MS 612 IGNOU MBA Solved Assignment - What are the reasons for growth in non-store retailing? Discuss.

What are the reasons for growth in non-store retailing? Discuss. 

Ans

Non-store retailing is merchandising products directly to final customers outside the boundaries of a concrete store or shop. There are around 5 various types of non-store retailing: direct selling, online retailing, vending machines, telemarketing and direct marketing.

1. Direct

2. Online

3. Vending

4. Telemarketing

5. Direct Marketing

Direct selling involves personal contacts between the sellers and the buyers such as door to door selling.

Online retailing involves selling of products and services online. Seller or enterprises usually advertise or promote their products on websites.

Automated vending has the absence of personal contacts between the seller and the buyer such as coffee vending machines.

Telemarketing is selling products and services via the means of a phone such as outbound callings done in call centers from some countries in Asia like Philippines and India.

Direct Marketing refers to using advertising to promote or sell products and services like direct mail, catalog retailing, televised shopping and the comprised all types of non-store retailing other than the listed above.

Non-store retailing has grown high due to the chances that it has given to so many entrepreneurs especially those who do not have the budget to build a concrete store. Anyone can make money from non-store retailing, just a few smart selling scripts and creativity. Not much emotion to invest, no hurry for product delivery and more convenient for the customers.

If the non-store retailing is online, you can offer more ease to your customers. It is time and cost effective, you do not need to travel and visit several stores just to check a certain product, compare the prices and descriptions and then finally buy. Online buying can skip several hassles, in just a few clicks; your customer can already browse the product descriptions, compare prices and hit the buy button. You can also already display the amount of stocks available per product.

The only thing that a non-store retailing cannot provide compare to store retailing is the presence of a concrete physical store set up. Non-store retailing can even provide a more reliable sales and technical person especially if it is a direct selling, you can also request for discounts. Product presentation is also more focused in direct selling and more informative in online retailing.