announcement on television or on the radio offering or asking for a product   

      or service;

10. the feelings and opinions that a buyer has about a particular named product.

Exercise 6. What do you understand by these terms?

Target customers, account, budget, brief, brand image, public relation expert.    

Exercise 7. Sum up what you remember about:

a)  product advertising;

b)  advertising agencies and an advertising campaign;  

c)  corporate advertising.

Unit 17. Pricing

Active vocabulary

credit terms                                 кредитні умови

cover costs                                   покривати затрати

pursue unsound price policies   вести нерозумну цінову політику  

supply and demand                    попит і пропозиція 

price competition                        конкуренція в ціноутворенні

set prices                                      встановлювати ціни

All products and all services have prices. The price depends on different things such as credit terms, delivery, guarantees, quality and other forms of service, which price can produce the biggest profit during a long period of time. it’s hardly possible to determine such a price. The price may be too high to produce a large volume or too low co cover costs. No other area of marketing operations has been a subject to bad practice. Many business pursue unsound price policies for long periods of time and are not aware about it.

Prices can be determined in different ways. For example, the prices on meat, cotton and other agricultural products can be decided in a large central market where forces of supply and demand exist. This is pure price competition. The prices on industrial products (iron, steel, etc.) are usually decided by large companies. As a rule the amount and price of goods sold to the large number of buyers are controlled by a few competing sellers. Prices also can be set  by the government, usually for different public services – railroads, electricity, manufactured gas, bus services, etc. 

If demand increases, price rise, profits expand and new investment is attracted. But other factors may be involved as well. Prices are related to each other in different ways. Ultimately, everything is related by price, since the consumer can buy and must pay for everything out of a particular, limited amount of money.       

Exercise 1. Put the necessary word in the sentence: