Prezentace předmětu:
Marketing of Sevices
Vyučující:
Ing. Michal Stoklasa, Ph.D.
Ing. Martin Klepek, Ph.D.
Název
prezentace
Název projektu
Rozvoj vzdělávání na Slezské univerzitě v Opavě
Registrační číslo projektu
CZ.02.2.69/0.0./0.0/16_015/0002400
Logolink_OP_VVV_hor_barva_cz

 Physical Evidence and Distribution
.
The aim of the lecture is to teach you how to approach physical evidence and distribution in
marketing of services.
Michal Stoklasa
Garant předmětu
Martin Klepek
Přednášející

PHYSICAL EVIDENCE AND DISTRIBUTION
.
Physical evidence
POP materials
Ambient marketing
Distribution
Lecture content

•Services as we know are largely intangible when marketed.
•However customers tend to rely on physical cues to help them evaluate the product before they buy
it.
•Therefore marketers develop what we call physical evidence to replace these physical cues in a
service.
•
•The role of the marketer is to design and implement such tangible evidence. Physical evidence is
the material part of a service.
Physical evidence
4

•The building itself (such as prestigious offices or scenic headquarters). This includes the design
of the building itself, signage around the building, and parking at the building, how the building
is landscaped and the environment that surrounds the building. This is part of what is known as the
servicescape.
•The interior of any service environment is important. This includes the interior design of the
facility, how well it is equipped, internal signage, how well the internal environment is laid out,
and aspects such as temperature and air conditioning. This is also part of the servicescape.
There are many examples of physical evidence
5

•Packaging.
•Internet/web pages.
•Paperwork (such as invoices, tickets and dispatch notes).
•Brochures.
•Furnishings.
•Signage (such as those on aircraft and vehicles).
•Uniforms and employee dress.
•Business cards.
•Mailboxes.
There are many examples of physical evidence
6

•The physical environment is the space by which you are surrounded when you consume the service.
•
•So for a meal this is the restaurant and for a journey it is the aircraft that you travel inside.
•
•The physical environment is made up from its ambient conditions; spatial layout and functionality;
and signs, symbols, and artefacts (Zeithaml, 2000).
•
Physical Environment (Zeithaml, 2000)
7

•„The environment in which the service is assembled and in which the seller and customer interact,
combined with tangible commodities that facilitate performance or communication of the service“
(Booms and Bitner, 1981)
•
•As we can see, american literature uses the name servicescape for what we understand as physical
environment.
Servicescape
8

Source: https://prezi.com/iwwqzab0gwtx/engaging-the-senses-in-the-servicescape/

•Why do we do this? Why are we investing heavily into serviscape?
•
•We want to build positive emotions in our place.
•
•These emotions then transfer to our brand!
•
•Serviscape can build attributes to our services that would be otherwise unachiavable.
Servicescape
9

Source: https://prezi.com/iwwqzab0gwtx/engaging-the-senses-in-the-servicescape/

•Facility exterior:
•Exterior design
•Signage
•Parking
•Landscape
•Surrounding environment
Servicescape
10

•Facility interior:
•Interior design
•Equipment
•Signage
•Layout
•Air quality/temperature
•Sound/music/scent/lightning
Servicescape
11

•We can summ it up into 4 dimensions.
•
1.Ambient conditions.
2.
2.Spatial layout.
3.
3.Signs, symbols and artifacts.
4.
4.Personnel.
Servicescape
12

Source: https://prezi.com/iwwqzab0gwtx/engaging-the-senses-in-the-servicescape/

•Hearing – purchasing behaviour can be influenced by music. E.g. fastfoods use fast modern music,
restaurants rather slower.
•
•Sight – layouts, structured environment, colours, lighting.
•
•Taste – samples of food, free coffee.
•
•Touch – different materials, different surfaces.
•
•Smell – fresh fruits, heavy smells.
Senses in serviscape
13

•The ambience can include e.g. temperature, colour, smell and sound, music and noise. The result of
ambience is a mix of these elements which consciously or subconsciously help us to experience the
service. Ambience can be diverse.
•The ambience of a health spa is relaxing and calm, and the music and smells underpin this
experience. While the ambience of a nightclub could be loud noise and bright lights which enhance
the customer experience, obviously in a different way.
•The marketer needs to match the ambience to the service that is being delivered.
Ambience
14

•The spatial layout and functionality explain how the furniture is set up or machines are layed
out.
•An example could be the spatial layout of your local cinema, or a church or temple that you have
visited and how this affects your experience of the service.
•Functionality is more about how well suited the environment is to actually accomplish your needs.
For example is the seat in the cinema comfortable, or can you reach your life jacket when on an
aircraft?
Spatial Layout
15

•The final piece of the puzzle are corporate image and identity, which are supported by signs,
symbols and artefacts of the business itself.
•
•Examples of this could be the signage in Starbucks which reassures the consumer through branding.
•
•When you visit our university, there are signs which guide you around the premises smoothly, as
well as statues and logos displayed throughout the complex.
Corporate branding (signs, symbols and artefacts)
16

•There are 2 approaches to what merchandising means. The first is supporting products, like
t-shirts, cups etc., that you sell with your main brand.
•
•But we are more interested in the second one, that is on a in-store level, merchandising there
refers to the variety of products available for sale and the display of those products in such a
way that it stimulates interest and entices customers to make a purchase.
•
•For example the Apple Store. But their approach has been copied by many other brands.
Merchandising
17

•POP materials (point of purchase) are helping you to get the attention of your customers.
•
•POS (point of sale) are available where the final sale is happening, where the consumer/shopper is
actually paying for their purchas. It can be a reminder to purchase something.
•
•POP materials nowadays play much greater role as it helps us transmit more information and create
impulse purchases.
POP materials
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•„The process of giving things out to several people, or spreading or supplying something“.
(Cambridge Dictionairy)
•
•„If expected marketing goals are to be achieved, a product must be made accesible to the target
market in an efficient manner. In many markets, the biggest constraint to successful marketing is
distribution.“ (Kotler, 2007)
Definition of distribution
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Source: https://dictionary.cambridge.org/dictionary/english/distribution

•DC (distribution channels) are a chain of intermediaries, each passing the product down the chain
to the next organization, before it finally reaches the consumer or end-user.
•
•Services differ from products in distribution as the most are distributed directly – DIRECT
channel means it is owned by the service company.
•
•But some can use INDIRECT distribution – not owned by the company.
Distribution channels
20

•Distribution channels may not be restricted to physical products alone.
•They may be just as important for moving a service from producer to consumer in certain sectors,
since both direct and indirect channels may be used.
•Hotels, for example, may sell their services (typically rooms) directly or through travel agents,
tour operators, airlines, tourist boards, centralized reservation systems, etc.
•Other functions: collecting information, sales promotion, contacting (potential) customers,
adjusting the supply to customers needs, bargaining, etc.
Distribution of services
21

•Intermediaries are the „man-in-the-middle“, they can function as sort of a „glue“ between our
brand and the final end customer by building the trusting relationship.
•
•The primary types of intermediaries are:
•franchisees,
•agents,
•brokers,
•outsourced subcontractors (helpline in India)
•and electronic channels.
Intermediaries
22

•Franchising is the practice of using another firm's successful business model.
•
•„A continuing relationship in which a franchisor provides a licensed privilege to the franchisee
to do business and offers assistance in organizing, training, merchandising, marketing and managing
in return for a monetary consideration. Franchising is a form of business by which the owner
(franchisor) of a product, service or method obtains distribution through affiliated dealers
(franchisees).“ (Entrepreneur Europe)
Franchising
23

Source: https://www.entrepreneur.com/encyclopedia/franchising

•„An agency broker is a broker that acts as an agent to its clients. When acting as the agent, the
agency broker must look after its clients' best interests, which involves attempting to fill client
orders at the lowest price and in the fastest way possible.“ (Investopedia)
•
•An agent is an intermediary acting on behalf of a service owner (such as a real estate agent) or a
customer and is authorized to make agreements between the owner and the customer.
•A broker is an intermediary who brings buyers and sellers together while assisting in negotiation
(they have the know-how).
Agents and Brokers
24

Source: https://www.investopedia.com/terms/a/agencybroker.asp

•The internet has changed many Things. It can be said that it had transformed the planet, our lives
and subsequently also how services can be delivered to the customer.
•
•Examples of great changes are: movies on demand, interactive news and music, banking and financial
services, multimedia libraries and databases, distance learning, desktop videoconferencing, remote
health services, online games.
Electronic channels
25

•Channel conflict over objectives and performance.
•
•Difficulty controlling quality and consistency across outlets.
•
•Tension between empowerment and control (McDonalds).
•
•Channel ambiguity (who spends money?)
Common intermediary issues
26

•Distribution channels can have a number of levels:
•
•The „zero-level“ channel is the simplest level where a company has direct contact with the
customer, no intermediaries are involved.
•
•The „one-level“ channel has only one intermediary. For small markets, such as our country, it is
convenient to reach the whole market using just one- and zero- level channels.
•
•The „two-level“ channel is used in larger countries. For example a wholesaler is mainly used to
extend distribution to the large number of small, neighborhood retailers.
Channel members
27

•Motivating our employees is hard, now with other employees of other intermediaries it is very
hard.
•
•Motivation by money works the best, e.g. Margins. Other good motivations are training and
education in exotic places.
•
•Conflicts in distribution might occur – who is doing what for how much money. (eshop stealing
customers of dealers)
•
Channel motivation
28

•Cost
•Competition
•Type of product
•Culture
•Customer
•Control
•Capital requirement
•Firm goals
Factors affecting channel choice
29

•There are 3 possible options.
•
•Customers visit service site – like a restaurant.
•
•Service providers go to customers – avon.
•
•Service transaction is conducted remotely  - banking.
Distribution options for serving customers
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Source:https://www.slideshare.net/prithvighag/distribution-in-services

•Place and time are important to decide.
•
•We need to decide, where our service is gonna be available and when.
•
•Location constraints – do I need a special location to be able to provide my service? (airport)
Can I bundle services together? (plyclinic instead of separate doctors)
Place and time
31

•When should my service be available?
•
•In the past it was fixed hours. Now with new technology and new customers its 24/7.
•
•We need to analyse our customers. E.g. Sushi in Karviná – luxury service (experience) for middle
class and upper class – opened from 3PM to 9PM.
Place and time
32

•Can we sell our services internationally?
•
•Yes we can!
•
•However we have to adapt to our customers. In every country, people will demand different
distribution and physical environment.
•
•Fast-food in USA is fast, mainly done from the car, in EU its not as fast, mainly done in a
restaurant, in Turkey its much slower, small-talk with employees is required.
Services internationally?
33

Conclusion
•You have learned about the physical environment and distribution of services.
•We have gone through what physical environment means, nowadays also called the serviscape.
•How various human senses are connected with our servicescape.
•We have examined the distribution of services. Various intermediaries, the role of time and place
in distribution.
•Our lecture concluded with services in international environment.