Study Guide 4

Creating a Web SiteThe retailers must

determine who will design the Web site. A good Web-site designer must be strong in both technical and visual design. There are technical issues involved in creating a Web site so that it will operate efficiently. There are also the design issues. The design should reflect the existing business in a positive way. For a Web-only business, the Web-site design should project a positive image for the business.

In-House or Professional Design

Is it feasible to design the Web site in-house? In other words, should the retailer take on the challenge of designing the Web site within the company? Should a professional Web-site designer be hired instead? The retailer should determine if he or she has the technical knowledge necessary to create a functional Web site. Then the retailer should determine if he or she has the design experience necessary to make the site attractive and inviting as well. If the retailer decides to hire a professional Web-site designer, then the retailer must find one who combines technical and creative talents to create an effective Web site.

Web-Site AddressOnce the decision is made

to create a Web site, then the retailer must register to a Web-site address. The Web address should be one that is as similar to the store’s name as possible so customers can find it on the Web. If a professional designer is hired, the designer should register the Web address for the retailer as soon as possible.

Information on the Web SiteSerious consideration

should be given to the type of information that is going to appear on the Web site. An effective Web site will give basic information about the store: The store’s name, address, phone and fax numbers, hours of operation, directions to get to the store, and an e-mail contact address.

Online Catalogs:In addition to basic

information, retailers may want to include an online catalog. A catalog will enable customers to buy from the Web site. If a catalog section is included, then credit card information must also be provided. Customers will need to know what cards the retailer accepts for payment. The retailer may also consider using a preapproved credit

card or payment system such as PayPal.

Other Web-Site Features:Many retailers also

include a “What’s New” or a new products section. Other sections that might appear are an “About Us” section that gives a site map, a brief history of the business, and a section for customer comments. Providing customer comments that endorse the company and its products give new customers confidence about the store and shopping there. It’s also a good idea to include a section for customers to sign up for e-mail notification of new products, sales, or other promotions. This is an easy way to get the business’s name known to customers.

LINKS ONLINE FEATURE. A retailer can also include a “links” section. Links hyperlinks) are onscreen connections to other Web sites you can get to with one click of a mouse button. Those Web-site links can connect to suppliers and other resources that the store’s customers will find helpful and informative. For instance, a retailer who sells fishing equipment in a resort community might include a link to a Web site that provides information about local weather and water conditions.

The Web Site’s ImageWhat image should the Web site project? When considering the

design of a Web site, a retailer with an existing store should have a site that resembles the store and its ambience, or atmosphere. Using the same color scheme and the same style of signage found in the store will give the Web site the store’s image. Doing so will create a unified image between the store and the Web site.

If the e-tailer plans to do business from the Web site only, and not open a store, then the design of the Web site should be approached as if the e-tailer were designing an actual store. In other words, give serious consideration to factors like background colors, illustrations, photographs, and fonts. The look of the Web site should be unified and consistent throughout.

The Online CatalogSelling company products and services from the Web site is a way to increase the business’s customer base and attract new customers. The store’s online catalog should clearly illustrate the products with color photographs and clear descriptions. This is the best place to provide a lot of product information. It is important to remember that Web customers cannot touch, smell, or taste the merchandise. They appreciate online information. Providing as much information as possible will help make up for the lack of touch or

taste. Customers will read as much or as little as they wish. Online catalogs should also be user-friendly and easy for customers to navigate. By providing links to different departments or categories of items, customers can shop as if they were in a physical store. Again, it is important that the online catalog reflect the image of the brick-and-mortar store.

Filling Online OrdersAfter attracting customers to a Web site with its great visual appeal, an e-tailer must decide how online orders will be filled. Someone on the store staff must be assigned to check the Web site at regular and frequent intervals for newly placed orders. Depending on the size of the store and Web site “hits,” or number of customer visits, this could mean daily or even every hour. The merchandise for those orders has to be pulled from stock, packaged, invoiced, and shipped to the customer. This takes employee power. The staff must be available to work without compromising help to the customers in the retail store. Online orders deserve the same customer attention and prompt service as in-store customers.

Shipping Online OrdersOnce a customer order is pulled from stock, the order must be packaged and shipped. When planning the budget for the Web site, an e-tailer must

figure the cost of both packaging and shipping to be able to charge customers the appropriate fees.

Packaging: is important because it is the first thing the customer sees of a purchase. The packaging should be done carefully and neatly. Packaging is a good way to let customers know they are valued and that the merchandise is valued by the retailer. If the customer’s purchase is fragile, then extra precautions must be taken to ensure the safe arrival of the purchase.

Shipping: methods should be determined from pre-determined options or simply stated in the online catalog. Customer orders should always be shipped promptly. When a shipment goes out, it is a good idea to notify the customer via e-mail. E-tailers need to fill online orders promptly and ship them just as promptly to get repeat business. It is equally important to notify customers of any delays in filling or shipping their order.

Online Customer ServiceWhat types of customer services will the business offer from the Web site? Will the e-tail store offer to gift wrap purchases or offer

express shipments? The e-tailer should post Web-site customer services policies on the Web site.

Maintaining the Web SiteA retailer should pay close attention to the maintenance of the business’s Web site. Retailers want customers to visit their stores often. They also want customers to visit their Web sites often. The smart e-tailer gives the same attention to the appearance of the site as to the appearance of the brick-and-mortar store. If customers see the same, unchanging Web site week after week, they may be disinterested in revisiting the site. They will think they have seen it all. New products should be prominently featured, and the Web site should be updated regularly. This will encourage online customers to visit the site more often.

This raises the question of who will maintain the Web site. Is the retailer able to do so? An employee? A professional Web-site designer? The store’s budget should include the cost of Web-site maintenance. If a professional Web-site designer provides maintenance, then that fee is figured into the store’s budget as well. If an employee provides the Web-site maintenance, then that employee’s hourly wages are also part of the Web-site budget. This way, the e-tailer can maintain an accurate

accounting of the cost of the Web site.

Whether a retailer decides to sell products or services from a Web site, the retailer’s Web site should enhance the image of the existing store and its products and services.

Online MallsOnline malls consist of a

group of similar e-tailers that form one large Web site. Each Web-site owner pays a fee, based on individual sales, to the online-mall operator. Online malls allow ease of shopping for customers. They provide access to a variety of products without having to go to numerous individual Web sites. For instance, Tias is an online antiques mall. Tisas brings together the products of hundreds of antiques dealers nationwide. If you are interested in antique radios, you would go to that section of the Tias Web site and view all the antique radios available, regardless of the dealer to which they belong. As you view the radios that interest you, you can link to the particular dealer’s Web site to make your purchase. The benefit to the customer is ease of shopping by viewing many choices at one time. The individual antique dealer benefits from greater exposure to more customers.

E-Tail’s Future

With the tremendous growth of e-commerce and e-tailing is just a few years, consumers can expect to see more innovations in shopping and alternative ways of retailing in the 21st century.

NON-STORE RETAILING

What is Non-Store Retailing

We have examined e-tailing, and we know that is one type of non-store retailing. There are other types of retailing that do not operate out of a traditional store building. Non-store retailing is any form of retailing that takes place in areas other than fixed-location stores. Different forms of non-store retailing have advantages and disadvantages. Some types of non-store retailing include:

In-home sales Vending Machines Catalogs Internet Sales

The U.S. Census Bureau groups these retailers into eight categories.

Direct SellingDirect selling is a

method of retailing in which a company representative or sales person comes to your home to sell the company’s products or services. Direct-sales retailers go to the customer. In-home, party-plan

retailers are also included in this type of retailing. Successful in-home sales companies sell products and services that range from home repairs to cosmetics. Such companies include Avon and Mary Kay.

Route Selling:Route selling is a form

of direct selling. A sales associate of a company calls on customers to present and sell the company’s products. The sales associate is assigned a regular route and a schedule of times to call on customers. The customer views the products, make selections, and pays for the products. The route salesperson usually has the company’s products available for immediate delivery. The company may provide a printed catalog or online ordering options.

Schwan’s is a company that uses route selling as a channel for selling its products. Schwan’s sells ice cream and other frozen food products. Schwan’s provides a color catalog of all its products to facilitate ordering. A Schwan’s customer can order directly from the sales associate at an agreed upon time. This is a convenient way to buy frozen foods—the food is delivered to your door when you want them. There are many other companies that offer route sales. Route selling is convenient because the shopping comes to you. On

the other hand, you have to be home to receive the products.

Consultant SellingAnother type of direct

selling is consultant selling, which involves a specially trained consultant. The consultant brings sample products to the customer’s home. The consultant discusses and advises the customer. Interior decorators often make consultant calls on customers. Consultant calls allow customers to view sample products in the environment in which they will be used. Consultant sellers may sell products like drapes, floor coverings, and upholstery.

HOME-PARTY SELLINGHome-party selling

happens when a customer invites friends for a party to view products for sale. A sales associate, as a direct seller of the participating company, is present to talk about the company’s products, demonstrate them, and take order from guests. The host is usually rewarded for sponsoring the party by receiving company products as a gift or products at reduced prices. Sometimes the host is allowed to purchase specially produced merchandise available only to party hosts. This merchandise is available as an incentive for people to host more parties. Tupperware is one well-known example of a company that employees home-party selling.

Vending-Machine SellingYou probably know what

vending machines are. To use a vending machine, insert coins or bills into the machine, press a button, and receive the item from inside the machine. Vending machines allow retailer to do business without a sales associate. Vending machines can be located in businesses owned by other people besides the vending machine owner.

Vending machines sell a wide variety of products from sodas and snacks to newspapers and laundry detergent. Vending machines are convenient and easy to use. Disadvantages of vending machines include breakdowns or running out of products. In either of these cases, the vending machine is out of business until a service representative repairs or refills it.

Catalog SellingA catalog retailer sells

merchandise through printed or electronic catalogs. This category includes retailers who use a combination of Internet and mail-order sales. Horchow publishes beautiful color catalogs and mails them to customers’ homes. Horchow customers can also visit Horchow.com to view a wide selection or products online. Horchow has no traditional fixed-location store. They sell only form their printed or electronic catalogs.

You can purchase almost anything you want or need from catalogs. Catalogs are convenient and easy to use. You can catalog shop anytime of the day or night, regardless of weather conditions. Many catalog retailers provide free shipping for returns. There is even a Web site for catalogs that lists a huge variety of printed catalogs that customers can request.

Direct-Mail SellingDirect mail is mail that

is delivered to your home. Direct mall is used to sell many different types of merchandise. Direct mail can consist of coupons, flyers describing merchandise or services, letters, or newspaper materials.

Telephone SellingTelephone selling is a

method of retailing in which a company rep telephones your home and makes a sales presentation for a product or service. Telephone sales are used for many types of products and services. You can hire someone to sweep your home’s chimney, buy life insurance or a trip just by answering your phone. However, many people find telephone sales by telemarketers annoying and poorly timed, as well as time-consuming. In 2003, a law was enacted forbidding telemarketers from calling anyone listed on a “no call” list.

Infomercial SellingAn infomercial is a long

TV commercial advertising merchandise that can be bought my mail order, telephone, online, or even in a store. The sponsoring company purchases time from a television station. The ads usually run late at night when rates are lowest. Infomercials can last from 15 minutes to an hour. The infomercial provides product information and product demonstrations. Infomercials might also feature a celebrity spokesperson. Customers must wait for delivery of their purchases and pay shipping charges.

TV Shopping ChannelsThere are several

television shopping channels, such as QVC and HSN. They offer a variety of merchandise. TV shopping channels feature hosts who describe the merchandise shown on the television screen. Items are shown for a pre-determined amount of time. Customers are invited to phone their orders in and pay with credit cards. Purchases are delivered directly to the customer’s home. Most television shopping channels operate 24 hours a day.

Street VendorsStreet vendors make their

products available from sidewalk locations that might vary from day to day. Street

vendors usually sell items for cash that are small and easily portable. Items such as watches, T-shirts, and snack foods are sold by street vendors. These vendors generally do not accept returns and offer no customer services.

Electronic AuctionsElectronic auctions

provide sites for customer-to-customer or business-to-customer sales. Electronic auctions use the Internet and sell either new or used products. EBay is well-known example and is one of the many non-store retailers doing business.