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Catalog Price: The Importance of Catalogues As A Sales and Marketing Tool

The catalog price is the price listed for a product in a manufacturer's catalog or price list before discounts or additional charges are applied. It is supported by the manufacturer and made known to all customers, representing the price at which a significant volume of the good was sold. Catalogs remain an important sales and marketing tool, driving up to 29% of sales. While many shop online, some customers still prefer catalogs for browsing options and making purchases. Companies must strategize how and whether to use catalogs alongside other channels.

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46 views4 pages

Catalog Price: The Importance of Catalogues As A Sales and Marketing Tool

The catalog price is the price listed for a product in a manufacturer's catalog or price list before discounts or additional charges are applied. It is supported by the manufacturer and made known to all customers, representing the price at which a significant volume of the good was sold. Catalogs remain an important sales and marketing tool, driving up to 29% of sales. While many shop online, some customers still prefer catalogs for browsing options and making purchases. Companies must strategize how and whether to use catalogs alongside other channels.

Uploaded by

pat
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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CATALOG PRICE

DEFINITION

This is the price shown for a product in a catalogue before money is added or taken off. It is
the price of an item in a catalog where the purchase price has volume or other discounts
deducted and other charges such as handling, shipping, or taxes, are added.
An
Lawestablished catalog
Dictionary: What price is price
is CATALOG listed
PRICE? in a suppliers’
definition catalog,
of CATALOG price
PRICE list, orLaw
(Black's website that is
Dictionary)
(1) supported by the manufacturer or producer, (2) made freely known to all customers, and
(3) is the price at which a significant volume of the good was sold to a large number of
customers.

APPLICATION

We take car tires as an example, an application to our everyday lives. Dunlop manufactures car tires
and sells them in mass quantities to big box retailers across the country like Tire Center (TC). Dunlop then
expands and advertises through the use of catalogs. In these catalogs, the manufacturer, Dunlop, gives them
an estimate of what they think the product is worth and what it should sell for, the Manufacturer’s Suggested
Retail Price.
When TC publishes their sales fliers, they typically show both the MSRP and the list price or selling
price. For example, a new tire might have an MSRP of $200, but TC’s list price is only $120. This gives the
customer the illusion of a good deal.

ARTICLE 1

THE IMPORTANCE OF CATALOGUES AS A


SALES AND MARKETING TOOL
Catalogues are a significant investment and you can’t really afford to get it wrong. We know that
good design, exploiting proven catalogue dynamics, can greatly influence buying decisions.

There have always been preconceived ideas about catalogues and their use within the digital era.
Is there still scope for catalogues? Have websites and social media taken over? How do catalogues
advantage my business?

Nowadays everybody is seen to read information online via a website or social media platform
however, our recent study states that this is simply not the case. Our 2013 business research was
conducted with over 100 businesses throughout the UK asking questions about their sales,
marketing and overall business approach.
The need for catalogues has increased for many upcoming and popular businesses. There has been
an increasing adoption of digital catalogues as well as print. Catalogues are further growing in
importance, 38% of companies stated that it will be more important in the coming year and a further
17% said that it will be crucial.

So, in terms of sales and marketing, where do catalogues fit into the mix?
In today’s economic climate, sales and marketing budgets are under pressure, a reported one in five
(20%) stated that reaching their sales objectives is going to be tough. An equal number are concerned
that sales and marketing are not performing, as they should be. This is where the catalogues come in!

According to our 2013 business report, catalogues are a vital part of a multi-channel strategy for an
organisation, they have the power to lift and drive sales by up to 29%. Many companies who are
involved with e-commerce stated that catalogues are top priority.

Catalogues are a powerful tool for driving traffic to website and web sales. Organisations found that
59% of their sales had been directly attributed to a catalogue and have seen a 29% uplift in web sales.

It has been known that companies, which use catalogues, are far less likely to worry about achieving
their sales targets. Other sales channels are better used when supported by catalogues, with 80% of
companies expecting their sales to grow this year. Users are also less likely to be worried about rising
costs as they are using every sales tool possible to leverage their company or brand, due to today’s
competitive market.

Catalogues are designed to speak directly to your target audience and further build your reputation and
brand. A massive 39% of companies have found that their catalogue helps to build their brand.

If that’s not proof enough, 27% of businesses have stated that a catalogue is central to their business,
70% have had their catalogue for over five years underlining their contribution as a central part of the
sales strategy.

54% of companies that we spoke with have had their catalogue for a whopping 10 years and aren’t
planning to get rid of catalogues anytime soon! Convinced yet?

ARTICLE 2

EXPLORE THE STRATEGY OF CATALOG MARKETING


Catalogs have been one of America’s favorite ways to shop for over two hundred years. In fact, garden
and seed catalogs were in circulation in the United States before the Revolutionary War.
In the 1880s, more people began to break free of local stores’ narrow selection by purchasing consumer
goods through catalogs. By the early 1900s, Sears, Roebuck and Company and Montgomery Ward
were some of the top mail-order businesses using catalogs to reach customers across the country.
Catalog marketing is a specialized form of direct marketing that still holds an important place among
the various marketing strategies used today, including social media and Internet advertising. Even as
people purchase goods online more often, many still use the catalog as their preferred source of
information about a company’s products and services.
Who uses Catalog Marketing? Mail-order retailers and retailers with mail-order branches utilize catalog
marketing to reach a wider audience. J.C. Penney, for example, uses both its stores and its large mail-
order catalog as ways to connect with customers.
Business-to-business companies also use catalog marketing. Businesses that specialize in selling to a
particular type of company may not have their entire catalogs online. Instead, they print and distribute
their product catalogs directly to their buyers.
Many companies use catalog showrooms to give consumers the chance to see a small sample of
products in person. Customers then purchase from a wider range of choices in a catalog.
Catalog marketing has undergone tremendous changes since the mid-1990s, adding new channels
through which it reaches its customers. In the early 2000s, retailers began to shift their focus to e-
commerce, printing fewer catalogs, and restructuring their businesses to reflect consumers’ general
preference to shop online. They moved their catalogs to websites, and sent out catalogs only to those
who had actually purchased from them in the past.
Some business decision makers feel that catalogs give their customers options in how they purchase,
and that many of their customers use the catalogs in conjunction with the Internet to make their
purchases. In 2009, the Direct Marketing Association found that businesses mailed more than 17 billion
catalogs, but only 1.3 percent resulted in a sale.
The typical catalog shoppers are employed women in their early 50s and with an income of about
$53,000 per year, according to the 2004 Direct Marketing Association's State of the Catalog and E-
Commerce Report. They are usually married and live in the suburbs.
While this typecast of the catalog shopper is true in most cases, some customers simply prefer
shopping in a catalog to buying online. Other consumers use catalogs alongside a business’ website.
Customers who are not comfortable with purchasing items online or those who like to talk to a real
person over the phone may just call in their orders.
Businesses must first decide whether to offer a full-line catalog or a more specialized one that lays out
specific categories of products and whether to mail their catelogs or choose another form of distribution.
Because printing and mailing out catalogs is often expensive, they sometimes display them in their
stores and showrooms instead.
Catalog design teams create and organize the catalogs for distribution. They determine which
illustrations and photographs will be included, as well as decide on the layout and the exact wording of
the catalog copy.
The next step in the process is distribution and tracking of catelogs as they are sent into circulation. If
they distributed more than one catalog, they can determine which resulted in the most sales.
Companies then compare how many sales occurred online, in their stores and through the catalog to
help executives decide whether to publish a catalog again or how to change it, if necessary.
REFERENCES:
 http://www.catalogues4business.co.uk/blog/post/the-importance-of-catalogues-as-a-sales-and-
marketing-tool/
 http://www.marketing-schools.org/types-of-marketing/catalog-marketing.htm
PICTURES

REFERENCES
 http://www.businessdictionary.com/definition/established-catalog-
price.html
 http://www.businessdictionary.com/definition/catalog-price.html
 http://thelawdictionary.org/catalog-price/
 http://dictionary.cambridge.org/dictionary/english/catalogue-price

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