Pre-Text Exercises. 7.1.1 Memorize the following words and word-groups from the texts of the unit:

7.1.1 Memorize the following words and word-groups from the texts of the unit:

physical distribution storing to deliver warehouse invisible cost costs utility trade-off value to add to ship   economies of scale   freight short production run to keep stocks

- товародвижение - хранение - доставлять - склад - невидимый - стоимость; себестоимость - расходы; издержки; затраты - полезность - компромисс; уступка - стоимость - добавлять - перевозить любым видом транс- порта - экономика, обусловленная масшта- бами производства - фрахт; груз - небольшая партия изделий - держать запасы товаров

7.1.2 Guess the meaning of the underlined international words in the following

word-groups. State the parts of speech they belong to:

individual firm; PD activity; the cost of the transporting; to minimize the cost; to be coordinated as one system; economies of scale in production; the finished product; basic model; the best transporting alternative; production line.

7.1.3 Translate the following groups of nouns:

Model: production line – производственная линия;

customer service – обслуживание покупателей.

- distribution decisions; - target customer; - target customers’ needs; - service level; - customer service level; - production run;

- potato chips; - snack bar; - possession utility; - channel system; - repair parts; - copy machine repair parts.

7.1.4 Connect each pair of synonyms:

- costly; - to demand; - target; - goods; - need; - to focus; - transporting; - customer; - producer; - rapidly.

- manufacturer; - to concentrate; - quickly; - buyer; - to require; - objective; - commodities; - want; - moving; - expensive.

7.1.5 Some English words can operate in a sentence both as a verb and a noun. Provide a proper word from the boxes in the following sentences:

verb	noun
help – помогать mean – значить need – нуждаться	help – помощь means – средство needs –нужды

Transporting can _____ achieve economies of scale in production.

Marketing managers should meet their customers’ _____.

Many companies usually rely on ____ from a Marketing Information System.

The marketing concept _____ that an organization aims all its efforts at satisfying its customers’ ____ at a profit.

Computer is a good ____ of communication between a customer and a firm.

What does this really _____?

7.1.6 a) Translate the following sentences. Pay attention to the use of the same form both in the function of an attribute and as predicate

The firm delivered the repair parts rapidly.

The cars delivered by the firm were made in Japan.

The firm provided both time and place utility.

Place utility provided by the firm required PD decisions.

Marketing managers made most PD decisions.

Decisions made by the marketing managers were really good.

b) Translate both sentences into English:

Фирма разработала новый товар.

Товар, разработанный фирмой, будет дороже.

7.2 Text A. Physical Distribution. (Read the text and try to understand it to be able to do the assignments that follow)

Choosing the right channel of distribution is crucial in getting products to the target market’s Place. But that alone is usually not enough to assure that products are available at the right time and in the right quantities. Whenever the product includes a physical good, place requires physical distribution decisions.

Physical Distribution (PD) is the transporting and storing of goods to match target customers' needs with a firm’s marketing mix – both within individual firms and along a channel of distribution.

Customers don’t care how a product was moved or stored. Rather customers think in terms of the PD customer service level – how rapidly and dependably a firm can deliver what they – the customers want. What does this really mean? It means that you want your Lay’s potato chips to be whole when you buy a bag at the snack bar - not crushed into crumbs from rough handling in a warehouse. PD is – and should be – a part of marketing that is “invisible” to most customers.

Nearly half of the cost of marketing is spent on PD activities. They are very im-

portant to the firm – and to the macro-marketing system. Possession utility is not possible until time and place utility have been provided.

Usually we don’t think much about physical distribution. This probably means that a lot of individual marketing managers have made good decisions in this area. But it doesn’t mean that the decisions are always clear-cut or simple.

Most PD decisions involve trade-offs between costs, customer service level, and sales. Providing a higher service level will increase PD costs. The higher cost of PD may result in a higher price to the customer.