STORE BASED RETAILING AND NON STORE BASED RETAILING

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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;
  1. 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.
  1. Direct selling
Both personal contacts with consumers in their homes and phones solicitation initiated by a retailer
  1. 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.
  1. 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.
  1. 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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