Question

Short answers (give an example to the following in Saudi Arabia). (out of 7)

1. Give an example to single channel retailing.

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2. Give an example to multi-channel retailing.

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3. Give four advantages for direct marketing.

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Answer 1

a) Short answer - Automobile companies like Rolls Royce, etc.

Long Answer - Single channel retailing means the only way to get it to a customer, for the above example, it can be stores. Meanwhile, other things like mobile phones can be bought from stores, or online. But in automobiles, it is still single channel retailing. For the expensive cars, like Porsche and Rolls Royce, there are even limited options in store retailing.

Other than that, high-end restaurants are another example. They cannot deliver their services at the doorstep. Thus they have the only channel and that is their restaurant.

It became a reason for these businesses to impact heavily in the pandemic time. With only a single channel and their stores closed in the lockdown, there was no other way to sell to customers

b) An example of multi-channel retailing can be LuLu Hypermarket

Long answer- Multi-channel involves different channels of distribution like store and online. Thus the above example has superstores but also delivers at the doorstep and can be reached online for that. Thus, it helps in reaching a wide audience and reduces risk

c) Four advantages are
1. It helps in building a relationship with the customers which is not possible with online marketing or other forms.
2. It is more targeted, the marketing on print media or TV broadcasting. Here direct marketing helps to get personalized according to customers need and not like other forms which have the same message for everyone
3. Competitors would have less awareness of the company's progress as it is direct and personal unlike other mediums like TV, radio which is more public and gives competitors an idea
4. It is a gradual marketing way, which can help change the tactics or product without losing any more money or time. For example, in online channels, once the ad is out, understanding if people like it or not is unknown, and it drains a lot of money.

While direct marketing is easy to monitor, is flexible, and can get better results as a strategy can be changed without spending all money at once.