Textbook Notes (369,071)
Canada (162,367)
RMG 200 (57)
Brent Barr (19)
Chapter

NONSTORE RETAIL FORMATS

3 Pages
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Department
Retail Management
Course Code
RMG 200
Professor
Brent Barr

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Description
NONSTORE RETAIL FORMATS Electronic  Electronic retailing (aka. E-tailing, online retailing, internet retailing): a retail format in Retailing which the retailers communicate with customers and offer products and services for sale over the internet Catalogue and  Catalogue retailing: nonstore retail format in which the retail offering is communicated to Direct-Mail a customer through a catalogue Retailing o Efficient systems for taking orders from individual customers, packaging the merchandise ordered for shipping, delivering it to homes, and handling returned merchandise  Direct-mail retailer: a nonstore retailer that commutates directly with customers using mail brochures and pamphlets to sell a specific product or service to customers at one point in time Types of Catalogue and Direct-Mail Retailers A. General merchandise Catalogue Retailers: nonstore retailers that offer a broad variety of merchandise in catalogues that are periodically mailed to their customers B. Specialty Catalogue Retailers: a nonstore retailer that focuses on specific categories of merchandise, such as fruit, gardening tools, and seeds and plants Issues in Catalogue Retailing  Difficult for smaller catalogue and direct mail retailers to compete with large, well established firms that have embraced a multichannel strategy  Mailing and printing costs are high and increasing  Difficult to get consumers’’ attention as they are mailed so many direct mail promotions  The length of time required to design, develop and distribute catalogues makes it difficult for catalogue and direct mail retailers to respond quickly to new trends and fashions Direct Selling  Direct selling: a retail format in which a salesperson, frequently an independent distributor, contacts a customer directly in a convenient location (either at a customer’s home or at work) and demonstrates merchandise benefits, takes an order, and delivers the merchandise to the customer  The largest categories of merchandise sold through direct selling are personal care, home/family care, wellness, other services, and leisure/educational items Two Special Types of Direct Selling A. Party Plan System: salespeople encourage people to act as hosts and invite friends or coworkers to a “party” at which the merchandise is demonstrated, the host or hostess receives a gift or commission for arranging the meeting B. Multilevel Network: a retail format in which people serve as master distributors, recruiting other people to become distributors in their network o Pyramid scheme: when the firm and its program are designed to sell merchandise and services to other distributors rather than to end users Television Home  Television home shopping (aka teleshopping):a retail format in which customers watch a Shopping TV program demonstrating merchandise and then place orders for the merchandise by phone Three Forms of electronic home shopping retailing are: A. Cable channels dedicated to television shopping B. Infomercials: TV programs, typically 30 minutes long, that mix entertainment with product demonstrations and solicit orders placed by telephone by consumers C. Direct response advertising: advertisements on TV and radio that describe products and provide an opportunity for customers to order them Vending  Vending machine retailing: a nonstore format in which merchandise or services are stores Machine in a machine and dispensed to customers when they deposit cash or use a credit card Retailing  Placed at convenient, high traffic locations such as workplace, the airport, or on university campuses SERVICES RETAILING  Services retailers: organization that offers consumers services rather than merchandise  Eg. Banks, hospitals, health spas, doctors, legal clinics, entertainment firms, universities Merchandise/Service Continuum  Wholesale club All Goods/No Services  Supermarket  Category specialist  Specialty/department store  Optical centre  Restaurant  Airline  Banks/University All Services/No Goods Differences Between Services and Merchandise Retailers Services Merchandise Retailers Intangibility  Customers cannot se
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