SPECIALTY CHANNELS BMI – Marketing Mix

FUNCTIONS OF RETAILERS The 5 “RIGHTS” Having the right merchandise, at the right price, at the right time, at the right place, and in the right quantities.

Local Businesses Think of two businesses in Markdale, Flesherton, Dundalk, etc. where you shop List 2 products you can purchase at each business Does each of these stores incorporate the five “rights” of merchandising? Explain.

SPECIALTY CHANNELS VENDING MACHINES Operate unattended Dispense product in exchange for money Operate 24/7 and require only occasional maintenance and refilling Examples…

SPECIALTY CHANNELS…cont. INTERNET A web site used as a “retail outlet” Customers browse a virtual catalogue and add items to their “shopping cart” Items are paid for by credit card, PayPal, Debit card, etc. and are shipped from a warehouse immediately Problems with internet sales???

SPECIALTY CHANNELS…cont. CATALOGUES Used to increase the size of a retailer’s market Can be expensive to prepare, produce, and mail Commonly used by manufacturers, importers, and wholesalers to sell directly to industrial and other customers

SPECIALTY CHANNELS…cont. TELEMARKETING Used to sell products over the phone Often used by charities Often considered annoying by consumers

SPECIALTY CHANNELS…cont. TELEVISION SALES An effective distribution method for products that are new and require some consumer education “Infomercials” demonstrate products and provide ordering information Usually aired during inexpensive time slots