Offline Retailing and B2C ECommerce

1 / 21
About This Presentation
Title:

Offline Retailing and B2C ECommerce

Description:

Understand the importance of store image to a retail positioning ... scrambled merchandising - strategy of carrying a combination of food and nonfood items ... – PowerPoint PPT presentation

Number of Views:93
Avg rating:3.0/5.0
Slides: 22
Provided by: karen509

less

Transcript and Presenter's Notes

Title: Offline Retailing and B2C ECommerce


1
Chapter 18
  • Offline Retailing and B2C E-Commerce

2
Chapter Objectives_1
  • Define retailing and understand how retailing
    evolves
  • Describe how retailers are classified
  • Understand the importance of store image to a
    retail positioning strategy and explain how a
    retailer can create an image in the marketplace

3
Chapter Objectives_2
  • Describe direct selling and automatic vending,
    two forms of nonstore retailing
  • Describe B2C e-commerce, its benefits,
    limitations, and future promise

4
Retailing
  • Final stop on the distribution path
  • The process by which products are sold to
    consumers for personal use
  • Retailers add value with image, inventory,
    service quality, location, and pricing policies

5
The Wheel of Retailing
  • New types of retailers find it easiest to enter
    the market by offering goods at lower prices than
    competitors after they gain a foothold, they
    gradually trade up, improving facilities and
    increasing the quality and assortment of
    merchandise, and offering special amenities
    upscaling increases costs causing prices to rise
    higher prices open the door for a new entrant
    charging lower prices

6
Retail Life Cycle
  • Retailers are also products because they provide
    benefits and must offer a competitive advantage
    to survive
  • Introduction
  • Growth
  • Maturity
  • Decline

7
Factors Affecting the Future of Retailing
  • Demographics
  • Technology
  • Globalization

8
Major Demographic Factors
  • Convenience for working women
  • Catering to specific age segments
  • Recognizing ethnic diversity

9
Classifying Retailers by What They Sell
  • All retailers are classified by the NAICS codes
  • Some lines still blurred
  • scrambled merchandising - strategy of carrying a
    combination of food and nonfood items

10
Classifying Retailers by Level of Service
  • Self-service retailers
  • Full-service retailers
  • Limited-service retailers

11
Classifying Retailers by Merchandise Selection
  • Merchandise breadth
  • Narrow versus Broad assortments
  • Merchandise depth
  • Shallow versus Deep assortments

12
Store Types
  • Convenience stores
  • Supermarkets
  • Specialty stores
  • Department stores
  • Hypermarket stores
  • Discount stores
  • General merchandise discount stores
  • Off-price retailers
  • Warehouse clubs
  • Factory outlet store

13
Nonstore Retailing
  • Any method a firm uses to complete an exchange
    that does not require a customer visit to a store
  • Direct selling
  • Automatic vending

14
Direct Selling
  • Direct selling occurs when a salesperson presents
    a product to one individual or a small group,
    takes orders, and delivers the merchandise
  • Door-to-Door Sales
  • Parties and Networks
  • party plan systems
  • multilevel pyramid schemes

15
Automatic Vending
  • Appealing for selling convenience goods because
    of small space required, and minimal personnel to
    maintain and operate
  • French fries
  • Software
  • Levis jeans

16
B2C E-Commerce
  • Online exchange between companies and individual
    consumers

17
E-Commerce and the Customer
  • Benefits
  • Shop 24/7
  • Less travel
  • More choices
  • More information
  • Price competition
  • Fast delivery
  • Limitations
  • Lack of security
  • Fraud
  • Cant touch items
  • Hard to distinguish color/ texture online
  • Expensive to return

18
E-Commerce and the Marketer
  • Limitations
  • Lack of security
  • Must maintain site
  • Price competition
  • Conflicts with conventional retailers
  • Legal issues not resolved
  • Benefits
  • The world is your marketplace
  • Decreases costs
  • Very specialized businesses
  • Real-time pricing
  • Tracking of consumer behavior

19
Developing a Store Positioning Strategy
  • Store image
  • Atmospherics

20
Store Design Setting the Stage
  • Store layout and traffic flow
  • Fixture type and merchandise density
  • The sound of music
  • Color and lighting
  • The Actors Store Personnel
  • Pricing policy

21
Building the Theater Store Location
  • Types of Locations
  • Site Selection
  • Location planners evaluate trade area and conduct
    site evaluation
Write a Comment
User Comments (0)