IX. Translate the sentences and indicate (укажите) the points (1, 2, 3, 4, 5) to which the following statements refer:

1. A firm's market share is its proportion of total industry sales.

2. Firms that wish to set profit goals should express them as either specific money amounts or percentage increases over previous profits.

3. A firm may have to price its products to survive. This usually means that the firm will cut its price to attract customers.

4. Some firms set an annual-percentage return on investment (ROI) as their pricing goal.

5. In pricing their products, some firms are guided by a desire to maintain the status quo (pricing).

Part II unit 1 categories of product

Products can be grouped into two general categories — consumer and industrial. A product purchased to satisfy personal and family needs is a consumer product. A product bought for use in a firm's operations or to make other products is an industrial product. The buyer’s intent — or the ultimate use of the product — determines the classification of an item. Note that a single item can be both a consumer and an industrial product. A broom is a consumer product if you it in your use home. However, the same broom is an industrial product if you use it in the maintenance of your business. After a product is classified as a consumer or industrial product, it can be further categorized as a particular type of consumer or industrial product.

1. Consumer product classifications

The traditional and most widely accepted system of classifying consumer products consists of three categories: convenience, shopping, and specialty products.

A convenience product is a relatively inexpensive, frequently purchased item for which buyers want to exert only minimal effort. Examples include bread, gasoline, newspapers, soft drinks, and chewing gum. The buyer spends little time in planning the purchase of a convenience item or in comparing available brands or sellers.

A shopping product is an item for which buyers are willing to expend considerable effort on planning and making the purchase. Buyers allocate much time for comparing stores and brands with respect to prices, product features, qualities, services, and warranties. Appliances, upholstered furniture, men's suits, bicycles, and stereos are examples of shopping products. These products last for a fairly long time and thus are purchased less frequently than convenience items.

A specialty product possesses one or more unique characteristics for which a significant group of buyers is willing to expend considerable effort. Buyers plan the purchase of a specialty product; they know exactly what they want and will not accept a substitute. Examples include unique sports cars, a specific type of antique dining table, a rare imported beer, or perhaps special handcrafted stereo speakers.

2. Industrial product classifications

Based on their characteristics and intended uses, industrial products can be classified into the following categories: raw materials, major equipment, accessory equipment, component parts, process materials, supplies, and services.

A raw material is a basic material that actually becomes a part of a physical product. It usually comes from mines, forests, oceans, or recycled soild wastes. Raw materials are usually bought and sold according to grades and specifications.

Major equipment includes large tools and machines used for production purposes. Examples of major equipment are lathes, cranes, and stamping machines. Some major equipment is custom-made for a particular organization, but other items are standardized products that perform one or several tasks for many types of organizations.

Accessory equipment is standardized equipment that generally can be used in several ways within a firm's production or office activities. Examples include hand tools, typewriters, fractional-horsepower motors, and calculators. Compared with major equipment, accessory items are usually much less expensive and are purchased routinely.

A component part becomes part of a physical product and is either a finished item ready for assembly or a product that needs little processing before assembly. Although it becomes part of a larger product, a component part can often be identified easily. Clocks, tires, and switches are examples of component parts.

A process material is used directly in the .production of another product; unlike a component part, however, a process material is not readily identifiable. Like component parts, process materials are purchased according to industry standards or to the specifications of the individual purchaser. Examples include industrial glue and food preservatives.

A supply facilitates production and operations, but it does not become part of the finished product. Paper, pencils, oils, and cleaning agents are examples.

An industrial service is an intangible product that an organization uses in its operations. Examples include financial, legal, marketing research, and janitorial services. Purchasers must decide whether to provide their own services internally or to hire them from outside the organization.