Exhibit 7 New-Product Development Process

Notes to Exhibit 7:

screening - просмотр

ROI – return on investment - прибыль на инвестиции

rough estimate - приблизительная смета

verification - подтверждение

R & D – research and development - исследования и опытные разработки

evaluation - оценка

marketing plan - план сбыта

commercialization - реализация

to finalize - окончательно согласовать

4.3 Assignments

4.3.1 Explain the meaning of the following phrases in Russian:

- the need-satisfying offering;

• services are intangible;

• to modify current products;

• to meet changing competitor’s actions;

• new-product planning;

• a life cycle;

• to avoid expensive new-product failures;

• a new product-development process.

4.3.2 Read the following sentences attentively and say in which of them the word “one” is a substitute for a noun:

A service is a deed performed by one party for another.

A new product is one that is new in any way for the company concerned.

4.3.3 Find sentences in the text which explain:

1. the difference between a good and a service;

2. the main reason for developing new products.

4.3.4 Find English equivalents fоr the following words and word-groups used in the text. Translate the sentences with these equivalents into Russian

• предоставить покупателю услугу;

• большинство рынков;

• продолжать разрабатывать новые товары;

• необязательное дело;

• новая идея;

• только в течение ограниченного времени;

• антимонопольные законы.

4.3.5 Answer the following questions:

What is Product?

Is a good more important for a customer than a service?

What makes producers develop new products?

In what cases does a product become new?

How long does a product life cycle usually last?

What is the new-product development connected with?

4.3.6 Translate the last paragraph of the text using a dictionary

7. Copy out the topical sentences of each paragraph of the text. Write a summary of the text using these sentences

7. Retell the text in short using Exhibit 7

7. Work in pairs:

a) Study all the steps of an organized new-product development process with your fellow-student using Exhibit 7 and the notes to it;

b) Speak about the first 3 steps of a new-product development process. Let your fellow-student comment on the rest 2 steps. Do it in Russian then in English. Help each other in this activity.

7. Analyze the structure of the sentences from text B and translate them into Russian in written form:

There are so many brands – and we’re so used to seeing them – that we take them for granted.

A good brand speeds up shopping for the customer – and thus reduces the marketer’s selling time and effort.

When customers repeatedly purchase by brand, the brander is protected against competition from other firms.

3. Text B. Branding. (Read the text and say whether there are answers to the following questions in it:

• Why are brands so important for both their owners and customers?

• What is branding?

• What is a trademark?

• How is branding connected with the quality of a product?

• In what cases is a brand not used by well-known firms?

• What is the battle of the brands?)

There are so many brands – and we’re so used to seeing them – that we take them for granted. Brands are of great importance to their owners. They help identify the company’s marketing mix – and they help consumers recognize the firm’s products and advertising.

Branding means the use of a name, term, symbol, or design – or a combination of these – to identify a product. It includes the use of brand names, trademarks and practically all other means of product identification.

Brand name has a narrower meaning. A brand name is a word, letter, or a group of words or letters.

Trademark is a legal term. A trademark includes only those words, symbols, or

marks that are legally registered for use by a single company.

Manufacturer brands are brands created by manufacturers. These are sometimes called “national brands” because the brand is promoted across the country or in large regions.

Dealer brands are brands created by middlemen. These are sometimes called “private brands”. Some of these are advertised and distributed more widely than many national brands.

The battle of the brands is the competition between dealer brands and manufacturer brands. The “battle” is just a question of whose brands will be more popular – and who will be in control. Customers benefit from the “battle”. Price differences between manufacturer brands and well-known dealer brands have already narrowed due to the competition.

4.4.1 Translate the following words and word-groups into Russian:

• brand; branding; brander; by brand; brand name; brand promotion.

• to identity; for identifying; identification; product identification.

• to produce; producer; product; food products; to promote and protect the product; to create a new product; production.

4.4.2 Is it right that:

• brands are so numerous that we take them for granted?

• with so many brands customers have difficulties to identify the company’s product?

• branding includes brand names and trademarks?

• manufacturer brands may be called “national brands”?

• customers benefit from the “battle” between manufacturers and middlemen?

4.4.3 Show the order in which the ideas listed below come in the text

1) Dealer brands are sometimes called “private brands”.

2) Brand name has a narrower meaning.

3) Customers benefit from the “battle of the brands”.

4) Branding helps identify the product.

5) Trademark is a legal term.

6) Manufacturer brands are sometimes called “national brands”.

4.4.4 Render the text about the history of branding in Russian:

Branding started during the Middle Ages – when craft guilds (similar to labor unions) and merchant guilds formed to control the quantity and quality of production. Each producer had to mark his goods so output could be cut back when necessary. This also meant that poor quality - which might reflect unfavorably on other guild products and discourage future trade - could be traced back to the guilty producer.

Brand promotion has advantages for branders as well as customers. A good brand speeds up shopping for the customer – and thus reduces the marketer’s selling time and effort. And, when customers repeatedly purchase by brand, the brander is protected against competition from other firms. This can increase sales volume and reduce promotion costs.

4.4.5 Retell the text about the history of branding in 5-6 sentences

4.4.6 Speak on:

- branding;

• brand name;

• trademark;

• manufacturer brands;

• dealer brands;

• the battle of the brands;

• the history of branding.

3. Text C. (Translate the text in written form using a dictionary)

Packaging involves promoting and protecting the product. Packaging can be important to both sellers and customers. Packaging can make a product more convenient to use and store. It can prevent spoiling or damage. Good packaging makes products easier to identify and promotes the brand at the point of purchase and even in use.

A new package can make the important difference in a new marketing strategy – by meeting customers’ needs better. A better box, wrapper, can, or bottle may help create a “new” product.

A good package sometimes gives a firm more promotion effect than it could possibly afford with advertising. The package is seen in stores – when customers are actually doing the buying. The package may be seen by many more potential customers than the company’s advertising. An attractive package may speed turnover so much that total costs will drop as a percentage of sales.

Packaging costs as a percentage of a manufacturer’s selling price vary widely – ranging from 1 to 70 percent.

4.5.1 Give the title for the text

4.5.2 Make a list of marketing terms used in the text

4.5.3 Compose 5 disjunctive questions to the text in written form

4.5.4 Prepare to make a report on a new-product development process and

packaging

4.5.5 Check if you remember the active vocabulary of the unit. Choose the Russian equivalents for the English ones:

1 life cycle; 2 tangible; 3 to survive; 4 existing; 5 means; 6 competitor; 7 as well as; 8 expensive; 9 packaging; 10 purchase; 11 offering; 12 brand; 13 customer; 14 quality; 15 trade;

1 выживать; 2 покупатель; 3 марка; 4 дорогой; 5 усилие; 6 преимущество; 7 существующий; 8 средство; 9 владелец; 10 торговля; 11 материальный; 12 конкурент; 13 предложение; 14 покупка; 15 качество; 16 упаковка; 17 а также; 18 фирма; 19 жизненный цикл; 20 ускорять.

5 Unit

The Problem Area of the Unit: Grammar:

What is Place? The Infinitive constructions

What kinds of channel systems

exist in marketing?

5.1 Pre-Text Exercises

5.1.1 Memorize the following words and word-groups from the texts of the unit:

place to make available to require utility		- размещение; распространение (товаров) - предоставлять что-либо - требовать - полезность
possession channel of distribution to handle objective attitude to be aware of to adjust flow transaction order effort in effect corporate ownership wholesale outlets retail outlet to retain flexibility	- владение; собственность - канал распределения - регулировать; управлять - цель - позиция; отношение - знать; осознавать - регулировать - поток - сделка - заказ - усилие - в действительности - корпоративная собственность - оптово-торговые отделения промышленных фирм - розничный магазин - сохранять гибкость

5.1.2 Match the following English words with their Russian equivalents:

to offer quantity middleman order time utility to rely on need to join common to cooperate to suffer advantage accounting flexibility pushing (a product) pulling

сотрудничать преимущество «проталкивание» (товара) полагаться на заказ страдать гибкость обычный предлагать «протягивание» присоединяться полезность, порожденная своевременным предложением товара комиссионер количество учет нужда

5.1.3 Read and translate the following words into Russian without using a dictionary:

- product; - location; - selection; - specialist; - variation; - series; - firm; - produce;

- traditional; - various; - policies; - vertical; - activity; - plantation; - integration; - contract.

5.1.4 Form nouns according to the model and translate them into Russian

Model: to develop (v) + ment = development (n)

развивать - развитие

to appoint to agree to improve to adjust to advertise to manage

- назначать; - соглашаться; - улучшать; - регулировать; - рекламировать; - руководить;

5.1.5 Guess the meaning of the following derivatives. Pay attention to the parts of speech they belong to:

1. to select - выбирать, отбирать;

selection; selective; selector; selected.

2. to depend - зависеть;

dependent; independent; dependence; independence; dependency.

3. to use - использовать;

user; usage; usable; used; useful; useless.

d) to consume – потреблять;

consumer; consumption; consumables.

5.1.6 Change the sentences according to the model using Complex Subject. Translate the sentences into Russian

Model: It is known that many producers use middlemen.

Many producers are known to use middlemen.

Известно, что многие производители пользуются услугами комис-

сионеров.

It is said that many industrial products are sold by the producer direct to the customers.

It is reported that the firm handles the whole distribution itself.

It is considered that direct-to-user channels are not uncommon.

It is expected that the service will be produced in the presence of the customer.

It is supposed that service firms often use direct channels.

It is known that specialists will come together to form a channel of distribution.

5.1.7 Make up sentences according to the model paying attention to Complex Object. Translate the sentences into Russian

Model:	The marketing manager wants the product to be competitive.
	Управляющий маркетингом хочет, чтобы продукция была конкурентоспособной.

Prompts:

the firm to be successful; the product to be available in the right location; the firm to develop a new product; the company to improve the packaging; the new product to be profitable; the brand to reduce selling time; the producer to use middlemen.

5.2 Text A. Place. (Read the text and try to understand it to be able to do the assignments that follow)

1. Offering customers a good product at a reasonable price is important to a successful marketing strategy. But it is not the whole story. Managers must also think about Place - making products available in the right quantities and locations - when customers want them.

2. Place often requires the selection and use of marketing specialists-middlemen and facilitators - to provide target customers with time, place, and possession utilities. But many variations are possible. Specialists are involved and they come together to form a channel of distribution - any series of firms or individuals who participate in the flow of goods and services from producer to final user or customer.

3. Some producers prefer to handle the whole distribution job themselves. They don't want to rely on independent middlemen - who have different objectives. And some just want to control a large organization. In any case, there are often great advantages in selling direct to the final user or consumer. Direct-to-user channels are not uncommon. Many industrial products are direct. This is understandable since there are fewer transactions and orders are larger. Service firms often use direct channels. Marketing managers must choose among direct and indirect channel systems.

4. Typically, producers have to use middlemen - like it or not. Although a producer might prefer to handle the whole distribution job, this is not economically possible for many kinds of products. This means that they must either join or develop one of the indirect channel systems.