МАРКЕТИНГ ( ДЛЯ СТУДЕНТОВ) Copy
.pdf2)Transportation of variety of product items in sufficient quantities makes the shipment and storage costs expensive.
3)It’s necessary that perishable products aren’t being carried from one place to another for a long time.
4)Middlemen may get consumer comments for not having sufficient quantities of the items they advertise.
5)Shipping costs are closely connected with a pricing policy of a company.
6)A company that is able to transport goods quickly may charge prices.
7)A physical distribution strategy is simple, when a company, having only one plant, concentrates on one geographic market and ships directly to customers.
XIX. Find words in the article which have the opposite meaning to those listed below.
1) single item (par. 1) |
5) minor (par. 4) |
2) centralized (par. 2) |
6) increase (par. 4) |
3) final (par.3) |
7) complex (par. 5) |
4) slow (par.3) |
8) single (par.5) |
XX. Use the following words to complete the passage below:
inventory, location, to encompass, semi-finished, materials, typical, delivering, an order, designated, customer.
Physical Distribution 1_____ the broad range of activities concerned with efficiently 2 _____
raw materials, parts, 3_____ items, and finished products to 4 _____ places, at designated times, and in proper condition. It may be undertaken by any member of a channel, from producer to consumer. Physical distribution may involve such functions as 5 _____ service, shipping, warehousing, 6 _____ control, private trucking fleet operations, packaging, receiving, 7_____
handling, and plant, warehouse, and store 8_____ planning. The physical distribution activities involved in a 9_____ order cycle – the period of time that spans a customer’s placin g 10 _____
and its receipt – are illustrated in Figure 7.1
XXI. What expressions with the word ‘transportation’ do you know? Match similar word
collacations. |
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1) motor transportation |
a. terms of transportation |
2) transportation through the |
b. port of unloading |
territory of customer |
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3) overseas transportation |
c. port of departure |
4) rules of international |
d. overland transportation |
transportation |
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5) port of destination |
e. transit |
6) port of shipment |
f. transportation by water. |
Make your sentences with these expressions to contrast the differences in their meanings.
Grammar |
Degrees of Comparison of Adjectives |
XXIII. Read the article about five basic transportation forms. Put the adjectives in brackets in the corresponding degrees of comparison.
1)Railroads usually carry heavy, bulky items that are low in value over long distances. Railroads ship items too heavy for trucks. Trucks are (fast), (flexible) and packed more easily.
2)Motor carriers predominantly transport small shipments over short distances. Motor carries are (flexible) than rail, because they can pick up packages at a factory or warehouse and deliver them to the customer’s door. They are often used to supplement rail, air and other forms that
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cannot deliver directly to customers. 3) Waterways are used primarily for transporting (lowvalue), high-bulk freight such as coal, iron, gravel, grain and cement. Although this transportation is (slow), and may be closed by ice during the winter, the rates are (low).
4)Within pipelines, there is continuous movement and there are no interruptions, inventories and intermediate storage sites. Thus, handling and labour costs are (low). Even though pipelines are (reliable), only certain commodities can be moved through them. In the past, emphasis was on gas and petroleum-based products. But now, pipelines can accept coal and wood chips in a semiliquid state. Never-the-less, the lack of flexibility limits the potential of pipelines.
5)Airways are (fast), (expensive) transportation form. This, (high-value), perishable and (emergency) goods dominate air shipments. Even though air transit is (costly), it may lower other costs such as the need for regional warehouses. The costs of packing, unpacking and preparing goods for shipping are (low) than for other transportation forms. 6) Modern communications and sorting equipment have been added to airfreight operations. Firms specializing in air shipments have done well by emphasizing (fast), (guaranteed) service at (acceptable) prices.
Communication Practice
XXIV. Let’s revise the key terms of this unit. Define them and explain their economic significance
1)The term ‘place’ means …
2)The term ‘physical distribution’ emphasizes …
3)The term ‘channels of distribution’ suggests that …
4)The term ‘order cycle’ focuses on …
5)The term ‘physical distribution strategy’ highlights …
XXVI. Transportation is rated on speed, availability, dependability, capability, frequency, losses and cost. With your partner compare five basic transportation forms using the relative operating characteristics.
−First of all, I want to say that ...
−I think it’s important to consider the question of ...
−I’m convinced that ...
−That’s an interesting point of view but ...
XXV. Describe physical distribution activities involved in a typical order cycle.
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Insufficient |
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goods in |
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places an |
receives and |
on hand |
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scheduled |
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order |
enters order |
checked |
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goods in |
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shipped to |
stored until |
ged, sorted, |
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individual |
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tagged, and |
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customers |
orders are |
sent to local |
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placed |
warehouse |
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Figure 7.1. Selected Physical Distribution Activities Involved in a Typical Order Cycle
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Writing |
Letter Plan |
You work in logistics. Reply to these complaints you have received from customers. Use a Letter Plan given below.
−put a heading
−refer to their letter
−apologize for their inconveniences
−say how you are going to cope with the complain
−if you give bad news, give the reason
−say what you are going to do instead
−if you give good news say what you are going to do
−sound optimistic and close the letter
Summary of useful phrases and main points
Referring |
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With reference to… |
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With regard to… |
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− I am writing in connection with… |
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− Thank you for your letter of (date), concerning/asking |
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Apologizing |
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We are extremely sorry to hear that you’ve had some |
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problems with … |
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− We apologize for … |
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We regret that… |
Saying what you can and cannot do |
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We are (un)able to … |
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− We do all we can to make sure that … |
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Unfortunately sometimes …. |
Giving reasons |
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This is owing to…/ due to… / as a result of …/because of … |
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Requesting actions |
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If you can arrange for it to be returned to us …. |
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− We would be grateful if you could… |
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Please could you… |
If it is urgent, add |
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as soon as possible |
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without delay |
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immediately |
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Ending a letter |
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Please feel free to contact me if you have any further |
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questions |
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− Please contact me if you need any further information. |
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− Look forward to hearing from you. |
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Letter A Hi
I ordered an amber ring from you to my mother for her birthday. It arrived yesterday and I have noticed that these is a dead insect inside the amber. Personally I find this quite interesting, but I’m afraid my mother will not appreciate it. Could I send the ring back and get a replacement in time for her birthday? It’s in two weeks.
Carren
Letter B
Hi,
The Bohemian glassware you set is lovely. But one of the glasses is broken. They were inadequately wrapped. There just isn’t enough packing for a long –distance order.
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Daren
Letter C
Hi,
I have just received the hat I order. Unfortunately it’s too big. It goes over my ears and I can’t see anything! I think there’s a problem with the way you describe your sizes.
Normally I take size 56, but this huge. Can I send it back for a smaller size? Mary
Vocabulary Review |
Test yourself |
XXII. Translate the following word combinations from Russian into English.
1)оговаривать порт назначения;
2)хранение товаров широкого потребления;
3)перечислять по пунктам условия доставки;
4)проводить учет товаров на складе;
5)товар будет доставлен в грузовых контейнерах;
6)отказаться от транспортировки скоропортящихся товаров;
7)доставить груз в надлежащем состоянии;
8)перевозить крупногабаритный груз;
9)тяжело отразиться на транспортных возможностях компании;
10)использовать заем для покрытия транспортных расходов.
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Unit 7
Price
When you finish this chapter, you should:
Before you read the text, discuss with a partner the following proverbs.
a)Money makes the world go round.
b)Time is money.
c)A fool and his money are soon parted.
Reading --- PART 1
I. You will read a passage about price as the part of marketing mix. Read the passage and answer the questions that follow (1—6).
PRICE PLANNING
A price represents the value of goods or services for both the seller and the buyer. Price planning is systematic decision making by an organization regarding all aspects of pricing.
The value of a good or service can involve both tangible and intangible marketing factors. An example of a tangible marketing factor is the cost savings obtained by the purchase of a new bottling machine by a soda manufacturer. An example of an intangible marketing factor is a consumer’s pride in the ownership of a Porsche rather than another brand of car. For an exchange to take place, both the buyer and seller must feel that the price of a good or service provides an equitable value. To the buyer, the payment of a price reduces the purchasing power available for other items. To the seller, the receipt of a price is a source of revenue and an important determinant of sales and profit levels.
Many words are substitutes for the term price, including admission fee, bill, membership fee, rate, tuition, service charge, donation, rent, salary, interest, retainer, assessment and investment. No matter what it is called, a price contains all terms of purchase: monetary and non-monetary charges, discounts, handling, and shipping fees, credit charges and other forms of interest, and late-payment penalties.
A non-price exchange would be selling a new iron for ten books of trading stamps or an airline offering tickets as payment for advertising space and time. Monetary and non-monetary exchanges may be combined. This is common with autos, where the consumer gives the seller money plus a trade-in. This combination allows a reduction in the monetary price.
From a broader perspective, price is the mechanism for allocating goods and services among potential purchasers and for ensuring competition among sellers in an open market economy. If there is an excess of demand over supply, prices are usually bid up by consumers. If there is an excess of supply over demand, prices are usually reduced by sellers. See Figure 8.1.
II. Answer the questions.
1)What is price?
2)When does exchange occur?
3)How does a buyer assess price?
4)How does a seller assess price?
5)In what terms can price be?
6)How does a price balance supply and demand?
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Price |
Demand |
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Supply |
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Surplus of Supply |
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Shortage |
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Q 2 |
Q E |
Q 1 |
Q 3 Quantity |
Figure 8.1. The Role of Price in Balancing Supply and Demand
At equilibrium (PeQe), the quantity demanded equals the supply.
At priceP1, consumers demand Q1 of an item. However, at this price, supplies will make available onlyQ2. There is a shortage of supply of Q1-Q2.
The price is bid up as consumers seek to buy greater quantities than offered at P1. At priceP2 suppliers will make availableQ3 of an item. However, at this price, consumers demand only Q2. There is a surplus of supply of Q3. The price is reduced by sellers in order to attract greater demand by consumers.
III. Now read the article in more details and put a cross (x) against the statements that do not appear in the article.
1)Price is the value of what is exchanged.
2)The buyer exchanges purchasing power for satisfaction or utility.
3)Purchasing power is determined by the buyer’s income, credit and wealth.
4)Price is not always money; barter, the trading of products, is the oldest form of exchange.
5)Price is expressed in different terms for different exchanges.
6)A product offered can compete on a price or non-price basis.
7)Price is the most flexible variable in the marketing mix.
Vocabulary development
IV. Find words or phases in the articles which mean the same as the following.
1)giving and receiving one thing in place of another(paragraph 2);
2)fair, reasonable(paragraph 2);
3)acting or serving for another(paragraph 3);
4)punishment for doing wrong, for failure to obey rules or to keep an agreement(paragraph 3);
5)to give a used article in part payment for a new purchase(paragraph 4);
6)to give, put on one side as a share or for a purpose(paragraph 5);
7)to offer a price(paragraph 5).
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V. Look through the text again and complete the table. Work with your partner and make up sentences with these words.
Noun |
Verb |
Adjective |
Participle |
bill
systematic
bottling
ownership
equitable
expense
to contain
trading
to reduce
investment
to compete
monetary
to bid up
assessment
advertising
cost
VI. Read a paragraph from the article ‘The great power train race’ and fill in the gaps using words from ex. #VIII.
So all this new technology is giving the strongest of the rich world’s carmakers a breathingspace from new 1… . But it will not come cheap, and they will need to pass the 2… on their customers. A study by Cambridge Econometrics and Ricardo-AEA suggested that the 3 … of different power trains will converge somewhat, but even in 2030 fuel-cell, all-electric and plugin hybrid cars will be a lot more expensive to make than those with improved internalcombustion engines. However, allowing for lower fuel 4…by 2020 the total cost of 5 … for petrol, diesel, hybrid and batter cars will be lower than the total cost for cars now. Meanwhile the 6 … in fuel costs and the motor industry’s 7 … in t he technology to achieve it will create more than 350,000 new jobs in the EU by 2030, the study suggested.
(The Economist, p. 11, April 20th. 2013)
VII. Choose the right answer:
1. The … cost is actually very low. We can produce them for $ 80.29 each.
a.a bulk
b.unit
c.single
2.The R.R.P. for this one is $3.99 each, but you can sell it less if you want.
a.regulated retail price
b.regular retail price
c.recommended retail price
3.We are not making enough profit on this range. We will have to …our prices.
a.slash
b.hike
c.drop
4.Given the different situation with the strong dollar, we have decided to … prices for the next 6 months.
a. stay
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b.freeze
c.still
5. Give them the… sell. Tell them prices are going up and if they don’t decide today they will have to pay 50% more.
a.strong
b.difficult
c.hard
VIII. Match opposite collocations with the word ‘price’. Make your sentences with these expressions to contrast their meanings.
1. price celling |
a sliding price |
2. quoted price |
b floor price |
3. wholesale price |
c low price |
4. advanced price |
d nominal price |
5. last price |
e reduced price |
6. heavy price |
f starting price |
7. constant price |
g piece price |
IX. Translate the following word combinations from Russian into English.
Проценты, тариф, комиссионные, арендная плата, оклад, обложение налогом, гонорар, членский взнос, плата за обучение, пожертвование, вступительный взнос, скидки, счёт издержки.
Grammar |
Zero and First Conditionals |
Zero conditional sentences refer to ‘all time’, not just the present or future. They express a situation that is always true. If means when or whenever.
E.g. If there is an excess of demand over supply, prices are usually bid up by customers.
First conditional sentences express real possibilities. Notice that we do not usually use will in the if-clauses. First conditional sentences refer to the present and future.
E.g. If the price ceiling is exceeded, consumers will not make purchases.
X. Read the article “Price strategy”, pay attention to the types of price strategies and their characteristics. Use the verbs in brackets in the conditionals.
PRICE STRATEGY
A price strategy may be cost-, demand-, and/or competition-based. See Figure 8.2. With a cost-based price strategy, a firm sets prices by computing merchandise, service, and overhead costs and then adding a desired profit to those figures. Demand is not analyzed. For example, if an item (1to cost) $10 to make and sell, a firm may (2 to seek) a $1 profit per unit. The selling price is $11. Cost-based pricing is often used by companies whose goals are stated in terms of profit or return on investment. A price floor is the lowest acceptable price a firm can charge and attain its profit goal.
In a demand-based price strategy, a firm sets prices after researching consumer desires and ascertaining the range of prices acceptable to the target market. For example, if a company finds that its customers will pay $10 for an item and it needs a $3 margin to cover profit and selling expenses, the cost of goods sold must not exceed $7.
Demand-based pricing is used by firms that believe price is a key factor in consumer decisionmaking. These companies identify a price ceiling, which is the maximum amount consumers will pay for a given good or service. If the ceiling (3 to be exceeded), consumers (4 not make)
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purchases. Its level depends on the elasticity of demand (availability of substitutes and urgency of need).
Under a competition-based price strategy, the firm sets prices in relation to competitors. These prices may be below the market, at the market, or above the market, depending on customer loyalty, the services provided, image, real or perceived differences among brands or outlets, and the competitive environment. Competition-based pricing is applied by firms that encounter competitors selling similar items.
Elements of all three approaches should be combined when enacting a price strategy. They do not operate independently of one another. These questions demonstrate the interrelation of cost-, demand-, and competition-based methods of deriving prices. Will a given price level allow a firm to attain the desired profit (cost-based)? If prices (5 to be increased) by 10 per cent, how much unit sales (6 decrease) (demand-based)? What competitors (7 be likely) to do if a company (8 to give) quantity discounts (competition-based)?
A Cost-Based Strategy
Begin with costs and work towards selling price
A Demand-Based Strategy
Begin with selling price and work towards costs
A Competition-Based |
Above the |
Price Strategy |
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Bellow the
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A Combined Price Strategy |
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Price |
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Figure 8.2. The Alternative Ways of Developing a Price Strategy
XI. Using zero conditional, match a line in A with a line in B and you will read some of the basic ways in which pricing is related to other marketing variables.
A
1.Prices frequently vary.
2.Prices are usually low.
3.A manufacturer tries to control final prices.
4.Product lines have different features and different prices.
5.The efforts of marketing and finance personnel are coordinated.
6.Costs change.
B
a.Finance people start with costs and add desired profits to come up with selling prices.
b.There is a conflict in a distribution channel.
c.A product is associated with little customer service.
d.They attract different market segments.
e.Decisions are made as to whether to pass these changes on to consumers, to absorb them, or to modify product features.
f.Products attract both status-conscious innovators and the mass market.
XII. Using first conditional, complete the sentences and get some indications of a poorly performed pricing strategy.
1)Prices are changed too frequently…
2)Pricing policy isn’t easy to explain to consumers…
3)Channel members complain that profit margins are inadequate…
4)Price decisions are made with inadequate marketing – research information…
5)Too many different price options are available…
6)Too much sales personnel time is spent in bargaining…
7)Prices are consistent with the target market…
8)A high proportion of goods is marked down or discounted late in the selling season to clear out surplus inventory…
9)A small proportion of customers is price–sensitive and is attracted by discounts…
10)The firm has problems conforming with pricing legislation
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