Subject for study: The marketing mix. Working on the text.

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

The Role of the Product in the Marketing Mix.

The marketing mix refers to all or a particular combination of ac­tivities a firm uses in marketing its product. The four basic elements in the marketing mix are the product, the channels of distribution, the pricing structure, and the promotional activities, which generally include advertising and personal selling.

The remainder of this part will examine the role of the product in the marketing mix.

Consumer vs. Industrial Goods

All products may be classified as being either consumer goods or industrial goods. Consumer goods are those goods purchased by indi­viduals for their own personal use rather than for business use. Indus­trial goods are goods sold by one business firm to other business firms.

Example

A single item may be both a consumer good and an industrial good, depending on the status of the purchaser. For example, a student buying a typewriter for use in his college course is buying a consumer good. A business firm buying that same type­writer is buying an industrial good.

Consumer goods. There are three basic categories of consumer goods:

Convenience goods. Convenience goods are inexpensive goods that consumers wish to buy at the most convenient location and with a minimum of effort. Typical examples are cigarettes, candy, newspapers, and staple grocery items. While consumers realize that some savings might be achieved by comparing prices at different stores, most feel that such savings would not justify the additional time and effort.

Shopping goods. There are some goods that people expect to shop for. Shopping goods carry relatively high price tags and are purchased less frequently. Examples would include automobiles, furniture, and major appliances. Consumers feel that the extra time and effort ex­pended in comparing these items in several outlets will pay for itself in terms of better quality or price savings.

Specialty goods. These are goods consumers are willing to make a special effort to buy. However, they are available in only relatively few outlets in any given area. Health foods, hobby supplies, musical instru­ments, and expensive furs and jewelry are typical examples.

It should be noted that what may be a convenience good to one individual may be a shopping or specialty good to another because of the buyer's socioeconomic status and demand at the time. Also, many products that were at one time shopping or specialty goods have today become convenience goods. For example, most supermarkets stock many nonfood items simply because today's consumer expects to buy them at their most convenient location.

Industrial goods. Some products are sold to industry, not to indi­vidual customers. If your product or service is designed for industrial use, you will be marketing it to lists of client industries such as food processors, steel mills, electronic plants or clothing factories. In mar­keting industrial products and services you will be focusing on specifi­cations, dimensions, blue prints, and technical details. Industrial cus­tomers want easy installation, on-site training of their workers, low cost, and reliability.

Ex.2. Say what you have learned about:

1. classification of all products;

2. three basic categories of consumer goods;

3. the peculiarities of marketing industrial goods.

Ex.3. Think and answer.

1. Why may a single item be both a consumer product and an industrial one?

2. In what cases will extra time and effort pay for itself?

3. Why do most supermarkets stock nonfood items?

4. What is the difference between the process of marketing consumer goods and industrial goods?

Lesson 3

Unit 1.