You represent a group of investors who are exploring alternatives for entering the retailing business. Many of these investors have significant past experience working for other retailing companies and they realize the retailing business is very competitive. They also realize there is a high failure rate for startups in this industry. They ask you recommend a retailing strategy that would meet the following criteria:
$\bullet$No storefront would be needed
$\bullet$No personal selling would be needed
$\bullet$No traditional store operating expenses are necessary
$\bullet$Customers can place orders via the Internet, telephone or mail
$\bullet$Low operating expenses and limited customer service required
Which of following retailing strategy are you going to recommend they use?

Question

You represent a group of investors who are exploring alternatives for entering the retailing business. Many of these investors have significant past experience working for other retailing companies and they realize the retailing business is very competitive. They also realize there is a high failure rate for startups in this industry. They ask you recommend a retailing strategy that would meet the following criteria: 
$\bullet$No storefront would be needed
$\bullet$No personal selling would be needed
$\bullet$No traditional store operating expenses are necessary
$\bullet$Customers can place orders via the Internet, telephone or mail
$\bullet$Low operating expenses and limited customer service required
Which of following retailing strategy are you going to recommend they use?
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Quizplus · Accepted Answer

Catalog marketing meets all of the criteria listed in the question. Customers can place orders via the Internet, telephone or mail, and no storefront or personal selling is needed. Traditional store operating expenses are not necessary, and low operating expenses and limited customer service are required. Catalog marketing has been successful for many retail companies, including companies such as Lands' End and L.L. Bean.

You Represent a Group of Investors Who Are Exploring Alternatives ∙\bullet∙

You Represent a Group of Investors Who Are Exploring Alternatives $\bullet$