VI. Find out to what categories these industrial products refer according to the following examples.

Examples include:

1. Lathes, cranes and stamping machines.

2. Clocks, tires and switches.

3. Industrial glue and food preservatives.

4. Paper, pencils and cleaning agents.

5. Financial, legal, marketing research, and janitorial services.

6. A basic material that actually become a part of a physical product.

VII. Questions and assignments:

1. What are the two general categories of products?

2. State (укажите) the main difference between a consumer product and an industrial product?

3. Can a single item be both a consumer and an industrial product?

4. Name the three categories of consumer products.

5. Name the seven categories of industrial products.

6. Define the term «a convenience product.»

7. Define the term «a shopping product.»

8. Define the term «a specialty product.»

9. Which, do you think, is the most important consumer category of the three above mentioned ones (вышеупомянутых)?

10. What is a basic material that actually becomes a part of a physical product?

11. Where does it usually come from?

12. What does major equipment include?

13. Can we say that an industrial service is also a product?

14. Give some examples of an industrial service.

VIII. Agree or disagree with the statements. Use the following phrases:

That's wrong. Это неверно.

That’s (quite) right. (Совершенно) верно.

That’s not quite true Это не совсем соответству-

to the fact. ет факту.

According to the text.... Согласно тексту....

1. A shopping product is a relatively inexpensive, frequently purchased item for which buyers want to exert only minimal effort.

2. A specialty product possesses one or more unique characteristics for which a significant group of buyers is willing to expend considerable effort.

3. A convenience product is a relatively inexpensive, frequently purchased item for which buyers want to exert considerable effort.

4. A raw material is a basic material that actually becomes a part of a physical product.

5. Examples of major equipment are hand tools, typewriters and calculators.

6. Examples of accessory equipment are hand tools, typewriters, cranes and calculators.

7. Examples of industrial services include financial, legal, marketing research, and janitorial services.

IX. Make up a written abstract (аннотацию) of the above text.

X. Retell the prepared abstract.

UNIT 2

PHASES OF NEW PRODUCT DEVELOPMENT

Before a new product is introduced, it goes through seven phases. The Figure below depicts the evolutionary nature of new-product development.

1. IDEA GENERATION

Idea generation involves looking for product ideas that will help a firm achieve its objectives. Although some organizations set their ideas almost by chance, firms trying to maximize product-mix effectiveness usually systematically generate new-product ideas. Ideas may come from marketing managers, researchers, engineers, competitors, advertising agencies, management consultants, private research organizations or customers.

2. SCREENING

During screening, ideas that do not match organizational resources and objectives are rejected. At this stage, firms must ask whether they can develop and market a product. Management may reject a good idea because the company lacks needed skills and abilities. The largest number of product ideas are rejected during the screening phase.

3. CONCEPT TESTING

Concept testing is a phase in which a small group of potential buyers is presented with a product idea through a written or oral description (and perhaps a few drawings) to determine their attitudes and initial buying intentions regarding the product. An organization can test one or several concepts of the same product. Concept testing is a low-cost means for an organization to determine consumers' initial reactions to a product idea prior to investing considerable resources in product research and development. Product development personnel can use the results of concept testing to improve product attributes and product benefits that are most important to potential customers. The types of questions asked vary considerable depending on the type of product idea tested. Examples of typical questions are the following:

• Which benefits of the proposed product are especially attractive to you?

• Which features are of little or no interest to you?

• What are the primary advantages of the proposed product over the one you currently use?

• If this product were available at an appropriate price, how often would you buy it?

• How could this proposed product be improved?