Chapter 6

• To Examine Characteristics of Non-Store Retail Strategy Mixes

• To Explore Emergence of Electronic Retailing

• To Discuss Two Other Nontraditional Forms of Retailing

• Sold Through Nonpersonal Medium• Two Categories

– General– Specialty

• Reduced Costs• Lower Prices• Shopping Convenience• Market Segmentation Easy• Geographic Expansion

• Limited Product Examination• Underestimated Entry Costs• Less Than 10% Purchase• Clutter• Prices and Styles Difficult to Plan• Industry Bad Name

• Mail• TV• Radio• Magazine• Newspaper• Phone Directory• Fax

• Evolving Attitudes and Activities of Direct Marketers

• Changing Consumer Life-Styles• Increased Competition Among Firms• Greater Use of Dual Distribution Channels• Newer Roles for Catalogs and TV• Technological Advances• Mounting Interest in Global Direct Marketing

BusinessDefinition

GeneratingCustomers

MediaSelection

Presentingthe Message

CustomerContact

CustomerResponse

MeasuringResults &

Maintainingthe Data Base

OrderFulfillment

• People Dislike• Customer Privacy• Dual Distribution Requires Consistency• Rising Postal Rates• Legal Environment

• Personal Contact in Homes• Phone Solicitations• Strategy Mix

– Convenient Shopping– Personal Touch

• Working Women• Small Applicant Pool• Low Sales Productivity• High Sales Force Turnover• Above Average Prices• Legal Restrictions

– High Pressure Sales

• Poor Image

• Product Types• Pricing• Most Common Places for

Purchase

• Internet• World Wide Web

• Project a Retail Presence• Generate Sales• Enhance Image• Geographic Diversity• Provide Information• Customer Service• Add Personalization• Cost-efficient• Customer Feedback• Special Offers• Job Opportunities

• Brand Identity• Convenience• Cross-Merchandising• Culture• Customer Service• Design• Free Shipping• Fashion• Fulfillment• Fun and Entertainment• Information Integration• Personalization• Public Relations/Marketing• One-Click Ordering• Selection

Stage 1:Brochure Web Site

Stage 2:Commerce Web Site

Stage 3:Web Site Integrated w/

Existing Processes

Stage 4:The “Webified” Store

Stage 5:Site Integrated w/

Manufacturer Systems

• Finding Things• Seeing Purchases• Customer Service• Dual Distribution Continuity• Customer Privacy

• Video Kiosks• Airport Retailing

• The Characteristics of:– Direct Marketing– Direct Selling and Vending Machines– Vending Machines

• Electronic Retailing Through the World Wide Web

• Video Kiosks• Airport Retailing

Questions?

Question

s?

Questions?

Questions?