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The product element of marketing refers to the goods or services that a company wants to sell. Next, a company considers the price to charge for its product. There are three pricing options the company may take: above, with or below the prices that its competitors are charging. Most companies sell their goods or services for average prices established by major producers in the industry.
The third element of the marketing process – placement – involves getting the product to the customer. This takes place through the channels of distribution. A common channel of distribution is: manufacturer –> wholesaler –> retailer –> customer.
Wholesalers generally sell large quantities of a product to retailers, and retailers usually sell smaller quantities to customers.
Finally, communication about the product takes place between a buyer and a seller and is known as promotion. There are two major ways of promotion: 1) through personnel selling, as in a department store; 2) and through advertising, as in a newspaper or magazine, etc.
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