D E L I V E R I N G S E RV I C E T H RO U G H

I NTERMEDIARIES AND
E L E C T RO N I C C H A N N E L S
THE MEGAMINDS
 Md. 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.
THE MEGAMINDS
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

THE MEGAMINDS
 SERVICE DISTRIBUTION
1. Direct Delivery

2. Delivery of Service Through

Intermediaries

2.1 Franchising
2.2 Agent and Brokers
2.3 Electronic Channels

THE MEGAMINDS
1. DIRECT OR COMPANY-OWNED CHANNELS

Apollo Hospital IBM Global Services Jawed Habib

THE MEGAMINDS
2. DELIVERY OF SERVICE THROUGH INTERMEDIARIES

2.1 Franchising

2.2 Agent and Brokers

2.3 Electronic Channels

THE MEGAMINDS
 2.1 F RANCHISING

airtel KFC Navana Limited

THE MEGAMINDS
 TA B L E 1 4 . 1

B ENEFITS AND C HALLENGES FOR

F RANCHISERS OF S ERVICE
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

THE MEGAMINDS
 TABLE 1 4 . 1 ( CONTINUED)

B ENEFITS AND C HALLENGES FOR

F R A N C H I S E E S O F S E RV I C E
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

THE MEGAMINDS
 AGENTS AND B ROKERS

AVIVA Life Insurance American Express Oppenheimer Funds

THE MEGAMINDS
 TABLE 1 4 . 2

B ENEFITS AND C HALLENGES IN D ISTRIBUTING

S E RV I C E S T H RO U G H A G E N T S A N D B RO K E RS

Benefits:
• Reduced selling and distribution costs
• Intermediary’s possession of special
skills and knowledge
• Wide representation Challenges:
• Knowledge of local markets
• Customer choice • Loss of control over pricing
• Representation of multiple service principals

THE MEGAMINDS
 E LECTRONIC C HANNELS

Mobile Banking Sesame Street akhoni.com

THE MEGAMINDS
 TABLE 1 4 . 3

B ENEFITS AND C HALLENGES IN E LECTRONIC

D I S T R I B U T I O N O F S E RV I C E S
Benefits: Challenges:

Consistent delivery for Price competition

standardized services
Low cost
Customer convenience
Wide distribution
Customer choice and ability to
customize
Quick customer feedback
Inability to customize with
highly standardized services
Lack of consistency due to
customer involvement
Changes in consumer behavior
Security concerns
Competition from widening
geographies

THE MEGAMINDS
COMMON ISSUES INVOLVING INTERMEDIARIES

Conflict over objectives Difficulty controlling quality

and performance and consistency across outlets

Tension between Channel ambiguity

empowerment and control

THE MEGAMINDS
 STRATEGIES FOR EFFECTIVE SERVICE DELIVERY
THROUGH INTERMEDIARIES

• Help the intermediary develop

customer-oriented service
processes
• Empowerment Strategies
• Provide needed support systems
• Control Strategies
• Develop intermediaries to deliver
• Partnering Strategies service quality
• Change to a cooperative
management structure

THE MEGAMINDS
 STRATEGIES FOR EFFECTIVE SERVICE DELIVERY
THROUGH INTERMEDIARIES

• Empowerment Strategies
• Measurement
• Control Strategies
• Review
• Partnering Strategies

THE MEGAMINDS
 STRATEGIES FOR EFFECTIVE SERVICE DELIVERY
THROUGH INTERMEDIARIES

• Empowerment Strategies
• Alignment of goals
• Control Strategies
• Consultation and cooperation
• Partnering Strategies

THE MEGAMINDS
THANK YOU!
THE END