Influence Of Multichannel Selling Strategies Towards Consumer Buying Behaviour Essay

Analyze the challenges that organizations face in the effective transition between selling products using the traditional brick and mortar marketing channel and selling products online. Synthesize the strategies that organizations like Zara and Wal-Mart- two companies that are having difficulty developing eCommerce capability can implement to increase the effortless movement of customers between the traditional and online channels.

The increasing dependence on online marketing around the world can be a challenge in keeping goods and services at a low price. A growth in populace is a nonstop link to an increase in products and services vital to withstand the population; this means that the essential products are not going to decrease but in fact increase significantly. Therefore, the marketing team must prepare its promotional strategy, it must transform the characteristics of the “4 P’s”, marketing strategy,” (place, product, price, and promotion). The products and the prices must be dependable, and the promotion of online shopping must be encouraged and with these strategies SAM’S would attract potential new consumers. Sam’s Club will target typical consumers that use

The development of the Internet and more specifically the business website has seen brand recognition by consumers escalate to never before seen heights. Because of this brand recognition, it has become important for businesses to design their websites to reflect their overall marketing strategies. This is especially important in the retail world. All retail businesses have a similar overall marketing strategy of generating sales and retaining the customer for future sales. Most of the retail giants still greatly rely on the success of their brick and mortar stores to turn a profit. However, internet sales for these brick and mortar stores have increasingly risen over the last few years to compete with the retail stores like Amazon that are strictly internet based businesses. Brick and mortar retail stores, such as Walmart, Target, Kmart, and Nordstrom, have each designed their websites to reflect the overall retail marketing strategy as well as the individual marketing strategies that have made their brick and mortar businesses successful.

Department stores Targets, Kohls, and Kmart provides the consumer with a large selection of merchandise for all ages and genders these stores use a multichannel strategy which describes how these corporations incorporate their business’s offline and online channels, this technique is also known as brick and mortar (Brown, DeHayes, Hoffer, Martin, & Perkins, 2012). The marketing scheme is to let the customer decide how they want to make a purchase a product through the store, the website which provides more information about the products, a call can be placed to a customer service representative or forms that are included in catalogs can be filled out and mailed into the store. Online shopping allows for comparison shopping to see which store

According to A.T. Kearney (2013), the result from online study of 3,200 U.S. and UK customers found that customers spend a large proportion of time inside the brick-and-mortar channel with 61%. The following channels are shopping online and mobile channel, with 31% and 4% respectively (Appendix 1). This figure means that traditional stores persist at the center of retailers’ relationships with customers, although nowadays Omnichannel as online and mobile strategy can help retailer remaining in the market. Therefore, retailers should find a solution that influence to stores and store networks to keep stores at the heart of the customer relationship while managing value across new channels. In addition, the

According to Turban and King (2003), internet technology renders retailers an additional channel for branding, transactions and customer relationship management, the adaptation of which may drive down retailers’ transaction costs, and ensuring faster and higher quality of customer interactions, resulting in enlarging the existing markets and consumer base. M&S realizes this and have tried to sell clothing via high street stores as well as via internet though they have experienced cost cutting, rationalisation and management changes in order to revive their business in recent years. Internet technology might enable sustainable competitive advantage, but problems remain on how to physically organize their online retail operations.

The expansion of Nordstrom into the United Kingdom with five showroom like brick-and-mortar locations and one fulfillment center, will generate an omnichannel approach for Nordstrom. This expansion will enhance the consumer experience for present online consumers, and promote brand recognition throughout the United Kingdom. Through delivering this omnichannel approach, it is projected that online sales will grow 20% throughout the United Kingdom, and of consumers shopping in new storefronts, their final purchase decision will by 25% higher than if they were purchasing online. Overall, affording consumers flexibility, as Nordstrom’s mission is to remain consumer focused to develop loyalty, by providing in store returns, faster shipping, and personalized customer service. Thus, translating to greater realized revenues for Nordstrom.

brd sponsorship: national (manufacturer) /private (reseller), licensing, co-branding. brd management ee – line extension en – brand extension ne – multibrands nn –new brands. brd communications experiences +touchpoints, brded entertainment.retail+wholesale upstream: raw material, downstream: marketing channels and customers. “sense-and-respond” view = demand chain. value delivery network: partners of suppliers,distributors,customers to improve system in delivering customer value. channel members value –information, promotion, contact, matching, negotiation fulfill ,physical distribution, financing, risk taking. channel lvls : direct v indirect flows: physical, ownership, payment, information, promotion. conventional dist’ channel: independents, profit-seeking vertical management system (prod, wholesale, retail as unified system) corporate: 1 owner contractual(franchise): independents joining together through contracts to obtain higher sales administered: coordinates through size of 1 power franchises: manu- or serv- spons retailer, manu-spons wholesaler horizontal ms: 2+ companies join together multichannel ds: firm sets 2+ m channels to reach 2+ cust seg disintermediation: removing intermediaries or displacement of resellers) m channel design: analyzing customer needs, setting channel obj, types+# of intermediaries (intensive, selective, exclusive), evaluating channel alt. (economic, control,

Although many brick and mortar companies may have initially debated whether to add an online e-commerce channel for fear of channel conflict with their offline retailers, agents or their own stores, most eventually added the Internet as a distribution channel after seeing how much business was generated online. Even Procter and Gamble, which used traditional physical channels for distribution exclusively for years, is selling some big brands such as Tide, Pampers and Olay online, in part to be able to examine consumer shopping habits more closely. Managing the online and offline channels has thus become a priority for many firms.

The business challenge retailers are coming to terms with is that the supply chain model was based on fulfilling consumer demands within stores (Baird & Kilcourse 2011). With the entrant of virtual technology increasing the knowledge and expectations of consumers, traditional strategies are largely missing out on consumer demands. The opportunity for the retail industry is to develop a clear pathway for consumers through the infinite channels to ensure the end result is a purchase within its stores. As studies show that 95% of all purchases by the consumer are still within a ‘bricks and mortar’ store (Baird & Kilcourse 2011).

Now web based shopping and stores have the capability to reach more consumers and entail lower startup costs (Lang, 2016). However, one of the major drawbacks on online retail is drawing in customer awareness about your business. As, online businesses involves investing in vast amounts of innovative ways in which to market your services, products, and actual website or you will lack being nonexistent to consumers because they have no real active way of knowing about you. Marketing is a highly important aspect of online retail as it vitally important to build awareness and enticement to your business as well as build customer loyalty. Moreover, marketing in its traditional capacity of manufacturer to wholesaler, to retailer still is alive and well today, however customer demands for lower costs and ease of convenience have placed an added amount of pressure on all marketing channel intervenor to account for their existence (Ferrell & Hartline, 2014). Additionally, other forms of distribution have emerged more opportunities for more direct distribution such as catalog and direct marketing, direct selling, home shopping networks, vending, and direct response advertising (Ferrell & Hartline, 2014, p. 178).

Below is the multi layered marketing approach we have decided to take to ensure maximum exposure through diversification into several target markets in which Alissa’s Artichokes aims to grow and develop. Through the implementation of the multi-layered approach Alissa’s Artichokes aims to reach a larger target audience across a range of demographics than would generally be available through a single marketing stream.

In the last six decades rapid technology advances have driven radical changes in the retail environment. Adoption of technology has created consumers that much more sophisticated than in previous generations, and raised consumer expectations when it comes to their retail experience. Technology has also increased the level of competition between retailers. No longer is a retailer only facing competition from retailers in the same geographical area. Instead, due to the growth of the internet and e-tailing retailers are competing both locally and globally. As consumers continue to adopt technology and change their shopping habits it is important that retailers adapt and how they conduct business to meet the changing needs of consumers. In the face of the increased environmental and consumer pressures on retailers it is critical that retail managers pay attention to their retail stores and ensure that they are up to standards. The retail storefront is the focus point of interaction between consumers and a business. The storefront, brick and mortar, or virtual, is the point of interface between the business and the consumer and as such, it must be configured in such a way to facilitate sales.

Guaging Customer Buying pattern: With evolution of new technology every few years, consumer adaptability to this technology determines the manner in which they buy. Due to this any one solution framed to address this customer buying pattern will not be a permanent one. Hence Omni Channel retailing needs to evolve with the changing times.

The first step to consumer decision making is problem recognition. The root cause to making a decision starts with recognizing a particular problem by a consumer. The consumer has a need or a want that should be satisfied. A consumer can recognize that his current car is not of the new standards and thus he/she is compelled to consider buying a new one.