BUS 620 Week 5 discussion responses needed

Discussion 1 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 Pier 1- 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?  Respond to at least 3 of your classmates.

Respond to Stacie Perez post

Many customers have moved to online stores as their first step in their shopping process and many companies have adjusted their marketing plans and sales process to follow suit. However, this transition is not always an easy one. To effectively launch online sales, companies should develop e-commerce enabled websites and invest in online marketing, including paid search and search engine optimization (Finch, 2012). This could require a complete overhaul to the internal marketing team and external agency support. Many retailers lacked an understanding of the supporting structure needed to serve customers directly (Finch, 2012). One of the main differences between selling in brick and mortar stores versus selling online is the distribution system. With brick and mortar stores, large quantities of items are shipped to the stores. On the contrary, with online sales, companies typically have a large number of small orders. Accuracy and speed in shipping and billing are paramount in customer satisfaction.

For companies that have had challenges developing eCommerce capability, there are several strategies they can employ to move customers between the traditional and online channels. Pier 1 Imports challenges started well outside the Internet. Pier 1’s leaders misread industry shopping trends and were aimed against the wrong competition (Bhattacharyva, 2019). Instead of competing with Target, HomeGoods, and HomeSense, mistakenly, Pier 1 Imports’ strategy attempted to challenge Pottery Barn and Crate & Barrel (Bhaatcharyva, 2019). They also lost the market leader position on unique home items some time ago to Amazon and Etsy. Pier 1 should consider adding elements to both the instore and online experience to capitalize on both channels. For example, the website should offer features that allow customers to see what the items would look like in their home. They could also add a QR code instore that customers could scan so the app is easily downloaded. Customers could save the items they like instore to review at home.

Zara has faced similar challenges in building an online presence with online sales falling below the competition (Reuters, 2018). With a large global presence of brick and mortar stores, Zara could build features that allow consumers to virtually try on items. They could also allow customers to save items they like instore and review online. Customers should also be able to buy online and pick up in store. The opposite should be available as well when a specific item or size is not available instore. The store should facilitate an online sell and have the item shipped to the consumers home. Online shopping provides customers with a wider selection of sources at lower prices, increasing the competition (Finch, 2012). It is imperative that retailers have a strong presence online and a great unique experience in stores.

Bhattacharyva, S. (2019, Jan 17). Digital can’t save anyone: What went wrong at Pier 1 Imports. Retrieved from https://Digiday.com

Finch, J. (2012). Managerial marketing [Electronic version]. Retrieved from https://ashford.content.edu

Reuters. (2018, Nov 7). Zara Launches Online Sales in 106 New Countries. Retrieved from https://Businessoffashion.com

Respond to Nicholas Schlagheck post

With the evolution of the internet over the past couple of decades companies have shifted much of their business to go through online stores.  Having these online channels allows for the companies to cut down on overhead, and also allows them to provide more convenient services to their market.  The online stores can be accessed at all times, and offer much greater options in term of total stock than a brick and mortar store can.  While this greatly benefits the company and the customer in most cases, it can be a difficult transition for some companies.  There are many retail stores that offer a wide variety of products that are all unique.  The variety is great to have, but often difficult to make purchasing decisions for on the online store.

Two such companies that are being confronted with this issue are Pier 1 Imports and Zara.  They both offer a wide arrange of unique items in their stores.  These items often need to be tried on or seen in person to see how or if the product will fit the person or the space the product will go in.  In order to help overcome this both stores should offer free shipping and free returns for online orders.  This will allow the customers to try the product and make sure it is right for them, without having to go to the store or worry about fees.  There are some companies that operate successfully with this model in industries that traditionally require brick and mortar stores.  Indochino is a suiting company that has very few physical stores and is primarily an eCommerce orient business.  They offer free expedited shipping and returns for their product, even if the item is being sent back to be tailored or adjusted.  By offering this the companies could help overcome the barrier of shifting to a more online model.

Respond to Joseph Lowe post

There is no doubt that over the past several years there has been a pinch felt in the traditional retail space. As the so-called Amazon effect has been felt in most retail industries, ecommerce continues to increase in the share of total retail sales each year. In light of this trend, many retail companies have adapted to selling both online and through their traditional brick-and-mortar stores. But it hasn’t come without its fair share of challenges. One of those challenges is how to quickly and efficiently fulfill customer orders via their online channel without having to charge too much in fees. Another significant challenge is maintaining the physical store-front presence need with customers. There is a certain nostalgia for consumers to interact face-to-face with another individual. Online shopping doesn’t provide that benefit. That being said, marketers face a tough challenge in convincing customers to put in the effort for that type of interaction.

Companies like Pier 1, who have had a difficult time gaining traction in ecommerce could stand to implement a more effective strategy. Stephen Wakeling (2018) argues that having a synergistic omnichannel approach is key to success in today’s landscape. It involves the concept of enabling customers to purchase online and fulfill in-store without having to wait for a packaging and shipping delay as well as having to deal with navigating through the store to find what they are looking for. On top of that aspect, for other shoppers, having the ability to purchase in-store and have the specialty item delivered directly to their doorstep offers the convenience of online shopping with the physical, face-to-face interaction that many consumers still desire.

References

Finch, J. (2012). Managerial marketing [Electronic version]. Retrieved from https://ashford.content.eduLinks to an external site.

Wakeling, S. (2018, December 20). How to improve your omnichannel retail strategy. Forbes. Retrieved from https://www.forbes.com/sites/forbestechcouncil/2018/12/20/how-to-improve-your-omnichannel-retail-strategy/#78e60c00384dLinks to an external site.  

Discussion 2 Going Global

Identify the strategies for entering into the global market. Assess the strengths and limitations of each. Give an example of a company that has made a success of doing business in the global economy. What lessons from McDonald’s success in the global marketplace are transferable across industries? Respond to at least 3 of your classmates.

Respond to Elysia Washington Washing

As the American Marketing Association (Finch, 2012) stated, "Global Marketing refers to a 'marketing strategy that consciously addresses global customers, markets, and competition in formulating a business strategy''. Organizations who market and operate globally must consider a facet of strategies to satisfy the needs of the customers in those markets. Most companies venturing globally are taking a costly risk in a multitude of ways. First strategy is setting organization for the best opportunity of success. For instances that are readily apparent, global marketing may allow lower unit costs and reduced labor costs with outsourcing.  Another strategy is a more diversified sales portfolio. "Companies can reduce their dependence on home markets" (Finch, 2012).  The advantages from following the strategies allows companies to purchase goods from international sources at a lower price than domestic markets. They may offer a variety of goods or services not available domestically. 

An example of a company that has made a success of doing business in the global economy is Airbnb. Airbnb is a community marketplace where people list and book accommodations around the world. Airbnb has grown largely due to social media. According to Finch (2012), social media refers to all forms of electronic media through which users create and exchange content over the Internet via technologies that promote personal engagement and sharing information about their lives. The details being share often include biographical data, personal photos, and professional information.

McDonald's was able to franchise, "contractual system of distributing good and services whereby one party (the franchisor) grants to another party (the franchisee) the right to distribute or sell certain goods or services" (Finch, 2012). Their international businesses operates under a trademark. This brings success to McDonald's domestically and internationally. 

 

Reference 

Finch, J. (2012).  Managerial marketing  [Electronic version]. Retrieved from https://ashford.content.edu 

Respond to Troy Watson post

In today’s market it is the smartest move for business to enter the global market. There are several steps that need to be met by organizations to be able to succeed in a global market. The first step is to research and educate on the location, customer, and potential partners. The second step is being able to understand what operating costs are going to be in moving your business to a global market. One major factor that will affect operating costs; determining if the organization is going to use indirect or direct exports. Once the company has entered the global market they can sell, market, and connect with their partners effectively if they take the proper steps.

McDonald’s has been the dominating fast food restaurant for many years. In all honesty no matter where you go in the world everybody knows the name McDonald’s. McDonald’s didn’t just pop up globally overnight; the organization had to build multiple connections on many different levels such as functional, brand differentiation and higher-order emotional. The best lesson learned from McDonald’s is understanding that every human has needs and that is just what they give every individual no matter what culture back ground.

Finch, J. (2012). Managerial Marketing. Retrieved from https://ashford.content.eduLinks to an external site.

Respond to Tenia Miller

Identify the strategies for entering into the global market. Assess the strengths and limitations of each. Give an example of a company that has made a success of doing business in the global economy. What lessons from McDonald’s success in the global marketplace are transferable across industries?

Apple Inc. has successfully navigated the global economy.  They have created the technology needed to evolve with the generations of the social media era.  The millennials have made this company a last and household name.  The variety of options available to the organization's consumer is less than their competitors but still allow the customer to customize their product for their lifestyle.  Having this option is convenient and desired by the consumer.  Given McDonald's lasting history both ups and downs, have set the precedence that with a solid plan and almost cult following, companies will succeed.  I believe Apple has utilized some of the marketing strategies from McDonald, in regards to keeping their consumers for years.  Pricing strategies, such as competitive and penetrating are the hallmark for both companies.  With any new food item on the menu, there is usually a "2for" deal involved, enticing customer to try the product at a discounted price and Apple has done that with almost every phone released.  After approximately 14 days the cost is regulated and expected to lose revenue, but maintain interest.  It is my belief, companies that wish to keep a long-standing consumer, should research and follow the actions of some phenomenal organizations mentioned above.

Finch, J. (2012). Managerial management, San Diego, CA Bridgepoint Education, Inc.

Forbes (2012, April 20). McDonald’s Winning Strategy, At Home And Abroad. Retrieved from http://www.forbes.com/sites/panosmourdoukoutas/2012/04/20/mcdonalds-winning-