Differences between Small Shops and Large Stores

largesmallstoreThe factors that affect whether a visiting avatar spends money in a small shop versus a large store is similar in some aspects within virtual worlds, but also different in other ways when compared to the real world. One example of differences is the price paid for a product. Unlike the real world, large stores do not have the advantage of purchasing products in volume in which the lower price can be passed onto consumers because copyable items (or items sold through an affiliate vendor) has a near non-exist cost associated with them once the initial product is created.

However, the similarities between virtual and real world retail locations does include the square footage advantages as well as increased prim allowances which can result in a wide product offering as well as demonstration products that are rezzed more often than not. Large stores with their expansive space means that products are more likely to be sold via individual product vendors rather than a vendor with navigation arrows used to browse products like a catalog. Having more products visible at a time can also psychologically increase the chances of impulse shopping which can only benefit the bottom line.

Larger parcels also allows demonstration models to be either permanently or semi-permanantly rezzed so that the visitor can interact with and inspect the product instead of just looking at pictures or watching a video. Even though more prims are available, permanantly rezzed items tend to be the less-prim items and more of them while the semi- permanantly items will have a space set aside for them to be made available via a temporary rezzer that does not count against the static prim allotment.

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Taking a closer look at Business Strategy and Competitors

forumsWriting a business strategy and marketing plan is not required in order to start a new business, however it will challenge you to answer important questions regarding every aspect of your business. The business strategy should provide, at minimum, both short-term and long term goals and can be used as a blueprint when making decision during the course of business. One of the most challenging, yet very important, areas of the plan to investigate is potential competition. Such investigations of competitors may include lessons learned from failed competitors from the past, current competition, as well potential competition in the future should a non-competitor decide to expand their business into your market.

Many consumers will compare competitive products on price alone, therefore your marketing strategy should also determine it’s pricing position. The three common pricing methods are undercutting, matching, and premium. Undercutting the competition by pricing your products at a lower price has the potential of increasing market share, but could also suggest to potential customers that your products are cheap and low quality. Matching prices set by the competition requires including a similar feature set as other’s products, however it can be very difficult to stand out and gain market share if you are both selling the same similarly-priced quality items. Premium pricing allows you to stand out from the competition by highlighting exclusive features and an impression of high quality, however due to the higher price the competition might gain a higher market share in the short term.

Every business is unique in how they include social marketing in their long term e-business strategy, however the general goal is to increase interactions with both customers and prospects. Potential prospects will want to submit inquiries about available products including how they compare to the competition. Existing customers will have support inquiries on how to best utilize their recent purchase to benefit them and/or will request new features to be added based on advertisements received from your competition. It is important to reply to these inquiries and monitor review boards and discussion forums for communications between customers and prospects. Fortunately, many product review places allow a follow-up reply to be posted for all to see as a demonstration that the business owner cares about their customers.