Learning Objecuves Learning Objective 3-1 Understand the channels used by retailers. Learning Objective 3-2 Compare the relative strengths of the major retail channels: stores; Internet, mobile, and social; and catalog and other nonstore channels. Learning Objective 3-3 Describe the opportunities associated with a true omnichannel strategy. Learning Objective 3-4 Analyze the challenges facing multichannel and omnichannel retailers.Selaniy-areliie aE a eS SS wes = pte Ta ler To Raat global cierto) report i Se Cac ttn mace af) mM CMMs ise lal CeTa SumRelative Strengths of Retail Channels Touch and smell of products Personal service Risk reduction Immediate gratification Entertainment and social experience Browsing Cash payment base eg Mobile Retailing + Anywhere . access + Location sensitive Deeper and broader selection + Biggest More information for evaluating merchandise disadvantage - Personalization smaller viewing Expanded matiet presence screen Information to improve shopping experience across channelsLIP Na MSAK AMO) MCLE OULU e Hyderabad per — Mobile Retailing + Anywhere access + Location sensitive Touch and smell of products Deeper and broader selection . Biggest Personal service More information for evaluating merchandise disadvantage - Risk reduction Personalization smaller viewing Immediate gratification Expanded market presence screen Entertainment and social experience Information to improve shopping experience across channels. Browsing Cash paymentke E-commerce encompasses the entire world of electronically based organizational activities that support a firm's Institute of ‘Management Technology anes Kowa Beseses ecco Hyderabad market exchanges—including a firm’s entire information system's infrastructure. Ubiquity- available just about everywhere, at alltimes. Global reach Universal standards- The universal technical standards of the Internet and e-commerce greatly lowers the market entry costs for the businessman and the search cost for the customers 4, Interactivity- enable two-way communication between merchant and consumer. 5. Information density- increase greatly the ess of information— currency, accuracy, and tim n- more useful and important making inform: than ever. 6. Person: message to a person’s name, interests, and past purchases. ization or customization- adjusting theE commerce Business Models Q vos taunp bane Hares Kone fr Buses Business-to-business- Eg Alibaba- global wholesale marketplace connecting buyers and sellers Business-to-consumer- E.g.Amazon, Flipkart Consumer-to-consumer- marketplace -E.g, OLX, Quickr ‘Consumer-to-business ~ Eg. Policy bazaar Government-to-business- Eg. Central public procurement portal Government-to-citizen- Auction of vehicles, machinery or registration of birth/death Inventory Model- ecommerce player owns the inventoryInstitute of E commerce Business Models —cene eee Hyderabad Aggregator Model- information on goods/service on single platform. E.g. Ola cab, Makemytrip Brokerage Model- market makers bring buyers sellers together 2) Marcetplace exchange- fll range of services covering transaction process, market assessment, negotiation & filment b) Buy or sell fulfilment — takes customer orders to buy/sell a product/service. ©) Auction broker- auction for sellers( individual/merchants)- Eg. Ebay 4) Transaction broker: 3rs party payment mechanism- E.g. Paypal Billldesk Click and Collect Service — order online and pick form predetermined destination. Eg. Amazon and BPCL tie-up( In & Gut)- order on amazon, select pickup location, customer intimidated when goods reach the pickup by customer Marketplace and Pick-Up and Drop- sellers partner with leading marketplaces, limited say on pricing and customer experience. Eg, Flipkart, SnapdealE commerce Business Models Merchant Model * Virtual merchant or e-tailer- operates solely on web + Catalogue merchant- mail-order business(mail/telephone) + Click and mortar- brick and mortar stores website ( e.g. Walmart) Manufacturer Model — reach buyers directly to compress distribution channel- E.g. Dell Community Model- based on user loyalty + Open source — software developed collaboratively(RedHat) + Open content - Content developed collaboratively (Wikipedia) * Social networking services- contextual advertising and subscriptions(Facebook)E commerce Business Models ee Nvdersbod Private Label- ecommerce company selling its own brand of goods Flash Sales Tactics- limited time offers-Groupon & LivinSocial — US, Snapdeal Savings day, Amazon Appiness Day(for app only) Advertising revenue model e.g., Yahoo.com Subscription revenue model e.g,, Flintobox Transaction fee model e.g., eBay Sales revenue model e.g.,AmazonThe “Connected Store”- Magic mirror- Mirrortech Amirror with an interactive touch screen allows the consumer to see the latest content from the brand.Institute of Multichannel vs Omnichannel O) |S snuaion eooce Hyderabad MULTICHANNEL vs OMNI-CHANNELMultichannel vs Omnichannel |e nce e g ee Hyderabad Jon just started working as a Marketing Coordinator for a small and rising marketing firm.8 Multichannel vs Omnichannel = eeee Multichannel Marketing is the blending of different distribution and promotional channels for the purpose of Marketing,Omni-Channel similar to multi-channel, but seeks to provide the customer with a seamless shopping experience.Multichannel vs Omnichannel 2 {eno eee ao TasOmnichannel marketing allowed Jane to start her customer journey through one platform and end it through another creating one seamless experience.Multichannel vs Omnichannel BENEFITS... L.Integrated Communication and Analytics 5. Integrate Your Business 2. Meet Customers Where They Are 6. Channel Communication Management 3. Obtain Data from Every Transaction. 7. Experience and Service Focused Shopping 4. Target Specific Audiences =.Social Retailing + S-reti ig involves conducting purchase transactions through social media sites * Twitter, Pinterest, Instagram have “buy buttons’ = Travel in style. Institute of ‘Management Technology uresog Row Bees ecco HyderabadEnabling Technologies Cloud Mobile applications Digital advertisements Search engine optimization (SEO) Analytics - CRM, ERP, POS data Payment options and gateway- COD, cashback & EMI (debit/credit card), mobile wallet(Paytm, Freecharge), CCAvenue-popular Social mediaEnabling Technologies e e Hyderabad Cloud Mobile applications Digital advertisements Search engine optimization (SEO) Analytics — CRM, ERP, POS data Payment options and gateway- COD, cashback & EMI (debit/credit card), mobile wallet(Paytrp, Freecharge), CCAvenue-popular Social mediaSecurity Essential requirements for safe e-payments or transactions: Confidentiality Integrity- no alteration of information Availability- whenever needed with specified time limit Authenticity- mechanism to authenticate user before giving information Non-reputability- denial of order or payment Encryption — only by authorised user Auditability — can be audited for integrity requirementsMultiple channels to build competitive advantage Consumers want to be recognized Retailer must facilitate finding, picking-up merchandise Various channels need to be consistent Retailers can use channels to stimulate store visits Multichannel and omnichannel retailers can use their shopping bags to promote their website.Multiple channels to build competitive advantage Consumers want to be recognized Retailer must facilitate finding, picking-up merchandise Various channels need to be consistent Retailers can use channels to stimulate store visits shopping bags to promote their websiteChallenges Facing Multichannel and COT Tee U Umea Multichannel and Omnichannel Supply Chains and Information Systems + Struggle to provide an integrated experience Consistent Brand Image across Channels + All channels should present a consistent image and each channel reinforces the image Merchandise Assortment + Internet channel offers broader, deeper merchandise assortment + Store channel better suited for “‘touch-and-feel” products Pricing + Retailers adjust prices based on competition in different channels Channel Migration- customers search for information from a retailer's channel, then purchase in a different channel maintained by a competitorChallenges Facing Multichannel and “ [soc no COT rT oir Ure (olay e Multichannel and Omnichannel Supply Chains and Information Systems * Struggle to provide an integrated experience Consistent Brand Image across Channels + All channels should present a consistent image and each channel reinforces the image Merchandise Assortment + Internet channel offers broader, deeper merchandise assortment + Store channel better suited for “touch-and-feel” products Pricing + Retailers adjust prices based on competition in different channels Channel Migration- customers search for information from a retailer's channel, then purchase in a different channel maintained by a competitorEET) FREE Two-Day Shipping Plus movies, music, and more amazon ec0o5oNew trends Experience MARKETING