1. Web, Nonstore-Based, and Other Forms of Nontraditional Retailing
Chapter 6
Web, Nonstore-Based, and Other Forms of Nontraditional Retailing
RETAIL
MANAGEMENT:
A STRATEGIC
APPROACH,
10th Edition
BERMAN EVANS

2. Chapter Objectives
To contrast single-channel and multi-channel retailing
To look at the characteristics of the three major retail institutions involved with nonstore-based strategy mixes: direct marketing, direct selling, and vending machines – with an emphasis on direct marketing

3. Chapter Objectives (cont.)
To explore the emergence of electronic retailing through the World Wide Web
To discuss two other nontraditional forms of retailing: video kiosks and airport retailing

4. Figure 6-1a: Approaches to Retailing Channels

5. Figure 6-1b: Approaches to Retailing Channels

6. Direct Marketing France Italy
Customer is first exposed to a good or service through a nonpersonal medium and then orders by mail, phone, fax, or computer (Direct mail, Tv, radio, Magazine, News paper)
Annual U.S. sales exceed $300 billion
Other leading countries include
Japan
Germany
Great Britain
France
Italy

7. Characteristics of Direct Marketing Customers
Married
Upper middle class
35-50 years old
Desire convenience, unique items, good prices gifts ,food, books,

8. Strategic Business Advantages of Direct Marketing
Reduced costs
Lower prices
Large geographic coverage
Convenient to customers
Ability to eliminate sales tax for some

9. Strategic Business Limitations of Direct Marketing
Products cannot be examined prior to purchase
Costs may be underestimated
Response rates to catalogs under 10%
Long lead time required
Industry reputation sometimes negative

10. Data-Base Retailing: Key to Success Direct marketing
Collection, storage, and usage of relevant customer information
name
address
background
shopping interests
purchase behavior

11. Emerging Trends
Evolving activities (Technology ,using Multi channel retailing, Data base focusing )
Changing customer lifestyles (worker women no time)
Increasing competition ( Decreasing costs)
Increasing usage of dual distribution channels
Changing media roles, technological advances, and global penetration (Catalogues & TV)

12. Figure 6-4: Executing a Direct Marketing Strategy

13. Figure 6-4: Executing a Direct Marketing Strategy
Business definition : Pure direct marketing or in multi-channel retailing, General products or specific products
Generating customers:
1. buying a list name of customers , download this list, send out a blind mail for all .
2. Advertise in magazine, news paper ask to order through ,phone or fax
3. Contact consumers who have bought from the firm
Media Selection ( Catalogue ,direct mail, magazine ,news paper)
Presenting Massage: ( Includes reason of buying, data of goods & services, price, address, phone number)
Customer contact: regular, nonregular or new
Customers response: ( Mail, Phone ,and fax), request more information ask for catalogue, ignore massage 2 to 3% who buy by this way
Order fulfillment

14. Outcome Measures Overall Response Rate Average Purchase Amount
Sales Volume by Product Category
Value of List Brokers

15. Direct Selling & Vending Machine
Direct Selling: Includes both personal contact with consumers in their homes and offices, and phone solicitations initiated by retailers.
Vending machine : Is a cash or a card retailing format that dispense goods and services

16. World Wide Web (WWW) Electronic Retailing
Is one way to access information on the internet
The Role of the Web
Project a retail presence
Enhance image
Generate sales
Reach geographically-dispersed customers
Provide information to customers
Promote new products
Demonstrate new product benefits

17. The Role of the Web (cont.)
Provide customer service (e.g., )
Be more “personal” with consumers
Conduct a retail business efficiently
Obtain customer feedback
Promote special offers
Describe employment opportunities
Present information to potential investors, franchisees, and the media

18. Figure 6-8: Five Stages of Developing a Retail Web Presence
1. Brochure Web Site: small budget ,few products
2. Commerce Web Site: Full scale selling with customers service
3. Integrated Web Site: with inventory ,accounting system
4. The ‘Webified’ Store: Network system helps in selling nonstore items
5. Site Integrated with Manufacturer Systems: Combine with all information's

19. Web Strengths Using the Web information entertainment
interactive communications
Shopping Online
selection
prices
convenience
fun

20. Reasons NOT to Shop Online
Trust
Fear
Lack of security
Lack of personal communication

21. Recommendations for Web Retailers
Develop or exploit a well-known, trustworthy retailer name
Tailor the product assortment for Web shoppers
Enable the shopper to click as little as possible
Provide a solid search engine
Use customer information

22. Features of Airport Retailing
Large group of prospective shoppers
Captive audience
Strong sales per square foot of retail space
Strong sales of gift and travel items
Longer operating hours
Duty-free shopping possible

23. Figure 6-13: Airport Retailing and Borders