Vocabulary: Basic marketing terms
1. Distribution channel: all the companies or individuals (‘middiemen’) involved in
moving goods or sẻvices from producers to consumers
2. Wholesaler: an intermediary that stocks manufacturers’ goods or mechandise, and
sells it to retailers and Professional buyers
3. Market segmentiation: dividing a market into distinct groups of buyers who have
different requirements or buying habits
4. Product differentation: making a product (appear to be) different from similar
product offered by other seller, by product differences, advertising, packaging, etc
5. Market opportunities: possibilities of filling unsatisfied needs in sectors in which
a company can profitably produce goods or services
6. Market skimming: setting a high price for a new product, to make maximum
revenue before competing products appear on the market
7. Sales representative: someone who contacts existing and potential customers, and
tries to persuade them to buy goods or services
8. Product features: the attributes or characteristics of a product, such as size, shape,
quality, price, reliability, etc
9. Price elasticity: the extent to which supply ror demand (the quanlity produced or
bought) of a product responds to change of price
10. Market penetration: the strategy of setting a low price to try to sell la large
volume and increase market share
Reading: The product life cycle
Sales:
- Public awareness about the product increases and sales volume rises significantly
growth stage
- Sales volume peaks maturity stage
- Sales volume begins to go down decline stage
- The sales volume is low and customers have to be persuaded to try the product
introduction stage
Costs:
- Costs are high introduction stage
- The product’s features may have to be changed so that it differs from competing
brands, which involves new costs maturity stage
- Costs are reduced due to economies of scale, so profitability increases growth
stage
- Either costs are too high compared to sales, so the products is discontinued, or the
company continues to offer the product to loyal customers, while reducing costs to
a minimum decline stage
