Reference no: EM132275188
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The channel structure used for any product must be fully assessed for successful distribution. The distribution system selected must align with the brand’s advertising objectives, pricing strategy, sales plan, and product design (Finch, 2012). In order to remain competitive in the marketplace, companies have been moving more towards online shopping. The challenges faced in this transition are updates, maintenance, and execution. Once an online platform is created, the company must ensure that it is updated constantly to appeal to consumers. Costs for maintenance of an online site incurs as breakdown could push the customer to the competition. In addition, when it comes to online shopping, shipping speed becomes an important factor for consumers in selecting where to purchase. Thus, companies need to deliver on their shipping estimates and examine the fastest way to ship items at lower costs.
Moving from a traditional brick and mortar-marketing channel to online can create a channel conflict. Organizations like Pier 1 and Zara, which are experiencing difficulty in eCommerce development, can shift there focus more to online sales and quality. For example, Pier 1 is reflective of a time when physical retail was booming with over 1,000 stores. In addition, only a quarter of their sales are online which is less than their competitors (Shoulbery, 2018). Moving forward, committing to the age of online shopping is critical. Companies that are struggling should offer all their current in-store products online as well. In addition, delivery needs to be a priority. Struggling companies need to focus on how to get what the customer wants, in the fastest way, in order to remain competitive.
Whether a company sells through a store or online, there are benefits and limits to be considered. Selling in a store allows the customer to preview and handle the product directly. In addition, the customer can satisfy their need for the product immediately. However, in store purchasing requires time and travel for the customer. Online shopping allows the customer to quickly order and re-order whenever and wherever they are. But, the customer is limited to pictures and reviews during the evaluating stage of purchasing.