Definition
Mail order firms are companies that market and sell products directly to consumers, traditionally through printed catalogs but increasingly via online platforms. These firms allow customers to place orders for merchandise, which is then shipped directly to them, eliminating the need for a physical storefront. They often specialize in a particular type of merchandise, such as computer software, hardware, apparel, or household goods.
Examples
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Computer Mail Order Firms:
- Software Specialization: Firms like SoftChoice and CDW provide a variety of software solutions.
- Hardware Specialization: Companies such as Newegg and TigerDirect focus on selling computer hardware.
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Clothing and Apparel:
- Firms like L.L. Bean and Lands’ End offer a wide range of clothing and accessories through their catalogs and online stores.
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Household Goods:
- Firms like IKEA and Williams-Sonoma offer a variety of furniture, kitchenware, and decor through their catalogs and e-commerce platforms.
Frequently Asked Questions (FAQs)
What are mail order firms?
Mail order firms are companies that sell products directly to consumers through catalogs or online platforms, shipping merchandise directly to the customer’s location.
How do mail order firms typically market their products?
Traditionally, mail order firms market their products through printed catalogs, but many now use websites, email marketing, and social media.
Are mail order firms still relevant in the digital age?
Yes, many mail order firms have transitioned to online sales, merging traditional catalog marketing with modern e-commerce to reach a broader customer base.
What are some advantages of purchasing from mail order firms?
Customers can shop from home with a wide selection of products, often accessing specialized items not available locally. Additionally, mail order firms provide detailed product descriptions and customer reviews online.
Can I return merchandise ordered from a mail order firm?
Return policies vary by company, but many offer easy return processes where customers can send back unwanted items for a refund or exchange.
- Catalog Marketing: A form of direct marketing where products are listed in a catalog and orders are placed via mail, phone, or online.
- E-commerce: Commercial transactions conducted electronically on the internet.
- Product Specialization: Focusing on selling a specific type of product to meet particular consumer needs.
- Direct Sales: Selling products directly to consumers bypassing traditional retail stores.
Online References
Suggested Books for Further Studies
- “The Direct Mail Solution: A Business Owner’s Guide to Building a Lead-Generating, Sales-Driving, Money-Making Direct-Mail Campaign” by Craig Simpson.
- “Catalog Copy That Sizzles: All the Hooks, Lines, and Sinkers You’ll Ever Need to Write Copy That Grabs Attention, and Sells!” by Herschell Gordon Lewis.
- “How to Make Money with Social Media: An Insider’s Guide on Using New and Emerging Media to Grow Your Business” by Jamie Turner and Reshma Shah.
Fundamentals of Mail Order Firms: Marketing Basics Quiz
### Which of the following best describes a mail order firm?
- [ ] A company that holds stock in physical locations.
- [x] A company that sells products through catalogs and ships them directly to customers.
- [ ] A company that sells products exclusively at trade shows.
- [ ] A company that outsources its entire sales process.
> **Explanation:** Mail order firms market products through catalogs (printed or digital) and deliver orders directly to customers, bypassing traditional retail stores.
### What has increased the relevance of mail order firms in the digital age?
- [ ] The decline of e-commerce platforms.
- [x] The transition to online sales and e-commerce.
- [ ] The rise in physical retail stores.
- [ ] The shift to PDF-based marketing.
> **Explanation:** Many mail order firms have adapted to the growth of the internet by transitioning to online sales, integrating traditional catalog methods with modern e-commerce platforms.
### Which type of merchandise is NOT typically the primary focus of mail order firms?
- [ ] Computer hardware
- [ ] Apparel and fashion
- [ ] Household goods
- [x] Automobile manufacturing
> **Explanation:** Mail order firms typically focus on items like computer hardware, apparel, and household goods, but not on large and complex items like automobiles.
### How do mail order firms traditionally capture customer orders?
- [ ] Physical storefronts
- [x] Through catalogs via mail or phone
- [ ] Trade show exhibitions
- [ ] Door-to-door sales
> **Explanation:** Traditionally, mail order firms capture customer orders via printed catalogs, where orders are placed by mail or telephone.
### What is product specialization in the context of mail order firms?
- [ ] Offering a variety of unrelated products.
- [ ] Developing own in-house technology.
- [x] Focusing on selling a specific type of product.
- [ ] Providing high-end consulting services.
> **Explanation:** Product specialization involves focusing on a specific type of merchandise, such as selling only computer software or hardware.
### What factor has modern mail order firms incorporated to expand their reach?
- [ ] Exclusively printed catalogs.
- [ ] Direct mail only.
- [x] E-commerce platforms.
- [ ] Only in-store purchases.
> **Explanation:** Modern mail order firms use e-commerce platforms to expand their reach beyond traditional catalogs.
### What is one major benefit for customers purchasing from mail order firms?
- [ ] In-person assistance.
- [ ] Instant product availability.
- [x] Shopping from home with a wide selection.
- [ ] Immediate returns processing in-store.
> **Explanation:** Mail order firms allow customers to shop from home with access to a wide range of products, offering convenience.
### How have mail order firms adapted their marketing strategies for the internet?
- [ ] By reducing advertising budgets.
- [ ] By offering smaller product ranges.
- [x] By using email marketing and social media.
- [ ] By exclusively sticking to printed catalogs.
> **Explanation:** Mail order firms use email marketing and social media to reach customers online, complementing their traditional catalog marketing.
### What type of policy is crucial for customer satisfaction in mail order firms?
- [ ] Immediate purchase confirmation.
- [ ] High service costs.
- [x] Easy returns process.
- [ ] Single payment option.
> **Explanation:** An easy returns process is crucial for customer satisfaction, allowing customers to return unwanted or defective products easily.
### In which type of marketing do mail order firms primarily engage?
- [ ] Direct mail only.
- [x] Catalog marketing.
- [ ] Telemarketing.
- [ ] Guerrilla marketing.
> **Explanation:** Mail order firms primarily use catalog marketing, which involves listing products in catalogs and facilitating direct orders from customers.
Thank you for exploring the concept of mail order firms through this comprehensive guide and quiz! Keep refining your understanding of marketing and business fundamentals.
