Business to Business marketing 12 1

0:01 hello everyone welcome to the marketing channel course today we will review chapter 3 industrial retailing retailers can be classified according to their assertment service and park breaking but many may also be classified as store retailers and non-store retailers depending on whether or not they are required to carry out retail activities non-store retailers are classified into

0:47 direct saline candle law and vending machines and home shopping and internet retailing this classification revolves around the means by which retailers contact customers direct selling is when a seller meets all consumer face-to-face and sales products candle look retailing is a strategy in which sellers send

1:33 catalogs to customers and vending machines selling products through vending machines i'm sorry home shopping uses tv channels to sell products to customers and internet retailing is we are retailers use internet to communicate with customers

2:21 and home shopping and internet retail are showing high growth in korea then we used to look at the benefits of done store retailers retailing those two retailers have several benefits due to the fact that they do not have a stores first it provides time saving utility for consumers who do not have the time to shop due to traffic difficulties and double

3:08 income so non-store retailing is appealing to time conscious customers right one of the great benefits is that they can order products through the phone or the internet at home or at work without having to go out to the store and shop second nonstop retailers offer highly personalized service by using marketing database non-store retailers can collect

3:54 information such as consumers address and purchases when processing products are percent purchased by consumers using these consumer data non-store retailers can provide consumers with personalized services tailored to their individuality for example customers who primarily purchase electric and electronic products may send a catalog that mainly introduces related products the provision of personalized services is one of the key

4:42 advantages of non-store retailers as consumers are likely to buy and feel satisfied when they get information about the products they are interested in third non-store retailers does not require your stores so it is possible to access target consumers regardless of store cost and location conditions this means that products can also be sold across borders which has the advantage of being able to sell to a

5:30 large number of customers in addition non-store retailers can sell products at relatively lower prices than store-type retailers because they spend less money on store rent due to these advantages non-store retailer is expected to continue to grow in the future in korea on the other hand nonstop retailers also have several disadvantages first the biggest limitation is that consumers cannot touch or

6:15 wear products before purchasing them therefore consumers are not easily convinced of the product and hesitate to purchase it many consumers use low priced no store retail but as many customers want to see touch and buy products in person second due to the limitation that it cannot be touched or worn non-store retail has a highly written rate than store-type retail

7:00 returns have to be processed one by one so the handling cost is formidable and most of the costs will be borne by retailers therefore no store retailers face the challenge of increasing sales and reducing returns at the same time third it is not welcome from the consumer's perspective that the return is inconvenient even if consumers are not satisfied with the product it is often not easy to go to the store to return the product and get a refund in return

7:46 the product must be repackaged and sent to the retailers and in some cases the consumer's expense of such returns also serves as a disadvantage of no storytelling now let's take a look at the types of known storytelling first direct selling drugstores are assessed muscles in which sellers directly visit customers homes or offices to provide goods and services the characteristic of direct science is

8:31 that such people regularly sell on site along with explanations of the product at a place convenient for consumers it takes advantage of the benefits of building friendship with customers through face-to-face meeting most of the sales people are trained hired by the company in the form of exclusive contract workers and receive allowances for resells in korea it is active in education fields such as cosmetics home appliances

9:19 health foods and study areas companies famous for door-to-door cells in the united states include avon and tupperware tupperware invites rental laws gathers people through them and then hosts to provide parties to display sell and offer discounts or two landlords even focuses on paying cells incentives based on cells volume and is taking a certain muscles in which sales people are commissioned not only for themselves but also for

10:07 cells of their subordinates directors are growing mainly in developing countries and emerging markets one of the main reasons why door-to-door cells are active in developing countries is the lack of distribution related infrastructure in developing countries visiting cells are developed due to the lack of basic social overhead capital for the development of the modern modern distribution

10:53 industry however even in the era of the forest industrial revolution there are many reasons why all deficient results continue to grow online shopping using mobile phones may be easy and convenient but it cannot replace the advantages of one on one touch unique two directions one of the other advantages of adult tutoring is that they feel particularly treated by sellers who respond to customers personal characteristics in addition face-to-face contact can be

11:40 effective for consumers exposes exposed to excessive information to choose their own customized products for consumers or older consumers who do not have the time to understand and separate information and use it for purchase decision despite its benefits direct sellers have many disadvantages first tricksters have a negative image many potential customers have negative thoughts about direct cells as the sales

12:26 person's human relationships are often used to sell products for commercial gain there are reports that once the product is purchased through a dry cell consumers appear to have a more favorable image than before but it is not strong enough to eliminate the negative image of direct cells another limitation of drug cells is that women's increasing social activities

13:13 make them less and less likely to visit their homes or with consumers through phone calls therefore the lack of time for face-to-face contract contact and the lack of appropriate places of cell also limit results the growing difficulty of higher examiners forward door-to-door or serves as a limitation of door-to-door sales developing countries usually

14:02 show high unemployment which makes it easier to hire salespeople for door-to-door sales companies based on human cells however more sellers are not employed by door-to-door sales companies but act as independent distributors who earn income according to their sales performance in addition many sales people in door-to-door sales apply to work temporarily before getting a regular job therefore it is undeniable that

14:49 the turnover rate is high although it is easy to hire the perceived risk of consumers buying through drug sales is higher than that of other nonstop retail businesses this is related to the high turnover of salespeople mentioned above in many cases it is not easy to get proper service at the right time because they have tried to contact the sales person to receive the service after purchase but they

15:35 they have already retired one of the direct sales techniques is a multi multi-level network that uses the sales people located in various stages to sell products away avon and so on are companies that sell products using multiple level network and they use the characteristics of consumers who are more willing to buy the products when recommended by trusted sellers a multi-level network consists of a

16:21 master distributor and a self-distributor who employ people who want to become salespeople the higher distributor is responsible for hiring and training the lower distributor within a multi-level network distributors perform functions such as facilitation legal ownership and practical ownership the most important function performed by

17:08 multi-level network distributors would be the facilitation function this is because multi-level network distributors are the only facilitator used by multi-level networks there are resources of income in a multi-level network first when we including a lower distributor the head office provides the higher distributor with a fee it is it is usually paid in the name of education for the lower distributors of

17:55 the higher distributors second it is a fee for selling products to soft distribute distributors top distributors make profits by purchasing goods from headquarters and reselling them to their subordinates the third sources of income is the margin that results from the sales of goods to the end users who purchase use or want to own them however problems caused by illegal

18:41 multi-level networks often emerge as social issues and multi-level networks require a large subscription fees or logic purchases when subscribing either the headquarters refuses to return from the distributor the legal method is to be the headquarters at the purchase price of 85 to 90 percent it is often an illegal network if a larger fee is provided to a higher distributor when hiring a lower distributor on the basis of the principle of

19:27 transaction the seller must be the primary source of revenue for the cell of product and covering most of the income from the re recruitment of the soft seller and the sell of the subseller bioleads the basic principle of the transaction as such multi-level networks cause many social problems so there are more disadvantages than benefits it is not easy to distinguish between illegal and legal so special attention from consumers is required it is very important

20:13 okay we will continue in the next video

21:16 you