Business English

1. ΕΛΛΗΝΙΚΗ ΔΗΜΟΚΡΑΤΙΑ • Ανώτατο Εκπαιδευτικό Ίδρυμα Πειραιά Τεχνολογικού Τομέα Business English Ενότητα # 5: Product & Price Ευαγγελία Κουτσογιάννη Τμήμα Διοίκησης Επιχειρήσεων

2. Άδειες Χρήσης • Το παρόν εκπαιδευτικό υλικό υπόκειται σεάδειες χρήσης Creative Commons. • Για εκπαιδευτικό υλικό, όπως εικόνες, που υπόκειται σε άλλου τύπου άδειας χρήσης, η άδεια χρήσης αναφέρεται ρητώς.

3. Χρηματοδότηση • Το παρόν εκπαιδευτικό υλικό έχει αναπτυχθεί στα πλαίσια του εκπαιδευτικού έργου του διδάσκοντα. • Το έργο «Ανοικτά Ακαδημαϊκά Μαθήματα στο Ανώτατο Εκπαιδευτικό Ίδρυμα Πειραιά Τεχνολογικού Τομέα» έχει χρηματοδοτήσει μόνο την αναδιαμόρφωση του εκπαιδευτικού υλικού. • Το έργο υλοποιείται στο πλαίσιο του Επιχειρησιακού Προγράμματος «Εκπαίδευση και Δια Βίου Μάθηση» και συγχρηματοδοτείται από την Ευρωπαϊκή Ένωση (Ευρωπαϊκό Κοινωνικό Ταμείο) και από εθνικούς πόρους.

4. Σκοποί ενότητας In this section you will • learn how to define the concepts of product, branding, packaging, and labeling • acquire specific vocabulary related to pricing and pricing methods • form new words by using suffixes • describe different types of containers • use vocabulary connected to buying, selling and paying • revise the conditionals

5. Product and Price

6. Product A product is everything that one receives in an exchange, including all tangible and intangible attributes and expected benefits. Products can be grouped into two general categories - consumer and industrial. The former category includes convenience products, such as bread; shopping products, such as appliances, and specialty products, such as unique sports cars. The latter category includes raw materials, machinery and components. Important decisions related to physical products concern their branding,packagingand labeling. We can’t say “new and Improved” until we come up with a product. Published in The New Yorker, Feb.1994

7. Product Glossary • tangible goods: that can be perceived by touch, physical goods/απτός, ενσώματος, υλικά αγαθά • intangible goods : that cannot be touched, e.g. services/ άυλα αγαθά • convenience products: basic, essentials/ είδη πρώτης ανάγκης • raw materials :in the natural state, not manufactured or prepared for use/πρώτες ύλες • branding: marking a product with a distinctive name, symbol, design that identifies a seller’s products as distinct from those of other sellers/μάρκα, εμπορικό σήμα • packaging: packing; wrappers and containers in which products are sold/ συσκευασία • labeling: the presentation of information on a product; the label is the part that contains the information andmay also carry the details of written warranties/ ετικέττα (warranty: a written explanation of the responsibilities of the producer in case the product is found to be defective or otherwise unsatisfactory/ εγγύηση)

8. For many years prices were set by buyers and sellers negotiating with each other and finally coming to an agreement. At the end of the 19th century setting one price for all buyers was introduced. However, a product’s price is flexible and depends a lot on the buyer’s behavior. In general it can be said that a product’s price is determined by the interaction between supply and demandand is relevant to the product’s cost. The costs involved can be broadly classified as either fixed or variable costs.

9. Pricing methods • Using cost-based pricing, the seller determines the total cost of a product and then adds an amount to cover additional costs (e.g. insurance) and profit. The amount that is added is called the markup. Cost –based pricing can be facilitated through the use of breakeven analysis. • The demand-based pricingmethod is based on the level of demand for the product; a firm may favor price differentiation if it wants to use more than one price in the marketing of a specific product. • In using competition-based pricing, a firm considers costs and revenue secondary to competitors’ prices.

10. Pricing Glossary • supply: the quantity of a product that producers are willing to sell / προσφορά • demand: the quantity of a product that buyers are willing to purchase/ζήτηση • fixed cost: a cost incurred no matter how many units of a product are produced or sold/πάγιο κόστος • variable cost: a cost that depends on the number of units produced/μεταβλητό κόστος

11. Pricing Glossary • markup:profit margin; the difference between the cost of a good or service and its selling price/περιθώριο κέρδους • breakeven: revenue from sales and total costs balance out/ισοσκέλιση εσόδων-εξόδων • differentiation: treating in a different way/ διαφοροποίηση • competitor: a person or company that strives to outdo another for profit/ανταγωνιστής

12. Τέλος Ενότητας