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14. Say what you have learnt about the product and its price.

1. Read and translate the text ”Pricing Objectives“. Text d. Pricing Objectives

Before management can set prices for a firm's pro­ducts, it must decide what it expects to accomplish through pricing. That is, management must set pricing objectives that are in line with both organizational and marketing objectives.

Of course, one objective of pricing is to make a profit, but this may not be a firm's primary objective. One or more of the following factors may be just as important.

1. Survival. A firm may have to price its products to survive — either as an organization or as a factor in a particular market. This usually means that the firm is sure to cut its price to attract customers, even if it then must operate at a loss. Of course, such a goal can't be pursued on a long-term basis. Consistent losses are likely to cause the business to fail.

2. Profit Maximization. Many firms may state that their goal is to maximize profit, but this goal is impossible to define (and thus impossible to achieve). What, exactly, is the “maximum” profit? How does a firm know when it has been reached? Firms that wish to set profit goals should express them as either specific money amounts or percentage increases over previous profits.

3. Target Return on Investment. The return on investment (ROI) is said to be the amount earned as a result of that investment. Some firms set an annual-percentage ROI as their pricing goal.

4. Market Share Goals. A firm's market share is its proportion of total industry sales. Some firms attempt, through pricing, to maintain or increase their share of the market.

5. Status Quo Pricing. In pricing their products, some firms are guided by a desire to maintain the status quo. This is especially true in industries where price stability is important. If such a firm can maintain its profit or market share simply by char­ging about the same price as competitors for similar products — then it will do so.

Vocabulary on the text.

annual-percentage – годовой процент

at a loss – в убыток

be in line with – соответствовать ч-л; быть в согласии

charge, v – назначать цену

consistent, adj – стойкий

return on investment (ROI) – прибыль на инвестированный капитал

status quo – статус-кво (положение, существующее в определенный момент)

survive, v – оставаться в живых; уцелеть

survival, n – выживание

2. Give Russian equivalents.

through pricing; to operate at a loss; on a long-term basis; to cause the business to fail; percentage increases over previous profits; to be guided by smb.

3. Give English equivalents:

установить цену на товар; получить прибыль; выжить; снижать цену; работать в убыток; постоянные убытки; достичь цели; определенные суммы денег; увеличить долю рынка; стабильность цен; назначать цену.

4. Match the words which are close in their meaning.

1. goal

a. correspond

2. decide

b. work

3. accomplish

c. objective

4. be in line

d. try

5. primary

e. main

6. operate

f. finish

7. attempt

g. make up one’s mind

5. Match the words having the opposite meaning.

1. true

a. decrease

2. primary

b. short-term

3. similar

c. flourish

4. long-term

d. profit

5. loss

e. different

6. fail

f. false

7. increase

g. secondary

6. Match the words to make a word combination.

1. profit

a. stability

2. market

b. maximization

3. pricing

c. basis

4. price

d. losses

5. particular

e. market

6. long-term

f. share

7. consistent

g. goal