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

Markets & Marketing

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Answer

Modern marketing has created several non-traditional markets to meet changing consumer needs and to make use of new technologies. The main types are:

  1. Catalogue Market: A catalogue and samples of products are kept in the showroom. Customers select goods by reading the catalogue and examining the samples, place orders, and goods are delivered from the warehouse. Catalogue showrooms cut costs and margins to attract higher sales of high mark-up, fast-moving and branded items like jewellery, watches and home appliances.

  2. In-House Market: Door-to-door salespersons visit the homes of consumers to demonstrate and sell products. Initial contact may be made through phone or mailed coupons. In India, Eureka Forbes sells water filters and vacuum cleaners through this method.

  3. Mail Order Market: The seller mails price lists and publicity material to prospective buyers. Customers place orders after reading the literature, and goods are despatched through V.P.P. or courier.

  4. Automatic Vending Machines: Well-known brands of daily-use products are sold through machines installed at workplaces, metro stations, airports and schools. Customers insert coins/cash and collect the product. Mother Dairy sells milk through vending machines in Delhi.

  5. Telemarket: Products are advertised and demonstrated on television and newspapers, with toll-free numbers. Customers place orders on the toll-free number and goods are delivered through courier, payment is often by credit card.

  6. Network Market: The marketer recruits independent business people as distributors who in turn recruit sub-distributors and so on. This is also called multi-level marketing. Modicare pioneered network marketing in India. It provides wide reach and reduces cost.

  7. Direct Sales: Companies or individuals sell their products directly to consumers often through face-to-face interactions or virtual channels like video calls or social media. Representatives demonstrate products and assist customers in their buying decisions.

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