NON STORE RETAILING

PRESENTED BY:TANYA SINHA

SARANSH RASTOGISHRUTI BAKSHI

DEFINITION:The selling of goods and services without establishing a physical store is known as Non-Store Retailing. It includes such services as vending machines, direct-to-home selling, telemarketing, catalog sales, mail order, and television marketing programs.

WHO ARE THE CUSTOMERS?

• Non store retailing is patronized to time conscious consumers and consumers who can't easily go to stores, or compulsive buyers.

• Most non-store retailers offer consumers the convenience of buying 24 hours a day seven days a week and delivery at location and time of their choice.

Direct selling

Automatic vending

Tele marketing

Direct marketing

Online retailing

Electronics retailing

Types of non store retail format

1.DIRECT SELLING•Direct selling is defined as personal contact between a sales person and a consumer away from a retail store.•It is also called as home selling.

The two kinds of direct selling are

Door to Door- Door-to-door is a sales technique in which a salesperson walks from the door of one house to the door of another trying to sell a product or service to the general public.Party Pl -The party plan is a method of marketing products by hosting what is presented as a social event at which products will be offered for sale.

•Advantages•Personal attention to customer.•Convenience of time and place of presentation.

•Disadvantages•High costs make it the most expensive form of selling.•Negative consumer view of direct selling.

•Sometimes called telephone selling, telemarketing refers to a sales person initiating contact with a shopper and closing a sale over the telephone.

2.TELE MARKETING

ADVANTAGES:•Increases your sales territory (person can win customers nationwide or globally without leaving their home or office) while reducing the cost of sales visits.

3.ONLINE RETAILIINGOnline retailing is basically a Web-enabled interface between your company and your target consumer for selling products and services on the Web with the facility of online payment.

ADVANTAGES:•Convenient- Convenience includes the overall ease of finding a product, time spent on shopping, minimization of overall shopping effort.•No need for vendors & no pressure to buy•Able to compare product price & featuresDISADVANTAGES:•Enjoyment of retail shopping lost- Many enjoy shopping with others and it is often a good way to make social connections. When shopping independently online, the enjoyment is lost.•Product category risk- Product category risk is related to functional products such as apparel, perfume, and electronics, that have functions that cannot fully be experienced online.

4.AUTOMATIC VENDING•The sale of products through a machine with no personal contact between buyer and seller

is called automatic vending.

ADVANTAGES & DISADVANTAGES:•Vending machines can expand a firm's market by reaching customers where and when they cannot come to a store. Thus vending equipment is found almost everywhere, particularly in schools, work places and public facilities.

•Automatic vending has high operating costs because of the need to replenish inventories frequently. The machines also require maintenance and repairs.

5.DIRECT MARKETINGDirect marketing is a form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising.

ADVANTAGE:•Direct marketing provides shopping convenience.DISADVANTAGES:•Consumers must place orders without seeing or touching the actual merchandise. To off-set this, direct marketers must offer liberal return policies. •Furthermore, catalogs and to some extent, direct mail pieces are costly and must be prepared long before they are issued. •Price changes and new products can be announced only through supplementary catalogs orbrochures.

6.ELECTRONICS RETAILINGThe e-retailing(e-Retailing, e-Tailing, etc.) is the concept of selling of retail goods using electronic media, in particular, the internet.

ADVANTAGES:Internet is always open — seven days a week, 24 hours a day — and bargains can be numerous onlineDISADVANTAGES:Problems with the Payment System:People in India are not used to the online shopping system and moreover the online payment system through the credit card is also totally alien to them.Problems with Shipping: The customers using the online shopping channel should be assured that the products that they have ordered would reach them in due time.

ADVANTAGES OF NON STORE RETAILING

• Its freedom from a physical retail presence.• The high fixed costs of operating retail outlets are

eliminated.• The breadth of customer 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, or acquiring them.• This truly gives the non-store retailer a global market

from a cheap, centralized location.

DISADVANTAGES OF NON STORE RETAILING

• There is also the fear of credit card abuse and mail fraud.

• Since most of us do not have the luxury of a pricey T1 Internet connection, we must still deal with painfully slow connections.

Future Expectation/Growth of Non-store retailing:

•http://www.smallbusinessnotes.com/marketing-your-business/the-advantages-and-disadvanteges-of-telemarketing.html#b•http://www.ocf.berkeley.edu/~jinnie/advantage.html•http://freeinfo.blogsome.com/2005/12/14/advantages-and-disadvantages-of-vending-machine-placement/•http://en.wikipedia.org/wiki/Direct_marketing•http://www.fibre2fashion.com/industry-article/29/2804/introduction-to-electronic-retailing1.asp

BIBLIOGRAPHY

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