Offline Retailing and B2C E-Commerce

Offline Retailing and B2C E-Commerce

Retailing and B2C E-Commerce 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 Retail sales ($billion), by type of business 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; up scaling increases costs causing prices to rise; higher prices open the door for a new entrant charging lower prices The wheel of retailing Retail Life Cycle

Retailers are also products because they provide benefits and must offer a competitive advantage to survive Introduction: new retailer takes a unique approach to doing business Growth: retailer catches on with shoppers, sales and profits rise, others start to copy it so retailer expands offerings Maturity: many have copied it and an entire industry has

formed, profits decline Decline: retail format becomes obsolete The retail life cycle Factors Affecting the Future of Retailing Demographics Convenience for working women Catering to specific age segments

Recognizing ethnic diversity Technology Globalization Classifying Retailers All retailers are classified by the NAICS codes Some lines still blurred

scrambled merchandising - strategy of carrying a combination of food and nonfood items Classifying Retailers by Service Self-service retailers Full-service retailers Limited-service retailers Classifying Retailers by Merchandise Selection

Merchandise breadth is the number of different product lines available Narrow versus Broad assortments Merchandise depth is the variety of choices available for each specific product Shallow versus Deep assortments Breadth versus depth of merchandise lines

Merchandise Selection 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 Supercenters are a popular store format. 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 Forms of nonstore retailing 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 Automatic Vending

Appealing for selling convenience goods because of small space required, and minimal personnel to maintain and operate French fries Software Levis jeans B2C E-Commerce Online exchange between companies and

individual consumers 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 E-Commerce and the Marketer Benefits The world is your marketplace Decreases costs

Very specialized businesses possible Real-time pricing Tracking of consumer behavior Limitations

Lack of security Must maintain site Price competition Conflicts with conventional retailers Legal issues not

resolved Developing a Store Positioning Strategy Store image how the target market perceives the store its market position relative to the competition Atmospherics the use of color, lighting, scents, furnishings,

sounds, and other design elements to create a desired setting Mapping a Stores Personality 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 Building the Theater: Store Location Types of Locations Site Selection Location planners evaluate trade area and conduct site evaluation traffic flow, number of parking spaces available, ease of delivery access, visibility from street, local

zoning laws, population characteristics, community life cycle, mobility, degree of competition

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