10. Work in pairs. Speak on the differences between the following channels of distribution.

		D irect Method Of Distribution

P roducer

Consumer

Indirect Method of Distribution

Manufacturer

Wholesaler

Retailer

Consumer

TEXT B

11. Read the following text and entitle it:

The marketing strategies of determining product, price, place and promotion are not planned in isolation. Marketing analysts often look at a combination of these four factors. This combination of the four Ps is known as the marketing mix. The elements of the marketing mix focus on the consumer. In order to develop a successful marketing mix researchers first ask two important questions: Who is going to buy the product? What is the potential to sell this product?

The group of customers who will probably buy the product is known as the target market. The company directs its marketing efforts to this group of potential customers who form the target market. When market researchers have determined the target market they wish to appeal to, the company can develop an appropriate mix of product, price, place and promotion.

For example, if the target market is “middle-class teenagers” the marketing mix may consist of the following:

Product: blue jeans Price: with the market

Place: department store Promotion: advertisements on a “pop

music” radio station

A successful marketing mix depends on the knowledge about consumers and their buying habits got through market research.

GET TALKING

12. Work in pairs. Discuss the following:

1. The marketing mix; the target market; the market research.

2. Why it is necessary to look at 4Ps not in isolation.

3. What market mix you will use for the following goods. Determine its life cycle at the certain market.

13. Read and act out the dialogue:

A: Hey, look at these figures. The price of sugar is going up 10% during the next year.

B: That’s bad. That means trouble for our jam line, because the price of jam will go up too. What’s your opinion?

A: We are not the price leaders in the field, but we can find the possibility of changing the ingredients in the jam so that we would not have to raise the price.

B: You are right. What a promotional campaign we can have! We may become the leaders in the market.

A: We must talk to Research and Development Department first of all. They must think about cheap ingredients. We also should change packaging. It will be great!

B: Let’s hope for the best! If we don’t lose the chance, the competitors’ products will stay on the supermarket shelves.