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Retailing 3

Non-store retailing involves selling goods and services without a physical retail location. It is growing rapidly and accounts for around 20% of retail sales. Key forms of non-store retailing include direct marketing through catalogs, direct mail, telemarketing and television; direct selling through in-home demonstrations; and vending machines for automatic sales. Advantages are lower costs than operating stores, but disadvantages include less personal interaction and security concerns over credit card use. New technologies are expanding opportunities in non-store retailing.

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Klaus Almes
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165 views

Retailing 3

Non-store retailing involves selling goods and services without a physical retail location. It is growing rapidly and accounts for around 20% of retail sales. Key forms of non-store retailing include direct marketing through catalogs, direct mail, telemarketing and television; direct selling through in-home demonstrations; and vending machines for automatic sales. Advantages are lower costs than operating stores, but disadvantages include less personal interaction and security concerns over credit card use. New technologies are expanding opportunities in non-store retailing.

Uploaded by

Klaus Almes
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Store Retailer VS Non Store Retailer

NON STORE RETAILING


• The selling of goods and services without establishing a
physical store is known as Non-Store Retailing.

Vending machines
Direct to home selling
Telemarketing
Catalog sales
Mail order
And television marketing programs.
• A fast growing method used by retailers to sell products is
through methods that do not have customers physically
visiting a retail outlet.
• A large majority about 80% of retail transactions are made
in stores. However, a growing volume of sales is taking place
away from stores. It is estimated that non-store sales
account for almost 20% of total retail trade.
Advantages on non store retailing
• Its freedom from a physical retail presence.
• The high fixed cost of operating retail outlets is limited.
• The breadth of customer’s coverage is considerably wider
than is possible with an individual retail location.
• Companies do not have to spend large sums or dilute
stock building new locations, acquiring them.
• This truly gives the non store retailer a global market from
a cheap, centralized location.
Disadvantages on non store retailing
• There is also the fear of credit card abuse and mail fraud,
both related to the sense of detachments that not holding a
prospective purchase brings.
• And since most of us do not have the luxury of pricey T1
Internet connection, we must still deal with painfully slow
connections.
DIRECT MARKETING
DIRECT MARKETING
• The use of consumer direct channels to reach and deliver goods
and services to consumers without using marketing middlemen.
• It helps the companies to opening dialogue directly between
themselves & the end consumers of their products.
• It is targeted at individual users rather than through
intermediaries.
• Company markets through various advertising media that
interact directly with consumers, generally encouraging the
consumer to make a direct response.
Direct Mail and Catalogue Marketing
Direct Mail

• It involves sending an offer, announcement , reminder


or other item to a person through mail
• Marketers send out millions of mail pieces each year,
using highly selective mailing lists.
• It is a popular medium as it permits target market
selectivity, can be personalized, is flexible.
• Cost involved is very high than the mass media but the
people reached are better prospects.
Catalog marketing
• In this type of marketing seller prepares catalogues of
merchandise or products and sells directly to customers.
• Catalogues are generally in printed form but can also be
distributed in the form of CDs .
• To reduce printing and distribution costs catalogues are
being increasingly made online.
• Products from various companies or vendors may be
combined into a single catalogue to provide a one point
shop for customer looking out for a particular type of
product
CATALOG MARKETING
E CATALOG
Telemarketing
• is the use of telephone and call centers to attract
prospects , sell to existing customers and provide service
by taking orders and answering questions.
• Companies use call centers for inbound telemarketing- receiving calls
from customers and outbound marketing- initiating calls to prospects
and customers.
• Effective telemarketing depends on choosing the right telemarketer ,
training them well & providing performance incentives.
BPO and CALL CENTERS
Television Marketing
Direct response marketing Television
• Direct marketing via television has two basic forms:
 long form (usually half-hour or hour-long segments
 short form, which refers to typical 30-second or 60-
second commercials
• Infomercials promote products that are complicated or
technologically advanced, or require a great deal of
explanation.
Electronic Retailing
• Electronic retailing also called e-tailing and Internet retailing
in which the retailer and customer communicate which each
other through an interactive electronic network.
• Generate sales as the major source of revenue for an online
retailer or as a complementary source of revenue for a store-
based retailer
• Enhance the retailer's image
• Reach geographically dispersed consumers including foreign ones
• Provide information to consumers about the products carried,
store locations, usage information etc.
B2C e-commerce is a process for selling products directly to consumers from a
website. Consumers browse product information pages on your website, select
products and pay for them before delivery at a checkout, using a credit or debit card,
or other electronic payment mechanism.
The Changing Face of Retail
e-tailing models now everywhere on the web.
• Review:
Types of Non Store Retailing:
1. DIRECT MARKETING
direct mail and catalogue marketing
Telemarketing
Television marketing
Online shopping (E-Tailing)
2. DIRECT SELLING
3. VENDING MACHINES
DIRECT SELLING
Direct selling is also defined as personal contact between a sales person and
a consumer away from a retail store. This type of retailing has also been
called in home selling.
• There are many advantages of this method like:
• Personal touch in dealing with customers
• Complete demonstration can be made
• Consumer can purchase it in a more relaxed atmosphere
• Most convenient way of shopping for those who do not opt for
shopping outside
• Can be a small business with low overhead costs
• This is expensive as there are the costs of hiring, training, managing
and motivating the sales force and the sales person gets a 20-50 percent
commission.
Two kinds of direct selling
• One to one selling: A sales person visits and tries to sell products to a
single potential user. Tupperware pioneered the home-sales approach
in which friends and neighbors gather in a home where Tupperware
products are demonstrated and sold.
• One to many (party) selling: A salesperson goes to the home of a
host, who has invited friends and neighbors to the party. The
salesperson then demonstrates the products and takes orders. Top
performing sales people are often highly regarded.
Automatic Vending
• The sale of products through a machine with no personal contact
between buyer and seller is called automatic vending. The appeal of
automatic vending is convenient purchase.
• Products sold by automatic vending are usually well-known presold
brands with a high rate of turnover. The large majority of automatic
vending sales comes from the " 4 C's" : cold drinks, coffee, candy and
cigarettes.
• Automatic vending is a unique area in non-store merchandising
because the variety of merchandise offered through automatic
vending machines continues to grow. Initially, impulse goods with
high convenience value such as cigarettes, soft drinks, candy,
newspapers, and hot beverages were offered.
Walker Digital Vending Machine
Future Aspects of vending machines
• Further, occasional vending-related scams may scare some
entrepreneurs away from this business.
• Debit cards that can be used at vending machines are becoming more
common.
• When this card is inserted into the machine, the purchase amount is
deducted from the credit balance.
• Technological advances also allow operators to monitor vending
machines from a distance, thereby reducing the number of out-of-
stock or out-of-order machines.

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