SPECIALTY CHANNELS BMI Marketing Mix FUNCTIONS OF RETAILERS

SPECIALTY CHANNELS BMI – Marketing Mix

FUNCTIONS OF RETAILERS l The 5 “RIGHTS” l Having the right merchandise, at the right price, at the right time, at the right place, and in the right quantities.

Local Businesses l l l Think of two businesses in Markdale, Flesherton, Dundalk, etc. where you shop List 2 products you can purchase at each business Does each of these stores incorporate the five “rights” of merchandising? Explain.

SPECIALTY CHANNELS 1) VENDING MACHINES l Operate unattended l Dispense product in exchange for money l Operate 24/7 and require only occasional maintenance and refilling l Examples…

SPECIALTY CHANNELS…cont. 2) INTERNET l A web site used as a “retail outlet” l Customers browse a virtual catalogue and add items to their “shopping cart” l Items are paid for by credit card, Pay. Pal, Debit card, etc. and are shipped from a warehouse immediately l Problems with internet sales? ? ?

SPECIALTY CHANNELS…cont. 3) CATALOGUES l Used to increase the size of a retailer’s market l Can be expensive to prepare, produce, and mail l Commonly used by manufacturers, importers, and wholesalers to sell directly to industrial and other customers

SPECIALTY CHANNELS…cont. 4) TELEMARKETING l l l Used to sell products over the phone Often used by charities Often considered annoying by consumers

SPECIALTY CHANNELS…cont. 5) TELEVISION SALES l An effective distribution method for products that are new and require some consumer education l “Infomercials” demonstrate products and provide ordering information l Usually aired during inexpensive time slots