Английский язык. Практический курс для решения бизнес-задач

Exercise 2. Read and translate the text. Find Russian equivalents for different terms used to describe price. Make sentences of your own with each term.

Price is probably the most flexible variable in the marketing mix. Marketers can usually adjust their prices more easily and more quickly than they can change any other marketing mix variable. To a buyer, price is the value placed on what is exchanged. Something of value – usually purchasing power – is exchanged for satisfaction or utility. Purchasing power depends on a buyer’s income, credit and wealth. It is a mistake to believe that price is always money paid or some other financial consideration. In fact, trading of products – barter – is the oldest form of exchange. Money may or may not be involved.

Price is expressed in different terms for different exchanges. For instance, automobile insurance companies charge a premium for protection from the cost of injuries or repairs stemming from an automobile accident. An officer who stops you for speeding writes a ticket that requires you to pay a fine. If a lawyer defends you, a fee is charged, and if you use a railway or taxi, a fare is charged. A toll is charged for the use of bridges or turnpikes. Oil companies pay pipeline tariffs for oil transportation, and households pay electricity and gas tariffs.

Rent is paid for the use of equipment or an apartment. A

commission is remitted to an agent for the sale of real estate. Dues are paid for membership in a club or group. A deposit is made to hold or lay away merchandise. A tip helps pay waitresses or waiters for their services. Interest is charged for the loan that you obtain, and taxes are paid for government services. Scientists are paid honorariums for research papers they write, and authors of bestsellers are paid royalties by their publishers. The value of many products is called price. Although price may be expressed in many different ways, it is important to remember that the purpose of this concept is to quantify and express the value of the items in the market exchange.

Source: Marketing. Concepts and Strategies. 6th edition.

William M. Pride and O.C. Ferrell,

Houghton Mifflin Company, 1989, p. 562.

Exercise 3*. Find in the text 8 English equivalents of the Russian words «цель», «задача» and make sentences of your own using them.

Exercise 4*. Fill in the blanks using terms given below.

The Product Life Cycle

A new product……… through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the……….. and the…………

Introduction Stage

The firm seeks to build………. and develop a market for the product. The impact on the marketing mix is as follows:

– Product………. and quality level is established, and intellectual property protection such as……… and……….. are obtained.

– Pricing may be………… to build………. rapidly, or………… to recover…………..

– Place (distribution) is………. until consumers show acceptance of the product.

– Promotion is aimed at……… and………. Marketing………… seek to build product awareness and to educate potential consumers about the product.

Growth Stage

The firm seeks to build………….. and increase market share.

– Product quality is maintained and additional……….. and support services may be added.

– Pricing is maintained as the firm enjoys increasing……… with little competition.

– Place (distribution channels) are added as demand increases and customers accept the product.

– Promotion

is aimed at broader………

Maturity Stage

The strong growth in sales……… Competition may appear with similar products. The primary………. at this point is to defend market share while……… profit.

– Product features may be enhanced to……… the product from that of competitors.

– Pricing may be lower because of new competition.

– Place (distribution) becomes more intensive and………. may be offered to encourage preference over competing products.

– Promotion ……… on product differentiation.

Decline Stage

As sales decline, the firm has several options:

–……… the product, possibly rejuvenating it by adding new features and finding new uses.

–Harvest the product —………. and continue to offer it, possibly to a…………