Channels and E-Tailing
Non-Store Retailing
2
Chapter Objectives
Explain multichannel retailing.
Explain e-tailing.
Identify elements to include on a retail Web site.
Identify the types of non-store retailers
3
Beyond the Store
Multichannel retailing, e-tailing, and non-store
shopping are aspects of the retailing industry that
are growing in use and popularity with customers
worldwide.
4
Multichannel Retailing
One method retailers use to
attract new customers is
multichannel retailing.
multichannel retailing
the use of more than
one method for reaching
customers
5
Multichannel Retailing
Retail Store
Printed Catalog
Web Site
Multichannel Retailing
6
What Is E-Tailing?
E-tailing can include the
selling of goods and
services from business-tobusiness, business-tocustomer, or customer-tocustomer.
e-tailing the selling of
goods and services to
the customer by means
of the Internet
7
Why E-Tail?
Retailers become e-tailers for these reasons:
To increase customer base.
To increase sales and profit.
To enhance customer perception.
To access a growing market.
8
Why E-Tail?
The retailer must decide:
Who will design the Web site?
What information will appear on the Web site?
What image should the Web site project?
How will orders be filled?
What types of customer services will be offered?
Who will maintain the Web Site?
Should it should join an online mall?
9
Building an E-tailing Web Site
Design
Professional
In-House
Web Address
Online Catalog
Special Features and Links
Filling Orders Online and Shipping
Online Customer Service
Web-Site Maintenance
10
Navigating the E-Marketplace
How would you narrow down your
Operating an e-tail business
electronic
channel—the
search if on
youanwanted
to purchase
Web—can be costly,something
due to design,
delivery,
returns,
and
online?
eBay is
an Internet
operating expenses.
auction site that allows users to set up
own companies
personal “stores”
within
Though Many largertheir
dot-com
crashed
in the
one
framework—just
retail mall.
Stores
can Newton,
be browsed
1990’s,
small storeslike
likeaHarris
Cyclery
of West
orMassachusetts,
sorted by name,actually
category,
or typesales
of merchandise—and
all
increase
using a basic Web
site.are
Today,
a third ofeBay
Harris’s
bicycle
business
in on
items
searchable.
users
are really
able rides
to shop
themany
Web to
get hard-to-find
personal
from
different
places at parts
once and
without
havingservice.
to leave
the main site.
Describe an e-business’s home page to your class after
For
more information
retailing,
viewing
one throughon
marketingseries.glencoe.com.
go to marketingseries.glencoe.com.
11
1.
Define e-tailing.
2.
What are two factors that should be
considered when determining who will design
a store’s Web site?
3.
What is an online mall?
12
What Is Non-Store
Retailing?
E-tailing is one type of nonstore retailing.
Other types include:
In-home sales
Vending machines
Catalogs
Internet sales
non-store retailing a
form of retailing that
takes place in areas
other than fixed-location
stores
continued
13
continued
What Is Non-Store
Retailing?
Direct selling
Route selling
Consultant selling
Home-party selling
Vending-machine selling
continued
direct selling a method
of retailing in which a
company representative
or salesperson calls at a
customer’s home to sell
the company’s products
or services
vending machine a
machine that sells
merchandise by inserting
coins or bills into the
machine, pressing a
button, and receiving the
item being purchased
14
continued
What Is Non-Store
Retailing?
Catalog selling
Direct-mail selling
Telephone selling
continued
catalog retailer a vendor
who sells merchandise
through printed or electronic
catalogs
direct mail mail delivered
to your home to sell
merchandise
telephone selling a
method of retailing in which
a company representative
phones a customer’s home
and makes a sales
presentation for a product or
service
15
continued
What Is Non-Store
Retailing?
Infomercial selling
TV shopping channels
continued
infomercial a long TV
commercial advertising
merchandise that can be
bought by mail order,
telephone, online, or in a
store
TV shopping channels
channels that feature
hosts or hostesses who
sell merchandise by
describing merchandise
shown on the television
screen
16
continued
What Is Non-Store
Retailing?
Street vendors
Electronic auctions
street vendors vendors
who make their products
available from sidewalk
locations
17
1.
What is non-store retailing?
2.
What are three types of direct selling?
3.
What are three advantages of vendingmachine selling?
18
Checking Concepts
1. Define multichannel
retailing.
2. Name three methods of
direct selling.
3. Explain e-tailing.
4. Identify the elements of
an effective retail Web
site.
continued
1. When
2.
3.
4.
Elements
Multichannel
route
selling,
businesses
include
retailing
consultant
sell
basic
their
information
is
products
the
selling,
use
of the
and
to
about
more
home
customer
the
than
business,
party
one
method
selling
through
an
onlinefor
the
catalog,
reaching
Internet,
and
a new
they
products
are
consumers.
selling
section.
through
Other
They
include features
e-tailing.
helpful
retail
stores, printed
include
links to
catalogs, and
associated
Web
the
Internet.
sites
and a site
map.
19
Checking Concepts
5. Explain one advantage
and one disadvantage of
e-tailing.
6. Define non-store
retailing.
7. Identify the different
types of non-store
retailers.
continued
5. It
6.
7.
Types
One
is any
advantage
include
form of is
that it allows
retailing
direct
selling,
that takes
a
business
place
vending-machine
in areas
to
increase
other
selling,
than
direct
itsa fixed
mail,
customer
store
telephone
location.
base
selling,
and
increase sales.
infomercials,
TV
One disadvantage
channels,
street
is the safety
vendors,
andand
security ofmalls.
electronic
credit
card use on the
Internet.
20
Checking Concepts
Critical Thinking
8. Explain why businesses
use multichannel
retailing.
8. Multichannel
retailing allows
businesses to
serve their
customers in new
and better ways,
which helps to
increase sales.
21
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