ations have come together to make possible the rise of a popular form of marketing communication: the infomercial. Infomercials are part entertainment and part direct marketing, and use network, local and cable television channels to sell their wares. These programs rely not only on advances in audio-visual techniques, but also in telecommunications (to allow processing of phone orders), cable television and satellite networks. Infomercials are accurately classified as direct marketing, but have serious implications and applications for retailers, as well.
Early retail technology involved the use of cash registers, which amounted to little more than adding machines with cash drawers attached. These early machines gave retailers a way to monitor incoming and outgoing cash, but provided little additional information. Inventory was maintained through a system of stock cards, with a minimum order quantity and a reorder quantity. Physical inventory counts were performed on a periodic basis, and often required closing down the operation while the count was performed. Customer demographic information collected was rarely performed at the retail level, and what information was collected was maintained manually.
The computer revolution changed the way that retailers do business. Low-priced hardware and specialized software packages make sophisticated information gathering and management techniques available to even the smallest retailer. Information collection begins when the retailer makes decisions about which items to carry. The collection continues through the ordering process, receiving, stocking, selling and marketing. Post-sales information is used to generate additional sales, and retailers are now able to maintain perpetual (real-time) inventories. Used appropriately, the new technology can result in increased customer service, increased revenues and increased sales to an organization.
In-Store Technology - Invent...