Kulachatr Chatrakul Na Ayudhaya 1 Chapter XII Retailing Business in the modern wold (Digital Economy) By Aj-Kulachatr Chatrakul Na Ayudhaya Marketing Department

Kulachatr Chatrakul Na Ayudhaya

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Chapter Chapter XIIXIIRetailing BusinessRetailing Businessin the modern woldin the modern wold(Digital Economy)(Digital Economy)

By

Aj-Kulachatr Chatrakul Na Ayudhaya

Marketing Department

Business Administration Faculty

Payap University Chiang-Mai Thailand


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Chapter Chapter XIIXIIRetailing in Digital economyRetailing in Digital economy

What happens in the world?What happens in the world?

“Network revolution and Internet

Change the rule of retail.”

1.High creation in retail2.High competition in retail

3.Differentiation leadership

4.Automatically , Digital , Information Tech., Telecommunication


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Types of Retailing Business nowTypes of Retailing Business now

Stored - Based Retailing

Non-Stored Retailing

Modern WorldModern World


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Types of Retailing Business : Types of Retailing Business : Store-BasedStore-Based

Stored - Based Retailing

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.

- Grocery store -Min- - i mart Category Kil

- ler specialty store- Convenience store- - -G Store Depart

- -ment store Hyper - mart Discount sto

- re Shopping Mall


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Types of Retailing Business : Types of Retailing Business : Non-storeNon-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”

• Mobile Retailing

• Automatic Vending

• Direct Marketing

E-Retailing

Online Retailing

“E-Commerce”


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Types of Retailing Business : Types of Retailing Business : Non-storeNon-store

Catalog / Direct-mail

Retailer

Direct-selling

Retailer

TV home shoppingRetailer

ElectronicRetailer

Print , mail Mail ,

TelephoneSalespeople , Face-Face

TelevisionTelephone ,

MailInteractive electronic system


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Chapter Chapter XIIXIIRetailing in Digital economyRetailing in Digital economy Non store Retailing : Non store Retailing : Total SalesTotal Sales

Sales by Nonstore format-2000 total $262 million

71%

9%

9%

9%2%

Catalog & Direct mail

Electronic Retailing

Vending Machine

Direct Selling

TV home Shopping


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Chapter Chapter XIIXIIRetailing in Digital economyRetailing in Digital economy Non store Retailing : Non store Retailing : Total SalesTotal Sales

Sales by Nonstore format-2003 Total $444 million

55%32%

6%

6% 1%

Catalog & Direct mail

Electronic Retailing

Vending Machine

Direct Selling

TV home Shopping


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Non store Retailing : Non store Retailing : Automatic VendingAutomatic Vending

Cold Drink Machine

Hot Drink Machine

Snack Machine

Automatic Water

Machine


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Non store Retailing : Non store Retailing : Automatic VendingAutomatic Vending

Laundry Machine

Servicing the

machine

Automatic Car-washing Machine & e-Coin payment


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Non store RetailingNon store Retailing : : Direct MarketingDirect 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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Non store RetailingNon store Retailing : : Direct MarketingDirect 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-Consignment…etc


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Chapter Chapter XIIXIIRetailing in Digital economyRetailing in Digital economy Non store RetailingNon store Retailing : : e-retailinge-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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• Critical Success factor ;CSF– Consumer behavior– Data Communication Technology– Consumer’s occasion to use a

computer– Efficiency of delivery system


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• 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 can’t go out to shopping ; Elder,patient


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• 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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• Critical Success factor ;CSF– Consumer’s 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 Chapter XIIXIIRetailing in Digital economyRetailing in Digital economy Non store RetailingNon store Retailing : : Shop-onlineShop-online

• Benefit of shopping online business– Consumer’s

• High number of alternative• Ordering and getting merchandise• Safety• Providing information to evaluate

merchandise• Comparison of price competition.

– Entrepreneur’s


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Chapter Chapter XIIXIIRetailing in Digital economyRetailing in Digital economy Non store RetailingNon store Retailing : : Shop-onlineShop-online

• Benefit of shopping online business – Entrepreneur’s

• Reduce cost of merchandise– Cost of investment in store front ; Land Rent – Cost of management ; HRM , stocking …etc

• Getting high of customer’s information– Customer’s database management

• Easy to change merchandise– Daily up to date web-site– Everyday new information


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Non store RetailingNon store Retailing : Customer Database Management: 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 bu

y– Data processing to planning the marketing strategy


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Non store RetailingNon store Retailing : Customer Database Management: Customer Database Management

• Competitive advantage in use of internet– Data processing to planning the marketing strat

egy• 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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Non store RetailingNon store Retailing : : Web-site Management;e-commerce StrategyWeb-site Management;e-commerce Strategy

• - e commerce strategy ; – SWOT analysis ; Porter’s Industrial analysis

– Porter’s 3 generic model of strategy– Efficient consumer response ; ECR

• - e Shopping mall• -e Logistics• -e Payment

– - PR t he web si t e on nor mal medi a


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Non store RetailingNon store Retailing : : Web-site Management;e-commerce StrategyWeb-site Management;e-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 Chapter XIXIInformation Technology in RetailiInformation Technology in Retaili

ng Business : ng Business : Q&AQ&A

Q&A


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Documents

Kulachatr Chatrakul Na Ayudhaya 1 Chapter XII Retailing Business in the modern wold (Digital Economy) By Aj-Kulachatr Chatrakul Na Ayudhaya Marketing Department