Terms in this set (76)In reality, it is the retailer's supply chain, rather than its outlet, that competes against other retailers. If the retailer ignores the supply chain in order to maximize short-run profits, then in the long run the chain will work against the retailer. If the supply chain overlooks the retailer, then profits sufficient for survival and growth will vanish. In learning to work within the supply chain, the retailer needs to recognize the eight marketing functions necessary in all marketing channels: buying, selling, storing, transporting, sorting, financing, information gathering, and risk taking. The retailer can seldom perform all eight functions and therefore must rely on other primary and facilitating instituions in the supply chain. Although marketing functions occur throughout the supply chain, they can be shifted or divided in different ways among the institutions in the marketing supply chain. Supply chains can be arranged by length, width, and control. Length is concerned with the number of primary marketing institutions in the chain. The supply chain or channel is said to be direct if it involves only the manufacturer and the consumer. An indirect channel adds either a retailer, a wholesaler, or both. The Channel's width measures the number of retailers or wholesalers handling the product in a given trading area. Control looks at the two primary marketing channel patterns - conventional and vertical. A conventional marketing channel is one in which each member of the supply chain is loosely aligned with the others, each member recognizing only those it directly interacts with and ignoring the others. In vertical marketing, all parties in the supply chain recognize each other and one member programs the supply chain to achieve technological, managerial, and promotional economies. The three types of vertical marketing channels are corporate, contractual, and administered. Students also viewedSets found in the same folderOther sets by this creatorRecommended textbook solutions
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Information Technology Project Management: Providing Measurable Organizational Value5th EditionJack T. Marchewka 346 solutions What Is Electronic Retailing (E-tailing)?Electronic retailing (E-tailing) is the sale of goods and services through the internet. E-tailing can include business-to-business (B2B) and business-to-consumer (B2C) sales of products and services. E-tailing requires companies to tailor their business models to capture internet sales, which can include building out distribution channels such as warehouses, internet webpages, and product shipping centers. Notably, strong distribution channels are critical to electronic retailing as these are the avenues that move the product to the customer. Key Takeaways
How Electronic Retailing (E-tailing) WorksElectronic retailing includes a broad range of companies and industries. However, there are similarities between most e-tailing companies that include an engaging website, online marketing strategy, efficient distribution of products or services, and customer data analytics. Successful e-tailing requires strong branding. Websites must be engaging, easily navigable, and regularly updated to meet consumers' changing demands. Products and services need to stand out from competitors' offerings and add value to consumers' lives. Also, a company's offerings must be competitively priced so that consumers do not favor one business over another just for price reasons. E-tailers need distribution networks that are prompt and efficient. Consumers cannot wait for long periods for the delivery of products or services. Transparency in business practices is also important, so consumers trust and stay loyal to a company. There are many ways companies can earn revenue online. Of course, the first income source is through the sales of their product to consumers or businesses. Both B2C and B2B companies can earn revenue by selling their services through a subscription-based model such as Netflix (NFLX), which charges a monthly fee for access to media content. Revenue can also be earned through online advertising. For example, Meta (META), formerly Facebook Inc., earns money mainly from ads placed on its Facebook website by companies looking to sell to the millions who are "on Facebook," regularly checking their pages. Types of Electronic Retailing (E-tailing)Business-to-Consumer (B2C) E-TailingBusiness-to-consumer retailing is the most common of all e-commerce companies and the most familiar to most Internet users. This group of retailers includes companies selling finished goods or products to consumers online directly through their websites. The products could be shipped and delivered from the company's warehouse or directly from the manufacturer. One of the primary requirements of a successful B2C retailer is maintaining good customer relations. Business-to-Business (B2B) E-tailingBusiness-to-business retailing involves companies that sell to other companies. Such retailers include consultants, software developers, freelancers, and wholesalers. Wholesalers sell their products in bulk from their manufacturing plants to businesses. These businesses, in turn, sell those products to consumers. In other words, a B2B company such as a wholesaler might sell products to a B2C company. Advantages and Disadvantages of Electronic Retailing (E-tailing)E-tailing includes more than just e-commerce-only companies. More and more traditional brick-and-mortar stores are investing in e-tailing. Infrastructure costs are lower with electronic retailing versus operating brick-and-mortar stores. Companies can move products faster and reach a larger customer base online than with traditional physical locations. E-tailing also allows companies to close unprofitable stores and maintain the profitable ones. Automated sales and checkout cut down on the need for staff and sales personnel. Also, websites cost less than physical stores to open, staff, and maintain. E-tailing reduces advertising and marketing expenses as customers can find the stores through search engines or social media. Data analytics is like gold for e-tailers. Consumer shopping behavior can be tracked to determine spending habits, page views, and length of engagement with a product, service, or website page. Effective data analytics can decrease lost sales and boost client engagement, which can lead to increased revenue. There are disadvantages to running an e-tailing operation, though. Creating and maintaining an e-tailing website, while less expensive than a traditional retail location, can be expensive. Infrastructure costs can be substantial if warehouses and distribution centers need to be built to store and ship the products. Also, adequate resources are necessary to handle online returns and customer disputes. Also, e-tailing does not provide the immersive, emotional experience that physical stores can offer. E-tailing does not give the consumer a chance to smell, feel, or try on products before purchasing them—sensory experiences that often result in a decision to buy; browsing is also more pleasurable in person, and lends to increased spending. Personalized customer service and interaction can also be an advantage to brick-and-mortar stores. Real World Examples of E-TailingAmazon.com (AMZN) is the world's largest online retailer, providing consumer products and subscriptions through its website. Amazon's website shows the company generated more than $280 billion in revenue in 2019 while posting more than $11.6 billion in profit or net income. Other e-tailers that operate exclusively online and compete with Amazon include Overstock.com and JD.com. Alibaba Group (BABA) is China's largest e-tailer, which operates an online commerce business throughout China and internationally. Alibaba has adopted a business model that not only includes both B2C and B2B commerce, but it also connects Chinese exporters to companies around the world looking to buy their products. The company's rural Taobao program helps rural consumers and companies in China sell agricultural products to those living in urban areas. For the fiscal year 2020, Alibaba generated nearly $72 billion in annual revenue while posting just under $19.8 billion in profit. Is retailing there is a direct interaction with?Producer:Retailers, like Walmart and Target, buy the product from the manufacturer and sell them directly to the consumer. This channel works best for manufacturers that produce shopping goods like clothes, shoes, furniture, tableware, and toys.
What does direct retail mean?a form of retailing in which goods and services are sold door-to-door, office-to-office or at home parties rather than from stores in particular locations; Avon and Mary Kay Cosmetics are companies that use this approach.
What is the concept of retailing?retailing, the selling of merchandise and certain services to consumers. It ordinarily involves the selling of individual units or small lots to large numbers of customers by a business set up for that specific purpose.
What is the chain in retail management?Retail Supply Chain Management is the process of managing the entire supply chain of retail organisations. The differentiating factor of retail supply chain management from other supply chain management is in the volume of product movement and the fast moving nature of the products of the retail industry.
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