Chapter 6

Web, Nonstore-
Based, and
Other Forms of
RETAIL
Nontraditional MANAGEMENT:
Retailing A STRATEGIC
APPROACH,
10th Edition

BERMAN EVANS
 Nonstore Retailing

 Retailing strategy that is not store-based

 Divided into two- traditional retailing
( direct marketing ,direct selling, vending
machines) and non traditional ( web
retailing and video kiosk)

6-2
 Direct Marketing

 Customer is first exposed to a good or

service through a
nonpersonal( leaflets,brochures,catalogue
) medium and then orders by mail, phone,
fax, or computer
 Eg- catalogue mail order
 Television shopping- star cj alive,asian sky
shop

6-3
 Strategic Business Advantages of
Direct Marketing
 Reduced costs
 Lower prices
 Large geographic coverage
 Convenient to customers
 Ability to supplement regular business
without additional outlets

6-4
 Strategic Business Limitations
of Direct Marketing
 Products cannot be examined prior to
purchase
 Costs may be underestimated- catalogue can
be expensive, monitoring purchasing may be
costly
 Response rates to catalogs under 10%
 Long lead time required
 Bad name to industry can be given by some
firms by late delivery

6-5
 Direct Marketing requires database management
which can be sold -Data-Base Retailing

 Collection, storage, and usage of relevant

customer information
* name
* address
* background
* shopping interests
* purchase behavior

6-6
 Direct selling
• Customer is contacted directly at his home
etc and sales is done on the spot
• Eg Aqua Guard

6-7
 Vending Machines
• Machines to sell products like soft drinks,
snacks etc in the absence of retailer
• Time saving

6-8
 Video kiosks
• It is a self supporting,computer terminal that
displays goods on a screen and permits
viewer to make selection.
• By selecting the product it gives details

6-9
 web retailing
• Sellling through internet
• Convenience of access
• Lower cost
• Amazon.com

6-10