There is an increasing array of non-store shopping alternatives from which we can choose. Furthermore, our culture has evolved such that this trend only stands to grow.

Why has non-store retailing grown? There are numerous reasons:

• Availability (i.e., the Internet). Shoppers now have access to many products not regularly available in their home shopping area.
• Convenience. These vendors are often open 24/7, so shopping can occur whenever and wherever the customer desires.
• Fast-paced lifestyles. Consumers lead busy lives, often with little time for shopping. Thus, the 24/7 aspect fits in nicely with busy schedules.
• Dislike for shopping in stores. Crowds and unruly shoppers, not to mention dealing with children, can make shopping an unpleasant experience. Buying from non-store vendors removes these problems.
• Time constraints. In addition to our busy lives, it takes a lot of time to shop in several stores. However, non-store retailers offer a great time savings to customers who can peruse catalogs or web pages much more quickly than having to visit stores personally.
• Low overhead for the retailer. Not having to support expensive brick-and-mortar establishments offers non-store retailers a significant cost savings over their counterparts.

I. Catalog and direct mail retailing

There is a multitude of catalog retailers in the US (many of whom are now also selling via the Internet). General merchandisers as well as specialty retailers are able to showcase their wares in a way that customers find appealing. Consumers will often save their catalogs for many months, referring to them as needed. It is like an advertisement that will not die (as long as the customer retains the catalog).

Catalog retailing is done at both the final customer level, and also between intermediaries. Manufacturers and wholesalers rely on catalogs to sell to other channel members. But it is only the final customer in whom we are interested in this chapter.

A great degree of creativity can be used with catalog marketing. A good example is the DAK catalog (Drew Alan Kaplan), a retailer of household specialty items. Mr. Kaplan's catalog is written in the first-person, and he gives lengthy anecdotes of his experiences with the products he sells. This "personal" touch makes his method very successful.

Other marketing efforts that occur through the mail are the direct mail flyers and brochures that companies send to consumers. While not nearly as elaborate (or as impressive) as catalogs, they may still be effective. These include the so-called "junk mail" we receive nearly every day, as well as flyers that are included in our credit card bills.

The primary key to success in mail-order marketing is to have a good mailing list. About 16 of the US population moves every year, so maintaining up-to-date mailing lists is difficult. Furthermore, since bulk mail cannot be forwarded to another address, many catalogs, brochures, and flyers wind up in the wrong hands.

A modern twist to the printed catalog is the CD-ROM catalog. Utilizing the latest technology, catalogs can be "printed"in electronic format in a way that is much cheaper than paper and ink. Furthermore, it is much cheaper to mail a CD than it is to mail a catalog.

II. Vending machines.

A vending machine is essentially a portable store. All that is needed is an electrical outlet. The US has not capitalized on the potential of vending machines, probably because of legal issues. In fact, cigarette vending machines can now only be located in bars, whereas they were once located everywhere. Furthermore, laws governing the sales of alcoholic beverages keep us from selling beer in vending machines (like is done in some countries). We have also rejected buying many food items through machines, probably because of fears over food safety and freshness. Thus, in the US, vending sales are pretty much limited to just soft drinks and snack items.

As a class exercise, let us list the different types of vending machines currently in use in the USA (You should be able to list at least 30!):

III. TV shopping

Cable television has brought with it 24-hour home shopping networks that do nothing but sell products. Some stations (notably QVC) have a very slick, professional format that is inviting to many people. Infomercials are a second form of TV shopping, featuring 30- and 60-minute program length shows that feature just one product. The format is very professional, and often viewers will not even realize they are watching a commercial. The third type of TV shopping is that done through direct response ads, like for CDs, cutlery, etc.

It is interesting to note that it took marketers many years to realize that television could be used as a selling medium, more than just for 30- and 60-second commercials for products available in stores. In other words, the TV could be used as a medium to deliver a video catalog of sorts.

IV. Direct Selling

This phenomenon has changed greatly through the years. What was once the door-to-door salesman has now become the beauty consultant (Avon), the nutrition expert (Shaklee), and the traveling gourmet (Schwan's). Door-to-door selling is more difficult today because of two-income families. Thus, direct sellers must be creative to be able to find times to meet with clients and prospects.

Another type of direct selling is the multi-level marketer, which often sells vitamins and supplements, but in the case of Amway, sells virtually everything. The idea behind MLMs is for people to start their own "home business,"and thereby circumvent traditional channels of distribution.

V. The Internet

Without doubt, the biggest revolution in retailing is the Internet. What started as strictly a research and defense installation has become the fastest-growing retail format in our history.

In just a few years, businesses have gone from using the Internet for simple "brochureware"to hosting e-commerce sites. One only has to log on to see how ubiquitous the onsline store has become. In fact, a company that does not sell on the web is rapidly becoming a dinosaur.

What's to keep online shopping from growing faster? Initial consumer reluctance and fear of credit card security has kept many people from shopping online, but mostly it is just fear over the unknown, much like the fears that people had with mail-order marketing several decades ago.

These fears will soon pass, and online shopping will become as common as going to a traditional "brick and mortar"store.

Unfortunately, the first few years of the 21st century withnessed the demise of many dotcoms. Public (and investor) confidence dropped, and the glow of the dotcom explosion dimmed. Simply put, many dotcoms were attempting to sell things via the web that probably should not have been offered there. Just because a web site can be built that has a shopping cart feature, does not mean that it can be used to sell any and everything. Examples: pets.com, furniture.com, and garden.com. These are three categories of purchase that are best left to a retail storefront.

If anything, many of the "dot-bombs" were developed by people with more computer savviness than business savvy. Furthermore, they caught the attention of investors with bloated billfolds, who were all too eager to try to hitch a ride on the get-rich train. Thus, we had the blind leading the blind.

As 2003 unfolds, we see the survivors of the dotcom era starting to recover some ground, and in some cases, actually posting a profit (see Amazon.com). The survivors have learned that they must do business the same way everyone else does, which means they must offer products or services that customers want, at prices they can afford, and available as needed. The novelty of computers and the internet has long worn off, and it's back to business-as-usual.

VI. Multi-Channel Retailing

The trend in retailing is toward not only scrambled merchandising (with retailers selling items once out of their domain), but also multi-channel (with retailers utilizing two or more marketing channels to distribute their products). It helps retailers make their products more readily available wherever customers may be.

As the text discusses, the three main categories for multi-channel retailing are stores (which, by virtue of scrambled merchandising, are not limited to just one type of store), catalogs (notice how Sam's Club and even amazon.com send catalogs to regular customers), and the internet (a bricks-and-clicks approach). By covering all the bases, retailers can be in several places at once.

Stores offer the obvious advantages of touch and feel, browsing, personal attention, and the only place where cash is accepted. But stores offer more than just this. They offer a social experience (entertainment and being with friends or family). Finally, the allow for immediate gratification, especially when it comes to impulse items and/or those products in which we are highly involved.

Catalogs provide a "store" that can remain in a customer's magazine rack for several months, and can serve as reference material. It allows for nice visual presentation of goods, offers convenience (pre-shopping). and also safety (assuming that orders can be placed by phone or mail).

Finally, the companion web site allows for stores to be everywhere, even to the point of having web kiosks inside their brick-and-mortar stores. Order can be placed from anywhere. If an item is not in stock at a store, an order can be placed from the in-store kiosk. If ordering from home, customers can either have the item shipped to their door, or have it ready for pick-up at their local store.

VII. Conclusions

Retailing can exist in many varied formats, and need not occur in a store. Furthermore, retailers are hedging their bets and utilizing several formats simultaneously in an effort to be available whenever, wherever. In an era that pits time-pressed consumers against the rather finite resources of traditional stores, these multi-channel strategies allow retailers to hang on to their customers a little better and not let them slip away to a competitor.