Samarkand iktisodiyot va servis instituti

Lesson 21. Organizational markets and buying behavior. TOURISM.

Ilova 1 (21.1)
If the price is right...

In an interview with a journalist, Jan Horst, a marketing consultant, speaks about pricing policies. Complete the text of the interview with words or phrases from the box.

competition discount marginal cost penetration strategy cost plus margin market price skimming strategy

Journalist: So, in terms of pricing, what mistakes do small companies often make?

Horst: They take the cost of sales, and add to it - inventing a (1)........................
This is a (2)....................... ....................... approach.
Journalist: What's the alternative?
Horst: First, fix a price somewhere near or below the competition, the
(3)....................... ........................ This can get you market share, using a
so-called (4).............................................. .
Journalist: What about (5)....................... ......................., just a bit above
variable costs?
Horst: Marginal cost pricing only works if you have a lot of spare stock. It can
help with a (6)....................... policy.
Journalist: And how can pricing help to build up market share?
Horst: First, a low price is essential to build up market share in many markets.
This is the penetration strategy approach. Or you can have a

(7)....................... ....................... , with high margins to help to pay costs

quickly. This is often used with hi-tech goods. They start expensive but
prices come down quickly once the (8)....................... arrives.
Ilova 2 (21.1)
Describing trends 2

Rewrite the following sentences, beginning with the given words, and replacing the words in italics with a verb phrase. (See example):

1 There has been a marked rise in sales for Axal in recent weeks.
Axal sales ...
Axal sales have risen markedly in recent weeks.
2 Frodo has suffered a sudden drop in market share.
Frodo's market share ...
3 Spino showed a slight fall in share price last week.
Spino's share price ...
4 There will be a quick recovery in the share price.
The share price will ...
5 A levelling off of sales for FDT is expected.
FDT sales...
6 There has been a considerable decline in the market.
The market ...
7 There was a sharp increase in share prices.
Share prices ...
8 The wild fluctuation in share values was because of the price war.
Share prices ...
9 HD experienced a rapid climb in market share in the early 1990s.
HD's market share...
Ilova 3

Users

The people in the organization who must use or work with the product or service often have some influence on the purchase decision. For example, drill-press operators might request that the purchasing agent buy a particular brand of drills because they stay sharp longer and reduce down-time in this plant. Physicians, along with a variety of hospital laboratory specialists would have substantial input into any decision relating to the purchase GE's diagnostic imaging systems.