Unit 4. Channels of distribution

4.1. Active word-list. Read the words and word combinations and learn them.

channels (chains) of distribution n торгово- распределительная сеть, каналы распределения товара, движение товара от производителя к потребителю

can n жестяная банка

commodity exchange n товарная биржа

deliver v доставлять

dealer n торговец, посредник

distribute v распределять

distribution n распределение

directly adv прямо, непосредственно

encourage v побуждать, агитировать, поощрять

eventually adj в конечном счете, в конце концов

end user конечный потребитель

food n продукты питания

manufactured goods n промышленные товары

outlet n рынок сбыта,торговое предприятие

sales force торговые агенты

Key words

Distribution Distribution channels End-user Sales force Wholesaler Retailer Retail outlets Dealer Reseller

Distribution is concerned with getting a product to customers or in some more technical contexts its end-users. By what distribution channels does the product reach customers? Is there a sales force? Is the product distributed through distributors or wholesalers before reaching the retailers or retail outlets? In some businesses wholesalers and /or retailers may be referred to as dealers. Retailers may be referred to as resellers.

4.2. Word- building.

a) In the English language there are a lot of words which are used in different parts of speech, though, they are similar in pronounciation and writing. That is called conversion, for example:

answer n ответ work n работа purchase n покупка place n место clean adj чистый empty adj пустой

to answer v отвечать to work v работать to purchase v покупать to place v помещать, размещать to clean v чистить to empty v опустошать

b) Translate the following sentences. Pay attention to the words in bold type.

1. Customers shop at small shops because the customers are often known by name and the shop is near people's homes.

2. There are fewer employees which reduce wage costs.

3. How much will the land cost or are there buildings which could be rented?

4. The United Kingdom government helps exporters in a number of ways.

5. Her help about the house was always great.

6. An American businessman travels on a British airline.

4.3. Read text 4a. Get ready to discuss its information. Channels Of Distribution

Channels or chains of distribution describe the different ways in which goods move from producers to consumers; for example, in the distribution of manufactured goods, one possible channel is from manufacturer to wholesaler to retailer to consumer. Other examples of channels of distribution for manufactured goods are given in unit 3. In each channel of distribution several activities are usually present.

Buying and selling, e.g. wholesalers buy goods from manufacturers and sell them to retailers. Storage, e. g. retailers must store the goods bought from wholesalers. Transport, e.g. goods must be delivered to wholesalers. Advertising, e.g. retailers advertise to encourage the public to buy from them.

The distribution of food

After farmers have produced food such as fruit, vegetables and meat these products need to be distributed so that the public can buy them. There are many ways in which this can be done.

Farmers may sell peas to the manufacturers who would put them into cans which would be sold to larger retailers or wholesalers. They could sell potatoes directly to retailers such as a chain of greengrocers.

Fruit can be sold directly to members of public who visit farms.

Farmers could also sell what they have produced at wholesale markets. A town might have a cattle market on certain days of the week where local farmers could buy or sell. There are also national markets where, for example, farmers, wholesalers and retailers from all over the country are able to buy and sell. Examples of national markets are Smithfield (meat), New Covent Garden (fruit and vegetables), Billingsgate (fish).

The distribution of raw materials

Raw materials such as cocoa, copper and gold are produced by extractive industry. There are many ways in which these raw materials can be distributed to those who wish to use them.

Many of these raw materials, which can come from all over the world, are sold on UK commodity exchanges. Examples of these exchanges and the products in which they deal are, the Baltic Exchange for grain, the London Metal Exchange for copper, tin, lead and zinc, the London Commodity Exchange for tea, coffee, cocoa and sugar, the Liverpool Cotton Exchange for cotton.

Some of these raw materials can be sold to manufacturers who are able to buy in large enough quantities directly from extractive industry. Some, e.g. coal, can be sold directly to the public.