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III. Answer the following questions.
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1.What is one of the approaches to categorize products? 2. What groups can all products be divided into? 3. What are convenience goods? 4. What items can be referred to convenience goods? 5. What do sellers do in order to cultivate strong buying habits? 6. What are characteristic features of shopping goods? 7. What do buyers compare choosing shopping goods? 8. Where can consumers get information about shopping goods from? 9. What are speciality goods? 10. What are two basic types of industrial goods? 11. What is the difference between support consumables and industrial process consumables?
IV. Translate the following sentences into English.
1. Все товары можно разделить на потребительские и промышленные. 2. Люди покупают товары повседневного спроса одной и той же марки и в одних и тех же магазинах. 3. Используя рекламу и привлекательную упаковку, продавцы стараются развивать у потребителей устойчивые покупательские привычки. 4. Люди не покупают товары альтернативного спроса каждый день. 5. Покупая товары альтернативного спроса, покупатели сравнивают цены, качество, дизайн. 6. К товарам относительно редкого спроса относятся ювелирные изделия, французские духи, автомобили. 7. Промышленные товары длительного пользования, такие как: сырье, комплектующие части, используются в производственном процессе.
Text 2
PRODUCT
General characteristics of a product
Of all controllable factors (four Ps: production, price, plaсе, promotion) product is predominant. All products have a "product life cycle". The stages of the cycle are: introduction, growth, maturity and decline. The length of a product life cycle depends on the intensity of the competition, extent to which the new product is an innovation, a modification of an existing product, introducing timing of technologically superior products, and marketing techniques.
Visual acquaintance with the product can be effected through dealers' show rooms, directly from the factory, catalogues, direct mail coupons, telemarketing with telephone sales people, computer shopping services. Describing the product one should give the main qualitative characteristics of the merchandize, the advantages of its design, and even its packing peculiarities. In the product description section of a business plan one should also describe the organisation of services.
Presentation of the product
Good morning, ladies and gentlemen; we haven't all met before, so I'd better introduce myself. I'm from the R&D department of Citrus Inc. (incorporated). I hope you'll excuse my English; I'm a little out of practice. Anyway, I'm going to be talking this morning about a new product we are planning to launch in two months' time. It's called COOL-OUT, a lemon-flavoured drink.
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Well. I'll start with the background and proceed to the product itself. Finally, I'm going to list some of the selling points. Now, firstly, as you know, we have been manufacturing mixed-fruit drinks for the last ten years, but we stopped producing lemonade last year. Secondly, the market research indicates that more and more customers are using soft drinks as mixers with alcohol. In other words, it means that the market has expanded. So we decided to develop a new kind of soft drink.
I must emphasize that the new product is aimed at the young-professional, high income market and designed for a certain kind of customers. It's not surprising, therefore, that we must consider very carefully the importance of packaging and design, new label and slogan. We must bear in mind that more sophisticated packaging, for example, may cause a problem in the selling area.
So far, we have been using the new size glass bottle and small metal cans as containers. Now we are going to use cartons instead of bottles. Now back to the product. Let's look at the major attractions of the product. In spite of the higher price it'll compete well with existing brands because of its modern design and high quality. That's all. Thank you for listening. If there are any questions, I'll be happy to answer them.
How a new product is made
Every year new products coming into the western market are growing in numbers. The greater part of them is hardly new. To be more exact, they represent existing items that have been slightly changed. Only few products have undergone a real modification and can be regarded as innovations. For example, TV set, the refrigerator – each was an innovation but not an adaptation. A great number of innovations and adaptations are designed, produced and marketed by small businesses. Very often a new product is formed on the basis of the new business. Sometimes there is a patent to make the business more successful. But it happens very often that market research has not been done very carefully.
Even if major producers pay more attention to doing research and testing, there is little hope for success. A promising new product can appear unsuccessful because of unreasonable prices, inadequate promotion and poor selling methods. Thus, all technologies applied for the purpose of improving the product turn out to be vane and its producer can hardly make a profit.
Vocabulary
product life cycle – жизненный цикл продукта
showroom – выставочный, демонстрационный зал
merchandise – товары
peculiarity – специфичность; особенность, своеобразие, специфика
to emphasize – придавать особое значение; подчеркивать; акцентировать
label – ярлык, этикетка, наклейка, бирка
slogan – лозунг, призыв; девиз
to bear in mind – помнить, принимать во внимание
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to market – продавать; сбывать; находить рынок сбыта
promising product – перспективный продукт
unreasonable price – неразумная цена
inadequate promotion – недостаточная реклама
Answer the following questions.
1. Is the number of new products coming into the western market great? 2. What is the greater part of the products like? 3. Are they existing items which have been slightly modified? 4. Whom are innovations and adaptations designed, produced and marketed by? 5. On what basis is a new product often formed? 6. Is there much hope for success even if producers do more research and testing? 7. What can prevent a promising new product from being a success?
UNIT 17
Marketing
The terms market and marketing can have several meanings depending on how they are used. The term stock market refers to the buying and selling of shares. Another type of market is grocery market, a place where people purchase food. When economists use the word market, they mean a set of forces or conditions that determine the price of a product, such as the supply available for sale and the demand for it by consumers. The term marketing in business includes all of these meanings.
In the past, the concept of marketing emphasized sales. The modern marketing concept is based on the principle that production can be economically justified only by consumption. In other words, goods should be produced only if they can be sold.
Marketing now involves first deciding what the customer wants and designing and producing a product that satisfies these wants at a profit to the company. Modern marketing is a coordinated system of many business activities, but basically it involves four things: selling the correct product at the proper place, selling it at a price determined by demand, satisfying customer's needs and wants and producing a profit for the company.
The principal marketing techniques include: a profound market research, market requirements elaboration addressed to the producer, a good knowledge of demand, tastes and wishes of consumers and production of goods that are in demand.
In recent years marketing has become a driving force in most companies. Marketing includes all the business activities connected with the movement of goods and services from producers to consumers. Sometimes it is called distribution. On the one hand, marketing is made up of such activities as transporting, storing and selling goods and, on the other hand, a series of decisions you make during the process of moving goods from producer to user. Marketing operations include product planning, buying, storage, pricing, promotion, selling, credit, traffic and marketing research.
Underlying all marketing strategy is the marketing concept – «we must produce what people want, not what we want to produce». It’s necessary to find out what the customer wants and carry out market research. It can be done by offering the right Marketing Mix. Marketing can be divided into four main elements that are popularly known as the four P’s: product, price, place and promotion. «The Four P's – the right Product at the right Price; available through the right channels of distribution: Place; presented in the right way: Promotion. Each one plays a vital role in the success or failure of the marketing operation.
Nowadays all divisions of a company are urged to think marketing. It’s necessary to have a clear idea of: what the customers need, what the customers want, what causes them to buy. The ability to recognize early trends is very important. Producers must know why, where, for what purpose the consumers buy. Market research helps the producer to predict what people will want and through advertising he attempts to influence the customer to buy.
Marketing operations are very expensive. They take more than half of the consumer's dollar. The trend in the USA has been to high mass consumption. The construction of good shopping centers has made goods available to consumers. It has provided a wide range of merchandise and plenty of parking facilities.
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Marketing in a foreign environment often means working around and within a set of constantly changing circumstances. The environment elements include a country's economy, politics, regulations and social make up. Whether you are developing your company's first international marketing plan or revising existing strategies, understanding the foreign environment is crucial to international success.
A company that believes in marketing is forward thinking and doesn't rest on its best achievements: it must be aware of its strengths and weaknesses as well as the opportunities and threats it faces.
Vocabulary
stock market – фондовая биржа
grocery market – продуктовый рынок
to determine a price – определять, устанавливать цену
supply available for sale – количество имеющихся товаров для продажи
to produce a profit – давать, приносить прибыль
market requirements – требования рынка
to be in demand – пользоваться спросом
movement of goods and services – движение товаров и услуг
user – потребитель
product planning – разработка новых товаров
storage – хранение
pricing – калькуляция цен
traffic – торговля
to carry out market research – осуществлять изучение конъюнктуры рынка
right marketing mix – правильное сочетание рыночных факторов
to urge – побуждать, убеждать
early tend – начальное направление, ранняя тенденция
to predict – предсказывать, пророчить, прогнозировать
to attempt – пытаться, стараться, стремиться, прилагать усилия
mass consumption – массовое потребление
constantly changing circumstances – постоянно изменяющиеся обстоятельства
social make up – общественное устройство
crucial – ключевой, решающий; важный
forward thinking – прогрессивно мыслящий
to be aware – быть осведомленным
strength – достоинство, сильная сторона
weakness – слабое место, недостаток
opportunity – благоприятный случай, шанс, перспектива
threat – опасность, угроза, риск
I. Give Russian equivalents to the following word combinations:
stock market; to determine the price of a product; to produce a profit; market requirements; production of goods; driving force; to be connected with movement of goods and services; user; to carry out market research; to urge; to have a clear idea; to recognize early trends; to influence the customer to buy; to provide a wide range of merchandise; crucial; strengths and weaknesses; opportunity; to face the threats.
II. Give English equivalents to the following word combinations:
рынок; производить товары; выявить и удовлетворить нужды потребителей; вкусы и желания покупателей; пользоваться спросом; разработка новых товаров; хранение; калькуляция цен; торговля; правильное сочетание рыночных факторов; каналы сбыта; массовое потребление; постоянно изменяющиеся обстоятельства; прогрессивно мыслящая компания; быть осведомленным.
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