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Store
based retailing
Store-Based
retailers – By far the predominant method consumers use to obtain
products is to acquire these by physically visiting retail outlets
(a.k.a. brick-and-mortar). Store outlets can be further divided
into several categories. One key characteristic that
distinguishes categories is whether retail outlets are physically
connected to one or more others stores:
- Stand-Alone – These are retail outlets that do not have other retail outlets connected.
- Strip-Shopping Center – A retail arrangement with two or more outlets physically connected or that share physical resources (e.g., share parking lot).
- Shopping Area – A local center of retail operations containing many retail outlets that may or may not be physically connected but are in close proximity to each other such as a city shopping district.
- Regional Shopping Mall – Consists of a large self-contained shopping area with many connected outlets.
Non-store
based retailing
In
non-store retailing, traditional retail stores are not used to sell
products. Non-store retailers use direct marketing (catalogue
marketing and direct mail), direct selling (person-to-person selling,
party plans, multi-level marketing) and automatic vending machines to
sell products to consumers. Non-traditional retailers use new
channels such as the Internet, video kiosks, and video catalogues to
promote and sell products. Another type of classification divides
retailers into goods-based and services-based retailers depending
upon whether they sell merchandise or services to consumers. In this
type, retailing is done without conventional store-based locations.
Non-store retailing includes such services as vending machines,
direct-to-home selling, telemarketing, catalog sales, mail order, and
television marketing programs.
It
includes the following types;
- Direct marketing
Retailers
that are principally selling via direct methods may have a primary
location that receives orders but does not host shopping visits.
Rather, orders are received via mail or phone.
- Direct selling
Both
personal contacts with consumers in their homes and phones
solicitation initiated by a retailer
- Vending machines
While
purchasing through vending machines does require the consumer to
physically visit a location, this type of retailing is considered as
non-store retailing as the vending operations are not located at the
vending company’s place of business.
- Online retailing
The
fastest growing retail distribution method allows consumer to
purchase products via the Internet. In most cases delivery is
then handled by a third-party shipping service.
- Video kiosk
Free
standing, interactive, electronic computer terminal that displays
product and related information in a video screen. Commonly there
will be a touch screen for consumers to make selection.
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