Text 11 . Product Classification. Consumer Products

Pair of Adidas trainers, a Volvo truck, a Nokia mobile telephone, a haircut, a concert, a EuroDisney vacation, advice from a solicitor and tax preparation services are all products. We define a product as anything that is offered to a market for attention, acquisition, use or consumption and that might satisfy a want or need. Products include more than just tangible goods. Broadly defined, products include physical objects, services, persons, places, organiz­ations or ideas.

Services are products that consist of activities, benefits or satisfactions that are offered for sale, such as haircuts, tax preparation and home repairs. Services are intangible and do not result in the ownership of anything.

Let us explain several product-classification schemes. Products can be classified according to their durability and tangibility. Non-durable products are goods that are normally consumed quickly and used on one or a few usage occasions, such as beer, soap and food products. Durable products are products used over an extended period of time and normally survive for many years. Examples are refrigerators, cars and furni­ture. Services are activities, benefits and satisfactions offered for sale which are essentially intangible and do not result in the ownership of anything. Examples include haircuts, holiday packages and banking services. Marketers have also divided products and services into two broad classes based on the types of customers that use them - consumer products and industrial products.

Consumer products are those bought by final consumers for personal consump­tion. Marketers usually classify these goods based on consumer shopping habits. Consumer products include convenience products, shopping products, specialty products and unsought products. These products differ in the way consumers buy them, so they differ in how they are marketed.

Convenience products are consumer goods and services that the consumer usually buys frequently, immediately and with a minimum of comparison and buying effort. They are usually low priced and widely available. Examples are soap, sweets and newspapers. Convenience goods can be divided further into staples, impulse goods and emergency goods.

Staples are goods that consumers buy on a regular basis, such as milk, tooth­paste or bread. Impulse goods are purchased with little planning or search effort. These goods are normally available in many places. Thus chocolate bars and magazines are placed next to checkout counters because shoppers may not otherwise think of buying them. Emergency products are purchased when a need is urgent - umbrellas during a rainstorm, or boots and shovels during the year's first snowstorm. Manufacturers of emergency goods will place them in many outlets to make them readily available when the customer needs them.

Shopping products are less frequently purchased and consumers spend considerable time and effort gathering information and comparing alternative brands carefully on suitability, quality, price and style. Examples of shopping products are furniture, clothing, used cars and major household appliances.

Specialty products are consumer goods with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. Examples are specific brands and types of car, high-priced photographic equipment, and luxury goods. They invest only the time needed to reach dealers carrying the wanted products. Although these dealers do not need convenient locations, they must still let buyers know where to find them.

Unsought products are consumer goods that the consumer either does not know about or knows about but does not normally think of buying. Most major innovations are unsought until the consumer becomes aware of them through advertising. Other examples of known but unsought goods are life insurance, home security systems and blood donations to the Red Cross. By their very nature, unsought goods require a lot of advertising, personal selling and other marketing efforts.

Exercise 8 5 . Answer the questions.

1.What is a product? 2. How can services be defined? 3. How can products be classified? 4. What is the difference between durable and non-durable products? 5. What two broad classes have marketers divided products and services into? 6. What are consumer products? What do consumer products include? 7. What are convenience products? What can convenience products be divided into? 8. What are definitions of the following terms: “shopping products”, “specialty products” and “unsought products”?

 

Exercise 8 6. Give Ukrainian equivalents.

Acquisition, non-durable products, ownership, shopping products, emergency goods, to purchase with little planning or search effort, for personal consump­tion, to be widely available, to compare alternative brands on price.

 

Exercise 8 7. Give English equivalents.

Матеріальні товари, товари повсякденного вжитку, товари імпульсивного придбання, зручне розміщення, страхування життя, строк використання, послуги із розрахунку податків.

Exercise 8 8. Read and learn word combinations with 'goods' and 'products'.

convenience goods / fast moving consumer goods	= products with a high turnover and relatively low price, such as table salt or shampoo
white goods	= major household electrical goods which are usually white, such as freezers, washing machines and dishwashers
brown goods	=major household electrical goods that are not usually white, such as camcorders, televisions and DVD players
perishable goods	= goods that have a limited shelf life and must be consumed relatively quickly, such as fresh fruit, fresh meat and eggs
durable / hard goods	= goods that last for a long time - they cannot be easily worn out or used up, such as cars, furniture and white goods
nondurable / soft goods	= goods that are used up or last for less than three years -for example, perishable goods, consumable supplies such as CD ROMs, or ink for a printer
green products	= products that are not harmful for the environment
generic products	= products sold without a brand name, usually in a supermarket or in a pharmacy as alternatives to brand name drugs
healthcare products	= products that are beneficial for your health and well-being - for example, vitamins and plasters

Exercise 8 9. Match the word combinations from Ex.88 with words below.

1) syringe

2) TV set

3) bread

4) washing powder that is not harmful to the environment

5) ink for printer

6) car

7) washing machine

8) toilet paper

Exercise 90. Make word combinations with goods and products using the words from the box.

brown	convenience	hard	healthcare
nondurable	perishable	white	green

Exercise 9 1 . Learn the following words and word combinations.

conduct a business	– вести справу
capital items	– засоби виробництва
supplies and services	– допоміжні матеріали та послуги
materials and parts	– матеріали та комплектуючі
further processing	– подальша обробка
manufactured materials	– напівфабрикати
timber	– деревина
crude petroleum	– сира нафта
turn over	– передавати
intermedi­ary	– посередник
natural product	– натуральний продукт
bulk	– маса; об’єм
unit value	– вартість одиниці товару
industrial user	– промисловий споживач
yarn	– волокно
component material	– складовий матеріал; компонент
component part	– комплектуючий виріб
pig iron	– чавун
installations	– споруди
accessory equipment	– комплектуюче ( допоміжне ) обладнання
fixed equipment	– вмонтоване ( стаціонарне ) обладнання
drill press	– перфоратор
lift truck	– автонавантажувач
operating supplies	– виробничі матеріали
repair and maintenance items	– засоби техобслуговування та ремонту
lubricant	– змащувальний матеріал
business services	– підприємницькі послуги
busi­ness advisory services	– служба ділових консультацій
maintenance services	– ремонтні послуги

 

Exercise 9 2 . Read, translate and give the gist of text 12.

Text 12 .  Industrial Products

Industrial products are those bought for further processing or for use in conducting a business. Thus the distinction between a consumer product and an industrial product is based on the purpose for which the product is purchased. If a consumer buys a lawn mower for home use, the lawn mower is a consumer product. If the same consumer buys the same lawn mower to use in a land­scaping business, the lawn mower is an industrial product.

There are three groups of industrial product: materials and parts, capital items and supplies and services.

Materials and parts are industrial goods that become a part of the buyer's product, through further processing or as components. They include raw ma­terials and manufactured materials and parts.

Raw materials include farm products (wheat, cotton, livestock, fruits, vegetables) and natural products (fish, timber, crude petroleum, iron ore). Farm products are supplied by many small producers, which turn them over to marketing intermedi­aries that process and sell them. Natural products usually have great bulk and low unit value, and require a lot of transportation to move them from producer to user. They are supplied by fewer and larger producers, which market them directly to industrial users.

Manufactured materials and parts include component materials (iron, yarn, cement, wires) and component parts (small motors, tires). Component materials are usually processed further - for example, pig iron is made into steel, and yarn is woven into cloth. Component parts enter the finished product with no further change in form, as when Electrolux puts small motors into its vacuum cleaners and Volvo adds tires to its automobiles. Most manufactured materials and parts are sold directly to industrial users. Price and service are the most significant marketing factors, and branding and advertising tend to be less important.

Capital items are industrial products that help in the buyers' production or operations. They include installations and accessory equipment. Installations consist of buildings (factories, offices) and fixed equipment (generators, drill presses, large computers, lifts). Because installations are substantial purchases, they are usually bought directly from the producer after a long decision period. Accessory equipment includes portable factory equipment and tools (hand tools, lift trucks) and office equipment (fax machines, desks). These products do not become part of the finished product. They have a shorter life than installations and simply aid in the production process. Most sellers of accessory equipment use intermediaries because the market is spread out geographically, the buyers are numerous and the orders are small.

Supplies and services are industrial products that do not enter the finished product at all. Supplies include operating supplies (lubricants, coal, computer paper, pencils) and repair and maintenance items (paint, nails, brooms). Supplies are the convenience goods of the industrial field because they are usually purchased with a minimum of effort or comparison. Business services include maintenance and repair services (window cleaning, computer repair) and busi­ness advisory services (legal, management consulting, advertising). These services are usually supplied under contract. Maintenance services are often provided by small producers, and repair services are often available from the manufacturers of the original equipment.

Exercise 9 3 . Answer the questions.

1. What is industrial product? 2. What are the groups of industrial products? 3. What are materials and parts and what do they include?     4. What do raw materials consist of? 5. What do component materials and component parts have in common and what makes them different? 6. What are capital items and what do they include? 7. What is the function of accessory equipment? 8. What are constituents of supplies and services?

 

Exercise 9 4. Give Ukrainian equivalents.

Further processing, materials and parts, have great bulk, vacuum cleaner, branding and advertising, finished product, lubricant, maintenance services, to supply under contract.

 

Exercise 95. Give English equivalents.

Комерційна діяльність з благоустрою території, допоміжні матеріали та послуги, сировина, низька вартість одиниці товару, комплектуючий виріб, портативне заводське обладнання, ручні інструменти, допоміжні матеріали та послуги, послуги з управління.

Exercise 9 6.  Match the groups of industrial product with the words below.

1. Component parts

2. Farm products

3. Buildings

4. Natural products

5. Fixed equipment

6. Tools

7. Office equipment

8. Operating supplies

9. Maintenance items

10. Maintenance and repair services

11. Advisory services

Wheat, offices, generators, desks, window cleaning, iron, fruits, vegetables, tires, factories, crude petroleum, paint, cotton, hand tools, iron ore, wires, nails, drill presses, large computers, lifts, advertising, lift trucks, fax machines, cement, lubricants, livestock, timber, computer paper, small motors, pencils, brooms, yarn, management consulting, fish, computer repair.

 

Exercise 9 7 . Learn the following words and word combinations.

Product Life Cycle (PLC)	– життєвий цикл товару
introduction	– вихід товару ( на ринок)
growth	– розвиток; зростання
maturity	– зрілість; високий рівень розвитку
decline	– падіння; занепад
devise	– розробляти
planning tool	– засіб планування
allocate money	– розподіляти гроші
relative market share	– відносна доля на ринку
market growth rate	– показник ринкового росту
plot against	– визначати в залежності від
product launch	– випуск нового продукту
consume resources	– споживати ресурси
profitable	– прибутковий
saturated market	– насичений ринок
cash flow	– потік готівки
cash cow	– грошова корова ( товар, що приносить великі грошові надходження)

Exercise 98. Read, translate and give the gist of text 13.

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