Page 147 - Electronic Commerce

Chapter 3

Companies find that having several marketing channels lets them reach more
customers at less cost. For example, it is expensive to stock a large number of different
items in a physical store, so a company such as Best Buy will stock the most popular
items in its stores but will sell a wider variety of items (including those that are not in
122
high demand at every one of its retail locations) on its Web site. Customers who want to
have physical contact with a product (putting fingers on a laptop computer’s keyboard, for
example) before buying can visit the retail location. A customer who wants a high-end and
expensive home theater system can find it on the Web site. By having two marketing
channels (retail store and Web site), Best Buy reaches more customers and offers more
products than it could by using either channel alone. Like many other retailers, Home
Depot encourages online sales by offering an option to have online orders shipped free to a
nearby physical store location for the customer to pick up. This is an especially attractive
option for large or heavy items.
Some retailers, such as Talbots, combine the benefits of these two marketing channels
by offering in-store online ordering. This allows customers to examine a product in the
store, and then find their exact size or the color they like by placing an order on the
retailer’s Web site from the store.
Similarly, a retailer that mails print catalogs might include a product’s general
description and photo in the catalog, but refer customers to the retailer’s Web site for
detailed specifications or more information about the product. Mailed catalogs (or
newspaper advertising inserts) continue to be an effective marketing tool because they
inform customers of products they might not otherwise know about. The catalog arrives in
the mail (or the newspaper insert arrives with the newspaper) to inform them. In contrast,
a Web site only delivers the marketing message if the customer visits the Web site.
Using multiple marketing channels to reach the same set of customers can be an
effective strategy for retailers. Figure 3-1 shows two examples (there are many other
possibilities) of how retailers might combine two marketing channels.

Copyright 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.