Discussion

1. What is the danger of starting a new firm without adequate financing?

2. Do you think it is advisable for someone planning a new firm to think about what profit it will produce before beginning operations? Why?

3. What do we mean by “planning” a new business?

4. Do you agree with the steps for developing a comprehensive business plan outlined in the text?

5. How would you change them?

6. Explain what the term “the desired income approach to planning a new firm” means to you?

Unit 4. Surveying the market

Assignment 1. Learn the following terms:

projected sales area merely thorough require thorough study satisfy customers pick pick the proper location marketing costs total business costs outside firm market survey attainable sales volume under consideration firm under consideration particular firm seek adjacent area purchasing power obtain reasonably obtain rarely attempt representative group telephone survey questionnaire mail survey rate rate of return reliable anticipate factors of production commercial agent potential investors in advance increase in fees merchant bank network of service centers installation and maintenance overall marketing strategy expect a downturn successful rivals lucrative market

планируемый район сбыта только, просто основательный, доскональный; тщательный требовать тщательного изучения удовлетворять покупателей выбирать, отбирать выбрать подходящее расположение маркетинговые затраты совокупные расходы предприятия (компании) фирма аутсайдер изучение рынка достижимый объем продаж на рассмотрении, рассматриваемый; обсуждаемый рассматриваемая фирма определенная фирма искать соседний район покупательная способность получать, достигать, добиваться приемлемо достигать редко пытаться представительная группа опрос по телефону опросный лист, анкета опрос по почте показатель, степень, коэффициент коэффициент окупаемости надежный предвидеть, ожидать факторы производства торговый агент потенциальные инвесторы досрочно, заблаговременно увеличение гонорара торговый банк сеть обслуживающих центров установка и техническое обслуживание общая маркетинговая стратегия ожидать спада деловой активности успешные конкуренты прибыльные рынки

Assignment 2. Practice the pronunciation of the following words:

potential, projected area, merely, product, to require, thorough, ingredient, to specialize, survey, reasonably, specific, particular, point of view, beyond, center, adjacent, procedure, characteristics, purchasing power, to use – use, designated, rarely, representative, national, meaningful, answers, sound questionnaire, to summarize, truly, courteous, key data, basic, especially, successful, experience, opinion, sought, reliable, to interpret, although.

Assignment 3. Read and translate the text:

TEXT

It is very important to have the facts about how many potential buyers are in your projected sales area and to know their needs and wishes before you invest. It is better to have the facts than to merely have a feel for how your products will sell. This requires thorough study of the market you propose to serve.

The total marketing соnсерt. It involves matching the firm’s products or services with the needs and desires of those people who will buy them, whether now or in the future. Marketing planning must include all the ingredients necessary to satisfy customers, including producing the product they want, picking the proper location for your firm, determining the correct promotion and advertising plans and many other factors that lead to customer satisfaction. Marketing costs for small firms can be as much as 50 per cent of total business costs. Planners may employ an outside firm to study their suggested market; advertising firms and market research firms often specialize in such surveys.

Objective of a market survey is to determine a reasonably attainable sales volume in a specific market area for a specific type of business. This means finding out how many potential consumers for the planned merchandise or service there are in this market and how many of them can reasonably be expected to become customers of the firm under consideration.

What is a mаrket? The market or trading area for a particular firm is the area that it seeks to serve with its products or services. From the buyer’s point of view, it is the area within which the buyer knows he or she can find desired goods and services at desirable prices. Sellers may desire to expand their market beyond the limits that are normally recognized by buyers. Market areas may change with the development of new shopping centers in adjacent areas. At any given time, a market has its limits set by the area within which the firm can economically sell its goods or services.

Procedure for making a market survey. The procedure will vary from factory to wholesaler to retailer. In all cases, however, it will seek to determine the number of customers in the market area who may become customers for the planned business. For retailing, the steps should include the following:

1. Determine the limits of the market or trading area.

2. Study the population within this area to determine its potential sales characteristics.

3. Determine the purchasing power of the area.

4. Determine the present sales volume of the type of goods or services you propose to offer.

5. Estimate what proportion of the total sales volume you can reasonably obtain.

“People surveys” for collecting market information. One effective method for gathering market information is the use of “people surveys”, which are made by surveying the population in a designated market area. Such surveys can rarely attempt to reach all persons in the area; instead the market researchers select a representative group of persons to be contacted. Even the highly important national television ratings, for example, involve the use of only about 1,200 homes.

Small firm planners may use 3 different types of people interviews. These are: 1) Telephone surveys, 2) Mail surveys, 3) Personal interviews. Specific questions that will provide meaningful answers that can then be analyzed should be built into each type of interview questionnaire. Each type of interview has characteristics that can be summarized as follows:

1. Telephone surveys. This type of interview offers the advantage of economy and speed in the collection of desired data. To be effective, telephone surveys demand short, clear and easily understood questions, A sound questionnaire, a truly representative sample group and courteous telephone interviewers are the only requirements for gathering the key data, which are then analyzed.

2 Mail surveys. Using the mail to gather basic data is more expensive than telephone interviews but still much less expensive than personal interviews, especially when a large market area is being studied. The rate of return is the key to whether or not it is successful. Today a 40 per cent return on such mail survey is considered excellent. Experience has shown that the shorter the interview sheet, the higher the rate of return.

3. Personal interviews. Personal interviews require much more time than other types and, accordingly, are the most expensive kind of survey to conduct. But when a broad section of opinion is being sought they are usually considered the most reliable. They enable the interviewer to interpret questions, to explore the respondents’ opinions, and to identify areas of information that although not anticipated may be valuable in the final analysis of data collected.

Notes to the text:

1. whether … or – либо … либо

2. point of view – точка зрения

3. beyond the limits – за пределами, за границами

4. instead – вместо, взамен

5. the only – единственный

6. the shorter … the higher – чем короче … тем выше

7. much more time – гораздо больше времени

Assignment 4. Answer the following questions:

1. Why is it very important to know the number of potential buyers, their needs and wishes in your projected sales area?

2. What does the total marketing concept involve?

3. What is a market survey? What is its objective?

4. How many definitions of a market are given in the text? What are they?

5. What can you say about the procedure for making a market survey?

6. What steps should be included for retailing?

7. What is an effective method for gathering market information?

8. How are “people surveys” made?

9. What types of people interviews may small firm planners use?

10. Can you compare telephone surveys, mail surveys and personal interviews for cost, coverage and effectiveness?

Assignment 5. Fill in the gaps with the words and expressions from the text.

1. This requires … … of the market you propose to serve.

2. … … for small firms can be as much as 50 per cent of total business costs.

3. Objective of a … … is to determine a reasonably … sales volume in a specific market area for a specific type of business.

4. The market or trading area for a … firm is the area that it … to serve with its products or services.

5. Market areas may change with the development of new shopping centers in … … .

6. Such surveys can … … to reach all persons in the area; instead the … … select a representative group of persons to be contacted.

7. A sound …, a truly … … group, and courteous telephone interviewers are the only requirements for gathering the … …, which are then analyzed.

8. But when a broad section of … is being sought they are usually considered the most … .

Assignment 6. Match the words with their definitions.

market survey, attempt, costs, rarely, purchasing power,

survey, obtain, reliable, attainable, questionnaire

1. The work of finding out what kind of goods consumers want, what they are willing to spend and how to persuade them to buy.

2. Of money, the amount of goods and services that money can buy at a given time. It varies in the opposite direction to changes in the level of prices i.e. when prices rise, its power falls.

3. The work of collecting information about the people’s tastes and opinions from a sample of population in order to plan how to advertise, distribute and sell a product.

4. A written list of questions which are answered by a lot of people in order to provide information for a report or a survey.

5. Payments to the factors of production.

6. Something that can be reached or achieved.

7. To get something or achieve.

8. Not very often.

9. To try to do something or achieve it especially when it is something difficult.

10. Something or someone you can trust them to work hard or well, or always to act, behave, or happen in the way that you want them to.

Assignment 7. Supply the sentences with the missing words.

under consideration, particular, seek, market survey,

merely, pick, thorough, anticipate, rate, adjacent

1. … … are very important to business success.

2. What is your success … ?

3. He took me to the … room.

4. This is not genuine. It’s … a reproduction.

5. The commercial agent is … in his work.

6. Just … what suits you and leave the rest.

7. It’s impossible to … when failure will happen.

8. The case was still … … .

9. This is the end of the growth of that … part of the plant.

10. Thousands of people were … food and shelter.

Assignment 8. Market partners. Complete the commentary.

market economy market price market forces

market place market research

1. A … … is one where things are bought and sold freely and not under government control.

2. In a market economy, prices are decided by … …, the factors that influence the demand for things, their availability and consequently their price.

3. … … means the same as market.

4. … … is the gathering of information on markets, products and consumers: on what people need, want and buy; how and when they buy and why they buy one thing rather than another.

5. … … is used to indicate that a price has been decided by the market, and not in some other way, for example by the government.