Chapter 6

• To Examine Characteristics of Non-
Store Retail Strategy Mixes
• To Explore Emergence of Electronic
Retailing
• To Discuss Two Other Nontraditional
Forms of Retailing

• Sold Through Nonpersonal Medium
• Two Categories
– General
– Specialty

• Reduced Costs
• Lower Prices
• Shopping Convenience
• Market Segmentation Easy
• Geographic Expansion

• Limited Product Examination
• Underestimated Entry Costs
• Less Than 10% Purchase
• Clutter
• Prices and Styles Difficult to Plan
• Industry Bad Name

• Mail
• TV
• Radio
• Magazine
• Newspaper
• Phone Directory
• Fax

• Evolving Attitudes and Activities of Direct
Marketers
• Changing Consumer Life-Styles
• Increased Competition Among Firms
• Greater Use of Dual Distribution Channels
• Newer Roles for Catalogs and TV
• Technological Advances
• Mounting Interest in Global Direct Marketing

Business
Definition
Generating
Customers
Media
Selection
Presenting the Message
Measuring
Results &
Maintaining the Data Base
Order
Fulfillment
Customer
Response
Customer
Contact

• People Dislike
• Customer Privacy
• Dual Distribution Requires Consistency
• Rising Postal Rates
• Legal Environment

• Personal Contact in Homes
• Phone Solicitations
• Strategy Mix
– Convenient Shopping
– Personal Touch

• Working Women
• Small Applicant Pool
• Low Sales Productivity
• High Sales Force Turnover
• Above Average Prices
• Legal Restrictions
– High Pressure Sales
• Poor Image

• Product Types
• Pricing
• Most Common Places for
Purchase

• Internet
• World Wide Web

• Project a Retail Presence
• Generate Sales
• Enhance Image
• Geographic Diversity
• Provide Information
• Customer Service
• Add Personalization
• Cost-efficient
• Customer Feedback
• Special Offers
• Job Opportunities

• Brand Identity
• Convenience
• Cross-Merchandising
• Culture
• Customer Service
• Design
• Free Shipping
• Fashion
• Fulfillment
• Fun and Entertainment
• Information Integration
• Personalization
• Public Relations/Marketing
• One-Click Ordering
• Selection

Stage 1:
Brochure Web Site
Stage 2:
Commerce Web Site
Stage 3:
Web Site Integrated w/
Existing Processes
Stage 4:
The “Webified” Store
Stage 5:
Site Integrated w/
Manufacturer Systems

• Finding Things
• Seeing Purchases
• Customer Service
• Dual Distribution Continuity
• Customer Privacy

• Video Kiosks
• Airport Retailing

• The Characteristics of:
– Direct Marketing
– Direct Selling and Vending Machines
– Vending Machines
• Electronic Retailing Through the
World Wide Web
• Video Kiosks
• Airport Retailing

Questions?