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					    Business English is…                                      1                                            Module 3

Nina Medvedeva
Tatyana Valentey
Marya Lukanina

MODULE 3

COMMUNICATION CULTURE
               OF BUSINESS ORGANISATIONS




Section 1: Business World

                                                      MARKETING

I. READING

      Introduction

 Read and discuss the following introductory text. What important issues does it raise?

                                       Managers                       communication between disparate social groups,
                               have to be very much                   at least the main hindrances can be anticipated
                               aware of the different                 and avoided; but this requires a prior awareness
                               connotations words                     of the general nature of the problem. Of course,
                               have. Connotations                     most experienced businessmen and women do
                               are the individual                     develop a kind of intuitive awareness of such
                               feelings we have                       problems; but it takes many years to become
                               about words, the                       experienced, and meanwhile these problems face
 associations they arouse in our minds; and there                     the younger manager. It would presumably be
 are many words which have good connotations                          ideal if one could provide all new managerial
 for one group and bad connotations for another.                      staff with a manual of linguistic principles and
 So for the management to talk blithely about                         procedures recommended to deal with the
 'automation' and 'work-study', in the firm belief                    language troublespots; and perhaps such material
 that these concepts connote efficiency and                           will one day appear. The point I want to
 productivity, is naive; for to so many people on                     emphasize here, however, is that the initial study
 the shop-floor, such terms regularly have                            of these matters which has to be carried out prior
 connotations of redundancy (in the first case) and                   to any manual-writing is a full-time and
 slave-driving (in the second). A word can set off                    complicated job in its own right. It is not easy to
 a strike. Business           managers, as all                        collect representative and accurate information
 communicating human beings, have to take the                         about language use and abuse. Nor is it easy to
 receiver's point of view into account. It is                         devise a clear and precise way of defining the
 financially important for them to remember that                      problems in order to teach them. (Even the
 the test of a successful communication is what                       communications analyst is beset by problems of
 happens at the receiving end.                                        communication!).
        In this field, as in many others, prevention                               (David Crystal ‘Linguistics’, pp. 16)
 is more important than cure. While it is never
 going to be possible to get absolutely perfect
      Business English is…                                     2                                                Module 3


1. Read the following texts. Discuss the answers to the questions below each text. Sum up the main points in writing (300 words).

  1) Market, Marketing and Marketing Department.
                                          A market                     product and then tries to sell it in the hope that
                                   can be defined as                   the consumer will buy it.
                                   any     form    of                          The Institute of Marketing has defined
                                   contact between                     marketing as 'the process responsible for
                                   buyers and sellers                  identifying, anticipating and satisfying customer
                                   for the purpose of                  requirements       profitably'.  The      Marketing
                                   buying and selling                  Department of any company must first establish
                                   goods          and                  what the customer wants before that product can
                                   services.    These                  be designed and manufactured. Once it has been
                                   markets can be                      made, it is the Marketing Department's
  local, e.g. window cleaning services, national or                    responsibility to see that the product is sold to
  even international. A market typically has 4                         the consumer. The typical functions of a
  elements:                                                            Marketing Department are: market research,
  1. Buyers — people wishing to acquire goods                          product planning and development, advertising
     and services.                                                     and promotion, distribution and transport, sales
  2. Sellers — people wishing to sell goods and                        (domestic, overseas), customer services and
     services.                                                         public relations.
  3. The goods and services which are going to be                              This involves studying the market to
     exchanged.                                                        discover exactly what the customer really wants.
  4. A means of payment - that includes cash,                          Companies collect information in order to build
     cheque, credit, direct debit, standing order and                  up a picture of consumer requirements. It can
     hire purchase.                                                    come from 2 main sources:
          Consumers have a wide variety of choice                      1. Primary information is information that is not
  in how they spend their income, and there is a                          already available. One of the techniques used
  large quantity and many different types of goods                        to collect this information here is field
  and services that the consumer can buy. One                             research -questioning consumers directly about
  difficulty that confronts a firm is to decide what                      their tastes and preferences.
  to produce. Satisfying the wants and needs of                        2. Secondary information is information that is
  consumers and anticipating these wants can                              already available to the firm. It can come from
  make the difference between success and failure                         a variety of sources, such as government
  in business. Some things, such as food, are                             statistics and business and trade publications.
  essential. Food is an example of a single-use                           Gathering information this way is called desk
  consumer good. Most people, having satisfied                            research.
  their needs, can attempt to satisfy their wants by                           A firm usually possesses its own internal
  the purchase of items such as cars, TVs,                             information about the popularity of its products
  microwave ovens and compact disc players.                            and about its own sales. This information,
  These are sometimes called consumer durable                          although useful, may be of limited value since it
  products. Alternatively, they may purchase                           tells the firm nothing about the total size of the
  services such as dry-cleaning, haircuts, trips to                    market, competitors' products and prices, or
  the cinema and meals out.                                            consumer preferences. Here the firm have to
          Today, a successful company is one which                     acquire external information from sources such
  tries to discover what the consumer wants or                         as the Department of Trade and Industry, trade
  could be persuaded to buy and then makes that                        associations, banks, chambers of commerce,
  product and sells it at a profit. Such firms are                     national and local press and trade journals. The
  said to be market-orientated. In a market-                           DTI has its own Statistics and Market
  orientated firm one of the functions of the                          Intelligence Library, which is freely available for
  marketing department is to find out consumer                         public use and contains information on market
  requirements. This is in complete contrast to a                      size and trends, which products consumers are
  product-orientated firm, which first produces a                      buying and the market position of different
                                                                       firms.

Questions:
1. What are the 4 elements of a market?
2. Give examples of (a) single-use consumer goods, (b) consumer durable goods.
3. What is marketing and what are the functions of a Marketing Department?
4. From what 2 sources can a company obtain its market research information?
     Business English is…                                3                                           Module 3

  2) Questionnaires and Interviews
                                   What information               too restricted otherwise the person may not
                               does the company                   feel able to answer the question.
                               wish to find out and             7. Keep the questionnaire as short as possible -
                               by what means? This                people will not feel like answering a lot of
                               is concerned with the              questions, particularly if they have to write,
                               type of questions that             long answers. It saves time and encourage!
                               consumers are going                people to complete the questionnaire if all they
                               to be asked and how                have to do is tick a box.
                               they are going to be                    Once the firm has decided on the
  asked. A firm has 2 principal methods of seeking              questions it is going to ask, it then needs to
  information from consumers: the questionnaire                 distribute the questionnaires. This can be done in
  and the interview. The major difference between               a number of ways; by post in the form of a postal
  the 2 methods is that with a questionnaire the                survey; to consumers who have already bought a
  answers are completed on a form whereas during                product by including the questionnaire in the
  an interview consumers are asked questions by                 product's packaging; by using a market
  an interviewer who then records the answers                   researcher to distribute the questionnaires and
  given.                                                        collect the completed form or by supplying a
          It is difficult to design a sensible and              pre-paid stamped addressed envelope. Some
  usable questionnaire. To be of any use the replies            companies include questions, e.g. about the place
  need to come from well-worded and well-                       of purchase or the age/sex of the consumer, on
  presented questions. The following points need                their guarantee. This is a relatively cheap method
  to be kept in mind during the design process:                 of gathering research information.
  1. The purpose of the questionnaire must be                          In comparison with the questionnaire, the
     clearly stated — people tend to be suspicious              interview does have a number of advantages over
     about answering questions and giving                       the questionnaire in that the interviewer can ask
     confidential information.                                  more difficult questions and can also explain the
  2. Try not to rely too much on the person's                   questions, The response rate also tends to be
     memory.                                                    higher because people are more likely to agree to
  3. All questions need to be as clear as possible -            being questioned; when approached by
     avoid asking questions that are ambiguous.                 somebody in the street than they are to complete
  4. The questions need to follow a logical pattern.            a questionnaire that comes through the door.
  5. Use everyday language and try to avoid                     Finally, the interviewer can also select certain
     jargon.                                                    types of consumers that the company is
  6. Offer a range of answers if possible rather                particularly interested in.
     than 'yes' or 'no' - the responses must not be

Questions:
1. What is market research?
2. Which is the largest and the smallest socio-economic group in Russia? Why is it useful for organizations to know
   this information? Give examples to support your answer.
3. Compare the advantages of gaining market research information by interview and by questionnaire?


  3) Advertising
                              If consumers are                         The purpose of communication - which is
                           going to buy a good or               what advertising is - is to inform and influence
                           service they must be                 people's behaviour. The 4 elements of
                           made aware of its                    communication, the sender, the message, the
                           existence. The advertising           media and the receiver, are all found in
                           function      of        the          advertising.
                           Marketing Department                        Advertising can be classified into 2 broad
                           communicates with the                categories: informative and persuasive. Typically
  customer through media such as newspapers,                    an advert contains elements of both. When a
  television, the cinema and posters. It will also be           product is launched, sales are low because very
  concerned with the design and distribution of                 few customers are aware that it exists. The role
  catalogues, special offers (price reductions and              of advertising here may be to inform the public
  free gifts), sponsorship, displays, competitions              of the product's existence and its particular uses.
  and product launch campaigns. Some companies                  The same applies when a product has been
  prefer to leave the advertising of a product to a             modified or improved. In other cases, e.g. new
  specialist advertising agency. The agency is said             cars or scientific calculators, the nature of the
  to have the company's account.                                product may be such that a large amount of
                                                                technical information has to be applied, and
     Business English is…                                4                                         Module 3

  advertising again may have to be informative.              from the Advertising Standards Authority. In the
  Advertising that informs and educates consumers            case of TV commercials, every film must be
  gives them greater choice in their selection of            approved for transmission before it can be
  goods and services. It can be seen as a form of            screened, to ensure that it complies with the
  competition between firms and may encourage                Independent Broadcasting Authority's Code of
  manufacturers to improve their products to the             Practice,
  benefit of the consumer.                                            It is normally very difficult to distinguish
         Persuasive advertising, as its name                 between the persuasive and informative elements
  implies, is used to try and persuade a consumer            in any advertisement. There is generally a blend
  to buy a particular product. Such advertising is           of both.
  subjective and contains many statements of                          Once the firm has decided that advertising
  opinion rather than fact, e.g. 'Carlsberg - the best       is going to play some role in the marketing of its
  lager in the world … probably'. Persuasive                 product(s), it must then decide on the message,
  advertising is normally associated with consumer           the media and the receiver. All these factors will
  products and is used heavily where differences             be linked. It could be that the receiver — the so-
  between products are minor, e.g. toothpaste,               called target audience - will determine the
  baked beans, soap powder, washing liquids and              message and the media. If, for example, the
  lager. Persuasive advertising has been criticised          product is a children's toy, the advert should be
  because it emphasises the advantages of a                  placed on television at particular times of the
  product and attempts to make those who do not              day.
  use the product feel as if they are missing out. It                 In designing the message the advertiser
  plays on jealousy, envy and 'keeping up with the           will need to consider the following:
  Joneses'. However, there are a number of                   1. The content of the message: this will depend
  regulations that control the content of                       on the type of product and the market in which
  advertisements, and firms are required to follow              it is to be sold.
  the Code of Advertising Practice. Some                     2. Who is the receiver? The message may be
  important extracts from this code are: (British )             directed at a particular group of the population,
  1. All advertisements should be legal, decent,                in which case it may have to be delivered in a
     honest and truthful.                                       particular way using a certain media.
  2. All advertisements should be prepared with a            3. The person used to send the message: very
     sense of responsibility to the consumer.                   often large firms use celebrities that they think
  3. All advertisements should conform to the                   are appropriate for the product.
     principles of fair competition as generally             4. The timing and number of messages: an
     accepted in business.                                      advertiser has a choice between 2 approaches
  4. No advertisement should bring advertising                  to an advertising campaign. It can be
     into disrepute or reduce confidence in                     extensive, where the object is to reach as wide
     advertising as a service to industry and to the            an audience as possible using different media.
     public.                                                    On the other hand, it can be intensive, where
         When the code is breached advertisers are              the object is to reach a particular group
  quick to amend or withdraw the advertisement                  repeatedly (e.g. products such as lager, coffee,
  concerned. If they do not do this the media may               washing powder and toilet rolls are advertised
  agree not to sell them advertising space or                   intensively on television).
  airtime and they may risk unwelcome publicity

Questions:
1. What is advertising and how can it be classified?
2. Give examples of persuasive and informal advertising on the TV at the moment.
3. Study some adverts from the TV and the press (newspaper or magazine). Say whether they are good or poor
   adverts and why.
4. How are firms limited in what they can say in an advert?
  4) The Marketing Mix.
                               The     marketing               essential here as tastes change and technology
                           mix is made up of 4                 progresses.
                           components,                       2. Price: a firm has to decide on its pricing
                           sometimes called the                policy for list prices, discounts for bulk-buying
                           4 Ps. These are:                    and interest-free credit. What competitors are
  1. Product: the firm has to identify what                    charging and what consumers are willing to
    products the consumer wants and the way                    pay are also important. A low price may make
    existing products can be adapted to meet                   consumers suspicious ('cheap and nasty') or
    consumer preferences more successfully.                    the low price may be thought of as a bargain
    Consideration of new product development is                ('cheap and cheerful'). If the price of the
                                                               product is too high then the company may be
   Business English is…                                5                                         Module 3

   pricing itself out of the market. If the price of         Possibilities here include personal selling,
   the product is higher than what competitors are           advertising and other promotional work.
   charging then it must be justified in some way,         4. Place: the product has to be in the correct
   e.g. because the quality of the product is                place — retail outlet - in order to capture sales.
   higher.                                                   Exactly where a firm decides to sell its product
3. Promotion: this amounts to choosing methods               will depend on the nature of the product.
   that can generate sales of the product.
A summary of the marketing mix:

                              Product
                                quality                    Place
                                design                       distributors
                                performance                  retailers
                                features                     location
                                size                         mail order
                                name                         department stores
                                services                     wholesalers
                                guarantees                   machine vending
                                colour


                                                           Promotion
                              Price                          advertising
                                discounts                    personal selling
                                list prices                  competitions
                                credit                       coupons
                                hire purchase                publicity
                                payment period               packaging


        The components of the marketing mix can            and cars; an offer of money in exchange for a
be illustrated using the example of cigarettes and         certain number of packet tops. Embassy has had
tobacco companies. The product itself comes                a long-running coupon collection promotion
into different size categories, e.g. standard, king        whereby coupons can be exchanged for gifts.
size and now 'super-kings'. Cigarettes may come            The forerunner to all these competitions of
tipped or untipped, and there is also variety in           course was the picture cards contained in
terms of the tar content (low, middle and high).           cigarette packets. Some of these card collections
The tobacco, and hence the flavour of the                  are now worth a lot of money.
cigarettes, also differs, e.g. some brands taste                    Even though the tobacco companies are
very strong while others are mild or menthol.              not allowed to advertise their product on TV,
The size, design and flavour are therefore                 they do spend considerable amounts of money
variable, as are the number of cigarettes in a box         on advertising in other media. Now that smoking
- generally 10 or 20. Some brands, e.g. Park               is generally considered to be an antisocial habit
Drive, used to be sold in boxes of 5.                      and because of the greater emphasis placed on
        As far as place is concerned, cigarettes           health and fitness, smokers are now in a
are sold through a wide range of retail outlets -          minority. Tobacco companies have therefore had
tobacconists, newsagents, corner shops, garages,           to adopt a very attacking selling strategy.
supermarkets, pubs, off-licences, hotels, duty-            Advertising in magazines - particularly the
free shops and vending machines.                           colour supplements to the weekend papers - on
        The price of cigarettes can vary                   billboards and on bus shelters is commonplace.
enormously, particularly between the different             The advertising is often very subtle, thought-
types of retail outlets, e.g. supermarkets and             provoking and eye-catching. Some companies
newsagents. A favourite ploy of the tobacco                adopt an entirely different approach, e.g. to
companies is to have special offers at particular          conjure up the idea that people who smoke
times to try and increase sales. Price also differs        Marlboro are rugged, the smoker is portrayed as
according to the size of the cigarette.                    a cowboy on a horse.
        The promotion aspect of the marketing                       It is quite noticeable that the marketing
mix for cigarettes is a vast area. The tobacco             mix differs according to the type of product that
companies are not allowed to advertise on                  is being sold. The fact that the term 'mix' is used
television and each packet must carry a                    implies that the four Ps - product, price,
government health warning. Due to these                    promotion and place — can be combined in
restrictions, promotional activity takes a number          different ways. One important factor that affects
of forms: sponsorship of sporting events,                  the marketing mix is the position of the product
competitions where the prices include holidays             in its life cycle.
     Business English is…                                 6                                            Module 3

Questions:
1. What do you understand by the term 'marketing mix'?
2. Why may consumers be put off buying a product if it has too low a price?
3. How can a company justify charging a price for a product that is way above those of the competition? Give
   examples to support your answer.
4. Think of a product known to you and find out (a) the features (colour, design) of it, (b) the price of the product,
   (c) how it is promoted, (d) the places where it is sold.

  5) The Product Life Cycle
                                     The period of                are unsure about the likely consumer reaction to
                               time over which a                  it.
                               product appeals to                         During the growth stage of the product
                               customers is called                life cycle, sales start to increase rapidly as more
                               the product life cycle.            consumers become aware of the product as a
                               At a given point in                result of the heavy informative advertising. The
                               time a product will be             few people who owned the product in the
                               at a particular stage of           introduction stage may have told friends about it
                               its life cycle. The                (and shown it to them), and word of mouth
  length of this product life cycle differs from                  encourages further sales. There may well be a
  product to product, e.g. the life cycle of certain              slight reduction in the price of the product
  items such as clothing (flared or drainpipe                     because of greater competition with the entry of
  trousers) and pop records may be very short                     rival firms. More retail outlets start to stock the
  indeed, perhaps a matter of months, or a few                    product.
  years at the outside. Other products, particularly                      When the product is in its maturity phase,
  consumer durable products such as telephones                    sales reach a peak. The product may become
  and colour TVs, may have a much longer                          standardised with very little variation on a
  product life cycle.                                             standard model. With standardisation comes a
          Stages:                                                 drop in the price of the product and an increase
          1. Introduction                                         in the amount of competition between firms. In
          2. Growth                                               the saturation phase most people own or use the
          3. Maturity                                             product and sales remain static. Most sales are
          4. Saturation                                           due to consumers replacing an old product -
          5. Decline                                              rather than new consumers buying the product.
          Before a product is introduced, it                      Advertising tends to become persuasive rather
  generally has to be tested on a sample of                       than informative, with firms trying to lure the
  consumers. During the development period, the                   customer towards their product and away from
  product is often given a code name, e.g.                        that of their competitors. The Marketing
  Cadbury's Wispa had the secret project code                     Department will try to develop variations on the
  name p. 46. The product's introduction may be                   standard product - especially if there have been
  accompanied by a blaze of publicity, heavy                      technological changes, by the addition of extra
  advertising and promotional work, e.g. the                      features. It is trying to stop sales from declining
  launch of a new car typically involves large                    and it may look (if it hasn't already) for another
  amounts of advertising expenditure to inform the                market to sell the product, e.g. overseas. Colour
  consumer of its existence and features. A lot of                TVs now have considerably more features -
  new cars are first introduced at a prestigious                  teletext, remote control, stereo sound and
  motor show.                                                     different shaped and size screens - than when
          In the introductory phase the sales of the              they were first introduced. When people replace
  product tend to be low and sluggish, and the                    their old TV they may purchase one that
  price of the product may be higher than it will be              incorporates these different features.
  at later stages in the product life cycle due to the                    The decline phase of the product life cycle
  lack of competition and because the firm is                     is characterised by falling sales. Advertising
  trying to get back some of the costs of                         ceases, prices drop considerably and few retail
  developing and launching the product. Very few                  outlets stock the product.
  retail outlets may stock the product because they

Questions:
1. What do you understand by the phrase 'product life cycle'?
2. What are the 5 stages of the product life cycle?
3. Write down further examples of products that are at different stages of the product life cycle.
4. What type of marketing activity tends to be associated with (a) the growth stage and (b) the saturation stage of the
   product life cycle?
   Business English is…                                       7                                            Module 3




                              2. Look through the jumbled pieces of information below, locate the key marketing terms
                                and their definitions. Make a list of terms and give their Russian equivalents. Learn the
                                definitions. Complete the table below with word partnerships, whose central element
                                corresponds to one of the table’s entries.

   market        marketing        product             sales           brand              price           advertising



       Many people use the words marketing,                       marketing objectives (see the section The
sales and advertising interchangeably. However,                   marketing mix below. A product can be defined
the word 'marketing' refers to an overall                         as 'anything that can be marketed', and includes
approach to doing business, while sales and                       physical objects, services, ideas, and even
advertising are specific activities that form part                people. Product portfolio is the range of products
of the marketing process. Other such activities                   or services offered by a company: A product
are market research and new product                               may be seen as expensive or cheap, but
development. Marketing involves analysing and                     'expensive' may imply 'too expensive' and 'cheap'
understanding customer needs in order to enable                   is often used to show disapproval of poor
the company to provide the most appropriate                       quality. A way of getting round this is to say that
products     and     services.    Advertising    is               something is high-priced or              low-priced
communicating the company's message and                           Similarly, things may be mid-priced. One of a
promoting its products, services and ideas to                     company's concerns is, of course, deciding the
existing or potential customers. Sales is the                     price of its products in relation to each other and
process of persuading people to buy the                           to competing products. This is known as pricing.
company's products. The term market refers to                     Product launch is putting a new product into the
the actual or potential demand for a product. A                   market. Premium product is a product positioned
company's or product's target market is the group                 at the top end of the market. Packaging is a
of people a company aims to sell its products to,                 product’s wrapper or container. Research and
for example university students, children,                        development (R&D) Is the process of designing
homeowners, people over 65. Market research is                    new products and improving existing ones.
the collection and study of data about a market,                  Brand is a name, term, symbol or sign that
carried out in order to make decisions about                      identifies a product. Branding is a way of
products. Market share is the percentage of sales                 differentiating products by building a brand
that a company or product has in a particular                     around them. Brand switcher is a buyer who
market. A market segment is a distinct group of                   change brands regularly. Brand loyalty is
buyers, identified by characteristics such as                     sticking to a known brand regardless of the
income, age, lifestyle, preferences and .                         competition. Family brands are products of a
geographical area. A market niche is a small,                     company which all carry the same name, eg.
specific segment of the market, often dominated                   Microsoft, Yamaha, Del Monte. Own-label
by small firms selling specialized or luxury                      brands are products sold under the name of a
goods. A market leader is the company or                          supplier or retailer. Price, the second element in
product with the largest share in a particular                    the marketing mix, refers to how much money a
market. Marketing strategy refers to a company's                  company charges for its products.Pricing policy
overall approach to achieving its marketing                       is a company’s approach to setting prices. A
objectives. A marketing plan is a document                        company needs to consider its long-and short-
giving a detailed explanation of how a company                    term pricing policies.Markup is a percentage
will achieve its marketing objectives for a                       added to the cost of producing a product or
particular product. The marketing environment                     providing a service. Discount pricing is reducing
includes all the factors affecting a market; the                  the price of a product to attract buyers and/ or
macro-environment refers to factors affecting the                 clear stock. Loss leader is a product which is
whole economy and the micro-environment                           sold at a loss to attract buyers who will then buy
refers to factors affecting individual markets and                other goods. Place refers to distribution, that is
areas. A SWOT analysis is a method of                             how and where the product is made available to
examining a company's Strengths and                               customers. The company must decide on which
Weaknesses, and the Opportunities and Threats it                  are likely to be the most effective kinds of
encounters in the market. An evaluation of a                      outlets, the most cost-effective means of
company's marketing objectives, strategies,                       distribution, and which production issues will
describes the various factors a company must                      effect distribution, for example, the type of
take into consideration when developing its                       container that is used for a product, or the size of
       Business English is…                                  8                                              Module 3

    the product or the packaging. Channel of                         development department proceeded with their
    distribution is the route a product takes on its                 plans for a new model. The steps market
    way to the customers, each stage adding a                        researchers take when carrying out market
    markup on the price. Wholesaler is a company                     research are - to identify the problem or the
    that buys in large quantities from manufacturers,                opportunity and the research objectives, to
    to sell on to retailers. Retailer is a company                   decide on the research methods (eg. focus group,
    which sells goods directly to the customer in                    survey), to decide on the research instrument
    shops and stores. Outlet is a place, such as a                   (questionnaire), to choose contact methods (mail,
    shop, where goods are sold to the public.                        telephone, Internet, personal interview), to
    Factory outlet is a shop where a plant sells its                 collect data, to analyse data, to present findings.
    products directly to the public. Mail-order is a                 When designing a questionnaire (the most
    method of selling, using catalogues and the                      commonly-used market research instrument), the
    postal service. Overseas agent is a company that                 market researcher needs to choose questions very
    sells another company's products in foreign                      carefully, considering the form, the wording and
    markets. Transportation stands for methods of                    the sequence. Closed questions are designed to
    delivering goods to target markets. The term                     limit the number or types of answers that can be
    promotion refers to communicating with, and                      given. Open questions allow the respondent to
    influencing, customers to buy your products. It                  give opinions and reasons more freely. Scaled
    involves creating a clear identity and image for a               questions are that type of question offers
    product and bringing the product's benefits to the               statements with which the respondent can show
    customers' notice. Sales force are the people in                 the amount of agreement or disagreement, or that
    the sales department who sell a company's                        rates the importance of smth, e.g. from poor to
    products. Advertising is paying to promote                       excellent. A prioritizing question asks the
    products, services, events and people through TV                 respondents to rank certain points according to
    and radio commercials, the Internet, magazines                   their personal preferences. An open question
    and other media. Public relations (PR) is                        asks the respondent to write freely on the subject,
    communicating a positive image of a company                      allowing for any opinions to be given that were
    through articles, press releases, parties and other              not picked up earlier. Advertising is one of the
    events. Sales promotions are ways of stimulating                 main methods of promotion, involving informing
    sales of a product eg. offering free samples. A                  consumers about products, and attempting to
    sample is a small part of the population, which is               persuade them to buy. Large companies usually
    taken to represent the whole. A questionnaire is a               use advertising agencies to promote their
    set of questions used in a survey to find out                    products and the company's image to the target
    about people's opinions, behaviour and practices.                customers. The account is the contract between
    Market research is often carried out through a                   the client company and the agency to develop an
    focus group. A focus group is a number of                        advertising campaign. The client allocates a
    people who take part in a carefully managed                      budget, an amount of money, to the task. The
    discussion, in order to provide data about                       agency and the client then discuss the brief,
    attitudes and responses to products and services.                which is a statement of the client's objectives, as
    Original data like this is called primary data,                  well as the message the company wishes to
    while information collected from periodicals,                    communicate to the consumers. Once this has
    government publications, online databases and                    been agreed, the agency is ready to start work,
    other sources is known as secondary data. The                    deciding which medium to use, for example
    results of market research are known as findings.                television, radio, newspapers. The agency then
    These are presented at the end of the research                   creates the advertisements.
    task. As a result of the findings, the research and




                                     II. KEY VOCABULARY OF THE SECTION:



                                     1.Give the Russian equivalents of the following words and word-combinations. In case
                                        of problems return to the texts above and elaborate on them further
A
Achieve marketing objectives
Actual (potential) demand for a product
Add markup on the price
Allocate a budget
Adopt a very attacking selling strategy
Advantages of a product
Ambiguous questions
      Business English is…                                   9     Module 3

Amend or withdraw the advertisement
Amount of agreement and disagreement
Anticipate the needs of consumers
At the top end of the market

B
Basic list price
Be accompanied by a blaze of publicity
Be advertised intensively on television
Be characterized by falling sales
Be given a code name
Be marked
Be persuaded by vigorous hard-selling techniques
Be presented at the end of the research task
Be tested on a sample of consumers
Be sold at a loss
Brand
Brand loyalty
Brand manager
Brand name
Branding
Breach the code
Bring advertising into disrepute
Bring the product’s benefits to the customer’s notice
Build a brand around smth
Buy in large quantities from manufacturers

C
Capture sales
Carry out market research
Chamber of commerce
Change brands regularly
Channel of distribution
Cheap and cheerful
Cheap and nasty
Clear stock
Closed questions
Communicate a positive image of a company through (articles,etc)
Company’s image
Company’s message
Competing product
Communicate with the customer through media
Conform to the principles of fair competition
Consideration of consumers' wishes
Consumer manipulation
Consumer preferences
Consumer sovereignty
Consumers' reactions to particular product or service features
Consumers' tastes and requirements
Contact methods
Cost effective means of distribution
Create advertisements
Create a clear identity and image for a product
Customer needs

D
Decide on pricing policy
Decline phase of the product life cycle
Design a questionnaire
Desk research
Develop advertising campaign
Develop marketing objectives
Develop variations on the standard product
Direct debit
Disapproval of poor quality
Discount pricing
Discounts for bulk-buying
Distinctive competencies
Distribution channels
      Business English is…                                  10   Module 3

E
Enjoy a differential advantage
Enjoy material prosperity
Existing (potential) customers
Eye-catching advertising

F
Factory outlet Family brand
Favourite ploy
Find out about people’s opinions, behaviour and practices
Find wants and fill them.
Focus group
Follow a logical pattern
Forerunner to all competitions
Free economy

G
Give opinions and reasons more freely
Generate sales of the product

H
Heavy advertising
Heavy informative advertising
High-priced
Hire purchase

I
Individual markets.
In the search for loyal customers
Increase sales by changing the marketing mix
Influence the target market
Interest-free credit
Inventory size

K
Keep up with the Joneses

L
Large amounts of advertising expenditure
Large stocks
Less sophisticated overseas markets
Limitations of the free market philosophy
Locations of points of sale
Long- and short-term pricing policies
Look for market opportunities
Lose ( gain)in a commercial transaction
Loss leader
Low and sluggish sales
Low-priced
Lure the customer towards the product
Luxury goods

M
Mail-order
Market leader
Market niche
Market opportunities
Market researcher
Market segmentation
Market share
Marketing concept
Marketing environment
Marketing function
Marketing mix
Marketing plan
Marketing programme
Marketing Strategy
Market-oriented firm
Market-place
      Business English is…                                  11                   Module 3

Markup
Massive advertising campaigns
Maturity phase
Meet consumer preferences more successfully
Mid priced
Most effective kinds of outlets

O
Off-licenses
Offer free samples
Online databases
Own label brands
Open questions

P
Packet tops
Persuasive advertising
Position a product
Possible credit terms
Premium product
Present the findings
Press release
Prioritizing question
Price mechanism
Pricing
Pricing policy
Primary data
Proceed with a new model
Producer market
Product launch campaigns
Product portfolio
Product’s wrapper (container)
Production issues
Profitable possibilities of filling unsatisfied needs
Promote products, services, events and people through TV and radio commercials
Promote and organise the sale of products to the purchaser
Promotional work
Public relations
Put a new product into the market
Provide data about attitudes and responses to products

R
Rank the points
Rate the importance of
Reach a peak (about sales)
Reduce confidence in advertising
Regardless of the social costs
Research instruments
Research objectives
Resisting consumers
Respondent
Response rate
Retail outlet
Risk unwelcome publicity

S
Sales force
Sales promotion, advertising and market research
Satisfy existing needs
Saturation phase
Scaled question
Scourge of capitalism
Secondary data
Sell on to retailors
Sell advertising space
Selling concept
Set prices
Set up a production line for
Single-use consumer good
Size of a potential market
      Business English is…                                   12                                        Module 3

Slight reduction in the price of the product
Specialised goods
Standing order
Stimulate sales of a product
Stick to a known brand
Stock the product
Stop sales from declining
Subtle advertising

T
Target audience
Target customer
Target market
The growth stage of the product life cycle
The likely consumer reaction to smth
The product life cycle
The route a product takes on its way the the customers
Thought-provoking advertising
TV commercial
Two facets of the same undertaking

U
Ugly and unstable society
Undertake market research
Usable questionnaire

W
Way of getting round smth
Wide range of retail outlets
Word of mouth advertising




III. PRACTICE


1. Listening.
   You will hear two people discussing Point of Purchasing (POP) projects. Choose
   the best phrase to answer or complete the questions below.


1. What do POP projects aim to do?                              5. Some companies are investing in planning and
    A encourage managers to plan their advertising                 research to
    B increase sales of particular products                         A encourage the use of POP
    C increase the amount spent on advertising                      B cut the costs of POP.
2. Why has interest in POP been slow to develop?                    C assess the benefits of POP
    A Most other forms of advertising are cheaper.              6. The Cheltenham and Gloucester Building Society
    B The displays are difficult to set up.                        improved their sales of pensions by
    C Managers need to make large initial investments.              A offering well-designed leaflets and brochures.
3. What has made TV advertising less effective?                     B focusing advertising in specific physical areas.
    A The number of TV channels has increased.                      C making better use of wall space for posters.
    B People are watching less TV these days.                   7. Why do large stores want to control POP campaigns?
    C The quality of TV commercials is poor.                        A Stores may be unable to cope with demand.
4. Samsung believes that POP will work for them                     B Stores do not approve of POP
  because                                                           C Stores may sell less of their own products.
    A its products are of the best quality.                     8. What is one of the problems facing POP agencies?
    B customers can be persuaded to change their                    A There is a shortage of retail space.
      minds.                                                        B There are insufficient POP specialists.
    C other companies do not give value for money.                  C There is not enough interest in the medium.
      Business English is…                                     13                                           Module 3

  2. Read the following text and prepare a talk on ‘International Marketing’
                                   Having made a                        make great efforts to find customers for their
                               product the problem                      cars, only to find the cars cannot be delivered on
                               becomes      to    find                  time, or that the cars develop faults as soon as
                               someone who will                         they arrive.
                               buy it. It is the                               The problem facing any business is that
                               responsibility of the                    the market for goods and services - is ever
                               marketing department                     changing. Take the case of a company
                               to    promote       and                  manufacturing cigarettes. Not so long ago the
                               organise the sale of                     market for cigarettes was assured. Then the
  products to the purchaser. Broadly speaking,                          medical researchers discovered the link between
  activities such as sales promotion, advertising                       cigarette smoking and lung cancer and many
  and market research are covered. It would be                          other diseases. Prospects for further growth
  possible for the factory simply to produce a                          evaporated as many people decided both to save
  motor car and then hope that it sells. However, it                    money and live longer to spend it. The
  takes a long time to set up a production line for a                   government joined in by restricting advertising
  car assembly plant and even minor modifications                       and sponsoring their own anti-smoking
  can prove difficult and expensive. It is much                         campaign.       The     government      is    also
  better to discover what people are looking for                        understandably involved in campaigns to
  when they buy a car and then try to satisfy their                     discourage drinking and driving, much to the
  needs. Do car drivers want speed - or safety? Are                     chagrin of the breweries whose sales of wines
  they looking for the power to accelerate - or                         and spirits are thereby reduced.
  comfort? Is their aim to impress their neighbours                            New technologies have an even more
  and other road users, or are they just concerned                      devastating effect on the markets. Once upon a
  with getting from A to B and back? How                                time there was a very successful company which
  important is the price, and the cost of petrol and                    made gas mantles. The whole country was lit by
  maintenance? Which designs and colours are                            gas. Then came electric light. The sales of gas
  preferred? Who is buying the car? Is it a                             mantles plummeted. Today we look to oil for our
  company or an individual? It is questions like                        energy. Our oil companies prosper, but for how
  these the marketing department will have to                           long? The day before yesterday we used
  answer even before production commences.                              typewriters. Yesterday we used electric
          It becomes obvious that making and                            typewriters. Today we use word processors. And
  selling are two facets of the same undertaking.                       tomorrow?
  The marketing manager and the production                                     The rapidly changing world is both a
  manager are two members of the same team,                             headache and an exciting challenge to those
  depending on each other in much the same way                          engaged in marketing. If they predict correctly
  as the players in the Liverpool football team.                        their business will survive and prosper. If they
  What good does it do if our strikers are scoring                      misread the signs the business will fail and,
  goals but our goalkeeper keeps having to pick                         perhaps more importantly for all of us, valuable
  the ball out of the back of the net? This situation                   economic resources will be wasted.
  could be compared to the marketing team who




3. Listening.
   You will hear five different people talking about advertising campaigns. Choose the method of
   advertising they have chosen from the list A-H. Choose the purpose of the advertisement from
   the list a – h

       Method of advertising                                         Purpose of advertisement
       A television                                                  a. to advertise a job
       B radio                                                       b. to launch a new product
       C national newspaper                                          c. to announce new opening times
       D local newspaper                                             d. to publicise a sale
       E the internet                                                e. to announce a change in location
       F poster                                                      f .to change the company's image
       G direct mail                                                 g. to give information about sales figures
       H free samples                                                h. to promote a catalogue
       1____ 2____ 3____ 4____ 5____                                 1____ 2____ 3____ 4____ 5____

				
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