Product development and planning

The number of new products coming into the market of western countries every year is overwhelming. The major part of these products is not new, but adaptations. It means that these products arc not new, they are existing items to which a modification has been made. Only few products are really original or innovations. For instance a clock-television is an adaptation, but TV-set itself, the refrigerator - each was an innovation. 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 hasn't been done carefully.

Even in case larger scale producers do more research and testing there is no sure success. A promising new product may be also robbed of success by unreasonable prices, inadequate promotion and poor selling methods. Generally less than one fifth of all new products turn out to be profitable.

 

 

Выпишите новые слова и выражения и выучите их.

New words and expressions:

 

product development - развитие производства

adaptation - что-либо переделанное

modification - модификация

innovation - нововведение, новшество

patent - патент

large scale producer - крупный производитель

promising product - перспективный продукт

unreasonable price - неразумная цена

inadequate - недостаточный

3. Дайте ответы на следующие вопросы:

1. How can you explain the term adaptation?

2. What is an innovation?

3. Give your own examples of innovations and adaptations.

4. Why are many innovations and adaptations manufactured and marketed by small businesses?

5. Why is it so important to obtain a patent?

6. Why does the failure of a new product take place?

 

4. Прочтите и выучите следующий диалог:

 

A Visit to the Plant

 

- We like your plant, Mr. Ivanov. It’s quite modern.

- Glad to hear that, the plant is really new. We built it only two years ago.

- By the way, how long did it take you to construct it?

- Three years, though it’s one of the biggest plants here.

- You produce very good compressors, they are easy to operate and reliable.

- That’s right. Our compressors are in great demand in the world market. We export them to many countries of the world. Last year was particularly good. Our total sales increased much.

- Incidentally, in what way did you use the profit?

- We invested heavily to improve the quality. We increased the salaries and wages. We also arranged a number of training courses for the technical personnel.

- We’d like to establish business relations with you. We are going to place a large order.

- We’ll be glad to cooperate with you.

 

 

to produce - производить

to be in great demand - пользоваться большим спросом

particularly - особенно

total sales - общий объем продаж

incidentally - кстати, между прочим

profit - прибыль

to invest - инвестировать

heavily - зд. большие средства

to arrange - устраивать

wages - заработная плата рабочих

to establish business relations - устанавливать деловые

отношения

Тема 5.

 

Прочтите и переведите текст.

 

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 or through more complicated channels. A direct channel moves goods from the manufacturer or 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 middlemen 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.