First Step Marketing

Although mail-order exists, it is relatively small and undeveloped. The potential for growth is great. The market includes people who have neither the time nor the inclination to go shopping, as well as people living outside the major consumer centres.

There are a number of advantages to a mail-order business. It is relatively easy and cheap to set up, meaning that barriers to entry are low. One of the quickest ways to exploit a new opportunity or a novel product is to set up a mail-order operation. Many mail-order businesses can be started from home and run on a part-time basis.

The choice of advertising medium is crucial and is as important as a conventional retailer’s location. So too is the choice of product — some are better suited to mail order than others. The following types of products are well suited to the mail-order business:

• Any well-known product that can be offered at less than the current retail price, while still yielding a good profit margin. Vitamins and photographic film are examples.
• Subscription products. Examples include magazines; books (book club); collectables (sets of objects); compact discs; cassettes and video tapes.
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• Speciality items not carried by retail shops. A few possibilities are: gourmet foods; artwork; car accessories; souvenirs to commemorate a special event; plans, designs or kits; kitchen utensils and cutlery.
• Products which have been launched overseas, but are not available in this country.
• Products which people may prefer to buy anonymously or at a distance, such as: sex aids and literature; surveillance and security devices; matchmaking services; slimming aids; anti- ageing and acne treatments.
• New products and novelties, especially those that need to be described in some detail. For example, new tools or gadgets; correspondence courses; toys and practical jokes; patent and natural medicines or cures; money-making schemes; fitness equipment.

The following, by contrast, are poor mail-order prospects:

• Standardized and brand-name goods which can be bought at supermarkets and other retail outlets. Unless a substantial price advantage can be offered, there is little incentive for people to buy through mail-order.
• Products with properties that are difficult to communicate through advertisements, for example, perfumes and music (unless well known).
• Products with a low profit margin, such as food.

Products that are unlikely to lead to repeat sales (this limits the estimation of profits).

In general, mail-order products should be sold at a relatively low price, and should be easy to package and inexpensive to mail. Price and promotion are important, as there is no opportunity for personal selling techniques. Customers must perceive that they are getting good value for money. A powerful, attention-getting advertisement is critical to the success of the enterprise: promise readers (truthfully!) that they will benefit from the product or service; use active rather than passive sentences; and use the word ‘you’. One of the most important factors is to make sure that the publication carrying your advertisement is read by your target customer.

Here is a list of specific products and services which may be good mail-order prospects:

• Advice (e.g. horoscopes, handwriting analysis, career)
• Alarm clocks (especially those with novel features)
• Book clubs
• Car enhancement kits or products Child and baby care products
• Collector’s items (books, plates, prints, souvenirs, dolls) Computer software and peripherals
• Correspondence courses
• Cosmetics (not perfumes)
• Hampers (for special occasions and presents)
• High-technology items
• Hobby and craft items
• Home-manufactured craft items
• Imported products not available in retail outlets
• Kitchenware
• Low-cost fashion jewellery
• Personalized gifts (e.g. monogrammed linen)
• Sewing patterns
• Self-improvement tapes and books Short-term insurance
• Sports equipment and accessories Traditional and herbal medicines Vitamins and patent medicines

Possibly related posts: (automatically generated)
Mail-order Business

This entry was posted on Saturday, May 2nd, 2009 at 8:12 am and is filed under Advertising, Jobs, Promotion, Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.