Professional Documents
Culture Documents
Web, Nonstore-
Based, and
Other Forms of
RETAIL
Nontraditional MANAGEMENT:
Retailing A STRATEGIC
APPROACH,
10th Edition
BERMAN EVANS
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
6-2
Chapter Objectives (cont.)
6-3
Figure 6-1a: Approaches to
Retailing Channels
6-4
Figure 6-1b: Approaches to
Retailing Channels
6-5
Direct Marketing
6-6
Characteristics of Direct
Marketing Customers
• Married
• Upper middle class
• 35-50 years old
• Desire convenience,
unique items, good
prices gifts ,food,
books,
6-7
Strategic Business Advantages of
Direct Marketing
Reduced costs
Lower prices
Large geographic coverage
Convenient to customers
Ability to eliminate sales tax for some
6-8
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
6-9
Data-Base Retailing: Key to
Success Direct marketing
Collection, storage, and usage of relevant
customer information
* name
* address
* background
* shopping interests
* purchase behavior
6-10
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)
6-11
Figure 6-4: Executing a Direct
Marketing Strategy
6-12
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 e-mail
,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
6-13
Outcome Measures
6-14
Direct Selling & Vending Machine
6-15
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
6-16
The Role of the Web (cont.)
6-17
Figure 6-8: Five Stages of Developing
a Retail Web Presence
1. Brochure Web Site: small budget ,few products
6-18
Web Strengths
6-19
Reasons NOT to Shop Online
Trust
Fear
Lack of security
Lack of personal communication
6-20
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
6-21
Features of Airport Retailing
6-22
Figure 6-13: Airport Retailing
and Borders
6-23