Hybrid Marketing Channels in Service Sector

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POM - case discussion report
By Nam Phuong

Hybrid marketing channel network is one of the most important and widely used systems among types of VMN (vertical marketing network). Using hybrid marketing channel network, a single firm may set up two or more marketing channels in order to reach multiple marketing segments. The marketing highlight “Hybrid marketing channels in the services sector” on page 384 provide a clearer view about such issue.

Matter-of-factly, firms hardly pursue a single marketing channel. In stead, they set up a hybrid network in which multiple segments and multiple targets are pointed out to approach their potential market

Private trading


Internet trading

Figure A: offering grid (adapted from page 384)

As can be seen from the model about bank’s operation above, there has been changes ranging from high to low in the level of value added and customization in different range of products including superannuation, telephone banking and internet trading. Superannuation is a special kind of services that require a lot of communication and information between bank’s officer and customer while internet trading is different in the sense that it requires little interaction, hence little value is added from the channel.

Another example of successful hybrid marketing channel implementation is JB Were. In the top left cell is the A class service provide by broker individually, offer only to rich customers. In the middle cells came telephone banking, and the bottom right cell is the place for a newly emerged way of transaction-internet banking, where investors can easily seek for consultation from their stockbroker a distance away.

In a changing environment where customer becoming more informed about the product and technology has made an innovation in automatic field, the offering grid model has a tendency of adding more lower right-hand cells, thus starting a new competition among service providers on the...
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