Why Retailers See Advantages of Drop Shippers

Posted by Paul Christ September 10, 2010

Goods to Go (Internet Retailer)

Drop Shippers in RetailingIn our Wholesaling tutorial, we discuss the role of drop shippers in the distribution process. In the context we exam in the tutorial, drop shippers are wholesalers that are situated between a supplier (e.g., manufacture) and a buyer (e.g., retailer).  These wholesalers handle shipping activity but never take physical possession of the product. Instead, suppliers make arrangements with these wholesalers to deliver product directly to the buyer.

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How Companies Learn to Adapt Products in Global Markets

Posted by Paul Christ September 07, 2010

Fast-Food Chains in Asia Cater Menus to Customers (USA Today)

Adapting Products in Global MarketsMarketing on a global scale is almost never easy.  The efforts and costs required in establishing a marketing base in foreign countries can be significant.  This often means only the largest firms become full-fledged global marketers.  While the Internet is helping make all companies visible throughout the world, to be truly a global player requires much more than a website and a FedEx or UPS shipping account.

Instead, companies looking to go global must invest significant capital, manpower and time if they want to compete in foreign markets.  For marketers, this includes gaining a deep understanding of the markets they are entering.  And, this is no simple task as each country is different and the marketing decisions needed to reach customers in each country may be different.

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Little Known Patent Law Forces Marketers to Reexamine Their Packaging

Posted by Paul Christ September 02, 2010

New Breed of Patent Claim Bedevils Product Makers (Wall Street Journal)

Patent Law and PackagingFor many products, the packaging decision is not one that should be made lightly.  As we mention in our Product Decisions tutorial, a product’s packaging serves many functions such offering protection and enhancing a product’s visibility.  It can also be an expensive decision since it can significantly raise the product’s final cost.

However, not all marketers have the same level of concern when it comes to packaging.  While leading consumer products companies see packaging as a decision they regularly make (e.g., adding to the label information on a short-term promotion), for many other marketers the packaging decision is far down their list marketing activities.  For these products, packaging design changes are made infrequently and, for some products, the package may never have changed since the product was first introduced.

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The FTC Wants to Know Who is Posting Product Reviews

Posted by Paul Christ August 30, 2010

Charges Settled Over Fake Reviews on iTunes (New York Times)

Product Reviews Under ScrutinyWe have been away for the last few weeks on a long overdue vacation, but we are now back with a story about promotion and marketing law.  This issue is one we first examined last October when we discussed how the U.S. Government was intending to take a more critical view of supposedly unbiased product endorsements that are actually company-sponsored promotions.  In particular, the Federal Trade Commission (FTC) announced they would become more aggressive monitoring what goes on at product review websites.  Their main concern is with marketers deliberately financing the posting of positive product comments, including product reviews, but failing to disclose the business relationship the poster has with the product or company they are reviewing.

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Online Retailers Brace for Sales Tax Collection

Posted by Paul Christ August 16, 2010

Tax Attack! (Internet Retailer)

Taxing Internet PurchasesSince the emergence of online retailing in the mid-1990s, retailers running store-based outlets have complained that online retailers have an advantage because they are often not required to collect sales tax.  This exemption from collecting sales tax has to do with a 1992 U.S. Supreme Court ruling that said retailers without a physical presence in a state that has a sales tax are not required to collect sales tax when selling to someone in that state.  While the Court was evaluating this issue in terms of direct mail companies, the Court’s decision has also been applied to online retailers.

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Selling Consumer Packaged Goods Over the Internet

Posted by Paul Christ August 10, 2010

The “No Middleman” Middlemen (Stores Magazine)

Selling Consumer Packaged Goods Over the InternetA key factor leading to success in retailing is to be the first with a unique business proposition.  For instance, for McDonalds it was understanding that customers often want fast service rather than high quality products.  For Home Depot it was taking a small hardware store business model and expanding it to a size that dwarfed mom-and-pop stores.  For Amazon it was offering an enormous variety of products that customers could conveniently purchase on their computer but, due to shipping time, were also willing to wait some time before they could enjoy.

For a new retailer, finding the right features to distinguish them from their competitors has become more difficult as existing retailers have easy access to market research that keys them in to what others are doing.  Yet, sometimes a smart, hard-working retailer discovers an angle that sets them apart.

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Samples of Marketing Tutorials

SEM: Site Navigation
Long before a search engine can ever understand whether a webpage will satisfy a user's search inquiry, the search engine must be in a position to locate the content.  As we discussed, search engines use robot software to scour the Internet looking for websites.  As we alluded to in an early section of the tutorial, search engines gather in…

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