Subject for study: Marketing. Working on the text.

Ex.1. Read and translate the text paying particular attention to the words in italics. Use a dictionary if necessary.

Marketing Functions.

Marketing adds value to the product by the specific functions it performs. These are:

Marketing information. Market information flows throughout the marketing process, from consumer to retailer, from retailer to whole­saler, from wholesaler to manufacturer. Producers are made aware of coming trends because marketers inform them of changes in consumer wants, supply and demand, and new market developments.

Buying. Before stocking shelves, a retailer must first determine not only what to buy but how much, which models or styles, in what sizes and colors. Buying is a fine art that may involve forecasting or predicting fashion trends six months or even a year in advance.

Selling. Marketers must not only know what goods are availablebut must also inform potential buyers of where those goods can be bought and how much they cost. Selling may also involve helping con­sumers discover their own unconscious needs and wants.

Transporting. In order to have value, goods must first be trans­ported from the place they are produced to the point where they are needed.

Storing. Because marketers often maintain extensive inventories, the consumer desire to buy is satisfied without waiting.

Credit-granting. Most manufacturers grant credit to wholesalers who, in turn, grant credit to retailers, who grant credit to the con­sumer. This is an important function because it enables those involved in the marketing channel to operate with less capital.

Risk-taking. Marketers assume risk in granting credit and in storing inventories (e.g. spoilage, theft, obsolescence).

Pricing. Pricing involves the art of determining which price is best. Is demand elastic or inelastic? Will consumers buy proportionately more of a good at a lower price? Will the reverse hold true?

Servicing. Many retailers provide credit, delivery, shop-at-home ser­vices*, catalog sales, layaways, etc.

Standardizing and grading. Standardizing involves the maintenance of uniform size and quality standards throughout an industry. In buying a lightbulb, for example, few of us have any doubts as to whether that bulb will fit or how much light it will furnish. Grading is also an im­portant marketing function, particularly in the processing of agricultural products. Farm commodities, such as eggs, milk, wheat, etc., are as­signed grades attesting their quality and uniformity.

Example

Coca-Cola has 39 plants around the world producing the cola concentrate - except for one top-secret ingredient, 7-X, which comes only from headquarters in Atlanta. To ensure uniformity in taste, a laboratory technician in Atlanta frequently tastes the vari­ous concentrates made in France, Saudi Arabia, Mexico, Japan, the Philippines, and so on. Any deviation from the standard is rectified so that a person buying Coca-Cola anywhere in the world, whether Tanzania or Spokane*, can be confident of getting the identical beverage.

* shop-at-home ser­vices - выбор и покупка товаров по каталогам, присылаемым компанией

на дом

* Spokane - город Спокан (на западе США)

Ex.2. Say what you have learned about:

1. marketing information;

2. the research a retailer must conduct before stocking shelves;

3. the importance of credit granting;

4. the best price.

Ex.3. Think and answer.

1. Why do many retailers provide credit, delivery and other numerous services?

2. What is the function of standardizing?

3. Where is grading particularly important?

4. Why does Coca-Cola keep one ingredient top-secret?

Ex.4. Read the text. Insert the words from the ones given below.

Part 1.

Formulating your marketing plan … of a series of steps. At each point, be sure that you have answered every question in as much detail as possible. Together, all the answers to all the questions should provide you with a plan that you can … up.

First, Define Your Business

• What is my business in general terms - that is, what customer … will I be filling?

• What are the geographical limits of my … area: national, re­gional, local, or neighborhood?

• Who are my competitors? What are their … and weaknesses?

• How does my business … from the competition?

• Why should customers do … with me instead of my competi­tion?

Second. Define Your Customers

• What is my customers' age, sex, income, occupation, home ownership status, ethnic background? What are their interests and tastes?

• Which of my customers' … and patterns of behavior are relevant to my business?

• How do I expect my customers to … about my products and ser­vices?

• Where do my customers buy these … now? What do they read and listen to? How can I get them to come to me?

(marketing, items, habits, follow, business, differ, learn, strengths, consists, needs)

Part 2.