Vocabulary:

Scrapping – getting rid of things which are no longer useful or wanted в лом

Reworking – changing or improving a product or service

Warranties – guarantees, written promises to repair or replace products that develop a fault

Bountiful – providing a large amount of good things обильный

Headaches – things that cause difficulties

Regulation – official rules or the act of controlling something

Service – to examine a machine and repair any faulty parts

Lapses in quality промежутки

Spend money on/ pay for

Revive – obnovit

No defects/ zero defects

Empowered уполномоченный

Product reliability/durability

Reduction in the number of complaints, increased repurchase rate

Staff turnover

Capable способный

Concern касаться

UNIT 11 - PRODUCTS

Question 41: What is a brand?

• A brand is a name, or a symbol, or a logo that distinguishes различать products and services from competing offerings and makes consumers remember the company, product or a service. It can be reinforced by distinctive design or packaging.

Question 42: What is the difference between corporate and individual branding?

• When companies include their name in all the products, like does Philips, Virgin or Yamaha, it’s called corporate branding. However, if companies give each of their products its own brand name, the company name is less well-know than its brands (e.g. Procter & Gamble – Pampers, Olay, Gilette, Head & Shoulders). That is called individual branding.

Question 43: What is a product mix?

• Companies create so called product lines, where different kinds of product offered in the market are put together. Total number of product lines offered by a company is called product mix. Because the market and customers are evolving quickly, companies often need to update and re-evaluate their product mix.

Vocabulary:

Market – places of business for selling good to customers (shops, stores, kiosk..)

Product mix – all the different products, brands and items that a company sells

Retailers рознич– businesses that sell goods or merchandise to individual customers

Brand – a graphic image or a symbol specially created to identify a company or a product

Packaging- wrappers and containers used to enclose and protect the product

Brand recognition признание – the extent to which consumer are aware of a brand, and know its name

Shelves – surfaces in a store on which goods are displayed

Market share – the sales of a company expressed as a percentage of total sales in a given market

Brand-switchers - consumers who buy various competing products rather than being loyal to a particular brand

Physical assets активы

Book value значение – recorded value of tangible assets such as building or machinery

Market value – combined price of all of its shares доли

Research into pricing

High-frequency passage

Base costs

Trialling, sampling

UNIT 12 – MARKETING

Question 44: What is the difference between market penetration and market skimming?

• During market penetration, company sets low prices to sell a large volume and increase market share, while during market skimming company sets a higher price for their new product to make a maximum revenue before competition appears.

Question 45: What is distribution channel?

• All the companies or individuals (‘middlemen’) involved in moving goods or services from producers to consumers.

Question 46: What is the difference between wholesaler and retailer?

• Wholesaler is an intermediary that stockc manufacturers’ goods or merchandise and sells it to retailers and professional buyers, while retailer sells good directly to individual customers.

Question 47: What is market segmentation?

• Process of dividing market into distinct groups of buyers who have different requirements or buying habits.

Question 48: What is product differentiation?

• Making product (appear to be) different from similar products offered by other selles, by product differences, advertising, packaging etc.

Question 49: What are market opportunities?

• Possibilities of filling unsatisfied needs in sectors in which a company can profitably produce goods or services.

Question 50: What is price elasticity?

• The extent to which supply or demand (the quantity produced or bought) or a product responds to changes of price.

Question 51: How many stages does the product life cycle have? Name them.

• It has four stages – Introduction stage, growth stage, maturity stage, decline stage.

Question 52: Describe the first stage of product life cycle briefly.

• The sales volume is low and costumers have to be persuaded to try the product. The costs are high, because they include the development costs as well as production costs. The prices are either high to maximize revenue before the competition comes, or low to penetrate the market if there already are the competitors. Promotion is important and aimed at education and letting know the potential consumers about it, building product awareness.

Question 53: Describe the second stage of product life cycle briefly.

• Public awareness and sales volume increases significantly. Cost are reduced due to economy of scale, the price can remain because the demand is bigger but competitors aren’t well established. Promotion is aimed at much broader audience.

Question 54: Describe the third stage of product life cycle briefly.

• Sales volume is at its peak, the products feature may be changed to differ from competition, which involves new costs. The prices may have to be reduced because of competitors that are already established in the market, but companies try to maximize their profit. Promotion emphasize product differentiation.

Question 55: Describe the fourth stage of product life cycle briefly.

• The sales volume begins to go down, the cost are either too high compared to the sales (discontinuation of product) or company reduces the costs to minimum while offering the product to loyal customers. The prices are either maintained or greatly reduces to liquidate the stock before discontinuation. There is virtually no promotion.