Specialty Catalogs
Specialty catalogs allow the marketer to
better target prime segments, like the early adopters and innovators
that will be prepared to try a new product.
Specialty catalogs are a promotion and distribution technique commonly
employed by direct marketers. They describe, graphically and verbally,
a limited range of products. Specialty catalogs are a good promotion/distribution
choice for new products. They are also most effective when using a niche
strategy. There are several reasons for this:
It is less risky than a mass distribution strategy. If it is not successful,
it can be altered with only moderate expense.
It is a stealthy way of testing market acceptance of the product. It
doesn't alert the competition, or at least the competition will not
perceive it as a threat.
Specialty distribution
is better able to obtain high margins than mass distribution. This will
allow a price skimming strategy, where it is possible to capture the
consumer surplus over time.
Catalog response is immediate. Product problems will become evident
before too many products are shipped.
Catalogs are less expensive than sales forces. The average cost per
sale is lower than most forms of advertising where low volumes are involved.
The printed medium is suitable for new products or any other situation
where detailed information needs to be communicated.
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