3-1 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Multichannel Retailing CHAPTER 03

3-2 Marketing Channels Store Catalog Internet

3-3 The Multichannel Retailer (omniretailer) A retailer that sells merchandise or service through more than one channel. By using a combination of channels, retailers can exploit the unique benefits provided by each channel. Digital Vision / Getty Images Steve Cole/Getty Images The McGraw-Hill Companies, Inc./Andrew Resek, photographer Retailer

3-4 Why are Retailers Using Multiple Channels to Interact with Customers? Customer wants to interact in different ways Each channel offers a unique set of benefits for Customers

3-5 Why are Retailers Using Multiple Channels to Interact with Customers? customer Consumers buy what they want, When they want, Wherever they want storekioskcatalogCall center Web/ mobile

3-6 Benefits Provided by Different Channels

3-7 Browsing Touching and feeling Personal service Cash and credit payment Entertainment and social interaction Immediate gratification Risk Reduction Unique Benefits Provided by Store Channel Royalty-Free/CORBIS (c) Brand X Pictures/PunchStock

3-8 Benefits Provided by Catalog Channel Convenience Information Safety Hoby Finn/Getty Images

3-9 What’s the Big Deal About Shopping on the Internet? $2.5 Trillion US Retail Sales $200 Billion Catalog and Direct Sales $ 4 Billion TV Home Shopping $ 100 to 150 Billion Internet Retail Sales Just a drop in the bucket, but growing fast!

3-10 Internet Channel Broader Selection More and Better Information to Evaluate Merchandise – Drill Down as Much as You Want – Full motion Video

3-11 Internet Channel Personalization – Information is tailored to Individual consumers to help them make quicker and better purchase decisions – Customized Information -- Side By Side Comparisons, Full Motion Video – Try It On Virtually Information for Solving Problems, Not Just Merchandise Characteristics – Virtual Communities

3-12 Benefits of Multichannel RetailingMultichannel Retailing Traditional store-based and catalog retailers are placing more emphasis on their electronic channels and evolving into multichannel retailers.catalog retailers – E-channel gives a way to overcome limitations of existing format E-channel – With electronic channel, retailers can reach out to new markets – Builds share of wallet – E-channel enables retailers to give insights into customers’ shopping behaviors

3-13 Benefits of Multichannel Retailing

3-14 Benefits of Multichannel Retailing Gaining Insights into Consumer Shopping Behavior Expanding Market Presence Building a Strategic Advantage

3-15 Integrated Shopping Experience – Communicate with customers anytime, anywhere through multiple channels – Website, Store, Kiosks, Handheld Devices – Integrating legacy systems for seamless customer interface Challenges of Effective Multichannel Retailing

3-16 Challenges of Effective Multichannel Retailing