Page 387 - Introduction to Business

CHAPTER 10 Developing the Promotion and Distribution Mixes 361

Cookies by Design is an example of a small specialty store.

long hours provide a convenience to shoppers, convenience stores tend to charge
high prices.
Specialty stores carry a broad assortment of merchandise in a single merchan- specialty stores Stores that carry a
dise line. Examples are candy stores, women’s clothing stores, shoe stores, sporting broad assortment in a single
merchandise line
goods stores, flower shops, and toy stores. Generally, their prices are relatively high
because they offer a wide variety of services, such as free alterations, and because
they are specialists in their merchandise line. The Gap, Old Navy, Home Depot, Toys
‘R’ Us, Auto Zone, Office Max, Barnes & Noble, Talbot’s, and Ross’s are examples of
successful specialty stores. When a single specialty store dominates its industry, it
is called a category killer. category killer A store that dominates
its segment of the retailing industry

LEARNING OBJECTIVE 6
Describe and give the advantages of using nonstore retailers in channels
of distribution.

NONSTORE RETAILING. Nonstore retailing involves direct selling, direct market-
ing, and automatic vending. Direct selling, sometimes called door-to-door sell- direct selling Nonstore retailing
ing, consists of companies having salespeople call on customers in their homes or involving salespeople calling directly on
customers in their homes or offices
offices. Vacuum cleaners, encyclopedias, magazines, cosmetics, brushes, and
clothing, such as business attire for executives, are examples of products that are
sold this way. Companies that use direct selling often encounter three major dis-
advantages. First, salespeople’s salaries, commissions, and expenses are often a
high percentage of sales, sometimes as large as 50 percent. Second, salespeople’s
turnover can be very high. For some direct selling companies, it can be 100 percent
in a year. Third, many consumers are reluctant to purchase from direct salespeople direct marketing Using telephone and
because of some of their deceptive practices. nonpersonal media to promote products
Direct marketing uses the telephone and nonpersonal media to promote prod- and services
ucts and services. Customers can purchase by mail, telephone, or Internet. Catalog catalog marketing Offering consumers
sales of merchandise from catalogs
marketing, direct-response marketing, telemarketing, television home shopping, containing information about products
and online retailing are different types of direct marketing. In catalog marketing, from which they can order

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