2. What is Catalogue
Retailing?
In simple terms, retailers who mail
catalogues to their customers and
maintain showrooms where samples
of the products for sale are displayed
is known as catalogue retailing.
Customers can choose a product
given in catalogue and order the
same through telephone, mail or any
other way as preferred by the retailer.
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4. Advantages of Catalogue Retailing
▪ Easy to reach
hundreds and
thousands of
potential customers
just by sending one
mail.
▪ Low risk of failure of
the business. A
catalogue business
grows slowly. In this way,
as a retailer, you can
start your business by
making little investment
in the beginning.
▪ Better cash flow as
buyers is required to pay
in advance if they want
to buy something.
Hence, you don’t need
to worry about your
money getting stuck.
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5. Advantages of Catalogue Retailing
▪ Better control over
advertising
expenses as you are
spending your
money to advertise
to only targeted
customers rather
than advertising to
the mass population.
▪ Return on Investment
(ROI). With catalogue
marketing, you can
keep checking on the
Return on Investment.
▪ Increases brand visibility
and awareness. Whether
you decide to mail your
catalogue to a wide array
of prospects or a targeted
list of customers, putting a
catalogue in the mail will
get your brand some
amount of visibility no
matter what.
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6. Advantages of Catalogue Retailing
▪ Helps establish
brand voice and
style Since
catalogues are
longer form print
pieces, you have
more space to
express your brand
through words and
images.
▪ New launches of the
brand/product cannot
be available on the
stores but can be
available on the
catalogues of the
brand.
▪ The customers can place
orders on the phone,
online, and through the
mail. So no matter what
way a customer prefers to
order, your item is being
sold.
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8. Disadvantages of Catalogue Retailing
▪ Buyer cannot touch and feel
the product. Catalog marketing
business is always at a
disadvantage when it comes to
comparing with brick and mortar
businesses. Because in a store, a
buyer can try and physically see
the products before buying it,
which is not possible when you
sell products using catalogs.
▪ Collecting database is difficult.
The degree of success of
catalogue marketing depends on
the accuracy of the database,
and how descriptive the
database is about target
customers. Collecting such
information is a difficult and time
consuming task.
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9. Disadvantages of Catalogue Retailing
▪ Product offerings may
be easily copied by
competitors, because of
which catalogue
marketers must look for
other means of
differentiation.
▪ Catalog businesses
grow slowly because
sellers are required to
win the trust of their
customers to convert
them into loyal
customers.
▪ Low response rate.
People are less
responsive to catalog
marketing because of
the availability of
different shopping
platforms.
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10. Disadvantages of Catalogue Retailing
▪ You require excellent
writing skills to write
details about the
products. A poorly
written catalog will
create a negative
image of your
products.
▪ In catalogue retailing, wide
distribution of catalogues
is essential. Colorful
catalogues are expensive
and are to be printed in
advance. Supplementary
catalogues will have to be
issued to announce price
changes and new offers.
▪ Selling via
catalogue does
have a lot of initial
expense.
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