Transcript Retail Technology

Unit-1
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Consumer is in charge.
Providing value to customers has become a
challenge for retailers.
Consumers now have a wider choice of
Merchandise available..
Access to a large amount of information.
Buying decision..
Customers wants ‘value ‘ in terms of not only
price, appearance, quality, and information
but also selection, convenience , service, and
entertainment.
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Difficult to attract enough footfall.
Customer loyalty...
Value chain..
Technology makes the retailers
interact…directly.
Technology is being considered as an
important tool in building and maintaining
relationships.
It is being used to learn about the needs,
preferences, shopping habits of individual
consumers..
In-store technologies
2. On-line technologies
these technologies are used information display
Identification, checkouts, point-of-sale(POS)
Signage, RIFD(Radio Frequency identification)tags
and hand-held shopping assistance and
Body scanning, especially for physical stores.
1.
Communication is an integral part of the
retailers marketing strategy .primarily,
communication is used to inform the customers
about the retailer, the merchandise and services.
Today consumers can communicate or reach the
Organisations. ex.. Toll free no.’s
The most common tools are:
1.Advertising
2.Sales promotion
3.Public relations
4.Personal selling
5.Direct marketing
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sales
promo
tion
Public
relatio
ns
Advert
ising
Retail
comm
unicati
on mix
Direct
market
ing
Person
al
selling
A customer is first exposed to a good or service
through a non-personal medium such is direct
Mail, TV, radio, magazine, newspaper, or computer
and then orders by mail. Phone, or fax and
increasingly by computer.
Popular products are gift items, apparel, magazines,
books, and music, sports equipment, home
accessories, food, and insurance.
Direct marketers can be divided into two broad
categories: General and Specialty.
General direct marketing firms offer a full line
of products and sell …
Specialty direct marketers focus on more
narrow product lines…
Direct marketing has a number of strategic
business advantages:
 Many costs are reduced-low start up costs
are possible.
 Inventories are reduced
 No displays are needed
 A prime location is unnecessary
 Regularly staffed store hours are not
important
 It is possible for direct marketers to have
lower prices
 A huge geographic area can be covered
inexpensively and efficiently.
 Pinpointed
 Tax…
 Avoiding
trough targeted mailings..
of adding outlets…(N&G)
Direct marketing also has its limits..
 Products cannot be examined before purchase
 The range of items purchased is more limited
than in stores.
 Catalogs can be expensive
 A computer system is required to track
shipments, monitor purchases and returns, and
keep mailings current.
 24 hour…
 Delivery delays…
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Direct marketing is a form of retailing in which
a consumer is exposed to a good or service
through a non-personal medium and then
orders by mail, phone, fax, or computer.
It may also be viewed as “an interactive
system that uses one more advertising media
to effect a measurable response and /or
transaction at any location, with this activity
stored on a database”.
We do include these as Forms of direct marketing…
Any catalog, any mail, TV, radio, magazine,
newspaper, phone directory, fax, or other ad;
any computer-based transaction; or any other
non personal contact that stimulates customers
to place orders by mail, phone, fax, or
Co
We do not include these as Forms of direct
marketing:
Direct marketing, conventional vending
machines where by consumers are exposed to
non personal media but do not complete
transactions via mail, fax, phone, or computer; they
do not interact with the firm in a manner that allows
a database to be generated and kept.
The role of marketing is to influence or direct
activities from the manufacturer to the patient:
The right products
In the right quantity
At the right place
For the right price
At the right time
 Retailing
strategy that is not store-
based
 It exceeds $300 billion annually
 78% comes from direct marketing
 Web-based retailing is fastest growing
area
 Nontraditional
retailing also includes
formats that do not fit into the store
and non-store based categories:
Video kiosks
Airport retailing
 Customer
is first exposed to a good or
service through a nonpersonal medium
and then orders by mail, phone, fax, or
computer
 Annual U.S. sales exceed $235 billion
 Other leading countries include
* Japan
* Germany
* Great Britain
*France
*Italy
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Married
Upper middle class
36-50 years old
Desires
convenience,
unique
merchandise, good
prices
SPECIALTY
GENERAL
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offer full lines of
products from
clothing to
housewares
◦ J.C. Penney
◦ QVC
offer narrow product
lines
◦ L.L. Bean
◦ Franklin Mint
 Collection,
storage, and usage of
relevant customer information
* name
* address
* background
* shopping interests
* purchase behavior
 Observation
of 80-20 rule
Several trends are relevant for direct marketing:
 The evolving activities of direct marketers.
 Changing consumer lifestyles
 Increased competition
 The greater use of dual distribution channels
 The newer roles for catalogs and TV
 Technological advances
 The interest in global direct marketing.
 Increasing usage of dual distribution channels
 Changing media roles, technological advances,
and global penetration
Company reputation and image
 Ability to shop whenever consumer wants
 Types of goods and services
 Availability of toll-free phone number or Web
site for ordering
 Credit card acceptance
 Speed of promised delivery time
 Competitive prices
 Satisfaction with past purchases and good
return policy
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Freestanding displays
 Ads or programs in
mass media
 Banner ads or hot links
on the Web
 Video kiosks
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Printed catalogs
 Direct-mail ads and
brochures
 Inserts with monthly
credit card and
other bills
(statement stuffers)
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 Overall
Response Rate
 Average Purchase Amount
 Sales Volume by Product Category
 Value of list brokers
Major Product Groups
% of Industry
Home/ family care products
33.7
Personal care products
26.4
Services
16.9
Wellness products
16.5
Leisure/ educational
products
6.5
Place of Sales
% of Industry
In the home
64.4
Over the phone
14.7
In a workplace
8.7
Over the Internet
5.5
Other
6.7
 Project
a retail presence
 Enhance image
 Generate sales
 Reach geographically-dispersed
customers
 Provide information to customers
 Promote new products
 Demonstrate new product benefits
 Provide
customer service (e.g., e-mail)
 Be more “personal” with consumers
 Conduct a retail business efficiently
 Obtain customer feedback
 Promote special offers
 Describe employment opportunities
 Present information to potential
investors, franchisees, and the media
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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Using the Web
◦ information
◦ entertainment
◦ interactive
communications
Shopping Online
◦ selection
◦ prices
◦ convenience
◦ fun
Trust
Fear
Lack of security
Lack of personal communication
 Develop
or exploit a well-known,
trustworthy retailer name
 Tailor the product assortment for Web
shoppers
 Enable the shopper to click as little as
possible
 Provide a solid search engine
 Use customer information
 Large
group of prospective shoppers
 Captive audience
 Strong sales per square foot of retail
space
 Strong sales of gift and travel items
 Difficulty in replenishment
 Longer operating hours
 Duty-free shopping possible