Ex. 6. Match the verbs on the left with the nouns on the right.

 

to organize to carry out to offer to develop to fulfill to satisfy to produce to give to pay to get to provide

a. basic needs b. Marketing Mix c. a profit d. a bad reputation e. a price f. a product g. a certain image h. benefits i. a company j. market research k. a want

 

Ex. 7. Give the English equivalents to the following words and word-combinations.

 

предпринимать шаги _________________________________________________

ставить во главу угла покупателя _______________________________________

компании, ориентированные на рынок ___________________________________

изучать привычки потребителей ________________________________________

симпатии и антипатии _________________________________________________

определять цену и место продажи _______________________________________

товары конкурентов ___________________________________________________

служить долгое время _________________________________________________

товар надлежащего качество ____________________________________________

доставлять удовольствие _______________________________________________

соответствовать стандарту ______________________________________________

 

 

Ex. 8. Fill in the gaps with the suitable prepositions.

 

1. Other products, like a refrigerator, ______ addition ______ keeping food cool, would be

expected to be reliableand last _______a long time.

2. Products are usually grouped ________ the following types.

3. Producing the right product _____ the right price is an important part ____ the marketing mix.

4. The product also needs to be _______the right quality.

5. The product must be available ___________the right channels _______ distribution.

6. Place is a means _____ getting the product __________ the consumer’s hands.

7. Producer goods are bought to help __________ the production process.

8. We can do this _______offering the right Marketing Mix.

Ex. 9. Translate the words and phrases given in brackets.

 

1. Having selected the target market, the firm must (предпринять шаги) to satisfy the

consumer’s need.

2. Promotion is (средства общения) between the seller and buyer.

3. Some businesses (ориентируются на производство товаров).

4. (Сам по себе продукт) is probably the most important element in the marketing mix.

5. (После определения сегмента рынка) for the product, the other parts of the marketing mix

will be determined.

6. Consumers buy products (ради удовольствия), satisfaction or benefitsthey provide.

7. An expensive perfume (придаст определенный образ) to the consumer when they used it.

8. (Кроме товаров), services are also sold to consumers and to other producers.

9. Producer goods are bought to help with (производственный процесс).

10. If the product is not reliable and breaks down then it will get a bad reputation and (скорее

всего, будет плохо продаваться).

 

 

COMPREHENSION

 

Ex. 10. Choose the correct box for each product.

Product	Consumer good	Consumer service	Producer good	Producer service
Tube of toothpaste
Bottle filling machine
Bank accounts
A pair of sports shoes
A chocolate bar
Doctors treatment of a patient
Office cleaning
Factory building
Purchase of a hospital bed
Television programme

 

Ex. 11. Put the questions to the words and word-combinations in italics.

 

1. The product itself is probably the most important element in the marketing mix

2. They spend a lot of money researching consumers’ buying habits, their likes and dislikes, to

see if they can design a product which people will want to buy.

3. Consumers buy products for the pleasure, satisfaction or benefits they provide.

4. Some products are sold to consumers.

5. Consumer goods can be goods that do not last long.

6. They are bought to help with the production process.

7. Producing the right product at the right price is an important part of the marketing mix.

8. A product has to last a reasonable length of time.

9. Having selected the target market, the firm must take steps to satisfy the consumer’s need.

10. The four P’s are the elements of the marketing mix.

Ex. 12. Say if the sentences are true or false. Correct the false ones.

 

1. Price is the most important element in the marketing mix.

2. Today most companies are product-orientated when developing new products.

3. The important thing about the product is that it must fulfill a want.

4. The satisfaction given to consumers doesn’t differ: all the products are bought to satisfy only

the basic needs.

5. In addition to goods, services are also sold to consumers and to other producers.

6. Consumer goods are produced for other businesses to use.

7. Lorries, machinery or components are examples of producer goods.

8. The product needs to satisfy consumer wants and needs.

9. Design of the product is of minor importance.

10. Reputation of the product doesn’t depend upon its reliability.

 

 

Text 3

The role of price in the marketing mix

VOCABULARY

 

credit terms – условия кредита

delivery – поставка, доставка

to cover expenses -покрывать расходы

a fair profit – справедливая прибыль

merchandise – товар

fair trade laws – законодательство против недобросовестной конкуренции

to make agreement – заключать соглашение, договариваться

to retail – продавать в розницу

to recognize the price – узнавать цену

clientele – клиентура

overall demand – общий спрос

novelties – новинки

mark-up – наценка

mark-down -скидка

to multiply - умножать

to fit in - приспосабливаться

 

All products and all services have prices. The price depends on different things such as credit terms, delivery, guarantees, quality and other forms of service; which price can produce the biggest profit during a long period of time. It's hardly possible to determine such a price.

When a business owner decides what price to charge for different goods and services, some kind of method should be used. By poor pricing the owner may lose his customers and profits. Two basic questions must be answered: 1) Are prices high enough to cover expenses and assure a fair profit. 2) Are prices low enough to meet the competition and attract customers?

Prices can be determined in different ways. For example, the prices of meat, cotton and other agricultural products can be decided in large central markets where forces of supply and demand exist. The prices on industrial products (iron, steel, etc.) are usually decided by large companies. Prices can also be set by the government, usually for different public services – railroads, electricity, gas, bus services, etc.

To understand how price is arrived at, we must first understand the concept of supply and demand. Supply and demand analysis explain how prices are established in market through competition among buyers and sellers and how those prices affect quantities traded. These questioned have already been examined in Unit “Economic Laws”. Now we’ll study what other factors may influence the price any firm can charge for its merchandise.

Factors affecting prices:

1. Fair trade laws. They still exist in many states. These laws allow the manufactures to make agreements with dealers who retail the product on the price at which it can be sold to the public.

2. Competitor prices on similar products with similar quantity must be recognized when active competition exists between firms.

3. Market strategy is a policy of setting prices and quality when a special clientele is served. For example rich people want special services and special merchandise, they are willing to pay for them. In this case their buying habits can be reflected in price policy.

4. The nature of overall demand is also considered in setting individual prices. Special goods, such as luxuries and style items carry higher prices.

5. Manufacturers’ suggested prices are designed by the manufacturers to protect the quality image of their products. Price policy is significantly affected by the type of a product. Novelties or special-interest items normally carry higher mark-ups.

6. Markup. The term markup refers to the amount which a business owner adds to the cost of an item in order to arrive at a selling price. The selling price may be expressed in a simple formula: cost price plus markup equals selling price.

Cost price + mark up = selling price

$1.00 $0.50 $1.50

7. Markdown (discount) is simply an amount or percentage cut from the original selling price. For example, if men’s shirts are not selling at $16.95, they might sell for $14.95. The dollar value of the markdown is $2.00 and the percentage is 11.8%.

In theory, for every dollar a customer pays for a product, the seller should know how much is clear profit, how much goes for merchandise, and how much goes for expenses (rent, heat, light, wages, insurance, advertising). Of course, a merchant does not actually analyze every dollar. But when $1 is multiplied by 10.000 at the end of a six month business period, the effects are important.

When deciding a price for an existing product or a new product, the business must be very careful to choose a price which will fit in with the rest of the marketing mix for the product. For example, if a new product is of high quality, is to be aimed at consumers who have a lot of money, has luxurious packaging but has a low price, consumers will not think it is a good quality product and will not buy it. Some products are sold in very competitive markets and prices will have to be set near to their competitors prices. Other products are the only ones available in their market and so consumers may be willing to pay a high price to have one of these products.

 

WORD STUDY