Distribution and Place Flashcards
What is Information/ Promotion Flow?
- Distribution of information and promotional material to the customer
- Goal is to attract customers
What is Negotiation Flow?
- Reaching an agreement on service features, configurations terms
- Selling the right to use a service
What is Product Flow?
-Physical facilities for the delivery of a service
-Development of a service network
What are the three main ways of Service Distribution?
- Customer goes to the service organization (Gym, sports events, concerts, theme parks)
- Service organization goes to customers (food delivery, tow truck, property maintenance)
-Customer and service organization transact remotely (Online classes, streaming services, medical services)
What are the two types of Locations Considerations when making the facility location decisions?
- Strategic
- Tactical
What are Strategic Location considerations?
- Consistent with marketing strategy and target segments
- Customer needs and expectations, competitive activity, and nature of the service operation
What is the outcome of Strategic Considerations?
A general type and/or list of potential locations
What are Tactical Location Considerations?
- Population size and characteristics
- Pedestrian and vehicular traffic
- Convenience of area for customers
-Competitors
- Type of nearby businesses and stores
- Availability of labor
- Availability of sites, rental, costs, contractual conditions
What is the outcome of Tactical Location Considerations?
Specific location and details
What are Intermediaries?
Intermediaries are entities or individuals that act as middlemen or facilitators in transactions between two parties
What are examples of Intermediaries?
- Travel Agencies
- Online Travel Agencies
- Tour Operators
- Ticketing Platforms
- Sports Agents
- Sports Agencies
What is Disintermediation?
middlemen are bypassed or eliminated from a supply chain, transaction, or distribution channel. (direct interaction between producers or service providers and end consumers)
What are the benefits of Franchising?
- Much easier to expand (reduce risk)
- Elevates and promotes a consistent brand
- Long-term commitments from franchisees (beneficial supplier relationships)
- Easy access to local knowledge
What is Franchising?
Franchising is a business arrangement in which a franchisor grants a franchisee the right to operate their business using the franchisor’s brand, products, and business model. In exchange, the franchisee pays fess or royalties and follows specific guidelines and standards set by the franchisor.
What are the downsides of Franchising?
- Less control
- Strong customer expectation
- Rogue franchisees (don’t go by the terms, standards, or guidelines by the franchisor)
