The structure of non-store retailers and how the choice of channel changes aspects of the business plan.

Full Answer Section

      chosen channel influences various aspects of the business plan. For instance, a company opting for direct selling may invest heavily in sales training and commission structures, while an online retailer will prioritize website development, digital marketing, and efficient fulfillment systems. The lack of physical stores also translates to reduced overhead costs for non-store retailers, allowing them to potentially offer competitive pricing or invest more in customer service and targeted advertising. Ultimately, the choice of channel dictates how a non-store retailer reaches its target audience, impacting its marketing strategies, resourcing needs, and overall business model.

Sample Answer

      Unlike traditional brick-and-mortar stores, non-store retailers don't rely on physical locations to sell products. This difference in structure significantly impacts how businesses operate and plan. Non-store retailers can be broadly categorized into three main channels: direct selling, distance selling, and online selling. Direct selling involves representatives reaching customers directly, often in their homes or at events. Distance selling encompasses mail-order catalogs, telemarketing, and vending machines. Online selling, the most prominent channel today, utilizes websites and mobile apps for product browsing, purchasing, and delivery.