PRODUCTS AND BRANDS

Reading: Read the following text, and write a brief heading for each paragraph.

1. __________________

Marketing theorists tend to give the word products very broad meaning, using it to refer to anything capable of satisfying a need or want. Thus services, activities, people (politicians, athletes, film stars), places (holiday resorts), organizations (hospitals, colleges, political parties), and ideas, as well as physical objects offered for sale by retailers, can be considered as products. Physical products can usually be augmented by benefits such as customer advice, delivery, credit facilities, a warranty or guarantee, maintenance, after-sales service, and so on.

2. __________________

Some manufacturers use their name (the 'family name') for all their products, e.g. Philips, Colgate, Yamaha. Others, including Unilever and Procter & Gamble, market various products under individual brand names, with the result that many customers are unfamiliar with the name of the manufacturing company. The major producers of soap powders, for example, are famous for their multi-brand strategy which allows them to compete in various market segments, and to fill shelf space in shops, thereby leaving less room for competitors. It also gives them a greater chance of getting some of the custom of brand-switchers.

3. __________________

Most manufacturers produce a large number of products, often divided into product lines. Most product lines consist of several products, often distinguished by brand names, e.g. a range of soap powders, or of toothpastes. Several different items (different sizes or models) may share the same brand name. Together, a company's items, brands and products constitute its product mix. Since different products are always at different stages of their life cycles, with growing, stable or declining sales and profitability, and because markets, opportunities and resources are in constant evolution, companies are always looking to the future, and re-evaluating their product mix.

4. __________________

Companies whose objectives include high market share and market growth generally have long product lines, i.e. a large number of items. Companies whose objective is high profitability will have shorter lines, including only profitable items. Yet most product lines have a tendency to lengthen over time, as companies produce variations on existing items, or add additional items to cover further market segments. Additions to product lines can be the result of either line-stretching or line-filling. Line-stretching means lengthening a product line by moving either up-market or down-market, i.e. making items of higher or lower quality. This can be carried out in order to reach new customers, to enter growing or more profitable market segments, to react; to competitors’ initiative, and so on. Yet such moves may cause image problems: moving to the lower end of a market dilutes a company's image for quality, while a company at the bottom of a range may not convince dealers and customers that it can produce quality products for the high end. Line-filling - adding further items in that part of a product range which a line already covers - might be done in order to compete in competitors' niches, or simply to utilize excess production capacity.

Vocabulary: Find words or expressions in the text which mean the following.

1 the possibility of paying for a product over an extended period

2 a promise by a manufacturer or seller to repair or replace defective goods during a certain period of time

3 a surface in a store on which goods are displayed

4 consumers who buy various competing products rather than being loyal to a particular brand

5 the standard pattern of sales of a product over the period that it is marketed

6 the extent to which an activity provides financial gain

7 possibilities of filling unsatisfied needs in sectors in which the company can produce goods or services effectively

8 the sales of a company expressed as a percentage of total sales in a given market

9 the set of beliefs that the public at large holds of an organization

10 a small, specialized, but profitable segment of a market

Date: 2015-01-29; view: 1467