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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 to what you are doing, or at least the competition will not see it as a threat.

  • Specialty distribution is better able to obtain high margins than mass distribution. This will allow a price skimming strategy wherein it is possible to capture the consumer surplus over time.

  • Specialty catalogs will allow the marketer to better target prime segments like the early adopters and innovators that will be prepared to try a new product.

  • 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 also less expensive 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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