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Please explain each ideas on the image.

Please explain each ideas on the image.

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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NOTE: Please explain each ideas on the image.
HOW SHOULD A SERVICE BE DISTRIBUTED? Here, a key question is: Does the service or the firm's positioning strategy require customers to be in direct physical contact with its personnel, equipment, and facilities? (As we saw in Chapter 1, this is unavoidable for people-processing services but may not be necessary for other categories.) If so, do customers have to visit the facilities of the service organization, or will the service organization send personnel and equipment to customers' own sites? Alternatively, can transactions between provider and customer be completed through the use of either telecommunications or physical channels of distribution? (The three possible options are shown in the first column of Table 5.1.) For each of these three options, should the firm maintain just a single outlet or offer to serve customers through multiple outlets at different locations? Customers Visit the Service Site For services that require customers to visit service sites, firms need to consider key factors such as costs (e.g., rental), customer catchment areas, convenience of service outlet locations for the customer, and operational hours. Elaborate statistical analyses (including retail gravity models) are used to help firms make decisions on where to locate supermarkets or similar large stores relative to the homes and workplaces of future customers. Service Providers Go to Their Customers For some types of services, the service provider visits the customer. When do they do this? Going to the customer's site is unavoidable when the object of the service is some immovable physical item, such as a tree that has to be pruned (Figure 5.3) or a house that requires pest- control treatment. There may be a profi table niche in serving individuals who are willing to pay a premium for the convenience of receiving personal visits or home delivery. Th ink of Domino's Pizza's delivery service or Starbucks's new system of delivery to offi ce buildings. The latter was launched in 2015 in Manhattan and Seattle, with workers in the Empire State Building being the fi rst to enjoy the convenience of having their favorite Espresso Frappuccino Blended Coff ee and other energy boosters delivered directly to their desks.
Transcribed Image Text:HOW SHOULD A SERVICE BE DISTRIBUTED? Here, a key question is: Does the service or the firm's positioning strategy require customers to be in direct physical contact with its personnel, equipment, and facilities? (As we saw in Chapter 1, this is unavoidable for people-processing services but may not be necessary for other categories.) If so, do customers have to visit the facilities of the service organization, or will the service organization send personnel and equipment to customers' own sites? Alternatively, can transactions between provider and customer be completed through the use of either telecommunications or physical channels of distribution? (The three possible options are shown in the first column of Table 5.1.) For each of these three options, should the firm maintain just a single outlet or offer to serve customers through multiple outlets at different locations? Customers Visit the Service Site For services that require customers to visit service sites, firms need to consider key factors such as costs (e.g., rental), customer catchment areas, convenience of service outlet locations for the customer, and operational hours. Elaborate statistical analyses (including retail gravity models) are used to help firms make decisions on where to locate supermarkets or similar large stores relative to the homes and workplaces of future customers. Service Providers Go to Their Customers For some types of services, the service provider visits the customer. When do they do this? Going to the customer's site is unavoidable when the object of the service is some immovable physical item, such as a tree that has to be pruned (Figure 5.3) or a house that requires pest- control treatment. There may be a profi table niche in serving individuals who are willing to pay a premium for the convenience of receiving personal visits or home delivery. Th ink of Domino's Pizza's delivery service or Starbucks's new system of delivery to offi ce buildings. The latter was launched in 2015 in Manhattan and Seattle, with workers in the Empire State Building being the fi rst to enjoy the convenience of having their favorite Espresso Frappuccino Blended Coff ee and other energy boosters delivered directly to their desks.
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