Assignments. 5.3.1 Explain the meaning of the following terms in Russian:

5.3.1 Explain the meaning of the following terms in Russian:

- final customer (user); - marketing specialists; - target customers; - place utility; - possession utility; - middlemen;

- a channel of distribution; - directed-to user channels; - service firms; - the whole distribution job; - indirect channel systems; - in the right location.

5.3.2 Find in the text:

a) sentences which emphasize the importance of Place as one of the marketing

mixes;

b) the definition of a channel of distribution;

c) the sentence which explains why producers usually have to use middlemen.

5.3.3 Answer the following questions:

Why is Place so important to a successful marketing strategy?

What marketing specialists do producers usually need?

Some producers handle the whole distribution job themselves, don't they? Why?

Why do producers have to use middlemen?

5.3.4 There are four paragraphs in the text. The statements given below cover the main issues of the text. In which order do they come in it? Write the numbers in the boxes:

Some producers prefer to sell to the final user.

Managers must think about Place.

Producers must join or develop one of the indirect channel systems.

Place requires marketing specialists.

5.3.5 State in which sentences the verb " have" has the meaning of obligation:

Managers have to think about place - making products available in the right quantities - when customers want them.

Typically, producers have to use middlemen - like it or not.

Some producers don't want to rely on independent middlemen - who have different objectives.

Marketing managers have to rely on marketing research.

5.3.6 Retell the text using Exhibit 8 and keeping in mind that:

Place (placement) is the path between a product and its customers.

Product

Placement

Customers

Exhibit 8

5.3.8 Check how you have learned the Infinitive constructions. Choose the correct variant of translation

1 Decisions to be made by these marketing managers will work pretty well.     2 A customer wants his Lay's potato chips to be whole but not crushed into crumbs from rough handling in a warehouse.   3 Specialists are known to come together to form a channel of distribution.

a) Решения, принятые этими управ-ляющими маркетингом, очень эффективны. б) Решения, которые должны быть приняты этими управляющими маркетингом, будут очень эффективными.   а) Покупатель хочет, чтобы его карто-фельные чипсы Lay's были целыми, а не превращались в крошки из-за небрежного обращения на складе. б) Покупатель неохотно приобретает картофельные чипсы Lay's, если они превратились в крошки из-за небрежного обращения на складе.   а) Известно, что специалисты объединяются, чтобы создать канал распределения. б) Специалистам известно, что надо объединяться для создания канала распределения.

5.4 Text B. Indirect Channel Systems. (Scan the text and say in which paragraph you can find the information about:

- the idea of traditional channel systems;

- the main focus of vertical marketing systems;

- the number of the vertical marketing systems;

- the idea of contractual channel systems)

1. Indirect channels may be best, sometimes. Traditional channel systems are common.

In traditional channel systems the various channel members make little or no effort to cooperate with each other. They buy and sell from each other, that's all. Each channel member does only what it considers to be in its own interest. It doesn't worry much about the effect of its policies on the members of the channel.

2. In contrast to traditional channel systems are vertical marketing systems -channel systems in which the whole channel focuses on the same target mix - the end of the channel. Vertical marketing systems focus on final customers. Such systems make sense - and are growing - because if the final customer doesn't buy the product, the whole channel suffers.

3. There are three types of vertical marketing systems - corporate, administered, and contractual. With corporate channel systems - corporate ownership all along the channel - we might say the firm is going "direct".

4. Corporate channel systems are often developed by vertical integration - acquiring firms at different levels of channel activity. Firestone, for example, has rubber plantations in Liberia, tire plants in Ohio, and Firestone wholesale and retail outlets all over the United States. There are many possible advantages to vertical integration - stability of operations, better control of distribution, better quality control, greater buying power etc.

5. In administered channel systems, the channel members informally agree to cooperate with each other. They can agree to standardize accounting, and coordinate promotion efforts.

6. In contractual channel systems, the channel members agree by contract to cooperate with each other. With both of these systems, the members achieve some of the advantages of corporate integration while retaining some of the flexibility of a traditional channel system.

Vertical marketing systems are a new wave in the marketplace.

5.4.1 Find English equivalents for the following Russian phrases. Make up sentences with these phrases

- традиционные системы каналов распределения;

- не очень беспокоиться о …;

- вертикальные маркетинговые системы;

- корпоративные системы каналов;

- возможные преимущества;

- управляемые системы каналов;

- договорные системы каналов;

- преимущества корпоративной интеграции.

5.4.2 Complete the following sentences choosing the necessary variant in the right column:

1. In traditional channel systems each channel member … 2. There are three types of … 3. Vertical marketing systems … 4. There are many possible advantages to … 5. In administered channel systems, the channel members can agree …

a) vertical integration. b) make sense and are growing. c) to standardize accounting, and coordinate promotion efforts. d) does only what it considers to be in its own interest. e) vertical marketing systems.

5.4.3 Translate paragraphs 3-6 in written form

5.4.4 Comment on the following statements:

Vertical marketing systems focus on final customers.

With corporate channel systems the firm is going "direct".

Vertical marketing systems are a new wave in the marketplace.

5.4.5 a) Exhibit 9 illustrates different kinds of indirect channel systems

Indirect channel systems

traditional vertical

corporate administered contractual

Exhibit 9 Indirect channel systems

b) Work in pairs. (Discuss indirect channel systems with your fellow-student using Exhibit 9)

5.5 Text C. How to recruit middlemen. (Read the text attentively and find an answer to the question: - What is the difference between pushing and pulling?)

A producer has a special challenge ensuring that the product reaches the end of the channel.

To reach its target market, a producer may have to recruit middlemen.

The two basic methods of recruiting middlemen are pushing and pulling.

Pushing (a product through a channel) means using normal promotion efforts- personal selling, advertising, and sales promotion - to help sell the whole marketing mix to possible channel members. The producer in effect tries to develop a team that will work well to "push" the product down the channel to the final customer.

By contrast, pulling means getting consumers to ask middlemen for the product. This usually involves highly aggressive and expensive promotion to final consumers or users - perhaps using coupons or samples - and temporary bypass of middlemen. Such an approach is risky. But if the promotion works the middlemen are forced to carry the product to satisfy customer requests.

5.5.1 Put five questions of different types to each sentence (general, special, alternative, disjunctive, to the subject):

The producer develops a team of middlemen for pushing the product down the channel to the final customer.

Pulling means getting consumers to ask middlemen for the product.

5.5.2 Speak on the main points of the three texts of the unit a) in detail;

b) in short.

5.5.3 Check if you remember the active vocabulary of the unit. Choose the Russian equivalents for the English ones:

1 order; 2 objective; 3 utility; 4 pushing; 5 ownership; 6 middleman; 7 flexibility; 8 effort; 9 place; 10 flow; 11 channel; 12 transaction; 13 quantity; 14 advantage; 15 to cooperate.

1 канал; 2 «проталкивание»; 3 количество; 4 усилие; 5 размещение; 6 цель; 7 сделка; 8 заказ; 9 преимущество; 10 поток; 11 покупатель; 12 полезность; 13 влияние; 14 собственность; 15 качество; 16 гибкость; 17 учет; 18 комиссионер; 19 полагаться; 20 сотрудничать.

Unit

The Problem Area of the Unit: Grammar:

What is the aim of retailing? Participle I,II

What is the relationship between

retailing and wholesaling?