Московская финансово-промышленная академия

Варенина Л.П.

The English Language of Marketing

Москва, 2005
 Варенина Л.П. The English Language of Marketing / Московская
финансово-промышленная академия, М., 2005 г., 110 с.

© Варенина Л.П., 2005

© Московская финансово-промышленная академия, 2005

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 Содержание

Предисловие..................................................................................................... 4

UNIT ONE. THE SCOPE OF MARKETING.................................................. 5

UNIT TWO. PRODUCT PLANNING ........................................................... 12

UNIT THREE. PRODUCT POLICY: WHAT SELLS .................................. 20

UNIT FOUR. CHANNELS OF DISTRIBUTION ......................................... 29

UNIT FIVE. PRICING ................................................................................... 39

UNIT SIX. COMMUNICATION: PROMOTION & SELLING ................... 49

UNIT SEVEN. FROM MAKER TO USER................................................... 60

UNIT EIGHT. RESEARCH ........................................................................... 70

UNIT NINE. THE FUTURE OF MARKETING ........................................... 82

GRAMMAR REFERENCE............................................................................ 93

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 Предисловие

Данное учебное пособие предназначено для студентов второго

курса специализирующихся в области маркетинга. Целью данного
пособия является отработка навыков чтения и понимания специального
текста, усвоение терминологической лексики данной области
специализации и грамматической структуры текста.
Пособие содержит оригинальные тексты по маркетингу,
отражающие специфику лексики данного подъязыка и грамматические
структуры типичные для специального текста.
Пособие содержит 9 разделов, грамматический справочник,
руководство по изучению данного материала, рабочую программу. В
каждый раздел (Unit) включены упражнения на закрепление
лексического и грамматического материала, вопросы для дискуссии. В
уроках также предлагаются темы для сочинений и устных докладов,
ролевые игры, case study.
Разнообразие упражнений позволяет использовать их выборочно
по каждому тексту с учетом уровня подготовки студентов.

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 UNIT ONE. THE SCOPE OF MARKETING

Special Terms
Advertising рекламная кампания
Consumerism защита прав потребителя
Costs издержки
Distribution сбыт
Goods and services товары и услуги
Merchandising политика сбыта; искусство торговли
Promotion продвижение
Retail розничная торговля
Surplus излишки
Wholesale оптовая торговля

Working on the text

Read and translate the text

The Scope of Marketing

It is common knowledge that marketing has lately developed into a

separate discipline that is being taught at universities now. When did it really
come into existence? This century, last century, or in the Middle Ages? –
Wrong on all three counts.
The transfer of goods from one person to another was probably one of
our earliest social acts. Whether through violence or barter, this transfer
established that few people can satisfy all their desires alone. The inability to
produce everything desired creates reliance on others for both necessities and
luxuries. As societies grow more complex, so does the transfer of goods.
The basic motive for trading is that someone has something you want
more than what you already have. When that someone is willing to exchange
what you want for what you have, a mutually satisfactory transaction can be
arranged. Generally speaking, then, trade is the exchange of surplus items for
shortages of items. The reasons for having surplus items range from
geographic and resource variations to division and amount of labor, skill
variation, and differences in taste. One group or person may create a surplus
of some product in the hope of profitably exchanging it for other products.
As society and production expanded, so did the limits of trade, the
range of goods, and the distance between the traders. It became increasingly
difficult for the producers to locate each other and arrange mutually
satisfactory exchanges without the help of intermediaries or "middlemen."
These intermediaries, in the role of bringing together interested parties, must
perform a variety of tasks which can be called marketing.
As defined by the American Marketing Association, marketing is "the
performance of business activities directed toward, and incident to, the flow
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of goods and services from producer to consumer or user " Marketing,
therefore, is made up of such physical activities as transporting, distributing,
storing, and selling goods, and of the decisions which must be reached by
individuals or groups who want to move goods from production to use. Of
course, not all producers engage in every marketing activity. The local
carpenter in Guatemala or the supermarket manager in Japan does not do
product planning; most retail stores around the world have few or no storage
facilities. However, most products are repeatedly subjected to all marketing
operations. In addition to an analysis of these activities, marketing involves
understanding the consumer circumstances and attitudes that determine why
certain people want certain products.
Marketing trends, activities, and organizations are constantly changing
and developing. In the role of bringing together interested parties, the
intermediary may also be involved in grading, financing, assembling,
packaging, refining, or altering the form of the goods Indeed, a large portion
of the working population in many countries is involved in some form of
marketing. In West Germany today, for example, manufacturing and the
marketing activities of retail and wholesale trade account for one-third of the
national income, while twenty-five percent of the work force is engaged in
full-time marketing activities.
The contribution of marketing to society is a subject of controversy
among economists. Contributions such as refining, transporting, assembling,
and packaging are considered productive; speculating, storing, accepting
commissions, and merchandising activities such as advertising are
considered parasitic and of little value to society
The general belief is that prime costs of distribution should be
eliminated and supplemental cost excesses should be reduced. Supplementary
costs of distribution such as packaging, storing, and selling are generally
considered to be continuations of the production process, and are thus
acceptable as an added value to the product. In the free enterprise system, the
full range of marketing activities operates with little control. Other more
controlled economies regulate and limit some of these functions.
Capitalist economies do acknowledge that marketing has its excesses,
as in cases where a product is stored for an undue period of time merely to
raise the price. Consumerism has arisen out of a belief that consumers have
rights which are often abused. People like consumer advocate Ralph Nader
have fought to have laws enacted which would protect these rights.
On the whole, however, functions can continue only if they perform a
service and fulfill a need. If unnecessary marketing activities raise the cost of
goods above that of the competition, the product will be priced out of the
market. The corollary to this is that marketing functions will only produce a
profit—the basic motive for doing business—if they provide a service worth
the money. It is argued that almost all marketing activities thus contribute to
the real value of a product. Whether or not this is true, the aim of this text is to

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explore those marketing activities and functions which do exist and which are
practiced.
The following questions face those involved in marketing: How should
the product be designed? How should it be packaged? What retail and/or
wholesale channels should be used? Is advertising advisable? If so, how much
and what kinds? What prices should be set? Will it sell, and to whom?
Although marketing activities have expanded tremendously in the past
hundred years, there was little formal study of them until the past few
decades. Today, there are many publications on the various aspects of
marketing and colleges give courses and degrees in this field. Marketing
research has developed into a highly specialized activity employing tens of
thousands of people around the world. There is general agreement among
marketing people that, in many cases and countries, marketing activities
account for more than half the cost of the product to the consumer. In many
countries, those engaged in marketing activities outnumber those engaged in
manufacturing or production.
We have noted that, in general, marketing directs the flow of goods and
services from producers to consumers or users. Marketing is not confined to
one particular type of economy; goods in all but the most primitive societies
must be marketed. Indeed, a broader concept of marketing does not limit its
application to business enterprises. Schools, hospitals, libraries, and many
other services must also be marketed to be used.

Vocabulary notes

Prime costs of distribution: Costs or expenses that arise because of

the process of buying and selling or a conversion of the form of the product.
Supplementary costs of distribution are costs or expenses which add
to the value of a product because they are a continuation of the production
process.
Comprehension
Tick the correct answer A, B or C for 1 –6 below
1. The transfer of goods took place because:
A. People were violent;
B. A mutually satisfactory transaction was desirable;
C. People were unable to produce everything themselves.

2. What is the role of an intermediary?

A. To make interested parties produce some product together;
B. To match Sellers and Buyers;
C. To perform a variety of tasks.

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 3. Marketing is:
A. Promoting goods and services from producer to user;
B. Storing and selling goods;
C. Understanding consumer circumstances.
4. In many countries the number of people involved in marketing
activities is:
A. Less than those involved in production;
B. More than those involved in production;
C. The same.

5. We can apply the term “marketing”:

A. Only to business enterprises;
B. Only to non-profit organizations;
C. To both.

6. How expensive are marketing activities to the ultimate consumer:

A. They don’t cost much;
B. They double the price of the product;
C. Nothing is mentioned about it.

Vocabulary Practice

Exercise 1

Find English equivalents in the text:

Насилие, неспособность, зависимость, предметы роскоши,
предметы первой необходимости, сделка, устраивать, излишки,
нехватка, разделение труда, торговля, посредник, производство,
сортировка, сборка, очистка, общее мнение, нарушать права
потребителя, прибыль.

Exercise 2

Fill in the blanks with one of the words from the list below. Change
the form of the words where necessary.
a) promoted, b) domestic, c) markets, d) non-profit, e) products,
f) competitive, g) bringing together

Whether a firm is large or small,____1_____ a tangible or intangible

product, aspires to profit or ____2____objectives, or sells in______3____ or
international markets, the basic marketing process will be the same. Buyers
must be found,___4_____ must be conceived, priced,___5___ and
distributed. Uncontrollable factors such as differing economic and___6_____
conditions must be taken into account in ___7_____ buyers and
products____8_____.
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 Grammar Revision : The Passive Voice

We form the passive by using the appropriate tense of to be + a past

participle.
A passive construction is used when the action itself is more important
than the doer of the action or when we focus on information. We also use
passive when describing a process or procedure or writing in formal style.

Exercise 3

Open the brackets using the correct tense

1. Green-marketing strategies (to develop) by many companies now to
attract customers.
2. Most goods repeatedly ( to subject) to all marketing operations.
3. The price for this product ( not to set) yet.
4. The new marketing plan (to approve) already by the top managers.
5. An intermediary may (to involve) in grading , financing, assembling
or packaging.
6. Consumers’ rights often (to abuse).
7. Last century in West Germany twenty five per cent of the work
force (to engage) in full-time marketing activities.
8. If unnecessary activities raise the cost of the goods above the
competition level the product (to price out) of the market.
9. Their new telephone equipment (to market) more imaginatively this
season.

Exercise 4

Translate from Russian into English, making use of the vocabulary

of the lesson
1. Маркетинг – это вид коммерческой деятельности,
направляющий поток товаров и услуг от производителя к потребителю
или пользователю.
2. Мы постоянно совершенствуем политику сбыта.
3. Права иностранных граждан в этой стране всегда ущемляли.
4. Общее мнение маркетологов заключается в том, что основные
издержки сбыта должны быть устранены, а дополнительные издержки
сокращены.
5. Движение в защиту прав потребителя возникло из убеждения,
что потребители имеют свои права, которые часто нарушают.
6. Роль посредника заключается в том, чтобы свести вместе
заинтересованные стороны – покупателя и продавца.
7. Десятки тысяч людей по всему миру заняты в маркетинговых
исследованиях.
8. Эта компания готова заключить взаимовыгодную сделку.
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 9. Автомобиль не роскошь, а средство первой необходимости для
современного делового человека.
10. Существует мнение, что оптовая торговля приносит больше
прибыли, чем розничная.
11. Очистка, транспортировка, сборка, упаковка – эти виды
деятельности считаются продуктивными.
12. В системе свободного предпринимательства маркетинговая
деятельность слабо контролируется.

Vocabulary Test

Match the words in the left column to their definitions in the right
one
1. Goods A. The amount which is greater than what is
used or needed
2. Barter B. The work provided for others as an
occupation or business
3. Surplus C. A social movement which seeks to protect
the rights and powers of consumers
4. Marketing D The sale of goods to ultimate consumers,
usually in small quantities
5. Services E Different activities to make and attract a
profitable demand for a product;
6.Retail F The planning and promotion of sales through
attractive publicity
7. Wholesale G A fee, frequently based on a percentage of
the sales price, paid to agents
8. Merchandising H The sale of goods in large amounts to
jobbers or retailers
9. Speculating I Trade or exchange of goods or services
without the use of money
10.Commission J Buying and selling with the expectation of
profiting from anticipated price changes
11.Consumerism K Articles of trade and commerce; wares;
merchandise; products

Discussion

1. How did the practice of trade begin? What was the motive for
trading?
2. What are some reasons for the existence of surplus items?
3. What is the role of an intermediary or "middleman" in the process of
trade?
4. List some of the major marketing operations.

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 5. Do all producers engage in all marketing activities? Why?
6. Why are certain marketing functions subjects of controversy among
some economists?
7. Give an example of an "excess" in marketing.
8. What is consumerism?
9. Summarize the major questions that marketing people around the
world ask with regard to the goods their firms or organizations produce.
10. How important are marketing activities to the cost of goods to the
consumer?
11. Is use of the term "marketing" limited to business enterprises?
12. What is the difference between retail and wholesale?
13. Give examples of wholesale operations.
14. Give examples of retail stores in your community.

Vocabulary

violence насилие
to transfer перемещать, передавать (имущество,
право)
necessity предмет первой необходимости
luxury предмет роскоши
division of labor разделение труда
range сущ диапазон, радиус действия,
сфера, область, круг
гл. классифицировать, распространяться,
простираться
intermediary посредник (син. – jobber, broker)
incident to свойственный, присущий
product planning планирование и разработка товара
to account for объяснять ч-л, отвечать за ч-л.
free enterprise system система свободного
предпринимательства;
ant. controlled economy ант. страны с жестким
гос.контролем
to acknowledge признавать
to abuse плохо обращаться, зд. – нарушать
(права)
to price out вытеснять с рынка из-за
(неконкурентноспособной цены)
corollary вывод, заключение, результат
to explore исследовать, изучать
to set a price устанавливать цену
to confine ограничивать, строго
придерживаться

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 UNIT TWO. PRODUCT PLANNING

Special Terms
Marketing research Маркетинговые исследования
Competition Конкуренция
New product issues Вопросы производства новых
товаров
Product planners Плановики производства;
разработчики товара
Merger Слияние
Product line Ассортимент, товарный ряд
Sales pitch Направленная реклама
(навязчивое предложение
товара)
Sales force Торговый персонал
Research and development (R &D) Отдел научных исследований и
разработок
Input Исходная информация
Style Стиль
Fashion Мода

Working on the text

Read and translate the text

Product Planning

Marketing starts in a market, where individuals or organized groups

who want to buy goods or services meet people who want to sell them. The
buyers must have money to spend and a willingness to spend it, or a product
or service they themselves are willing to trade.
The sellers must have what the buyers want. The first step in marketing
is to understand these groups. The marketers must determine the number of
buyers, what they want to buy, how, when, and where they want to buy it, at
what price and what they expect from it. Elaborate techniques of research
have been developed to supply this information. Of course, marketers have to
decide which needs they want to meet. A concept for a product or service may
develop long before any marketing research is done, or it may be a response
to identifying need.
In part, at least, marketing determines what products and services are to
be offered. Historically, marketing experts were supposed to sell any product
in any way possible. The techniques of marketing research have now given
marketers new ways to learn and analyze the needs and wants of consumers.
They can now play a critical role in determining what—as well as how—to

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market. Most large companies now produce only what their market
researchers tell them will profitably sell.
All products were new at one time. Today, a product is new if it is
unique—a "first"—or if it is new for the manufacturer who is entering the
market to challenge the existing competition, or if it has had enough
substantial design modifications to make it a new product issue. For the
manufacturer, merchandising includes selecting the products to be produced;
deciding on the size, appearance, form, and packaging; and "having the right
goods at the right place at the right time at the right price."
The product planners try to determine whether there will be a demand
for a given product, and if so, how much. Marketing managers then, working
closely with top management, integrate these predictions with an analysis of
all the areas of the business which will be affected. Does the firm possess the
capacity and the funds to enter into the new product area? What are the
existing marketing strengths, skills, and resources? How strong is the compe-
tition? The commitment of a company's energies and funds may be far-
reaching. Not only may substantial investments be required to develop and
market new products, but contracts or even mergers with other firms may be
necessary.
Professional marketing managers know that appraising new products
and changing an existing product line are ongoing processes. There are many
motivations for constant surveillance of the product line. Scrutiny may reveal
opportunities to increase sales by offering customers more functional
products, greater convenience, more prestige, greater value, or some
combination of these qualities. Volkswagen of Germany, for example,
introduced three entirely new models in a few years in an attempt to fill the
needs of a more affluent market seeking different qualities in an automobile.
Additional products added to the line may reduce certain costs by more fully
utilizing the firm's production or marketing capabilities. The airline which
gets into the business of car rental for its passengers requires minimal extra
cost while making fuller use of its personnel and company resources. At the
same time, the existing sales pitch is easily integrated. Sometimes a new
product will enhance those already in the line. Lipstick and nail polish sales
rise when their manufacturers add perfume to the line, and libraries seem to
lend more books when they also offer records, paintings, and films to the
community.
Regardless of the motivation for new or additional products, marketing
managers must consider the full range of effects the products will have on the
business. Prime considerations are the similarity of the proposed product to
the existing product line of the company, the similarity to the competition's
products, and the resources of the firm. Marketing people determine if the
products are suitable for distribution through normal or existing channels.
They ask if the regular sales methods are appropriate and if the new products
can be linked to others in the line. They make whatever changes are necessary

13
in the promotion or advertising policies, while carefully thinking out the costs
of production and the final pricing.
At one extreme, a new product will be sold to current customers by the
existing sales force, using the distribution channels previously developed and
the same price and advertising appeals. In this case, the only major question is
whether or not the product will result in additional sales or merely siphon off
sales from existing company products. Frozen vegetable marketers, for
example, saw their products' sales rise with a proportionate dip in sales of
their canned produce. But when the major soft drink manufacturers added
low-calorie diet sodas to their line, new sales were generated without
detriment to the existing line.
In contrast, some new products appeal to previously untapped markets.
When Pierre Cardin introduced its first products for women, the firm's
marketers were presented with new and complex problems. Distribution
channels were different, a specialized sales force was required and unfamiliar
promotion and pricing problems arose. It is between these two extremes that
most marketers find themselves.
While pioneering is risky, some firms seek to develop and market
radically new products. Trusting that, as leaders in a field, they will reap
rewards for being first, some firms invest large sums on new product research
and development. The failure rate for this approach is high, so not all
companies have such inclinations. In a less expensive way, some firms
monitor the product development of others to see if an item is demonstrably
salable. Similar to this approach is the strategy wherein firms spend nothing
on research and development and introduce products only into mature
markets. This kind of business has low overhead and usually manufactures
large volumes at low cost, relying on price as its only important sales
advantage.
After deciding to produce a product, the planners carefully weigh all of
the input. Settling on a final design involves many processes, taking into
account the style, fashion, quality, packaging, and complexity of the product.
Marketing a new product is always a gamble, but information and planning
greatly reduce the risk of failure.
Comprehension

Tick the correct answer: A, B or C for 1 – 5 below:

1. The marketers must determine:
A. The number of buyers;
B. What products and services to offer;
C. The willingness to spend money.
2. The decision to produce a new product may sometimes result in:
A. Cooperation with other companies;
B. The capacity and the funds of the company;
C. An analysis of all the areas.
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 3. More fully utilizing the firm’s capabilities means:
A. Only enlarging the product line;
B. Only introducing a unique product;
C. Fuller use of the personnel and company resources.

4. The reason that some firms invest large sums on new product
research and development is:
A. They believe they will reap rewards for being first ;
B. They want to sell a lot of cheap products;
C. They hope to find a lucrative nich.

5. To siphon off sales means:

A. To generate additional sales;
B. To reduce the sales of the major product line;
C. Neither.

Vocabulary Practice

Exercise 1

Find English equivalents in the text:

Желание, тщательно разработанные методики исследования,

определять, искусство торговли, бросать вызов существующей
конкуренции, финансовые и моральные затраты компании,
удовлетворять потребности более богатого рынка, издержки
производства, пожинать лавры первенства, тщательно взвесить
исходную информацию.

Exercise 2

Fill in the blanks with one of the words below. Change the form of
the words where necessary.

a) distinguish, b) need, c) costs, d) efforts, e) selects, f) advantageous,

g) motivated, h) organization, i) buying

The act of___1_____ starts with a customer___2____. As the customer

considers acting on that need, why should your product be the one he or
she___3____? Answering that question focuses your___4____ on where you
make contact with your customers. It is your choice, so you pick a spot that is
inherently___5_____ to your company. If your___6_____ are not the lowest
in the industry, don’t pick low prices. If your people are not the best and
most___7_____, don’t pick customer service. If you can find nothing

15
that___8_____ you from the competition, pick something and make yourself
better at that “something” than anyone else.

Grammar Revision: Modal Verbs

Modal verbs must, can, may, should, ought, will are auxiliary verbs
that express the speakers’ judgement about the likelihood or desirability of a
situation. All modals can express probability or possibility as well as
obligation or willingness. For more information see § 3 of the Grammar
Reference.

Exercise 3

Explain the meaning of the modal verbs in the sentences given below:
1. The buyers must have money to spend and the willingness to spend
it.
2. A concept for a product or service may develop long before any
marketing research is done, or it may be a response to identifying need.
3. They could have launched their new product 3 months ago.
4. They must have sold everything.
5. There will be a delay in solving this problem.

Exercise 4

Use the correct modal verb:

1. Sometimes customs clearance______ be difficult to obtain.
a) may b) must c) is

2. If we outsourced more we _______ save a lot of money.

a) must b) may c) could

3. Their product ________ be selling very well, otherwise the company

would not have increased the production.
a) must b) may c) can

4. Scrutiny _______ reveal opportunities to increase sales.

a) must b) may c) should

5. The company _______ have launched the entirely new product.

a) mustn’t b) may not c) couldn’t

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 Exercise 5

Translate from Russian into English making use of the active

vocabulary.
1. Группа товаров тесно связанных между собой, т.к. они
функционируют сходным образом и продаются тем же группам
покупателей, называется ассортиментом.
2. Чтобы получить необходимую информацию касательно
потребностей покупателей, надо тщательно разработать методику
исследования. 3. Вопросы производства новых товаров охватывают
такие области как создание стиля, улучшение качества товара, его
упаковки и т.д. 4. Бросить вызов существующей конкуренции может
только уникальный товар или товар, имеющий значительные
модификации в своей конструкции. 5.Иногда, чтобы разработать и
продать новый товар, необходимы не только значительные инвестиции,
но и слияние с другими компаниями. 6. Изменение ассортимента товара
- это постоянно продолжающийся процесс. 7. Чтобы решить вопрос об
окончательной модели будущего товара, плановики производства
должны тщательно взвесить всю исходную информацию. 8. В попытке
удовлетворить потребности более богатого рынка производители
пытаются предложить своим покупателям больше удобства, больше
престижа и более высокое качество. 9. Определенные затраты могут
быть снижены путем более полного использования производственных
возможностей. 10. Некоторые новые товары нацелены на ранее не
использованные рынки.
Vocabulary Test

Match the words in the left column to their definitions in the right
one
1. Sales pitch A. The systematic gathering, recording, and
analyzing of data about problems relating to the
marketing of goods and services.
2. Merger B. Those questions surrounding a decision to pro-
duce a new product.
3. Sales force C.A group of products that are closely related
because they function in a similar manner, or fall
within given price ranges.
4. Style D. The rivalry between businesses for the same
customers or market
E. The line of reasoning, delivered personally or
5. Fashion through advertising and promotion, intended to
persuade people to buy a certain product or service
6. Input F. The people engaged in selling the products of a
particular organization
17
 7. Competition G. The legal combining of two or more business
enterprises into a single entity
8. New product I. The currently accepted style or the custom of the
issues moment
9. Marketing J. The usable information bearing on
research understanding an issue or solving a problem

10. Product line K. The design of a product, created to appeal to

more or less permanent criteria of what is
acceptable

Discussion

1. Describe the role of marketing in relation to those who buy or use

goods or services.
2. How does marketing affect product planning? What was marketing's
historic role?
3. What makes a product "new"?
4. What does merchandising mean to the manufacturer?
5. What must product planners try to determine while considering the
introduction of a new product?
6. Give some reasons or motivations to alter or add to a product line,
7. Marketers must consider the effects of a new product on the
company's business. List the prime considerations in this process.
8. How might the introduction of a new product affect the distribution,
sales force, and promotion policies of a company?
9. Do sales of one product ever siphon off sales from the company's
other line. Give an example.
10. What are some of the major problems for a firm entering a
previously untried market?
11. Why do some firms develop and market radically new products?
12. Describe two approaches to introducing a new product.
13. What type of business would tend to avoid spending money on
product research?
14. What are the major decisions which must be made after the decision
to introduce a new product?

Role play

1. You are a marketing manager for a firm that makes home carpets.
The president asks you to develop a program to merchandise curtains and
drapes. What questions should you ask? What kinds of input do you need in
order to fulfill your task?

18
 2. Give examples of goods or services from your country which
describe the following:
a) A product or service redesigned frequently for reasons of fashion;
b) A product or service which enhances the value of other products or
services in a company's line;
c) A product or service introduced to offer greater convenience and
value to its users.

Vocabulary

Willingness желание
to determine определять
elaborate тщательно разработанный
techniques методика
identify отождествлять,
идентифицировать, узнавать
response ответ, реакция
challenge вызов
integrate интегрировать, включать
commitment обязательства
appraise оценивать
scrutiny внимательный осмотр,
исследование
reveal открывать, разоблачать,
обнаруживать
affluent богатый, изобильный
capabilities возможности
research and development
department отдел научных исследований и
разработок

19
 UNIT THREE. PRODUCT POLICY: WHAT SELLS

Special Terms
Sales appeal товарный вид
Trend тенденция
Taste вкус
Quality качество
Feedback обратная связь
Quality control контроль качества
Consumer goods потребительские товары
Target market целевой рынок
Positioning позиционирование, размещение товара на
рынке сбыта
Trading up повышение цены за счет улучшения
качества
Brand брэнд (название, знак или символика,
отличающая товар к-л производителя или
продавца)
Brand name наименование, название товара
Trademark торговая марка

Working on the text

Read and translate the text below, paying special attention to the use
of the Infinitive.

Product Policy: What Sells

Few products or services offered today are simple to market. From

refrigerators to religions, they compete for customers in a world which is
growing not only in size but in sophistication and complexity. Even if one
product is clearly superior to another, this may not be evident for a variety of
reasons. Marketers must know what attracts customers and keeps them, and
must respond accordingly.
Whether designing new products, redesigning old ones, or improving
established ones, there are certain basic objectives. One of the goals should be
to benefit the consumer, as well as the producer. The product should be
designed to function as efficiently as possible in relation to its price and use.
Additional uses and styles should be incorporated to supplement the basic
value. Take watches, for example. Think of the variety of styles and features
offered consumers.
This element of variation increases the functions of the product as well
as attracting particular segments of the market. Some design elements, such as
more jewels or special bands, may add nothing to the basic utility of the

20
watch. They will, however, add to sales appeal at the point of purchase and
further expand the potential market.
One of the vital factors in merchandising is the ability to cope with
fashion. This element is basic to all kinds of products and services, from
clothing to entertainment. Sometimes the marketer's job is almost entirely to
gauge fashion trends. Fashion is a manifestation of group psychology and is,
at best, difficult to predict. A fashion has its beginning when a few people are
influenced by it, culminates when large numbers follow it, and declines when
it is abandoned by its following. A style may or may not be a fashion at any
given time: it becomes a fashion only when widely accepted.
Fashion designers, naturally, try to influence public taste. Many
businesses have developed methods for scrutinizing the trends of sales in their
special fields. They use these results to produce products that they hope will
sell.
Quality is a judgment made by both manufacturers and customers.
Educated consumers consider more than comparative prices. While marketers
are not directly involved in production activities, they do receive the feedback
on product acceptance. For this reason, quality control is important to the
entire merchandising process. Maintaining quality in a product adds to the
cost of production and to final price. Questions of quality are thus carefully
considered in the process of deciding what to buy and what to sell.
Marketing managers must, at some point, consider the breadth of their
product line—how many different items to offer. By designing consumer
goods in various models, sizes, and classes, a producer is able to reach for
parts of the market that would be unavailable if the pattern or product were
single or limited. In products like table salt, image is unimportant to the
consumer, so salt comes in limited types and packages. Cars, on the other
hand, are highly visible prestige items; most automobile manufacturers offer a
wide choice of models and options.
In addition to marketing "finished" goods to consumers, businesses also
market industrial goods and services to other businesses. This is called
industrial marketing. More dollars are actually involved in sales to industrial
buyers than to consumers. In the United States, more than $1 trillion of such
income is generated annually.
Regardless of the type of good, it is important to focus a marketing
strategy on target customers. Target marketers believe that in most product
areas the market is composed of widely dissimilar submarkets. By selecting
smaller, more homogeneous segments, better oriented, more profitable
marketing practices are developed.
When deciding questions of diversification and simplification,
marketers must also look at the potential size of a market, at the financial
position and practices of their firm, and at the resources available. All these
elements influence the breadth of the product line. Determining where to
position particular products is an important marketing decision.

21
 An item such as deodorant may be introduced specifically as a men's or
women's product, but later may be repositioned as a family product. In
addition to positioning with respect to consumer segments, marketing
managers position their products with respect to the competition. A magazine
publisher may wish to position a publication so as to challenge the leader in a
given market. Changes in format, emphasis, or editorial policy can appeal to
the same consumer interests that buy the leader If, in this example, the result
is also to appeal to a market which is more affluent and more quality-
conscious, the price will be raised. This process is known as trading up.
Another aspect of product policy, particularly relevant to consumer
goods marketers, deals with brands. Branding is commonly used by
marketers to influence consumers' perceptions and is closely related to the
issue of positioning. It identifies merchandise and differentiates it from
competing products. The marketer hopes for sales stability due to consumer
loyalty to the brand. Ideally, this occurs when consumers are so satisfied with
the merchandise that they note and remember the brand. When a manufacturer
sells more than one product, there is a brand choice issue. A firm which
merchandises many types of soap may choose individual brands for each of
its products. The hand soap, dish detergent, clothes detergent, and scouring
powder will all be labeled with different brand names.
The opposite policy is that of family branding. A paper products
company may market all its products—tissues, towels, napkins, toilet paper—
under one recognizable brand name.
In recent years distributors, particularly large ones, like department
stores and supermarkets, have been branding products. Some carry
manufacturer's brands only, while others carry a combination of
manufacturer's brands and their own. These dealers don't actually produce the
goods; they arrange to sell manufacturers' products under their private brand.
This practice has grown tremendously, so that elegant department stores such
as Bloomingdales do it as well as supermarkets like the A&P.
Closely related to brand identification, and sometimes considered more
important, are trademarks. Because of their importance as short cuts to the
customer's memory, and their legal protection to assure exclusivity, well-
established trademarks have a large cash value. In mergers, some well-known
trademarks have been valued at millions of dollars. Through constant use on
packages and in advertising, many trademarks have almost eclipsed the name
of the manufacturer. Vaseline, the trademark for the petroleum jelly produced
by Chese-brough-Ponds, Inc., is such an example. Many people refer to any
petroleum jelly as "Vaseline."

22
 Comprehension

Tick the correct answer A,B or C for 1 – 6 below

1. The product is to be designed:
A. to meet the requirements of the producers;
B. to function efficiently;
C. to benefit both the manufacturer and the consumer.

2. Why is it the marketer’s job to gauge fashion trends?

A. because they have to cope with fashion;
B. because they must offer their customers а variety of styles;
C. because fashion is difficult to predict.

3. The feedback on product acceptance is important for:

A. consumers to consider comparative prices
B. the quality control;
C. the entire merchandising process.

4. The breadth of the product line of a company depends on:

A. deciding questions on diversification and simplification;
B. the target market and the resources available;
C. the financial position only.

5. What is trading up?

A. offering high-quality, expensive goods to affluent markets;
B. positioning products with respect to the competition;
C. challenging the leader.

6. What is the purpose of branding?

A. to satisfy consumers with attractive brand names;
B. to make the company famous;
C. to identify merchandize and differentiate it from other products.

23
 Vocabulary Practice

Exercise 1

Find English equivalents in the text:

Реагировать, пополнять, в отношении, характеристики, оценивать,

отказываться от ч-л, модельеры, готовый товар, однородный,
требовательный к качеству, моющее средство, отождествление,
затмевать, раскрученная торговая марка.

Exercise 2

Fill in the blanks with one of the words below. Change the form of
the words where necessary.

a) to recognize, b) extension, c) tried, d) recession, e) to expand,

f)core value, g) brand names, h) to build up
Brand ___1____has become valuable in the past five years. During
the__2_____, hard-pressed marketing directors in the food industry offered
consumers more choice by adding new flavours, taking out fat or sugar, or
moving from one____3____ and tested category to an allied one. But some
companies have___4___ into new and unexpected areas. Among them are
tobacco companies – which by moving into sectors like luxury goods and
closing keep their____5___ in the mind of the public despite stringent
regulations on advertising. Dunhill was the first___6____ the power of its
brand name and has___7____ successfully a luxury goods empire. But if you
stretch a brand too far, the elastic can snap and the____8____ of the name
becomes devalued as some companies have found to their cost.

Grammar Revision: The Infinitive

The Infinitive is a non-finite form of the verb that has a double nature,
nominal and verbal. Its nominal character is manifested in the syntactic
functions. The verbal characteristics of the infinitive include tense, voice and
aspect distinctions.
The indefinite infinitive (active and passive) expresses an action
simultaneous with that of the finite verb.
The Continuous Infinitive denotes a simultaneous action in progress.
The Perfect Infinitive denotes an action prior to that of the finite verb.
For more info see
§ 4 of the Grammar Reference.

24
 Exercise 3

Explain the functions of the infinitive in the following sentences:

1. They use the results to produce product that they hope will sell.
2. Questions of quality are carefully considered in the process of
deciding what to buy and what to sell.
3. They happened at the moment to be packing the goods.
4. To market a new product is not as easy as it may seem.
5. The advertising campaign to be launched is under discussion now.
6. We intended to have signed the contract.
7. Think of supplemental features which might be added to help a
product appeal to a new market.

Exercise 4

Open the brackets using the correct form of the infinitive:

1. The product (to design) is to function efficiently.
2. They were happy (to run) the company for 10 years so effectively.
3. They couldn’t (to launch) an entirely new model within such a short
period of time.
4. As we understood our competitors meant (to introduce) a new style
but I don’t think they succeeded.
5. If a product is (to position) against a competitor, a lot of things
should (to take) into consideration.
6. (To gauge) fashion trends correctly the marketer has to do a lot of
market research.

Exercise 5

Translate from Russian into English making use of the vocabulary of

the lesson:
1. Вы думаете, Ваша фирма способна правильно оценить
тенденции в моде?
2. Жизненно важный фактор маркетинга – идти в ногу с модой. 3.
Модельеры часто стараются повлиять на вкус потребителя. 4.
Размещение товара на рынке может происходить либо посредством
имиджа, создаваемого рекламой, либо посредством его основных
характеристик, отвечающих потребностям рынка. 5. Обратная связь –
это информация, получаемая от потребителей через мониторинг данного
товара. 6. Стратегия маркетинга часто сфокусирована на целевом
покупателе. 7. Торговая марка – это официально зарегистрированное
название, символ или знак, идентифицирующий товар или услугу. 8.
Исследование и разработка новых товаров требует больших вложений.
9. Плановики производства пытаются определить будет ли спрос на
новый товар и какие затраты энергии и средств потребуются компании.
25
10. Очень трудно быть конкурентноспособным на богатом, насыщенном
рынке. 11. Если потребители данного рынка более требовательны к
качеству товара, то здесь возможно повышение цены за счет улучшения
качества. 12. Если производитель производит более одного вида
товаров, он может присвоить индивидуальное наименование каждому из
своих товаров или единое название для всей совокупности товаров. 13.
Чтобы принять решение по производству новых товаров, маркетологи
должны учитывать ряд проблем, включая финансовое положение фирмы
и наличие ресурсов.

Vocabulary Test

Match the words in the left column to their definitions in the right
one
1. Industrial goods A. Items such as food and clothing produced for the
final consumer;
2. quality B. The officially registered name, symbol, figure,
letter, word, or mark identifying a product or service
3. sales appeal C. The strategy of raising a product's price by
improving its quality or image
4. feedback D. The population of customers to whom an
organization directs its marketing strategy
5. trademark E. The manner in which a product is aimed at
specific consumer segments or needs, either through
its basic characteristics or through the image created
by its promotion
6. trading up F. The system of maintaining a desired level of
quality in each item by careful planning, use of
proper equipment, continuous inspection, and
corrective action where required.
7. taste G. Those qualities in a product or its presentation
which interest potential customers and stimulate
them to buy
8. trend H. Those goods meant for use in producing other
products
9. target market I. A name, term, sign, symbol, or design, or a
combination of them which identifies the goods or
services of one seller or group of sellers.
10. consumer goods J. A general course or prevailing tendency; the
recognized direction of a style.
11. quality control K. The sense, shared by homogenous groups, of
what is fitting, harmonious, or beautiful; that which
we deem to be tasteful or in good taste is perceived
as superior.

26
 12. brand L. Continuous data about a particular item or event
for purposes of monitoring, controlling, or
correcting errors;
13. positioning M. The character or nature of a particular thing; in
advertising, it usually refers to superior attributes or
excellence in a product or service.

Discussion

1. What is the role of marketing in relation to the utility, or usefulness, of

a product?
2. Give an example of this role; think of supplemental features which
might be added to help a product appeal to a wider market.
3. What further additions might add sales appeal to the example you just
chose?
4. Name some types of goods and services which are affected by fashion
trends.
5. How does a new fashion come about? How does a particular fashion
rise and fall in popularity?
6. Some marketers attempt to introduce a fashion or style. What role does
taste play in response to these attempts? Give some examples from your country
7. What is the relationship between manufacturers and consumers with
regard to a product's quality.
8. What uses do marketers make of the feedback they receive on a
product's acceptance?
9. What is the theory of target marketing?
10. What are the advantages of broadening a product line?
11. How does consumer perception of importance influence the extension
of the product line?
12. Why is industrial marketing important?
13. What questions do marketers ask when considering diversification and
simplification?
14. Give an example of an auto or auto rental product which has been
positioned against a competitor.
15. Why might a product be repositioned after it has been introduced onto
the market?
16. What is the role of branding in marketing?
17. Give a specific example of a family brand and of individual brands.
18. Give some examples of distributor's brands. Are they cheaper than
manufacturer's brands of the same kind of product? Are they usually as well
made? As well publicized? As tastefully packaged?
19. What is the major role of a product's trademark?
20. What are the trademarks of some products marketed in your country?
21. Vaseline is given as an example of a product whose trademark has
almost eclipsed the name of its manufacturer. Give some other examples of this.

27
 Review
A. Focus on a product which you yourself wear, eat, or use regularly.
What is its basic utility? Does it have any supplemental features which
persuaded you to buy it? Name them. What was it about this item which most
attracted you—which aspects of its sales appeal caused you to purchase it?
B. Do you usually adhere to a particular style of clothes, jewelry, food,
entertainment, recreation, or means of transportation? How do fashion trends in
these areas affect you? Think of a fashion trend in one of these areas which you
consciously rejected. Think of a trend you once accepted, then rejected. Why did
you do both of these?
C. Think of your favorite restaurant. Does it offer a wide variety of meals
or a limited menu? Why? Is it positioned against any other restaurants in the
same neighborhood? Has it changed its image since it opened? Has the clientele
remained the same?
D. You probably know many more brand names than you realize. List ten
consumer goods which you regularly purchase (cigarettes, coffee, gasoline,
candy, records). After each type of product, list as many brands as you can think
of.
E. What are some of the most widely known trademarks in your country?
F. Think of the packaging of the last kitchen product you purchased. Was
it functional? In what ways do you think it helped preserve and protect the
product? Assuming that a lot of thought went into the package design, do you
think it was adequate? How might it be improved.

Vocabulary

sophistication сложность, утонченность,

искушенность
to benefit получать выгоду
to incorporate включать, соединять
to supplement дополнять, добавлять
value ценность, стоимость
to cope справиться, совладать; зд. идти
в ногу
to gauge оценивать
fashion мода
homogeneous однородный
diversification разнообразие
challenge вызов
affluent богатый, изобильный
quality-conscious требовательные к качеству
differentiate отличаться
detergent моющее средство
merger слияние
to eclipse затмевать

28
 UNIT FOUR. CHANNELS OF DISTRIBUTION

Special Terms
Consumer outlet торговая точка
Channels of distribution каналы сбыта
Sales representatives торговые представители
Broker брокер
Sales territory торговая территория
Marketing mix «маркетинг микс», совокупность
затрат на маркетинг
Franchise франшиза (право на торговлю под
известной торговой маркой)
Direct mail почтовая рассылка рекламы
Discount house магазин, торгующий со скидкой
Patronage dividend патронажный дивиденд
(выплачивается акционерам)
Overhead накладные расходы

Working on the text

Read and translate the text

Channels of Distribution

As we have noted, bringing together the buyer and seller and

facilitating their exchange is the essence of marketing. From the time of the
Roman mercatus (Latin, for a public place where sellers and buyers meet), the
town market square has been an important center of commerce where direct
transactions between producers and consumers take place. In this type of
locale, each producer accepts major responsibility for advertising, finding
customers, and setting a price.
With the spread of trade, more and more specialized artisans were able
to live without growing their own food. By the second century, Ostia, one of
Rome's ports, already had large consumer warehouses. Overseas purchases,
shipments, and distribution of grain, oil, and fish were common. Long-
distance marketing of textiles and other wares took place along the so-called
silk road from China to the Middle East at centers like Samarkand. And by
the fourteenth century, Timbuktu, in the Upper Niger region, was one of the
world's busiest inland markets with its trans-Saharan caravan trade. The
opening of the sea routes between Europe and the East Indies stimulated
marketing channels for sugar and other tropical goods. Today the trend in
marketing food and other commodities is such that most of the preparation is
handled in bulk by specialized agencies. A growing proportion of the food
consumers purchase today is ready to eat or has only to be heated.

29
 What this means in practical terms is that many foodstuffs, as well as
other products, pass through numerous channels before being sold at
countless consumer outlets. They may even be marketed all over the world.
The product itself most often determines the places for and methods of
distribution. Today, the "rule-of-thumb," or normal method, is that goods go
from producers to intermediaries before they get to us.
To the merchant, whether a wholesaler or a retailer, the decision as to
what goods to select for resale is the key element of merchandising. To the
supplier of these goods, finding the best channels of distribution is a key
problem. Marketers must decide what methods are best for distributing their
particular products. They may sell directly to customers, to the customers
through sales agents, to jobbers, directly to retailers, or to retailers through
sales representatives. If they decide to sell to the ultimate consumer through
wholesalers who, in turn, sell to retailers, they may also choose intermediaries
such as brokers or manufacturers' agents. The producers of industrial goods
face similar decisions. Larger firms frequently use their own sales force
working out of the main offices or branch offices located throughout the sales
territory.
Distribution systems develop in such a way as to match the available
supplies to the consumers' demands. Just as the supplies or goods themselves
differ in type, quantity, and quality, so do consumer demands. Variations may
occur according to season, climate, local customs, fashion, or state of the
economy. Distributors must adapt the flow of their supplies to such variations.
Distribution channels are an integral part of a complex system that has
evolved from cultural and social patterns in order to facilitate exchange
transactions. They are governed not only by economic and social restraints,
but frequently by legal and political ones as well. Thus, the interaction of the
component parts of the marketing mix is considered in selecting channels.
Policies are formulated not only as to the types of intermediaries, but
also as to their numbers. At one extreme is the policy of exclusive
distribution, where one wholesale or retail intermediary is the sole outlet for
the product or service in a given territory. Piano manufacturers typically issue
franchises to one dealer in a specific region. At the other extreme, ball-point
pen manufacturers use a policy of extensive distribution for the maximum
number of outlets. Between these extremes are manufacturers who are
variously selective in their channel choices While the entire complex of
getting products to users may be complicated for some products or geographic
areas, there are fundamentally just three categories of channels: wholesalers,
retailers, and agents who may supplement or benefit the other two.
Industrial marketing channels feature a large proportion of raw
materials, semi-finished products, and component parts. Consumer channels
sell finished products; service is usually more important to the industrial
product, so sellers frequently maintain more direct channels to those users
than to the household consumer. There are three types of agents employed in
marketing channels:
30
 1. Manufacturers' agents may work for several different manufacturers
and sell part or all of the producers' product line within a sales territory. These
agents usually have no authority to set prices, but may stock items in their
own warehouses. They generally work for small firms with no sales staff, for
firms carrying products unrelated to their normal line, or for firms entering a
new geographic market.
2. Brokers are essentially used to sell food products. They call on
grocery wholesalers for the manufacturers who are their clients and help
them make inroads into broader markets.
3. Selling agents have the authority to negotiate prices and usually work
without territorial limits. They represent the entire line of a manufacturer and
may render financial assistance to their principals. This type of agent sells
products like textiles, coal, lumber, metals, and clothing.
The first decision in determining channels of distribution is the form it
should take. Should a manufacturer of skis sell through retail stores, by direct
mail, or both? If retail stores are chosen, what level or type of store: specialty
shops, department stores, discount houses, sporting goods stores, or a
combination of these? Even within these types, questions of reliable or
prestigious reputations and sufficient financial standing may enter into the
decisions. Regional considerations, of course, play a role as well. Skis will
sell better in regions near the slopes than in those far away. Other
considerations for specific products might include taste characteristics of the
product, proximity to associated types of goods and services.
These are the major types of retailing found, in one form or another,
around the world:
Specialty stores usually sell a complete assortment of one line, or a
limited number of closely related lines, of merchandise. Ranging from
jewelry, books, and home furnishings to ice cream, baked goods, and
electrical appliances, they can usually fulfill any demand for their type of
product.
Department stores, because of the many lines of goods they carry, are
actually consolidations of many specialty shops under one roof.

31
 Mail order houses are large operations selling a great range of
merchandise directly to consumers by mail, without a personal sales force.
They are practical where catalog printing, parcel post, and freight services are
reliable and economical.
Chain stores are a group of stores under the same management. These
mass distribution organizations save money for themselves and the consumer
by buying and selling in large quantities. The major types of chains specialize
in groceries, drugs, auto supplies, and clothing. In some product areas, they
dominate the market; in Canada, five chain supermarkets sell 40 percent of all
the food in the country.
Consumers' cooperatives, owned and operated by local groups of
farmers or other consumers, are also called "co-ops”. They are popular in
rural areas, marketing such items as groceries, animal food, gasoline, and
food preparation services. Their chief attraction to consumers is the
patronage dividend, based on volume of purchases over a given period.
Direct retailing, or house-to-house selling, makes up a large part of the
retail business in certain products, notably household items and makeup.
Usually the sales representative carries a small stock or shows samples, takes
orders, and makes deliveries later. The overhead is small, and the consumer
has the convenience of home shopping.
Vending machines sell many types of small-sized, low-cost, popular-
demand, standard-quality goods. Candy, cigarettes, soft drinks, and books are
vended in high-traffic areas.
For the most part, wholesalers buy from manufacturers and suppliers
and resell to retailers. Usually, they extend credit and make deliveries. They
may carry specialized or diverse lines of products. Merchant wholesalers
maintain warehouses, so the manufacturer does not need extensive storage

32
facilities. In addition to maintaining a sales force, they are able to regroup
different types of goods into acceptable lots and screen the goods presented
by the manufacturers. Cash-and-carry wholesalers require customers to
transport their own goods and to pay for them in cash. Another type of
wholesaler is the drop shipper, who never takes possession of merchandise,
but merely takes orders which the producer or supplier fills directly to the
customer.
Manufacturers' branch offices also function as wholesalers. They are
able to sell to other wholesalers, to retailers, or to final industrial or household
consumers. Some have a limited geographic range or sell to a few large
customers. They operate entirely from the factory or central office.

Comprehension

Tick the correct answer: A, B or C for 1-5 below

1. What is the trend in marketing commodities today?
A. The commodities are marketed all over the world by producers
themselves;
B. The goods are marketed through intermediaries;
C. The products are sold directly by manufacturers through numerous
consumer outlets.

2. The policy of extensive distribution means:

A. Using a sole outlet in a given territory;
B. The entire complex of getting products to users;
C. Selling product in a maximum number of outlets.

3. A drop-shipper is:
A. An intermediary who doesn’t invest in goods;
B. A wholesaler who buys merchandise;
C. A company who ship the goods.

4. A house-to-house selling is a kind of:

A. Wholesale business;
B. Business-to-business selling;
C. Retail business.

5. To the supplier the main problem to be solved is:

A. What goods to select for resale;
B. To find the best channels of distribution;
C. To supply the market by all means.

33
 Vocabulary Practice

Exercise 1

Find English equivalents in the text:

Cуть, склад, закупка, каналы сбыта, морские пути, обрабатывать в
больших объемах, поставщик, конечный потребитель, неотъемлемая
часть, ограничение, крайность, полуфабрикат, полномочие, оказывать
финансовую помощь, близость, специализированные магазины, товары –
почтой, сеть магазинов, прямые продажи, накладные расходы, торговый
автомат.

Exercise 2

Fill in the blanks with one of the words below. Change the form of
the words where necessary.

a)price, b)advertising, c)decisions , d)promotion, e)marketing mix,

f)channels of distribution, g)place, h)warehousing, i)purchase, j)wholesalers.

The_____1____ is often summarized as the so called four Ps: product,

price, place,___2____; what to sell, to whom, where, and with what support.
People and organizations make___3______ as to how, when, and to whom it
is to be sold: for example on its design, price and ___4_____ . The
____5_____ that customers pay for products influences the product’s image
and the likelihood of ___6______. Promotion programs, designed to persuade
the customers to buy the product, include personal selling,____7____,
publicity, and sales promotion.___8_____ refers to where the product is made
available to market members. It covers two areas: channels of distribution
such as ____9_____ or retailers and physical distribution such as
transportation, ____10______and inventory control facilities.

Grammar Revision: the Gerund

The Gerund (verb + ing ) is a non-finite form of the verb that combines
nominal and verbal properties.
Having nominal characteristics, the gerund can perform the function of
subject, object, and predicative. The verbal characteristics of the gerund
include tense and voice distinctions. It can be rendered into Russian either by
noun or by verb. For more info see § 5 of the Grammar Reference.

34
 Exercise 3

Explain the functions of the gerund in the following sentences:

1. Each producer accepts major responsibility for advertising, finding
customers, and setting a price.
2. Before being sold at countless consumer outlets many goods pass
through numerous channels.
3. Finding the best channels of distribution is a key problem.
4. This job involves analyzing our sales figures.
5. The essential job of a marketer is looking for target customers.
6. The problem of selecting channels is considered in relation to the
interaction of the components of the marketing mix.

Exercise 4

Use either the Gerund or the Infinitive in the following sentences:

1. Vending machines are good for ( to sell) small inexpensive standard
quality items.
2. The warehouses need (to attend to) no doubt.
3. The chain stores you are talking about are not worth (to buy).
4. They launched the product without (to do) the necessary research.
5. It’s no use (to advertise) these wares: their life cycle is coming to
the end.
6. The clients threatened (to go) to a different company.
7. Brokers help manufacturers (to make) inroads into broader markets.
8. Their company had difficulty in (to find) a ship dropper.
9. They refused (to reduce) the share of semi-finished goods in their
export.

Exercise 5

Translate from Russian into English making use of the vocabulary of

the lesson:
1. Существует пять основных каналов сбыта: от производителя к
потребителю (от двери до двери); через оптовика и розничного торговца
или при помощи дистрибьютера; а также путем рассылки рекламы по
почте.
2. Накладные расходы - это оперативные издержки ведения
бизнеса, такие как: арендная плата, налоги, амортизация, электричество
и др.
3. Совокупность затрат на маркетинг включает в себя стоимость
всей программы стимулирования продаж.
4. Магазины, продающие товары со скидкой пользуются большой
популярностью.

35
 5. Услугами брокеров обычно пользуются для продажи продуктов
питания.
6. Франшиза – это право продавать товар или вести бизнес по
установленному образцу на определенной торговой территории.
7. Ваша фирма пользуется адресной рекламой?
8. Торговой точкой называется любой рынок, где покупатель
может приобрести товар.
9. Если Вы не любите ходить по магазинам, то Вы можете
воспользоваться магазинами, продающими товары почтой.
10. Для оптовика или розничного торговца ключевым моментом
торговли является решение, какой товар выбрать для перепродажи.

Vocabulary Test

Match the words in the left column to their definitions in the right
one
1) Marketing mix A. Any specific market where consumers buy goods,
such as a store, a merchant, an agency, or an open-air
stall
2) Franchise B. The structure of internal and external agents,
dealers, and brokers, wholesale and retail, through
which a commodity product or service is marketed
3) Direct mail C. Those people who represent a company and sell to
retailers
4) Overhead D. An agent who buys or sells for someone else, on a
commission or fee basis, without owning the goods.
5) Channels of E. A defined region in which a representative or
distribution agent can sell a product or service
6) Patronage dividend F. The value of all of a firm's input into a program for
stimulating sales: products, services, prices, position,
advertising, sales promotion, direct selling, and all the
channels of distribution.
7) Sales territory G. The permission granted by a manufacturer to a
distributor or retailer to sell its products, usually
confined to a specific sales territory.
8) Consumer outlet H. The operating expenses of running a business,
including rent, taxes, insurance, electricity, and
depreciation but excluding labor and materials.
9) Discount house I. The advertising matter mailed to large numbers of
potential customers.
10) Sales J. A retail store that cuts prices for customers, who in
representative turn pay cash and take care of any servicing or repair
problems themselves.
11) Direct mail K. A sum of money paid to shareholders or members
of a cooperative enterprise out of its earnings.

36
 Discussion

1. Name some of the earliest large marketing centers of times past.

2. Use your imagination to briefly trace the route of a bolt of cotton
print from the textile factory to your closet.
3. What are the major methods or channels of distribution open to
producers.
4. What is the most important element of merchandising to the
merchant? To the supplier?
5. How might variations in consumer demands affect distribution of
goods?
6. Why must the marketing mix be considered in the process of
selecting channels of distribution?
7. What is the difference between the policy of exclusive distribution
and the policy of extensive distribution; give examples.
8. What is the job of a manufacturer's agent? What types of businesses
do these agents represent?
9. In what areas do brokers usually work? How do they do their jobs?
10. How is a selling agent different from a manufacturer's agent in
terms of price negotiations? In what areas are selling agents prominent?
11. What are some considerations in determining channels of
distribution?
12. Why are certain establishments known as specialty stores?
13. How does a department store resemble a specialty shop?
14. How do mail order houses operate? Where are they practical?
15. What are co-ops? What types of products do they generally
merchandise?
16. Are there any advantages of house-to-house, or door-to-door
selling?
17. Where are vending machines found? What do they sell?
18. What is the difference between a merchant wholesaler and a drop
shipper? What are some ways in which the former helps manufacturers?
19. What are cash-and-carry wholesalers?

Writing a composition

Describe the roles of the various types of agents employed in marketing

channels. Refer to the chart diagramming the flow of goods to consumers, and
point out differences in the channels of distribution. What use might
munitions manufacturers make of agents?

37
 Vocabulary

channels of distribution каналы сбыта

locale место действия
to set a price устанавливать цену
spread распространение; протяжение;
разница между себестоимостью
и продажной ценой
to handle обрабатывать
in bulk большими объемами, в
большом количестве
rule-of-thumb приближенный подсчет,
кустарный способ,
основное правило
ultimate конечный
extreme крайность
extensive обширный, большой;
экстенсивный
supplement дополнять
to render assistance оказывать помощь
proximity близость
specialty специализированный
mail order houses магазины, продающие товары
почтой
chain stores сеть однотипных магазинов
vending machines торговый автомат
munitions военное снаряжение

38
 UNIT FIVE. PRICING

Special Terms
Equilibrium равновесие
Price control контроль за ценами
Oligopoly олигополия
Monopoly монополия
Maximization of profits максимизация прибыли
Price fixing фиксирование цены
Target return запланированная прибыль
Elastic эластичный
Boycott бойкот
Fixed cost фиксированные издержки
Break-even point точка самоокупаемости
Mark-up наценка
Turnover товарооборот
Loss leader приманка (товар, продающийся
по заниженной цене, в убыток)
Price war ценовая война

Working on the text

Read and translate the text

Pricing

What is given in exchange for a product or service is its price. In the

process of this exchange, the seller or producer and the buyer or user agree on
the price. The meeting of those who supply or sell with those who demand or
buy is how market prices are determined.
In any particular region at a particular time, similar goods tend to have
the same market price because the costs of producing and marketing them
tend to be similar. Even before goods reach the market, buyers and sellers are
generally not too far apart in their ideas of what prices should be. They are
aware of the range of prices in the past and have a notion of what they will be
in the future, based on producers’ costs sad consumers’ needs. This awareness
produces a "normal price" with little variation. This average norm is the price
toward which market prices theoretically move.
According to the law of supply and demand, formulated by the British
economist Thomas R. Malthus, for each commodity some price must exist
that will cause its supply and demand to be equal. In other words, the
willingness of buyers to buy and of sellers to sell generally reveals some price
at which the two activities intersect to create the equilibrium, or normal price.
If sellers cannot find buyers, they will cut prices. Buyers who are looking for
sellers will offer to pay higher prices. Thus any variation from the equilibrium
39
price seems to automatically correct itself by market forces which push
toward the norm. At least, this is the theory. Speculation and price controls
are inhibiting factors to this natural process. When goods are considered in
the aggregate, with the complex issues of unemployment, the international
balance of trade, and national priorities, the equilibrium will still be reached,
but in an altered, controlled form.
The effect of supply on price depends on the number and size of the
suppliers. When there are many suppliers of a standard product, the amount
offered by any one of them has little or no effect on the market price. This
condition allows for a stable, competitive market. The price is kept stable—
and usually low—by the availability of the product. In an abnormal
atmosphere, such as war or famine, prices may vary widely in spite of the
number of producers. A less-than-perfect competitive market occurs when the
number of producers is so small that the output of any one of them can cause
a change in price. This competition, or oligopoly, allows producers to set
prices higher than they could in a more competitive market.
The producers must still contend with some competition, so prices
cannot be too high unless there is a unique feature or quality.
When a few large producers furnish the entire supply of a given product
monopoly exists. If they establish a fixed price among themselves, they can
be fined or, in extreme cases, closed down. Even though price fixing is
illegal, it is relatively easy to do and, therefore, quite common. Where a single
producer has the entire market, the price of a product can be high. If it goes
too high, however, the noticeably large profit will encourage others to enter
the market. Monopolists often set different prices for markets separated by
distance and in those markets which are least responsive to price change. This
increases profitability. However, the Robinson-Patman Act of 1936 makes
any price discrimination illegal, that is selling the same goods to different
buyers at different prices. There must be "like price for like quality and
quantity." The only differences permitted must be based on cost differences or
the need to meet competition.
In some cases, producers or distributors of certain goods want to protect
the retail sales of their products against price cutting. They set a price below
which their product cannot be sold, by printing the price on the package or
announcing the price through advertising. Usually these measures involve
well-known brands or trademarked goods. These price maintenance
procedures are regulated by law in most countries.
In the strict theory of competition, price policy has no role and
individuals do not put prices on their products. Prices are assumed to be
determined by that automatic mechanism which adjusts prices to bring supply
and demand into equilibrium. Price policy is therefore associated with
imperfect competition since marketing-conscious producers will set prices at
the lowest unit cost of the most efficient production method to insure the
widest market.

40
 Price, along with product, place, and promotion, are the variables that
the marketing manager controls. Pricing is extremely important since it so
directly affects an organization's sales and profits. Naturally, profit objectives
will guide pricing decisions. The marketing manager has to decide whether to
maximize profits or establish a target return. A particular target might be a
certain percentage return on sales or a certain percentage return on investment
or, for a small family operation, the return might be a fixed dollar amount of
profit to cover overhead and living expenses. With any objective, the time
factor is crucial. What is an appropriate objective for the short-term may not
be for the long-term and vice-versa.
Marketers are concerned with all the factors affecting price, in order to
keep their products from faring poorly in a widely variable atmosphere. Even
in service areas such as passenger fares and freight rates, where detailed
prices are printed and distributed, influences may cause fluctuation. The
marketing manager knows that the costs of the separate elements of the
marketing mix can be recovered by proper pricing. The cost of the product
itself—the promotion and selling associated with it, the distribution expenses,
and profit — are all directly related to price. Thus price knits together the
elements of the marketing mix and pays for their respective contributions. The
marketing manager must analyze and reconcile the various elements of those
variables which influence price, and must then decide on an optimal price
policy.
The most fundamental part of any marketing analysis is the recognition
of the competitive structure of the industry. Where there are many
competitors offering the same type of product, price competition will be
active. When there are great numbers of similar offerings, products tend to
lose their individuality. Then differentiation becomes difficult, and marketers
have little discretionary power to influence prices. It is in this circumstance
that marketers and merchants alike look to sales techniques. Disposing of
goods at reduced prices draws attention to the specific brand, in the hope that
customers will continue to buy when prices return to "normal."
Another key input variable in making pricing decisions is industry
demand. If the average price of a product is reduced, will there be large,
modest, or no expansion of demand? When demand increases significantly as
prices are lowered, the demand is said to be highly elastic, if demand is little
affected by price, it is said to be inelastic. This price sensitivity or
insensitivity is influenced by various factors, making precise forecasting of
the impact of price changes difficult Occasionally, consumer response occurs
after a time lag, so that elasticity of demand for a product may be greater over
a longer time period.
Certain products are important to consumers because they are
necessities- i e. rice to the Japanese cook or gas to the taxi driver Where this
is true, the industry demand will be insensitive; as prices rise, consumers will
be forced to pay more. On the other hand, there are many areas which are not
so important, such as an extended vacation at the beach or a night at the
41
opera. These less important items may be highly sensitive to price. There have
been rare cases where consumers boycotted items in such numbers that they
forced prices down, no matter why they had risen originally.
Other factors affect industry demand and elasticity. Some products
have a derived demand, such as the need for tourist hotels only where there
are sufficient numbers of tourists to warrant them. If the cost of zinc rises,
industries which use it may substitute a plastic substance. Whenever
substitute products are available, there is danger of losing customers if prices
rise too much. The income level of the current customer is also a factor.
Private planes are affordable only by the very rich, so a price rise or dip may
not affect sales as much as a similar rise or dip in the cost of a color television
set. Finally, there is the perceived saturation of need for a product. If
Argentinians are already eating all the beef they want, it is unlikely that the
beef industry will stimulate demand further by lowering the price. On the
other hand, the demand for coffee in many countries seems far from satiated,
and price reductions would reasonably accelerate sales.
Cost of production is one of the several inputs into the pricing decision.
Marketers separate these costs into those which are fixed and those which are
variable. The data is then used to compute various break-even points at
various price assumptions. Break-even calculations provide a measure of the
minimum sales required to avoid losing money. The same type of projection
may be used to compute projected earnings at given sales levels. A particular
level of profit may be built into the calculation as another fixed cost to be
recovered.
Average-cost pricing, which consists or adding a "reasonable" mark-up
to the average cost of an item, is typical in business. For the producer, costs
do drop steadily as the quantity produced increases.
Therefore, the "average" cost, and subsequently the price, may vary
with the quantity purchased. This is why large scale production and
distribution are potentially more profitable.
Retailers mark-up their prices enough to cover their buying prices and
overhead and make a profit at the same time, but not so high as to prevent
sales and a turnover of merchandise. In an effort to keep goods moving and
insure profits, retailers must continually decide when to cut prices, what to
discount, and which items to market as loss leaders. Ultimately, to stay in
business, profits must keep pace with sales.
Finally, marketing managers must take into account the goals,
positions, and resources of their own firms. Large companies with large
financial resources may absorb short-term losses in order to ultimately gain a
secure position, or even leadership, in the market. Smaller firms may decide
that the best pricing strategy is to stay close to the big competition, hoping not
to suffer a price war retaliation. Whether the pricing policies involve active or
passive roles, short-range tactics or long-range strategy, they must ultimately
become part of the total marketing mix.

42
 How can the best prices for a company's products be established? There
is no current technique available for setting prices at an optimal level.
Mathematically, it would be possible to choose the best price for a single
product if all the variable factors were known. But that wishful thought is a
contradiction in terms: variable factors, by definition, vary. The cost of raw
materials and labor, consumer demand, plus other factors are all dynamic,
ever-changing, and unstable. Pricing is not a one time decision. Changes in
the competitive environment, changes in a product's cost structure, the
pressures of inflation—these and many other factors demand continuing
attention to pricing.

Comprehension

Tick the correct answer: A, B or C for 1-6 below

1. A stable and competitive market exists when:
A. There are many suppliers of a standard product;
B. The number of producers is small;
C. There is only one producer who supplies the entire market.

2. The equilibrium price is created by:

A. The inability of sellers to find buyers;
B. A large number of potential buyers;
C. The supply that corresponds to the demand.

3. Why is price discrimination illegal?

A. It sets like price for like quality and quantity;
B. It makes people pay different price for the same product;
C. Because it wants to protect the price from reduction.

4. When do marketers start looking for new selling techniques?

A. When the demand is elastic;
B. When products lose their individuality and differentiation becomes
difficult;
C. When they dispose of the goods at reduced prices.

5. When is the demand said to be highly elastic?

A. When it fails to respond to price changes;
B. When demand decreases as prices are raised;
C. When consumers are forced to pay more.

6. Break-even point is calculated to show:

A. The minimum profit required not to lose money;
B. The minimum costs of production;
C. The maximum costs of production.

43
 Vocabulary Practice

Exercise 1

Find English equivalents in the text:

Спрос и предложение, диапазон цен, пересекаться, рассматривать
в совокупности, в крайнем случае, реагирующий на изменение цены,
процедуры поддержания цен, ценовая политика, привести в равновесие,
вызывать колебания, с другой стороны, насыщение потребности,
средняя стоимость.

Exercise 2

Fill in the blanks with one of the words below. Change the form of
the words where necessary.

a)Mark-up; b) inelastic; c) boycott; d) price maintenance; e) breaks even;

f)discount; g)marketing mix; h)loss leader; i)cash cow; j)sales revenues.

1. Technically, a ___1_____ is a profitable product or business with

high market share in a low-growth market, but it is also used to mean any
profitable product or business generating a steady flow of _____2_____. 2.
Price policy is usually associated with ___3_____ competition. 3. Some
producers protect their goods from undercutting prices by
____4_____procedures. 4. All of the contributions to the ____5_____ can be
recovered by proper pricing. 5.A ____6_____ is a product sold unprofitably
in order to attract customers who will then, it is hoped, be persuaded to buy
profitable ones. 6. A retailer who buys an item for $10 and sells it for $15 has
a 33% ____7___.7. A ___8____ is frequently given to quantity purchasers. 8.
A firm that ____9___ neither earns nor loses money. 9. One of the purposes
of a __10______ is to force prices down.

Grammar Revision: Complex Subject

Complex Subject is a construction in which the infinitive is in predicate

relation to a noun in the common case or a pronoun in the nominative case. It
is usually used after a limited number of words denoting sense perception,
mental activity, and some others in the Passive Voice. For more info see §6 of
the Grammar Reference.

44
 Exercise 3

Find the Complex Subject in the following sentences and translate

them into Russian:
1. Prices are assumed to be determined by that automatic mechanism
which adjusts prices to bring demand and supply into equilibrium.
2. The demand is said to be highly elastic.
3. They are sure to start price war.
4. Any variation from equilibrium price seems to automatically correct
itself.
5. They are reported to be priced out of the market.
6. The idea of a good public image seems to be growing in importance,
especially for large companies.

Exercise 4

Rewrite the sentences using the Complex Subject:

1. They are certain, that he will enter their market.
2. It seems to us that the goods were not in proper condition.
3. We expect that their company will sign the contract tomorrow.
4. The manager believes that a new price list has already been made.
5. It turned out that some boxes were damaged.
6. They say the demand for this merchandise is inelastic.

Exercise 5

Translate from Russian into English making use of the vocabulary of

the lesson:
1. Монополия существует, когда несколько крупных
производителей полностью обеспечивают рынок данным товаром.
2. Цены регулируются автоматически и приводят спрос и
предложение в равновесие.
3. Во время войны или голода цены могут сильно варьироваться,
несмотря на число производителей.
4. Необходимо рассматривать все условия в совокупности.
5. Если у покупателя есть желание купить какой-то товар, то он
готов заплатить любую цену.
6. Точка самоокупаемости – это такая точка, на которой после
уплаты всех налогов нет ни прибыли, ни убытков.
7. Маркетологам необходимо решить максимизировать ли
прибыль или установить запланированный доход.
8. Если несколько производителей устанавливают между собой
фиксированные цены, их могут оштрафовать или даже закрыть, т.к. это
считается незаконным.

45
 9. На этом рынке существует ощутимое насыщение потребности в
данном товаре.
10. Розничные торговцы делают наценку, чтобы покрыть
накладные расходы и получить прибыль.

Vocabulary test

Match the words in the left column to their definitions in the right
one
1. Maximization A. The state of balance due to the equal weight of
of profits opposing forces or influences.
2. Target return B. The establishment of prices at a determined level
by a government or by mutual consent among
producers products.
3. Monopoly C. Costs such as labor and supplies, change in direct
proportion to changes in output and demand.
4. Elastic D. The market condition that exists when there are
few sellers. This creates a high degree of
interdependence among the existing firms.
5. Break-even E. The exclusive control of a commodity or service in
point a particular market, or at least a control broad enough
so that price manipulation is possible.
6. Equilibrium F. The amount added to the costs of goods by a seller
when figuring the selling price.
7. Boycott G. A pricing objective which seeks to make as much
profit as possible; to charge prices as high as the
market will bear.
8. Price fixing: H. An article sold at cost or at a loss for the purpose
of attracting trade.
9. Price control I. A pricing objective which sets a specific financial
yield goal.
10. Loss leader J. Failure to respond to change
11. Fixed cost K. Responsive to change, such as an increase in
demand as a result of a decrease in price
12. Cash cow L. Competitors establishing the same prices at above
market prices
13. Mark-up M. To abstain from buying, using, or dealing with, as
a means of coercion or protest.
14. Oligopoly N. The intensive competition, particularly among
retailers in
which prices are repeatedly cut to undersell
competitors or force them out of business

46
 15. Inelastic O. In business, the point at which, after expenses are
paid, there is neither profit nor loss
16. Variable costs P. The rate at which goods are sold and restocked
17. Price war Q. A cost which remains relatively unaffected by
changes in the quantity or volume of sales, such as
rent and insurance
18. Turnover S. A profitable product or business
Discussion
1. Define price. How is it determined?
2. Why do similar goods tend to have similar prices at a given time and
place?
3. What is the Malthusian theory of supply and demand as it relates to
price?
4. Why do variations from the equilibrium tend to automatically correct
themselves? What are some possible inhibiting factors to this theory?
5. Why will a standard product in a competitive market situation usually
maintain a stable price?
6. In an oligopolistic situation, how can prices be changed or controlled?
7. What is the Robinson-Patman Act?
8. What are the variables the marketing manager controls?
9. How does the marketing mix figure into pricing policy decisions?
10. Generally, how is the optimal price of a product or service set?
11. In what situation is price competition most fierce?
12. What does the consideration of industry demand involve? Why do
producers look to potential elasticity of demand?
13. How does consumer perception of a product's importance affect its
demand and price sensitivity?
14. How does the income level of a market reflect its probable reaction to
price change in a certain product area?
15. Why are break-even calculations used by pricing policymakers? How
are they used?
16. Why is large scale production and distribution potentially more
profitable than small scale?
17. Explain why marketing managers must take into account the goals and
resources of their own organization.
Briefly analyze and describe what you think might result from the
following situations.
1. The price of a luxury yacht rises 5 percent.
2. Severe weather disrupts half the world's tea production.
3. The cost of gasoline doubles in one month.
4. An optician opens a shop next door to an eye clinic.
5. A large wealthy firm cuts its prices so low that smaller firms cannot
meet them.

47
 Vocabulary

1. Supply предложение
2. demand спрос
3. to be aware знать, осознавать, сознавать
awareness осознание; сознание
4. average средний
5. inhibiting сдерживающий
inhibition сдерживание, торможение
6. in the aggregate в совокупности
7. famine голод
8. contend (with) соперничать
9. assume предполагать, принимать на себя;
притворяться
assumption предположение; присвоение;
принятие на себя
10. furnish снабжать
11. to fare быть, существовать, случаться
12. to reconcile примирять, улаживать
13. derived производный
14. to warrant гарантировать
15. saturation насыщение
16. satiated насыщенный, пресыщенный
17. to keep pace with идти в ногу
18. retaliation возмездие, отплата, воздаяние

48
 UNIT SIX. COMMUNICATION: PROMOTION & SELLING

Special Terms
Promotion продвижение
Hawk торговать на улице, в разнос
Advertising рекламирование
Media средства массовой информации
Slogan лозунг, девиз
Hype навязчиво рекламировать товар
Spot рекламная заставка
Testimonial рекомендация, свидетельство
Display витрина; расклад товара
Publicity известность; реклама
Public relations связи с общественностью
Sample образец
Premium премия
Custom-made сделанный на заказ
Detail sales презентация
Bribe взятка
kickback «откат» ( взятка в виде доли от
предполагаемой прибыли)
Cold call: попытка продать товар или услугу
незаинтересованному покупателю
Lead потенциальный покупатель
Bid подробное предложение
Bottom line итог

Working on the text

Read and translate the text

Communication: Promotion and Selling

If marketers are to persuade consumers to buy their products, there

must be communication. It may take the form of the simple announcement of
what is on the market and how it may be obtained, it may announce new
products, it may describe the new features, uses, or improvements of familiar
goods. In many cases, the communicators shape tastes, habits, and customs.
Since the goal of this communication is to stimulate sales, marketers carefully
analyze the means, methods, and information to be disseminated. At which
consumer groups should the communication be directed? What kinds of
information do these groups seek? What are the specific objectives of the
communication? How much will it cost, and how large should the overall
communications budget be? How much of the communications burden should

49
be assumed by the manufacturer and how much by the channels of
distribution?
Promotion, like pricing mentioned in the previous chapter, is one of the
strategic decision areas of marketing. Marketing managers must blend the
methods of 1) face-to-face personal selling, 2) mass selling to large numbers
of customers at the same time, and 3) short-term sales promotion, in telling
the target market about the "right" product. Prehistoric traders must have
"marketed" their goods by announcing publicly that they had surplus skins or
food to trade. Throughout history, shouters or "criers" have walked through
villages, hawking their wares. Pictorial signs, or outdoor advertising, have
been used at least since the Babylonian era, five thousand years ago. The first
newspaper ad appeared in Germany in 1525, announcing medicines for sale.
The first known paid ad in an American newspaper appeared in the Boston
News Letter on May 8, 1704.
During the 19th century, a new type of marketing intermediary has
evolved: the advertising agent. The first advertising agency was founded in
Philadelphia, in the United States, in 1841. These specialists have become
invaluable to manufacturers for preparing and placing ads in the media. The
agencies earn most of their income from commissions; their standard rate is
15 percent of the cost billed by the medium to the advertiser.
Whether they are on film, in pictures, in print, or spoken, all
advertisements have some features in common. To be effective, they must
appeal to the consumers' self-interests, arouse their curiosity, and offer them
news. They frequently sell the benefits of products instead of the products
themselves. An ad does not sell encyclopedias, but "knowledge", or "your
child's future"; not a house in the mountains, but "the good life"; not fire
insurance, but "protection for your family." A good ad attracts attention, stirs
up interest, creates desire, assures belief, and impels action.
Most advertising is for branded products. The name, slogan, or
trademark is repeated again and again until it becomes part of our awareness
and even of our vocabulary. Some advertisers believe that the more a product
is hyped, the more we will remember it and the more of it we will buy. Many
firms also advertise so as to establish a good reputation with the public. The
idea here is that if the public respects the institution or company, it will buy
its products. Lately, oil companies have tried to improve their image by
advertising the good they are doing for their community or nation.
Printed advertising may be found in magazines, newspapers, direct
mail, and catalogs. Handbills or fliers are often distributed in public places or
door-to-door in selected neighborhoods. Highway and street billboards and
cards in public conveyances reach commuters and travelers. Specific markets
can be reached by advertising in selected magazines and journals aimed at
special-interest readers. Specialized products and services may be advertised
in the so-called trade magazines which are editorially devoted to the interests
of particular trades, professions, and businesses. When a product or service is
infrequently used by consumers, a telephone directory ad can be highly
50
effective. The success of direct mail campaigns depends largely on the quality
of the mailing list. These lists are rented or purchased from companies which
compile them according to occupation, age, interest, income, or
neighborhood.
Television ads or commercials are the most expensive because they
reach the most people. Ranging in length from a few seconds to a full minute,
spots use live action, animation, or stop-motion techniques. In many
countries, these short films are also shown in most houses before the main
feature. Radio ads cost less than TV ads. Their other advantage is that people
can be doing something else—like driving or ironing—while listening; their
disadvantage is that words have less impact than pictures. Radio commercials
include straight announcements, short dramatized stories, musical ads, and
testimonials.
Industrial films are used at large gatherings of prospective buyers, such
as conventions or trade shows. They are especially valuable for items like
heavy equipment, which cannot be easily displayed. National and
international trade shows are excellent opportunities for identifying new
product ideas and marketing trends. Displays at these shows are designed to
attract customers by pleasing the eye. The display concept is also widely used
in store windows to attract passing shoppers. Frequently, manufacturers or
wholesalers will supply retailers with window-display materials. Counter,
shelf, or floor displays at the point of sale encourage shoppers to buy on the
spur of the moment—to buy on impulse.
Packaging is another advertising tool. A popular example is the cereal
box designed around cut-outs to attract children. An important factor for items
sold through self-service stores is the package designed for point-of-purchase
eye appeal.
At one time, the subject of packaging was treated as an incidental side
issue of product policy and design. In recent years, however, packaging has
become an important factor in the marketing success of a product. In addition
to advertising the product, packages have many purposes and goals. They
should protect goods from spoilage or contamination. They should be shaped
to facilitate dispensing, handling, storage, and transportation. Containers are
often designed to make theft, adulteration, or substitution difficult, and to
ensure cleanliness.
In addition to advertising, marketers always hope to get favorable
publicity for their firms or products. Ideally, people will make positive
comments to each other in their everyday conversations and thus publicize a
service or product by word-of-mouth. Public relations, too, plays a role in
bringing firms and their products to the attention of the customer. Some large
firms sponsor cultural and humanitarian activities, just as small merchants
sponsor local civic events. The idea of a good public image seems to be
growing in importance, especially for large companies. By putting forth a
positive public image, the potential for greater realization of profits exists.

51
 The concept of sales promotion covers various activities which link
advertising and publicity with selling. Useful novelties, such as calendars,
match books, and key rings may be given to customers to remind them of the
advertisers' names, services, and products. Other techniques include
distributing samples, giving premiums tied to consumer purchases, holding
contests to stimulate interest in a product, and conducting point-of-sale
demonstrations to help consumers select and use a product effectively.
Demonstrations are also important in dealing with retailers. Dealer or trade
promotion includes instructing retailers in effective means of selling products,
providing materials for window or counter displays, and keeping merchants
informed of promotional tactics and strategies.
Generally, advertising seems to be most effective for uncomplicated
items such as alcoholic beverages, soaps and detergents, non-prescription
medicines, cigarettes, cars, and cosmetics which are used by many different
kinds of consumers. The most effective advertising reaches for particular
market segments but it seldom tries to deal with the individual needs of
particular consumers Personal selling is more appropriate for technically
complex products—those available in a wide variety of styles and colors or
custom-made.
Keeping and managing a sales force is usually the most expensive per-
sale form of communication. For this reason, some industrial goods
manufacturers rely on catalog sales rather than on selling teams. Nevertheless,
personal sales activities are necessary in many product and geographic areas.
In the Middle East, for example, major British, French, Japanese, German,
and American manufacturers are competing for a share of the expanding
market. Sales promotions are built on a solid foundation of strong local
representation and regular tours by home office executives. This approach
recognizes that business in that part of the world is highly personalized,
relying more on cultivation of individual customers and government officials
than on media advertising and other sales techniques. The Japanese, in
particular, owe recent marketing gains to their prompt, effective, after-sales
services on vehicles and industrial products. The key here is the personal
touch.
Cultural patterns and customs may dictate that sales are to be
accompanied by certain non-business activities, such as a cup of coffee in
Turkey. Certain products demand conventions which are separate from actual
sales. In the dental supplies and pharmaceutical industries, for example,
manufacturers rely on missionary or detail sales representatives to stimulate
their products' sales. Some firms use bribes to make sales, although the
practice is unethical and usually illegal. One form of this corrupt activity is
the kickback, in which a portion of the sale price is given to the one who
influenced the sale.
Many salespeople earn a commission or percentage of money on the
amount they sell. In this way, their own energy and ingenuity can supplement
their incomes. Some salespeople use the cold call, while others rely on leads
52
from the kinds of promotional activities described earlier. Frequently, a lead
will come in the form of a request for a bid so that prices and services can be
compared by the prospective consumer. Salespeople often stay closely in
touch with their customers in order to service products and secure repeat
sales. Often, the seller-buyer relationship becomes social and personal.
Clearly, there is no formula, technique, method, or kind of material that
can guarantee sales. The bottom line measures the success or failure of
promotion and selling efforts.

Comprehension

Tick the correct answer: A, B or C for 1-5 below

1. When did advertising really start?
A. in 1525 in Germany;
B. in 1704 in America;
C. 5000 years ago.

2. For what goods or services an ad in a telephone directory could be

effective?
A. For the goods that are frequently used;
B. For those that are rarely used;
C. for any type of goods.

3. What is the purpose of distributing samples of a product?

A. to show the quality of a product;
B. because the product itself is not available;
C. to make people buy at least a sample.

4. What must all advertisement do if they are to be effective?

A. they must arouse consumers’ curiosity;
B. they must be nice and pleasant;
C. they must be aggressive.

5. Where are films especially valuable for promotion?

A. at large gatherings;
B. in store windows;
C. for heavy equipments that is difficult to show in operation.

Vocabulary Practice

Exercise 1

Find English equivalents in the text:

Простое объявление, формировать вкус, продвижение продаж,
наружная реклама, рекламное агентство, выставлять счет, вызывать
53
любопытство, листовки, рекламный щит, общественный транспорт,
постоянный пассажир, список адресов, мгновенно, несущественный,
фальсификация, подмена, спонсировать местные городские
мероприятия, проведение конкурсов, обеспечить повторные продажи.

Exercise 2

Fill in the blanks with one of the words below. Change the form of
the words where necessary.

a)Introducing, b)sales promotion, c)communication, d)advertising,

e)publicity, f)samples, g)trade shows, h)stimulate, i)opportunities.
_____1____is short-term non-paid, non-personal ___2______about products
and people in print or electronic media. Because it is presented in an editorial
format, readers tend to perceive it as more believable than____3____.
Significant opportunities for publicity involve portraying global firms as good
citizens in host countries, in___4_____ new products, and in anticipating and
countering criticism.
_____5____includes short-term, one-time incentives to distributors or
customers designed to reinforce other components of the promotion and
marketing mixes and ___6___ sales (coupons, contests,____7___ , games).
____8____, in particular, offer marketers many more___9_____ to achieve
promotional goals in foreign than in domestic markets.

Grammar Revision: the Participle

The Participle is a non-finite form of the verb that combines properties

of a noun, an adjective and an adverb. There are two participles in the
English language. Participle I (verb + ing) and Participle II (verb+ed or the
3d form of irregular verbs) for more info see §7 of the Grammar Reference.

Exercise 3

Find the Participle in the following sentences and determine its

function. Translate the sentences into Russian:
1. In the Middle East major German, French, Japanese, British and
American manufacturers are competing for a share of the expanding market.
2. Consumer credit, involving charge accounts and credit cards,
permits individuals to obtain goods for which they pay over a period of time.
3. Ranging in length from a few seconds to a full minute, spots use live
action, animation, or stop-motion techniques.
4. Throughout history shouters have walked through villages hawking
their wares.
5. They watched the commercial being shown on TV.

54
 6. We saw the workmen scraping off billboard advertisements across
the town.

Exercise 4

Open the brackets using the correct form of the Participle:

1. The goods (to produce) by your company are in great demand.
2. The taste (to shape) now is the result of our hyping.
3. (To reach) specific markets by advertising, the firm decided to start
a price war.
4. While (to make) positive comments on the product people publicize
it thus (to generate) favorable publicity.
5. We’ve never heard them (to sell) anything on credit.
6. The car (to buy) by my friend is being largely advertised now.
7. (To realize) what happened, they decided to change their strategy.

Exercise 5

Translate from Russian into English making use of the vocabulary of

the lesson:
1. Многие маркетологи полагают, что навязчивая реклама
помогает лучше запомнить название товара и побуждает потребителя
купить его.
2. Итоговые цифры финансового отчета показывают количество
прибыли и убытков.
3. Рекламные заставки, использующие мультипликацию, живое
действие или стоп-кадр обычно показывают перед основным
художественным фильмом.
4. Реклама, размещенная в общественном транспорте, направлена
на постоянных пассажиров данного маршрута.
5. В давние времена зазывалы ходили по деревням, громко
предлагая свой товар.
6. Чтобы реклама была эффективной она должна быть обращена к
интересам потребителя, вызывать его любопытство.
7. Рекламные листовки часто раздают в общественных местах; а
рекламные щиты на дорогах привлекают внимание путешествующих.
8. Помимо того, что упаковка является еще одним средством
рекламы, она должна предохранять товар от порчи и загрязнения.
9. Чтобы сделать кражу, фальсификацию и подмену
невозможными используются контейнеры.
10. Наиболее эффективна реклама алкогольных напитков,
стиральных порошков, мыла, косметики т.к. эти товары используются
разнообразными потребителями.

55
 11. Вы когда-нибудь давали взятку? – Не совсем взятку, а
вознаграждение, как часть дохода от сделки, на благоприятный исход
которой этот человек повлиял.
12. Потенциальный покупатель отличается от случайного тем, что
он проявил заинтересованность в вашем товаре.
13. Выслав нам образцы своих товаров, они ждут, что мы
непременно разместим у них свой заказ.
14. Известность приобретается путем упоминания о компании в
средствах массовой информации, а также посредством общения между
людьми.

Vocabulary Test

Match the words in the left column to their definitions in the right
one
1. Media A) Any communication for purposes of selling a
product or service, including advertising, personal
selling, and publicity.
2. Hype B) The end result; those figures appearing in a
company's financial statements which show the
amount of profit or loss.
3. Testimonial C) To peddle or offer for sale by calling aloud or
going from door to door
4. Spot D) A company employed to plan, design, place,
and supervise ads or ad campaigns
E) The practice of calling public attention to a
5. Publicity product or service by paid announcements, usually
in newspapers and magazines or on television or
radio.
6. Detail sales F) The aggregate of all mass communications:
newspapers, magazines, TV, radio, billboards,
direct mail, etc.
7. Bribe G) An attempt to sell a product or service to
someone who has shown no intent to buy
8. An advertising H) A brief catch-phrase or motto adopted for
agency advertising a product, service, or company.
9. Public relations I) A derogatory slang word meaning the overly
persistent promotion of a product.

56
 10. Cold call J) A brief announcement, usually a radio or
television advertisement or commercial during or
after a program.
11. Slogan K) A written or spoken declaration from an
individual certifying the value, excellence, or
qualities of a person, an organization, or a product
12. Premium L) Promotional presentation of drugs or medical
supplies.
13. Custom-made M) an expression of interest or intent from a
prospective buyer
14. Sample N) Designed to specification for an individual
customer
15. Bid O) Anything given or promised to induce someone
to act dishonestly or to influence behavior.
16. Bottom line P) An offer, usually including specific details of a
product or service, intended to secure a sale
17. Advertising Q) A portion of income given to a person who
secretly influenced a financial transaction.
18. Kickback R) An arrangement of merchandise designed to
induce sales; usually seen at trade conventions, in
store windows, and at point-of-purchase counters.
19. Hawk S) Public notice resulting from mention in the
media and verbal communication among people.
20. Lead T) The promotion of a good reputation with the
public
21. Promotion U) A specimen or part of a product used to show
the quality,
style, and nature of the whole.
22. Display V) A prize or bonus given as an inducement to
purchase
products or to use services.

Discussion
1. What is the history of advertising?
2. What must all advertisements do if they are to be effective?
3. Give some examples of selling the benefits of a product or service
rather than the products or services themselves. How do your examples appeal
to the emotions of the potential customers?
4. Why do some firms try to advertise their reputations?
5. Where fliers can be used?
6. What are trade magazines? What is the special value of advertising in
them?
57
 7. For what type of ad campaigns are mailing lists rented or purchased?
How are the lists organized?
8. In what way are TV ads more effective than printed ads?
9. Is there any advantage of radio commercials over TV ads? Name
some kinds of radio ads.
10. Where are films especially valuable for promotion?
11. Describe some ways in which package designs are used as
advertising tools.
12. Why do marketers try to get favorable publicity for their products?
13. List some sales promotional activities typically used by firms
attempting to call attention to their products.
14. How and where are demonstrations employed as sales promotional
techniques?
15. With what type of product does general advertising seem to be most
effective? With what type is personal selling more important?
16. When might a sale be made on the basis of a bid? Is this method
usually a competitive approach to trade?
17. What are repeat sales? How do salespeople go after them?
18. What is the importance of the bottom line?
19. What type of printed advertising is most prevalent in our country?
Which do you rely on most for commercial messages and communications?

Write a composition on one of the following topics:

A. You are working for an advertising agency which promotes a multi-
vitamin for children. Would you suggest TV or radio spots? Would you use
novelties, samples, or contests? How would you integrate advertising into the
package design?
B. How do manufacturers of highly specialized, costly items (such as
elevators or diamond-cutting tools) promote their wares? What are the
limitations on advertising imposed by the nature of these products?
C. Have you ever taken a course from a commercial language school?
Why did you choose that particular school? What type of promotion does it
rely on for the bulk of its enrollment? Were there any personal sales
activities?
D. You have been assigned the task of designing a sales promotion
campaign for a newer, safer model of motorcycle. What kinds of
communication might you choose? Where would you advertise? What part
might salespeople play in your overall strategy?

58
 Vocabulary

To disseminate распространять; рассеивать

To blend смешивать; сочетать
To evolve эволюционировать; развиваться;
развертываться
To impel побуждать; продвигать
To bill выставлять счет
Curiosity любопытство
To arouse curiosity вызывать любопытство
Handbill рекламный листок
Flier листовка
Billboard рекламный щит
Neighborhood соседство; район; окрестности
Public conveyances общественный транспорт
Commuter постоянный пассажир
Mailing list список адресов
To rent арендовать
Stop-motion стоп-кадр
Main feature художественный фильм
Commercial рекламная передача (на радио или
телевидении)
Gathering собрание, сборище, скопление
Convention собрание, съезд; соглашение,
конвенция
Counter прилавок
On the spur под влиянием момента
Incidental случайный, несущественный;
свойственный, присущий
Spoilage порча
Contamination загрязнение; заражение; порча
Dispensing отправка; раздача
Theft кража
Adulteration фальсификация; подделка
Substitution подмена, замена
Civic events городские мероприятия
Ingenuity изобретательность, искусство
To supplement пополнять, добавлять

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 UNIT SEVEN. FROM MAKER TO USER

Special Terms
Stock запас
Streamline совершенствовать
Assembly line линия сборки
Synthetic синтетический
Analytic аналитический
Lot партия
Inventory опись; инвентарная опись
Working capital оборотный капитал
Leftover sale распродажа остатков
Goodwill репутация, «гудвил»,
престиж, условная
стоимость деловых
контактов фирмы
Margin маржа, прибыль
Gross margin (син. gross profit) валовая прибыль
Charge account кредитный счет
Сredit card кредитная карта
Mortgage ипотека
Warranty (син. guarantee ) гарантия

Working on the text

Read and translate the text

From Maker to User

There are many stages in the marketing process. Before a can of green
beans is opened, cooked, and eaten, it has passed through dozens of hands and
machines. In fact these beans have actually been "marketed" twice. The
farmer chose the seeds, planted them, tended the crop, harvested and
transported it, and had it graded. Marketing encompassed all the activities that
occurred in getting the green beans from the farmer to the cannery. However,
once additional processing of a product takes place—in this case the
packaging of the fresh beans into canned beans—a new product is created; the
canner is the new "maker" and the process starts all over again. Now a new
set of marketing activities exists—getting the can of beans from the maker to
you.
Each marketer has financial dealings with suppliers and customers.
Each marketer takes some risk with some degree of profit or loss. The number
of units produced, stocked, and sold affects each dealer along the way; over-
or under-stocking costs money. Government or industry regulations, or
generally accepted public standards, influence the finished product. Even the
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consumer has a part in the overall process by judging the quality of the
product. Usually no one person participates in each of these activities or steps,
but the final user is affected by all of them.
Most products undergo substantial changes before they are ready for
the final user .Large assembly operations usually have advantages over small
or separate ones. Savings in cost and advantages in merchandising accrue to
those enterprises which streamline their activities. One of the most important
streamlining activities for manufacturers is the assembly line.
Making products involves three types of processes. One, the synthetic
process, mixes ingredients or assembles parts. Plastics are produced by
mixing chemicals and typewriters are made by assembling ready-made parts.
Another, the analytic process, breaks down raw materials to produce an end
result. Oil refineries separate the elements of crude oil to produce gasoline
and petrochemicals. Peanuts go through analytic processes to become cooking
oil, peanut butter, and ingredients for paint. A third process, conditioning,
changes the form of the raw materials. Ore from mines becomes steel which
becomes part of a telephone cable.
Since the makers of most goods are separated from the users by long
distances, it is impractical to think that every item or lot purchased can be
individually inspected. For this reason, there are trade association agreements
and government regulations to enforce quality standards and specifications.
Grading makes the marketing system more efficient and, ideally, increases
customer satisfaction by insuring standard quality. Frequently government
agencies "spot check" products at random to insure that standards are met. In
some cases, these agencies are empowered to force changes in production
operations or to recall goods from the market when tests show that they are
below acceptable standards.
Each juncture in the marketing process involves some purchasing
experience. Industrial supplies are often bought according to exact
specifications, leaving little discretion as to what should be bought.
Wholesalers and retailers have more latitude in buying their goods for resale.
They must stay within basic price and product lines, but have some degree of
choice. The consumer has the broadest discretion in purchasing and, as a
result, influences the wholesale and retail buyers. Because consumers' tastes
and needs change, the intermediaries try to stay alert to trends in the public's
buying habits and modify their own buying accordingly. All businesses—
even service-type establishments like shoe repair shops and veterinarians—
buy supplies of one sort or another. Some purchasing activities are so large or
complex that they require specialists known as purchasing agents. The
questions of when and how much to buy are linked to questions of storage.
Most retailers stock goods when they run low or when they feel confident
enough to buy for the future. All levels of buying new items depend on the
initiative of a sales force, but there is usually an automatic reordering
procedure for staples or repeat items. How large an inventory to stock is a
continuing problem.
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 Processing plants hold reserve stocks of raw materials so that their
machines and workers are not idled by delays in the arrival of new supplies.
Many traders keep extensive storage facilities so that they can control their
sales flow. Wholesalers and merchants try to keep an inventory large enough
to satisfy normal customer needs promptly. But how much is enough? Since
large orders usually involve quantity discounts and freight savings, there is
an advantage in quantity buying. On the other hand this ties up working
capital, and keeping large storage areas can be expensive. Effective
inventory control is needed in most phases of marketing to keep goods
flowing at a rate appropriate to sales. This question becomes particularly
acute in product areas where the goods are perishable or short-lived due to
fashion or season. Understocking may mean lost sales opportunities, while
overstocking forces leftover sales, which may result in loss of profit.
When goods are stored on counters, shelves, or in the stockrooms of
manufacturers, they are said to be in private storage. A public storage facility
or warehouse is one which rents space for various kinds of goods.
Many small manufacturers and stores concentrate their purchases with
a single supplier so as to take advantage of quantity discounts and personal
service. Large-scale buyers frequently use many sources to avoid dependence
on a single one. The reliability of the supplier may be more important than
differences in price. Goodwill is invaluable in every phase of marketing.
The movement of products is an important problem to solve. In some
cases, specialized transportation such as refrigerated vans is essential. If
goods are delivered late, damaged by careless handling, or spoiled, everyone
involved loses money. Except in retail sales of portable goods, the seller has
the responsibility for delivery. Whether the shipping or freight costs are
charged to the buyer or absorbed by the seller, it is the latter, who has the
biggest interest in keeping costs down.
Industrial and commercial products are moved on every kind of
vehicle. But whether the means are horse and cart, a motor freight carrier, a
ship, or a supersonic jet aircraft, the kind of transportation must be
appropriate to protect the goods.
Credit, or deferred payment, is common at all levels of marketing, since
all of the component parts require financing. The owner of the goods or
service sacrifices the opportunity to use the invested capital for other
purposes. Manufacturers need capital or credit while awaiting sale and
payment. Wholesalers and retailers often borrow money to build up stock for
a specific season, hoping to repay it from sales. All types of credit involve
some degree of risk, usually taken with an expectation of profit. Financial
hardships may befall businesses that operate on too much credit; price
fluctuations may result in a lower margin than expected. All forms of credit
are risky. Nonetheless, most businesses and individuals rely on one or more
of the forms of credit practiced throughout the world.
Commercial credit is money used to carry on business or trade. In
expectation of increased sales during an upcoming season, a store owner may
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borrow money to modernize and redecorate the premises. When business
increases the money is repaid. This is a short-term loan, usually repaid in two
to six months. Consumer credit, often involving charge accounts and credit
cards, permits individuals to obtain goods for which they pay over a period of
time. The special type of consumer credit used in buying buildings is a
mortgage. Investment credit allows a business to borrow money for capital
goods. If a machine manufacturer wants to expand by building another
factory, a long-term loan may be necessary – a large sum to be repaid over
several years.
Service is still an important part of marketing, although it is
diminishing in importance in some product areas. Self-service sales methods
for food and other consumer goods are increasing because of rising labor
costs. Those products which are perceived to be of higher importance,
however, still require sales and after sales attention and servicing. In product
areas such as farm equipment and sophisticated medical equipment, the
service factor is all-important for effective functioning of the products and for
future sales. Some products offer warranties or money-back guarantees to
prove that the manufacturers stand behind their products.
In those rare instances when a single enterprise carries out all of the
activities described, it is said to have integrated all the marketing functions.
The problems with total integration are so complex that even the most
adventurous of firms usually achieve only partial integration.
A subject only peripherally related to marketing, but of social
significance in some areas, is the black market. In times of crisis or as a
necessary economic practice, governments set up systems of rationing so that
everyone may receive a fair share of scarce goods at a legally stated price.
When those with extra money do not care how much they pay for an item,
black markets spring up to serve them. Anyone who sells or distributes goods
or currency through illegal channels or in violation of ceiling prices is dealing
in the black market. Needless to say, these dealings are secretive, and they
frequently attract organized crime.
There are three more main sources of information used in different
aspects of research: observation, intensive analysis, and census data. Through
observation, customers are systematically watched: their traffic pattern within
a store or supermarket, their stops at counters or shelves, the extent to which
they read labels, etc. An intensive analysis is an in-depth interview of an
individual, group, or family about a purchase. (How did they hear about the
product? Who decided to buy it? What do they like or dislike about it? Will
they buy it again? How would they like to see it improved or altered?) The
use of the government’s statistical analyses, where available, frequently
provides marketers with information on location of potential customers,
purchasing power, size of market, industrial activity, socio-economic
characteristics of population (such as per capita income), and many other
details. (Such statistics are also useful in determining sales territories since
they are broken down by region.)
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 Market research is not an element in the marketing mix but a tool used
for decision-making about the mix’s elements. While marketing managers
rarely conduct research themselves, they are involved and concerned with it.
They decide when to call in the specialists to conduct research and how much
to invest in it. They define the problems to be studied and analyze the
collected data in ways relevant to their decisions. Often they choose low-cost
techniques providing crude estimates, since they recognize the virtual
impossibility of collecting error-free data. Managers may decide on
exploratory research to determine a plan’s feasibility. Research payoff is
constantly measured against research costs: the expense of collecting data
must not exceed the payoff derived from it. Marketing managers must play an
active role in the research process it the input is to be useful to them.

Comprehension

Tick the correct answer: A, B or C for 1-5 below

1. What does synthetic process involve?
A. Separating elements of some substance;
B. Conditioning the material;
C. Mixing ingredients and combining parts.

2. Why do wholesalers and retailers have more discretion in purchasing

than industrial suppliers?
A. Because industrial goods are often ordered according to exact
specifications;
B. Because they must stay within basic price and product lines;
C. Because they keep extensive storage facilities.

3. What kind of credit is not risky?

A. Long-term credit;
B. Short-term credit;
C. Neither.

4. When does the black market emerge?

A. When people don’t care how much to pay;
B. When there exists scarcity of goods;
C. When the demand for a certain product is low.

5. What for are the census data used?

А. To determine purchasing power of the target market;
В. To analyze the traffic pattern of customers;
С. To provide marketers with the analyses of in-depth interviews.

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 Vocabulary Practice

Exercise 1

Find English equivalents in the text:

Пройти через десятки рук, собрать урожай, претерпевать
изменения, выборочно, отзывать товар с рынка, оставаться начеку,
перерабатывающий завод, нехватка товара, затаривание, склад,
неосторожное обращение, отсроченный платеж, финансовые трудности,
колебания цен, взять деньги в долг, основные средства, стоимость труда,
дефицитный товар, организованная преступность, данные переписи
населения, покупательная способность, доход на душу населения.

Exercise 2

Fill in the blanks with one of the words below. Change the form of
the words where necessary.

a)Commercial, b)overstocking, c)under-stocking, d)good service and

customer care, e)consumer, f)synthetic, g)analytic, h)streamline,
i)conditioning, k) grade.

1. A process called ________ changes the form of the raw materials. 2. The
production of bacon from a hog is an example of _________ processing. 3.
Poultry inspectors examine chickens in order to __________ their quality. 4.
A closeout or leftover sale may be necessary due to __________.5. Goodwill
is usually a result of _________. 6. A department store owner preparing for a
holiday season may require _______ credit. 7.________ may result in lost
opportunities. 8.When the price for _______goods is calculated, per capita
income of a target market is usually taken into account. 9. Mixing ingredients
or assembling parts is called a ________ type of process. 10. They are
constantly ________ their advertising.

Grammar Revision: Complex Object

The Objective-with-the infinitive is a construction in which the

infinitive is in predicate relation to a noun in the common case or a
pronoun in the objective case. In the sentence this construction has the
function of a complex object. It is used after verbs denoting:
1. sense perception: to hear, to see, to watch, to feel, to observe, to
notice, etc.
2. mental activity: to know, to think, to consider, to believe, to expect,
to find, etc.
3. declaring: to declare, to report, to pronounce.

65
 4. wish and intention: to want, to wish, to desire, to intend, to mean,
etc.
5. feeling and emotion: to like, to dislike, cannot bear, to hate, etc.
6. order and permission: to order, to allow, to suffer, to have, etc.
7. compulsion: to make, to cause, to get, to have.
For more info see§8 of the Grammar Reference.

Exercise 3

Find the Complex object in the following sentences. Translate the

sentences into Russian:
1. I haven’t heard their company penetrate foreign markets.
2. We didn’t expect them to merge so soon.
3. The firm declared their goods to be environmentally friendly.
4. My boss intended me to go to India to expand our business there.
5. I cannot bear them to take over our company.
6. The CEO ordered the goods to be ready for dispatch first thing in the
morning.
7. I cannot get him sign the contract.

Exercise 4

Paraphrase the following sentences using Complex Object:

1. We expected that our suppliers would give us a discount.
2. They don’t know that our company gives life long guarantee.
3. We would like to allow your company to pay back by installments.
4. I didn’t think that goodwill belonged to intangible assets.
5. I haven’t heard the news that our competitors streamlined their
assembly line.
6. The intention of the top management of our company is to penetrate
new markets.
7. I saw that the secretary had brought the morning mail into the office.

Exercise 5

Translate from Russian into English making use of the vocabulary of

the lesson:
1. Ипотека представляет собой особый вид кредита на покупку
дома, в котором сам дом и является залогом под данный заем.
2. Хорошая репутация обычно является результатом хорошего
обслуживания, заботы о покупателе и конечно высокого качества
товара.
3. Затоваривание на складе может привести к распродаже
остатков, результатом которой может оказаться потеря прибыли.

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 4. Кредитный счет позволяет покупателю оплачивать товары
после того как они уже получены.
5. Каждое предприятие старается усовершенствовать свою
работу.
6. Гарантия – это письменное обещание заменить или починить
неисправную деталь бесплатно.
7. Если фирма желает взять деньги в долг на средства
производства – мы имеем дело с инвестиционным кредитом.
8. Розничные торговцы часто нуждаются в коммерческом
кредите, чтобы сделать запасы в ожидании грядущего сезона.

Vocabulary Test

Match the words in the left column to their definitions in the right
one
1. Installments A) accumulated supply of goods, to keep a supply of
goods
2. Synthetic B) to improve in appearance or efficiency

3. Lot C) an arrangement of tools, machines, and workers in

which a product being put together passes through
consecutive operations until completed
4. Goodwill D) artificial, manmade
5. Guarantee E) a small, usually plastic, piece of identification
authorizing the holder to buy on credit
6. Inventory F) separation of material into its constituent elements
7. Working capital G) an arrangement in which purchases are billed and
paid for after a customer receives them, a form of
credit
8. Margin H) a distinct portion of merchandise considered
collectively
9.Gross profit I) a detailed list of the stock in possession at a given
time
10.Stock J) a written promise that the dealer or manufacturer
will repair or replace any defective parts free of
charge for a certain period of time
11.Charge account K)Current liquid assets minus current liabilities
12.Analytic L) successive payments over a fixed period of time
13.Assembly line M) a sale of remaining products, frequently held at
the end of a fashion season or before spoilage, and
often at no profit to the Seller
14.Streamline N) a special type of consumer credit to buy buildings
over a period of time It is a pledge of property to a
creditor as a security against a debt.

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15.Mortgage O) an intangible asset due to the good reputation of a
business
16.A credit card P) The difference between the cost and the selling
price
17.Leftover sale Q) that is the money that remains after
subtracting the cost of the goods sold from net sales

Discussion
1. What are the possible stages in the marketing process?
2. Describe the types of manufacturing processes. Give your own
examples of each one.
3. How have grading and quality standards practices come about? How
are they overseen and enforced?
4. What are the differences in discretionary purchasing power among
manufacturers, wholesalers, retailers and consumers?
5. What is a purchasing agent? Why is this job necessary in some
businesses?
6. Is it necessary for processors and manufacturers to hold reserve
stock of their raw materials?
7. Is there any difference between private and public storage?
8. Why might a firm buy from several suppliers rather than one?
9. What are some of the potential problems arising from late shipping
and poor delivery?
10. What is credit? Why is its practice so widespread throughout the
business world?
11. What types of credit do you know? Give an example of each type.
12. What role does service play in marketing?
13. What does the integration of all marketing functions involve?
14. Have you ever used some form of credit? What type? How does
credit affect your business and personal life?
15. How does goodwill accrue to a company?
16. Contrast the synthetic process of manufacturing with the analytic
one. What synthetics are used in the clothing industry?
17. What is a mortgage used for?

68
 Vocabulary

Tend ухаживать
Harvest собирать урожай
Grade сортировать
Encompass заключать, окружать
Cannery консервный комбинат
Accrue накопляться, увеличиваться;
доставаться
Spot check проверка на месте
At random наугад, наобум
Latitude широта
Discretion осторожность; широта
действий, усмотрение (I leave it
to your discretion - на Ваше
усмотрение)
To run low истощаться; заканчиваться
Staple главный продукт; основной
предмет торговли
Idle простаивать; работать
вхолостую
Acute острый
Perishable скоропортящийся (товар)
Borrow брать в долг, занимать
Hardships трудности
Befall случаться, приключаться
Fluctuations колебания
Nonetheless тем не менее
Premises помещения
Capital goods основные средства
Diminish уменьшать
Perceive постигать, воспринимать,
чувствовать
Scarce редко встречающийся,
дефицитный
Currency валюта
Violation нарушение
Census перепись населения
Purchasing power покупательная способность
Per capita income доход на душу населения
To call in призывать
Feasibility выполнимость
Estimates смета, оценки
Deferred payment отсроченный платеж

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 UNIT EIGHT. RESEARCH

Special Terms
Survey обозрение, исследование, обзор
Questionnaire анкета
Focus group группа потребителей, приглашаемая
на интервью (фокусная группа)
Concept test концептуальный тест
Postmortem вскрытие причин
Prototype прототип
Panel панель (группа людей, отобранная по
какому-либо признаку)
Sales forecast прогноз продаж
Quota квота
Saturation point точка насыщения
Market testing рыночное испытание
Trajectory method метод траектории
Payoff результат

Working on the text

Read and translate the text

Research

In order to make their frequent decisions, marketers depend on various

kinds of information. This data is collected, tabulated, codified, analyzed, and
presented by sophisticated techniques designed to reveal what consumers will
buy, why they will buy it, and how much they will pay for it.
Product research aims at adapting products to the desires of buyers.
Consumer survey data, gathered by personal interviews, telephone, or mail,
are used to reach conclusions about market preferences. Often a
questionnaire is used to obtain such feedback.
Researchers may use a focus group or concept test to assess the need
the product is supposed to fill. A product may look good on paper and make
sense to those who design it, but it may not appeal to the public. In the case of
one pharmaceutical firm, a pain-killing pill was developed to be taken
without water; that feature was its main advantage over other analgesics. The
idea was sound, but the product did not sell. A postmortem revealed that
people want to take tablets with water because they believe, correctly or not
that water makes medicine more effective. The next step in product testing
may be to design a prototype to determine a panel's reactions to the product
as they use it. Food, clothing, cosmetics, and appliances are examples of
products which are often use-tested. The purposes of use-testing are to
determine the specific qualities that are liked or disliked, the value of the
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product to consumers, the various uses of the product, and how it compares with
existing products. Comparisons in which a specific product is rated against
another are known as paired comparison tests. When a product is rated on its
own merits, with no comparisons, the test is called monadic.
Market forecasts and commercial tests are frequently developed to
precisely measure expected sales and to select the appropriate packaging, brand
name, and communication appeal. The sales forecast is usually the key to
planning and controlling a company's operations. Short-term forecasts are used
to regulate production, inventories, and purchasing. They are aids in setting
quotas, directing sales efforts, and budgeting. Long-range sales forecasts are
used most often in planning long-term financing and development and in
supporting investment credit applications. Some large firms forecast general
business conditions in an attempt to predict the economic climate and its
influence on their future activities. Many decisions are based on detailed
knowledge of sales opportunities and projected sales volume. This research
area of market potential is generally divided into two parts: the qualitative area
identifies and diagnoses markets; the quantitative area forecasts future
demand and estimates current potential.
Package research seeks to give a product’s package more “shelf appeal”
through the use of designs, materials, and colors. Attractive packaging may
influence buyers to choose one product over another when both are similar in
price or content. Brand names, too, are market tested to see if customers
unconsciously or openly identify strengths and qualities with certain names.
Communication research is usually divided into two main areas of
inquiry: one measures the effectiveness of the ad itself and another measures
the suitability and economy of the media carrying the message. (This type of
research is highly specialized and is used by advertisers, advertising agencies,
and the media. The advertisers want assurances that their money is making
money. The agencies must learn and demonstrate to their clients by solid
research what is effective. The media must present themselves as productive
vehicles for communication.
Measuring the effectiveness of advertising material before it is published,
broadcast, or telecast, is known as pre-testing; this can prevent costly mistakes.
Post-testing measures advertising that has been read, listened to, or seen. Some
of the most common methods for pre- and post-testing are:
Consumer jury tests ask groups of possible consumers to evaluate the
message's effects. These groups may reveal insights into their attitudes and
reactions to overall ad effectiveness, but specific copy effectiveness is usually
measured by interviewing individuals.
Awareness measurements look for brand or advertising familiarity.
Respondents are asked various types of questions to gauge advertising
effectiveness and brand consciousness, a question like "What did you see
advertised on TV last night?"
Recall measurements seek a respondent's ability to remember any ad of
a specific product or the content of a particular ad. An aided recall test attempts
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to discover those brand names or logos which are most deeply impressed on
consumers minds: ''What brand of beer do you remember seeing or hearing
advertised recently" Unaided recall tests are without clues: ''What ads have you
seen recently that impressed you most?" Triple associate recall tests seek to
learn the extent of consumers' associations with products, brand names, and
copy themes. "What beer advertises that it is 'the one to have when you're
having more than one'?"
Recognition tests judge the respondents interest in ads located in
magazines they say they read. Very often in these tests respondents will go
through the magazine page by page with an interviewer and answer general
and specific questions such as: “Have you seen this ad before?” “Did you
notice this part?” “Did you associate it with this advertiser?” Scores are
compiled for ads that are “noticed”, “seen / associated”, or “read” most.
Attitude and attitude change measurements seek first to understand
the nature of opinions. A product's image is an important clue to which
segment of the market may buy it. Attitude devices also analyze the degree of
modification in attitudes as a result of specific advertising.
Psychological measurements hope to discover unconscious reactions
to advertising stimuli. A respondent may claim to like a magazine because it
is comprehensive, but may in fact be impressed by the imagined status of its
subscribers. Probing the subconscious reasons for buying requires trained
interviewers or sophisticated machines like the galvanic skin response
recorder. This electronic device allegedly measures the intensity of a person's
feelings, using technology like that of the lie detector. Motivational research
relies on psychology and sociology to learn why people really behave, react,
and buy as they do.
Sales results in themselves measure the effectiveness of ads. One of the
aims is to determine the maximum volume of advertising a market can absorb
before the saturation point is reached.
Media research, another type of communications research, is conducted
to determine the most effective, least expensive way to reach people.
Advertising gets maximum results when it reaches the greatest number of
prospective buyers at the lowest cost. The first step in this process is to find
out from each medium the number and kind of people it reaches, how often,
where, and at what cost. Each medium does its own research for this purpose.
Magazines and newspapers measure their audiences by circulation readership,
and to some extent on surveys, while TV and radio must rely only on surveys.
Thanks to computers, techniques for measuring consumer data are very
refined. Not a survey is done in which data are not tabulated, analyzed, and
manipulated by computer. Such sophisticated measurement can tell
advertisers what proportion of consumers reached are professionals, laborers,
or students. This is the starting point for defining an audience. It is of prime
importance for the advertisers to have data concerning age, sex, location,
occupation, and income level so that they can match the message and the
medium to the audience.
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 Since actual sales are the best proof that a product will sell, controlled
sales experiments, or market tests, are a favorite of researchers. Products are
tested under conditions designed to measure their sales in normal
circumstances, against competition, in season, and in a repeat cycle.
All these techniques, approaches, and reasons for research apply to
existing, as well as new, products. Even well-tested products of long standing
are closely monitored. Sometimes the need for adjustments in the marketing
effort becomes evident through sales or market share analyses. Consumer-
attitude surveys and use tests are designed to keep up with the current state of
the market. Recently introduced products are watched carefully to see that
they behave as predicted. Since speed in assessing performance is vital,
marketers trace their goals by the trajectory method, which utilizes the same
principles as those which follow-rocket and missiles.
There are three more main sources of information used in different
aspects of research: observation, intensive analysis, and census data. Through
observation, customers are systematically watched: their traffic pattern within
a store or supermarket, their stops at counters or shelves, the extent to which
they read labels, etc. An intensive analysis is an in-depth interview of an
individual, group, or family about a purchase. (How did they hear about the
product? Who decided to buy it? What do they like and dislike about it? Will
they buy it again? How would they like to see it improved or altered?) The
use of the government's statistical analyses, where available, frequently
provides marketers with information on location of potential customers,
purchasing power, size of market, industrial activity, socio-economic
characteristics of population (such as per capita income); and many other
details. (Such statistics are also useful in determining sales territories since
they are broken down by region.)
Market research is not an element in the marketing mix, but a tool used
for decision-making about the mix's elements. While marketing managers
rarely conduct research themselves, they are involved and concerned with it.
They decide when to call in the specialists to conduct research, and how
much to invest in it. They define the problems to be studied and analyze the
collected data in ways relevant to their decisions. Often they choose low-cost
techniques providing crude estimates, since they recognize the virtual
impossibility of collecting error-free data. Managers may decide on
exploratory research to determine a plan's feasibility. Research payoff is
constantly measured against research costs: the expense of collecting data
must not exceed the payoff derived from it. Marketing managers must play an
active role in the research process if the input is to be useful to them.

73
 Comprehension

Tick the correct answer: A, B or C for 1-5 below

1. Why do marketers use questionnaires in their surveys?
A. to gather as complete data as possible;
B. to make a conclusion about market preferences;
C. to understand the best qualities of a rival product.

2. A monadic test is:

A. when a product is rated in monetary value;
B. when a product is estimated on it’s own advantages;
C. when a product is compared with existing products.

3.“Shelf-appeal” deals with:

A. packaging;
B. advertising;
C. content.

4. Vehicles for communication are:

А. the type of research;
В. advertising agencies;
С. mass media.

5. Consumer-attitude surveys and use tests are designed to:

A. learn about market preferences;
B. collect census data;
C. calculate the payoff.

Vocabulary Practice

Exercise 1

Find English equivalents in the text:

Получать обратную связь; собирать информацию, кодировать и

сводить в таблицу; данные обзора потребителей; иметь смысл;
апробация нового товара; промышленные испытания; предсказать
экономический климат; товарный вид; продуктивный вид рекламы;
бессознательная реакция на рекламный стимул, тираж, отслеживать
свою цель, использовать те же принципы, грубая оценка.

74
 Exercise 2

Fill in the blanks with one of the words below. Change the form of
the words where necessary.

a)Postmortem ; b)communication technologies; c) feasible; d)economic

climate; e) a survey; f) failure; g)rejected; i) needs;

Forces like economic integration and the increased sophistication of

_____1_ _____ are moving markets toward greater unification. For most
products, however, standardized plans aren’t____2___ as evidenced
by___3______ which showed that only one in ten consumer products was
exported without significant modification.___4____ to modify products or
services to meet local market____5___ can have expensive consequences.
During the April-June 1993 the Euro-Disney theme park in France lost
a disastrous 87 million while stock values plunged 20 per cent. ______6____
revealed that the key reason was misjudged_____ 7 ______, and misjudged
cultural environments. Interestingly, the same values
resoundingly_____8____ in France were resoundingly successful in Disney
Japan, where more visitors traipsed through the theme park in 5 years than
traipsed through the original Disneyland theme park in 35 years.

Grammar Revision: Conditionals

If (unless, provided) introduces a condition. It means that something

may happen depending on the circumstances. There are four main types of
conditional sentences:
1. Stating a general rule
If you rate a product against another it is paired comparison.

2. Speculating about the future (promising or threatening)

If we try to forecast general business conditions we’ll be able to predict
the influence of the economic climate on our future activities.

3. Imagining
If the postmortem revealed the reasons for failure they would never
make similar mistakes.

4. Speculating about the past

If the new product had been use-tested it would have helped to
determine the specific qualities that are disliked by consumers.
There are also mixed types of conditional. For more information see §9
of the Grammar Reference

75
 Exercise 3

Define the type of conditionals in the following sentences. Translate

the sentences into Russian:
1. If we wanted to measure consumers’ interest in ads located in
magazines we would use recognition tests.
2. If the company had taken into account the degree of cultural
grounding they would have adapted their product.
3. We won’t strike a deal with you unless you create favorable
conditions.
4. If the company had used census data they would have positioned
their products more accurately.
5. If you tabulated the collected information if would be easier to
analyze it.
6. We might be able to reduce the expenditure on advertising on
condition our partners help us.
7. If you do know your customer, and if you do bring real value to that
customer, the two of you will be doing business for life.

Exercise 4

Open the brackets using the correct form of the Conditionals:

1. If respondents (to ask) to gauge advertising effectiveness and brand
consciousness it (to be) awareness measurements.
2. If they (use) trained interviewers while conducting the survey, the
advertising campaign (to be) such a failure.
3. Provided they ( not to go) on their offer, we ( to sign) the agreement
next week.
4. If we (break into) the Indian market at that time our turnover (to
increase) long ago.
5. We (not to use) questionnaires, focus groups or concept tests if we
(to know) a better way of assessing the need the product is supposed to fill.
6. Don’t promise anything unless you ( to be sure) completely.

Exercise 5

Translate from Russian into English making use of the vocabulary of

the lesson:
1. Если какой-то товар не продается, необходим анализ, чтобы
вскрыть причины неудачи.
2. Чтобы определить специфические характеристики товара,
которые нравятся или не нравятся потребителю используются
различные виды тестов, анкеты, сравнения с другими товарами.

76
 3. Рыночные прогнозы часто используются с целью получить
оценку ожидаемых продаж, а также выбрать соответствующую
упаковку, наименование и средство рекламы.
4. Данные переписи населения обеспечивают маркетологов
информацией о покупательной способности потенциальных
потребителей, размерах рынка, доходах на душу населения.
5. Издательства журналов и газет оценивают аудиторию своих
читателей по раскупаемому тиражу.
6. Тесты потребительского жюри направлены на выявление
воздействия данной рекламы на возможного покупателя.
7. Тесты на узнаваемость оценивают рекламу, размещенную в
журналах.
8. Оценка осведомленности направлена на поиск знакомых
брэндов или рекламы.

Vocabulary Test

Match the words in the left column to their definitions in the right
one
1. Payoff a) an original form of a product which serves as
a model
for its future production
2. Survey b) a statistically selected sampling of people
representing a
specific population
3. Trajectory method c) seek a respondent’s ability to remember any
ad of a specific product or the content of a
particular ad
4. Questionnaire d) in marketing, an examination to determine
the reasons
for failure in any part of the marketing plan
5. Market testing e) an attempt to predict the future about product
sales or
market levels
6. Focus group f) hope to discover unconscious reactions to
advertising stimuli
7. Saturation point g) the final choice, solution, or result

8. Concept test h) a way of setting goals according to research

results and analyses; the product’s path is
monitored closely on a graph
9. Quota i) the amount beyond which no more can be
absorbed

77
10. Postmortem j) a research technique in which the product is
sold at selected locations while its reception by
consumers is observed
11. Prototype k) ask groups of possible consumers to evaluate
the message’s effects
12. Panel l) Judge the respondents interest in ads located
in magazines they say they read
13. Sales forecast m) an assigned goal of the total volume of sales
to be reached within a specific time period
14. Consumer jury test n) looking for brand or advertising familiarity
15.Psychological o) market research technique used to see how
measurement prospective consumers react to a proposed new
product
16. Recognition test p) a group of five or six people that meets with
an interviewer to discuss products and consumer
needs
17. Awareness measure- q) a sampling or partial collection of facts
ments figures, or opinions and analysis of the data
18. Recall measurements r) set of questions designed to yield usable
information for marketing purposes

Discussion
1. What are the main areas of concern for market researchers?
2. What does a concept test show?
3. What are the purposes of use-testing? What types of product is it
good for?
4. What is the difference between paired comparison tests and
monadic tests?
5. Why are market forecasts and commercial tests developed?
6. Compare short-term forecasts with long-range forecasts. What are
the specific goals of which?
7. Why do some firms engage in general business forecasting?
8. How are market potential tests classified? What are the uses of these
classifications?
9. What is “shelf-appeal”? What do marketers hope for in the choice of
brand names?
10. Which are the main areas of communication research? Identify
those concerned with this research. Why is each involved?
11. What are the values of pre-testing? Of post-testing?
12. What does a consumer jury test measure?
13. Describe the three recall types of measurement employed in
marketing research. How do their goals differ from each other?
14. How do recall and recognition tests differ?
15. How is product image measured? Why?

78
 16. What is psychological or motivational testing aimed at? Describe
some methods used.
17. What are the goals of media research? How does it differ from
advertising effectiveness research?
18. What do consumer data tell advertisers about their audiences?
19. What is a product’s performance in a test market supposed to
show? How are market tests conducted?
20. Why are trajectory paths chartered specifically for newly
introduced products?
21. How does observation help obtain information on consumer
behavior?
22. What do researchers hope to learn from intensive analyses of
individuals or groups of consumers ? What types of questions are asked?
23. What is the role of marketing manager in marketing research?

Typical Breakdowns for Consumers Data or What Every Marketer

Wants to Know
Age: Sex:
I) under 18 1) Female
9} 18 to 24 2) Male
3) 25 to 34
4) 35 to 49 Occupation:
5) 50 to 64 1) Unemployed
6) 65 and over 2) Student
3) Retired
Marital Status 4) Not employed outside of
1) Single home
2) Married 5) Employed
3) Widowed a) professional, technical
4} Divorced or separated b) clerical
c) managerial proprietor
Education: d) military-, official
I) none to 8 years of school e) skilled labor
2) 8 to 12 yean of school f) unskilled labor
3) some college or university g) farm
4) college or university
5) some postgraduate work Family annual income:
6) graduate degree I) under $5000
2) $5000 to 7500
3) $7500 to 10,000
Family Size: 4) 810,000 to 15,000
I) 1 or 2 members 5) S 15,000-to 25,000
2) 3 or 4 members 6) $25,000 and over
3} 5 or more members
Other:
Residence: Race
1) a) urban Religion
b)suburban Length of employment
c) rural Ages of children
2) a) own Reading or entertainment
b) rent habits

79
 Case Study

a) Think of a memorable TV or radio commercial you have heard or

seen. Choose one which includes a jingle – a repetition verse set to music.
In the questionnaire below you can find a number of ideas about the jingle.
Place a check mark in one space in each row to show the degree to which
you think the idea fits the commercial.
b) What conclusions might a researcher draw from the results of this
type of questionnaire?
How much those conclusions affect the marketing effort? What other
categories and ideas could have been added for testing? Do you buy the
product or use the service being advertised in your example?

Sample Consumer Questionnaire

(A survey of audience attitudes)

Type of commercial: TV____ Radio______ Your age______

Type of product ___________________ Brand name ______________

Very Somewhat Neither Somewhat Very

Different Ordinary
Exciting Dull
Up-to-date Behind-the-
time
Interesting Boring
Fun Work
Energetic Relaxed
With it A drag
Like me Not like me
Professional Amateurish
Strong Mild
Easily Difficult to
understood comprehend
Appealing Unappealing
Loved the Hated the
performance performance
Would like to Would not
hear it again like to hear it
again
80
 Vocabulary

Appliances бытовая техника

Merits достоинства
To rate оценивать
Unconsciously бессознательно
Awareness measurements оценка осведомленности
Consumer Jury Tests тесты потребительского жюри
Recall measurements оценка запоминаемости
Unaided зд. без наводящих вопросов
Recognition tests испытание на узнаваемость
Attitude change measurements оценка изменения отношения
Probing зондирование
Subconscious подсознательный
Allegedly по утверждению, будто бы,
якобы
Stimulus (stimuli) стимул
Circulation readership тираж
Laborer чернорабочий,
неквалифицированный рабочий
To trace their goals отслеживать свои цели
Utilize the same principle использовать те же принципы

81
 UNIT NINE. THE FUTURE OF MARKETING

Special Terms
Bankruptcy банкротство
Export экспорт
Import импорт
Letterhead фирменный бланк к-л
организации
Patent патент
Multinational corporation (MNC) транснациональная
корпорация
Marketing boards торговые палаты,
управления по сбыту
Gross national product (GNP) валовой национальный
продукт
Cartel картель
Stockpile запас, резерв
Subsidy субсидия, дотация
Demographics демографическая
статистика

Working on the text

Read and translate the text

In marketing, as in the rest of life, there is much to learn from history.
Postmortems of marketing failures are important factors in making decisions
about the future. The spectrum of marketing failures ranges from inadequate
return on the original investment to corporate bankruptcy. According to the
largest marketing research company in the world, the A.C. Nielsen Company,
these are the thirteen most common marketing errors:
1. Failure to keep a product up-to-date. Products must be suited to the
market.
2. Failure to estimate the market potential accurately. Enthusiasm
should be tempered with realism.
3. Failure to gauge the trend of the market. Adjustments in the
marketing program must be made readily.
4. Failure to appreciate regional differences. Advertising and
distribution efforts must reflect environmental and cultural limitations.
5. Failure to appreciate seasonal differences in demand. This is
important not only among nations and cultures, but within product areas.
6. Failure to develop the advertising budget fully. Advertising budgets
based on immediate sales are frequently short-sighted.
7. Failure to adhere to long-range goal policies. Significant trends need
time to develop.

82
 8. Failure to test-market new ideas. There is a difference between what
people say and what they actually do.
9. Failure to differentiate between short-term tactics and long-range
strategy. Special promotional activities cannot substitute for advertising.
10. Failure to try new ideas. Changes must be made before competitors
force them.
11. Failure to integrate all phases into the overall program.
Coordination is the key.
12. Failure to appraise the competition objectively. The tendency is to
underestimate the resources and the ingenuity of the competition while
overestimating one’s own position or reputation.
13. Failure to admit defeat. A realistic appraisal of errors is vital.

As production techniques and marketing systems become more

sophisticated, cross-cultural trading increases. As people of different cultures
become more dependent on each other for their living standards, they
appreciate the need for peace and stability. Communication and transportation
systems have created a small world, in a marketing sense. Every year more and
more firms, even relatively small ones, enter the international market. The
problems encountered there are significantly different from those encountered in
domestic operations. Marketers are accustomed to risk-taking; but in interna-
tional dealings the dimensions of these risks are often misjudged and
misunderstood.
One area of special interest is the literal translation of advertising names,
slogans, and concepts from one language and culture to another. It must have
been embarrassing to General Motors when its "Body by Fisher" became
"Corpse by Fisher" in Flemish. Colgate-Palmolive made an expensive mistake
when it introduced its Cue toothpaste into French-speaking countries; the brand
name and trademark turned out to be pornographic in French. Advertisements
that do not conform to local lifestyles are wasted. One toothpaste
manufacturer found that promising white teeth was inappropriate in many
regions of Southeast Asia, where chewing betelnut is an elite habit and black
teeth are symbols of prestige.
Export marketing companies are another result of international marketing.
These independent businesses act as agents for firms that want to participate in
worldwide trade, instead of their own names, they often use special letterheads
showing their address as the manufacturer's "export department" or
"international division." The services performed by the export company for its
client include:
1. Researching the foreign market;
2. Conducting on-site tours to determine the best methods of
distribution;
3. Appointing commission representatives, sometimes within an
existing sales network, in the foreign country;
4. Exhibiting the products at overseas trade shows;
83
 5. Handling the paperwork of export and import declarations,
shipping and customs documentation, insurance, banking,
instructions for special handling, and similar details;
6. Preparing and adapting appropriate sales literature;
7. Adapting the goods to local conditions and legal and trade
standards;
8. Meeting patent and trademark requirements.

The emergence of the multinational corporation (МNС) is of major

significance in the future of marketing. Many firms that entered the export
business in a modest way eventually became fully committed to an
international perspective. The two basic roles of these MNCs are the
transmission of resources, especially technological and managerial skills, and
organization of the economic activities of several nations. Global approaches to
economic decisions often differ with the aims of specific countries. There may
be resistance to multinational activities for reasons of nationalism, control, and
the extraction of profits.
It is enormously expensive, in global terms, for each country to duplicate
advanced research, technology, and production. Despite obstacles,
multinationals have expanded steadily because they reduce this duplication and
contribute to the economy of their host nations. It seems likely that those MNCs
that can evolve effective accommodations with nationalism will flourish.
General improvements in marketing can be expected in three major
areas. The first is the enterprise of private traders and corporations seeking
profits. Competition will always stimulate cheaper and more effective
distribution methods, more economical production, and the reduction of
profit margins.
The second is joint action by firms or individuals. More and more
cooperatives will provide economical marketing facilities and a firm
bargaining base for their members. Many marketing boards have
developed to require producers and handlers of certain commodities to
observe rules and procedures. In some countries, such a board assumes
full responsibility for marketing certain products, either with its own staff
or with private firms and cooperatives. In the United States, a board of
trade, or commodity exchange, is an organized market for agricultural
goods, handling commodities in much the same way as stock exchanges
do for stocks and bonds. Trading companies in Japan function similarly;
their combined sales figures represent almost 30 percent of Japan's GNP.
They are involved in trading, resource development, manufacturing,
mining, urban and regional development, and a number of service
industries.
One facet of the trend toward joint action in world marketing is the
formation of cartels. These may be made up of individual companies,
marketing boards, trading companies, or a combination; their influence,
particularly on raw materials markets, is substantial. Probably the most
84
renowned group of this sort is OPEC, the Organization of Petroleum Exporting
Countries, which has controlled the marketing of petroleum products in virtually
every nation in the world.
The third area in which marketing improvements are expected is
governmental assistance. This can take three major forms:
Regulatory aid includes the standardization of weights, measures, and
containers, and the establishment of minimum health standards. Quality
inspection and grading is vital to everyone, and the regulation of transport and
market facilities helps insure fair practices. Some laws are designed to define
sales contracts and how they must be fulfilled. Laws prohibiting deceptive
advertising, price discrimination, and price-fixing protect consumers. Anti-trust
laws prohibiting monopolies and assisting fair competition create a healthy
market climate. Other laws deal with bankruptcy, patents and trademarks, and
financial statements.
Facilitating aid provides market information and statistics, sets up
training and extension services, and finances research into ways of raising
efficiency or reducing marketing costs.
Direct intervention is government involvement in the purchase, sale,
storage, and movement of goods. In some cases, a government will be its own
largest consumer and may be so involved in purchasing goods and services for
defense and social welfare that it virtually defines the marketing process from
start to finish. Governments may influence prices, supplement existing market
channels, and increase competition. They also try to protect producers and
consumers against emergency pressures or chronic weaknesses in a marketing
system. Some governments practice such support activities as stockpiling,
subsidies, and a price equalization aid to farmers known as parity.
The trends noted in this unit will all affect the future of marketing, as
will the new attitudes, customs, mores, institutions, and economic systems. The
following is an outline of the major forces in society which will affect marketing
in the years ahead. The main headings represent the four major breakdowns of
the system in which marketing operates.

A. Sociocultural
1. Demographics: A slowing population growth with corresponding
smaller family size, in industrial nations and regions; a rising average age in
the United States as post-World War II
babies move through their life cycle; increased participation of women
in the work force.
2. Knowledge: increasing education and sophistication with less faith
and acceptance.
3. Values: More secular, humanistic, and rational; less traditional,
religious, and mystic.
4. Social Structure: More open and fluid societies; more varied
subcultures and life styles; patterns of a "one-world" mentality.

85
 B. Economic
1. Structure: More concentration, larger companies, and more
multinational trade.
2. Competition: More visible; closer government observation,'
3. Technology: Extremely important; accelerated.

C. Governmental
1. Increased complexity and size.
2. More interaction with business.
3. More direct intervention in the economic system,
4. More restrictions on marketing with a struggle surrounding the
regulatory role.

D. Ecological
1. Much of the world burdened by population growth.
2. Limited resources.
3. Increased interdependence among nations.
4. Need to preserve the environment

Marketing is more than business techniques and economic activities; it

is a social process that fulfills a basic social need. It is comprised of and affected
by the diverse interrelationships of individuals, organizations, governments, and
society. What forms it will take in the future depend on political and economic
changes, but one thing is certain; marketing will always be with us in an
important way.

Comprehension

Tick the correct answer: A, B or C for 1-5 below

1. The problems that firms encounter on the international market are:
A. approximately the same as on the domestic market;
B. quite different;
C. not mentioned.

2. On-site tours are conducted by export marketing companies:

A. to handle the paperwork;
B. to prepare appropriate sales literature;
C. to understand the best channels of sales.

3. A board of trade is:

A. a commodity exchange;
B. a usual market;
C. a stock exchange.

86
 4. Direct intervention is:
А. MNC entering a local market;
В. government involvement in the movement of goods;
С. emergency pressure.

5. What is not mentioned among the major breakdowns of the system

in which marketing operates?
A. economic;
B. ecological;
C. psychological.

Vocabulary Practice

Exercise 1

Find English equivalents in the text:

Точно оценить потенциал рынка, умерять энтузиазм,
корректировка маркетинговой программы, неумение отличить, признать
поражение, становиться все более зависимым, буквальный перевод,
соответствовать местному образу жизни, выезд на место, соблюдать
правила, торговать товаром, элитная привычка,

Exercise 2

Fill in the blanks with one of the words below. Change the form of
the words where necessary.

a) Defining, b) cross-cultural, c) lost sales, d) habits, e) members of society,

f) level of involvement, g) resist, h) strategic planning process.

Culture is a complex whole, learned and shared by members of society,

encompassing beliefs, values, language, religion, art, morals, law, education,
customs,…1…, and capabilities. Culture provides…2… a sense of identity
and well-being. Cultures are inherently conservative, in that they …3…
change and foster continuity. As the globalization of business grows, so does
the need for intra – and …4… competence to deal with culturally diverse
publics that influence the health and growth of the enterprise. A firm’s level
of cultural competence can be the primary determinant of its …5…in a given
market. Cultural incompetence can lead to …6… and calamitous customer
relations. In the context of crucial role of culture in the…7…, it’s the job of
the global marketing manager to identify significant intra- and cross-cultural
variables. This information can then influence every aspect of the strategic
marketing planning process from …8…the nature and needs of target
markets to building marketing mixes that appeal to these markets.

87
 Grammar Revision: Punctuation

1) A comma is used to separate homogeneous members used without

any conjunction:
A country’s culture is learned, shared, transmitted.

2) A comma is used to separate several homogeneous members if the

last is joined by the conjunction “and”:
Among significant cultural variables that can help marketing managers
define and develop international markets are values, language, and religion.

3) No comma is used if two homogeneous members are joined by the

conjunction “and”:
Approaches for identifying and measuring significant cultural variables
include observational fieldwork.

4) A comma is used to separate homogeneous members joined by the

conjunction “but” and the correlative conjunction not only… but also:
Not only may substantial investments be required to develop and
market new products, but contracts or even mergers with other companies
may be necessary.

5) Coordinate clauses joined asyndetically or by the conjunctions

nether, nor, conjunctive adverbs moreover, besides, then, yet, whereas, still
are usually separated by the semicolon, but occasionally a comma is found:
The company did not sell their assets; nor did they offer to pay their
debts.

6) Defining relative clauses that add essential information to the

sentence are not separated by a comma:
I am speaking about the company that produces telephone equipment.

7) Non-defining relative clauses that add non-essential information are

separated by commas.
The new investment plan, which was announced on Monday, will take
five years to complete.

8) Subject, predicative, and object clauses as a rule are not separated

from the principal clause:
What they learned of marketing in that month was much more than that
he had learnt in all his life.

88
 Exercise 3

Read the sentences below and explain the punctuation:

1. The two basic roles of these MNCs are the transmission of
resources, especially technological and managerial skills, and organization of
the economic activities of several nations.
2. Advertising budgets based on immediate sales are frequently short-
sighted.
3. What people say does not really mean they do it.
4. What they wanted to introduce on the world market was test-
marketed three times in order to adhere to long-range goal policies.
5. Despite obstacles, multinationals expanded steadily because they
contribute to the economy of their host nation.
6. Every year more and more firms, even relatively small ones, enter
the international market.
7. It is enormously expensive, in global terms, for each country to
duplicate advanced research, technology, and production.

Exercise 4

Translate from Russian into English making use of the vocabulary of

the lesson
1. Чтобы определить лучшие методы сбыта, компании,
занимающиеся экспортом, проводят поездки на места.
2. Транснациональные корпорации могут столкнуться с
сопротивлением принимающей стороны, причиной которой являются
возможные прибыли.
3. Маркетинговые советы проводят исследования, предоставляют
информацию, регулируют сбыт и помогают поддерживать репутацию
отдельной страны.
4. Валовой национальный продукт представляет собой денежное
выражение всех товаров и услуг, произведенных в стране за год.
5. Чтобы избежать ошибок в маркетинге, необходимо
придерживаться политики долговременных целей.
6. Он примет на себя всю ответственность за продажу этого
товара.
7. Принесите мне, пожалуйста, фирменные бланки Ваше

89
 Match the words in the left column to their definitions in the right
one

1. Bankruptcy A) Stationery containing the name and address

of an organization
2. Import B) The exclusive right to make, use, or sell a
specific item, granted by a government to a
person or company for
a stated time period.
3. Gross national product C) A company that has a manufacturing or
(GNP): investment base in at least two countries
outside the country
of its origin
4. Export D) Organizations which promote and
facilitate the worldwide marketing of specific
products.
5. Letterhead E) To bring in merchandise from a foreign
country, especially for resale
6. Multinational corpora- F) A business association formed to regulate
tion (MNC) prices, production, and marketing of the
products of its members
7. Marketing boards G) The state in which a person or company is
unable to pay creditors
8.Demographics H) A reserve supply stored and maintained for
future use
9. Cartel I) To send or sell merchandise to a foreign
country
10. Patent J) The total monetary value of all goods and
services produced in a country during one year
11. Stockpile K) The vital and social statistics of a
population
12. Subsidy L) Government involvement in the movement
of goods
13. Direct intervention M) Financial aid of a government to a private
industry

Discussion
1. What is the value of studying marketing failures?
2. What is the difference between failure to adhere to long-range goal
policies and failure to differentiate between short-term tactics and long-
range strategy?
3. What is the trend in marketing with regard to international trade?
Are domestic marketing problems similar to international ones?

90
 4. Give some examples of translation errors made by marketers
advertising abroad.
5. Give an example of an error made because of the failure to reflect local
values and life styles.
6. What is an export marketing company?
7. Describe those necessary activities which exporters must practice.
8. What are the two basic roles of MNCs?
9. Why do multinational firms meet resistance from individual nations?
10. Describe the role of marketing boards.
11. What is a board of trade in the United States? A trading company in
Japan?
12. Give an example of a cartel and its effect on other nations.
13. What is the difference between regulatory government aid and
facilitating government aid?
14. What kinds of direct intervention and support activities do some
governments engage in with regard to marketing.
15. List all the kinds of government assistance offered to marketing in
your country. Will there be more of this in the future? How do you view
governmental involvement in marketing practices?

Write a composition on one of the following topics:

A. Which of the 13 most common failures listed by Nielsen do you
consider the most relevant to marketing practices in your country? Give
examples to illustrate at least two of these failures. Can you think of any
others which should be included in the list?
B. What has the effect of international trade been on your country?
What are your most important exported raw materials and final products? Is
the trend in your country toward more or less international marketing?
C. What effect have multinational firms had in your country? Is there
any national resistance? What is the relationship of marketing boards to
MNCs? Do you see a trend toward more or less cooperation between them?

91
 Vocabulary

To adhere твердо держаться,

придерживаться
To substitute for замещать; подставлять
To appraise оценивать
Ingenuity изобретательность, искусство
Encounter неожиданная встреча;
столкновение, стычка
Dimensions размеры, величина, объем,
протяжение
Scheme of vast dimensions план огромной важности,
огромного размаха
Mores нравы
Secular вековой, происходящий раз в
сто лет; светский
Accommodations приспособления; удобства;
соглашения
Facet грань, сторона /медали/; аспект
Renowned известный, знаменитый,
прославленный
Price equalization aid помощь в выравнивании цен
Asyndetically бессоюзно

92

Simple
I (you, they, we) work
He (she, it) works
Do you work? I do not ( don’t)
work
Does he work? He does not
(doesn’t) work
Употребляется:
1. Обычное, повторяю-
щеееся действие
He plays golf every Sunday.
2. Констатация факта,
утверждение
истины:
We sell our products into many
markets.
The sun rises in the East.
3. Характеристика чело-
века:
My sister sings very well.
4. Действие по графику,
расписанию
The train for London leaves at
9 p.m.
GRAMMAR REFERENCE
Continuous
To be + Participle I
I am working / Am I working?
He (she, it) is working / Is it working?
We (they, you) are working / Are you
working?
They are not working
Употребляется:
1.Действие в процессе в момент
речи:
What are you doing?- I’m trying to
find a file.
2.Действие в процессе
настоящее время, но не в момент
речи:
They are building a new office.
3. Ближайшее, запланированное
будущее:
She is leaving for Paris on Monday.
4.Временнoе действие:
They are staying at the Crill Hotel
until May.
5.Изменяющаяся ситуация:
The number of people using the
Internet is growing.
6. Повторяющееся действие;
раздражение:
We are always discussing it, but in
vain.
Ряд глаголов в Continuous не
употребляется
Perfect Perfect Continuous
To have + Participle II To have been + Participle I
I (you, we, they) have worked I (you, we, they) have been working
He ( she, it) has worked He ( she, it) has been working
Have you worked?- No, I have not Have you been working?
(haven’t) worked Has he been working?
Has he worked? – No, he has not (hasn’t) He has not been working.
worked Употребляется:
Употребляется: 1.Действие, которое началось в
1.Действие совершилось к наст. прошлом и продолжалось до
моменту и результат важен:It has настоящего момента и либо
broken down the barriers of geography закончилось к настоящему
в and time. моменту либо все еще
2. Новость:Our fax number has changed. продолжается.
3. Полученный жизненный опыт:He Exports have been growing steadily
has done many jobs in his time over the
4. Завершенное действие в будущем в past six months.
придаточных условия и времени ( Has he been waiting for me for a
после: when, if, as soon as etc)I can’t long time?
make a decision if I haven’t received all (since, for, how long)
the data
5. После: This is the first / second time:
It’s only the second time I’ve driven a car.
Показатели (ever, never, just, already,
lately, yet, for, since, recently)
93
V+ed или 2-я ф.неправ.гл.
I (you,/he/she/it/ they) worked
Did you work? He did not
work.
Употребляется:
1.Действие, совершенное в
прошлом и не связанное с
настоящим:
Radio was invented by Popov.
They launched this project in
1980.
2. Перечисление действий в
прошлом: She came home,
had supper, watched TV and
went to bed.
3. Повтор. действие в
прошлом:
He used to listen to music for
hours.
She would come and see me
every day.
I ( he, she, it )was working
They( you, we) were working
Were you working? – No, we were not
working.
Употребляется:
1. Действие в процессе в
определенный момент времени в
прошлом.
I was watching TV when my parents
arrived.
While their mother was cooking
dinner the children
were playing in the garden.
At 5 o’clock I was cooking , I was not
watching TV.
I( you, he, she, we, they, it) had worked I ( he, she, it, we ,they) had been
Had you worked? – No, we had not working
worked Had you been working? – No, we
Употребляется: had not been
1.Действие, которое произошло working.
раньше другого действия в прошлом, Употребляется:
либо закончилось к какому-то 1.Действие,которое
моменту в прошлом. происходило на протяжении
Had the film already started when you какого-то времени, до какого-то
came to the cinema? момента в про-
She had finished her work by 4 o’clock. шлом:
2. После выражений I wish, If only, She had to take a break because she
I’d rather had been
выражает действие, которое не working far too hard.
произошло: We had been waiting for him for
I wish I had been more interested in half an hour before he
English at came
School.
If only I had bought those shares!
I’d rather he had asked me before taking
my car.
В отрицательной форме выражает
сожаление по поводу содеянного)
He wishes he had not left his previous job.
(but he did)

94
Will/shall + infinitive без ” Will/shall be +Participle I Will have + Participle II Will/shall have been + Participle I
to”
She will be working at 10 o’clock She match will have finished at 10.30 She will have been working at this
I ( you, he, she, it, they) will tomorrow. Употребляется: problem for a month
bring you the book tomorrow. Will you be seeing her this evening? 1. Действие, которое будет when you visit us a second time.
He will come on time, don’t Употребляется: завершено в какой-то момент в Употребляется:
worry. 1. Действие которое точно будет будущем. Действие, которое начнется в
Употребляется: происходить в определенный At 9 o’clock we will have gone to work. будущем и будет про-
1. Обещание момент в будущем. 2. Действие совершиться к к-то должаться до какого-то
I’ll pay you back in a week. This time tomorrow I’ll be swimming моменту в будущем. момента в будущем в
2. Внезапное решение что- in the sea. The film will already have started by the течение некоторого времени.
то сделать (в момент речи) 2. Спрашивая о планах, если time we get to the cinema.
I’ll go and shut the window. хотите попросить сделать что-
It’s cold here. либо для Вас.
3. После выражений типа: Will you be passing a post-office.
I think; I believe; I suppose etc. When you are out?
I don’t think I’ll go out tonight. 3. Ближайшее запланированное
В вопросах с I, we – shall будущее (взаимозаменяемо с
Shall I go on? Present Continuous) What time will
your friends be arriving?

(What time are your friends arriving?)

95

Simple
I am invited
P You (we, they) are invited
R He (she, it) is invited
E Have you (we, they, I) been
S Are you invited?
E – No, I’m not invited.
N Is she invited?
T - No, she is not invited
I(he, she, it) was invited
P You (we, they) were invited
A
S Were they (you, we) invited?
T No, they were not invited.
Was he (she, it, I) invited?
No, he was not invited.
I (we) shall (will) be invited
F You (she, he, it, they) will be invited
U informed
T Shall I (we) be invited?
U No, we shall not (shan’t) be invited
R Will he (you, she, it, they) be invited
E No, he will not (won’t) be invited
СТРАДАТЕЛЬНЫЙ ЗАЛОГ
Continuous
I am being watched
You (we, they) are being watched
He (she, it) is being watched
Are you (we, they) being watched?
No, I am not being watched.
Is he (she, it) being watched?
No, he is not being watched
I (he, she, it) was being watched
You (we, they) were being watched
Was she (he, it, I) being watched?
No, she wasn’t being watched
Were they (you, we) being watched?
No, they weren’t being watched.
----------------------------
96
Perfect
I (you, we, they) have been informed
He (she, it) has been informed
informed?
No, we have not been informed
Has he (she, it) been informed?
No, he hasn’t been informed
We (I, you, they, she, he, it)
had been informed
Had you been informed?
No, I hadn’t been informed
I (we) will (shall) have been informed
They (you, she, he, it) will have been
Shall I have been informed?
No, I shan’t have been informed
Will they have been informed?
No, they won’t have been informed.
 Употребление страдательного залога

Употребление времен в страдательном залоге полностью

совпадает с употреблением времен в действительном залоге.
Так как в страдательном залоге действие производится не
подлежащим, а над подлежащим, и в основном, акцент делается на
самом действии, а не на деятеле, то деятель чаще всего опускается.
Деятель может вводиться предлогом by (одушевленный предмет) with
(неодушевленный предмет).
1) The company was founded in 1970 by my grandfather.
2) The letter is written with a pencil.

Способы перевода страдательного залога на русский язык

Существует несколько способов перевода страдательного залога с

английского языка на русский язык, например:
1. Самим страдательным залогом:
I was invited to the conference.
Я был приглашен на конференцию.

2. Неопределенно-личным предложением
I was invited to the conference.
Меня пригласили на конференцию.

3. Возвратными глаголами с окончанием на –ся

A lot of new hotels are built in Russia every year.
Каждый год в России строится много новых гостиниц.

Особенности употребления страдательного залога в английском

языке

В английском языке также как и в русском, страдательный залог

образуется от переходных глаголов. Но в отличие от русского языка,
некоторые глаголы допускают образование страдательного залога, как с
прямым, так и с косвенным дополнением. К ним относятся: to accord, to
advise, to allow, to ask, to award, to deny, to teach, to tell, to promise, to
order, to give etc.
I was shown the contract.
The contract was shown to me.
Мне показали контракт.

97
 Модальные глаголы (Modal verbs)

Модальные глаголы выражают отношение говорящего к

предполагаемому действию. Они имеют одну или две грамматические
формы (Present Simple, Past Simple) и сочетаются с инфинитивом без
частицы “to”. Исключение составляют модальные глаголы ought (to), to
be (to). Недостающие видовременные формы восполняются их
эквивалентами.

Present Simple Past Simple эквивалент

Can Could Be able (to)
May might To be allowed (to)
to be permitted (to)
Must - To have (to)
to be obliged (to)
Should - -
Ought (to) - -

Am/ is/ are (to) Was / were (to) -

CAN ( could) эквивалент – be able

Can выражает способность, возможность, недоверие, сомнение,

удивление.
1. Физическая или умственная способность (употребляется только
с Indefinite Infinitive)
He could understand 3 foreign languages when he was 5 years old.
Мы используем модальный глагол Can только когда речь идет об
общих физических способностях: see, hear, smell, taste, feel, understand.
Когда же говорится о какой-то определенной ситуации, то
употребляется эквивалент to be able, который по своему значению
ближе к глаголу manage.
He didn’t want to come, but we were able to persuade him.

2. Возможность (зависящая от обстоятельств)

Can I speak to Mr. Brown?
Sorry, he is not available.

3. Недоверие, сомнение, удивление (употребляется со всеми

формами инфинитива в вопросительных и отрицательных
предложениях)
But could he hate his job and still keep going there.

98
 Неужели он мог ненавидеть свою работу и продолжать ходить
туда?
Can she be waiting for us? - Может ли она нас ждать?
She cannot be waiting for us. - Не может быть, чтобы она нас
ждала.
Could (can) she have said that? - Неужели она это сказала?

4. Could несет в себе понятие сослагательного наклонения:

We could have dinner at a restaurant.
Мы могли бы пообедать в ресторане.

MAY (might) эквиваленты - to be allowed / to be permitted

May выражает разрешение, неуверенность, вероятность, упрек.

1. Разрешение. (В этом значении употребляется только Indefinite
infinitive).Здесь также возможно употребление модального глагола Can.
You may take these copies - Вам дают разрешение.
You can take these copies - Нет условий, которые помешали бы вам
сделать это.
Запрет может быть выражен несколькими способами:
May I read the letter? - No, don’t , please.
- No, you may not - No, you must not (зависимость от обстоятельств)

2. Неуверенность, предположение с оттенком сомнения.

(Используются все формы инфинитива). Might выражает большую
степень неуверенности, а также употребляется при согласовании времен.
They may or they may not agree to our terms of payment.
They might still be doing that business.
They said they might be interested in merging.

3. Вероятность, возможность. (Обычно используется Indefinite

infinitive). May употребляется только в утвердительных предложениях.
В этом значении возможно употребление can.
In these documents you may (can) find a lot of interesting things.

4. Упрек. В данном значении употребляется только might с Perfect

Infinitive.
You might have told me about it
You might lend me your car. (Употребление Indefinite Infinitive
выражает просьбу с оттенком упрека)

99
 MUST эквиваленты - to have (to) / to be obliged (to)

Must выражает обязанность, необходимость, запрет (в

отрицательной форме), предположение, граничащее с уверенностью.
1. Обязанность, необходимость.
He must work. He must earn money.
Must I go to the meeting? - Yes, you must -
- No, you needn’t (отсутствие необходимости)

2. Команда, запрет.
You must leave the room at once.
You must not do it.
2. Вероятность, предположение. Предположение, граничащее с
уверенностью, почти убежденность. (Употребляются все формы
инфинитива, но только в утвердительных предложениях).
They must have been marketing their products for five years already on
the world market. Evidently, she did not know my address. (В
отрицательных предложениях употребляется evidently)
Предположение, относящееся к будущему, не может быть
выражено через модальный глагол must. Вместо него используется
модальное слово probably или выражение to be likely.
They are not likely to delay the cargo. They will probably reroute the
vessel.

SHOULD, OUGHT (TO)

Модальные глаголы should и ought(to) часто взаимозаменяемы.

Они выражают совет. Глагол ought (to) по своему значению ближе к
модальному глаголу must, и выражает настоятельную рекомендацию.
You should use new methods in advertising.
You ought to use new methods in advertising.
Употребление этих модальных глаголов с Perfect Infinitive
выражает упрек.
You should have informed me beforehand.

TO BE (TO)

Модальный глагол to be (to) выражает долженствование по плану,

по договоренности и переводится на русский язык – должен.
We were to meet at 5, but he didn’t come.
Who is to go on business to London? – Mr. Smith is.

100
 Инфинитив (the Infinitive)

Инфинитив – это неличная (неизменяемая) форма глагола,

обладающая временными и залоговыми характеристиками.

Tense Voice
Active Passive
Indefinite to help To be helped

Continuous To be helping -

Perfect To have helped To have been helped

Perfect To have been helping -

Continuous

I am glad to help you Я рад помочь Вам

I am glad to be helped
I am glad to be helping
I am glad to have helped
I am glad to have been helping
I am glad to have been helped
Я рад, что мне помогут
Я рад, что помогаю
Я рад, что помог
Я рад, что помогая какое-то
время
Я рад, что мне помогли

**Perfect Infinitive
1. После глаголов to expect, to mean to hope, to intend (в Past
Indefinite) выражает действие, которое не совершилось вопреки
ожиданию, надежде, намерению:
I meant to have done it - Я предполагал сделать это.

2. Предположение - в сочетании с модальными глаголами must,

may.
My watch must have stopped.

3. Сожаление или упрек по поводу невыполненного действия

после модальных глаголов could, might, should.
You should have signed the contract.

101
 Функции инфинитива в предложении

1. Подлежащее
To keep the unit in operation is not very easy.
Поддерживать устройство в рабочем состоянии нелегко.
2. Часть сказуемого (составного именного и составного
глагольного)
To see is to believe. (Именное)
Увидеть – значит поверить.
We’ll have to launch a new advertising campaign. (Глагольное)
Нам придется запустить новую рекламную кампанию.

3. Дополнение
He likes to be introduced to famous people.
Ему нравится, когда его представляют знаменитостям.

4. Определение
The product to be advertised is of great importance to our company.
Товар, который надо разрекламировать, очень важен для нашей
компании.

5. Обстоятельство
To do the job well you must work hard.
Чтобы сделать работу хорошо вы должны усердно трудиться.

Герундий (The Gerund)

Герундий – это неличная форма глагола, сочетающая в себе

признаки глагола и существительного, следовательно, на русский язык
может переводиться как глаголом, так и существительным. В
нижеприведенной таблице представлены формы герундия.

Tense Active Voice Passive Voice

Indefinite Writing Being written
Perfect Having written Having been written

1. The Indefinite Gerund (active or passive) выражает действие

одновременное с действием глагола сказуемого.
No one could pass in or out without being seen.
Никто не мог войти и выйти незамеченным.
2. The Perfect Gerund обозначает действие, предшествующее
действию выраженному глаголом-сказуемым.

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 She denies having spoken with him.
Она отрицает, что разговаривала с ним.
3. Однако предшествующее действие не всегда выражается при
помощи the Perfect Gerund. Иногда, после глаголов to remember, to
excuse, to forgive, to thank, и после предлогов on, upon, after, without
можно также употреблять и the Indefinite Gerund.
I don’t remember discussing this problem with Mr. Brown before.
4. После глаголов to want, to need, to deserve, to require, to be worth
употребляется герундий в действительном залоге, несмотря на то, что он
несет страдательное значение:
They were not worth saving.
Их не стоило спасать.
The advertising campaign wants attending to, no doubt.
Несомненно, рекламной кампанией необходимо заняться.

Функции герундия в предложении

1. Подлежащее
Talking mends no holes.

2. Часть сказуемого (именная)

The only remedy for my headache is going to bed.

3. Дополнение
I love riding.

4. Определение
He was born with the gift of winning hearts.

5.Обстоятельство (всегда с предлогом)

After verifying all the documents the parties signed the contract.

Употребление герундия

1. После следующих глаголов и идиоматических выражений:

To avoid; to burst out; to deny; to enjoy; to excuse; to fancy (in
imperative sentences as an exclamation of surprise); to finish; to forgive; to
give up; to go on; to keep on; to leave off; to mind (in negative and
interrogative sentences only); to postpone; to put off; to suggest; cannot help
and others.
2. После следующих глаголов с предлогами:
To accuse of; to agree to; to approve of; to complain of; to depend on;
to feel like; to insist on; to look like; to object to; to persist in; to prevent
from; to rely on; to speak of; to succeed in; to suspect of; to thank for; to think
of; to look forward to.
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 3. После следующих существительных с предлогом:
Opportunity of; chance of; interest in; way of; possibility of;
experience in; hope of; reason for; idea of.
4. После следующих выражений с глаголом to be:
To be aware of ; to be busy in; to be capable of; to be fond of; to be
guilty of; to be indignant at; to be pleased at; to be proud of; to be sure of; to
be surprised at; to be worth (while).

Сложный герундиальный оборот

Сочетание герундия с предшествующим ему притяжательным

местоимением или существительным в притяжательном падеже
называется сложным герундиальным оборотом. Этот оборот как
самостоятельная единица может выполнять любые функции в
предложении. В зависимости от выполняемой функции сложный
герундиальный оборот переводится на русский язык соответствующим
придаточным предложением.
Например: Her being sent on business to London is quite unexpected
to us. –( подлежащее) То, что ее посылают в командировку в Лондон –
для нас полная неожиданность.
I heard of your friend’s having accepted our offer. – (дополнение).
Я слышал, что Ваш друг принял наше предложение.

Сложное подлежащее (Complex Subject)

Complex Subject состоит из существительного или местоимения в

именительном падеже и инфинитива, стоящего после сказуемого. Как
правило, этот оборот переводится на русский язык вводным
неопределенно-личным предложением. Например:
The product is known to be selling well.
Известно, что этот товар хорошо продается.
She doesn’t appear to have heard the news.
Похоже, она не слышала новость.
Сложное подлежащее употребляется только после определенных
глаголов:
1. To seem, to appear, to prove - в действительном залоге.
2. To think, to believe, to suppose, to consider, to know, to mean, to
expect, to say, to report, to find - в страдательном залоге.
3. to be sure, to be likely, to be certain.

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 Причастие ( the Participle)

Причастие – это неличная форма глагола, сочетающая в себе

свойства глагола, прилагательного, наречия. В английском языке
существуют причастие настоящего времени (Participle I) и причастие
прошедшего времени (Participle II).
Participle I
Participle Active Passive
Indefinite writing being written
Perfect having written having been written

Indefinite Participle (active and passive) выражает действие

одновременное с действием, выраженным глаголом-сказуемым.
Arranging a summit we faced many problems.
Организовывая встречу на высшем уровне, мы столкнулись с
множеством проблем. Perfect Participle (active and passive) выражает
действие, которое предшествует действию, выраженному глаголом -
сказуемым.
Having written a letter she decided not to post it.
Написав письмо, она решила не отправлять его.

Функции причастия в предложении

В предложении причастие может выполнять следующие функции:

1. Определение:
а) перед определяемым словом:
The dancing girl was very beautiful.
b) после существительных в причастных оборотах,
соответствующих определительным придаточным предложениям:
Who is that man speaking with my partner?

2. Обстоятельство (в функции обстоятельства соответствует

русскому деепричастию):
Knowing English well she translated the article without any difficulty.

3. Часть сказуемого:
He is watching TV now.

4. Часть сложного дополнения:

I heard him being invited to participate in the conference.

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 Participle II

1. От правильных глаголов совпадает с формой Past Simple (V+ed)

2. От неправильных глаголов – 3-я форма (broken, written)

Participle II (причастие прошедшего времени) от переходных

глаголов соответствует русскому страдательному причастию
настоящего или прошедшего времени (shown – показанный) и
употребляется в функции определения перед или после
существительных, как часть сказуемого (в страдательном залоге), а
также в качестве обстоятельства, чаще всего с союзами when if, unless
например:
The cup broken by you belonged to my sister.
Чашка разбитая вами принадлежала моей сестре
They were asked to wait.
Их попросили подождать.
When received the amount will be credited to your account.
Когда сумма будет получена ее переведут на Ваш счет.
Participle II от непереходных глаголов самостоятельно не
употребляется и служит для образования времен группы Perfect.

Независимый причастный оборот (the Absolute Participle

Construction)

Причастные обороты в функции определения и обстоятельства по

своему значению эквивалентны придаточным предложениям. Однако
замена придаточных предложений причастными оборотами в русском
языке возможна только в том случае, когда подлежащее главного и
придаточного предложений совпадают. Сравните:

Когда я слушаю музыку, я Слушая музыку, я работаю в

работаю в хорошем хорошем настроении.
настроении.

When I listen to music, I Listening to music I work in high

work in high spirits. spirits.

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 Но в английском языке в отличие от русского возможна замена
причастным оборотом и таких придаточных предложений, подлежащее
которых не совпадает с подлежащим в главном предложении. Например:

As everything was ready we Everything being ready we

launched our advertising launched our advertising
campaign. campaign.
Так как все было готово,
мы запустили рекламную -------------------
кампанию.

Следовательно, в английском языке есть обороты, имеющие свое

собственное независимое подлежащее. В этой конструкции причастие
выполняет предикативную функцию и служит как бы сказуемым к
своему собственному подлежащему. Такие обороты называются
независимыми и переводятся на русский язык придаточными
обстоятельственными предложениями.

Сложное дополнение (Complex Object)

Cложное дополнение представляет собой сочетание

существительного в общем падеже или местоимения в объектном и
инфинитива, выполняющего по отношению к ним предикативную
функцию. На русский язык переводится придаточным дополнительным
предложением. Например:

We did not expect him to come on time.

Мы не ожидали, что он придет вовремя.

После глаголов чувственного восприятия инфинитив

употребляется без частицы “to”. Возможно также употребление
причастия.

We heard them discussing marketing budget.

Мы слышали, как они обсуждали бюджет маркетинга.
(Неполнота действия, т.е. действие не закончено )
I saw him cross the road.
Я видела как он перешел улицу. (Полнота действия, т.е. действие
закончено)

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 Сослагательное наклонение (the Subjunctive Mood)

Сослагательное наклонение выражает субъективное отношение

говорящего к воображаемому или желаемому действию.

The Present Subjunctive (синтетическая форма)

Все глаголы в форме Present Subjunctive имеют форму инфинитива

без частицы “to”. Эта форма употребляется для выражения действия в
настоящем или будущем (крайне редко в основном в поэзии, в
документах, в научном тексте). Она также сохранилась в некоторых
устойчивых выражениях:

Be it so! Да будет так!

God forbid! Боже упаси!

The Past Subjunctive

Форма Past Subjunctive сохранилась только у глагола - to be –

were – для всех лиц. Однако, в современном английском языке,
особенно в американском варианте, наблюдается устойчивая тенденция
употреблять также и форму was. Остальные глаголы употребляются в
Past Simple.
В условном предложении эта форма обозначает нереальное
условие, относящиеся к настоящему или будущему. Например:

I wish I were a banker!

Эх, был бы я банкиром!

If I were you I should change the job.

Если бы я был на твоем месте, я бы поменял работу.

Аналитическая форма сослагательного наклонения

Аналитическая форма сослагательного наклонения состоит из

вспомогательных глаголов should, would, may, might, could +
инфинитив смыслового глагола.

Whatever you may do I hope it‘ll do good to our business.

Что бы Вы ни сделали, я надеюсь, это будет во благо нашего
дела.

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 Сложные предложения

В отличие от русского языка, где мы имеем только одну форму

сослагательного наклонения, в английском языке эти формы
варьируются в зависимости от того, к какому времени относится
нереальное условие и нереальное следствие.
1. Когда условие и результат относятся к настоящему или
будущему, то в условном предложении будет Past Simple, а в главном
предложении should /would + Simple (Indefinite) Infinitive смыслового
глагола.

If he were my husband I shouldn’t allow him to chase other women.

Если бы он был моим мужем, я бы не позволила ему ухлестывать за
другими женщинами.

If they had an opportunity to penetrate other markets they would do it

immediately.
Если бы у них была возможность проникнуть на другие рынки,
они бы сделали это немедленно.

2. Если условие и результат относятся к прошлому, то в условном

предложении будет Past Perfect, а в главном – should / would + Perfect
Infinitive смыслового глагола.

If I had consulted my own interests I should have never done it.

Если бы я руководствовался только своими интересами, я бы никогда
этого не сделал. (Но он сделал)

If he had bought those shares in 2000 he would have become a rich

man long ago. Если бы он купил те акции в 2000 году, он бы
давно стал богатым человеком.

3. Если условие относится к прошлому, а результат к настоящему

или будущему, то в условном предложении будет Past Perfect,а в
главном - should / would + Simple Infinitive.

If you had taken your medicine yesterday, you would be well now.

4. Если условие относится к настоящему или неопределенному

времени, а результат к прошлому, то в условном – Past Simple (Past
Subjunctive of “to be”), а в главном предложении should / would + Perfect
Infinitive.

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 If he were not so absent-minded he wouldn’t have mistaken you for
your sister.
Если бы он не был таким рассеянным, он не спутал бы Вас с
вашей сестрой.

Should употребляется для всех лиц, когда:

1. Подлежащее главного предложения выражено абстрактными

существительными wish, suggestion, aim, idea etc.
The company’s aim was that their goods should be sold everywhere.

2. После главного предложения типа: it is necessary, it is

important… etc.
It is necessary that he should have a meeting with his partners.

3. После слов: suggest, order, propose, advise, desire, be anxious, to

see to it.
The director orders that everything should be ready by Monday.

4. Если придаточное предложение цели вводится союзом lest

(чтобы не).
She opened the window lest it should be stuffy in the room.

Would употребляется для всех лиц когда:

Действие относится к настоящему или будущему и подлежащее
главного предложения не совпадает с подлежащим придаточного
предложения.
I wish we would wait for her.
I wish you would stay with me for a while.

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