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Vending ? The sale of products through machine with no personal contact between buyer and seller. 4. Online retailing ? A firm uses its website to offer products for sale and then ultimate consumer use their puters to make purchases from the pany. 5. Direct Marketing ? Using print or broadcast advertising to contact consumers who purchase products without visiting retail stores. ? No personal contact is required. 18 5. Direct Marketing Direct mail Firms mail letters, brochures, and even product samples to consumers, and ask them to purchase by mail or telephone. Catalog retailing Companies mail catalogs to consumers or make them available at retail stores. Televised shopping Products are promoted on dedicated TV channels and through TV mercials. 19 Direct Marketing Advantages Provide customers convenience. Low operating expenses (no retail overhead). Disadvantages Invading customers’ privacy. Customers must place orders without touching the products. Catalogs can be costly and must be prepared long before issue. Price changes can be announced only through supplementary catalogs or brochures. 20 Institutional Changes in Retailing ? Evolutionary changes in retailing follow a pattern in which an established retail institution trades up to attract a broader market, achieve higher margins, and gain more status. Then, high costs and, ultimately, high prices make the institution vulnerable to the new type of retailer which often enters the market at lowcost, lowprice store.