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Unit 1: Introduction to Retail Environment

Irrespective of the way we access the e-retailer, whether it is via the PC, the mobile phone or the Notes
hand-held personal organizer, consumers increasingly expect retail organizations to be able to
offer flexibility in terms of information gathering (to supplement pre-sale shopping), purchase
transaction, and taking delivery of the product or service (post-sale activity). By using a number
of different retail formats, retail businesses are better able to allow consumers this flexibility.
Most large retailers in the UK now fall into the category of the ‘multi-channel’ retailer, which is
a term used to describe the strategy of using more than one ‘route’ to consumer markets.
Typically, the multi-channel retailer runs stores and has a transactional website (the so called
‘clicks-and-mortar’, or ‘clicks-and-bricks’ approach), but other combinations might be stores/
catalogue, stores/catalogue/website, stores/website/direct mail. Offering alternative ways to
shop may encourage customers to remain loyal to a favoured retail brand as lifestyles change,
but it can also present retailers with new operational and competitive challenges.

Catalogue and Mail Order Sales

Catalogue marketing helps companies reduce their cost per customer and increase their reach
significantly. Catalogue retailing is a convenient way for customer to purchase products. Retailers
too have an advantage in catalog marketing as they can operate from remote locations with
minimum store operating expenses and need not spend heavy amounts on store décor. However,
catalog marketing is suitable only for a limited range of products.

Example: Amazaon.com, an e-tailer in the US, mails its broachers to customers before
occasions of festivals like Christmas and Father’s day. The catalog contain information related
to products such as books, electronics, toys and games, apparels and accessories, home and
gardening products and software. A toll-free number provided for customers to place orders.

Direct Selling

Direct selling is a dynamic, vibrant, rapidly expanding channel of distribution for the marketing
of products and services directly to consumers. Direct selling is the marketing of products or
services to consumers through sales tactics including presentations, demonstrations, and phone
calls. It is sometimes also considered to be a sale that does not utilize a “middle man” such as a
retail outlets, distributors or brokers. This is needed where the products value needs more
explanation and cannot be purchased off the shelf.
At its best, direct selling can be an opportunity for individuals to find fulfillment, express their
entrepreneurial talents and gain financial independence.
Direct selling involves people and is a part of direct marketing which additionally involves the
use of media, print which is handled by the business.
Features: In direct marketing, marketers invite customers to respond to their marketing efforts
through the telephone, email, etc.

The effectiveness of direct marketing can be measured easily because direct feedback is available
to marketers from customers
In direct marketing, generally, a data base of customers is maintained. This helps marketers
understand customers and serve them better, and eventually gives the marketer a competitive
advantage.
Direct marketing evaluates the direct response patterns of customers, enables a company to
formulate future marketing strategies for building customer loyalty and for profitable business
growth.

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