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Please explain what’s in the image

Please explain what’s in 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 what’s in the image, thank you.
HOW SHOULDA 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. Th e 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. Another example is that of a young veterinary doctor who has built her business around house calls to care for sick pets. She has found that customers are glad to pay more money for a service that not only saves them time but is also less stressful for their pets, compared to waiting in a crowded veterinary clinic full of other animals and their worried owners. > In remote areas like Alaska or Canada's Northwest Territory, service providers often fly to visit their customers because the latter find it extremely difficult to travel. Australia is famous for its Royal Flying Doctor Service, in which physicians fl y to make house calls at farms and sheep stations in the outback. > In general, service providers are more likely to visit corporate customers at their premises than individuals in their homes. This reflects the larger volume associated with business-to-business (B2B) transactions. Agrowing service activity involves the rental of both equipment and labor at the customer's site for special occasions or in response to customers who need to expand their capacity during busy periods. Service Insights 5.1 describes the B2B services of Aggreko, an international company that rents generating and cooling equipment around the world.
Transcribed Image Text:HOW SHOULDA 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. Th e 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. Another example is that of a young veterinary doctor who has built her business around house calls to care for sick pets. She has found that customers are glad to pay more money for a service that not only saves them time but is also less stressful for their pets, compared to waiting in a crowded veterinary clinic full of other animals and their worried owners. > In remote areas like Alaska or Canada's Northwest Territory, service providers often fly to visit their customers because the latter find it extremely difficult to travel. Australia is famous for its Royal Flying Doctor Service, in which physicians fl y to make house calls at farms and sheep stations in the outback. > In general, service providers are more likely to visit corporate customers at their premises than individuals in their homes. This reflects the larger volume associated with business-to-business (B2B) transactions. Agrowing service activity involves the rental of both equipment and labor at the customer's site for special occasions or in response to customers who need to expand their capacity during busy periods. Service Insights 5.1 describes the B2B services of Aggreko, an international company that rents generating and cooling equipment around the world.
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