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Chapter XII Retailing Business in the modern wold (Digital Economy). By Aj-Kulachatr Chatrakul Na Ayudhaya Marketing Department Business Administration Faculty Payap University Chiang-Mai Thailand. Chapter XII Retailing in Digital economy. What happens in the world?

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chapter xii retailing business in the modern wold digital economy

Chapter XIIRetailing Businessin the modern wold(Digital Economy)

By

Aj-Kulachatr Chatrakul Na Ayudhaya

Marketing Department

Business Administration Faculty

Payap University Chiang-Mai Thailand

Kulachatr Chatrakul Na Ayudhaya

chapter xii retailing in digital economy
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

Kulachatr Chatrakul Na Ayudhaya

chapter xii retailing in digital economy1
Chapter XIIRetailing in Digital economy

Types of Retailing Business now

Non-Stored Retailing

Modern World

Stored - Based Retailing

Kulachatr Chatrakul Na Ayudhaya

chapter xii retailing in digital economy types of retailing business store based
Chapter XIIRetailing in Digital economyTypes 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

Kulachatr Chatrakul Na Ayudhaya

chapter xii retailing in digital economy types of retailing business non store
Chapter XIIRetailing in Digital economyTypes 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

Kulachatr Chatrakul Na Ayudhaya

chapter xii retailing in digital economy types of retailing business non store1
Chapter XIIRetailing in Digital economyTypes 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

Interactive electronic system

Electronic

Retailer

Kulachatr Chatrakul Na Ayudhaya

chapter xii retailing in digital economy non store retailing total sales
Chapter XIIRetailing in Digital economyNon store Retailing : Total Sales

Kulachatr Chatrakul Na Ayudhaya

chapter xii retailing in digital economy non store retailing total sales1
Chapter XIIRetailing in Digital economyNon store Retailing : Total Sales

Kulachatr Chatrakul Na Ayudhaya

chapter xii retailing in digital economy non store retailing automatic vending
Chapter XIIRetailing in Digital economyNon store Retailing : Automatic Vending

Automatic Water Machine

Cold Drink Machine

Hot Drink Machine

Snack Machine

Kulachatr Chatrakul Na Ayudhaya

chapter xii retailing in digital economy non store retailing automatic vending1
Chapter XIIRetailing in Digital economyNon store Retailing : Automatic Vending

Servicing the machine

Automatic Car-washing Machine & e-Coin payment

Laundry Machine

Kulachatr Chatrakul Na Ayudhaya

chapter xii retailing in digital economy non store retailing direct marketing
Chapter XIIRetailing in Digital economyNon 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.

Kulachatr Chatrakul Na Ayudhaya

chapter xii retailing in digital economy non store retailing direct marketing1
Chapter XIIRetailing in Digital economyNon 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-Consignment…etc

Kulachatr Chatrakul Na Ayudhaya

chapter xii retailing in digital economy non store retailing e retailing
Chapter XIIRetailing in Digital economyNon 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

Kulachatr Chatrakul Na Ayudhaya

chapter xii retailing in digital economy non store retailing e retailing1
Chapter XIIRetailing in Digital economyNon store Retailing : e-retailing
  • Critical Success factor ;CSF
    • Consumer behavior
    • Data Communication Technology
    • Consumer’s occasion to use a computer
    • Efficiency of delivery system

Kulachatr Chatrakul Na Ayudhaya

chapter xii retailing in digital economy non store retailing e retailing2
Chapter XIIRetailing in Digital economyNon 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 productsbefore willing to buy.
      • Willing to buy by him or herself.
      • People who can’t go out to shopping ; Elder,patient

Kulachatr Chatrakul Na Ayudhaya

chapter xii retailing in digital economy non store retailing e retailing3
Chapter XIIRetailing in Digital economyNon 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

Kulachatr Chatrakul Na Ayudhaya

chapter xii retailing in digital economy non store retailing e retailing4
Chapter XIIRetailing in Digital economyNon store Retailing : e-retailing
  • 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

Kulachatr Chatrakul Na Ayudhaya

chapter xii retailing in digital economy non store retailing shop online
Chapter XIIRetailing in Digital economyNon store Retailing : Shop-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

Kulachatr Chatrakul Na Ayudhaya

chapter xii retailing in digital economy non store retailing shop online1
Chapter XIIRetailing in Digital economyNon store Retailing : Shop-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

Kulachatr Chatrakul Na Ayudhaya

chapter xii retailing in digital economy non store retailing customer database management
Chapter XIIRetailing in Digital economyNon 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

Kulachatr Chatrakul Na Ayudhaya

chapter xii retailing in digital economy non store retailing customer database management1
Chapter XIIRetailing in Digital economyNon 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)

Kulachatr Chatrakul Na Ayudhaya

slide22
Chapter XIIRetailing in Digital economyNon store Retailing: Web-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 the web-site on normal media

Kulachatr Chatrakul Na Ayudhaya

slide23
Chapter XIIRetailing in Digital economyNon store Retailing: Web-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

Kulachatr Chatrakul Na Ayudhaya