Ch#3 Nonstore Retailing Add Mat

8/10/2019 Ch#3 Nonstore Retailing Add Mat

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Web,

Nonstore-Based, &

Other Forms of NontraditionalRetailing

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Types of Non-store Retailers


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DIRECT MARKETING

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Direct Marketing

Customer is first exposed to a good orservice through a nonpersonal mediumand then orders by mail/email,

phone/SMS/MMS, fax, or computer


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Any medium that c an be used to del iver a communicati on to

a customer can be employed in direct marketing, including: Email Marketing

Online Tool s

Display Ad s are interactiv e ads

Search

Social Medi a Sites

Mobile

Telemarketing

Voicem ail Marketing

Broadcast Faxing

Couponing

Digital Coupons:

Dail y D eal Sites off er

Direct Response TV

Direct Mai l

Direct Response Radio

Insert Medi a

Out-of-Home

Direct Response Mag azines and N ewsp apers

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Direct Marketing Categor ies

GENERAL

offer full lines of

products from clothingto housewares

SPECIALTY

offer narrow product

lines


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Strategic Business Advantagesof Direct Marketing

Reduced costs

Lower prices

Large geograph ic coverage

Convenient to customers

Abil ity to pinpoint customer segments

Abil ity to eliminate sales taxAbil ity to supplement regular business

without additional outlets

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Strategic Business Limitationsof Direct Marketing

Products cannot be examined prior topurchase

Costs may be underestimated

Response rates to catalogs under 10%

Clutter/Crowd exists

Long lead time required

Industry reputation somet imes negative


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Important for DirectResponse Marketing

Right List

Timing

Define campaign

Offer(off , Buy one & get one free) and Call to Action

Give Multiple ways to responds (to increase leads)

Customer Testimonial are powerful

Test/Test/Test Call to Follow-up

Track Result

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Database Retail ing

Collect ion, storage, and usage ofrelevant customer information

* name* address

* background

* shopping interests

* purchase behav ior

Observation of 80-20 rule


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Issues in Catalog Retail ing:

Low Start Up Cost

Evolution of Multi-Channel Offering

Hard to compete with large well established firms

Increasing Mail Costs

Clutter from other Catalogs

General merchandise catalogs l ike JC Penney

Specialty Catalogs like Victoria Secret

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Direct Response Television (DRTV)/TV Retai ling


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Issues in Televis ion HomeShopping

Consumers watch cable stations, infomercials or

direct response ads

Few consumers watch regularly

Most purchases made by small proportion ofviewers

Customers cant examine merchandise

Customers must wait for merchandise to come on Sells predominately jewelry, apparel, cosmetics,

kitchenware, and exercise equipment

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DIRECT SELLING


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Issues in Direct Selling

Completely bypasses retailers and wholesalers

Manufacturers set up their own channels to sell

their products directly to consumers

Party plan system: merchandise is demonstrated ina party atmosphere

Multi-level network: Master dis tributors sell to

distributors who sell merchandise Pyramid schemes: Firm sells to other distributors

and little if any merchandise goes to end users

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Direct Selling & Mary KayAnnual Rev enue $ 2.4 Bi l lion

Sale Consultant: 1.8 million


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Avon Prod ucts, Inc. kno wn si mpl y as Avon i s an American in ternati on al manu facturer and distri bu to r

of beauty, household, and personal care company that sells products through representatives inover 140 countries across the world.

As o f 2012, Avon had annu al sales o f $10.7 bi ll ion wo rldw id e.

It is th e 5th largest beauty company & 2nd largest direct selling enterprise in the world, with 6.4million representatives

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WEB Retailing

Annual Revenue: $ 14 Billion(2012) Est. 1995)Annual Revenue: $ 61 Billion

(2012) Est. 1995

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Five Stages of Developing a Retail Web Presence

1. Brochure Web Site

2. Commerce Web Site

3. Integrated Web Site

4. The Webified Store

5. Site Integrated with

Manufacturer Systems

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www.bikroy.com

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Reasons NOT to Shop Online

Trust Fear Lack of securi ty Lack of personal communicationBangladesh: Access to Net

Payment Sett lement Small Termin al Delivery / Express Mail

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2013


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Google Shopping

http://www.google.com/shopping/Google Shopping, formerly Google Product Search,

Google Products and Froogle, is a internetmarketplace launched by Google Inc.

Its interface provides an HTML form field into which a

user can type product queries to return lists ofvendors selling a particular product, as well as

pricing information.

On May 31, 2012, Google announced that Google

Product Search would become Google Shopping, anentirely monetized service where merchants would

have to pay Google in order for their products to bedisplayed.

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Google Catalogs

http://www.google.com/catalogsGoogle Catalogs is a shopping application , which

was produced by Google in August 2011.

Google Catalog search was first conceptualized inDecember, 2001 as a search function on the web

only. This was a free Google service.

Users were able to flip through pages of catalogs from

a variety of industries, except those that focus onliquor, tobacco, firearms, or similar products

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Next Empire byGoogle

The virtual empire on which thesun never sets

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SMS based Retail ing

Unsolicited SMS

Regulators might enact law to stop /penalizefor unsolicited SMS

Already in our neighboring country, TelecomRegulatory Authority of India (TRAI) enactedsuch law

Same issue is also applicable forTelemarketing

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Vending machineTobacco vending & Regulators

Location: Mumbai

Payments credit and debit cardsas well as cash.The Gitanjali group


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Video Kiosk

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Issues in Vending Machine Retailing

Automatic Merchandising About $25 billion worth of convenience goods are sold to

Americans through 4.7 mill ion vending machines

Sales growth has been declining due to higher prices andhealthier eating habits

New technology may help sales growth

Trend of placing machines in captive consumer locations


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Features of Airport Retailing

Large group of prospective shoppers

Capt ive audience

Strong sales per square foot of retailspace

Strong sales of g ift and t ravel items

Difficu lty in replenishmentLonger operating hours

Duty-free shopping possible

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Airport Retailing in Bangladesh

Hazrat Shahjalal InternationalAirport

(IATA Code : DAC)

Approximately

4 million international &

2 million domestic passengers

pass through the airport annually

Documents

Ch#3 Nonstore Retailing Add Mat