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Distribution/Place in servicesThe strategies involved in making the services available and accessible to the consumer will be based on two major issues:Where should the service be made available choice of location?Who should deliver the service-the choice of channel?Location of service premises-Who are the target customers?What is the degree of interaction required between the provider and customer in the delivery?To what extent convenience of accessibility will affect consumer decision making regarding use of the service?Is the service technology based or people based?How do competitors operate their service?Can new systems or technology be used to improve the existing location decisions?All these questions are linked to the following factors-Nature of ServiceNature of InteractionNature of Customers demandCompetitive PositioningNatural Geographical LocationTechnological AdvancementsDependency on the other serviceInfrastructural FacilitiesTarget Market decisionsLook of Premise-It includesNature of Service OrganizationFuture NeedsAesthetic FactorSocial environment

Service ProviderAgent-Buyer/SellerFRANCHISEECustomerDesigning a distribution system-Customer SegmentationService Characteristics have an influence on Channel DesignIdentifying &Evaluation Major Channel Alternatives- Agent , Broker, Franchising Role of Customer in the Distribution system-Low level Participation-Airline service, entertainment Concert.Medium level Participation- Haircut, Full service restaurants.High level participation-Personal training, Weight loss program me(Customer is Co-producer and contributes to service quality,value and satisfaction)