Online vs. Offline Business - Assignment Example

Online vs. offline business Naturally, many people think business operates through physical buying and selling wherethe buyer and seller meet and negotiate on the product. Clothing business is one of the most popular activities in the economy. Pike clothesline applies both physical and online selling processes to grow its market share as well as increase its profits since clothing is a basic need and people are buying and selling clothing continuously. In offline selling, Pike cloth line operates a physical store where the customer walks in for negotiations. The cloth line, sales people have the option of searching for the customer physical premises and deliver the product. In offline selling, the sales person physically identifies the need. For example, the clothe seller may notice that there many new born in the region therefore, decide to major on the present opportunity otherwise one may be wasting time trying to sell school uniforms. On this stage, the seller focuses on the customer needs, evaluates the suitable cloth to fit in well, and then prioritizes the customers (Goldman Sachs Group, 2012:24). It is advisable for the seller to let go off those not likely to buy to save time and other involving resources. The next step is the physical contact with the buyer. The seller uses communication skills to create interest from the first conversation. In this stage, the seller uses humor to make the process interesting and grab customer attention. The seller states the purpose of his visit clearly and time factor is put into consideration not to waste customers’ time (Reynar, Phillips, & Heumann, 2010:418). When presenting, the seller focuses on the benefit and qualities of the cloth. Allow the customer to ask many questions and wear a smile on your face. At this stage, he seller may face objections from the customer therefore, one should be able to handle customers’ worries and provide alternatives. Once the customer has shown interest on the cloth and on trying it is fitting, the seller summarizes the deal and packs the cloth for the customer. With changes and advancement on technological know how, Pike practices online selling. Online business refers to any financial transaction that pertain a certain good whereby the buyer and seller do not meet physically but contact all the arrangements on the internet. For Pike to contact a successful online business, it understands the business obligation since its sales force will be performing transactions online. It is very keen not to incur looses from fraud or even viruses. Online business requires Pike to poses clear information and guidelines on order placement, delivery, warranties, refunds, and security. Privacy is also of high importance. The technological change is affecting and influencing the mode of selling and purchasing of goods and services because customers can access products and services in the internet. Even though the customer and the seller are not in the same place, they are able to conduct a business transaction (Marilyn & Judy, 2010:217). Pike has a website where it displays information about the available clothes, size, quality, theme, fabric characteristics, colors, and even price. The online seller has to prospect customers and send them to the website. Pike has to identify with the customer need and therefore, step in to satisfy it. Pike strategizes and outdoes competition since so many products are available online. Once a prospecting customer opens the website, Pike is able to establish a rapport. The rapport may emerge from the speed of downloading items and information, its aesthetics and navigation. Every activity a customer performs on the website is an opportunity to establish rapport. To establish on this, the site is friendly to the customer from the first instance. For example, the customer is able to find all the information required about a dress, the site downloads images first and provide an interactive platform where customers can post questions and recommendations. The site is professional when handling customer needs and queries. The seller qualifies customers by understanding what the customers are after and then directing them to where they can get it. Therefore, the site is easy to understand and navigate as customers are looking for more information. The navigation ease enhances curiosity qualifying and presenting of goods together. Presenting allows customers view the available options and select the best fitting. Pike presents the information necessary to customer for decision-making. Such information may very from cloth available colors, sizes prices, designs, and occasions. The seller is able to maximize on this stage by listing the clothes traits, advantage over others, and avail a variety. Displays are of great importance in the presentation phase. After the customer finds the desired cloth and is ready to purchase, but are still not fully decided, the website steps in and closes the sale. Policies and guarantees are vital to secure the sale and provide security and assurance to the customer. Pike advices customers that there is a provisional time of 30 days whereby, they can return any unfit or damaged clothe bought. The site assures customers of their privacy and personal information; promising confidentiality. This process is short and easy to complete. The customer fills in details on online form and submits it (Reynar, Phillips, & Heumann, 2010:421). This completes the order and delivery address I indicated. The site also provides after sale service whereby the customers can get more information and highlights on available fashion and recommendations. Comparison between online and offline selling A seller delivers the product to the customer or the customer has the choice to collect it by himself. During physical selling, both the seller and buyer can negotiate on the price and fix a favourable one. This ensures that the buyer has the opportunity to get better discounts while in online business; prices are more likely to be standard and applicable to every customer. In offline selling, the buyer can inspect the clothes quality, size and check if it serves the desired purpose. The buyer can compare different brands and pick the most appealing and suitable one as the customer has portfolio to choose while in online selling, the buyer has a variety of similar products from different sellers but cannot fit and confirm whether it fits well. Again, the online buyer can access more information from different sellers of a similar clothe and compare the information therefore, be able to make an informed decision. An offline seller may promote the clothes on word of mouth through personal selling when dealing with customers. This has an advantage over online selling since in online purchasing, the customer cannot try to fit in the piece of cloth interested in. The customer may be at fear to pay for the cloth since one is not sure of its said benefits and qualities. In offline selling, the seller may display the clothes in attracting manner to get the attention of customers. During physical selling, the people involved in customer service needs knowledge on how to solve customer issues and ensure customer satisfaction. This is because quality customer service earns a business competitive advantage and most customers relate their satisfaction to the service offered. Therefore, the seller requires good knowledge and interpersonal skills to meet the customer needs. The sales person needs interpersonal and good communication skills. Selling of clothes offline involves the efficiency of the selling person. The outlook of the premises is essential as customers want to identify with neat and attractive shops. In online selling, the site is automatic such that it can handle customer queries and create feedback when prompted to. A well-designed site creates a friendly user interface whereby, the site manages the customer -seller relation ship. Finally, distribution takes a longer time than in offline selling since logistics need arrangement. This may involve shipping arrangements, packaging and collection details. The value chain model Value chain refers to the stages and steps a product passes from raw material up to a finished product at consumers’ disposal. These activities create value addition to the item and make it of benefit to the customer. The first step is inbound logistics whereby raw materials are received, stored and control of the raw materials occurs. The inputs may include the textile raw materials and essential machinery (Kanti, 2012:117). The next activity is operations whereby the raw materials are transformed into finishes clothe. This involves the use of machinery, workforce, and the technology necessary for the transformation. It also includes packaging, machinery maintenance, and product testing. . Once production is through and product is ready, outbound logistics ensure that products reach the consumer within stipulated time. It also involves warehousing of the product, order management, and distribution management (Chatain & Zemsky, 2011) On offline selling, customers purchase from Pike stores directly. Value creation refers to activities that increase the usefulness of goods. Online selling is convenient to both Pike and its customers because they do not incur cost in terms of money or time to travel in order to carry out the transaction. These online services are available round the clock (Kanti, 2012:119). Pikes Online business provides cheaper prices since products come to the customer directly from the manufacturer hence leaving out intermediaries. Customers also enjoy discounts. Online distribution provides customer with a variety of brands and alternatives since a customer can access different seller sites at ago and compare the products. Customers shop from sellers from all over the world and if one seller is out of stock, the customer can get it from another supplier immediately. Generally, Pikes online selling controls unnecessary expenses incurred on offline selling; for example, money spend on meals and accommodation on occasion of physical selling. Online selling and buying provides customer with an opportunity to compare prices from different operators, customers can also share information with other shoppers and even get feedback and recommendations. Online buying enhances privacy especially when a customer is buying inner ware without exposing customers on embarrassments from on lookers since online does not involve other spectators. Additionally, online business does not influence crowd especially during busy seasons like festive and end month. Crowds cause delay and frustrations especially if one is looking for a parking lot. Recommendations In order to increase sales, Pike need security on their details and protection from fraudsters. This is a major threat facing online marketing as fraudsters hack into sites and tap customers’ private information. Such people end up conning customers and even stealing from them therefore, Pike should invest in online protection to win customer trust. Professional companies at affordable fee offer these protection services. If Pike protects the customer from such actions, customers will be free to purchase more online and even refer friends and loved ones to carry out it. Therefore, they become repeat customers hence growing the company profit and market share. Pike should respond to threat of substitutes by ensuring that the clothes are of high quality, the prices are affordable. This is because the internet provides customer with a variety of products that serve the same purpose. Low and affordable prices will attract customers to purchase the clothes therefore, increase the market share and profitability. In online purchasing, customer buy product that they have not seen. This increases fear among them and some customer may not be ready to take risk. Therefore, it is upon Pike to create a comprehensive product profile including its benefits, qualities and benefits. This will create assurance to customers. It is also advisable to upload the product image for the customer to have a clue on how it looks with. This will give the customer some confidence and be ready to purchase online. As a result, many customers may be willing to try the online purchasing hence increasing the company sales. Bibliography Cakim, I. 2010. Implementing Word Of Mouth Marketing : Online Strategies To Identify Influencers, Craft Stories, And Draw Customers, n.p.: Wiley. Chatain, O. & Zemsky, P. 2011. 'Value creation and value capture with frictions', Strategic Management Journal, 32, 11, pp. 1206-1231. Fox, V. 2010. Marketing In The Age Of Google : Your Online Strategy Is Your Business Strategy, n.p.: John Wiley & Sons. Kanti, T. 2012. 'Market Segmentation and Customer Focus Strategies and Their Contribution towards Effective Value Chain Management', International Journal Of Marketing Studies, 4, 3, pp. 113-121. Marilyn, M. H. & Judy N. 2010. "Exploring SWOT analysis – where are we now?: A review of academic research from the last decade", Journal of Strategy and Management, Vol. 3(3), pp.215 – 251. Reynar, A. Phillips, J. & Heumann, S. 2010. 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