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Lecture 3

ECO 211 Lecture Notes - Lecture 3: Target Market, Macaroon, Rowan V. United States Post Office Department


Department
Economics
Course Code
ECO 211
Professor
Lorca Maria
Lecture
3

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MKT 320: Retailing
1/23/15
Unit 1 Class 3
CHAPTER 3:
EBAY:
Most successful E-retailer of all time
Launched in California
Founded by a software designer in 3 days
Not a retailer or vendor, it’s a MALL OPERATOR
Successful  because it doesn’t deal with overhead, distribution, delivery,
advertising, etc…
Not too concerned with Amazon
oLaw of externalities = when a total market expands the market leader will
get the majority of the growth
Concerned with fraud?
oYes, bad reputation can hurt the company
Margaret Whitman = CEO (extremely successful)
Most of their merchandise are COLLECTIBLES because they’re hard to find and
price
CHAPTER 3:
Multichannel retailing
3 Store channels:
o1. Store Channel:
Physical brick and mortar store
Benefits 
Allows you to physically browse
Only channel where you can touch and feel the product
Only one that has a person in front of you
Only one that accepts cash
Entertainment experience
Immediate gratification because you get the item right
away
Risk reduction – the theory that If you can buy it at store
you can return it there so you feel better about it
o2. Catalog Channel:
Physical catalog, not online
Benefits 
Convenience - you can order anytime, anywhere
Information
find more resources at oneclass.com
find more resources at oneclass.com
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