Question

Modern marketing has created several non-traditional markets. Explain the main types of non-traditional markets.

Discuss Catalogue marketing and telemarketing as important methods of non-conventional marketing.

Answer 1

Modem marketing has created several nontraditional markets. The main types of non-traditional markets are as follows:

1. Catalogue Market: In this type of market, a catalogue and samples of products are kept in the showroom. The catalogue contains details of goods and their prices. Customers select goods by reading the catalogue and examining the samples. They order the goods, and orders are sent to the warehouse for supply. Goods are delivered to the customer in the showrooms. A copy of the catalogue may be mailed to regular customers to enable them to prepare the order at home and pick up the goods from the showroom. In a catalogue market, a broad range of high-mark, fast-moving, and branded goods are sold at discount prices. These include jewellery, watches, cameras, luggage, home appliances, toys, power tools, sports items and so on. Catalogue showrooms cut costs and margins to attract a higher volume of sales.
2. In-House Market: Door-to-door salespersons visit the homes of consumers and offer products to them. Before the visit, initial contact may be created through telephone or mailed-in coupon. This is an effective method and offers great convenience to the customer. In India, Eureka Forbes sells its water filters and vacuum cleaners through this method. This is, however, a time-consuming and costly method. In some cases, a host invites friends to a party. The salesperson demonstrates the products at the market and takes orders from the invitees. This offers a friendly and social environment for shopping.
3. Mail-order market: In this market, the seller mails price lists and other publicity materials to prospective buyers. Customers place orders after reading advertisements and the mailed literature. Goods are despatched through V.P.P. or courier.
4. Automatic Vending Machines: Vending machines sell well-known brands of products for daily use. These machines are installed at workplaces, schools, and public places. Customers insert coupons or cash into the machine and collect the product. Vending machines sell cold drinks, tea, coffee, candy, snacks, and so on. In Delhi, Mother Dairy sells milk through vending machines.
5. Telemarket: The product is advertised and demonstrated on television and in the newspapers. Toll-free telephone numbers are mentioned in the advertisement. Customers place orders on the toll-free number and orders are executed through courier. Television has become a popular medium for direct marketing due to growing satellite networks and cable channels. Telephone shopping is very convenient and cost-effective. Such home shopping is available round the clock, and payment can easily be made through a credit card.
6. Network Market: The marketer recruits independent business people who act as distributors. These distributors, in turn, recruit and sell to sub-distributors, who eventually employ people to sell the product in customers' homes. Amway pioneered network marketing, which is also known as multi-level marketing. It provides a wide reach and reduces costs. The customer saves the time and cost involved in shopping. Products not available at retail outlets can also be made available to consumers.