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durable product
довговічний товар;
electronics product
товар електроніки;
end product
кінцевий товар;
essential product
основний продукт;
fairy priced product
товар за сприятливою ціною;
fast-moving product
ходовий товар;
fine-quality product
товар відмінної якості;
finished product
кінцевий товар;
high-interest product
товар підвищеного попиту;
scarce product
дефіцитний товар;
status product
престижний товар;
tainted product
недоброякісний товар;
shopping product
товари попереднього попиту;
specialty product
товари особистого попиту;
unsought product
товари пасивного попиту;
impulse product
товари імпульсивної купівлі;
emergency product
товари екстрених випадків.
VII. Using the words and word combinations from the text and exercise VI answer the following questions in English:
На які групи товарів можна розподілити товари повсякденного попиту?
До яких товарів ми відносимо зубну пасту, печиво «Крекер», кетчуп?
Яку назву мають товари, що їх не треба спеціально шукати (жувальна гумка, шоколадні батончики, бульйонні кубики), і де їх продають у крамницях?
Якщо надворі дощить або сніжить, які товари шукатиме покупець, і до якої групи ці товари належить?
Якщо Ви хочете купити уживаний автомобіль, що Вам для цього потрібно?
Які ще товари належать до цієї групи товарів? Яку назву має ця група товарів?
Які товари належать до групи товарів особистого попиту? Чому?
Які класичні товари належать до групи пасивного попиту?
Чи можете Ви навести приклади товарів, які перебувають у стадії занепаду на українському ринку?
Які товари за сприятливою ціною Ви придбали за останній час?
Чи випадало Вам купувати неякісний товар? Наведіть приклад.
Чи існують на українському ринку сьогодні дефіцитні товари? Якщо так, назвіть їх.
До якої класифікаційної групи товарів широкого вжитку треба віднести кольоровий телевізор «Соні»?
У торговельних точках якої кількості мають продаватися товари широкого вжитку кожної з чотирьох класифікаційних груп: товари повсякденного попиту, товари попереднього попиту, товари особистого попиту та товари пасивного попиту? Поясніть, чому.
VIII. Translate into Ukrainian paying attention to the words in bold type:
Quite often when we talk about products, we refer to what a company produces.
The closer an actual product is to Jones ideal product the greater is its utility to Jones.
Product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
The actual product is the tangible good itself, including such aspects as features.
Consumer products are those bought by final consumers for personal consumption.
Convenience products can be divided further into staples, impulse products, and emergency products.
Core product is the problem-solving services or core benefits that consumers are really buying when they obtain a product.
The distinction between a consumer product and an industrial product is based on the purpose for which the product is bought.
The product planner must build an augmented product around the core and actual products by offering additional consumer services and benefits.
Branding has become a major issue in product strategy.
Traditionally, packaging decisions were based primarily on cost and production factors; the primary function of the package was to contain and protect the product.
Products often can be designed to reduce the amount of required servicing.
Product quality means the ability of a product to perform its functions. It includes the product’s overall durability, reliability, precision, ease of operation and repair, and other valued attributes.
Marketers need to manage their brands carefully in order to preserve brand equity.
The process of designing a product’s style and function:
creating a product that is attractive, easy, safe, and inexpensive
to use and service; and simple and economical to produce and distribute.
The product line manager typically selects one or a few items in the line to feature.
Being the first producer to introduce a needed and valued new feature is one of the most effective ways to compete.
Design is a larger concept than style. Style simply describes the appearance of a product.
A good designer considers appearance but also creates products that are easy, safe, inexpensive to use and service, and simple to and economical to produce and distribute.
Good design can attract attention, improve product performance, cut production costs, and give the product a strong competitive advantage in the target market.
Japanese firms have long practiced «Total Quality Management», an effort to constantly improve product and process quality in every phase of their operation.
Capital items are industrial products that aid in the buyer’s production or operation.
Packaging issues can be subtle. For example, names, labels, and colours may not be translated easily from one country to another. A firm using yellow flowers in its logo might fare well in the United States, but meet with disaster in Mexico, where a yellow flower symbolizes death or disrespect.
ІX. Read and discuss the following text and give answers to the questions below:
PRODUCT MIX DECISIONS
A product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marked through the same types of outlets, or fall within given price ranges.
An organization with several product lines has a product mix.
A product mix (or product assortment) is the set of all product lines and items that a particular seller offers for sale. Avon’s product mix consists of four major product lines: cosmetics, jewelry, fashions, and household items.
Each product line consists of several sublines. For example, cosmetics breaks down into lipstick, rouge, powder, and so on. Each line and subline has many individual items. Altogether, Avon’s product mix includes 1,300 items.
A company’s product mix has four important dimensions: width, length, depth, and consistency.
The width of P&G’s product mix refers to the number of different product lines the company carries.
The length of P&G’ product mix refers to the total number of items the company carries.
The depth of P&G’ product mix refers to the number of versions offered of each product in the line.
The consistency of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or in some other ways. P&G’s product lines are consistent insofar as they are consumer products that go through the same distribution channels. The lines are less consistent insofar as they perform different functions for buyers.
These product mix dimensions provide the handles for defining the company’s product strategy. The company can increase its business in four ways. It can add new product lines, thus widening its product mix. In this way, its new lines build on the company’s reputation in its other lines. The company can lengthen its existing product lines to become a more full-line company. Or it can add more product versions of each product and thus deepen its product mix. Finally, the company can pursue more product line consistency — or less — depending on whether it wants to have a strong reputation in a single field or in several fields.
What is a product line?
What is a product mix?
What does each product line consist of?
What four important dimensions does a company’s product mix have?
In what four ways can the company increase its business?
X. Match the words with their definitions:
Product life cycle — а) — is the stage, the new product innovation begins to be widely recognized as an acceptable product for solving consumer problems and fulfilling their needs and wants.
Introduction stage — b) — is the stage, sales drop because another product innovation has been introduced that represents a better way of accomplishing a task or solving a problem, or because the need for the product disappears.
Growth stage — c) — is the stage a product moves through from its disappearance from the market. The stages are introduction, growth, maturity and decline.
Maturity stage — d) — is the stage, there is only one product of this type — a true innovation.
Decline stage — e) — is the stage when the market stabilizes or becomes saturated, because almost all potential buyers already have the product: thus, the repeat purchase or replacement market becomes more important.
XI. Make up sentences with the Complex Subject with the Infinitive following the models:
Model 1
Materials and parts are known to be industrial products that become a part of the buyer’s product.
Model 2
Design is certain to be a larger concept that style.
Model 3
Features seem to be a competitive tool for differentiating the company’s product from competitor’s product.
XII. Select connectors from the list below to complete the sentences:
however, moreover, despite, thus, in addition to, although
_____ investing nearly $ 20 m in the project, they soon ran out of funds.
_____ profits are high at the moment, we must expect a downturn next year.
They acquired two US companies in 2000 _____ they bought several smaller European enterprises in the same year.
The company developed a very good me to product. _____, they found it impossible to break into the market.
They developed an IBM alone and _____ broke into the lucrative PC market.
There have been many successful revivals. _____ these products have also saved their companies a considerable amount in product development cost.
XIII. Translate into English:
Коли губна помада перетворюється на щось більше, ніж просто фарба для губ, тоді у Вашому будинку з’являється жінка-комівояжер фірми «Ейвон» і продає Вам цю помаду. Фірма «Ейвон» — найбільший у світі продавець косметики — знає, що, купуючи помаду, споживач придбає щось більше, ніж фарбу для губ. Поза всяким сумнівом, запорукою успіху фірми «Ейвон» є високоякісний товар. Однак чому купують косметику саме «Ейвон», а не іншої фірми?
Одна з причин криється в професіоналізмі жінок-комівояжерів фірми «Ейвон». «Дами Ейвон», як їх називають, несуть із собою безліч вигод для покупниць. Візит жінки-комівояжера до Вас додому — це і зручність, і внесення різноманітності в домашні будні, і бесіда, і виявлення уваги до думки господарки, і корисні поради щодо того, як виглядати гарніше, і навіть дружні стосунки.
Товари фірми «Ейвон» нібито містять усі ці складові. І такого пропонування більше нема ні в кого з основних виробників косметики.
Фірма підтримує бажання добре працювати у своїх жінок-продавців, навчаючи їх мистецтва торгівлі, проводячи семінари-наради з демонстрацією нових товарів і застосовуючи систему заохочень (нагороди, конкурси тощо).
Товарна номенклатура фірми «Ейвон» надзвичайно різноманітна і складається з 1300 найменувань товарів, серед яких косметика, ювелірні вироби і господарські товари.
Фірма «Ейвон» забезпечує своїх жінок-продавців чудово виданим кольоровим каталогом, продивляючись який, клієнтка може уважно ознайомитися з інформацією про кілька сотень товарів. Крім того, з метою стимулювання збуту і скорочення товарних запасів фірма протягом усього року проводить розпродаж тих чи тих товарів за зниженими цінами.
Цілком очевидно, що губна помада перетворюється на щось більше, якщо її продають у такий спосіб, як робить це фірма «Ейвон».
Успіх фірми «Ейвон» ґрунтується на новаторському і творчому підході до розроблення нового товару. А ефективний задум товару — перший крок у процесі планування комплексу маркетингу.
XIV. Assignment.
Go to the area of your town that has a number of fast food outlets. Compare the product mix of McDonald’s to Bistro. Are there differences in width or depth? How could they stretch their lines upward or downward?





Unit 5
PRICING


TEXT A
PRICE
Price is the amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service.
Price is all around us. You pay rent for your apartment, tuition for your education, and a fee to your physician or dentist. The airline, railway, taxi, and bus companies charge you a fare; the local utilities call their price a rate; and the local bank charges you interest for the money you borrow. The price for driving your car on Florida’s Sunshine Parkway is a toll, and the company that insures your car charges you a premium. The guest lecturer charges an honorarium to tell you about a government official who took a bribe to help a shady character steal dues collected by a trade association. Clubs or societies to which you belong may make a special assessment to pay unusual expenses. Your regular lawyer may ask for a retainer to cover her services. The «price» of an executive is a salary, the price of a salesperson may be a commission, and the price of a worker is a wage. Finally, although economists would disagree, many of us feel that income taxes are the price we pay for the privilege of making money.
How are prices set? Historically, prices usually were set by buyers and sellers bargaining with each other. Sellers would ask for a higher price than they expected to get, and buyers would offer less than they expected to pay. Through bargaining, they would arrive at an acceptable price. Individual buyers paid different prices for the same products, depending on their needs and bargaining skills.
Historically, price has been the major factor affecting buyer choice. This is still true in poorer nations, among poorer groups, and with commodity products. However, nonprice factors have become more important in buyer-choice behavior in recent decades.
Price is the only element in the marketing mix that produces revenue; all other elements represent costs. Price is also one of the most flexible elements of the marketing mix. Unlike product features and channel commitments, price can be changed quickly. At the same time, pricing and price competition is the number-one problem facing many marketing executives. Yet, many companies do not handle pricing well. The most common mistakes are: pricing that is too cost oriented; prices that are not revised often enough to reflect market changes; pricing that does not take the rest of the marketing mix into account; and prices that are not varied enough for different products, market segments, and purchase occasions.
I. Key terms:
Price — ціна — the amount of money charged for a product or service.
Bargaining — торгуватися, вести переговори, домовлятися — discussion of prices, terms of trade.
Cost — ціна, вартість — price (to be) paid for a thing. Cost usually relates to services or processes.
Charge — ціна, плата за послуги — is the amount of money asked, usually for a service.
Market segment — сегмент маркетингу — a group of consumers who respond in a similar way to a given set of marketing stimuli.
II. Vocabulary notes:
bribe, n.
хабар, підкуп — thing given, offered or promised to sb. to influence or persuade him to do sth. (often dishonest) for the giver — take/accept bribes;
bribe, v.
пропонувати (давати) хабар; підкупляти — give a bribe (of sth) to sb.; try to persuade sb. to sth. with a bribe;
commission, n.
комісійна винагорода, комісійні — payment to sb. for selling goods which increases with the quantity of goods sold;
dues, n.
податки, мито — charges or fees;
fare, n.
плата за проїзд; вартість проїзду — money charged for a journey by bus, ship, taxi, etc.;
fee, n.
гонорар, винагорода, платня, плата;
чайові;
внесок — admission fee — плата за ліцензію — amount paid for professional advice or service;
honorarium, n.
(pl. honoraria) — гонорар — voluntary payment made for professional services for which a fee is not normally paid or required by law;
income taxes, n.
прибуток, дохід, надходження — tax payable according to the level of one’s income;
premium, n.
премія, винагорода — additional payment;
salary, n.
оклад — (usually monthly) payment to employees doing other than manual or mechanical work;
rent, n.
рента — regular payment made for the use of land, premises, a telephone, machinery, etc.; sum paid in this way;
toll, n.
мито — money paid for the use of a road, bridge, harbour;
tuition, n.
платня за навчання — fee paid for teaching or instruction;
wage, n.
заробітна плата — payment made or received for work or ser-
vices;
III. Answer the following questions:
What is price?
What does «price is all around us» mean?
How is price set?
How would a seller and a buyer arrive at an acceptable price?
What is the only element in the marketing mix that produces re-
venue?
Why is price one of the most flexible elements of marketing mix?
Why can price be changed quickly?
What are the most common mistakes that are not revised often enough for different products, market segments and purchase occasions?
ІV. Memorize the following terms and use them in your own sentences:
actual price
фактична (дійсна) ціна;
base price
базисна ціна;
basic price
основна ціна;
heavy price
висока ціна;
top price
найвища (максимальна) ціна;
flexible/sensitive price
гнучка (еластична) ціна;
established prices
діючі ціни;
cost price
ціна виробництва (ціна витрат виробництва);
contract price
договірна ціна;
uniform prices
єдині (однакові) ціни;
stipulated price
ціна, передбачена контрактом або домовленістю (згодою);
nominal price
номінальна ціна;
ask/offer price
призначати, називати ціну;
retail price
роздрібна ціна;
market price
ринкова ціна;
fixed price
фіксована (тверда) ціна;
sliding/sliding-scale
price
змінні ціни;
trade/whole scale price
оптова ціна;
monopoly price
монопольна ціна;
suggested price
запропонована ціна;
demand price
ціна попиту;
quoted price
призначена ціна;
relative price
відносна ціна;
initial price
початкова ціна;
advanced price
підвищена ціна;
variable price
змінна ціна;
overestimated price
завищена ціна;
guiding price
провідна ціна;
c.i.f. (cost, insurance,
freight)
сіф, вартість, страхування, фрахт;
f.o.b. (free on board)
1) Am. фоб, франко-борт; 2) Aм. франко-вагон;
f.i. (free in)
франко;
f.o.r. (free on rail)
франко-вагон, міста відправлення;
at a price
за високою ціною;
at popular prices
за доступними цінами;
at the price of
за ціною в ...;
price per unit
ціна одиниці товару;
to adjust prices
коригувати ціни;
to affect prices
впливати на ціни;
to carry a price
мати ціну;
to set a price

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