DELIVERING SERVICE THROUGH INTERMEDIARIES AND

ELECTRONIC CHANNELSTHE

MEGAMINDS

The MegamindsMd. Shafaeth Zaman

Nafiz Imtiaz Noor

Md. Asiful Islam

Md. Ashiqul Islam

Md. Saidur Rahman

Muqtadir Fattah Nayeb

Aniqa Tahsin Anchal

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.

T H E M E G A M I N D S

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

T H E M E G A M I N D S

SERVICE DISTRIBUTION

T H E M E G A M I N D S

1. Direct Delivery

2. Delivery of Service Through Intermediaries

2.1 Franchising2.2 Agent and Brokers2.3 Electronic Channels

1. DIRECT OR COMPANY-OWNED CHANNELS

Apollo Hospital IBM Global Services Jawed Habib

T H E M E G A M I N D S

2. DELIVERY OF SERVICE THROUGH INTERMEDIARIES

2.1 Franchising

2.2 Agent and Brokers

2.3 Electronic Channels

T H E M E G A M I N D S

2.1 FRANCHISING

T H E M E G A M I N D S

airtel KFC Navana Limited

TA B L E 1 4 . 1

BENEFITS AND CHALLENGES FORFRANCHISERS OF SERVICE

Benefits:• Leveraged business format for greater expansion and

revenues• Consistency in outlets• Knowledge of local markets• Shared financial risk and more working capital

Challenges:• Difficulty in maintaining and motivating franchisees• Highly publicized disputes and conflict• Inconsistent quality• Control of customer relationship by intermediary

T H E M E G A M I N D S

T A B L E 1 4 . 1 ( C O N T I N U E D )

BENEFITS AND CHALLENGES FORFRANCHISEES OF SERVICE

Benefits:• An established business format• National or regional brand marketing• Minimized risk of starting a business

Challenges:• Encroachment• Disappointing profits and revenues• Lack of perceived control over

operations• High fees

T H E M E G A M I N D S

AGENTS AND BROKERS

T H E M E G A M I N D S

AVIVA Life Insurance American Express Oppenheimer Funds

T A B L E 1 4 . 2

B E N E F I T S A N D C H A L L E N G E S I N D I S T R I B U T I N G S E R V I C E S T H R O U G H A G E N T S A N D B R O K E R S

Benefits:• Reduced selling and distribution costs• Intermediary’s possession of special

skills and knowledge• Wide representation• Knowledge of local markets• Customer choice

Challenges:• Loss of control over pricing• Representation of multiple service principals

T H E M E G A M I N D S

ELECTRONIC CHANNELS

T H E M E G A M I N D S

Mobile Banking Sesame Street akhoni.com

T A B L E 1 4 . 3

B E N E F I T S A N D C H A L L E N G E S I N E L E C T R O N I C D I S T R I B U T I O N O F S E R V I C E S

Consistent delivery for standardized servicesLow costCustomer convenienceWide distributionCustomer choice and ability to customizeQuick customer feedback

Price competitionInability to customize with highly standardized servicesLack of consistency due to customer involvementChanges in consumer behaviorSecurity concernsCompetition from widening geographies

T H E M E G A M I N D S

Challenges:Benefits:

COMMON ISSUES INVOLVING INTERMEDIARIES

T H E M E G A M I N D S

Channel ambiguityTension between empowerment and control

Difficulty controlling quality and consistency across outlets

Conflict over objectives and performance

STRATEGIES FOR EFFECTIVE SERVICE DELIVERY THROUGH INTERMEDIARIES

• Empowerment Strategies• Control Strategies• Partnering Strategies

T H E M E G A M I N D S

• Help the intermediary develop customer-oriented service processes• Provide needed

support systems• Develop

intermediaries to deliver service quality• Change to a

cooperative management structure

STRATEGIES FOR EFFECTIVE SERVICE DELIVERY THROUGH INTERMEDIARIES

• Empowerment Strategies• Control Strategies• Partnering Strategies

T H E M E G A M I N D S

• Measurement• Review

STRATEGIES FOR EFFECTIVE SERVICE DELIVERY THROUGH INTERMEDIARIES

• Empowerment Strategies• Control Strategies• Partnering Strategies

T H E M E G A M I N D S

• Alignment of goals• Consultation and

cooperation

???

THE END

THANK YOU!