Uneak White's Personal Brand Exploration Presentation
Berman ch 06 11e
1. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-1
Web, Nonstore-
Based, and
Other Forms of
Nontraditional
Retailing
RETAIL
MANAGEMENT:
A STRATEGIC
APPROACH
11th Edition11th Edition
BERMAN EVANS
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2. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-2
Chapter Objectives
To contrast single-channel and multi-
channel retailing
To look at the characteristics of the three
major retail institutions involved with
nonstore-based strategy mixes: direct
marketing, direct selling, and vending
machines – with an emphasis on direct
marketing
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3. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-3
Chapter Objectives (cont.)
To explore the emergence of electronic
retailing through the World Wide Web
To discuss two other nontraditional forms of
retailing: video kiosks and airport retailing
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4. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-4
Figure 6-1a: Approaches to
Retailing Channels
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5. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-5
Figure 6-1b: Approaches to
Retailing Channels
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6. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-6
Nonstore Retailing
Retailing strategy that is not store-based
Exceeds $410 billion annually
80% comes from direct marketing
Web-based retailing is the fastest-
growing area
Web retailing expected to reach $180
annually as of 2012
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7. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-7
Nontraditional Retailing
Nontraditional retailing also includes
formats that do not fit into store and
nonstore-based categories:
Video kiosks
Airport retailing
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8. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-8
Direct Marketing
Customer is initially exposed to a good or
service through a non-personal medium and
then orders by mail, phone, fax, or computer
Annual U.S. sales exceed $325 billion (including
the Web)
Other leading countries include
* Japan
* Germany
* Great Britain
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* France
* Italy
9. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
6-9
Characteristics of Direct MarketingCharacteristics of Direct Marketing
CustomersCustomers
Married
Upper middle class
35-50 years old
Desire convenience,
unique items, good
prices
10. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-10
Strategic Business Advantages of DirectStrategic Business Advantages of Direct
MarketingMarketing
Reduced costs
Lower prices
Large geographic coverage
Convenient to customers
Ability to pinpoint customer segments
Ability to eliminate sales tax for some
Ability to supplement regular business
without additional outlets
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11. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-11
Strategic Business LimitationsStrategic Business Limitations
of Direct Marketingof Direct Marketing
Products often cannot be examined prior to
purchase
Costs may be underestimated
Response rates to catalogs under 10%
Clutter exists
Long lead time required
Industry reputation sometimes negative
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12. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-12
Data-Base Retailing
Collection, storage, and usage of relevant
customer information
* name
* address
* background
* shopping interests
* purchase behavior
Observation of 80-20 rule
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13. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-13
Emerging Trends
Evolving activities
Changing customer lifestyles
Increasing competition
Increasing usage of dual distribution
channels
Changing media roles, technological
advances, and global penetration
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14. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-14
Selection Factors by Customers
Company reputation and image
Ability to shop whenever consumer wants
Types of goods and services
Availability of toll-free phone number or Web site
for ordering
Credit card acceptance
Speed of promised delivery time
Competitive prices
Satisfaction with past purchases and good return
policy
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15. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-15
Figure 6-4: Executing a Direct MarketingFigure 6-4: Executing a Direct Marketing
StrategyStrategy
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16. 6-16Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Media SelectionMedia Selection
Printed catalogs
Direct-mail ads and
brochures
Inserts with monthly
credit card and other
bills (statement
stuffers)
Freestanding displays
Ads or programs in
mass media
Banner ads or hot
links on the Web
Video kiosks
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17. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-17
Outcome MeasuresOutcome Measures
Overall response rate
Average purchase amount
Sales volume by product category
Value of list brokers
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18. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-18
Direct Selling
Direct selling includes personal contact
with consumers in their homes (and other
nonstore locations such as offices) and
phone solicitations initiated by retailer.
Annual sales of $31 billion in the U.S., where
15 million people are employed (more than
80 percent part-time).
Annual foreign revenues of $85 billion,
generated by 48 million salespeople.
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19. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-19
Table 6-1: U.S. Direct Selling Industry
20. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-20
Vending Machines
Vending machines are a cash- or card-
operated retailing format that sells goods
and services.
Eliminates the use of sales personnel and
allows 24-hour sales.
Machines placed wherever convenient for
consumers.
95 percent of the $50 billion in annual U.S.
vending machine sales involve hot/cold
beverages and food items.
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21. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-21
Emergence of World Wide Web
The World Wide Web (Web) is a way to access
information on the Internet.
People work with easy-to-use Web addresses
(sites) and pages.
Web users see words, charts, pictures, and
video while hearing audio.
Both “Internet” and “World Wide” Web
convey the same central theme: online
interactive retailing.
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22. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-22
The Role of the WebThe Role of the Web
Project a retail presence
Enhance image
Generate sales
Reach geographically-dispersed customers
Provide information to customers
Promote new products
Demonstrate new product benefits
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23. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-23
The Role of the Web (cont.)The Role of the Web (cont.)
Provide customer service (e.g. E-mail)
Be more “personal” with consumers
Conduct a retail business efficiently
Obtain customer feedback
Promote special offers
Describe employment opportunities
Present information to potential
investors, franchisees, and the media
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24. 6-24Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 6-6:
Web-Based
Retail Sales
Projections
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25. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-25
Figure 6-8: Five
Stages of
Developing a
Retail Web
Presence
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26. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-2626
Figure 6-9:
Checklist
of Retailer
Decisions
for the
Web
27. 6-27Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Web StrengthsWeb Strengths
Using the Web
information
entertainment
interactive
communications
Shopping Online
selection
prices
convenience
fun
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28. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-28
Reasons NOT to Shop OnlineReasons NOT to Shop Online
Lack of trust
Fear
Lack of security
Lack of personal communication
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29. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-29
Recommendations forRecommendations for
Web RetailersWeb Retailers
Develop or exploit a well-known,
trustworthy retailer name
Tailor the product assortment for Web
shoppers
Enable the shopper to “click” as little as
possible
Provide a solid search engine
Use customer information
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30. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-30
Video Kiosks
A video kiosk is a freestanding, interactive,
electronic computer terminal that displays
products and related information.
Some kiosks are located in stores to
enhance customer service; others let
consumers place orders.
There are 2.2 million video kiosks in use
throughout the world, nearly 1 million of
which are Internet-connected.
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31. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-31
Airport Retailing
Large group of prospective shoppers
Captive audience
Strong sales-per-square-foot of retail
space
Strong sales of gift and travel items
Difficulty in replenishment
Longer operating hours
Duty-free shopping possible
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32. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-32
Figure 6-13: Airport Retailing and Starbucks
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33. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 6-33
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