МАРКЕТИНГ ( ДЛЯ СТУДЕНТОВ) Copy

The history of packaging

The appearance of a product has always affected what people think of it. The Romans recognized wine and water from the shape of their earthenware 1…. In the sixteen century, goods in paper wrappers with their producer’s signature on the outside became a way of authenticating the quality of the product. Then a nineteen-century tea merchant did a 2 … trade when he began putting his tea into sealed bags rather than selling it. 3… With technology and changing lifestyles, packaging has 4 … The mass pro duction of cardboard in the nineteenth century in America and the cheap manufacture of plastics in the last century –5…ensuring more widespread use. Then changing social conditions guaranteed its place in our culture. The rise of self-service supermarket, for example, meant that goods needed to 6 … more for themselves, with no jolly Mr Cornershop to help the housewife make her choice.

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Unit 6

Place: Channels of Distribution and Physical Distribution

When you finish this chapter, you should:

1.understand how marketing specialists adjust discrepancies of quantity and assortment;

2.distinguish different kinds of channel systems;

3.be aware of the physical distribution system and why it requires coordination of storing and transportation.

Talk with a partner about marketing specialists and their job functions. Form nouns referring to people from these verbs. What do they do?

Reading --- PART 1

You will read a passage about marketing channels. Before you read look at phrases taken from the passage. In what context might they be mentioned?

to direct the flow of goods, an international distributor, take title to products.

I. Read the passage and answer the questions that follow (1—4).

DIRECT AND INDIRECT CHANNELS OF DISTRIBUTION

A marketing channel is a system of individuals and organizations supported by facilities, equipment, and information for directing the flow of goods and services from producer to customer. Marketing channels are also frequently referred to as distribution channels because distribution is one of their primary functions. A channel can be simple and direct. For example, at the Granville Island Public Market in Vancouver, British Columbia, farmers sell fruits and vegetables directly to final consumers. The channel in this case consists of a building in which farmers rent stall space.

On the other hand, a marketing channel can be very complex. The dinner plates on which a Vancouver resident serves his farm-fresh produce might have been manufactured in a stoneware factory in Taiwan, exported by an international distributor, transported by a container cargo ship, imported by a house ware wholesaler in Vancouver, then sold by a retailer such as The Bay (a descendant of the original Hudson's Bay Company). The broccoli might have traveled ten miles and made the trip from field to table in less than a day, whereas the plate journeyed thousands of miles and possibly spent months inside various storage facilities.

There are two basic types of channels of distribution: direct and indirect. A direct channel of distribution involves the movement of goods and services from producer to consumer without the use of independent middlemen. An indirect channel of distribution involves the movement of goods and services from producer to independent middleman to consumer.

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A. Direct Channel

200,000 Customers

Figure 6.1. Transactions in Direct Versus an Indirect Channel

MARKETING INTERMEDIARIES

The people and organizations that assist in the flow of goods and services from producer to customer are called marketing intermediaries. Here are the common types:

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∙Middleman. An archaic but often-used term, middleman refers to just about anybody acting as an intermediary between producer and consumer. Obviously, many middlemen are actually middlewomen.

∙Agent or broker. Intermediaries with legal authority to market goods and services and to perform other functions on behalf of producers are called agents or brokers. Agents generally works for producers continuously, whereas brokers may be employed for just one deal.

∙Wholesaler. Wholesalers are organizations that buy from producers and sell to retailers and organizational customers.

∙Retailer. As the last link in many marketing channels, retailers sell directly to final customers. The most obvious form of this intermediary is the retail store, but such diverse efforts as mail order, door-to-door sales, and vending machines are also retailing.

∙Distributor. Distributor is a general term applied to a variety of intermediaries. These individuals and firms perform several functions, including inventory management, personal sales, and financing. This term is more common in organizational markets, although wholesalers are occasionally referred to as distributors.

∙Dealer. Another general term that can apply to just about any intermediary is dealer, although some people distinguish dealers as intermediaries that sell only to final customers, not to other intermediaries.

∙Value-added reseller. An emerging class of intermediaries, called Value-added reseller (VARs), design or enhance the products they receive from producers and then sell the modified products to customers. VARs are particularly common in the computer hardware and software industries, where they buy basic products from producers, add value through such actions as writing special software or integrating several products into one system, and then sell the complete package, This process works well for producers who may not have the expertise to customize products for niche markets and for customer who can get specific solutions to their unique problems.

Note that intermediaries don't necessarily belong to a separate company or organization. Also, marketing intermediaries can be split into two general groups. Merchants assume ownership of goods and then resell them to their customers, whether to other intermediaries or final consumers. On the other hand, functional intermediaries do not take title to products, the producer transfers ownership directly to the functional intermediary's customers. Wholesalers, for example, are classified as either merchant or functional. Merchant wholesalers earn profits by reselling products at higher prices than they paid; functional wholesalers are compensated with fees or commissions.

II.Answer the following questions:

1.What is a marketing channel?

2.What are the functions of marketing channels?

3.Do marketing channels have similar structures?

4.Which basic functions should marketing intermediaries carry out?

III.Read the sentences and say whether they are true or false.

1. Marketing intermediaries generally increase the cost of delivering products to customers.

2 Because each interchange costs money, which shows up in the price of the equipment, lowering the number of transactions lowers the overall cost of delivering products.

3.To alleviate the discrepancies of quantity and the discrepancies of assortment, marketing intermediaries don't engage in regrouping activities and assortments of products.

4.With standardized transactions, even the simplest purchase would be a complicated hassle for customers.

5.Standardization assists intermediaries by allowing them to automate much of the buying, selling and physical distribution required to move products through the channel.

6.Marketing intermediaries provide the valuable service of matching buyers and sellers.

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7.With intermediaries carrying out this matching process, producers are unable to concentrate on what they do best.

8.Providing customer service is a minor aspect of many organizational transactions, where products require installation training, routine maintenance and other forms of attention.

9.Marketing channels don't provide the crucial element of customer support and service.

Vocabulary development

IV. Find words or phases in the articles which mean the same as the following.

1)any way by which news, ideas may travel(paragraph 1);

2)aids, circumstances which make it easy to do things(paragraph 1);

3)to give or send out; to spread out over a large area (paragraph 1);

4)pottery made from clay and flint(paragraph 2);

5)goods carried in a ship, aircraft or other vehicle(paragraph 2);

6)in the interest of, as the representative of (paragraph 6);

7)to add to the value, attractions, powers, price (paragraph 11);

8)expert knowledge, special knowledge, skill(paragraph 11);

9)to break into parts; to divide(paragraph 12);

10)to make a suitable payment; to give something; to make up for loss(paragraph 12);

11)payment for selling goods (paragraph 12).

V. Do you know the names of various types of buildings that may be used in the distribution process. Find in the text corresponding English equivalents.

а) база, склад, хранилище;

b)ларёк, киоск, палатка; прилавок;

c)магазин розничной торговли, в котором товары продаются в розницу конечным потребителям;

d)оптовый склад;

e)розничная торговля с использованием торговых автоматов;

f)магазин; универмаг.

VI. Fill in the missing letters

1.Managers must think about ‘p - - - e’ – making product available in the right quantities and locations – when customers want them.

2.Any series of firms or individuals who participate in the flow of goods and services from producer to final user or consumer is called ‘ch - - - - l of d - - - - - - - tion’.

3. ‘Ph - - - - al d - - - - - - - tion’—the transpo rting and storing of goods to match customer’s needs – is an important part of Place and marketing .

4.Making sure that the customer gets the right goods at the right time is called ‘ order fu - - -

-ment’.

5.A place where goods are sold to consumers is called a ‘retail ou - - - t’.

6.A potential customer is a ‘pro - - et’.

7.A synonym for ‘intermediary’ is ‘the mi - - - - man’ .

8.A retailer has a shop (AmE store), while a wholesaler has a ‘w - - - - ouse’ .

9.The process of selling products connected with a popular film, person or event is called ‘mer - - - - - ising’. In American English this word is also used for ‘selling goods’ in general.

VII. Make collocations by matching a word from each column. Use them in the sentences of

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Reading --- PART 2

Wholesalers and Retailers

VIII. These are the paragraphs from two articles about wholesalers and retailers that are mixed. Combine two articles, putting paragraphs in a logical order:

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IX. Look through the articles and find the key words for the following Russian definitions

1)paragraph a -- рентабельность продаж, маржа прибыли (рассчитывается как выраженное в процентах отношение чистой прибыли к выручке от продаж; иногда рассчитывается по валовой прибыли, т. е. как отношение разности между выручкой и себестоимостью реализованной продукции к выручке от продаж);

2)paragraph b -- розничная торговля вне магазинов (по NAICS 2002: подсектор экономики, в который включены организации, занимающиеся розничной торговлей по заказам (напр., по почте, интернету, через телемагазины), через торговые автоматы, или прямой продажей (напр., торговля вразнос);

3)paragraph c -- итоговая цена, подлежащая уплате за товар или услугу, полученная путем включения в первоначальную цену производителя различных налогов, платы за доставку;

4)paragraph d – психографический фактор;

5)paragraph e -- затраты на создание и хранение товарных запасов плюс затраты по подготовке запасов к использованию (совокупность капитальных и текущих затрат, связанных с передачей запасов в производство);

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6)paragraph f -- колесо розницы (концепция эволюции розничных магазинов, которые появляются как недорогие удобные магазины, но по мере успеха вводят новые услуги и товары и начинают вытесняться новыми недорогими магазинами);

7)paragraph g – эффективность;

8)paragraph h -- достичь больших успехов

Grammar Review. The Passive

X. Read the passage and insert the verbs into the correct passives tense. to use, to need, to standardize, to use, to classify, to use.

Marketing channels _____ generally as channels for consumer products or channels for business-to-business products. Producer to wholesaler to retailer to consumer is a typical channel structure for consumer products. Because business-to-business products _____ in the production of their products. Retailers _____ seldom _____ in this channel of distribution. Agents, however, often _____ in channels for business-to-business products when those products _____ and when selling functions and information gathering are important. Because the consumer is the ultimate concern in designing a marketing channel, different channels may _____ to reach diverse markets or unique market segments.

XI. Define the type of a marketing channel whether it is a direct or indirect channel of distribution. Put the verbs in your sentences in the passive.

a)to sell goods through company owned outlets;

b)to employ several layers of independent wholesalers;

c)to control its entire marketing program;

d)to relinquish some channel control and customer;

e)to have close customer contact;

f)to sell through different kinds of retailers (such as discount, department, specialty stores);

g)to enlarge markets;

h)to have limited target markets;

i)to increase sales volume;

j)to give up many distribution functions and costs

Communication Practice

XII. With your partners act out a role play.

Student A and Student B

You have just started own partnership to produce various kinds of fruit smoothies.

The idea for fruit smoothies came from your relatives and friends realizing they had a bad diet and no time for healthy eating in their busy lives. You have no experience in the drinks industry. You create the drinks themselves, mixing different fruits together. The biggest argument for the drinks is their freshness and they contain no preservatives. The biggest argument against this product is its high cost and short shelf live. For several months you have been delivering drinks yourselves and now you want to hire a suitable “int ermediary”.

Other students

All students are "Intermediaries" who speak about duties and try to persuade the "managers" to sign a contract. The “managers” should provide d etails about the product.

XIII. Now let's compare the advantages and disadvantages of channels of distribution.

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decisions. A firm with quick, reliable delivery and an ample supply of replacement parts that will ship small orders and provide emergency shipments may be able to charge higher prices than a company that provides less service.

A distribution strategy has a major link with production and financial functions. High transportation costs encourage firms to locate plants closer to markets. Low average inventories in stock enable companies to reduce finance charges. Warehouse receipts may be used as collateral for loans.

There are many decisions to be made and coordinated when developing a physical distribution strategy: the transportation form(s) to be used, inventory levels and warehouse form(s), and the number and locations of plants, warehouses, and shopping facilities. A strategy can be fairly simple. A firm can have one plant, focus attention on one geographic market, and ship directly to customers without the use of decentralized warehouses. At the other extreme, a strategy can include multiple plants, assembly locations in each geographic market, and thousands of customer locations and can entail several transportation forms.

1)Why is it essential for a middleman to carry out distribution at the proper time?

2)How can goods be delivered to the end user?

3)What basic forms of transportation do you know?

4)How can a company reduce finance charges?

5)How do companies choose forms of transportation to deliver a product to the end user?

Vocabulary development

XVI. Look through the article and find corresponding English equivalents.

1)расходы на перевозку груза(paragraph 1);

2)взаимозаменяемые детали, запчасти, поставка которых нередко входит в программу обслуживания после продажи (paragraph 1);

3)скоропортящиеся грузы; товары(paragraph 2);

4)заблаговременно, заранее(paragraph 3);

5)достаточный, значительный (paragraph 3);

6)быть озадаченным, находиться в затруднительном положении (paragraph 3);

7)складская расписка, документ, удостоверяющий право собственности на товары, хранящиеся на складе; может использоваться для передачи права собственности на данные товары без их физической поставки новому владельцу (paragraph 4);

8)в наличии (о товарах и т. п.); под рукой(paragraph 4);

9)обеспечение кредита(paragraph 4);

10)влечь за собой, вызывать (что-л.) (paragraph 5).

XVII. Match the nouns with the verbs with which they are commonly used. The answers can be found in the article.

XVIII. Use the expressions from exercise I. to replace the words in italics in the following sentences. You will need to change the form of the words.

1) Product differentiation is a serious problem for a firm’s distribution facilities.

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