Marketing bán hàng - Chapter 3: Multi - Channel retailing

Chapter 3Multi-Channel RetailingThe World of RetailingIntroduction to RetailingTypes of RetailersMulti-Channel RetailingCustomer Buying Behavior2The Multi-Channel RetailerRetailerDigital Vision / Getty ImagesSteve Cole/Getty ImagesThe McGraw-Hill Companies, Inc./Andrew Resek, photographer3Why are Retailers Using Multiple Channels to Interact with Customers?Customer Want to interact in different waysEach channel offers a unique set of benefits for Customers4Benefits Provided by Different Channels5Unique Benefits Provided by Store ChannelBrowsingTouch and feel productsPersonal serviceCash payment Immediate gratificationEntertainment and social interactionRisk ReductionRoyalty-Free/CORBIS(c) Brand X Pictures/PunchStock6Benefits Provided by Catalog ChannelConveniencePortability, easily accessible Visual presentation SafetyHoby Finn/Getty Images7Unique Benefits Provided by Internet ChannelConvenienceSafetyBroad selectionDetailed informationPersonalizationVirtual communitiesProblem-solving information More info to evaluate merchandiseThe McGraw-Hill Companies, Inc./Jill Braaten, photographer8Problem Solution BenefitsOffered By Electronic ChannelBundling Information, Services, and ProductsExamplesiVillageThe Wedding Channel, The Knot9Virtual CommunitiesPeople who seek information, products and services communicate with each other regarding specific issuesRoyalty-Free/CORBIS10Virtual CommunitiesVirtual community is a network of members sharing common interests that interact with each other electronically.Examples:IVillage - WomenGarden.Com - GardenersFlypaper.com – talks about fashionCafeutne.org – social issues11Personalization Potential Of Electronic Channel12Customization BenefitsOffered By Electronic ChannelInformation Tailored to Individual Consumers to Help Them Make Quicker and Better Purchase DecisionsFred is a Super Retail SalespersonCustomized Information -- Side By Side Comparisons, Full Motion Video13Does The Electronic Channel Have Lower Costs Than Stores?StoresBricks and Mortar, SalespeopleAttracting Customers to StoreDistribution CentersRestocking Returned MerchandiseElectronic RetailersBuilding,Refreshing Web SiteAttracting Customers to Web SitePicking, Packing, Mailing Small Orders to HomeRestocking Returned Merchandise14Will Electronic Channel’s Low Search Cost Increase Price Competition?Conventional WisdomGreater Comparison Shopping Offerings Easily Compared on PriceLower Search Costs => More Emphasis on PriceEmpirical EvidenceSubstantial Price DispersionLower Search Costs for Quality Information=> Less Price SensitivityLower Search Costs Lead to Better Decisions15What People Buy Over the InternetTravelPC/Electronics/ToysBooks/SoftwareApparelHome & GardenJewelry & Watches 16What Merchandise Will Be Sold Successfully Through Electronic Channel? “Look and See” attributes vs. “Touch and Feel” attributes (?) Degree to which information can be used to predict satisfaction prior to purchaseGiftsServices Might not need to “Touch and Feel” “Touch and Feel” not useful - Gifts Superior presentation of “Touch and Feel” Branding 17Types of AttributesSearch: Can be determined prior to purchase, consumption. (e.g., price, brand)Experience: Cannot determine prior to purchase, consumption. (e.g., taste, comfort)Credence: Cannot be directly determined by the average consumer. (e.g., health benefits, technical specifications)18How to Sell Over the Internetand eliminate returns Even when retailers provide “touch and feel information” retailers still experience 10% returns of purchases 20% on the electronic channel. National brands provide a consistent experience for customers to overcome not being able to touch and feel.The McGraw-Hill Companies, Inc./Jill Braaten, photographer19How Can The Electronic Channel Overcome Limitations? Use technology to convert “touch and feel” information into “look and see” information 3-D Imaging Zoom Technology Live Chat 360 Degree Viewing Virtual ModelsTechnology increases sales20Perceived Risks of Electronic ShoppingSecurity of credit card transaction – security problems have not arisen in actual usagePotential privacy violations – consumers are concerned about retailers collecting their personal informationDon Farrall/Getty Images21When The Electronic Channel Provides Superior BenefitsGIFTSSaves timeSaves effort in packingSaves effort in deliverySERVICESNo Shipping ProblemsExamplesTravel websitesBankingNewspapersJanis Christie/Getty Images22Resources Needed to Compete Effectively in Internet RetailingExciting, Easy to Use Web Site Management Information SystemsOrder processing and statusCustomer databasePersonalization softwareBut These Resources Were Not Enough!23Resources Needed to Compete Effectively in Internet RetailingRetailing SkillsManaging inventoryEditing assortmentEfficient Fulfillment SystemsSignificant costs - last milePicking and packing individual ordersHandling returns - reverse distribution24Resources Needed to Compete Effectively in Internet RetailingStrong Brand Name and Image Build traffic Reduce customer perceived riskComplementary MerchandiseOne stop shoppingLower shipping costs Availability of Customer InformationTailored presentations - personalization 25Resources Possessed by Different Firm Types26Why did Electronic-only Retailers Fail?They did not have skills in brand recognitionThey did not have skills necessary to build consumer trustThey did not have skills to build assortments, manage inventory and fulfill small orders to homesDigital Vision/Getty ImagesThey had skills in web designThey had skills in systems to manage transactions27Resources Possessed by Different Firm Types28Catalog Retailers can Add Electronic Channel EasilyReady to take ordersAble to pack merchandiseAble to deliverAble to handle returned merchandiseAlready have a databaseVisual merchandise for catalog is the same for electronicSteve Cole/Getty Images29Resources Possessed by Different Firm Types30Store-based Retailers vs. Electronic Retail EntrepreneursKnowledge of RetailingAssortment PlanningDistribution SystemsReputationCustomer DatabaseConvenient Location for Picking Up, Returning Merchandise, Warranty Service and InstallationVendor RelationshipsRoyalty-Free/CORBIS31Why did Walgreens Beat Out The Electronic Drugstore Chains?Three thousand conveniently located stores in the US with drive-through windows for picking up prescriptions and merchandiseA distribution system in place for picking, packing and shipping prescription pharmaceuticals and merchandise presently ordered by phoneA strong brand reputation for being trustworthy and helping customers on health-related decisionsAgreements in places with third-party payers (HMOs and insurance companies) to accept and provide pharmaceutical benefits for its customers32Resources Possessed by Different Firm Types33Advantages of Retailers vs. ManufacturersDistribute Merchandise Directly to CustomersProvide AssortmentsCollect and Use Information about CustomersWidespread Disintermediation Unlikely34Ecommerce MythsLow Cost of EntryOverestimate Importance of Technology, Under Estimated Need for Traditional ResourcesFirst Mover WinsGets Rid of the Middleman35Evolution Toward Multi-channel RetailingElectronic channel gives a way to overcome limitations of existing formatWith electronic channel, retailers can reach out to new marketsBuilds share of walletE-channel enables retailers to give insights into customers’ shopping behaviors36Overcoming Existing FormatSize of the store is the greatest constraint for storesBy blending store with internet-enabled kiosks, retailers expand assortments offered to shoppers.Store based retailers face inconsistent executionKiosks can be used by both sales associates and customers for up-to-date product information, stock information and price reduction on clearances.37Percentage of Cross Channel Shoppers38Capabilities for Multi-Channel Retailing To effectively operate and realize the benefits of multi-channel retailing, firms need to have skills in:Developing assortments and managing inventoryManaging employees in distant locationsDistribute merchandise efficiently from DCs to storesPresent merchandise in catalogsPresent merchandise on websitesProcess orders electronicallyEfficient distribution of individual orders to homesOperate information systems for all channels39Capabilities for Multi-Channel Retailing40Multi-channel Services and Features41Issues Confronting a Multi-Channel RetailerMaintaining Brand Image Across ChannelsMerchandise Assortment Offered in Each ChannelPricing Across Channels42Shopping in the Future43Integration – Key to Multi-Channel Retailing44