Product management

I.

Products are like people. Each one is different. Selling a product is like finding a home for a person. Some fit in one place; others need something different. Finding homes for the company’s products is Marketing Manager’s job. Ben is a Marketing Manager. He reports directly to Dan, the Director of Marketing. Some companies have a manager for each product or type of product. Ben decides who will sell each of the company’s products to the customers who use it.

The way a product is sold to the customer who will use it is known as its channel of distribution, or distribution channel. Even though all products are kept in warehouses by the Distribution Division, there are different channels for getting the items to customers who will buy and use them. Even though the salespeople sell all the products, the products are sold to customers in different ways as it depends on how customers normally buy these items. One way that products are sold is directly to customers by the company’s salespeople. This channel of distribution is called direct distribution or selling. It is used only for customers who buy a lot of units or items. This is because of the amount of work it takes to complete an order.

For each order, a salesperson must call on or telephone the customer. The salesperson has to write the order. The order has to be checked for credit. The order has to be checked to be sure inventory is in stock. Then the items ordered must be taken from inventory and shipped to the customer. It is also necessary to write an invoice which bills the customer for the order. After that, it is necessary to collect the money owed to the company. And the salespeople have to do the same basic amount of work if the company sells one item or thousand items to a customer. It’s part of Ben’s job. The marketing manager has to figure out the best way to sell each product the company makes.

If the company sells directly to a customer, the company expects the orders to be large enough to cover the costs of all the work to be done. The company has rules for its salespeople about the size of orders which are expected from direct sales customers. These orders should be large.

For the customers who want to place smaller orders, the company has another channel of distribution – catalogue sales. A catalogue is a book or booklet with descriptions of products. Some catalogues have prices for the items. Outside salespeople use these catalogues with price lists when they call on customers. Ben’s department also has some catalogues which customers use in sending orders directly to the company. These catalogues have the prices of items. In catalogue sales salespeople do not call on or telephone the customers. Instead, the customer looks in the catalogue to see if the company has an item which is needed. If the customer finds the item needed, he writes an order and sends it to the company. Sometimes the customer is asked to send money for the item with the order. Other times, the company ships the item C.O.D. (cash on delivery). With catalogue sales, the company’s idea is to make a lot of small sales. This is different from direct selling, where the idea is to make fewer but large sales.

Ответьте на вопросы к тексту Product management:

1. Why does Ben say that products are like people?

2. What is a channel of distribution?

3. What is direct distribution?

4. What are catalogue sales?

5. How does catalogue selling work?

II.

Another channel of distribution is to sell to wholesalers. A wholesaler is a person or company that buys large numbers or volumes of the products. Some wholesalers are called distributors. A wholesaler usually has warehouses to keep items purchased from manufacturers. Wholesale companies usually have their own salespeople who call on customers and take orders. Wholesalers usually sell the products of a number of manufactures^ wholesale company can have salespeople calling on customers for small amounts of items and still make profit, because they can build larger orders by selling more products.

Wholesalers work closely with the manufacturers whose products they sell. Salespeople for wholesale companies study the products of the manufacturers. The catalogues used in the sales offices of wholesale companies have information and pricing for each manufacturer's product.

Usually, a wholesaler will have what is called an exclusive territory for each manufacturer. This means that no other wholesale will be allowed to sell the manufacturer's products in the area where that wholesaler's salespeople call on customers. It also means that the company will not take orders in that area directly from customers. In addition, an exclusive territory usually means that the wholesaler will not sell products for two manufacturers who make the same kind of items. Companies that make or sell products that do the same thing or that look alike are called competitors. Products that look alike are called competing products. Exclusive territory means that the wholesaler will not sell products of competotors and the manufacturer will not sell products in that area itself or through other wholesalers.

Another channel of distribution is the sales representative. This person is also called a manufacturer's representative. This is a person or a company that sells products for a company without stocking them in warehouses. The job of the sales, or manufacturer's representative is to get orders. Usually he works for two or more manufacturers who are not competitors. Sales representatives are also called "sales reps" or just 'reps". Ben explains: "Sometimes we use reps because they sell one kind of product to customers they know well. Also some reps call on one particular kind of customer whose business they know well. Sales reps can call on these customers and get a lot of small orders for different manufacturers. We couldn't have our own salespeople call on these same customers because we wouldn't sell enough to each customer."

Sales reps are different from wholesalers because reps just sell products. Wholesalers keep inventories and make deliveries. Representatives do not.

Ответьте на вопросы:

1. What is a wholesaler?

2. What is the meaning of an exclusive territory?

3. What is a sales representative?

4. What is the main difference between a sales rep and a wholesaler?

III.

Another important channel of distribution is retailers. Retailers are people or companies who run stores which sell products to customers who come in to buy them. One important thing about the way retailers sell is that customers come to the store to buy what they need.

In wholesaling and in other channels of distribution, salespeople go to the customers. A store is a place of business where items are displaced or shown for customers to look at and to buy. It is important that stores be in places that are easy to visit where customers come in regularly and easily. This is called location. Location is the place or address where a business or building is. Busy locations are places where a lot of people pass a store and look at the merchandise shown in windows.

The marketing manager Ben jokes: "There are three things a retail store needs for success - location, location, and more location."

Inside their stores retailers display merchandise. Display means to show something so it is easy to see and we may say: "The merchandise is shown on displays." In most retail stores, display have signs telling about the products shown and the prices. Stores often sell competitive products. When Ben and the people in his department work with retailers they try to get the best display space for their company's products. It is important to get as much display as possible.

Stores also have inventories. They keep stocks of the products they sell. Usually, inventories are kept in the back of a store, behind the display areas. When items are sold from the displays new stocks are taken from inventory and put on display. Then the store orders more of the same product from a wholesaler or manufacturer. Sometimes retail companies have more than one store and they have the same name. These are usually called chain stores because there are many places linked together with the same name and selling the same type of merchandise. Chain stores have their own warehouses to distribute inventories to their stores. They buy large amounts of products from manufacturers. They take care of their own manufacturing companies Stores also have to watch their inventories. When items are not selling quickly enough, stores usually reduce prices to try to get people to buy them. When a store sells things for special, reduced prices, this is called a sale. Stores advertise their sales to try to get people to come in to buy things. Owners of the stores hope that people who come in to buy things on sale will also buy items at regular prices.

Ответьте на вопросы к тексту:

1. What kind of business is retailing?

2. What is a store?

3. What is a display?

4. Why is location important for a store?

5. Do stores have inventories?

СТРУКТУРА И СОДЕРЖАНИЕ САМОСТОЯТЕЛЬНОЙ РАБОТЫ (II семестр)

Количество часов	Тематика (работа с текстами)			Грамматика
I семестр – 152 часа
120 10 22		Introduction to Banking and Financial Markets Taxes and Public Spending Accounting Information Modern Means of Communication and Electronic Commerce Forms of Business Ownership Auditing Learning about marketing Разговорная тема: Моя профессия (My profession) Контрольная работа №2 (один из трех вариантов)	- Временные формы глагола - Согласование времен - Функции глаголов to be, to do, to have - Неличные формы глагола - Простые формы причастия - Инфинитив и его фун­кции в предложении - Герундий