home Marketing Principles of Marketing - Philip Kotler

Principles of Marketing - Philip Kotler

The nature of the trade premises

NATURE commercial premises. Although the vast majority of goods and services are still sold in stores, in terms of growth nonstore retail shopping far ahead. In 1977 nonstore retail sales reached 75 billion. USD., Or 12% of all consumer purchases. According to some experts, by the end of the century the share nonstore retail will account for one-third of all retail trade in goods mixed assortimenta15. Others predict the growth of part-time retailers when consumers will order products via their home computers and receive the purchase without entering the magazin16. In this section, we discuss four forms nonstore retail: retail trade with the goods by mail order or by telephone, vending machines, service orders at a discount, as well as peddling and homes for sale in the "business meetings".

Retail sale of the goods by mail order or over the phone. Under the retail trade with the goods by mail order or phone and realize any sales activity using postal channels or phone lines for collection of orders and / or assist in the delivery of goods sold. mail-order system came at a time when customers began to send their orders to manufacturers or traders in the mail. After the Civil War merchants tried to stimulate the flow of customer orders by sending catalogs, primarily in rural areas. In 1872 there was trading company "Montgomery Ward," and 14 years later in Chicago - the company "Sears Roebuck". By 1918, the two companies have become a giant mail-order selling through catalogs and in all there were already okolo2500 mail order facilities. In 30 - 40 years of this century, many retail businesses turned their posyltorgovskie operation as in small towns and villages were the company store network increased flow of goods in these settlements, and at the same time increased the number of cars, and there are more good roads. However, today with the trade order goods by mail or by phone, not only does not feel the recession, but on the contrary, is booming.

Currently in the United States, there are 11 thousand. Mail-order companies to order goods by mail or by phone, with a total annual turnover of more than 8 billion. USD. Retail trade of ordering goods by mail or by phone has several forms.

1. Trade with an order from a catalog. Sellers usually send out catalogs favorites contingent of customers or provide an opportunity to get them in their business premises free of charge or at a nominal price. This approach is practiced by mail-order companies with mixed range, offering a comprehensive range of products. Giant industry - the company "Sears" - annually sends 300 million catalogs and has an annual turnover of over 3 billion doll.17 following her corporation "John... K. Penny "annually sells through catalogs of goods valued at more than 1 ppb doll. addition, these giant retailers have sections in their stores trade under catalogs, and in small towns - a special catalog Office, in which the user can become familiar with directory and issue the order. The ordered products are shipped from the central warehouse in this section or bureau, where the consumer shall notify by telephone that the order has arrived and is available. Recently, mailing catalogs became engaged and specialized department of the "Neiman Marcus" and "Saks Fifth Avenue" to actively shape the market of consumers of higher middle class are so expensive and often exotic items like bathrobes "for him and for her ' , jewelry, personal development, all sorts of dishes to gourmet (see. Box 32).

2. Direct Marketing. direct marketing figures sometimes advertise in the newspaper, magazine, radio or television with the description of any product that consumers can order by mail or by phone. To place these ads, he chooses the means of advertising, which will provide the greatest number of delivery orders within the allocated advertising allocations. Such a strategy works well for products such as records, tapes, books, and small household appliances.

3. "Direct mail". Figures of direct marketing often send out mail items - letters, leaflets, brochures - potential customers, whose names are listed in the special mailing lists the most likely buyers of the goods of a particular category. Mailing lists purchased from specialized brokerage firms-suppliers. Direct mail advertising has been very effective for promoting the sales of books, magazine subscriptions and insurance. In addition, it is increasingly sought in the organization of the sale of new products, clothing, and even food for gourmet products. Major charities country annually collected by "direct mail" 21.4 billion. USD., Or more than 80% of all donations received by them 18.
4. Telesales. Figures of direct marketing is increasingly used for telephone sales of almost anything - from services to repair homes to subscribe to newspapers and membership in the community of friends zoos. Some marketing practices set up over the phone at the computer-based system that automatically dial numbers and send in treatment households incorporated in the computer's memory.

The growth of trade with goods by mail order or by telephone contributed to several factors. With the arrival of an increasing number of women in work has dropped dramatically the time they can spend in the shops. The process of shopping for a variety of reasons become less pleasant: increased travel costs in the car; it became difficult to overcome traffic congestion, and even more difficult to find a parking space; buyers have shifted to the suburbs, and began to avoid the city's shopping areas affected by crime; people experience discomfort from the lack of sales staff in the stores and the need to stand in line at the settlement sites. In addition, many chain stores refused to trade specialty products sales slow, thus providing the opportunity to offer these products direct marketing leaders. Finally, the appearance of the phone on which the customer can call for free for yourself as well as the readiness of direct marketing institutions to take orders over the phone at night or on Sundays, provided this form of retailing in popularity.

Box 32. Trade directory - is a shop at home

One of the forms of retail trade gives the consumer the opportunity to buy almost anything you want without going to the store. A growing number of retailers selling any goods which can be imagined by mail-order sales catalogs.

In this catalog you can order the company "I. J. Bean "" their own "logger boots lined with sheepskin, the firm" Victorias Secret "- a tantalizing feeling nightgown, the firm" Harry End David "- the most popular fruit of the month, the firm" Pfeltser Collection "- a cutting from the breast veal. If none of these goods does not touch your imagination, there are many others. What do you say about a car "Corvette" made in one-third of its original size, a completely inconspicuous device for cleaning toilet bowls, namely, precisely matched to the size of the collar for a dog or other domestic animal or a robot who knows how to play chess? After all, it can be ordered.

According to a recent study, the volume of trade directories is growing at about 15% annually, while the volume of trade in stores - only 3%. In 1982, US consumers have been sent to more than 5 billion. Directories. In other words, in the mailbox of the average American household were squeezed by an average of 40 pieces.

Buying and selling through catalogs creates certain benefits for both the consumer and the seller. Despite the fact that more than half of Americans now operate in the country most purchases made hitherto were women. Purchase the catalog, t. E. Without getting up from his chair, saves time and effort compared to buying directly in the store, especially for those who have tight over time. For retailers, this method means reducing labor costs, reducing overhead costs and an almost complete prevention of theft.

However, the success of the institution, which sells through catalogs, entirely depends on the quality factor of the available mailing lists. Many retailers achieve the best results when it sends its origin residents of areas with high income. The US Census Bureau has a list, a full set of which costs about 250 thousand. USD., With an indication of the mail indexing parts of the country and the average income in each of these areas. With such a list, the retailer can always choose its areas of interest mailing catalogs on the basis of income indicators.

Some merchants even offer a kind of catalog version of shop windows, when a consumer considers the colorful picture flashy luxury items offered at incredibly high prices. One company invites you to book a place on the first commercial flight on the spacecraft reusable, the other offers to purchase made entirely of wood real "Russian Mountain" for 2430000 dollars. Department "Neiman Marcus" offers separate planes "for him and for her ' and one store offered to sell even a bath filled to the brim filled with diamonds. If you want, in the catalog, you can order almost anything - from the cheapest utilitarian necessities to the most extravagant baubles, trinkets, and a trifling matter.

Vending machines. Especially rapidly growing in the postwar years, trade through vending machines, the turnover of which in 1980 rose to 13.8 billion. USD., That is 1.5% of total retail turnover. Sale through vending machines is not new. In one study, a link to the book, dated 215 BC. e., which describes the Egyptian monetary unit, release the sacrificial vodu19. In the 80's of last century the company "Tutti-Frutti" started to install the first railway stations vending gum. Today's machines are far removed from its predecessors, embodied in its design to achieve space and computing. They may accept coins or bills and give change. A vending machine began to sell a wide variety of products, including consumer goods impulse buying (cigarettes, soft drinks, candy, newspapers, cold and hot drinks) and other products (cosmetics, books, paperback, albums, records, film, T-shirts, insurance policies, shoe polish and even fishing bait).

Vending machines are located at the factories, in offices, in large stores, gas stations and even in railroad dining cars. They belong, as a rule, special companies that rent space in the most favorable places and engaged in servicing machines. According to the National Auto Trade Association, in the United States there are more than 7 thousand. Specialized companies that operate more than 6 million. Vending machines.

Vending machines provide consumer convenience clock sales and self-service, as well as reduce the possibility of purchasing damaged goods. However, vending machines are relatively expensive distribution channel, and the price of goods sold by them are often 15 - 20% higher than normal. Highly cost and the seller, since scattered over a large area machines require frequent replenishment of goods, often fail, and in some areas suffer from petty theft. Consumers mostly annoying breakage, delayed the completion of machine products and the inability to return a purchase.

Service orders at a discount. Service orders with discount assists marginalized groups of customers - usually the workers and employees of large organizations, such as schools, hospitals, associations and government agencies that produce purchases at prices discounted from the number selected for this purpose retailers. A consumer who wants to buy a VCR, gets orders from a special form of service, which goes to a particular retailer and buys goods at a discount. After that, the retailer usually pays a small commission service orders. For example, service orders "United baying service" is composed of 900 thousand. Members and gives them the right to make purchases at the level of prices on "cost plus 8%."

Peddling. This form of trade, which began many centuries ago put itinerant peddlers, now turned into an industry with a turnover of $ 6 billion.. In the year. Today peddling on the principle of "every door", in each institution, or on the basis of unit sales meetings at home engaged in more than 600 companies. One of the pioneers of this form of trading firm "Fuller Brush Company," still has a staff of about 10 thousand. Salesmen, selling its manufactured brushes, combs, mops, and other products. Among the pioneers of itinerant trade can be called vacuum cleaners and sellers of the company "Electrolux", and sellers of the Bible such as the company "Southwestern Company" from the city of Nashville. Many years of practice a trade company - publisher of encyclopedias. The leader among them was the "World Book", attracting to selling encyclopedias on part-time trained by her school teachers. The company "Avon" made with his own idea - the idea of ​​"Avon ladies" - a friend and adviser hostess on cosmetics at home. Its "army" composed of 1 340000 women business travelers in all parts of the world provided in 1982 turnover of over 3 billion. USD., Turning the "Avon" in the largest cosmetic companies in the world and the largest trader in the world of racing. In the span of its activities "Avon" several times larger than the next two vendors behind it leading racing - the company "Electrolux" and "Tapperver". Firm "Tapperver" contributed to the popularity of "business meetings" when the hostess invites me to visit friends and neighbors who exhibit and sell the company's products. Today, the company "Tapperver" offers about 140 different products and operates through 50 th. Dilerov20 independent.

Trade itinerant satisfies people's needs in terms of convenience and of attending to their personality inherent in the purchase of the house. The prices of goods sold in this way can not be considered low, since the peddling - expensive enterprise itself (Salesman commission ranges from 20 to 50% of total sales), excluding the costs of recruitment, organization and motivation of the sales staff. The future of this form of retailing rather vague. Given the fact that now the majority of American households are a family of one or two people (both of which are occupied all day at work), less likely to catch someone home during the day. And as the further spread of telecommunications equipment traveling salesman peddling, may, perhaps, completely replace home computer.