Kulachatr Chatrakul Na Ayudhaya 1 Chapter XII Retailing Business in the modern wold (Digital Economy) By Aj-Kulachatr Chatrakul Na Ayudhaya Marketing Department Business Administration Faculty Payap University Chiang-Mai Thailand

Kulachatr Chatrakul Na Ayudhaya 2 Chapter XII Retailing in Digital economy What happens in the world? “Network revolution and Internet Change the rule of retail.” 1. High creation in retail 2.High competition in retail 3.Differentiation leadership 4.Automatically, Digital, Information Tech., Telecommunication

Kulachatr Chatrakul Na Ayudhaya 3 Chapter XII Retailing in Digital economy Types of Retailing Business now Stored - Based Retailing Non-Stored Retailing Modern World

Kulachatr Chatrakul Na Ayudhaya 4 Chapter XII Retailing in Digital economy Types of Retailing Business : Store-Based Stored - Based Retailing The most basic characteristic of a retailing. There is building material and hardware that located on the potential site via people to buy the product in store. So they are often called Brick and brick or brick and mortar. - Grocery store - Mini- mart -Category Killer -specialty store - Convenience store - G-Store - Department store - Hyper-mart - Discount store - Shopping Mall

Kulachatr Chatrakul Na Ayudhaya 5 Chapter XII Retailing in Digital economy Types of Retailing Business : Non-store Non-store Retailing Is a form of retailing in which sales are made to consumers without using stores. The various types of non-store retailers are defined in term of the medium they use to communicate with their customers. Sometime they are called “Brick and click or Click and mortar” Mobile Retailing Automatic Vending Direct Marketing E-Retailing Online Retailing “E-Commerce”

Kulachatr Chatrakul Na Ayudhaya 6 Chapter XII Retailing in Digital economy Types of Retailing Business : Non-store Catalog / Direct-mail Retailer Direct-selling Retailer TV home shopping Retailer Electronic Retailer Print, mail Mail, Telephone Salespeople, Face-Face Television Telephone, Mail Interactive electronic system

Kulachatr Chatrakul Na Ayudhaya 7 Chapter XII Retailing in Digital economy Non store Retailing : Total Sales

Kulachatr Chatrakul Na Ayudhaya 8 Chapter XII Retailing in Digital economy Non store Retailing : Total Sales

Kulachatr Chatrakul Na Ayudhaya 9 Chapter XII Retailing in Digital economy Non store Retailing : Automatic Vending Cold Drink Machine Hot Drink Machine Snack Machine Automatic Water Machine

Kulachatr Chatrakul Na Ayudhaya 10 Chapter XII Retailing in Digital economy Non store Retailing : Automatic Vending Laundry Machine Servicing the machine Automatic Car- washing Machine & e-Coin payment

Kulachatr Chatrakul Na Ayudhaya 11 Chapter XII Retailing in Digital economy Non store Retailing : Direct Marketing Characteristics: –B to C business that direct to individual person. –suitable for suburb, difficult to purchase thing. –No time to spending shopping. –Consumer need more and more information for decision to buy. –Products could be demonstrated and specialty purpose. –Cheer up and make customer willing to buy.

Kulachatr Chatrakul Na Ayudhaya 12 Chapter XII Retailing in Digital economy Non store Retailing : Direct Marketing Kinds of Direct marketing in retailing : –Catalog Retailing ; Dummy company –Direct Mail Retailing –Telephone Selling –Direct Selling –Internet Use for retailing ; , Chat room, Web-board, Auction online, e-Consignment…etc

Kulachatr Chatrakul Na Ayudhaya 13 Chapter XII Retailing in Digital economy Non store Retailing : e-retailing Means: –e-Business, e-Marketing Electronic Retailing ; e-Retailing Internet Retailing Online-retailing ; –Electronic Commerce ; e-Commerce Web-based communication on internet e-Shopping, e-Payment, Delivery to home service Interactive electronic network by Chat-room or voice Multimedia ; Computer based, Mobile based, TV-based

Kulachatr Chatrakul Na Ayudhaya 14 Chapter XII Retailing in Digital economy Non store Retailing : e-retailing Critical Success factor ;CSF –Consumer behavior –Data Communication Technology –Consumer’s occasion to use a computer –Efficiency of delivery system

Kulachatr Chatrakul Na Ayudhaya 15 Chapter XII Retailing in Digital economy Non store Retailing : e-retailing Critical Success factor ;CSF –Consumer behavior His/her behavior based on Catalog shopping. People who have not enough time to shopping. People who have not enough time for decision making. People who need information before purchasing. People who must compare quality and price of products before willing to buy. Willing to buy by him or herself. People who can’t go out to shopping ; Elder,patient

Kulachatr Chatrakul Na Ayudhaya 16 Chapter XII Retailing in Digital economy Non store Retailing : e-retailing Critical Success factor ;CSF –Data Communication Technology Band width ; Widely Efficiency of hardware ; Computer,Modem,Server Networks ; LAN, Wireless LAN, Internet service provider Line ; Leads-line, Digital network: ISDN, ADSL Quality web-site ; First impression, Clear, Fast, High & benefit content, Good update, Confidential e-Payment ; Convenience, Safe & Clear, Confidential

Kulachatr Chatrakul Na Ayudhaya 17 Chapter XII Retailing in Digital economy Non store Retailing : e-retailing Critical Success factor ;CSF –Consumer’s occasion to use a computer New era Consumer ; Techno-sumer Children and Teens Elder Patients –Efficiency of delivery system Case ; Pizza company, 7-catalog

Kulachatr Chatrakul Na Ayudhaya 18 Chapter XII Retailing in Digital economy Non store Retailing : Shop-online Benefit of shopping online business –Consumer’s High number of alternative Ordering and getting merchandise Safety Providing information to evaluate merchandise Comparison of price competition. –Entrepreneur’s

Kulachatr Chatrakul Na Ayudhaya 19 Chapter XII Retailing in Digital economy Non store Retailing : Shop-online Benefit of shopping online business –Entrepreneur’s Reduce cost of merchandise –Cost of investment in store front ; Land Rent –Cost of management ; HRM, stocking …etc Getting high of customer’s information –Customer’s database management Easy to change merchandise –Daily up to date web-site –Everyday new information

Kulachatr Chatrakul Na Ayudhaya 20 Chapter XII Retailing in Digital economy Non store Retailing : Customer Database Management Competitive advantage in use of internet –getting the high value premium from e-retailing –Automation of customer data capturing name, address, sex, age, education, salary telephone & mobile number, number consumer behavior, –purchasing volume per period of time – ranking of product that customer willing to buy –Data processing to planning the marketing strategy

Kulachatr Chatrakul Na Ayudhaya 21 Chapter XII Retailing in Digital economy Non store Retailing : Customer Database Management Competitive advantage in use of internet –Data processing to planning the marketing strategy Classifying the customer to segment the target group Easy to following the customer Convenience for after sale service Follow up the customer satisfaction FAQ (Frequency of Ask & Question)

Kulachatr Chatrakul Na Ayudhaya 22 Chapter XII Retailing in Digital economy Non store Retailing : Web-site Management;e-commerce Strategy e-commerce strategy ; –SWOT analysis ; Porter’s Industrial analysis –Porter’s 3 generic model of strategy –Efficient consumer response ; ECR e-Shopping mall e-Logistics e-Payment –PR the web-site on normal media

Kulachatr Chatrakul Na Ayudhaya 23 Chapter XII Retailing in Digital economy Non store Retailing : Web-site Management;e-commerce Strategy e-commerce strategy ; Consideration –Up loading web site to the internet network Set up the domain name Selection of Hosting or web server or IP address ISP ; Servicing, speed and cost of management –Maintenance the web-site Updating the merchandise and new information Maintain the customer Follow up the competitors

Kulachatr Chatrakul Na Ayudhaya 24 Chapter XI Information Technology in Retailing Business : Q&A Q& A

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