Assignments. 7.3.1 Find sentences with the following words and word-groups

7.3.1 Find sentences with the following words and word-groups. Translate these sentences into Russian

- both … and; - rather; - to be whole;

- invisible; - nearly half of the cost; - PD costs.

7.3.2 Choose the necessary word and put it in the sentence

1) Physical Distribution (PD) is the transporting andstoring of goods to match target customers’ …. 2) PD is – and should be - … of marketing that is “invisible” to most customers. 3) A lot of individual marketing … have made good decisions in this area. 4) Most PD decisions involve … between costs, customer service level, and sales.

1. a part   2. trade-offs   3. needs   4. managers

7.3.3 Comment on the following statements:

PD is – and should be – a part of marketing that is “invisible” to most customers.

Most PD decisions involve trade-offs between costs, customer service level, and sales.

7.3.4 Analyze the sentences. Find the subject and the predicate. Translate the sentences into Russian

Whenever the product includes a physical good, place requires physical distribution.

Rather customers think in terms of the PD customer service level – how rapidly

and dependably a firm can deliver what they – the customers want.

7.3.5 Discussion questions. Consider the following questions with your felow-

-student and then with the whole group

Can you give the definition of PD?

What do customers usually care about?

What can you say about costs on PD activities?

What trade-offs do most PD decisions involve?

7.3.6 Retell the text in short using the following phrases: " The key-note of

the text is…", "The author comments on …", "It should be borne in mind that …"

7.3.7 Read the following words and word-groups used in text B and try to guess the main idea of the text:

- transporting; - time and place utilities; - cost; - freight movement; - the best transporting alternative;

- to hold goods; - inventory; - mass production; - to store the unsold quantity; - to keep stocks.

7.4 Text B. (Scan the text and say whether there is an answer to the question in it: “What marketing function is necessary when production of goods doesn’t match consumption?”)

Transporting is the marketing function of moving goods. It provides time and place utilities. However, the value added to products by moving them must be greater than the cost of the transporting – or there is little reason to ship in the first place. Transporting can help achieve economies of scale in production.

There are five basic modes of freight movement: railroads, trucks, waterways, pipelines, and airplanes.

The transporting function should fit into the whole marketing strategy. But picking the best transporting alternative can be difficult. What is “best” depends on the product, other physical distribution decisions and what service level the company wants to offer.

Storing is the marketing function of holding goods. It provides time utility. Inventory is the amount of goods being stored.

Storing is necessary when production of goods doesn’t match consumption. This is common with mass production. Changing the production line can be costly and time-consuming. It is often cheaper to produce large quantities of one size – and store the unsold quantity – than to have shorter production runs. Thus, storing goods allows the producer to achieve economies of scale in production. Storing allows producers and middlemen to keep stocks at convenient locations – ready to meet customers’ needs. In fact, storing is one of the major activities of some middlemen.

7.4.1 Entitle the text

7.4.2 Render the text in Russian

7.4.3 Guess a term for which each phrase can be substituted:

a) The marketing function of moving good; b) The marketing function of holding goods; c) Having the product available where the customer wants it; d) Obtaining a product and having the right to use or consume it.

1) place utility; 2) possession utility; 3) transporting; 4) storing.

7.4.4 Put general and special questions to each sentence:

Transporting provides time and place utilities.

Changing the production line can be costly and time-consuming.

The transporting function should fit into the whole marketing strategy.

Storing goods allows the producer to achieve economies of scale in production.

7.4.5 Compose three disjunctive questions based on the text

7.4.6 Exhibit 11 illustrates the two main marketing functions of moving goods

PD

Transporting Storing

Time and place utilities Time utility