The Language of Small Business Texts and Vocabulary Training (for students of Economics) Part 1. Учебное пособие

The right name

A competitive price – one which is lower than that of rivals, or which gives better value for money.

Running costs/overhead costs – variable costs that are not directly related to a particular article produced, but are costs which are common to a number of other articles

Guarantee – a promise given by a manufacturer or other supplier in writing, that the article sold is of good quality and that he will make good any faults for which he is responsible, if claimed within a stated period, usually a year.

Warranty, com. – a promise or statement by the seller to the buyer concerning the quality of the goods or their fitness for a particular purpose.

Without warranty – the goods are being sold on the condition that the seller has no responsibility for any faults or imperfections in the goods, and that the buyer has no right to return them or to claim damages or any other remedy.

Profit:

1.the amount by which the piece received is greater than the cost; the difference between business income and expenses. Opp.: loss, deficit

Syn.: surplus

2.econ. theory – the difference between the price received for a product and the amounts paid as rewards to the factors of production: to land as rent, to labour as wages and salaries, and to capital as interest. What remains is profit or loss depending on whether the amount received is greater than the amounts paid. Profit has been variously described by economists as reward for the businessman's enterprise in accepting the risks and uncertainties of business, and as a payment for skilled management.

Share, stk. exch. – a particular separate part, or portion into which the capital of a company is divided. Ownership of a share gives the owner, called a member or a shareholder, the right to receive a share in the profits of the company and to share in its management. Shares can be bought and sold on a stock exchange in lots or parcels according to their price. In a

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limited liability company, the liability of the shareholders is limited to the amount of their shares in the company. In the USA., although the capital of a stock corporation, the equivalent of a company, is divided into shares, they are called “stock” and their holders are called “stockholders”.

Market research – the work of finding out what kind of goods consumers want, what they are willing to spend and how to persuade them to buy. This information is used by manufacturers before producing a new product and putting it on the market. The work is done by market researchers who make a market survey, using various methods such as questioning large numbers of possible consumers and retailers, and market tests, testing the market by selling the product in a small area.

Competitor analysis forms a branch of market research. This is the practice of many producers and wholesalers of examining very carefully the competing products in the market, comparing them with their own and finding out in what ways their own products can be changed or improved so as to obtain a larger share of the market.

Survey – a sampling or partical collection of facts, figures, or opinions and analysis of the data.

Market testing – a research technique in which the product is sold at selected locations while its reception by consumers is observed.

Mail order house – a company selling a wide variety of goods, sending them by post direct from its warehouse to the customer. Orders are collected or obtained, with the help of an illustrated catalogue, by agents who are paid by commission. Prices are kept low by avoiding the cost of running retail shops, and by buying in bulk. Payment is accepted by instalments, usually without extra charge.

Trader:

1.com. A person whose occupation is to buy and sell goods with his own money and for his own profit; a merchant.

2.shipg. a merchant ship, esp. a tramp ship.

Sole trader – a trader who owns his own business, manages its affairs, provides the capital, and bears all the risk.

Invoice, accts. & com. – relating to the sale of goods or services. A separate document, sent by the seller to the buyer, for

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each sale, giving details of the goods sold. An invoice may be a record of credit sale, or a demand for payment, or a paper giving information. Every invoice must give certain basic information: the names and addresses of the seller and the buyer; the dates and numbers of the invoice and the order; a description of each kind of goods bought, the quantity, price per unit and total price of each kind; the total price of the goods; the discount allowed; the total amount of the invoice. Depending on its purpose, an invoice may also give: the number of packages (bales, cases, cartons, etc.) and their marks; responsibility for insurance of the goods while being carried, etc. Export invoices usually need special treatment.

Compliments slip – a printed slip of paper bearing the words “With the compliments of” followed by the name and address of the person or organization sending it. Such slips are enclosed with other material to show who has sent it, and are used only when there is no need to enclose a letter.

Compliments, pl – an expression of friendly greeting: “Please accept this book with our compliments”, meaning that it is offered free of charge. “The compliments of the season” – greetings fit for the occasion, such as at Christmas and the New Year.

Self-employed person, com. & ind. – a person who works for himself, who is not employed by anyone else, such as the owner of a small business, a craftsman, artist, writer or jobbing gardener.

Letterhead (ing) – the heading printed usually at the top of the notepaper on which letters are written or typed, giving the full name and address of the person or organization, telephone and telex numbers, cable and telegraphic addresses, and other useful information.

Definitions of terms

Конкуренция – постоянно действующий механизм со- перничества товаропроизводителей, фирм и корпораций, обусловленный противоречивостью их интересов в области производственно-сбытовой и торговой деятельности.

Недобросовестная конкуренция – нарушение принятых на рынке норм и правил конкуренции: демпинг; установле- ние контроля над деятельностью конкурента с целью пре- кращения его деятельности; дискриминационные цены или

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коммерческие условия; тайные сговоры и картели; подделки и т. п. В большинстве стран запрещена законодательно.

Неценовая конкуренция – предложение товаров более высокого качества, с большей надежностью, сроком службы и т. п., обеспечение послепродажного обслуживания.

Конкурентоспособность – совокупность потребитель- ских свойств данного товара или продукции, характеризую- щая их отличие от товара-конкурента по степени соответствия конкретным потребностям с учетом затрат на их удовлетво- рение. Обязательные составляющие конкурентоспособности: технический уровень продукции, ее качество и ориентиро- ванность на определенного потребителя» условия сервиса, уровень снабженческо-бытовой сети, реклама и т. д.

Накладные расходы – расходы на управление и хозяйст- венное обслуживание производства.

Акция – ценная бумага, свидетельствующая о внесении известного пая в капитал акционерного общества и дающая право на получение части прибыли в виде дивиденда. Денеж- ная сумма, обозначенная на акции, называется номинальной стоимостью акции, а цена, по которой акция продается на рынке, именуется курсом акций. Курс акций находится в прямой зависимости от получаемого по ним дивиденда и в обратной зависимости от нормы процента.

Новое изделие – в маркетинге это понятие связано с лю- быми серьезными изменениями в форме, содержании или упаковке изделия, которые имеют значение для потребителя. Главным критерием новизны изделия являются не сами изме- нения в материалах и компонентах, а то, насколько его отли- чие от существующих изделий может служить основой для формирования предпочтительного отношения к этому изде- лию потребителя и может быть использовано в качестве рек- ламного мотива для характеристики его достоинств.

Счет-фактура — документ, в котором перечислены то- вары и указана стоимость. Высылается продавцом покупателю при отгрузке товара. Обычно подготавливается на стандарт- ном бланке с указанием подробной информации о грузе, не- обходимой для таможни, страховании товара и банка.

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For discussion

1.“A product name should carry a message to potential or existing customers”. What is implied in this phrase?

2.What are the common reasons for people to buy the product? Which of them do you consider to be most important and why?

3.What gives the product its reputation?

4.What is absolutely important in selecting a name for the product?

5.Why does the author say that if you have separate names for the product and for the business, you are promoting only one name?

6.Dwell on the statement: “Building an image for your product is a low-risk safety route”.

7.Logo: what is it?

8.You will not be able to register a name which could give the impression of connection with the government or local authority. Why?

9.Why shouldn't you take up every opportunity to publicize your business name while building your reputation?

10.Why are letterheads important to create the right image with suppliers, not so with customers?

11.Why is packing very important and of what kind should it be?

Summary

1.Люди покупают определенные товары и услуги по рацио- нальным и эмоциональным причинам.

2.Надо стремиться создать у покупателей «хорошее ощуще- ние», образ товарного знака, репутацию своего товара. Убедитесь, что ваш товар может отвечать этому.

3.Проанализируйте свой рынок и потребности покупателей, чтобы принять решение о своем имидже.

4.Бизнесу и названию товара требуется время, чтобы создать имидж.

5.Пусть для вас разработают логотип, если вы можете позво- лить себе это.

6.Постарайтесь внести в название своего товара как можно больше приятных (или положительных) ассоциаций.

7.Реквизиты – это очень важный способ представления ин- формации о вашем бизнесе. Этикетки, упаковка должны полностью соответствовать вашему стилю.

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Unit 5.

Selling

The simple truth is that if you do not make any sales you do not have a business. This chapter looks mainly at direct selling: the face-to-face encounter, the telephone conversation or the demonstration.

However, one important rule for you to remember is that every part of your business will be involved in selling, in the search for more sales. This extends from answering the telephone, to your notepaper and literature, to any person or activity in your business which may one day come into contact with an existing or potential customer. Train everyone who answers the telephone in the correct way to do it; they must be prompt, polite, friendly and helpful. If necessary, provide them with a script to follow.

The first step in gaining sales is to plan and organize. You will need to keep records of your present customers, as well as keeping track of your negotiations with potential ones. If you do not record what has happened, possible sales can drop through the cracks, for example, if you fail to follow up an initial contact or forget to provide something which is promised.

Sales records are needed for another reason; to help in business planning. For example, you will need to know week by week what is the likely level of your sales so that you can forecast what working capital you will need to fund.

The second step for effective selling is to brush up personal selling skills. If you are going to do the selling, and it has not been your job previously, it is vital to have well-thought-out dialogues and presentations. It could well be worthwhile to spend some time acquiring some training in selling skills by attending a specialized training course.

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How to Increase Sales

Probably the quickest and easiest way to increase sales is to persuade existing customers to buy more of your product, more frequently. You may even be able to convince them to buy other products you offer. But a business will not prosper on current customers alone; you must be able to broaden your base and sell to new businesses or buyers.

Existing Customers

When a new customer signs an order, this is not the end of the selling story. You should aim to build up a long-term relationship, because, in most businesses, you will be hoping for repeat orders or for additions to the original order. These will not come to fruition if you do not follow up orders, see they are delivered on time, or, if they are going to be late, warn your customer in advance. You need to give prompt attention to any problems or criticisms.

If your business depends on a few sizeable customers, it will be important for you to establish a network of contacts in the customer's business, not just the buyer.

Another important reason for building up a good working relationship with your present customers is that they can often be the source of your new business, too. They may be able to suggest others in the same line of business who may be considering buying a similar product to yours. They may even be willing for you to use their name as an introduction. If the customers are very satisfied with your service or product they may be willing to act as a reference for you, although obviously you must ask first. A reference means that you can give their name to potential customers and they will be prepared to discuss your business with them.

At some stage, preferably before your business has really got going, you should plan a way of recording information about your present customers. The record will need to be tailored to your individual business or product, but more than likely should include:

•name, address and telephone number of business;

•customer's type of business;

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•what the customer has bought from you, how frequently and in what amounts;

•the name of the decision-taker, plus his position and the names and positions of other contacts within the firm;

•the customer's credit-rating or information about paying;

•a record of visits;

•any complaints and how they were resolved.

New Customers

The first stage in acquiring new customers is to work out a possible list by market research and other methods. You may, for example, start with the raw list which you use for doing mailings. But you could not possibly follow up and sell direct to everyone on this list; your efforts would not be effective because you would not be pinpointing those most likely to buy. So the list needs narrowing.

This is done in many ways:

•following leads: leads are those people who have approached you, either as a result of your advertising or mailers or having seen your business at an exhibition, they may have asked for your literature or for a demonstration or simply expressed interest;

•using referrals ask your existing customers if they know of other businesses who might be interested in your product or service. On the whole, referrals are more likely to lead to a successful sale than a lead, because you have several advantages, you already have an introduction, you know something about the person you are trying to sell to and your existing customer may have already expressed satisfaction with your business;

•by qualifying potential customers: when you are first starting up your business, you may not have any referrals or leads to follow. All you may have is a list you have built up from market research. To reduce the list to the best prospect for you, you need to qualify. Find out the name and position of

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the decision-taker. Look for information about the potential customer's business. Work out what are likely to be the main factors which mean a business is likely to buy your product or service. This could be volume of sales, numbers of employees, location. You also need to know if the potential customer is considering buying a product like yours or has recently bought out. Your market research will identify what the key factors are for your product or service.

Two important aspects of sales organization are:

1.recording the information you have about each potential customer;

2.devising a strategy for following up at regular intervals those potential customers who are not interested in buying just now, but may do so in the future. Keeping in touch is important.

Howdo you sell?

There are six possibilities:

•you, directly as a salesperson;

•sales representative;

•agent;

•distributor;

•mail order;

•over-the-counter;

•consortium or joint venture.

You

When you are first starting your business, or if it is a very small one, it is more than likely that you will be selling yourself. If you have not previously worked on this role, the prospect may be fairly daunting. But you are likely to start with one major advantage – complete product knowledge – which is very important for selling. It is possible to acquire and develop many of the personal selling skills which you need. There are many courses available which can help you do this.

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If you are doing the selling, it would be a mistake to think that you do not need to organize and plan because you have stored it all in your head. You need the same information, sales systems and records as any sales rep, see below.

Sales Representative

At some stage you may decide to employ someone else to carry out or help with the selling. To enable a sales rep to work effectively, you need to make several decisions:

•how will the rep be paid?

•how much training is needed?

•what sort of back-up organization and system will be needed?

•how to control the rep's activities.

Pay

Most sales people will have an element of business-related remuneration. The purpose is two-fold. Firstly, commission or bonuses can be a motivator for sales people to achieve greater sales. Secondly, it allows you to keep your overheads lower by not having to pay a greater fixed salary.

Three of the possible combinations of salary and commission are:

•basic salary, plus commission on all the sales the rep makes. The rate of commission could vary depending on the volume of business already achieved, that is, the more sold the greater the rate. Commission could be based on value of sales, or if there is some discretion on pricing, possibly the amount of gross profit achieved by each sale;

•basic salary, plus commission on sales once a certain level (or quota) has been achieved

•commission only, that is, no basic salary and every sale made triggering commission payments.

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