Distribution

DISTRIBUTION

UNIT 15

Grammar: Complexes with gerund

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

distribution – збут; розповсюдження; ~ channel / marketing channel / channel of ~ – канал (система) збуту / розповсюдження; direct / indirect channel of ~ – прямий / непрямий канал збуту / розповсюдження, пряма / непряма система збуту / розповсюдження; intensive ~ – інтенсивне розповсюдження; selective ~ – вибіркове розповсюдження; exclusive ~ – ексклюзивне розповсюдження, виключне розповсюдження;

end user / ultimate consumer – кінцевий користувач / споживач;

middleman / intermediary – посередник;

transfer of ownership – передача прав власності;

merchant middleman / merchant – торговець;

title to product – право власності на товар;

functional middleman / agent – гуртовий посередник / агент, що надає послуги;

via – через посередництво;

sales force – торговельний персонал;

retailer – роздрібний торговець;

wholesaler – гуртовий торговець;

outlet – торговельна точка / ринок збуту;

commissions – комісійні;

market coverage – охоплення ринку;

to grant franchise – надавати франшизу / комерційну концесію / ліцензію.

Assignment 2. Read and translate the following text.

The idea of distribution is getting product from the producer to the customer, who is usually called the end user or ultimate consumer, in the quickest and most efficient way. This goal is achieved through marketing or distribution channels that link the producer and the user with the aid of middlemen or marketing intermediaries. Middlemen are concerned with the transfer of owner­ship of products. A merchant middleman, often called a merchant, is a person who actually takes title to products by buying them. A functional middleman, on the other hand, negotiates purchases or sales, or both, but does not take title to the products.

Consumer products may go through various channels of distribution:

1. Producer (sells directly to) → end users via own sales force. This channel is often called the direct channel. Practically all services, but very few consumer goods are distributed through the direct channel.

2. Producer →retailers → end users. A retailer is a middleman who buys from producers or other middlemen and sells to consumers. Producers sell directly to retailers when retailers can buy in large quantities.

3. Producer → wholesalers → retailers → end users. This indirect channel is known as the traditional channel, because most consumer goods are directed through wholesalers to retailers. A wholesaler is a middleman who sells products to other firms. These firms may be retailers, industrial users or other wholesalers.

4. Producer → agents →wholesalers → retailers → end users. This indirect channel is used for inexpensive, frequently purchased products that are sold through thousands of outlets to millions of ultimate consumers.

Industrial products are sold either directly to industrial users or indi­rectly through agent middlemen, who serve as independent intermediariesbetween the producer and industrial users. Agentsusually represent sellers and receive commissions, that is a percentage of the value of the goods they sell.

The choice of a particular distribution channel depends on a number of relevant factors including the manufacturer’s production capability and marketing resources, the target market and the product itself. After evaluating all these factors the producer can choose a particular intensity of market coverage. Using intensive distribution the producer saturates the market by selling to any middlemen who are willing to stock and sell the product. Many convenience goods are distributed intensively. Through selective distribution manufacturer uses only a portion of outlets in each geographic area, granting franchises for the sale of goods or services. Exclusive distribution is usually limited to a single retail outlet in each geographic area, dealing with very expensive and prestigious products.

Assignment 3. Answer the following questions.

1. What is the idea of distribution?

2. What are the elements of a distribution channel?

3. What is the difference between the direct and indirect distribution channels?

4. What are the functions of retailers?

5. What are the functions of wholesalers?

6. Describe the traditional channel of distribution.

7. How are industrial products distributed?

8. What are the functions of agent middlemen? How are they paid?

9. What factors does the choice of a particular channel of distribution depend on?

10. What products are distributed intensively / selectively / exclusively?

Assignment 4. Put the questions to which the following sentences are answers.

1. The idea of distribution is getting product from the producer to the customer in the quickest and most efficient way. 2. This goal is achieved through marketing. 3. Middlemen are concerned with the transfer of owner­ship of products. 4. A functionalmiddleman negotiates purchases or sales. 5. The choice of a particular distribution channel depends on a number of relevant factors. 6. Only after evaluating certain factors the producer can choose a particular intensity of market coverage.

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

Functional middleman	Marketing organizations that link producer and user within a marketing channel.
Retailer	A middleman that actually takes title to products by buying them.
Middleman / marketing intermediaries	A sequence of marketing organizations that directs a product from the producer to the ultimate user.
Merchant middleman	A middleman that sells products to other firms.
Wholesaler	A middleman that helps in the transfer of ownership of products but does not take title to the products.
Channel of distribution	A middleman that buys from producers or other middlemen and sells to consumers.

Assignment 6. Make up the sentences arranging the words in proper order.

1. Product, to, distribution, is, from, ultimate, producers, consumers, getting.

2. May, consumer, various, products, of, channels, through, distribution, go.

3. Sellers, agents,and, represent, commissions, receive, usually.

4. Intensively, are, convenience, many, distributed, goods.

5. Geographic, outlet, distribution, is, to, usually, exclusive,a, area, single, limited, retail, in, each.

Assignment 7. Translate the following phrases into Ukrainian.

In the quickest and most efficient way; to be concerned with the transfer of ownership of products; a person who actually takes title to products; to negotiate purchases or sales, or both; very few consumer goods; frequently purchased products; to serve as an independent intermediary; a percentage of the value; relevant factors; the manufacturer’s production capability.

Assignment 8. Translate into English.

Досягти мети; за допомогою посередників; продавати безпосередньо; купувати у великій кількості; розповсюджувати через пряму систему збуту; певна глибина охоплення ринку; насичувати ринок; зберігати товар; частина ринків збуту; обмежуватися єдиним роздрібним ринком збуту.

Assignment 9. Match the pairs of synonyms. Make up 5 sentences with them.

A: end user; channel of distribution; middleman; agent; sales force; to grant; help.

B: marketing channel; sales staff; to give; intermediary; functional middleman; aid; ultimate consumer.

Assignment 10. Match the pairs of opposites.

A: direct; exclusive; purchase; few; expensive; frequently; dependent; to grant.

B: rarely; many; inexpensive; independent; to receive; inclusive; indirect; sale.

Assignment 11. Generate nouns and verbs from the following adjectives.

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