The service providers can use any one of the below-mentioned distribution strategies to offer their services to the customers:
1. Intensive Service Distribution: In this kind of distribution strategy, all the possible channels which are present in a certain area are utilized.
The items which have a wide appeal in almost all the customer groups can be distributed with the help of an intensive distribution strategy.
In order to facilitate the services widely and conveniently to various customer segments that are targeted by the service firm, the maximum number of service outlets can be utilized by a service provider.
Having the maximum number of service outlets, which is possible by a certain service firm can be seen as an intensive network of distribution.
The intensive distribution strategy is mainly implemented by mobile services networks, cyber cafes, and banking services so that the customers available in different locations can be served.
2. Exclusive Service Distribution: In this type of distribution, only a single wholesaler or retailer is used for facilitating the products and services in a certain location.
In this method, a very exclusive and limited network of service outlets is used for distributing the services of the service providers.
This strategy is mainly adopted to maintain the exclusivity in serving the customer segment of a particular brand.
The main focus of the service distributors will be achieving exclusivity in terms of product traits and geographical location.
There can be some kind of loss of market coverage when the exclusive distribution is adopted by the marketer, but most of the time, an image of quality and prestige is carried by them.
Apart from this, the cost incurred in the marketing is controlled in a great deal as there is only a selected number of accounts.
There will be a close association between producers and retailers in exclusive distribution while deciding on the factors related to the prices advertising, sales promotion, and inventory levels.
The products which have higher prices, extensive service requirements, and a limited number of customers in a certain location can be distributed by using exclusive distribution.
This method enables the wholesalers and retailers to recover the cost incurred in the long selling process of each customer and extensive after-sales services.
3. Selective Service Distribution: When the products are distributed with the help of a limited number of channels, it is regarded as selective distribution.
This method is quite helpful in regulating price cutting. The total marketing cost can be reduced by removing additional retailers, and it also facilitates a very strong working relationship with the channel members.
In most cases, the rules and regulations, pricing, advertising, and display policies of the firm are accepted by the selected retailers.
Some kind of training and assistance is also provided to the channel partners by the firm if the services are seen as quite vital and significant.
In selective distribution, a distribution mix of above mentioned two systems are involved so that the services can be provided to the customers.
In some cases, exclusive stores will be selected, while on the other hand, an extensive distribution method is implemented by the service providers.
It means that a selective network can be more useful in the case of high-class fashion jewelers, signature restaurants, and premium fast food centers like Pizza Hut, McDonald’s, Cafe Coffee Day, etc.