+ DOMESTIC TRADE TRADE

+ What is trade? Fill in the missing vowels and complete the definition. It is a basic economic concept that involves multiple parties participating in the voluntary n_g_t_ _t_ _n and then the _xch_ng_ of one’s g_ _ds and s_r v_c_s for desired g_ _ds and s_r v_c_s that somone else possesses. (www. Investopedia.com)

+ What is trade? It is a basic economic concept that involves multiple parties participating in the voluntary negotiation and then the exchange of one’s goods and services for desired goods and services that somone else possesses. (www. Investopedia.com)

+ TRADE VS COMMERCE Is there any difference between TRADE and COMMERCE?

TRADESERVICESGOODS COMMERC E TRANSPORT INSURANCE WAREHOUSINGBANKING

+ TRADE VS COMMERCE Trade involves buying,selling and exchanging in return of money or money’s worth Commerce refers not only to buying and selling of goods but it includes other activities such as transport, insurance, warehousing, banking and advertising which help buying and selling of goods.

+ TRADE DOMESTIC TRADE INTERNATIONAL TRADE

+ Participants in trade DISTRIBUTION OF GOODS AND SERVICES DISTRIBUTION CHANNEL PRODUCER WHOLESALER AGENT RETAILER CONSUMER INTERMEDIARIES or MIDDLEMEN

+ Participants in distribution

+ What is the role of WHOLESALERS AND RETAILERS? Put the following bullet notes into two groups: WHOLESALERS RETAILERS  Provide storage for larger quantities of goods  Buy goods in bulk (large quantities)  Offer a whole range of different items from different producers  Finish goods by packaging and branding  Arrange transport of goods to retailers  Inform retailers of new trends in products  Have higher prices  Buy and store smaller quantities of goods  Have lower prices  Direct contact with customers

+ KEY Buy goods in bulk (large quantities) Provide storage for larger quantities of goods Finish goods by packaging and branding Arrange transport of goods to retailers Inform retailers of new trends in products Have lower prices Offer a whole range of different items from different producers Have higher prices Buy and store smaller quantities of goods Direct contact with customers WHOLESALERSRETAILERS

+ Participants in distribution What are the BENEFITS of DIRECT CONSUMER SELLING? BENEFITS: high costs of distribution through the middlemen can be cut It is good for technical goods which require demonstration before sale and after sales services METHODS of DIRECT CONSUMER SELLING involve: 1 Online (Internet) sales 2 Telephone sales 3 Mail order sales 4 The business possesses its own sales force (sales reps)

+ Participants in distribution Fill in the following words: Producer-wholesaler-retailer-consumer is the traditional channel for many, if not most, _______ goods. This means that neither the producer nor the retailer needs a large ________. For exported goods, many companies work with ______. Producers often use their own __________for technical products sold to other companies (____): the sales reps are able to demonstrate and explain the products. Many publishers now sell books online, cutting out the _______ and some producers send out a lot of ________ merchandising catalogues. _________ can usually order goods by telephone as well as by mail or ________. Source : MacKenzie’s Teacher’s book agent retailer online sales staff mail- order warehouse consumer customers B to B

+ Producer-wholesaler-retailer-consumer is the traditional channel for many, if not most, consumer goods. This means that neither the producer nor the retailer needs a large warehouse. For exported goods, many companies work with agents. Producers often use their own sales staff for technical products sold to other companies (BtoB): the sales reps are able to demonstrate and explain the products. Many publishers now sell books online, cutting out the retailer and some producers send out a lot of mail-order merchandising catalogues. Customers can usually order goods by telephone as well as by mail or online.

+ WORD FORMATION. Fill in the missing words. noun noun-person verb adjective retail wholesaler

+ WORD FORMATION. Fill in the missing words. Noun noun-person verb adjective retail retailer to retail retail wholesale wholesaler to wholesale wholesale e.g. The book retails at $ She has a job in retail. The recommended retail price is $ You buy or sell retail. (how? = an adverb) The company wholesales clothing to boutiques in the area. Is that price retail or wholesale? Its wholesale price is too high.

+ Translate the following sentences into English. 1 Maloprodajna cijena olovke je 10 kuna. 2 Ona radi u veleprodaji. 3 Bave se veleprodajom i maloprodajom sportske odje ć e. 4 Metro Cash & Carry prodaje robu na veliko restoranima i hotelima.

+ TRADITIONAL TYPES OF RETAILERS or “BRICKS & MORTAR” STORES “BRICKS & MORTAR” shops or stores – the term refers to businesses that have physical (offline) presences - the shops that you can drive to and enter physically to see, touch and buy goods SHOPPING MALLS – groups of shops and other service providers (restaurants, coffee shops, cinemas) under one roof HYPERMARKETS – large shops outside a town with large variety of goods for retailers and customers (Metro) SUPERMARKETS – large shops that offer variety of goods to consumers such as food items, beverages but also home accessories and clothes (Super Konzum, Konzum, Liedl, Spar, Plodine) DEPARTMENT STORES – large shops with several floors and various departments offering different types of goods (NAMA, MÜLLER) MULTIPLE (CHAIN STORES) –shops owned by the same company (Zara, H&M, Benetton)

+ DISCOUNT STORES - sell goods that are lower than normal (OFFERTISSIMA) CONVENIENCE STORES – small, neighbourhood shops selling food and houshold goods, usually open until late GROCER – a shop selling foodstuffs (meat, diary products) VENDING MACHINES – buy some food, hot and cold drinks by putting money into slots MARKET STALLS – a table or small open-fronted shop in a public place (a green market place such as Dolac) MOBILE SHOPS – can move easily, usually sell food (BoFrost) MAIL ORDER – sell through the post (catalogues, brochures)

+ NEW TRENDS IN RETAILING ONLINE shopping & ONLINE-OFFLINE COMBINATION  E-COMMERCE - refers to trade in products and services using the Internet  “BRICKS & CLICKS” – a jargon term for a business model by which a company integrates both offline (bricks) and online (clicks) presences, sometimes with the third extra flips (physical catalogues). E.g. A chain of stores allows the customer to order products either online or physically in one of their stores, also allowing them to either pick up their order directly at a local branch of the store or get it delivered to their home.  MOBILE PHONE APPS – a growing shopping platform which enables customers to do shopping when they have spare time since they do not have to be at a computer

+ NEW TRENDS IN RETAILING OPTIONAL The retail store of the future Watch a short video and write down how the shopping experience in the future will be different from the one we are familiar with now.

+ RB, p. 39 “ Retailing: Storm clouds over the mall: As consumer spending slows, rival strategies are being put to the test” Anticipate some of the themes in the article from the title above. Then read the opening sentence of each paragraph. Think of these sentences within the context of the predictions you have made. HW RB, e-commerce, p. 43