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19. BUYERS, SELLERS AND THE MARKET

A) Customers and clients

People who buy 'everyday' services such as train travel or telephone services are called customers. You can also talk about the users or end-users of a product or service, who may not be the people who actually buy it. For example, when a company buys computers for its staff to use, the staff are the end-users.

People who buy products or services for their own use are consumers, especially when considered as members of large groups of people buying things in advanced economies.

B) Buyers and sellers

A person or organization that buys something is a buyer or purchaser. These words also describe someone in a company who is responsible for buying goods that the company uses or sells. These people are also buying managers or purchasing managers.

A person or organization that sells something is a seller. In some contexts, for example selling property, they are referred to as the vendor. People selling things in the street are street vendors.

C) The market

The market, the free market and market economy describe an economic system where prices, jobs, wages, etc. are not controlled by the government, but depend on what people want to buy and how much they are willing to pay.

D) Word combination with “market”

19.1 Find expressions in A and В opposite 'with the following meanings.

1 . Someone who buys food in a supermarket. (3 expressions) – customers, buyer, purchaser.

2 . All the people who buy food from a particular supermarket chain, from the point of view of the chain. – customer.

3 . Someone who buys the services of a private detective agency. – clientele.

4 . All the people who buy the services of a private detective agency, seen as a group. (2 expressions) - client base, clientele.

5 . Someone who sells goods or services. – Seller.

6 . Someone selling a house. (2 expressions) – seller, vendor.

7 . Someone buying a house, (2 expressions) – customer, buyer.

8 . Someone who sells hamburgers to tourists outside the Tower of London. – Vendor.

9 . Someone whose job is buying tires for a car company. (4 expressions) – buying manager, purchasing manager, buyer, purchaser.

10. Someone who uses a computer, even if they have not bought it themselves, but their company has. (2 expressions) – end-users, customers.

19.2 Complete the TV reporter's commentary with expressions from C and D opposite.

In China, all economic activity used to be controlled by the state. Prices were fixed by the government, not by buyers and sellers in the market (1) economy.  But in the last 20 years there has been a series of market (2) reforms that have allowed people to go into business and start their own companies. Markets (3) prices are determined by what buyers are willing to pay, rather than by the state. There are still state-owned companies that lose a lot of money. Until recently, they have been protected from market (4) pressures, but market (5) place will eventually mean that they close down. Of course, the market (6) economy has its losers: those without work, and victims of crime, which used to be very rare.

20. MARKETS AND COMPETITORS

A) Companies and markets

You can talk about the people or organizations who buy particular goods or services as the market for them, as in the 'car market", 'the market for financial services*, etc. Buyers and sellers of particular goods or services in a place, or those that might buy them, form a market.

20.1 Use the correct form of the words in brackets to complete the sentences.

20.2 Replace the underlined expressions with expressions from В opposite. You may need to add a verb in the correct form.

I'm Kalil and I'm marketing manager for Crazy Cola in a country called Newmarket. In this market, we (1) sell more than any other cola)) are market leader. In fact, we (2) have 55 per cent of the market)) have the highest market share. (3) Sales are increasing)) Market growth foots up from seven to eight percent per year. There are two main (4) groups of users)) market segments; those who drink it in cafes, bars and restaurants, and those who buy it to drink at home. Of course, many users belong to both groups, but this is our (5) way of dividing our consumers)) market segmentation.

20.3 Read this description of a language training market. Answer the questions.

In Paris, 500 organizations offer language training to companies. However, 90 percent of sales are made by the top five language training organizations. The market is not growing in size overall. Organization A has 35 percent of the market, and faces stiff competition from B, which has about 25 per cent of the market, and from C, D and E, who each have 10 per cent, but who are trying to grow by charging less for their courses.

21. Marketing and market orientation

A)     Marketing

Marketing is the process of planning, designing, pricing, promoting and distributing ideas, goods and services, in order to satisfy customer needs, so as to make a profit.

Companies point out how the special characteristics or features of their products and services possess particular benefits that satisfy the needs of the people who buy them.

Non-profit organizations have other, social, goals, such as persuading people not to smoke, or to give money to people in poor countries, but these organizations also use the techniques of marketing.

In some places, even organizations such as government departments are starting to talk about, or at least think about their activities in terms of the marketing concept.

21.1 Look at A and В opposite. Read the article and answer the questions.

Most people and many managers do not understand the role of marketing in modern business.

Marketing is two things. First, it is a strategy and set of techniques to sell an organization's products or services. This involves choosing target customers and designing a persuasive marketing mix to get them to buy. The mix may include a range of brands, tempting prices, convenient sales outlets and a battery of advertising and promotions» This concept of marketing as selling and persuasion is by far the most popular idea among both managers and the public.

The second, and by far more important concept of marketing, focuses on improving the reality of what is on offer. It is based on understanding customers' needs and developing new solutions which are better than those currently available. Doing this is not a marketing department problem, but one which involves the whole organization.

For example, for Rover to beat Mercedes for the consumer's choke involves engineering new models, developing lean manufacturing processes, and restructuring its dealer network. Creating company-wide focus on the customer requires the continual acquisition of new skills and technology. Marketing is rarely effective as a business function. As the chief executive of Hewlett Packard put it 'Marketing is too important to leave to the marketing department'. Such companies understand that everybody's task is marketing. This concept of marketing offering real customer value is what business is all about.

21.2 Match the sentence beginnings (1-5) with the correct endings (a-e). The sentences all contain expressions from C opposite

1. Farms are now more market-oriented

2. Since the 1980s, Britain has had a much more market-led

3. Many market-led growth businesses,

4. Lack of investment and market orientation

5. American TV is a market-driven industry,

a. such as Microsoft and Sony, are in several markets at once,

b. and the audience decides the direction it takes.

c. led to falling sales and profits.

d. and less dependent on government money.

e. approach to economics.

22. Products and brands

22.2        Look at the words in В opposite. Which applies to each of these products?

22.3        Complete this marketer's description of his work using expressions from C opposite.

TEXT 1. Introduction to Marketing Research.

Focus Vocabulary

Dissemination розповсюдження, роздача; to promote 1) підвищувати в чині (у званні); висувати; просувати; 2) сприяти, допомагати, підтримувати 3) заохочувати, стимулювати; активізувати; 4) рекламувати,

4. Go back to tire focus vocabulary entry with the headword promotion, look it through again, then do the following assignments: a) answer the questions; b) say/write it in English:

5. Match the verbs in column A with the phrases in column B.

6.  Look through the text and say whether it contains information on the following problems:

7.  Read the text about Marketing Research.

Marketing Research is the systematic and objective identification, collection, analysis, and dissemination of information for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing. Marketing Research helps businesses identify consumer needs and wants so a company can develop and promote products more successfully. Such research also provides the information upon which important advertising and marketing decisions are based.

Marketing Research and Programs Marketing research is a pivotal part of the marketing process. By referring to studies of prospective buyers' needs, wants, and tastes, providers of goods and services can tailor their marketing programs. The results of marketing studies suggest to sellers not only what they should sell or provide but also where to offer particular goods and services, how to advertise them, and how to set prices.

There are two types of research: qualitative and quantitative. To gain a general impression of the market, consumers, or the product, companies generally start with qualitative research. This approach asks open-ended rather than yes or no questions in order to enable people to explain their thoughts, feelings, or beliefs in detail. One of the most common qualitative research techniques is the focus group in which a moderator leads a discussion among a small group of consumers who are typical of the target market The discussion usually involves a particular product, service, or marketing situation. Focus groups can yield insights into consumer perceptions and attitudes but the findings cannot be applied to the whole market because the sample size is too small. Focus group results, then, are suggestive rather than definitive.

The insights generated by a focus group are often explored further through quantitative research, which provides reliable, hard statistics. This type of research uses closed-ended questions, enabling the researcher to determine the exact percentage of people who answered yes or no to a question or who selected answer a, b, c, or d on a questionnaire. One of the most common quantitative research techniques is the survey in which researchers sample the opinions of a large group of people. If the sample group is large enough and is representative of a particular group, such as executives who use cell phones, statisticians consider the findings statistically valid, which means that if all consumers in that particular category could be surveyed, the findings would still be the same. This means that quantitative findings are conclusive in a way that qualitative findings cannot be.

RETAILING

РОЗДРІБНА ТОРГІВЛЯ

Task 1. Read about meanings and usage of some key words in retailing.

In UK Shop is a general term for a place, where goods are sold. In Britain store is used mainly of a shop selling a variety of goods, a department store.

Stores (plural form with singular meaning) are also used of a small shop selling a wide variety of goods, for example, in a village. The same shop in a town may be called general stores.

In the USA store is a usual word for a place where goods are sold. The Americans explain to the British: "Our store is what you call a shop. In America a merchant will call his store a shop if he wants to give it an air of elegance".

Customers: people who buy 'everyday' services such as train travel or telephone services.

Consumers: people who buy products or services for their own use as consumers.

A person or organization that buys something is a buyer or purchaser.

A person or organization that sells something is a seller. Vendor is used of a person or organization that sells property. People selling things in the street are street vendors.

Exercise 1. Fill in the blanks with shop(s) or store(s).

Task 2.  Learn the key words and read about retailers. Make a list of in-store and non-stare retailers. Write a two/ three-sentence abstract of 'In Store Retailers'

In the chain of distribution, retailers service, the end customer, the consumer. Retailers range in size from small mom-and-pop operations to giants like Sears and K-Mart stores. Although individually owned stores account for 85 percent of all retail stores, they account for only slightly more than half of total retail sales. Retailers also vary in the services they offer and the merchandise they carry, as well as in their marketing approaches.

Retailers can be classified into two main types: іп-store retailers and non-store retailers

IN-STORE RETAILERS

In-store retailers maintain permanent locations where merchandise is regularly on display and available for purchase.

For centuries most merchandise was sold in marketplaces or by peddlers. In many countries, hawkers still sell their wares while travelling from one village to the next. Marketplaces are still the primary form of retail selling in these villages. This was also true in Europe until the Renaissance, when market stalls in certain localities became permanent and eventually grew into stores and business districts.

Retail chains are known to have existed in China several centuries before the Christian era and in some European cities in the 16th and 17th centuries. However, the birth of the modem chain store can be traced to 1859, with the inauguration of what is now the Great Atlantic & Pacific Tea Company, be. (A&P), in New York City. During the 15th and 16th centuries the Fugger family of Germany was the first to carry out mercantile operations of a chain-store variety. In 1670 the Hudson's Bay Company chartered its chain of outposts in Canada.

Department stores also were seen in Europe and Asia as early as the 17th century. The famous Bon Marche in Paris grew from a large specialty store into a full-fledged department store in the mid-1800s. By the middle of the 20th century, department stores existed in major U.S. cities, although small independent merchants still constitute the majority of retailers.

At present a department store is a retail establishment mat sells a wide variety of goods. These usually include women's and girls' ready-to-wear apparel and accessories, men's and boys' ready-to-wear apparel and accessories, yard goods and household textiles, small household wares, furniture, electrical appliances and accessories, and, often, food. These goods are separated into divisions and departments supervised by managers and buyers. There are also departmental divisions of merchandising, advertising, service, accounting, and budgetary control. The Bon Marche in Paris, which began as a small shop in the early 19th century, is often considered the first department store. The development of department stores was linked to the growth in the 19th century of large population centres, transportation, and the harnessing of electricity for power and lighting. During that century many general merchandise stores grew into department stores by broadening their stocks. In the United States in the 1920s some stores began opening branches in various cities. The first such chains were J.C. Penney and Sears, Roebuck.

Department stores such as Macy's and Jordan Marsh carry a wide range of merchandise, from fashion items to kitchen appliances and furniture. Department stores are service-oriented, offering delivery service, sales help, credit, and liberal return policies to customers. The department stores (including all their branches in shopping malls or in the suburbs) account for the bulk of total store sales.

Shopping malls, a late 20th-century development in retail practices, were created to provide for a consumer's every need in a single, self-contained shopping area. Although they were first created for the convenience of suburban populations, they can now also be found on main city thoroughfares.

One of the first open shopping centers built after World War П was Northgate Mall, which opened in 1950 near Seattle, Wash. It consisted of two rows of parallel stores with a department store at one end. It soon became customary for central-city department stores to locate branches in one or more malls.

The enclosed mall puts everything under one roof. Once customers park their cars and enter the mall, they need not go outside again until they are ready to go home. This type of mall is large, is completely enclosed from the weather, and has a controlled environment. In addition to free parking, many offer attractions other than shopping. They have various kinds of restaurants, motion-picture theatres, and other forms of entertainment.

The mall proprietors have used recreation and entertainment to attract customers. Movie theatres, holiday displays, and live musical performances are often found in shopping malls. In Asian countries, malls also have been known to house swimming pools, arcades, and amusement parks. Hong Kong's City Plaza shopping mall includes one of the territory's two ice rinks. Some malls, such as the Mall of America in Bloomington, Minn., U.S., may offer exhibitions, sideshows, and other diversions.

Neighborhood shopping malls are along many major roads, In the USA they are sometimes called strip malls, which consist of convenience and specialty stores such as drugstores, fast-food outlets, and grocery stores. The key to success for Де neighborhood mall is the convenience it provides to consumers in the immediately surrounding area, the neighborhoods that lie within a few minutes' driving time of the mall.

Community shopping malls may offer one or two medium-sized department stores. Because they offer more stores with a larger assortment of products and specialty items, community malls draw shoppers from a wider area than neighborhood malls do. Here, too, the mall management tries to achieve a balance in the mix of stores and products and will often stage special events such as shows and handicraft fairs to increase customer traffic.

Regional malls. With the growth of the suburbs, most large stores have followed the lead of Sears and Montgomery Ward, which pioneered the movement to branch stores in regional malls. In addition to branches of large department stores, regional malls may feature numerous specialty stores, restaurants, multiscreen movie complexes, national chain stores, and a range of franchise operations.

Located on major traffic arteries, regional malls compete effectively with, and frequently outdo, the downtown shopping areas. Marketing and advertising for regional malls is well coordinated, and many special events are held to attract consumers.

Convenience stores: Located primarily near residential areas, convenience stores are relatively small outlets that are open long hours and carry a limited line of high-turnover convenience products at high prices. Although many have added food services, consumers use them mainly for "fill-in" purchases, such as bread, milk, or miscellaneous goods.

Convenience stores, as the name implies, offer customers a number of specific conveniences in return for which they charge higher prices than supermarkets charge for the same items. But customers are willing 10 pay the higher price for the "conveniences," which include store location (convenience stores are nearby, serving the needs of a neighborhood), product variety (they are small but carry a limited variety of products), and store hours (they are open very long hours - some, like 7-EIeven stores, are open 24 hours a day).

Superstores: Superstores, hypermarkets, and combination stores are unique retail merchandisers. With facilities averaging 3,000 square meters, superstores meet many of the consumer's needs for food and non-food items by housing a full-service grocery store as well as such services as dry cleaning, laundry, shoe repair, and cafeterias. Combination stores typically combine a grocery store and a drag store in one facility, utilizing approximately 5,000 square meters of selling space.

Supermarket: A large retail store operated on a self-service basis, selling groceries, fresh produce, meat, bakery and dairy products, and sometimes an assortment of non-food goods. Supermarkets gained acceptance in the United States during the 1930s. The early stores were usually located in reconverted industrial buildings in outlying areas; they had no elaborate display facilities, and their primary advantage was their low prices. During the 1940s and '50s they became the major food marketing channel in the United States and in the 1950s spread through much of Europe. The extent to which they have succeeded in various countries has depended on the ability or willingness of producers and wholesalers to adapt their operations to large-scale retailing. The spread of supermarkets is part of a trend in the developed countries toward reducing costs and simplifying the pattern of marketing. During the 1960s, supermarkets appeared in developing countries in the Middle East, East Asia, and Latin America, where they appealed largely to upper middle income groups who had the necessary buying power and food-storage facilities.

Supermarkets Such as Safeway and A&P are the major sellers of food products in the United States. In addition in these national giants, independent smaller supermarket chains service regional areas. Supermarkets operate on the basis of high volume and low margins. Competition is on the basis of price. In addition to canned, fresh, processed, and frozen foods, they stock items such as paper goods, cleaning products, and toiletries.

Hypermarkets combine supermarket, discount, and warehousing retailing principles by going beyond routinely purchased goods to include furniture, clothing, appliances, and other items. Ranging in size from 7,000 to 20,000 square meters, hypermarkets display products in bulk quantities that require minimum handling by store personnel.

Hypermarkets are an outgrowth of the trend toward scrambled merchandising. Developed in Europe and still new to the United States, hypermarkets are large-scale outlets that combine features of both supermarkets and discount stores and offer, for example, everything from cabbage to domes dryers under one roof.

Discount store: in merchandising, retail store that sells products at prices lower than those asked by traditional retail outlets. Some, like department stores, offer wide assortments of goods; others specialize in such merchandise as jewellery, electronic equipment, or electrical appliances. Food stores also have been operated on the discount principle. Stores that are open only to certain groups, such as cooperatives or government employees, are often known as closed-door discount stores. Discount stores existed in the United States as early as the 1930s but matured only after World War П. They were successful because of the great post-war demand for consumer goods, because of their supermarket techniques, and because of the collapse of fair-trade laws that required distributors to sell at prices set by the manufacturers. Discount stores have spread worldwide, notably to Western Europe, Latin America, Australia, and Japan.

Discount stores, such as K-Mart, are self-service general-merchandise outlets offering products, including brand names, at lower prices. Discount stores have inexpensive decors, are open long hours, and offer limited services to reduce their expenses.

Specialty stores usually sell only one type of merchandise; for example, sporting goods and equipment Specialty stores are designed to meet the needs of a particular market segment Many are small, individually owned operations, but most of the larger specialty Stores are pan of a chain.

Chain stores are groups of stores owned by one individual or one company. The Limited, Toys "R" Us, and B, Dalton Booksellers are examples of well-known chain stores. Their competitiveness lies in their ability to respond to trends more quickly than the larger department stores.

Catalogue showrooms feature a wide assortment of merchandise, samples of which are displayed in the showroom. Merchandise is delivered from a warehouse attached to the showroom. Catalogue stores such as Service Merchandise and Best Products are able to offer discount prices by lowering their operating expenses: They employ fewer sales personnel, omit delivery expenses (customers pick up merchandise at the warehouse), lower display costs, and control shoplifting effectively.

Warehouse stores are minimal-service outlets mat carry large inventories of foods, home furnishings, building supplies, and so on. They are generally found in low-rent areas. In a warehouse store, merchandise may sit in packing cases on pallets, and customers may even be expected to supply their own paper bags or cartons to tote their purchases home.

Scrambled merchandising, a recent development, describes the odd mix of unrelated merchandise that a modern grocery store may offer in addition to traditional foods - for example, products such as motor oil, cosmetics, books and magazines, and houseware. Such stores may offer brand-name, generic, and unadvertised products.