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Exercise 1. Answer the following questions.
1. What is the difference between marketing and selling? 2. What should a company do to develop a forecast of sales revenues? 3. What independent variables are included in the marketing mix? 4. What main challenge do you face when you develop the marketing mix? 5. How do different categories of professionals perceive a product of their company? 6. What are the most common pricing strategies? 7. How do companies identify distribution channels? 8. What is the difference between promotion and marketing?
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.
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