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5.5. Complete the marketing collocations in sentences 1– 10 with the following words (a–j):

a) bring; b) declining; c) enter; d) flood; e) leader; f) niche; g) research; h) segmentation; i) share; j) study

1. The same product may interest teenagers in Europe and professionals in Africa: determining market … is about adapting the marketing mix to these different customer sub-groups.

2. Most companies are reluctant to invest … in promoting a product if it faces a market.

3. A custom-made product can be profitable if the company identifies and develops a small market segment or market … effec-tively.

4. Companies often try to capture market by cutting prices or offering special … deals.

5. Market is needed … in order to estimate the cost of doing business in a particular area.

6. The purpose of conducting a market is to obtain infor-mation about customers’ needs and … how well they are met.

7. The company with the biggest sales in the sector is known as the market …

8. Manufacturers sometimes … the market with cheap products to ‘buy’ new customers.

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9. Every great idea needs a manufacturer who is willing to invest in order to … it to market.

10. The quickest way for large retail chains to grow is to … new foreign markets.

5.6. Its easy to become confused about these terms: adver-tising, promotion, public relations and publicity, and sales. The terms are often used interchangeably. However, they refer to dif-ferent but similar activities. Some basic definitions are provided below. Add your own ideas to the suggested ones:

What is Advertising?

Advertising is bringing a product (or service) to the attention oft potential and current customers. Advertising is typically done with: signs, brochures, commercials, direct mail or e-mail messag-es, personal contact, etc.

What is Promotion?

Promotion keeps the product in the minds of the customer and; helps stimulate demand for the product. Promotion involves ongoing advertising and publicity (mention in the press). The ongo-ing activities of advertising, sales and public relations are often considered aspects of promotions.

What is Public Relations?

Public relations includes ongoing activities to ensure the company has a strong public image. Public relations activities in-clude helping the public to understand the company and its prod-ucts. Often, public relations are conducted through the media, that is, newspapers, television, magazines, etc. As noted above, public relations is often considered as one of the primary activities includ-ed in promotions.

What is Publicity?

Publicity is mention in the media. Organizations usually have little control over the message in the media, at least, not as they do in advertising. Regarding publicity, reporters and writers decide what will be said.

What is Sales?

Sales involves most or many of the following activities, in-cluding cultivating prospective buyers (or leads) in a market seg-ment; conveying features, advantages and benefits of a product or

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service to the lead; and coming to agreement on pricing and ser-vices.

An Example of the Definitions

The following example from the Reader’s Digest may help to make the above five concepts more clear.

— ’… if the circus is coming to town and you paint a sign saying ‘Circus Coming to the City Saturday’, that’s advertising. If you put the sign on the back of an elephant and walk it into town, that’s promotion. If the elephant walks through the mayor’s flower bed, that’s publicity. And if you get the mayor to laugh about it, that’s public relations. If the town’s citizens go the circus and they spend a lot of money at the circus, that’s sales’.

UNIT VII. ACCOUNTING

1. WHAT IS ACCOUNTING?

Text 1

The person who works in accounting describes this job. Learn the vocabulary in bold type:

a) Accounts

‘I’m an accountant. I work in Edinburgh for one of the big accountancy firms. We look at the financial records or accounts of a lot of companies. We work with the accountants of those compa-nies, and the people who work under them: the bookkeepers. I like my profession: accountancy.

Sometimes we act as auditors: specialists outside account-ants who audit a company’s accounts, that is, we check them at the end of a particular period to see if they give a true and fair view

(an accurate and complete picture). An audit can take several days, even for a fairly small company.

When a company’s results are presented in a way that makes them look better than they really are, even if it follows the rules, it may be accused of creative accounting or window dressing’.

b) Results

‘A firm reports its performance in a particular period in its results. Results for a particular year are shown in the company’s annual report. This contains, among other things, a profit and loss account.

In theory, if a company makes more money than it spends, it makes a profit. If not, it makes a loss. But it’s possible for a com-pany to show a profit for a particular period because of the way it presents its activities under the accounting standards or account-ing rules of one country, and a loss under the rules of another. If a company operates in many countries, its accountants are very aware of this.

A pre-tax profit or a pre-tax loss is one before tax is calcu-lated. An exceptional profit or loss is for something that is not normally repeated, for example the sale of a subsidiary company or the costs of restructuring. A company’s gross profit is before charges like these are taken away; its net profit is afterwards. The

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final figure for profit or loss is what people call informally the bot-tom line. This is what they really worry about!

If a company is making a loss, commentators may say that it is in the red. They may also use expressions with red ink, saying, for example, that a company is bleeding red ink or haemorrhag-ing red ink’.

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