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Principles of Marketing - Philip Kotler

Types of retail trade enterprises

In the US, there are millions of retailers of all sizes and shapes. Moreover, there were constantly new forms of retail, incorporates certain features of the old forms, such as a modern store network «K-Mapt" combines the features of a supermarket and shops reduced prices. Since different users like different forms of trade, it is possible the simultaneous existence and prosperity of enterprises with different levels of services to consumers. Fig. 71 are four levels of service and specified commercial establishments, the usual practice, these levels.

Retail trade enterprises Self began to grow rapidly in the country as a result of the depressed state of the economy in the 30s. Today, self-service retail store services are used by all sectors of society, especially the acquisition of consumer goods and some of the pre-selection of goods. Self-service is the backbone of any trade discount. For the sake of economy, many consumers are willing to independently search, comparison and selection of goods.

Retail trade enterprises with a free selection of the goods are sellers, who can be contacted for assistance if desired. The customer completes the transaction, going to the dealer and paying him for the purchase. Overheads have shops with a free selection of goods is slightly higher than that of self-service stores, due to the need to maintain additional staff.

	Reducing the number of services			The growing number of services
	Self-service	Free selection of goods	Limited service	Full service
	The minimum number of services price attractiveness Trade in basic goods constant demand Commercial everyday products	A limited number of services price attractiveness Trade in basic goods constant demand Commercial everyday products	A small variety of services Trade in goods preselection	A wide variety of services Trade fashion goods Commercial demand for special products
	Retail stores, warehouses Grocery shop Shops Promotional mail-order companies Vending machines	Shops Promotional Haberdashery mail-order companies	Department stores peddling Telesales haberdashery	Specialty stores Department stores

Fig. 71. Classification of retailers in terms of the scope of services to consumers

Retail trade enterprises with limited services, such as those that occur in networks such as "Sears", provide the buyer a higher level of assistance from the sales personnel, since these stores are selling more goods and pre-selection customers, more information is needed. In addition, these stores offer services to consumers in the form of sales on credit and receive back the goods purchased, typically missing in shops with more limited service. So the running costs of these stores above.

Retail trade enterprises with a complete service, such pack fashionable department stores, sellers are ready to personally assist the customer in all phases of the search process, comparison and selection of goods. Consumers who want to be "served", prefer such stores. Large expenditures on the maintenance staff, a higher percentage of their product line of special demand and slow sales of goods (fashion, jewelry, cameras), a more liberal approach to the practice of return of purchased goods, the use of various credit schemes, ensuring the free delivery of purchases, technical maintenance of durable goods at home and giving customers additional facilities as rest rooms and restaurants - it all turns out for these stores high overhead. It is not surprising, therefore, that over the past few decades, the number of retail establishments with full service has been steadily declining.

In describing the types of retailers, we will classify them based on several input parameters: the proposed product portfolio, the relative attention to the prices of the nature of trade services, and a variety of shops belonging concentration of stores. Types of retail trade enterprises listed in the Table. 16, and description thereof is given below.

Table 16: Different ways of classifying retailers