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4. Translate the following words paying attention to the suffixes:

determine – determining – determination; develop – developing – development; segment – segmentation; manage – manager – management; educate – educational – education; compete – competitive – competition; innovate – innovating – innovation; advertise – advertising.

READING

5. Read and translate the following text. Pay attention to the word combinations given above it. Market segmentation

Research is the basic tool of marketing. A marketer must determine what customer needs are. Marketing experts have developed techniques for determining the needs of prospective customers. It’s done by way of market segmentation.

How can market segmentation be of help to a manager wants to develop a new product? Every market can be divided into segments or, in other words, into separate group of consumers. First they are demographic factors are age, income, educational background, occupation, size of family, type of home and neighborhood, etc. Then there are psychographic factors – the customer’s opinions and interests, hobbies, vacations spots, favorite sports etc.

Then a product is compared with the goods already established in the market by quality and quantity standards. To be a success you must be ahead of your competitors.

Competition never stops. That is why market segmentation must never stop as well. It should be on a permanent basis. Introduction of a pioneer product can immediately change the composition and number of a consumer grouping.

In Russia competition is an important incentive. It means new opportunities for export, more goods to sell and a highly-developed industrial complex to create.

The fundamental principles for a marketer are:

  1. understanding of customers’ needs and grouping (to which the customer or his business belongs)

  2. creating multiple choice (concept of product value and pricing)

Consumer marketing should be based on understanding of consumer values, wants and needs.

6. Make up a plan of the text.

7. Agree or disagree using the following expressions:

for agreement for disagreement

Yes, that’s true I see your point, but…

I’m of the same opinion I disagree with you

  1. A market mustn’t determine the customers’ needs.

  2. Every market can be divided into separate groups of consumers.

  3. A product is compared with the goods by size and price standards.

  4. Competition never stops.

  5. Consumer marketing should be based only on consumer values.

GET TALKING

8. Work in pairs. Discuss the following questions:

  1. How are customer needs determined?

  2. What is understood by market segmentation?

  3. Why should market segmentation be made on a permanent basis?

  4. Why is it very important to encourage competition?

  5. What principles should a marketer take into account?

9. Discuss in pairs. Imagine some product you want to market. Make your own presentation to a partner.