Transcript Chapter V Product Management

Chapter XII
Retailing Business
in the modern wold
(Digital Economy)
By
Aj-Kulachatr Chatrakul Na Ayudhaya
Marketing Department
Business Administration Faculty
Payap University Chiang-Mai Thailand
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Chapter XII
Retailing in Digital economy
What happens in the world?
“Network revolution and Internet
Change the rule of retail.”
1.High creation in retail
2.High competition in retail
3.Differentiation leadership
4.Automatically , Digital ,
Information Tech., Telecommunication
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Chapter XII
Retailing in Digital economy
Types of Retailing Business now
Non-Stored Retailing
Stored - Based Retailing
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Modern World
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Chapter XII
Retailing in Digital economy
Types of Retailing Business : Store-Based
The most basic characteristic of a
retailing. There is building material and
hardware that located on the potential
site via people to buy the product in
store. So they are often called Brick and
brick
or
brick and
m o r t a r.
Stored - Based Retailing
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- Grocery store -Minimart -Category Killer
-specialty store Convenience store G-Store
Department store Hyper-mart Discount store Shopping Mall
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Chapter XII
Retailing in Digital economy
Types of Retailing Business : Non-store
Non-store Retailing
Is a form of retailing in which sales are made to consumers
without using stores. The various types of non-store retailers are
defined in term of the medium they use to communicate with their
customers. Sometime they are called “Brick and click or Click and
m
o
r
t
a
r
”
E-Retailing
• Mobile Retailing
• Automatic Vending
Online Retailing
• Direct Marketing
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“E-Commerce”
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Chapter XII
Retailing in Digital economy
Types of Retailing Business : Non-store
Print , mail
Mail , Telephone
Salespeople , Face-Face
Catalog /
Direct-mail
Retailer
Direct-selling
Retailer
Television
Telephone , Mail
TV home
shopping
Retailer
Interactive electronic system
Electronic
Retailer
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Chapter XII
Retailing in Digital economy
Non store Retailing : Total Sales
Sales by Nonstore format-2000 total $262 million
9%
2%
Catalog & Direct mail
9%
Electronic Retailing
Vending Machine
9%
Direct Selling
TV home Shopping
71%
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Chapter XII
Retailing in Digital economy
Non store Retailing : Total Sales
Sales by Nonstore format-2003 Total $444 million
6%
1%
6%
Catalog & Direct mail
Electronic Retailing
55%
Vending Machine
32%
Direct Selling
TV home Shopping
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Chapter XII
Retailing in Digital economy
Non store Retailing : Automatic Vending
Cold Drink
Machine
Hot Drink
Machine
Snack
Machine
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Automatic
Water
Machine
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Chapter XII
Retailing in Digital economy
Non store Retailing : Automatic Vending
Servicing the
machine
Laundry
Machine
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Automatic Carwashing Machine &
e-Coin payment
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Chapter XII
Retailing in Digital economy
Non store Retailing : Direct Marketing
• Characteristics:
–
–
–
–
B to C business that direct to individual person.
suitable for suburb , difficult to purchase thing.
No time to spending shopping.
Consumer need more and more information for
decision to buy.
– Products could be demonstrated and specialty
purpose.
– Cheer up and make customer willing to buy.
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Chapter XII
Retailing in Digital economy
Non store Retailing : Direct Marketing
• Kinds of Direct marketing in retailing :
– Catalog Retailing ; Dummy company
– Direct Mail Retailing
– Telephone Selling
– Direct Selling
– Internet Use for retailing ; e-Mail , Chat room ,
Web-board , Auction online , e-Consignment…etc
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Chapter XII
Retailing in Digital economy
Non store Retailing : e-retailing
• Means:
– e-Business , e-Marketing
• Electronic Retailing ; e-Retailing
• Internet Retailing
• Online-retailing ;
– Electronic Commerce ; e-Commerce
•
•
•
•
Web-based communication on internet
e-Shopping , e-Payment , Delivery to home service
Interactive electronic network by Chat-room or voice
Multimedia ; Computer based , Mobile based , TV-based
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Chapter XII
Retailing in Digital economy
Non store Retailing : e-retailing
• Critical Success factor ;CSF
– Consumer behavior
– Data Communication Technology
– Consumer’s occasion to use a computer
– Efficiency of delivery system
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Chapter XII
Retailing in Digital economy
Non store Retailing : e-retailing
• Critical Success factor ;CSF
– Consumer behavior
•
•
•
•
•
His/her behavior based on Catalog shopping.
People who have not enough time to shopping.
People who have not enough time for decision making.
People who need information before purchasing.
People who must compare quality and price of products
before willing to buy.
• Willing to buy by him or herself.
• People who can’t go out to shopping ; Elder,patient
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Chapter XII
Retailing in Digital economy
Non store Retailing : e-retailing
• Critical Success factor ;CSF
– Data Communication Technology
•
•
•
•
•
Band width ; Widely
Efficiency of hardware ; Computer,Modem,Server
Networks ; LAN , Wireless LAN , Internet service provider
Line ; Leads-line , Digital network: ISDN , ADSL
Quality web-site ; First impression , Clear , Fast , High &
benefit content , Good update , Confidential
• e-Payment ; Convenience , Safe & Clear , Confidential
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Chapter XII
Retailing in Digital economy
Non store Retailing : e-retailing
• Critical Success factor ;CSF
– Consumer’s occasion to use a computer
• New era Consumer ; Techno-sumer
• Children and Teens
• Elder
• Patients
– Efficiency of delivery system
• Case ; Pizza company , 7-catalog
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Chapter XII
Retailing in Digital economy
Non store Retailing : Shop-online
• Benefit of shopping online business
– Consumer’s
• High number of alternative
• Ordering and getting merchandise
• Safety
• Providing information to evaluate merchandise
• Comparison of price competition.
– Entrepreneur’s
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Chapter XII
Retailing in Digital economy
Non store Retailing : Shop-online
• Benefit of shopping online business
– Entrepreneur’s
• Reduce cost of merchandise
– Cost of investment in store front ; Land Rent
– Cost of management ; HRM , stocking …etc
• Getting high of customer’s information
– Customer’s database management
• Easy to change merchandise
– Daily up to date web-site
– Everyday new information
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Chapter XII
Retailing in Digital economy
Non store Retailing
: Customer Database Management
• Competitive advantage in use of internet
– getting the high value premium from e-retailing
– Automation of customer data capturing
• name, address, sex, age, education, salary
• telephone & mobile number , e-mail number
• consumer behavior,
– purchasing volume per period of time
– ranking of product that customer willing to buy
– Data processing to planning the marketing strategy
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Chapter XII
Retailing in Digital economy
Non store Retailing
: Customer Database Management
• Competitive advantage in use of internet
– Data processing to planning the marketing
strategy
•
•
•
•
•
Classifying the customer to segment the target group
Easy to following the customer
Convenience for after sale service
Follow up the customer satisfaction
FAQ (Frequency of Ask & Question)
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Chapter XII
Retailing in Digital economy
Non store Retailing
: Web-site Management;e-commerce Strategy
• e-commerce strategy ;
– SWOT analysis ; Porter’s Industrial analysis
– Porter’s 3 generic model of strategy
– Efficient consumer response ; ECR
• e-Shopping mall
• e-Logistics
• e-Payment
– PR the web-site on normal media
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Chapter XII
Retailing in Digital economy
Non store Retailing
: Web-site Management;e-commerce Strategy
• e-commerce strategy ; Consideration
– Up loading web site to the internet network
• Set up the domain name
• Selection of Hosting or web server or IP address
• ISP ; Servicing , speed and cost of management
– Maintenance the web-site
• Updating the merchandise and new information
• Maintain the customer
• Follow up the competitors
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Chapter XI
Information Technology in
Retailing Business : Q&A
Q&A
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