MKT 723 Chapter Notes - Chapter 14: Financial Risk, Franchising
14 May 2015
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Document Summary
Channels for services are often direct: creator of the service selling directly to and interacting with the customer. Intermediaries perform several important functions for service principals like: coproducing the service. Ex. franchisee"s producing services for parent companies: make services locally available through time and place convenience, provide a retailing function, build trusting relationships between brand and customer. Primary types: franchisees service outlets licensed by a principal to deliver a unique service concept it has created, agents and brokers reps who distribute and sell the services of one or more suppliers, electronic channels. All forms of service provision through tv, telephone, interactive media, and computers. Major benefits of distributing through company-owned channels is that the company: has complete control, maintain consistency, standards established and carried out as planned, company owns customer relationships. Disadvantages: financial risk, lack of expertise in local markets (evident when expanding to other cultures)
