– A product strategy is the foundation of product life-cycle and the
execution plan for further development. The product strategy allows
the business to zero in on specific target audiences and draw focus on the
product and consumer attributes.
It is also called as e-tailing or internet retailing. It is
a retail format in which products are offered to the customers through
internet. The customers can evaluate and purchase the products from their homes
or office place.
5. Electronic retailing:
This is a form of non store retailing in which the products
are stored in a machine and dispensed to the customers when they deposit cash.
Vending machines are placed at convenient and busy locations like air ports,
shopping malls, working place etc. This machine primarily contains products
like chocolates, snacks and drinks etc.
4. Automatic Vending:
It is a form of retailing in which the products are
advertised on television. Details about the product in regard to its features,
price, warranty, direction to use etc. are mentioned and explained. Phone
numbers are provided due to which customers can make a call and place an order
for the product.
3. Tele Marketing:
It is a retail format in which offerings are communicated to
the customers through a catalogue, letters or brouchers. Such retailing is
suitable for specialty products. The buyer places an order for a products with the merchant through a
telephone call or website. Internet and online payment options, has made
shopping from home easier.
2. Mail order:
Products like cosmetics, jewellery, food items are sold in
different ways. The retailers visit home place or work place of the customers
to sell the products. It is also known as network marketing where the products
and services are sold face to face.
Direct selling is a retail channel for the distribution of
goods and services. There is no fixed retail location. In direct selling there
is a direct contact of the retailer with his ultimate customers.
1. Direct Selling:
Food based—superstores are food based retailers that are
larger than the traditional supermarket and carry on expanded services daily,
bakery,, sea food and non food sections. Supermarkets can vary in size but can
be as large as 150,000 sq. ft. Like
combination stores food based
superstore are efficient, offer people
a degree of one stop shopping simulate impulse purchase and feature high profit
Both product- and service-based businesses sell a product.
The difference between the two is that the product business actually sells a
physical product, while the service business owner sells his skills as the main
product. In the service-based business, potential clients invest in the
salesperson or owner, which makes the client relationship even more valuable and
important than in the product based business. Service businesses rely on people
and the client experience, which can be risky. Product based businesses, on the
other hand, can be assured that their product is going to be the same from
customer to customer, making the customer experience always the same.
For a service a example will be a bank, it offers a service
because it allows you to put money into your bank account it also allows you
to check your balance and lets you pay
for products direct from your bank.
For example a seller of a toothbrush not only offers the
physical product but also the idea that the consumer will be
improving thehealth of their teeth. This is a example of a product.
Product— A good,
idea, method, information, object or service created
because of a process and gives a need or
fulfils a need. It has a many physical attributes (benefits, features, functions, uses)
that a seller offers a buyer for purchase.
Service—A valuable action, deed, or effort performed to
satisfy a need or to fulfil a demand.
Product vs. service
An advantage of hybrid is that customers will be drawn in by
the combined offer of products, so if they feel like reading a book and having
a coffee they will go there.
A reason two business would become a hybrid would be that it
would financially suit them both, also if there isn’t enough demand for their
main product, add a secondary product to boost sales.
A hybrid store is a combination of products in the same store.
Such as a library which sells coffee.
What is a hybrid
– Also you are able to try on products which are not
featured on websites.
– You can inspect the quality of the product and try it on
and see if it
Less expenses—selling online is better because that means
that you don’t have to pay for premises.
Easy access to market – Online marketplaces such as
eBay and Amazon allow anyone to set up a simple online shop and sell products
ADVANTAGS OF ONLINE AND PHYSICAL STORE
Retailers now sell on high streets and online, this allows
customers look and buy outside of trading hours. The internet is also used for
research of products such as looking at reviews before purchasing the product.
Online and physical store
Type of stores
For example Argos are retailers because they provide goods
which are used in the household.
A transaction where a buyer intends to consume the goods or
service through, personal, family or household use.
What is retailing?