Transcript U2W09_SU10_Lesson_07 - U2W09-2010

Business English Upper Intermediate
U2W09
John Silberstein
[email protected]
Agenda
•4P’s: Place
•Describing Graphs
Marketing
4P’s: Place
When we speak about the 4P’s and
we speak about Place, we are really
talking about where a company
sells its products and how they get
the product to the customer.
Marketing
4P’s: Place
Narrow vs. wide reach: The extent
to which a firm should seek narrow
(exclusive) vs. wide (intense)
distribution depends on a number of
factors. One issue is the
consumer’s likelihood of switching
and willingness to search.
Marketing
4P’s: Place
For example, most consumers will switch
soft drink brands rather than walking from
a vending machine to a convenience store
several blocks away, so intensity of
distribution is essential here. However, for
sewing machines, consumers will expect
to travel at least to a department or
discount store, and premium brands may
have more credibility if they are carried
only in full service specialty stores.
Marketing
4P’s: Place
Retailers involved in a more exclusive
distribution arrangement are likely to be
“loyal”—i.e., they will tend to:
Recommend the product to the customer
and thus sell large quantities;
Carry larger inventories and selections;
Provide more services
Marketing
4P’s: Place
Thus, for example, Compaq in its early history instituted
a policy that all computers must be purchased through a
dealer. On the surface, Compaq passed up the
opportunity to sell large numbers of computers directly to
large firms without sharing the profits with dealers. On
the other hand, dealers were more likely to recommend
Compaq since they knew that consumers would be
buying these from dealers. When customers came in
asking for IBMs, the dealers were more likely to indicate
that if they really wanted those, they could have them—
“But first, let’s show you how you will get much better
value with a Compaq.”
Marketing
4P’s: Place
Direct vs. Indirect Marketing
Direct Marketing:
The manufacturer sell directly to the
end user (consumer).
Indirect Marketing:
The Manufacturer selling to the end
user through intermediaries.
Marketing
4P’s: Place
Direct vs. Indirect Marketing
Direct Marketing:
The manufacturer sell directly to the
end user (consumer).
Indirect Marketing:
The Manufacturer selling to the end
user through intermediaries.
Marketing
4P’s: Place
Direct vs. Indirect Marketing
Direct Marketing:
The manufacturer sell directly to the
end user (consumer).
Indirect Marketing:
The Manufacturer selling to the end
user through intermediaries.
Marketing
4P’s: Place
You cannot save money by “eliminating the
middleman” because intermediaries specialize
in performing certain tasks that they can
perform more cheaply than the manufacturer.
Most grocery products are most efficiently sold
to the consumer through retail stores that take
a modest mark-up—it would not make sense
for manufacturers to ship their grocery
products in small quantities directly to
consumers.
Marketing
4P’s: Place
Intermediaries perform tasks such as:
Moving the goods efficiently (e.g., large quantities are moved from
factories or warehouses to retail stores);
Breaking bulk (manufacturers sell to a modest number of
wholesalers in large quantities—quantities are then gradually
broken down as they make their way toward the consumer);
Consolidating goods (retail stores carry a wide assortment of
goods from different manufacturers—e.g., supermarkets span
from toilet paper to catsup);
Adding services (e.g., demonstrations and repairs).
Marketing
4P’s: Place: Elements of Distribution
Manufacturing Facility
Distribution Center
Point of Sale
Marketing
4P’s: Place: Direct: Example – Jack Wolfskin
Manufacturing Facility
Point of Sale – Retail
Store
Marketing
4P’s: Place: Indirect: Example – Kaufhof
Manufacturing Facility
Distribution Center
S. Oliver
Kaufhof D.C.
Point of Sale – Retail
Store
Describing Graphs
http://australianetwork.com/businessenglish/stories/ep08.htm
Describing Graphs
Increase
To increase
Increasing
Increased
Increases
To rise
Rose
Risen
To Raise
Raised
Up
Upwards
To soar
Soared
Soaring
To climb
Climbed
Climbing
Turned the
corner
To improve
Improvement
Improving
Improved
Grow
Grew
Growing
Describing Graphs
Decrease
To decrease
Decreased
Decreasing
To drop
Dropping
Dropped
To drop off
Dropping off
Dropped off
To fall
Falling
Fell
To plummet
Plummeted
Plummeting
To reduce
Reduced
Reducing
To decline
Declining
Declined
To shrink
Shrinking
Shrunk
To plunge
Plunged
Plunging
To tumble
Tumbled
Tumbling
Diminish
Describing Graphs
Descriptive/degree words
Steady
Sharp
Dramatic
Significant
Slight
Trend
Marked
Bottomed
out
Peaked
Topped off
Sudden
Large
Small
Big
Drift
Severe
Rapid
Gradual
stable
Fluctuate
Unchanged
Erratic
Numbers
Describing Graphs
Numbers
Describing Graphs
Numbers
Describing Graphs
Numbers
Describing Graphs
Numbers
Describing Graphs