Exercise 3. Answer the questions.

1. What kind of shops in this country do you know?

2. What shops are situated not far from your house?

3. What goods can be bought there?

4. What specific features do channels of ldistribution have in this country?

5. What reforms does this country need to reorganize the channels of distribution?

Exercise 4. Translate into English.

1. Розничная торговля - это продажа товара конечному потребителю.

2. В западных странах есть различные типы торговых учреждений: универмаги, супермаркеты, магазины с низ­кими ценами, посыл торги и т.д.

3. На этот товар можно получить 10% скидку.

4. Розничный торговец может представить покупателю длительный кредит.

5. Эта фирма имеет множество торговых точек по всей стране.

6. Розничный торговец выполняет много важных функ­ций.

7. Я не знаю центр города, мне необходим справочник магазинов.

8. В торговом центре вы найдете все необходимые вам товары.

9. В этом магазине нет бакалейного отдела.

 

Exercise 5.

a) speak about the differences between (he channels of distribution of this country and western countries.

b) look at this chart and say in what industries different methods of distribution are possible.

Grammar Exercises

Exercise 1. Change the sentences according to the model.

Model: I should go shopping today.

I should have gone shopping yesterday.

1. The firm should apply for credit very soon.

2. They should see about the new refrigerator today. 3.1 should take my wife shopping a bit later.

4.They should get groceries at the supermarket this afternoon.

5. You should order a new car.

6. He should buy a computer today.

7. He should speak with the manager today.

Exercise 2. Change the sentences according to the model.

Model: If there is a shopping center nearby, we will go there together.

If there had been a shopping center nearby, we would have gone there.

1. If she buys too much, she won't be able to carry it herself.

2. If there is ice cream in this store, we will bring the children some.

3. If she tries the new boutique today, she will come very late.

4. If the shop offers home delivery, he will ask them to deliver.

5. If you shop downtown, you will find the shopping center.

 

LESSON 13

PRICING

Text

All products and all services have prices. The price depends on different thing such as.credit terms delivery, trade- inallowance, guarantees, quality and other forms of service, which price can produce the biggest profit during a long period of time. It's hardly possible to determine such a price. The price may be too high to produce a large volume or too low to cover costs. No other area of marketing operations has been a subject to bad practice. Many businesses peruse unsound price policies for long periods of time and are not aware about it.

Prices can be determined in different ways. For example, the prices of meat, cotton and other agricultural prices can be decided in large central market where forces of supply and demand exist. This is pure price competition. The prices on industrial products (iron, steel, etc.) are usually decided by large companies. As a rule the amount and price of goods sold to large number of buyers is controlled by a few competing sellers. Prices also can be set by the government, usually for different public services - railroads, electricity, manufactured gas, bus services, etc.

If demand increases, prices rise, profits expand and new investment is attracted. But other factors may be involved as well. Prices are related to each other in different ways. Ultimately, everything is related in price, since the consumer can buy and must pay for everything out of a particular, limited amount of money.

Active Vocabulary

credit terms - кредитные условия

trade-in allowance - сумма денег, отданная за старую вещь и включенная в счет покупки новой

to cover costs - покрывать затраты

to peruse unsound price policies - вести неразумную ценообразовательную политику

supply and demand - предложение и спрос

price competition - конкуренция в ценообразовании

to set prices - устанавливать цены

Comprehension Questions

1. Why is it difficult to determine the right price?

2. Why is the seller interested in the price that produces the highest volume of sales at the lowest unit cost?

3.Why do many businesses follow unsound pricing policies?

4. In what way are agricultural prices decided?

5. How arc industrial products usually priced?

6. Why does the government usually set the prices for public utility services?

7. Why is it so important to know the levels of supply and demand when dealing with pricing?

8. Why is everything related by price?

Vocabulary Practice

Exercise 1. Put ills necessary word in the sentence.

1. It is very difficult... without sound |1 supply and

price policy. |demand

2. Of course we are interested in |

producing the... with the lowest unit |2 volume of sales

costs. |

3.I decided to buy a new car at |3 trade-in

this company because they offered |allowance

the best... on my old model. |

4. The... of this store are very beneficial |4 compete

for customer. |

5. Their business will fail if they |5 price policies

persue unsound.... |

6. The government usually... for public |6 credit terms

utility services. |

7. In pure competition the forces |7 to set prices

of... operate. |

Dialogue

Dick is introducing a new line of products and is talking to his friend Tom, a business consultant, about it.

Dick It's the first time when I'm in business for myself.

Tom Don't worry. The store has always been doing well. It has a great location and as far as your new line of merchandise...

Dick That's what I wanted to talk to you about. Can you give some ideas how to charge the prices?

Tom With pleasure. Generally, there an. two types of pricing policies. There is price emphasis and price deemphasis.

Dick What's the difference?

Tom The price emphasis policy emphasizes low prices. This encourages sales. But low price doesn't give extra services.

Dick So, a really low price means no credit, home delivery, repair, installation and other services.

Tom That's what I mean. But many people are^ interested only in the low price and not in the extra services.

Dick Yes, and vice versa. The price which I set determines the number of sales. I must think thoroughly about it.

Tom A good example of price emphasis is " loss leader" pricing. It means that you choose one item - let's say an electric razor - at a price just above the cost. The customers will come to your shop to buy this loss leader item. But since they are inside they can decide to buy a few other things they need.

Dick It sounds interesting. What other things can you tell?

Tom There is also off-even pricing. Let's say you sell a tape recorder for $69.95 instead of $80.00. Though it is in fact about the same, the low price can produce a favorable psychological effect.

Dick What are the other ways to attract the customers?

Tom First of all, remember that you are going to compete with well-known products, so you should start with specially low prices. It's important to advertise this. You should use newspaper and, maybe a radio spot, maybe do a big window and floor display.

Dick It makes sense.

Tom And you can raise the price after your customers try a new brand get to know it and like it. They will continue to buy it.

Dick I see. And what is the price de-emphasis you mentioned before?

Tom It concerns high quality expensive items. Price de-emphasis means that you don't call attention to the price at all.

Dick I know, it concerns our fine jewelry department or designer fashions.

Tom Yes. I see you are going to do very well.

Dick Your suggestions seem to be ver useful. Don't forget you have a discount on any shopping you do in my shop.

Tom In such a case I'll be back tomorrow with my wife.

Active Vocabulary

location место расположения

extra services дополнительные услуги

installation services услуги по установке

to charge prices устанавливать, назначать цены

price emphasis продажа товара за счет низкой цены

price de-emphasis попытка продажи товара не за счет низкой цены, а за счет других факторов

loss-leader item товар, продаваемый по очень низкой цене, служащей для привлечения окупателей

off-even pricing цена, не доходящая до круглой цифры и стимулирующая желание покупателя купить

favorable psychological effect благоприятный психологический эффект

to start with especially

low prices начинать с особо низких цен

new brand новая марка (товара)

high quality expensive item высококачественный дорогой продукт

Vocabulary Practice

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