Web,

Nonstore-Based, &
Other Forms of Nontraditional
Retailing
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Types of Non-store Retailers
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DIRECT MARKETING
6-4
Direct Marketing
Customer is first exposed to a good or
service through a nonpersonal medium
and then orders by mail/email,
phone/SMS/MMS, fax, or computer
6-5
Any medium that can be used to del iver a communicati on to
a customer can be empl oyed i n di rect marketi ng, i ncl udi ng:
Email Market ing
Online Tool s
Display Ad s are int eract ive ads
Sear ch
Social Medi a Sit es
Mobile
Telemarket ing
Voicemail Market ing
Broadcast Faxing
Couponing
Digital Coupons:
Dail y Deal Sit es of f er
Direct Response TV
Direct Mai l
Direct Response Radio
Insert Medi a
Out -of -Home
Direct Response Mag azines and Newsp aper s
6-6
Direct Marketing Categories
GENERAL
offer full lines of
products from clothing
to housewares
SPECIALTY
offer narrow product
lines
6-7
Strategic Business Advantages
of Direct Marketing
Reduced cost s
Lower prices
Lar ge geographic coverage
Convenient t o customers
Abili ty t o pinpoint customer segments
Abili ty t o eliminate sales t ax
Abili ty t o supplement regular business
wit hout additional outlets
6-8
Strategic Business Limitations
of Direct Marketing
Product s cannot be examined prior to
purchase
Cost s may be underestimated
Response rates t o catalogs under 10%
Clutter /Crowd exi sts
Long lead t ime required
Indust ry reputat ion sometimes negative
6-9
Important for Direct
Response Marketing
Right List
Timing
Define campaign
Offer(off , Buy one & get one free) and Call to Action
Give Multiple ways to responds (to increase leads)
Customer Testimonial are powerful
Test/Test/Test
Call to Follow-up
Track Result
6-10
Database Retai l ing
Collect ion, st orage, and usage of
relev ant customer informat ion
* name
* address
* background
* shopping interests
* purchase behavior
Observation of 80-20 rule
6-11
2-11
Issues in Catalog Retailing:
Low Start Up Cost
Evolution of Multi-Channel Offering
Hard to compete with large well established firms
Increasing Mail Costs
Clutter from other Catalogs
General merchandise catalogs like J C Penney
Specialty Catalogs like Victoria Secret
6-12
Direct Response Television (DRTV)
/TV Retai ling
6-13
2-13
Issues i n Television Home
Shopping
Consumers watch cable stations, infomercials or
direct response ads
Few consumers watch regularly
Most purchases made by small proportion of
viewers
Customers cant examine merchandise
Customers must wait for merchandise to come on
Sells predominately jewelry, apparel, cosmetics,
kitchenware, and exercise equipment
6-14
DIRECT SELLING
6-15
2-15
Issues i n Direct Sel l ing
Completely bypasses retailers and wholesalers
Manufacturers set up their own channels to sell
their products directly to consumers
Party plan system: merchandise is demonstrated in
a party atmosphere
Multi-level network: Master distributors sell to
distributors who sell merchandise
Pyramid schemes: Firm sells to other distributors
and little if any merchandise goes to end users
6-16
Direct Sell ing & Mary Kay
Annual Rev enue $ 2.4 Bi l li on
Sal e Consultant: 1.8 mi ll i on
6-17
Avon Products, Inc. known si mpl y as Avon i s an Ameri can i nternati onal manufacturer and di stri butor
of beauty, househol d, and personal care company that sel l s products through representati ves i n
over 140 countri es ac ross the worl d.
As of 2012, Avon had annual sal es of $10.7 bi l l ion worl dwi de.
It i s the 5
th
l argest beauty company & 2nd l argest di rect sel l i ng enterpri se i n the worl d, wi th 6.4
mi l l i on representati ves
6-18
6-19
WEB Retai ling
Annual Revenue: $ 14 Billion
(2012) Est. 1995) Annual Revenue: $ 61 Billion
(2012) Est. 1995
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Five Stages of Developing a Retail Web Presence
1. Brochure Web Site
2. Commerce Web Site
3. Integrated Web Site
4. The Webified Store
5. Site Integrated with
Manufacturer Systems
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www.bikroy.com
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Reasons NOT to Shop Online
Trust
Fear
Lack of securit y
Lack of per sonal communicat ion
Bangladesh:
Access t o Net
Payment Settlement
Smal l Ter minal
Deli very / Express Mai l
6-42
2013
6-43
Google Shopping
http: //www.google.com/shopping/
Google Shopping, formerly Google Product Search,
Google Products and Froogle, is a internet
marketplace launched by Google Inc.
Its interface provides an HTML form field into which a
user can type product queries to return lists of
vendors selling a particular product, as well as
pricing information.
On May 31, 2012, Google announced that Google
Product Search would become Google Shopping, an
entirely monetized service where merchants would
have to pay Google in order for their products to be
displayed.
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6-45
Google Catalogs
http: //www.google.com/catalogs
Google Catalogs is a shopping application , which
was produced by Google in August 2011.
Google Catalog search was first conceptualized in
December, 2001 as a search function on the web
only. This was a free Google service.
Users were able to flip through pages of catalogs from
a variety of industries, except those that focus on
liquor, tobacco, firearms, or similar products
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6-51
Next Empire by
Google
The virtual empire on which the
sun never sets
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SMS based Retailing
Unsolicited SMS
Regulators might enact law to stop /penalize
for unsolicited SMS
Already in our neighboring country, Telecom
Regulatory Authority of India (TRAI) enacted
such law
Same issue is also applicable for
Telemarketing
6-56
Vending machine
Tobacco vending & Regulators
Location: Mumbai
Payments credit and debitcards
as well as cash.
The Gitanjali group
6-57
Video Kiosk
6-58
2-58
Issues in Vending Machine Retailing
Automatic Merchandising
About $25 billion worth of convenience goods are sold to
Americans through 4.7 million vending machines
Sales growth has been declining due to higher prices and
healthier eating habits
New technology may help sales growth
Trend of placing machines in captive consumer locations
6-59
Features of Airport Retail ing
Lar ge group of prospective shoppers
Captive audience
Strong sales per square foot of ret ai l
space
Strong sales of gift and travel i tems
Difficulty in replenishment
Longer oper ating hours
Duty-free shopping possible
6-60
Airport Retailing in Bangladesh
Hazr at Shahjalal International
Air port
(IATA Code : DAC)
Approximately
4 million international &
2 million domestic passengers
pass through the airport annually