Channels of Distribution (Placing decisions):

Traditionally services have been distributed directly from the producer/creator to the consumer. There have been no intermediaries because the services cannot be separated from the sellers (services are created and marketed simultaneously). Public utilities, medical care, repair service, etc. can be given as examples of direct distribution from the producer to the consumer. The sellers personalise their services and receive feedback from their customers.

Sometimes one intermediary agent may be used, e.g. in marketing of securities, travel arrangements, entertainment, or house rentals. Dealers may be trained in the production of a service, then franchised to sell it.

The main issue in distribution, however, is the transfer of permanent ownership (or title) from the seller to the buyer or consumer/user. This is usually done at the time when the seller (e.g. a doctor) is providing the service.

In recent years some firms have made efforts to overcome the problems of distribution in the following ways:-

Banks have introduced tellers' windows which are accessible to their customers. They have set up additional 24-hour service mechanical banking facility (i.e. using bank cards). Some banks ask employers to deposit employees' pay cheques directly into their bank accounts; here the employers operate as service intermediary agents for the banks.

A service marketer can broaden his distribution, but there is limitation. Some service industries such as rental stores can have rental problems while accountants do not have the same problems.