility
- reduce risk for customer
- make the product more tangible
- How??
- physical evidence
- uniforms, atmosphere, décor
- association with image or object
- branding symbols, logo
8Managing inseparability
- physical environment is important
- signs, décor, atmosphere
- contact people - service encounters
- scripts, roles
- appearances and attitudes
- may need to locate near the customer
- may need to use service intermediaries
- functions performed
- refer to table 11.1, study guide p. 11.5
9Managing customer involvement
- To what extent do customers want to be involved ?
- Can we facilitate involvement?
- To what extent can the service be customised ?
- May need to manage other customers in the service
environment
10Managing variability
- Standardise service quality
- How??
- Selection
- Training scripts and roles
- Support
- Reward
- Standardise service delivery
- industrialise - replace people with machines
- Franchising standard operating procedures
11Managing perishability
- need to manage supply and demand
- How???
- Stimulate off-peak
- price discounts
- Promotions
- Manage peak
- Self-service
- Part-time staff
- Reservations and queuing
12Role of service intermediaries in service delivery
- Refer to reading 11.1
- Matching buyers and sellers
- negotiating prices and terms
- facilitating communication between the service
provider and the customer - providing information
- offerings, prices, expectations
13Strategies for effective delivery through service
intermediaries
- Control strategies
- Empowerment strategies
- Partnership strategies
14Control strategies
- set standards for performance
- Sales, service
- measure performance
- reward on the basis of performance
15Empowerment strategies
- allow greater flexibility and autonomy
- Help the intermediary to develop
customer-oriented service processes and standards - provide needed support systems
- Develop (train) intermediaries to deliver service
quality - change to a cooperative management structure
16Partnering strategies
- capitalise on the skills and strengths of both
parties - relationship marketing
- goal alignment
- consultation and cooperation
17Channels for international marketing
- Complex channel environment
- cultural, legal, political, technological,
demographic, competitive, economic, etc. - lack of necessary infrastructure
- may need to adapt product, promotion etc
- Channel member availability
- may be locked up
- may be able to piggyback
18Economic environment
- Level of economic development
- Income per capita
- Distribution of income
- Exchange rates
- Currency values
- Economic cycles
19Competitive environment
- Aggressive global competitors
- Not protected by ACCC
- Different types of competitors than those faced
in the domestic market - WWW
- Not a fair playing field
- Bribes etc.
20Socio-cultural environment
- Different cultures
- High v low context
- Different ways of doing business
- Relationships v transactions
- Different buying processes
- Roles, sources of information
- Processes and habits
- Different needs and wants
- Different products
- Attitudes to service
21Technological environment
- EDI
- WWW
- telecommunications
- Levels of technological advancement differ across
international markets
22Legal/political environment
- Different legal systems
- Degree of regulation
- Degree of government intervention
- Political stability
- Need to obtain legal advice
- Austrade etc. can assist
23Modes of entry
- Indirect exporting
- casual exporting
- trading companies
- export management company
- cooperative or piggybacking
- Direct exporting
- in-house
- foreign distributors or agents
24- Joint venture
- local partner, licensing, franchising, OEM
- Direct foreign ownership
- set up manufacturing in local country
25Motivating international channel members
- Find out channel members needs and problems
- Different because of environmental factors
- More difficult to gather feedback and information
26- Supporting channel members
- Time
- Cost
- Tailor to different needs
- Communication is very important
27- Leading foreign marketing channels
- Complexity due to differences
- Based on customs and traditions
28Summary
- Channels for services
- four special characteristics of services
- implications for channel management
- role of service intermediaries
- managing service intermediaries
- Channels for international marketing
- Marketing channel environment
- Designing international channels
- modes of entry into foreign markets
- Motivating international channel members
29Exam Preparation
- 2 hours
- worth 40 overall mark
- 12 short answers
- 1/2 - 2/3 page
- one reading will be examined
- all modules are examinable
- based on review questions provided at the end of
each module
30- for each question
- define
- is there a key term that needs defining?
- identify - is there a list of factors?
- explain or discuss
- demonstrate your knowledge of the underlying
theory - discuss implications for channel management
- apply
- give examples where requested and if possible
31- revise examples
- manage your time
- use perusal time wisely - brain dump on the blue
examination paper - 10 minutes per question
- spend 1 minute planning (content, layout)
- answer the easy questions first, but keep
questions in order in the book - write something logical on each question
- start each question on new page
32- use a black pen
- consider writing on every other line
- Dont leave your revision to the last minute
- deep and shallow learning
- final tip - study hard and pray
- Good Luck!