Multi Channel Marketing
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Multi-channel marketing allows retailers to reach customers through multiple sales channels. The document discusses various retail channels including internet, catalog, direct selling, television home shopping, and automated retailing. It also covers the benefits of using a multi-channel approach, such as overcoming limitations of individual channels, increasing customer satisfaction and loyalty, and gaining insights into customer shopping behavior. Some challenges of effective multi-channel retailing mentioned are providing an integrated shopping experience, managing different distribution needs and information systems, and reducing channel migration.
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Multi Channel Marketing
- 1. Multi-Channel Marketing The way to better reach and satisfy your customer base.
- 2. Retail Channels The way the retailer sells and delivers merchandise and services to its customers Internet Channel Catalog Channel store internet catalog direct selling TV home shopping Automatic 89.89% Direct Selling Television Home Shopping Automated Retailing 0.90% 4.70% 0.50% 0.90% 3.10%
- 3. Internet Retailing AKA Online retailing Electronic retailing E-Retailing Retail channel in which the offering of products and/or services for sale is communicated to customers over the internet. Retailers using this channel dominate
- 4. Internet Channel Info. Facts Accounts for 10% of retail sales ¼ Look up Basic information about stores 22% research merchandise 21% compare prices 21% download coupons for use in stores
- 5. Catalog Channel Non store retail channel in which the retail offering is communicated to customers through catalogs each year. Main products sold through catalogs Beauty products Drugs Computers and software Clothing and accessories Furniture Books and magazines Music
- 6. Catalog Channel Info. 1.3% of catalogs result in a direct sale 3% of 80 million tons of paper used to produce. More than magazines or books. View by many as a waste of resources Declining Role in market share changing to drive traffic to the internet
- 7. Direct Selling A retail channel in which sales people interact with the consumers face-to-face in a convenient location, either at the consumers home or at work. Sales person explains FAB of product to consumer Very costly to train and maintain information on products
- 8. Direct Selling Info. $30 billion US; $100 billion World Wide Two types of Direct selling Party Plan system – Throw a party to sell products Multilevel system – Independent business people recruit other people to become distributers under them Watch out for pyramid schemes
- 9. Direct selling Info Almost all 14 million people working in direct selling are independent agent. Largest Categories Personal care Home and family Wellness Leisure Educational items
- 10. Television Home Shopping A retail channel in which consumers watch a television program that demonstrates Merchandise and then places orders, usually by phone internet or the TV remote
- 11. TV Home Shopping Info. Infomercials - are programs dedicated that mix entertainment with product demonstrations then solicit orders place by phone. 30 to 60 mins Direct response advertising – one or two min advertisements on TV or radio offering opportunity to order.
- 12. TV Channel Info Cont. Top Retailers HSN QVC Shop NBC Jewelry Television Majority of viewers who actually watch don’t do it regularly nor actually purchase products or services
- 13. Automated Retailing Is a retailing channel in which merchandise or services are stored in a machine and dispensed to customers when they deposit cash or use credit. Vending machines are typically placed in convenient , high-traffic locations such as workplaces, malls, airports, or universities.
- 14. Auto. Retailing Info. Airports Show case ZoomShops Sony Products Proactive Rosetta Stone Local Redbox DVD rental Soda and Candy Machines
- 15. Store Channel Benefits Touching Personal Risk and feeling service reduction Immediate gratification Entertainment and social experience Browsing Cash payment
- 16. Catalog Channel Benefits Safety Convenience Reference off coffee table Take it to the beach Internet through cell phone provides dipping into this channel
- 17. Internet Channel Benefits Broader and deeper assortments More timely information for evaluating merchandise Personalization Cookies Memberships Format information
- 18. Net Channel Benefits Cont. Side by side comparison Instant alternatives Live chats Recommendations ATG has number crunching soft ware that recognizes characteristics of times of day, gender location in consideration iShop
- 19. Net Channel Issues Loosing sales to applications that find the lowest price Perceived risk with electronic shopping Credit cards and internet concerns CC companies offer protection Potential privacy exposure Breaches kills retailers reputation Data mining and how its used or sold
- 20. Benefits of Multi Channel Retailing Overcoming format the limitations of an existing Increase assortment Low cost, consistent execution Current information Increase loyalty customer satisfaction and
- 21. Benefits of Multi Channel Retailing Cont.
- 22. Benefits of Multi Channel Retailing Cont. Gaining insight into customers shopping behavior Up-sell other products Cookies develop patterns for recommendation Expanding market presence Limited retail locations Rural market access
- 23. Benefits of Multi Channel Retailing Cont. Building priority information about consumer behavior and purchase history Conventional cant link purchases to purchases Unique “how-to” knowledge about coordinating operational activities Synergistically coordinate different channels
- 24. Other Multi-Channel Retailing Issues Which channel has the lowest cost Typically E sells Can be more expensive than a outlet Website development maintenance Advertising Distribution System Dedicated warehouses High level of returns
- 25. Other Multi-Channel Retailing Issues Will manufactures bypass retailers and sell directly Disintermediation occurs when manufacturer sells directly to consumers, bypassing retailers Why wont this happen Retailers have more experience in marking to the end consumer Provide a broader array of products Timing and matching of different manufacturer products Loss of support of retailers
- 26. Challenges of Effective Multi Channel Retailing (CEMCR) Consumers want recognition in all channels Use one channel to communicate the other channels through cross promotion Cross expenditures Warehouse at stores Returns at stores Store Pickup to save on shipping costs
- 27. Challenges of EMCR Broken Down Providing an integrated Shopping experience. Distribution center needs are different DC becomes a ware house as well Marketing plan changes Information system integration Store information system Product centric Non-store information systems Customer Centric
- 28. Challenges of EMCR Market trends Walmart started with a separate management concept when it started www.walmart.com JCPenny had everything separate when it started its on line store. Originally managed by network specialists Since has realized integration is the key Separate marketing, warehousing and promotion. Since has realized integration is the KEY! Some retailers out source for online channel management Limits competitive advantage
- 29. Challenges of EMCR Supporting M Commerce The purchase of goods and services through mobile devices Predicted to be $120 mil. 8% of e-commerce Hardware limitations ESPN has mobile specific site Store applications is a growing trend Macy’s iShop browsing of 12 departments Scrolling wheel allows fine tuning Then with two click you can have it sent to a store or your home. Also used as a promotional tool Point out clearances, sales etc. to draw business
- 30. Challenges of EMCR Organizing for Multi-Cannel Retailing Select complete integration Select different organization or each channel Same product at the same prices Same promotions and sales Allows tailoring to the specific channel Requires management of each market In selecting which to deploy must consider Customer database Consistence Brand image Pricing Merchandise assortments across channels
- 31. Challenges of EMCR Organizing for Multi-Cannel Retailing Centralized customer database Allows exploitation of consumer data to improve the shopping experience Allows better understanding of What the consumer wants Allows for seamless transition between channels Brand image Gives new media to “Brand“. Matching of brand image important Reduces consumer feeling Lost
- 32. Challenges of EMCR Organizing for Multi-Cannel Retailing Merchandise Assortment Okay to have different assortment in each channel On line typically have a deeper and broader selection Easier to carry product that doesn't have broad appeal Does your product or store need coverage of the touch and feel nature of humans? Stores Does your product or service do better in “lookand-see”? On-line
- 33. Challenges of EMCR Organizing for Multi-Cannel Retailing Pricing Competition may require pricing variance On line VS store Barn’s and Noble has lower prices to compete with Amazon Location vary pricing due to local market Oriley Auto parts varies it price to cover different shipping costs and what the market expects
- 34. Challenges of EMCR Organizing for Multi-Cannel Retailing Reduction of Channel Migration Channel migration is consumers collecting information about products on their channel then going to a competitor to make the purchase. 78 % of people will check a web site then go to a retail outlet. 8% Shop at stores then go to purchase online Two approaches to reduce Offer uniquely relevant information based on preparatory data the retailer has collected on the consumer Promote private label merchandise that can only be purchased from that retailer
- 35. Multichannel Shopping in the Future Evolve or die Retailing is ever changing and if a retailer don’t change with the times they may fall behind Chips in Store cards to alert store personnel of the nature of the consumer purchasing habits Simulators for how you would look or use the product on mobile devices Small devices in store retail associates can use to look up specifics of a products 3D picture that can be manipulated with a mouse and keyboard
- 36. KEY TERMS Automated retailing E-tailing Online retailing Catalog channels infomercials Party plan system Channel Migration Internet retailing Pyramid scheme Direct-response advertising Live chat Retail channel Direct selling M-commerce Share of customers disintermediation Multichannel retailer Television home shopping Electronic retailing Multilevel system Vending machines
- 37. Assignment 1 Retail Channels Please make a Prezi on the different retailing channels. You will want to provide Examples of each not provided in the book. Please explain why that retailer may have chosen that particular channel. Include: Internet channels Catalog channels Direct selling Television home shopping Automated retailing
- 38. Assignment 2 Benefits Offered By Each Retail channel In a Blalberize or Comics Life, please chose two retailers and compare the channels they have chosen to utilize. You will want to include: Store channel Catalog channel Internet channel The concerns related to each channel and how they may over shadow the benefits of each
- 39. Assignment 3 Benefits of Multi-Channel Retailing In Photo Peach or Prezi, create your story on the benefits of multi-channel marketing. Choose two examples of retailers; One that could benefit from adding and one that utilizes multi-channel marketing to Overcome the limitations of an existing format Increase customer Satisfaction Gain insight into consumer shopping behavior Expanding market presence Building a strategic advantage In the retailer not using multi-channel marketing, explain how it is hurting them. With the retailer using the multi-channel marketing show how they are stronger than the similar competition.
- 40. Assignment 4 Other Multi channel Retailing Issues In Prezi, or a Power Point explain what channel has the lowest cost and provide an example of a company that uses that channel. In the same Prezi or Power Point, provide an example of a retailer who has bypassed retailers and sells directly to consumers. Explain why they may have chosen to do so.
- 41. Assignment 5 Challenges of Effective Multi-Channel Retailing Interview a local business that utilizes multi-channel retailing and make a video or audio. You will want to cover how they are using multichannel retailing to intergrade the shopping experience Has M Commerce been a positive or negative effect on their business Has it created a centralized customer data base Has it effected their brand image Has their merchandise assortment grown as a result What kind of pricing effect has it had on them Have they notice a problem with channel migration how that affect them
- 42. Assignment 6 Multi-channel shopping in future Here you will want to use Photo Peach or Comics Life to provide six example of the future of multi-channel marketing and how it has altered the experience. Include things that make you say “WOW! I love how this allows me to understand the product or service more.” Since the internet is the “future. Finding those examples on-line retailers is probably the easiest.