About Catalogue Retailing
Advantages & Disadvantages of Retailing
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Language: en
Added: Jul 01, 2021
Slides: 11 pages
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Catalogue Retailing
What is Catalogue Retailing? In simple terms, retailers who mail catalogues to their customers and maintain showrooms where samples of the products for sale are displayed is known as catalogue retailing. Customers can choose a product given in catalogue and order the same through telephone, mail or any other way as preferred by the retailer. 2
Advantages of Catalogue Retailing
Advantages of Catalogue Retailing Easy to reach hundreds and thousands of potential customers just by sending one mail . Low risk of failure of the business. A catalogue business grows slowly. In this way, as a retailer, you can start your business by making little investment in the beginning. Better cash flow as buyers is required to pay in advance if they want to buy something. Hence, you don’t need to worry about your money getting stuck. 4
Advantages of Catalogue Retailing Better control over advertising expenses as you are spending your money to advertise to only targeted customers rather than advertising to the mass population. Return on Investment (ROI). With catalogue marketing, you can keep checking on the Return on Investment. Increases brand visibility and awareness . Whether you decide to mail your catalogue to a wide array of prospects or a targeted list of customers, putting a catalogue in the mail will get your brand some amount of visibility no matter what. 5
Advantages of Catalogue Retailing Helps establish brand voice and style Since catalogues are longer form print pieces, you have more space to express your brand through words and images. New launches of the brand/product cannot be available on the stores but can be available on the catalogues of the brand. The customers can place orders on the phone, online, and through the mail. So no matter what way a customer prefers to order, your item is being sold. 6
Disadvantages of Catalogue Retailing
Disadvantages of Catalogue Retailing Buyer cannot touch and feel the product. Catalog marketing business is always at a disadvantage when it comes to comparing with brick and mortar businesses. Because in a store, a buyer can try and physically see the products before buying it, which is not possible when you sell products using catalogs. Collecting database is difficult. The degree of success of catalogue marketing depends on the accuracy of the database, and how descriptive the database is about target customers. Collecting such information is a difficult and time consuming task. 8
Disadvantages of Catalogue Retailing Product offerings may be easily copied by competitors, because of which catalogue marketers must look for other means of differentiation. Catalog businesses grow slowly because sellers are required to win the trust of their customers to convert them into loyal customers. Low response rate. People are less responsive to catalog marketing because of the availability of different shopping platforms. 9
Disadvantages of Catalogue Retailing You require excellent writing skills to write details about the products. A poorly written catalog will create a negative image of your products. In catalogue retailing , wide distribution of catalogues is essential. Colorful catalogues are expensive and are to be printed in advance. Supplementary catalogues will have to be issued to announce price changes and new offers. Selling via catalogue does have a lot of initial expense. 10