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Keywords
Marketing strategy, Distribution channels, Markets, Case studies
Abstract
Multi-channel marketing in the retail environment involves the integration of marketing activities in retail stores, with catalogs and with online marketing. The online component of this is critical to the success of the overall effort and it is becoming more powerful, sophisticated and measurable. This case study chronicles the use of multi-channel marketing by REI, a 66-year-old purveyor of specialty outdoor gear and apparel. The case study shares the essential components of multi-channel marketing used by REI and how the various components work together.
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Introduction
In the future, more companies will deploy multi-channel marketing strategies to drive sales and profits while building brands. Multi-channel marketing involves the integration of traditional marketing efforts such as retailing and catalog marketing with effective online marketing.
In this case study we will explore the application of online marketing strategies and tactics in the multi-channel mix, and we will look at how one company uses online methods to optimize their multi-channel efforts.
Multi-channel marketing and REI
Recreational Equipment, Inc. (REI) was created in 1938 as a consumer cooperative to purchase high-quality ice axes and climbing equipment. The company has evolved into a renowned supplier of specialty outdoor gear and clothing. REI serves the needs of outdoor aficionados through 69 retail stores in the USA and by direct sales over the Internet and over the telephone through its catalogs
In this article we will examine how REI and other companies use the most advanced, performance-based Internet marketing techniques to enhance their overall multi-channel marketing efforts.
In examining the online components of multi-channel marketing programs, we will focus on three of the elements that are becoming increasingly important:
(1) search term marketing;
(2) shopping portals; and
(3) affiliate marketing.
All three of these are performance-based marketing methods and will play a significant role in the mix for multi-channel marketers in the future.
Search term marketing
Search term marketing is one of the most well known online marketing strategies. It is well known among online marketers and its awareness is growing among traditional off-line marketers.
Two...