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III. Discuss these questions with your partner.



In what situation(s) do you think a worker can ask for a lot of money?

In what situation(s) can an employer pay less money to workers?

 

Dialogue

(Sally and Don work in the Marketing Department of company, that makes different meal products.)

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

Sally    Oh, that’s bad. That means trouble for our jam line.

Don          I think so too. Sugar is the main ingredient, you know. What’s your opinion.

Sally        Well, we are not the price loaders in the field and jam is a very price sensitive item. According to our marketing research information consumers aren’t particularly brand loyal about jam.

Don      I have a brilliant idea. You know, this could be a great marketing opportunity for us.

Sally        What do you mean?

Don        Well, because of the price rise in sugar we know that the price of jam will go up too. The increase will pass on the consumer, won’t it?

Sally    Right.

Don          Imagine, we find the possibility of changing the

ingredients in the jam so that we wouldn’t have to raise the price.

Sally      Then we wouldn’t trouble about the price rise on

sugar because we’ll be able to sell the jam at the same price. The idea is that we could market less expensive jam. What a promotional campaign we could have!

  Don       Sure. If we do it right we’ll sell more and become the leader in the market.

Sally      Now the first thing is to talk to Research and Development.

 Don       Right ant we’ll see when they’ll have some samples of new formulas ready.

Sally         What about marketing research? I think we should schedule some tests for responses to the R& D samples.

Don          Well, there is a lot to do. I think we should also change packaging. Now, Sally, that would be great.

Sally         Oh, Don, let’s hope for the best. If we don’t lose the chance, the competitors products will stay on the supermarket shelves.

Don      Oh, it’s time for lunch. Let’s discuss our business

in cafeteria.

Sally             Oh, sure, we’ve got a lot to discuss – distribution,

advertising...

 

Exercises

Choose the necessary word and put it in the sentence.

1. If the price on this product.., nobody will buy it.

2. They should... some tests and pass the results to R.D.

3. This company is the... in this field, they can sell this product at the lowest price.

4. Customers do care about the price on this product, it is a very....

5.... influences the desire of a customer to buy.

6. Our... has become the price leader in selling computer programmes.

A go up

B schedule

C packaging

D competitor

E price leader

F price sensitive

G item

 

3. Answer the questions.

1. Who is the price leader in your business?

2. How can you become a price leader? What should you do for this?

3. How should one start a promotional campaign?

4. Why is it dangerous to produce price sensitive goods?

5. Why is it important to have competitors in business?

6. What should you do to leave your competitors behind?

7. What knowledge must you have to be good at marketing?

 

4. Make transformations according to the model.

Model: Consumers wish prices would go down.

          Consumers hope that prices will go down.

I wish I could work harder.

I hope I can work harder.

1. The head of the department wishes that competition would lessen.

2. The Market Research Department wishes the test results would be ready soon.

3. The Manager wishes that sales would improve.

4. We wish all the departments could fulfil their tasks.

5. Sally wishes that the Packaging Department could hurry up.

 

  Unit 4

Text. Wholesaling

Wholesaling is a part of the marketing system. It provides channels of distribution which help to bring goods to the market. Generally indirect channels are used to market manufactured consumer goods. It could be from the manufacturer to the wholesaler, from the retailer to the consumer or through more complicated channels. A direct channel moves goods from the manufacturer or producer to the consumer.

Wholesaling is often a field of small business, but there is a growing chain movement in the western countries. About a quarter of wholesaling units account for one-third of total sales.

Two-third of the wholesaling middleman are merchant wholesalers who take title to the goods they deal in. There are also agent middlemen who negotiate purchases or sales or both. They don’t take title to the goods they deal in. Sometimes they lake possession though. These agents don’t earn salaries. They receive commissions. This is a percentage of the value of the goods they sell.

Wholesalers simplify the process of distribution. For example, the average supermarket stocks 5.000 items in groceries alone, a retail druggist can have more than 6.000 Items. As a wholesaler handles a large assortment of items from numerous manufacturers he reduces the problem of both manufacturer and retailer. The store-keeper does not have to deal directly with thousands of different people. He usually has a well-stocked store and deals with only a few wholesalers.

Exercises

Answer the questions.

1. What is the aim of the wholesaling?

2. How can you describe a direct channel of distribution?

3. What is an indirect channel of distribution?

4. What channel of distribution is preferable?

5. Is there any difference between a merchant wholesaler and an agent middleman? What is this difference?

6. How does a wholesaler simplify the process of distribution?

7. What would a retailer have to do without wholesalers?


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