Chapter XII Retailing Business in the modern wold (Digital Economy)

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Chapter XIIRetailing Businessin the modern
wold(Digital Economy)

• By
• Aj-Kulachatr Chatrakul Na Ayudhaya
• Marketing Department
• Business Administration Faculty
• Payap University Chiang-Mai Thailand

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Chapter XIIRetailing in Digital economy

• What happens in the world?
• Network revolution and Internet
• Change the rule of retail.
• 1.High creation in retail
• 2.High competition in retail
• 3.Differentiation leadership
• 4.Automatically , Digital , Information Tech.,
  Telecommunication

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Chapter XIIRetailing in Digital economy

• Types of Retailing Business now

Non-Stored Retailing
Modern World
Stored - Based Retailing
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Chapter XIIRetailing in Digital economy Types
of Retailing Business Store-Based
- Grocery store -Mini-mart -Category Killer
-specialty store -Convenience store -G-Store
-Department store -Hyper-mart -Discount store
-Shopping Mall
The most basic characteristic of a retailing.
There is building material and hardware that
located on the potential site via people to buy
the product in store. So they are often called
Brick and brick or brick and mortar.
Stored - Based Retailing
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Chapter XIIRetailing in Digital economy Types
of Retailing Business Non-store
Non-store Retailing
Is a form of retailing in which sales
are made to consumers without using stores. The
various types of non-store retailers are defined
in term of the medium they use to communicate
with their customers. Sometime they are called
Brick and click or Click and mortar
E-Retailing Online Retailing E-Commerce

• Mobile Retailing
• Automatic Vending
• Direct Marketing

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Chapter XIIRetailing in Digital economy Types
of Retailing Business Non-store
Print , mail
Catalog / Direct-mail Retailer
Mail , Telephone
Direct-selling Retailer
Salespeople , Face-Face
Television
TV home shopping Retailer
Telephone , Mail
Electronic Retailer
Interactive electronic system
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Chapter XIIRetailing in Digital economy Non
store Retailing Total Sales
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Chapter XIIRetailing in Digital economy Non
store Retailing Total Sales
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Chapter XIIRetailing in Digital economy Non
store Retailing Automatic Vending
Automatic Water Machine
Cold Drink Machine
Hot Drink Machine
Snack Machine
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Chapter XIIRetailing in Digital economy Non
store Retailing Automatic Vending
Servicing the machine
Automatic Car-washing Machine e-Coin payment
Laundry Machine
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Chapter XIIRetailing in Digital economy Non
store Retailing Direct Marketing

• Characteristics
• B to C business that direct to individual person.
• suitable for suburb , difficult to purchase
  thing.
• No time to spending shopping.
• Consumer need more and more information for
  decision to buy.
• Products could be demonstrated and specialty
  purpose.
• Cheer up and make customer willing to buy.

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Chapter XIIRetailing in Digital economy Non
store Retailing Direct Marketing

• Kinds of Direct marketing in retailing
• Catalog Retailing Dummy company
• Direct Mail Retailing
• Telephone Selling
• Direct Selling
• Internet Use for retailing e-Mail , Chat room ,
  Web-board , Auction online , e-Consignmentetc

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Chapter XIIRetailing in Digital economy Non
store Retailing e-retailing

• Means
• e-Business , e-Marketing
• Electronic Retailing e-Retailing
• Internet Retailing
• Online-retailing
• Electronic Commerce e-Commerce
• Web-based communication on internet
• e-Shopping , e-Payment , Delivery to home service
• Interactive electronic network by Chat-room or
  voice
• Multimedia Computer based , Mobile based ,
  TV-based

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Chapter XIIRetailing in Digital economy Non
store Retailing e-retailing

• Critical Success factor CSF
• Consumer behavior
• Data Communication Technology
• Consumers occasion to use a computer
• Efficiency of delivery system

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Chapter XIIRetailing in Digital economy Non
store Retailing e-retailing

• Critical Success factor CSF
• Consumer behavior
• His/her behavior based on Catalog shopping.
• People who have not enough time to shopping.
• People who have not enough time for decision
  making.
• People who need information before purchasing.
• People who must compare quality and price of
  products before willing to buy.
• Willing to buy by him or herself.
• People who cant go out to shopping
  Elder,patient

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Chapter XIIRetailing in Digital economy Non
store Retailing e-retailing

• Critical Success factor CSF
• Data Communication Technology
• Band width Widely
• Efficiency of hardware Computer,Modem,Server
• Networks LAN , Wireless LAN , Internet service
  provider
• Line Leads-line , Digital network ISDN , ADSL
• Quality web-site First impression , Clear ,
  Fast , High benefit content , Good update ,
  Confidential
• e-Payment Convenience , Safe Clear ,
  Confidential

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Chapter XIIRetailing in Digital economy Non
store Retailing e-retailing

• Critical Success factor CSF
• Consumers occasion to use a computer
• New era Consumer Techno-sumer
• Children and Teens
• Elder
• Patients
• Efficiency of delivery system
• Case Pizza company , 7-catalog

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Chapter XIIRetailing in Digital economy Non
store Retailing Shop-online

• Benefit of shopping online business
• Consumers
• High number of alternative
• Ordering and getting merchandise
• Safety
• Providing information to evaluate merchandise
• Comparison of price competition.
• Entrepreneurs

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Chapter XIIRetailing in Digital economy Non
store Retailing Shop-online

• Benefit of shopping online business
• Entrepreneurs
• Reduce cost of merchandise
• Cost of investment in store front Land Rent
• Cost of management HRM , stocking etc
• Getting high of customers information
• Customers database management
• Easy to change merchandise
• Daily up to date web-site
• Everyday new information

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Chapter XIIRetailing in Digital economy Non
store Retailing Customer Database Management

• Competitive advantage in use of internet
• getting the high value premium from e-retailing
• Automation of customer data capturing
• name, address, sex, age, education, salary
• telephone mobile number , e-mail number
• consumer behavior,
• purchasing volume per period of time
• ranking of product that customer willing to buy
• Data processing to planning the marketing strategy

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Chapter XIIRetailing in Digital economy Non
store Retailing Customer Database Management

• Competitive advantage in use of internet
• Data processing to planning the marketing
  strategy
• Classifying the customer to segment the target
  group
• Easy to following the customer
• Convenience for after sale service
• Follow up the customer satisfaction
• FAQ (Frequency of Ask Question)

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Chapter XIIRetailing in Digital economy Non
store Retailing Web-site Managemente-commerce
Strategy

• e-commerce strategy
• SWOT analysis Porters Industrial analysis
• Porters 3 generic model of strategy
• Efficient consumer response ECR
• e-Shopping mall
• e-Logistics
• e-Payment
• PR the web-site on normal media

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Chapter XIIRetailing in Digital economy Non
store Retailing Web-site Managemente-commerce
Strategy

• e-commerce strategy Consideration
• Up loading web site to the internet network
• Set up the domain name
• Selection of Hosting or web server or IP address
• ISP Servicing , speed and cost of management
• Maintenance the web-site
• Updating the merchandise and new information
• Maintain the customer
• Follow up the competitors

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Chapter XIInformation Technology in Retailing
Business QA
QA
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