Choose the necessary word and put it in the sentence.

1. One of the aims of market research is to indicate

new … among people. a) predict

2. Advertising must … the consumer and make him buy

the goods produced. b) influence

3. Often marketing is called …. c) promote

4. In order to sell a new product, a producer has to consider

how to … it. d) marketing

5. The goods of this company are not sold very well, they

must think about …. e) trends

6. Sometimes it is difficult to influence … through advertising. f) distribution

7. If you want to produce something new, you should start

with …. g) market research

8. A producer wants to … the new trends and then tries to

Influence them. h) product planning

9. … includes product development and pricing among

other things. i) consumer

WHOLESALING

Wholesaling is a part of the marketing system. It provides channels of distribution which help to bring goods to the market. Generally indirect channels are used to market manufactured consumer goods. It could be from the manufacturer to the wholesaler, from the retailer to the consumer of through more complicated channels. A direct channel moves goods from the manufacturer of producer to the consumer.

Wholesaling is often a field of small business, but there is a growing chain movement in the western countries. About a quarter of wholesaling units account for one-third of total sales.

Two-third of the wholesaling middleman are merchant wholesalers who take title to the goods they deal in. There are also agent middlemen who negotiate purchases or sales or both.

They don’t take title to the goods they deal in. Sometimes they take possession though. These agents don’t earn salaries. They receive commissions. This is a percentage of the value of the goods they sell.

Wholesalers simplify the process of distribution. For example, the average supermarket stocks 5.000 items in groceries alone, a retail druggist can have more than 6,000 items. As a wholesaler handles a large assortment of items from numerous manufacturers he reduces the problem of both manufacturer and retailer. The store-keeper does not have to deal directly with thousands of different people. He usually has a well-stocked store and deals with only a few wholesalers.

 

Comprehension Questions

1) What is the aim of the wholesaling?

2) How can you describe a direct channel of distribution?

3) What is an indirect channel of distribution?

4) What channel of distribution is preferable?

5) Is there any difference between a merchant wholesaler and an agent middleman? What is this difference?

6) How does a wholesaler simplify the process of distribution?

7) What would a retailer have to do without wholesalers?

Choose the necessary word and put it in the sentence.

 

1) They use both direct and indirect … a) wholesalers

of distribution. b) take title

2) Agent middlemen do not …. to the c) retailer

goods they deal in. d) stock

3) Usually wholesaling … stands e) channels

between the producer and the retailer. f) assortment

4) A supermarket may … thousands of g) to receive

commissions items. h) middleman

5) Usually a wholesaler handles a large …

of items of numerous manufacturers.

6) Agent middlemen don’t earn salaries,

they … commissions.

7) A wholesaler doesn’t deal with the

customers, … does.

8) … simplify the problems of

manufacturers.

 

Dialogue

John is explaining his new job to his wife, Susan. He is a sales trainee for a company.

John: It’s a great job, you know. The salesmen are paid salaries instead of being on commission.

Susan: Why do you find it great? You can earn less money.

John: Well, it’s a regular weekly salary. And besides we get reimbursed for everything lunches and dinners even the football tickets, the car, gasoline, tolls.

Susan: That’s really great.

John: And I’m going to get a raise in three months.

Susan: And what are you going to see?

John: Foam rubber.

Susan: What is it used for?

John: It is used to make couches and beds, generally ideal with furniture manufacturers.

Susan: So you will travel much won’t you?

John: No. Delivery is a part of our wholesaling operation. Foam is sold and delivered by the truckloads. It is rather bulky and it is expensive to have it shipped a big distance. We are going to deal with buyers who are in this region.

Susan: That’s fine. I don’t want you to travel too much. By the way I want to know more about sales procedure.

John: At first l go to see a buyer. We discuss what he needs. After that l send him a written quote. If our prices suit him, he’ll call us and send an order.

Susan: Do you take orders over the phone?

John: Yes. The buyers are always in a hurry and a letter would take too much time to come. If it’s a verbal agreement we call it gentlemen’s agreement.

Susan: And what happens after the verbal agreement?

John: We receive a written purchase order. It is called p.o. - and it has a number that we use for all future correspondence on that order. The office then retypes the order form and the p.o. and order form are stapled together and filed.

Susan: It sounds organized. Who do you usually deal with in a company?

John: Well, I’ll deal with purchasing agents. But l could deal with any administrator from the president on down, in some cases.

Susan: Good. Soon you’ll get your raise.

John: Yes. Selling is usually a stepping stone to higher positions in management.

Susan: Don’t worry, dear. If it doesn’t work out, we still have my job.

 

 

RETAILING

Retailing is selling goods and services to the ultimate consumer. Thus, the retailer is the most expensive link in the chain of distribution. Being middlemen, they make their profit by charging the customer 25 to 100 per cent more than the price they paid for the item.

The retailers operate through stores, mail-order houses, vending machine operators. There are different types of retail stores: department stores, discount houses, cooperatives, single line retailers. The major part (over 95 per cent) of retail establishments concentrate on a single line of merchandise for example, food, hardware, etc. But nowadays there is a trend for many single line stores to take on a greater variety of supplies.

The retailer performs many necessary functions. First, he may provide a convenient location. Second, he often guarantees and services the merchandise he sells. Third, the retailer helps to promote the product through displays, advertising or sales people. Fourth, the retailer can finance the customer by extending credit. Also the retailer stores the goods in his outlet by having goods available.

 

 

Comprehension Questions

1. What is retailing?

2. What are four different types of retail stores?

3. What are at least two types of retailing that do not include the use of a store?

4. What way does a retailer serve a customer in?

5. What way does a retailer serve a manufacturer in?

6. Which per cent of the price of the good sold goes to the retailer?

7. What is the trend with a single line retailer now?

 

Vocabulary Practice

1. ….. is one function a retailer may a) mail-order

perform.

2. You can buy newspapers, cigarettes, b) discount

cookies from a ……

3. …. Is the most expensive link in the c) vending-machine

chain between a producer and a consumer.

4. The firm … food quality of the d) guarantees

product.

5. She doesn’t like to go shopping,she e) retailer

prefers to do it by ….

6. The department store is having a sale f) extending credit

and there is a 20 per cent …. on all

light dresses.

7. Wholesaler is an important….between g) link

a producer and a consumer.

 

 

ADVERTISING

Advertising is a form of communication intended to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideas, or services. It includes the name of a product or service and how that product or service could benefit the consumer, to persuade a target market to purchase or to consume that particular brand. These messages are usually paid for by sponsors and viewed via various media. Advertising can also serve to communicate an idea to a large number of people in an attempt to convince them to take a certain action.

Commercial advertisers often seek to generate increased consumption of their products or services through branding, which involves the repetition of an image or product name in an effort to associate related qualities with the brand in the minds of consumers. Non commercial advertisers who spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Nonprofit organizations may rely on free modes of persuasion, such as a public service announcement.

Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries. Mass media can be defined as any media meant to reach a mass amount of people. Different types of media can be used to deliver these messages, including traditional media such as newspapers, magazines, television, radio, outdoor or direct mail; or new media such as websites and text messages.

In 2010, spending on advertising was estimated at more than $300 billion in the United States and $500 billion worldwide.

 

UNIT 5