Scribd
Upload
70 views

Multichannel Retailing: Retail Management: A Strategic Approach, Retail Management

This chapter discusses multichannel retailing and the benefits of using multiple retail channels. The major retail channels are stores, catalogs, and the internet. Retailers are moving towards an integrated multichannel approach to provide customers with a seamless shopping experience across all channels. Some key challenges of multichannel retailing include organizing operations, maintaining a consistent brand image and pricing across channels, and reducing channel migration where customers use one channel to research products but purchase from a competitor on another channel. The future of multichannel retailing will focus on supporting new technologies like mobile commerce and providing a fully integrated shopping experience for customers.

Uploaded by

belsgroup
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
70 views

Multichannel Retailing: Retail Management: A Strategic Approach, Retail Management

This chapter discusses multichannel retailing and the benefits of using multiple retail channels. The major retail channels are stores, catalogs, and the internet. Retailers are moving towards an integrated multichannel approach to provide customers with a seamless shopping experience across all channels. Some key challenges of multichannel retailing include organizing operations, maintaining a consistent brand image and pricing across channels, and reducing channel migration where customers use one channel to research products but purchase from a competitor on another channel. The future of multichannel retailing will focus on supporting new technologies like mobile commerce and providing a fully integrated shopping experience for customers.

Uploaded by

belsgroup
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 23

Chapter 3

Multichannel Retailing

RETAIL
RETAIL
MANAGEMENT:
MANAGEMENT
A STRATEGIC
8th Edition
APPROACH,
9th Edition
Levy and Weitz
BERMAN EVANS TEMPLATE

Chapter Objectives
To understand the unique customer
benefits offered by the 3 major retail
channels: stores, catalogs and the
internet.
Explain why retailers move towards
using all three channels to interact with
customers.

3-2

Chapter Objectives_2
Describe what are the key benefits and
challenges in providing multichannel
offerings.
Understand how might technology affect
the future multichannel shopping
experience.

3-3

RETAIL CHANNELS
A retail channel is the way retailer sells and
delivers merchandise and services to its
customers.
The most common channels used by
retailers is a store.

3-4

Internet Channel
Internet retailing also called online
retailing, electronic retailing and e-tailing, is
a retail channel in which the offering of
products and services for sale is
communicated to customers over the Internet.

3-5

Catalog Channel
The catalog channel is a nonstore retail
channel in which the retail offering is
communicated to customers through a
catalog mailed to customers.
The merchandise categories with the
greatest catalog sales are drugs and beauty
aids, computers and software, clothing and
accessories, furniture and housewares and
books and music and magazines.
3-6

Catalog Channel
The use of catalogs is coming under attack
from consumer groups that believe that
catalogs are unnecessary waste of natural
resources.
Further, catalogs share of sales is declining
relative to the Internet.

3-7

Direct Selling
Direct selling is a retail channel in which
salespeople interact with customers face-toface in a convenient location, either at the
customers home or at work.
Direct salespeople demonstrate
merchandise benefits and/or explain a
service; take an order; and deliver the
merchandise.
3-8

Direct Selling
Almost all the 14 million salespeople who
work in direct sales are independent agents.
They are not employed by the direct sales
firm but rather act as independent
distributors, buying merchandise from the
firms and then reselling it to consumers.

3-9

Direct Selling
In most cases, direct salespeople may sell
their merchandise to anyone, but some
companies, such as Avon, assign territories
to salespeople who regularly contact
households in their territory.

3-10

Two Special Types of


Direct Selling
Party plan system salespeople
encourage customers to act as hosts and
invite friends or coworkers to a party. The
host or hostess receives a gift or
commission for arranging the party. The
merchandise is demonstrated and
attendees place orders

3-11

Two Special Types of


Direct Selling
Multilevel system independent
businesspeople serve as master
distributors, recruiting other people to
become distributors in their network. The
master distributors either buy merchandise
from the firm and resell it to their distributors
or receive a commission on all merchandise
purchased by distributors in their network.
3-12

Television Home Shopping


Television home shopping is a retail
channel in which customers watch a
television program that demonstrates
merchandise and then place orders for that
merchandise, usually by telephone, via the
Internet or via the TV remote.

3-13

Three Forms of
Television Home Shopping
Infomercials are programs typically 30 to 60
minutes long, that mix entertainment with product
demonstrations and then solicit orders placed by
telephone.
Direct-response advertising consists of one to
two minute advertisements on television and
radio that describe products and provide an
opportunity for consumers to order them.
Cable channels dedicated to television shopping
3-14

Automated Retailing
Automated retailing is a retail channel in
which a merchandise or services are stored in a
machine and dispensed to customers when
they deposit cash or use credit card.
Automated retailing isnt just for soda and
candy bars anymore. For example, ZoomShops
offer iPods, Sony products, Proactive acne
products, Rosetta Stone language learning
software, etc.
3-15

BENEFITS OFFERED BY THE


RETAIL CHANNELS
Store Channel
touching and feeling products
personal service
risk reduction
immediate gratification
entertainment and social experience
browsing
cash payment
3-16

BENEFITS OFFERED BY THE


RETAIL CHANNELS
Catalog Channel
safety
convenience

Internet Channel
broader and deep assortment
more timely information for evaluating
merchandise
personalization
perceived risks in electronic shopping
3-17

BENEFITS OF
MULTICHANNEL RETAILING
Overcoming the Limitations of an
Existing Format
increased assortments
low cost, consistent execution
current information

3-18

BENEFITS OF
MULTICHANNEL RETAILING
Increasing Customer Satisfaction and
Loyalty
Gaining Insights into Consumer
Shopping Behavior
Expanding Market Presence
Building a Strategic Advantage

3-19

OTHER MULTICHANNEL
RETAILING ISSUES
Which Channel Has the Lowest
Costs?
Will Manufacturers Bypass
Retailers and Sell Directly to
Consumers? (disintermediation)
3-20

CHALLENGES OF EFFECTIVE
MULTICHANNEL RETAILING
Providing and Integrated Shopping
Experience
Supporting M-Commerce the purchase of
products and service through mobile devices.

3-21

CHALLENGES OF EFFECTIVE
MULTICHANNEL RETAILING
Organizing for Multichannel Retailing
centralized customer database
brand image
merchandise assortment
pricing
reduction of channel migration
consumers collecting info about products on
their channels and then buying the product
from a competitor.
3-22

End of Chapter 3
Thank you for listening

You might also like