Bricks-and-mortar shops struggle to win customers back from virtual ones

Summary: During this recession, the number of people that have been leaving the system of bricks-and-mortar and running to online shoppers has increased. This years Black Friday in the states was supposed to be the day, when conventional retailers' were to regain initiative. E-commerce is attracting many costumers because they are able to compare prices, avoid local sales taxes online, and sipping is often free. In 2008, retail sales grew by 1% in America, and they are expected to decline by more than 3% this year. Comparing retail sales and online sales, online sales have gone up 13% in 2008 and are expected to grow by 11%. But overall online sales only account for 6% of all retail sale in America, which is up from 5% in 2008. Online retailers have had more sales now in the recession, than any other retailers out there. Online shopping site, eBay crashed on November 21st because of all the people on it. They are starting sell groceries on websites like Amazon, and jewelry-maker, Faberge is selling gem-encrusted eggs online after re-opening, instead of opening any shops. Brick-and-mortar retailers, who often have higher price and are paying to run their stores, will have serious competition. They are trying to make shopping at stores a fun experience, like Apple encouraging their customers to try out the products and the Walt Disney Company will have mirrors where the children can interact the Disney characters. Best Buy is offering music lessons with all their instruments and Lululemon athletica offers free yoga lessons.

Connections: This relates to Chapter 7 of Marketing Today because it also talks about non-store retailing, like online retailers. Online retailers are really booming in the recession right now and this type of non-store is becoming even more common in retailing today. They have got the attention of the consumers because of their benefits. Consumers save money,time, and can compare prices quickly while shopping online. Non-store retailers are getting more popular. These retailers save money because they don't have to spend money on running a store. Even old stores are re-opening online and not opening up shops, which is showing the rise of online retailing.

Reflection: I do see more people abandoning bricks-and-mortar and resorting to online shopping everyday. They find it more convenient, but I still think I need to see something before I purchase it. It depends on what your buying, if it's clothing then you need to definitely try it on before you buy it. Online retailing is good for when you don't have time. I still think bricks-and-mortar will still be the first choice for all shoppers. Personally, I have never shopped online, and I just like the actual experience of going to the mall and trying things on. Bricks-and-mortar will always have the most sales, even though it will go through recession unlike online retailers.

Shockvertising Spreads

Shockvertising spreads to cut through media clutter
http:/www.vancouversun.com/Shockvertising+spreads+through+media+clutter/2145422/story.html

Summary:
A woman sued Toyota because she had thought she was being stalked. It was actually a marketing campaign, which included videos and emails that upset the woman. She had a $10 million lawsuit against Toyota accusing them of "terror marketing". Toyota had a person following the woman with a new vehicle just to promote it. Lindsay, a Simon Fraser University marketing professor, said "If I throw a really annoying ad, studies show you may remember my product but forget why you remember it. Marketers have essentially cut through the clutter by pissing you off." So marketers have to be different to be noticed, sometimes even annoying, and cutting edge. Some other examples of this type of advertising are pigs eating pigs on Boost Mobile. Diesel has women breastfeeding a puppet made of rotten meat. MTV Canada shows public urination in their commercials. Aylmer's pasta sauce has an angry chef that comes and beats you if you don't use the sauce. Oliver Gleeson said that one risk of this type of advertising is offending someone. "It's amazing how 10,000 can enjoy an ad but it only takes one person to call the competition bureau and make waves."

Connections:
This article relates to chapter 2 in Marketing Today because in shockvertising niche marketing is used. These marketers are only targeting a narrow group of people, but people they're not trying to target are being offended by these ads. These marketers have the freedom of publishing and running the ads they want, but it cannot interfere with or offend others. In "terror marketing", marketers have to figure out what demographic group they're trying to target and what type of ad would they most relate to.

Reflection:
I thought the ad campaign, where they had a man stalking the women with a new vehicle, was jut plain stupid. This could have really scarred the woman. I'm fine with these marketers putting out ads that are annoying, but sometimes they go to far. I think they have to learn when not to go to far. I was also really glad that the woman had sued them. The other examples of ads put out by marketers weren't as bad. I can see people getting offended by them, but personally I think everyone has there own opinion.

A Booming Recession Business

A Booming Recession Business
Companies that supply dollar stores are raking it in
http://www.inc.com/magazine/20090901/a-booming-recession-business.html

Summary: The recession has been very unpleasant for many businesses, but for DVA, business has been blooming. DVA is a liquidator of DVDs, CD's, and video games in Los Angeles. Since last year they're sales are at $21 million and have gone up by 8 percent this year. The company buys copies of shows and movies that other stores don't want to sell anymore like, Pinky and The Brain and 24 Hour Party People. Then they sell these copies to discount retailers. So these copies can be purchased online or at dollar stores.

Discount retailing is usually not very a common place for safety in a recession. A closeout supplier named Illinois buys excessive stock of plates, soap, and socks, and sells them again to discounters. And the company sales were really fast this year. Other specialty shops are also cashing in.

Reflection: I think that the companies are being smart by also cashing in. If it's helping the sales of their company, than i think they're doing a good job. And the idea of selling DVD s that other stores are not selling is pure genius because it's different. This article has also changed my opinion on recessions because it shows me that they're not always bad, you just have to know how to deal with them.

Connections: This article connects to chapter one of the textbook, marketing today because it talks about the channels of distribution. They show how companies take excessive stock and sell it to discounters for more money and make quite a great profit out of it. This shows how the channel of distribution works. They buy from the producer and sell it to retailers.