Budget Analyst
Marketing Channels
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.
What are the benefits and limitations of selling through a store front and online?
A marketing channel is simply a path that flows from sellers to end-users (customers). Traditional brink and mortar marketing channels can include intermediaries such as manufacturers’ agents, wholesalers, and retailers. Members of a traditional distribution channel can be responsible for activities such as transportation, promoting, sorting, order processing, inventory management, insurance, and financing (Finch, 2012). All of these members of the distribution chain must be compensated for their services which not only diminish profits to producers, but it also can translate into higher cost for customers. Some of the benefits of this process are is that these middlemen or intermediaries are responsible for adding value to the goods being sold. This process can only be justified if it continues to add value that surpasses the value that the producer operating independently can.
Organizations like Zara and Wal-Mart can assist customers move between the traditional and online channels by addressing some of the problems that this transition can cause. The issue of customer service can be addressed with live chat lines and an unintimidating return policy. It is also important to provide secure payment systems. To encourage more shoppers to use the internet, Wal-Mart and other companies offer store pick-up services that waive shipping charges. We have two Wal-Mart stores in my area. The one that is closest to me is smaller and has less
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.
What are the benefits and limitations of selling through a store front and online?
A marketing channel is simply a path that flows from sellers to end-users (customers). Traditional brink and mortar marketing channels can include intermediaries such as manufacturers’ agents, wholesalers, and retailers. Members of a traditional distribution channel can be responsible for activities such as transportation, promoting, sorting, order processing, inventory management, insurance, and financing (Finch, 2012). All of these members of the distribution chain must be compensated for their services which not only diminish profits to producers, but it also can translate into higher cost for customers. Some of the benefits of this process are is that these middlemen or intermediaries are responsible for adding value to the goods being sold. This process can only be justified if it continues to add value that surpasses the value that the producer operating independently can.
Organizations like Zara and Wal-Mart can assist customers move between the traditional and online channels by addressing some of the problems that this transition can cause. The issue of customer service can be addressed with live chat lines and an unintimidating return policy. It is also important to provide secure payment systems. To encourage more shoppers to use the internet, Wal-Mart and other companies offer store pick-up services that waive shipping charges. We have two Wal-Mart stores in my area. The one that is closest to me is smaller and has less