Suppose we manage a manufacturing firm that makes vacuum cleaners.
How should we sell these items? We could distribute via big chains such
as Best Buy or small neighborhood appliance stores, have our own sales
force visit people in their homes (as Aerus—formerly Electrolux—does), or
set up our own stores (if we have the ability and resources to do so). We could
sponsor TV infomercials or magazine ads, complete with a toll-free phone
number.
Suppose we have an idea for a new way to teach first graders how to use
computer software for spelling and vocabulary. How should we implement
this idea? We could lease a store in a strip shopping center and run ads in a
local paper, rent space in a Y and rely on teacher referrals, or do mailings to
parents and visit children in their homes. In each case, the service is offered
“live.” But there is another option: We could use an animated Web site to
teach children online.
Suppose that we, as consumers, want to buy apparel. What choices do we
have? We could go to a department store or an apparel store. We could shop
with a full-service retailer or a discounter. We could go to a shopping center or
order from a catalog. We could look to retailers that carry a wide range of
clothing (from outerwear to jeans to suits) or look to firms that specialize in
one clothing category (such as leather coats). We could surf around the Web
and visit retailers around the globe.