Exercise 4. Translate into English.

1. Гуртова торгівля – важливий елемент ринкової системи.

2. Товари проходять від гуртового посередника до споживача через роздрібного продавця.

3. Непряма система збуту є більш прийнятна.

4. Гуртові покупці закуповують товар.

5. Посередник отримує проценти від продажу.

6. Посередник зазвичай веде переговори з приводу купівлі чи продажу.

7. У цьому магазині гарний асортимент товарів.

8. Менеджер по маркетингу скоро отримає підвищення.

9. Ми вимушені дорого платити за доставку.

10. Наша фірма відшкодовує нам витрати за обіди та проїзд.

11. Це була джентльменська угода.

 

LESSON 12

RETAILING

Text

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.

Active Vocabulary

retailing - роздрібна торгівля

ultimate consumer - кінцевий споживач

link - ланка, зв’язок

mail-order house - “товари поштою”

vending machine operator - оператор торгівельних автоматичних машин

(які продають дрібні товари: газети, цигарки и т.п.)

discount house - магазин з відносно низькими цінами на товар

cooperative - кооператив

single line retailer - роздрібний торговець, який продає який-небудь

один товар

to perform functions - виконувати функції

extending credit - довготривалий кредит

outlet - ринок збуту, торгівельна точка

discount — знижка

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. In what way does a retailer serve a customer?

5. In what way does a retailer serve a manufacturer?

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

Exercise 1. Put the necessary word in the sentence.

1.... is one function a retailer may perform. 1 mail-order

2. You can buy newspapers, cigarettes, cookies from a.... 2 discount

3.... is the most expensive link in the chain between a producer

and a consumer. 3 vending- I machine

4. The firm... good quality of the product. 4 guarantees

5. She doesn't like to go shopping, she prefers to do it by.... 5 retailer

6. The department store is having a sale and there is a 20 per 6 link

cent... on all light dresses. 7 extending credit

7. Wholesaler is an important... between a producer and a consumer.

Dialogue

(Jean has just moved into a new house. Her neighbour, Liz, has come over to welcome her.)

Jean I am very glad to see you here.

Liz How do you like the new place?

Jean It's marvelous. I am sure we are going to love living here.

Liz Well, have a look, here it's a shopping guide for the neighbourhood and a booklet of discount coupons. New neighbours always receive them. There is one coupon for every store in the shopping guide.

Jean Oh, thank you. It's come in time. I have a lot of shopping to do.

Liz I can imagine, having just moved in. Not far from here there's a very good shopping center. You can also find a huge supermarket, a drugstore, some department stores in the neighbourhood.

Jean Great. Are there any small stores nearby?

Liz Oh, yes. The map is right here in the shopping guide. There is a little drugstore a

few blocks away, a little grocery store next to it, a little boutique, an ice cream

parlor, a pizza place. You can find a plant store not far from here too.

Jean Are there any good discount houses nearby? We terribly need a new toaster. Everybody in my family likes toasts for breakfasts very much. I'd like to buy it.

Liz Oh, sure. There is a good discount store in the shopping center. If you like, I'll

come with you.

Jean Oh, you needn't. I don't want to trouble you.

Liz No trouble at all. I'd like to do some shopping too. If we go to the discount center

I can go to that little cheese shop. I don't want to bother you.

Jean It's no bother at all. Make out your shopping list and I'll be your guide. By the

way, you can use your discount coupon for the toaster.

Liz I am sure you'll buy a good one.

Jean Well, it'll take some time to make a shopping list. I'll have to buy a lot at the

grocer's.

Liz This is a good idea. I should have gone shopping yesterday, so I'll make up my

list too.

Jean By the way, I like your dress very much. It's a perfect fit. Where did you buy it, if

you don't mind my asking?

Liz Thank you for compliment. I got it at a very nice little boutique. It's a bit

expensive, but there are many interesting and original things. If you are

interested we can stop there.

Jean I'm afraid I can't. I have to cook dinner.

Liz Oh, don't trouble yourself with the dinner. Look over the coupons I've given you.

You can go out to dinner at a discount store.

Active Vocabulary

shopping guide - довідник магазинів

discount coupon - талон, який дає право на купівлю товару за

нижчою ціною

store- магазин

grocery - бакалія

shopping center - торгівельний центр

Vocabulary Practice

Exercise 1. Change the sentences according to the model.

Model: My wife usually asks the children to do shopping.

My wife usually makes children do shopping.

1. He'll ask single line retailers to take part in the promotion campaign.

2. The chief usually asks his immediate subordinates to perform different functions.

3. It's necessary to ask him to recognize his wholesaling units.

4. It's important to influence ultimate consumer to buy this product.

5. Ask him to buy all these things in the discount house.

Exercise 2. Make responses to the sentences according to the model.

Model: I want to ask your brother to do shopping today.

Let me do shopping today myself.

1.I want my secretary to prepare the financial statement.

2. The board of directors wants the officers to plan product development.

3. He wants to speak with my friend about their possible partnership.

4.1 want a lawyer to clarify this matter.

5. The executive wants this manager to start market re­search.

Exercise 3. Answer the questions.

1. What kind of shops in this country do you know?

2. What shops are situated not far from your house?

3. What goods can be bought there?

4. What specific features do channels of distribution have in this country?

5. What reforms does this country need to reorganize the channels of distribution?

Exercise 4. Translate into English.

1. Роздрібна торгівля – це продаж товару кінцевому споживачу.

2. В західних країнах є різні типи торгівельних закладів: універмаги, супермаркети, магазини з низькими цінами, “товари поштою”, і т.п.

3. На цей товар можна отримати 10% знижку.

4. Роздрібний продавець може надати покупцю довготривалий кредит.

5. Ця фірма має безліч торгівельних точок по всій країні.

6. Роздрібний продавець виконує багато важливих функцій.

7. Я не знаю центр міста, мені потрібен довідник магазинів.

8. В торгівельному центрі ви знайдете всі необхідні вам товари.

9. У цьому магазині нема бакалійного відділу.

 

 

direct method of distribution

Producer Consumer

 

indirect methods of distribution

Producer Wholesaler Retailer Consumer

 

Exercise 5.

a) speak about the differences between (he channels of distribution of this country and western countries.

b) look at this chart and say in what industries different methods of distribution are possible.

Grammar Exercises

Exercise 1. Change the sentences according to the model.

Model: I should go shopping today.

I should have gone shopping yesterday.

1. The firm should apply for credit very soon.

2. They should see about the new refrigerator today.

3. I should take my wife shopping a bit later.

4. They should get groceries at the supermarket this afternoon.

5. You should order a new car.

6. He should buy a computer today.

7. He should speak with the manager today.

Exercise 2. Change the sentences according to the model.

Model: If there is a shopping center nearby, we will go there together.

If there had been a shopping center nearby, we would have gone there.

1. If she buys too much, she won't be able to carry it herself.

2. If there is ice cream in this store, we will bring the children some.

3. If she tries the new boutique today, she will come very late.

4. If the shop offers home delivery, he will ask them to deliver.

5. If you shop downtown, you will find the shopping center.

 

 

LESSON 13

PRICING

Text

All products and all services have prices. The price depends on different thing such as credit terms, delivery, trade-in allowance, 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. The price may be too high to produce a large volume or too low to cover costs. No other area of marketing operations has been a subject to bad practice. Many businesses persue unsound price policies for long periods of time and are not aware about it.

Prices can be determined in different ways. For example, the prices of meat, cotton and other agricultural prices can be decided in large central market where forces of supply and demand exist. This is pure price competition. The prices on industrial products (iron, steel, etc.) are usually decided by large companies. As a rule the amount and price of goods sold to large number of buyers is controlled by a few competing sellers. Prices also can be set by the government, usually for different public services - railroads, electricity, manufactured gas, bus services, etc.

If demand increases, prices rise, profits expand and new investment is attracted. But other factors may be involved as well. Prices are related to each other in different ways. Ultimately, everything is related in price, since the consumer

can buy and must pay for everything out of a particular, limited amount of money.

Active Vocabulary

credit terms - кредитні умови

trade-in allowance - сума, яка відділи за стару річ і яка включена в рахунок

нової покупки

to cover costs - відшкодовувати витрати

to persue unsound price policies - вести недоцільну цінову політику

supply and demand - пропозиція і попит

price competition - конкуренція в ціноутворенні

to set prices - встановлювати ціни

Comprehension Questions

1. Why is it difficult to determine the right price?

2. Why is the seller interested in the price that produces the highest volume of sales at the lowest unit cost?

3. Why do many businesses follow unsound pricing policies?

4. In what way are agricultural prices decided?

5. How are industrial products usually priced?

6. Why does the government usually set the prices for public utility services?

7. Why is it so important to know the levels of supply and demand when dealing with pricing?

8. Why is everything related by price?

Vocabulary Practice

Exercise 1. Put the necessary word in the sentence.

1. It is very difficult... without sound price policy. 1 supply and demand

2. Of course we are interested in producing the... with the

lowest unit costs. 2 volume of sales

3.I decided to buy a new car at this company 3 trade-in allowance

because they offered the best... on my old model.

4. The... of this store are very beneficial for a customer. 4 compete

5. Their business will fail if they persue unsound.... 5 price policies

6. The government usually... for public utility services. 6 credit terms

7. In pure competition the forces of... operate. 7 to set prices

Dialogue

Dick is introducing a new line of products and is talking to his friend Tom, a business consultant, about it.

Dick It's the first time when I'm in business for myself.

Tom Don't worry. The store has always been doing well. It has a great location and as far as your new line of merchandise...

Dick That's what I wanted to talk to you about. Can you give some ideas how to charge the prices?

Tom With pleasure. Generally, there are two types of pricing policies. There is price emphasis and price deemphasis.

Dick What's the difference?

Tom The price emphasis policy emphasizes low prices. This encourages sales. But low price doesn't give extra services.

Dick So, a really low price means no credit, home delivery, repair, installation and other services.

Tom That's what I mean. But many people are interested only in the low price and not in the extra services.

Dick Yes, and vice versa. The price which I set determines the number of sales. I must think thoroughly about it.

Tom A good example of price emphasis is "loss leader" pricing. It means that you choose one item - let's say an electric razor - at a price just above the cost. The customers will come to your shop to buy this loss leader item. But since they are inside they can decide to buy a few other things they need.

Dick It sounds interesting. What other things can you tell?

Tom There is also off-even pricing. Let's say you sell a tape recorder for $69.95 instead of $80.00. Though it is in fact about the same, the low price can produce a favorable psychological effect.

Dick What are the other ways to attract the customers?

Tom First of all, remember that you are going to compete with well-known products, so you should start with specially low prices. It's important to advertise this. You should use newspaper ads, maybe a radio spot, maybe do a big window and floor display.

Dick It makes sense.

Tom And you can raise the price after your customers try continue to buy it.

Dick I see. And what is the price de-emphasis you mentioned before?

Tom It concerns high quality expensive items. Price de-emphasis means that you don't call attention to the price at all.

Dick I know, it concerns our fine jewelry department or designer fashions.

Tom Yes, I see you are going to do very well.

Dick Your suggestions seem to be very useful. Don't for­get you have a discount on

any shopping you do in my shop.

Tom In such a case I'll be back tomorrow with my wife.

Active Vocabulary

location - місце розташування

extra services - додаткові послуги

installation services - послуги щодо встановлення

to charge prices - встановлювати ціни

price emphasis - продаж товару за рахунок низької ціни

price de-emphasis - спроба продати товар не за рахунок низької ціни, а за

рахунок інших факторів

loss-leader item - товар, який продається за дуже низькою ціною, для

залучення покупців

off-even pricing - ціна, яка не доходить до “круглої” суми і стимулює

бажання покупця придбати

favorable psychological effect - сприятливий психологічний ефект

to start with especially low prices - починати з дуже низьких цін

new brand - нова марка (товара)

high quality expensive item - високоякісний дорогий продукт

Vocabulary Practice