Prices in the real economy

PRICES

PRICES

UNIT 13

Comprehension check.

DIFFICULTIES WITH NAMES

Comprehension check.

1. What factors is a branding policy influenced by?

2. How are trademarks licensed?

3. What are the major advantages and disadvantages of licensing?

A brand name should be snappy, easy to remember, unique and convey appropriate images or values. A major problem for organizations that trade globally is finding names that are translated appropriately. One way to avoid language and translation difficulties is to invent a completely new word, such as Toyota’s Avensis. But there are problems even here. For example, firms must be careful which letters they use. The sounds for R and L, for instance, can be confusing and difficult for Asian customers to pronounce, which might deter them from asking a particular product. Studies by Interbrand Group, which has offices in 22 countries, are also against using the number 8 when launching a food product in China, because it has connotations with death.

The fact that many cultures read from right to left can also cause difficulties with names and packaging. Interbrand’s director of naming recalls the story of washing powder that used three cartoon images on its packaging – the first, illustrating a dirty shirt, the second – the shirt going to the washing machine, and the third – a clean shirt. When the packaging was launched in China it was read the other way round.

1. What is the major problem for organizations that trade globally?

2. What is the way to avoid language and translation difficulties?

3. What difficulties may appear while reading names?

Grammar: Complexes with participle

Assignment 1. Read and learn the following words and phrases.

life cycle – життєвий цикл;

pricing – ціноутворення;

to compete – конкурувати; n. competition – конкуренція;

costs – витрати;

expenses – витрати, видатки;

fashion and seasonal appeal – привабливість товару у зв’язку з модою та відповідно до сезону;

unique advantages – унікальні переваги (вигоди);

to set (charge) a price – встановлювати ціну;

price competition – цінова конкуренція; non-price ~ – нецінова конкуренція;

flexibility – гнучкість;

drawback – недолік;

attractive credit terms – привабливі умови кредиту;

to ration scarce resources – нормувати недостатні ресурси;

to motivate production – мотивувати виробництво;

rationing effect of prices – нормуючий ефект цін;

sales revenue – прибуток від реалізації;

allocator – розподілювач.

Assignment 2. Read and translate the following text.

A product cannot perform its functions unless it is priced correctly. The price of a product is the amount of money that the seller is willing to accept in exchange for the product at a given time and under given circumstances.

As a product is developed and introduced and as it progresses through its life cycle, decisions must be made about the pricing of the product.

Before the price of a product can be set, an organization must decide whether it will compete on the basis of price or of some other combination of factors. Among the important factors considered when setting a price are 1) the costs and business expenses involved in the manufacture or distribution of the product, 2) its fashion and seasonal appeal, 3) the competition, 4) government price regulations, and 5) supply and demand.

Marketers may choose the price above or below the average or current market price. If the price is above competitors’ prices, the marketer must offer some unique advantages that are easily seen by the customers. If marketers’ price is below the market price, they may attract more customers and increase sales. If the price is the same as others, in this case, the service must be better to attract the customer.

Competition in the market exists in the form of either price competition or non-price competition. Price competition occurs when a seller emphasizes the low price of a product and sets a price that equals or beats competitors’ prices. To use this approach most effectively, a seller must have the flexibility to change prices often and must do so rapidly and aggressively whenever competitors change their prices. Price competition allows a marketer to set prices based on demand for the product or in response to changes in the firm’s finances. Competitors can do likewise which is a major drawback of price competition.

Those who choose non-price competition create demand for their products by offering their customers attractive credit terms, after-sales services, free repairs and other forms of encouragement.

Prices perform two important economic functions: they ration scarce resources, and they motivate production. As a rule, the more scarce something is, the higher its price will be, and the fewer people will want to buy it. This is known as the rationing effect of prices.

Price serves the function of allocator. First, it allocates goods and services among the consumers. Second, price allocates financial resources (sales revenue) among producers according to how well they satisfy consumers’ needs. Third, price helps consumers to allocate their own financial resources while choosing a particular product in the market.

Assignment 3. Answer the following questions.

1. What do we call ‘a price’?

2. What factors should be considered when setting a price of a product?

3. What are the basic types of competition and what are they based on?

4. What are the two economic functions of prices?

5. What function doesa price serve?

Assignment 4. Put questions to the italicized words or phrases.

1. A product cannot perform its functions unless it is priced correctly. 2. Prices perform two important economic functions. 3. Decisions must be made about the pricing of the product as a product is developed and introduced. 4. Price competition occurs when a seller emphasizes the low price of a product and sets a price that equals or beats competitors’ prices. 5. Price competition allows a marketer to set prices based on demand for the product. 6. To use a price competition approach most effectively, a seller must have the flexibility to change prices often.

Assignment 5. Match the terms with the appropriate definition and learn them.

Price	Competition that is based on factors rather than price.
Price competition	The exchange value of a good or service which is measured in money terms.
Non-price competition	A mathematical quantity derived for the purpose of measuring movements in the general level of prices.
Price index	Adjustments made to accounting quantities to compensate for the distorting effects of inflation.
Price level adjustment	An emphasis on setting a price equal to a lower than competitor’s in an effort to gain sales or market share

Assignment 6. Agree or disagree with these statements. Use the following phrases.

That’s wrong / That’s (quite) right / That’s not quite true to the fact / According to the text…, etc.

1. A product cannot perform its functions if it is priced incorrectly. 2. The more scarce something is, the lower its price will be, and the more people will want to buy it. 3. Competition in the market exists only in the form of price competition. 4. Price competition occurs when a seller emphasizes the high price of a product and sets a price that equals or beats competitors’ prices. 5. Price competition allows a marketer to set prices based on demand for the product. 6. Price competition has no drawbacks.

7. Non-price competition is used most effectively when a seller makes its product stand out from the competition by distinctive product quality, customer service, promotion, packaging or other features.

Assignment 7. Translate the following phrases into Ukrainian.

A product progresses through its life cycle, unless a product is priced correctly; prices ration scarce resources; to exist in the form of either price competition or non-price competition; price competition occurs; to equal or beat competitors’ prices; to use the approach most effectively; rapidly and aggressively; whenever competitors change their prices; in response to; competitors can do likewise; after-sales services.

Assignment 8. Translate into English.

Привабливість товару відповідно до моди та сезону; маркетолог пропонує унікальні переваги; найефективніше поєднання; приймати в обмін на; за даних обставин; нормуючий ефект цін; розподіляти товари та послуги серед споживачів; слугувати функцією розподілювача; продавець робить акцент на низькій ціні товару; мати гнучкість щодо частої зміни цін; дозволяти продавцю встановлювати ціни; основний недолік цінової конкуренції; безкоштовний ремонт; форми заохочення.

Assignment 9. Match the pairs of synonyms. Use any 5 words in the sentences of your own.

A: to allocate; to choose; to emphasize; to occur; to offer; to perform; to ration.

B: to standardize; to distribute; to propose; to select; to stress; to happen; to fulfill.

Assignment 10. Match the pairs of words with opposite meaning. Use any 5 words in the sentences of your own.

A: to accept; to allow; aggressive; drawback; encouragement; revenues; scarce.

B: discouragement; mild; expenditures; abundant; to forbid; to give; advantage.

Assignment 11. Generate the nouns from the following verbs.

To motivate, to perform, to produce, to accept, to allocate, to satisfy, to choose, to decide, to compete, to combine, to exist, to emphasize.

Assignment 12. Generate the nouns from the following adjectives.

Attractive, flexible, aggressive, scarce, effective, responsive, financial.

Assignment 13. Fill in the blanks with an appropriate word or phrase. Translate the text.

profits, effective, competitive edge, control, ad­vertising, gain, equilibrium price, thereby, sales revenue, units, differentiating, charge, simi­lar, quantity, earns, competition.

In a theoretical system of pure …, no pro­ducer has … over the price of its product: all pro­ducers must accept the … …. If they … a higher price, they will not sell their products. If they charge a lower price, they will lose … … and ….

In the real economy, producers try to … some con­trol over price by … their products from … products. Firms also gain some control over price through …. If the advertising is …, it will increase the … demanded.

In a real market, firms may reduce prices to obtain a … …. A firm may hope to sell more … at a lower price, … increasing its total sales revenue. Although each unit … less profit, total profit may rise.

Assignment 14. Translate into English.

1. Поки ціну на товар не встановлено правильно, він не може виконувати свої функції. 2. Якщо ціна товарів нижча від ринкової, продавці можуть привернути більше покупців та збільшити продаж. 3. Під час встановлення ціни на товар треба брати до уваги багато факторів. 4. Чим більше існує дефіцитних товарів, тим вищою буде ціна на них, і менше людей захочуть їх купити. 5. Обираючи певний товар на ринку, ціна допомагає споживачам розподілити свої фінансові ресурси. 6. Цінова конкуренція виникає, коли продавець встановлює ціни, що дорівнюють цінам конкурентів, або є нижчими від цін конкурентів. 7. Нецінова конкуренція використовується найбільш ефективно, коли продавець пропонує покупцям різні привабливі послуги.

Grammar: Complexes with participle

Об’єктний дієприкметниковий зворот (the Objective Participle Complex) складається з іменника у загальному відмінку або займенника в об’єктному відмінку та дієприкметника. В реченні зворот виконує роль складного додатка (Complex Object). Зворот вживається:

1) після дієслів що виражають сприймання за допомогою органів чуття (вживаються Present Participle або Past Participle):

e.g. She heard them discussing the outcome of downsizing

На відміну від об’єктного інфінітивного звороту, що лише констатує факт, об’єктний дієприкметниковий зворот підкреслює процес, тривалість дії.

2) після дієслів, що виражають бажання та процеси мислення (вживається Past Participle): e.g. He wants the goal attained.

3) після дієслів to have, to get. В таких реченнях дієприкметник виражає дію, яка виконувалась не підметом, а для підмета або над ним (вживається Past Participle): e.g. They got their span of control widened.

Українською мовою об’єктний дієприкметниковий зворот перекладається підрядним реченням.

e.g. I saw you talking to your colleague. – Я бачив, як ти розмовляв з колегою.

Assignment 15. Make up 5 sentences from each table.

I You He We They	saw noticed found watched felt	the manager my colleagues their partners them him	planning the budget. telling right things. explaining the reorganization. agreeing on the design. favouring the proposal.
I He She We They	want considers believe wants wish	the company his son the employees terms of trade the contract	signed by the end of February. accepted more responsibilities. changed. helped him. downsized.

Assignment 16. Transform the following complex sentences into simple ones using the Objective Participle Complex as in the model.

Model: Isaw them as they were working on their report. – I saw them working on their report.

1. I saw him as he was sending the order. 2. We watched them as they were conducting marketing research. 3. The manager observed the employees as they were finishing their task. 4. I saw the auditor completing the opinion paragraph. 5. She watched him as he was repairing equipment. 6. We saw the entrepreneur as he was meeting his partners.

* Суб’єктний дієприкметниковий зворот (the Subjective Participle Complex) складається з іменника у загальному відмінку або займенника у називному відмінку та дієприкметника. В реченні даний зворот виконує функцію складного підмета (Complex Subject). Між іменником/займенником та дієприкметником стоїть присудок, який формально узгоджується з підметом (іменник/займенник) в особі й числі, а по суті є окремою частиною речення, що перекладається рідною мовою дієсловом у третій особі множини у відповідному часі. Смислове відношення між іменником/займенником та дієприкметником подібне до відношення між підметом та присудком, тому зворот перекладається українською мовою підрядним реченням.

e.g. He was heard moving to another town. – Чули, що він переїхав до іншого міста.

Зворот вживається з присудком в пасивному стані, який містить:

1) дієслова, що виражають сприймання за допомогою органів чуття (вживається Present Participle):

e.g. They were watched performing a very difficult task. – Спостерігали, як вони виконували дуже важливе завдання.

2) дієслова to consider, to believe, to find в значенні «вважати» (вживається Past Participle):

e.g. She is considered employed for the position of operational manager. – Вважають, що вона прийнята на посаду менеджера з питань виробництва.

Assignment 17. Make up 5 sentences from each table.

The partners We Line personnel Managers Specialists	were	seen heard watched noticed observed	entering the conference hall. advising on marketing matters. designing a new brand image. discussing the company downsizing. holding secret negotiations.
The goal Projects The design Our conditions The work	was were	considered believed found	finished. elaborated. accepted. achieved. postponed.

Assignment 18. Transform the following sentences using the Subjective Participle Complex as in the model.

Model: They heard as he was supporting a conservative point of view on federal social programs. – He was heard supporting a conservative point of view on federal social programs.

1. Somebody overheard us as we were sharing information. 2. The manager observed as the office was working. 3. They watched as the jet was taking off. 4. They heard as we were reporting about administrative costs. 5. They saw as the partner was checking the contract. 6. They observed as employees were assisting the manager.

* Незалежний дієприкметниковий зворот (Absolute Participle Complex) складається з іменника або особового займенника у називному відмінку та дієприкметника. У цьому комплексі іменник або займенник виконує роль підмета по відношенню до дієприкметника і не є підметом всього речення. Зворот завжди відокремлюється комою. В українській мові відповідних зворотів немає.

Якщо зворот стоїть на початку речення, він виконує функцію обставини (часу, причини, способу дії, умови) і перекладається відповідним підрядним реченням.

e.g. On-line communication being very important, we installed computers in every department. – Оскільки зв’язок в реальному часі дуже важливим, ми встановили комп’ютери в кожному відділі.

Якщо незалежний дієприкметниковий зворот стоїть в кінці речення, він перекладається простим реченням, що входить до складу складносурядного, і переклад його починається із сполучників а, і, але, причому.

e.g. The information supplied must meet particular requirements, accuracy being one of them. – Надана інформація повинна відповідати певним вимогам, і точність – одна з них.

Assignment 19. Translate into Ukrainian.

1. Large and small businesses operating differently, many of the same management concepts apply to each. 2. Many factors changing quickly, long-range plans are subject to revision. 3. Small businesses have the potential to respond faster to changing conditions than large businesses, small businesses being informed more properly. 4. New equipment having been purchased, the company started producing new goods. 5. The cars being very expensive, the customers buy them on hire purchase. 6. Your company improving the quality of the goods, we shall order them. 7. Larger concerns delegate responsibilities to various levels of the organization, the proprietor of a small business being involved in every aspect of the operation. 8. Joint ventures offering foreign investors direct access to the Ukrainian market, many foreign companies are interested in cooperation with our country. 9. Our company organized some new departments, staff specialists doing specific work. 10. The retailer performs many necessary functions, promotion of goods being one of them.

Assignment 20. Translate into English.

1. Якщо ваші товари будуть відповідати всім вимогам, ми купимо велику партію. 2. Після того, як контракт було підписано, ми отримали нове обладнання. 3. Оскільки ваші товари користуються великим попитом, ми їх швидко продамо. 4. Коли в нашому місті відкрили новий супермаркет, його стали відвідувати всі мешканці нашого міста. 5. Ми купуємо споживчі товари тривалого вжитку в магазині, причому продавці надають нам 5% знижку. 6. Якщо ваші товари будуть продані в цьому місяці, ви зможете інвестувати гроші в нове обладнання. 7. Оскільки умови контракту задовольняли всіх партерів, ми вирішили його підписати. 8. Ця країна експортує багато товарів, але автомобілі є головною частиною експорту.

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