Place, or where the product is made available, is most commonly referred to as distribution. When a product moves along its path from producer to consumer, it is said to be following a channel of distribution. To deliver goods to ultimate consumers, manufacturers may use two types of marketing: multilevel marketing and direct marketing. To use multilevel marketing means to employ some marketing intermediaries, who constitute channel participants and help manufacturers meet consumer needs. But in this case, manufacturers lose control over sales and do not receive some profit because they have to pay intermediaries for their work. Because of this multilevel delivery, some sellers decide to skip steps in the channel and instead market directly to buyers through direct marketing. Direct marketing consists of database marketing, direct mail marketing, catalogue marketing, telephone marketing, television marketing, Internet marketing, and door-to-door marketing. Database marketing provides the seller with information about his potential customers. Direct mail marketing is used when the seller's offer is made through mail, and by mail the buyer places an order. Sellers can send catalogues to potential customers who are expected to choose necessary goods and order them. Sellers may telephone people to see if they want to buy something. Sellers can broadcast commercials usually with feedback channels on television, and wait until the buyer orders desirable goods from his home. Sellers may send messages about their goods to potential customers by e-mail in order to convince them to make a purchase. Door-to-door selling means visiting each house in a street or area to sell goods or services.
II. Answer the questions:
1. What types of marketing may manufacturers use in order to deliver goods to ultimate consumers? 2. What marketing do manufacturers use when they employ marketing intermediaries? 3. Who helps manufacturers meet consumer needs? 4. When do manufacturers lose control over sales? 5. When do not manufacturers receive any profit? 6. What marketing do manufacturers use when they market directly to buyers? 7. What does direct marketing consist of? 8. What information does database marketing provide the seller with? 9. When is direct mail marketing used? 10. What is meant by the term "catalogue marketing"? 11. What is meant by the term "telemarketing"? 12. What marketing is used when sellers broadcast commercials on television?
Text 6
I. Read and translate the text:
PROMOTION
Promotion is a set of activities done in order to increase the sales of a product or service. The major tools of promotion are sales representatives, advertising, sales promotion, and public relations. Sales representatives are the most expensive means of promotion, because they require income, expenses, and supplementary benefits. However, their ability to personalize the promotion process makes sales representatives most effective at selling big-ticket items or highly personal goods — for example, those related to religion or insurance. Sales representatives are trained to make presentations and answer objections. Advertising as a tool of promotion is divided into print advertisements and broadcast advertisements. Print advertisements include newspapers, magazines, billboards, flyers, and posters. Broadcast advertisements consist of audio or video narratives. To increase sales, companies have to make discounts for their constant middlemen, to provide their salespeople with premiums and extra holidays, and to organize free-of-charge distribution of goods or gifts for their potential customers. Public relations as a tool of promotion is to create favourable public opinion for a company and for its goods or services. Public relations specialists create publicity by arranging press conferences or through newspapers, magazines, radio, and television. A publicist's functions include optimizing good news and forestalling bad news. If disaster strikes, the publicist must assess the situation and minimize damage to his company's image.
II. Answer the questions:
1. What is meant by the term "promotion"? 2. What are the major tools of promotion? 3. Sales representatives are the most expensive means of promotion, aren't they? 4. What do sales representatives require? 5. What makes sales representatives most effective at selling big-ticket items or highly personal goods? 6. What are sales representatives trained to make? 7. What is advertising as a tool of promotion divided into? 8. What do print advertisements include? 9. What do broadcast advertisements consist of? 10. What do companies have to do in order to increase sales? 11. What is the main task of public relations as a tool of promotion? 12. What do public relations specialists create publicity by?
CUSTOMERS
A customer is someone who buys goods or services from a shop or company. Customers can be divided into two categories: consumer customers, who purchase goods and services for use by themselves and by those with whom they live; and business customers, who purchase goods and services for use by the organization for which they work.
Text 7
I. Read and translate the text:
CONSUMER CUSTOMERS
Consumer customers are ones who purchase goods and services for use by themselves and by those with whom they live. Consumer buying is need-driven, that is, it is usually initiated when a consumer becomes aware of a need. This awareness may come from an internal source such as hunger or an external source such as marketing communications. Awareness of such a need motivates the consumer to search for information about options with which to fulfill the need. This information can come from commercial sources, public or government sources, or the consumer's own experience. Once alternatives have been identified through these sources, consumers evaluate the options, paying particular attention to those attributes the consumer considers most important. Evaluation culminates with a purchase decision, but the buying process does not end here. After a purchase has been made, a satisfied consumer is more likely to purchase another company product and to say positive things about the company or its product to other potential purchasers. The opposite is true for dissatisfied consumers. Because of this fact, many companies continue to com- municate with their customers after a purchase in an effort to influence post-purchase satisfaction and behaviour. Thus, consumer buying includes information search, evaluation of alternatives, purchase decision, and post-purchase evaluation.
II. Answer the questions:
1. What is meant by the term "consumer customer"? 2. Is consumer buying need-driven? 3. When is consumer buying initiated? 4. What sources may the awareness of a need come from? 5. What does the awareness of a need motivate the consumer to do? 6. What sources can the information about options with which to fulfill the need come from? 7. How do consumers evaluate the options? 8. What does the evaluation of options culminate with? 9. Consumer buying does not end with a purchase decision, does it? 10. What is a satisfied consumer likely to do after a purchase has been made? 11. What is a dissatisfied consumer likely to do after a purchase has been made? 12. Why do many companies continue to communicate with their customers after a purchase?