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.pdfКарташова А.В. «Перевод в сфере делового общения». Учебное пособие, 2010 год
6. TRADE
RETAILING
Business activity of selling goods and services directly to consumers. Instead of selling products for resale, a retailer sells goods or services to individuals making purchases for themselves or their families. Some retailing businesses sell a combination of goods and services. For example, an automobile dealership that sells automobiles (goods) may also provide automobile repairs (services).
Retailers help direct the physical flow of goods and services from places that produce goods to places where goods are used. Since the retailer has direct contact with the users of goods and services, the retailer can discover and attempt to meet the needs and preferences of consumers.
RETAILING STRATEGY
To be successful, a retailer must distinguish itself from other retailers and develop a strategy for satisfying the needs and preferences of a specific consumer group. This strategy, called a retail mix, involves careful consideration of (1) the product to sell, (2) the quantity at which to make the product available, (3) the location at which to sell the product, (4) the time to make the product available, (5) the pricing of the product, and (6) the appeal that can be generated to attract the consumer's interest.
Product
Retailers strive to offer products that appeal to the tastes of the consumer, are of good quality, and function properly. Sometimes the product must also provide psychological and emotional benefits, such as prestige or convenience. For example, an expensive watch with a well-known, visible brand name may give its owner a sense of prestige.
Quantity
Unlike wholesalers, who sell goods in quantities that often are too large to be useful for individuals or families, retailers sell products in small quantities that are more convenient for consumers. For example, wholesalers may sell jeans to retail stores in lots (units) of a dozen pairs each. Retailers then sell consumers jeans by the individual pair.
Location
A retailer's location must be convenient. In locating retail stores, retailers consider the market or town in which they want to establish themselves, the part of town to be in, and the actual site of their store. In some cases, no store is involved because the right location for shopping for a product is the consumer's home or place of business. These retailers without stores, known as nonstore retailers, act as direct marketers by contacting customers directly
Карташова А.В. «Перевод в сфере делового общения». Учебное пособие, 2010 год
through mail, the Internet, television, telephone, or other means.
Timing
Retailers must make their products available at times when consumers are willing and able to buy them. Retailers identify consumer buying patterns and adjust such things as store hours, inventory levels, and promotional programs to accommodate consumers. Retailers also identify special times that generate opportunities to sell merchandise, such as holidays, changing seasons, and special occasions, such as weddings and school graduations.
Pricing
Retailers use different pricing strategies to attract different consumers. For example, some stores use low or discount prices to attract economyminded consumers, while some stores set higher prices to convey an upscale image.
Appeal
Retailers work hard at creating an image of their store or product that customers find appealing. Retailers use such promotional techniques as advertising and public relations to create awareness and build interest in their products. These techniques also attract customers to the retailer's store, provide valuable information about the retailer, and persuade customers to buy.
KINDS OF RETAILERS
There are many kinds of retailers and they can be categorized according to their store format. Each format has different management and selling techniques for satisfying the needs of a select group of customers. The most common kinds of retailers include specialty stores, department stores, discount stores, retail chain stores, warehouse retailers, and off-price retailers.
LIMITED SERVICE POLICY
More recent methods adopted in many department stores include the self-selection of merchandise by customers and a cash-and-carry policy. Both methods are designed to reduce operating expenses. In some stores that have adopted the cash-and-carry policy, delivery services have been eliminated altogether. In many stores an extra fee is charged for delivery service.
Electronic Point of Sale (EPOS), system used in retailing in which a bar code on a product is scanned at a cashier's station and the information is relayed to the store computer. The computer relays back the price of the item to the cashier's station. The customer can then be given an itemized receipt while the computer removes the item from stock figures.
EPOS allows for efficient computer stock control and reordering, as well as giving a wealth of information about turnover, profitability on different lines, stock ratios, and other important financial indicators.
Карташова А.В. «Перевод в сфере делового общения». Учебное пособие, 2010 год
WHOLESALING
Wholesaling is selling of merchandise to anyone other than a retail customer. The merchandise may be sold to a retailer, a wholesaler, or to an enterprise that will use it for business, rather than individual, purposes. Wholesaling usually, but not necessarily, involves sales in quantity and at a cost that is significantly lower than the average retail price.
Wholesaling became particularly advantageous after the introduction of mass production and mass marketing techniques in the 19th century. Without wholesale organizations, large manufacturers would have to market their products directly to a great many retailers and/or consumers at high unit costs, and retailers or consumers would have to deal with a large number of manufacturers at great inconvenience.
KINDS OF WHOLESALERS
There are three main categories of wholesalers: (1) merchant wholesalers, (2) manufacturers’ sales branches, and (3) merchandise agents and brokers.
Merchant wholesalers, also known as jobbers, distributors, or supply houses, are independently owned and operated organizations that acquire title ownership of the goods that they handle. There are two types of merchant wholesalers: full-service and limited-service.
Full-service wholesalers
Full-service wholesalers usually handle larger sales volumes; they may perform a broad range of services for their customers, such as stocking inventories, operating warehouses, supplying credit, employing salespeople to assist customers, and delivering goods to customers. General-line wholesalers carry a wide variety of merchandise, such as groceries; specialty wholesalers, on the other hand, deal with a narrow line of goods, such as coffee and tea, cigarettes, or seafood.
Limited-service wholesalers
Limited-service wholesalers, who offer fewer services to their customers and suppliers, emerged in order to reduce the costs of service. There are several types of limited-service wholesalers. Cash-and-carry wholesalers usually handle a limited line of fast-moving merchandise, selling to smaller retailers on a cash-only basis and not delivering goods. Truck wholesalers or jobbers sell and deliver directly from their vehicles, often for cash. They carry a limited line of semiperishables such as milk, bread, and snack foods. Drop shippers do not carry inventory or handle the merchandise. Operating primarily in bulk industries such as lumber, coal, and heavy equipment, they take orders but have manufacturers ship merchandise directly to final consumers. Producers’ cooperatives – owned by their members, who are farmers
– assemble farm produce to be sold in local markets and share profits at the
Карташова А.В. «Перевод в сфере делового общения». Учебное пособие, 2010 год
end of the year.
Manufacturers’ sales branches
Manufacturers’ sales branches are businesses established by manufacturers to sell directly to retailers. They tend to be established by large companies which modify their products frequently and to whom rapid, accurate information on sales and suggestions for improvement are especially valuable.
Merchandise agents and brokers
Manufacturers may use brokers and agents, who do not take title possession of the goods, in marketing their products. Brokers and agents typically perform only a few of the marketing flows, and their main function is to ease buying and selling – that is, to bring buyers and sellers together and negotiate between them. Brokers, most commonly found in the food, real estate, and insurance industries, may represent either a buyer or a seller and are paid by the party who hires them. Brokers often can represent several manufacturers of noncompeting products on a commission basis. They do not carry inventory or assume risk.
Unlike merchant wholesalers, agent middlemen do not take legal ownership of the goods they sell; nor do they generally take physical possession of them. The three principal types of agent middlemen are manufacturers’ agents, selling agents, and purchasing agents. Manufacturers’ agents, who represent two or more manufacturers’ complementary lines on a continuous basis, are usually compensated by commission. As a rule, they carry only part of a manufacturer’s output, perhaps in areas where the manufacturer cannot maintain full-time salespeople. Many manufacturers’ agents are businesses of only a few employees and are most commonly found in the furniture, electric, and apparel industries. Sales agents are given contractual authority to sell all of a manufacturer’s output and generally have considerable autonomy to set prices, terms, and conditions of sale. Sometimes they perform the duties of a manufacturer’s marketing department, although they work on a commission basis. Sales agents often provide market feedback and product information to the manufacturers and play an important role in product development. They are found in such product areas as chemicals, metals, and industrial machinery and equipment. Purchasing agents, who routinely have long-term relationships with buyers, typically receive, inspect, store, and ship goods to their buyers.
PRACTICE ACTIVITIES
Activity 1. Give the Russian equivalents to the following words and expressions used in the text.
1) retailing/retailer |
40) EPOS |
Карташова А.В. «Перевод в сфере делового общения». Учебное пособие, 2010 год
2)to sell goods and services directly to consumers
3)to make purchases
4)automobile dealership
5)to direct physical flow of goods and services
6)to meet the needs and preferences of consumers
7)retailing strategy
8)consumer group
9)retail mix
10)to appeal to smbd
11)visible brand
12)wholesaling/wholesaler
13)to sell goods in quantities
14)in lots
15)retail store
16)nonstore retailer
17)direct marketing/marketer
18)consumer buying pattern
19)inventory level
20)promotional programme
21)to sell merchandise
22)pricing strategy
23)economy-minded consumer
24)to convey an upscale image
25)advertising
26)public relations
27)to create awareness
28)to build interest in a product
29)store format
30)specialty store
31)department store
32)discount store
33)retail chain store
34)warehouse retailer
35)off-price retailer
36)self-selection of merchandise
37)cash-and-carry policy
38)operating expenses
39)delivery service
41)bar code
42)cashier’s station
43)itemized receipt
44)to remove the item from stock figures
45)turnover
46)profitability
47)stock ratio
48)financial indicator
49)average retail price
50)mass production
51)mass marketing techniques
52)unit cost
53)merchant wholesaler
54)manufacturers’ sales branch
55)merchandise agent and broker
56)jobber/distributor/supply house
57)to acquire title ownership of the goods
58)full-service merchant wholesaler
59)limited-service merchant wholesaler
60)to handle larger sales volumes
61)general-line wholesaler
62)specialty wholesaler
63)line of goods
64)cash-and-carry wholesaler
65)fast-moving merchandise
66)on a cash-only basis
67)truck wholesaler/jobber
68)drop shipper
69)to ease buying and selling
70)on a commission basis
71)manufacturers’ agent
72)selling agent
73)purchasing agent
74)output
75)full-time salespeople
76)contractual authority to sell
77)to set prices, terms, and conditions of sale
Карташова А.В. «Перевод в сфере делового общения». Учебное пособие, 2010 год
Activity 2. Supply the word from the text which is a periphrasis of the following.
1)a reduction from list price or catalogue price or marketed price, such as made for the quantity of goods;
2)a method of selling goods, esp. in shops, stores and supermarkets, where customers choose and take from the shelves the goods they wish to buy, paying for them when leaving;
3)products or services that are expensive, of good quality, and intended to appeal to people in a high social class;
4)sellers who utilize a method of marketing which involves companies sending advertising material directly to people who they think may be interested in their products;
5)selling goods in large quantities at prices below ones used for individuals;
6)middleman who takes together buyers and sellers when negotiating the bargain;
7)an organization subordinate to a large producing company which provides the latter with all the information about amounts sold;
8)organizations which carry out narrow range of services thus cutting the expenses for the work they do.
Activity 3. Match the descriptions with a term. Be careful with distracters.
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1) brand name |
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a) the selling of something again |
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2) off-price |
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b) stores that sell consumer merchandise mainly on a |
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self-service basis and at the most competitively |
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3) retailing |
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low margins |
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c) the profit on a transaction, or the amount by which |
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4) discount stores |
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the price of something exceeds its cost |
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d) the practice of paying somebody back money |
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5) premises |
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spent for damaged goods or goods of bad quality |
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e) intended or designed for wealthy consumers to- |
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6) close-out stores |
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ward a higher and more expensive standard that |
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appeals to wealthy consumers |
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7) resale |
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f) a franchise to sell a particular brand of product or |
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service |
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8) margin |
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g) these stores sell irregular merchandise, excess |
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merchandise – and other goods at prices below |
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regular retail prices |
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h) a trade name for a product or service produced by |
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Карташова А.В. «Перевод в сфере делового общения». Учебное пособие, 2010 год
9)upscale
10)dealership
11)reimbursement
12)specialty stores
13)retail chain stores
a particular company. It may or may not be a registered trademark
i)offering goods at low prices, or being sold at a discount
j)a building or part of a building, especially when used for commercial purposes
k)the selling of goods in small amounts directly to customers
Activity 4. Translate the given sentences into English and pay your attention to the underlined words and expressions.
6.Продажи – фундаментальное понятие бизнеса, описывающее практически любую коммерческую деятельность, бизнес вообще. Продажи чаще всего являются завершающим этапом бизнес-цикла коммерческого предприятия.
7.Слово торговля очень близко по значению к продажам, однако имеет другой оттенок и иногда больше подходит для общего описания торгового бизнес-процесса или определенной специфики продаж (например: выносная торговля, разъездная торговля, советская торговля). Также словом торговля можно описать торгово-закупочную деятельность (и закупки, и продажи) вообще, обозначить вид деятельности и отрасль в целом (работники торговли, Министерство торговли, торговое представительство и т.д.).
8.В современном понимании продажи считаются неразрывно связанными с маркетингом, служат логическим продолжением, практическим результатом и подтверждением правильности ведущейся маркетинговой работы компании. Считается, что само понятие маркетинг появилось из продаж, является их неким теоретическим осмыслением.
9.Розничная торговля – продажа товаров конечному потребителю (частному лицу). В отличие от оптовой торговли товар, купленный в системе розничной торговли, не подлежит дальнейшей перепродаже, а предназначен для непосредственного использования.
10.Субъекты процесса розничной торговли – продавец и покупатель. Непременным атрибутом розничной торговли является кассовый аппарат и кассовый чек. К розничной торговле можно отнести продажу товаров через торговые автоматы.
11.Существует понятие формата розничного магазина. Это набор характеристик, присущих какому-либо виду магазина. Такими харак-
Карташова А.В. «Перевод в сфере делового общения». Учебное пособие, 2010 год
теристиками являются: площадь торгового зала, количество товарных позиций, уровень обслуживания покупателей, технология размещения товара.
12.Оптовая торговля – торговля партиями товара. Чаще всего, товар, покупаемый у оптового продавца, предназначен для последующей перепродажи. Но также нередко покупателями выступают крупные потребители товара. Оптовая торговля является посредником между производителем и розничной торговлей. Участвует в ускорении товародвижения, синхронизации производства и потребления.
13.Оптовая торговля (опт) – это торговля между организациями, организациями и предпринимателями, предпринимателями и предпринимателями. То есть это торговля, когда товар продается не для конечного пользования, а для нужд бизнеса (для перепродажи или для использования в производстве).
14.Экономической основой розничной торговли является торговая наценка (маржа). Торговая наценка – это разность между закупочной и продажной ценой. Торговая наценка – основной доход розничного предприятия, как правило, в торговле продуктами она не превышает 25–30 %, а, например, в розничной торговле одеждой может доходить до 200 %.
15.Из полученной торговой наценки торговец оплачивает текущие расходы, такие как аренда помещения, заработная плата сотрудников, охрана, телефон, уборка и т.д., из оставшихся средств формируется прибыль торгового предприятия. Она колеблется от 1–3 % в крупной сетевой продуктовой рознице до 20–30 % и даже 50 % в непродуктовой рознице.
Карташова А.В. «Перевод в сфере делового общения». Учебное пособие, 2010 год
7. INTERNATIONAL TRADE
International trade is exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history, its economic, social, and political importance has been on the rise in recent centuries. Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. International trade is a major source of economic revenue for any nation that is considered a world power. Without international trade, nations would be limited to the goods and services produced within their own borders.
REGULATION OF INTERNATIONAL TRADE
Traditionally trade was regulated through bilateral treaties between two nations. For centuries under the belief in Mercantilism most nations had high tariffs and many restrictions on international trade. In the 19th century, especially in the United Kingdom, a belief in free trade became paramount. This belief became the dominant thinking among western nations since then. In the years since the Second World War, controversial multilateral treaties like the General Agreement on Tariffs and Trade (GATT) and World Trade Organization have attempted to create a globally regulated trade structure. These trade agreements have often resulted in protest and discontent with claims of unfair trade that is not mutually beneficial.
Free trade is usually most strongly supported by the most economically powerful nations, though they often engage in selective protectionism for those industries which are strategically important such as the protective tariffs applied to agriculture by the United States and Europe. The Netherlands and the United Kingdom were both strong advocates of free trade when they were economically dominant, today the United States, the United Kingdom, Australia and Japan are its greatest proponents.
During recessions there is often strong domestic pressure to increase tariffs to protect domestic industries. This occurred around the world during the Great Depression. Many economists have attempted to portray tariffs as the underlining reason behind the collapse in world trade that many believe seriously deepened the depression.
The regulation of international trade is done through the World Trade Organization at the global level, and through several other regional arrangements such as MERCOSUR in South America, the North American Free Trade Agreement (NAFTA) between the United States, Canada and Mexico, and the European Union between 27 independent states.
Карташова А.В. «Перевод в сфере делового общения». Учебное пособие, 2010 год
RISKS IN INTERNATIONAL TRADE
The risks that exist in international trade can be divided into two major groups.
Economic risks
•Risk of insolvency of the buyer;
•Risk of protracted default – the failure of the buyer to pay the amount due within six months after the due date;
•Risk of non-acceptance;
•Risk of exchange rate;
•Susceptibility to changing standards & regulations within other countries.
Political risks
•Risk of cancellation or non-renewal of export or import licenses;
•War risks;
•Risk of expropriation or confiscation of the importer's company;
•Risk of the imposition of an import ban after the shipment of the
goods;
•Transfer risk – imposition of exchange controls by the importer's country or foreign currency shortages;
•Influence of political parties in importer's company;
•Relations with other countries.
PROTECTIONISM
Protectionism is the economic policy of restraining trade between states, through methods such as tariffs on imported goods, restrictive quotas, and a variety of other restrictive government regulations designed to discourage imports, and prevent foreign take-over of local markets and companies. This policy is closely aligned with anti-globalization, and contrasts with free trade, where government barriers to trade are kept to a minimum. The term is mostly used in the context of economics, where protectionism refers to policies or doctrines which «protect» businesses and workers within a country by restricting or regulating trade with foreign nations.
A variety of policies can be used to achieve protectionist goals. These include:
1. Tariffs: Typically, tariffs (or taxes) are imposed on imported goods. Tariff rates vary according to the type of goods imported. Import tariffs will increase the cost to importers, and increase the price of imported goods in the local markets, thus lowering the quantity of goods imported. Tariffs may also be imposed on exports, and in an economy with floating exchange rates export tariffs have similar effects as import tariffs. However, for political reasons, such a policy is seldom implemented.