15 Match the expression in the left column with synonymous expression in the right one and complete the Useful Language box with these expressions accordingly.

1. In conclusion a. I believe that

2. On the other hand b. More than that

3. I might as well add that c. I agree

4. My point is that d. To sum up

5. That's true e. I don't agree

6. Quite the contrary f. while I accept that

16 Read what famous people said about market. Discuss the position of the authors. Support your point of view with reasons and examples from your reading, your observa­tions or your own experience. Use the expressions from the Useful Language box to develop your idea and express your opinion.

1. Markets change, tastes change, so the companies and the individuals who choose to compete in those markets must change.

An Wang (1920-1989), Chinese American physicist

2. The only reason to invest in the market is because you think you know something others don't.

R. Foster Winans, American businessman

3. Advice is the only commodity on the market where the supply always exceeds the demand.

Thomas J. Peters (1942-), American management consultant

4. Supply always comes on the heels of demand.

Robert Collier, American writer, publisher

5. Always think of your customers as suppliers first. Work closely with them, so they can supply you with the infor­ mation you need to supply them with the right products and services.

Susan Marthaller

17 Read what famous people said about competition. Discuss the extent to which you agree or disagree with the opinion stated below. Support your point of view with reasons and examples from your reading, your observations or your own experience. Use the expresions from the Useful language box to develop your idea and express your opinion.

1. Success by the laws of competition signifies a victory over others by obtaining the direction and profits of their work. This is the real source of all great riches.

John Ruskin (1819-1900), British critic, social theorist

2. Competition is the keen cutting edge of business, always shaving away at costs.

Henry Ford (1863-1947), American industrialist, founder of Ford Motor Company

3. There are two kinds of people: Those who do the work and those who take the credit. Try to be in the first group because there is less competition there.

Indira Gandhi (1917-1984), Indian Prime Minister

4. Like many businessmen of genius he learned that free competition was wasteful, monopoly efficient. And so he simply set about achieving that efficient monopoly.

Mario Puzo (1920-), American novelist

5. The price which society pays for the law of competition is great; but the advantages of this law are also greater still than its cost — for it is to this law that we owe our wonderful material development, and while the law may be sometimes hard for the individual, it is best for the race, because it ensures the survival of the fittest in every department.

Andrew Carnegie (1835-1919), American industrialist

Chapter FOUR MARKETING

Unit 1. READING AND TRANSLATION PRACTICE

ESSENTIALS OF MARKETING

What is marketing? Marketing is the process responsible for identifying, anticipating and satisfying customer requirements profitably.

What is 'the marketing mix'? The marketing mix is made up of four components, sometimes called the four Ps. These are:

1. Product: the firm has to identify what products the consumer wants and the way existing products can be. adapt­ed to meet consumer preferences more successfully.

2. Price: a firm has to decide on its pricing policy for list prices, discount for bulk-buying and interest-free credit. A low price may make consumers suspicious ('cheap and nasty') or the low price may be thought of as a bargain ('cheap and cheerful'). If the price of the product is too high then the com­pany may be pricing itself out of the market. If the price of the product is higher than what competitors are charging then it must be justified in some way, e.g. because the quali­ty of the product is higher.

3. Promotion: this amounts to choosing methods that can generate sales of the product. Possibilities here include advertising, personal selling, publicity and other promotion­al work.

4. Place: the product has to be in the correct place - retail outlet - in order to capture sales. Exactly where a firm decides to sell its product will depend on the nature of the product.

Aspects to be considered in marketing a product include its quality, its features, style, brand name, size, packaging, services and guarantee, while price includes consideration of things like the basic list price, discounts, the length of the payment period, and possible credit terms. Place in a market­ing mix includes such factors as distribution channels, cov­erage of the market, locations of points of sale, inventory size, and so on. Promotion groups together advertising, pub­licity, sales promotion, and personal selling. The next stage is to create long-term demand, perhaps by modifying particu­lar features of the product to satisfy changes in consumer needs or market conditions. The marketing task is to manage demand effectively.

It is quite noticeable that the marketing mix differs according to the type of product that is being sold. The fact that the term 'mix' is used implies that the four Ps - product, price, promotion and place - can be combined in different ways. One important factor that affects the marketing mix is the position of the product in its life cycle.

The period of time over which a product appeals to cus­tomers is called the product life cycle. At a given point in time a product will be at a particular stage of its life cycle. The length of this product life cycle differs from product to product, e.g. the life cycle of certain items such as clothing (flared or drainpipe trousers) and pop records may be very short indeed, perhaps a matter of months, or a few years at the outside. Other products, particularly consumer durable products such as telephones and colour TVs, may have a much longer product life cycle.

Before a product is introduced it generally has to be test­ed on a sample of consumers. The product's introduction may be accompanied by a blaze of publicity, heavy advertising and promotional work, e.g. the launch of a new car typically

involves large amounts of advertising to inform the con­sumer of its existence and features. A lot of new cars are first introduced at a prestigious motor show.

In the introductory phase the sales of the product tend to be low and sluggish, and the price of the product may be higher than it will be at later stages in the product life cycle due to the lack of competition and because the firm is trying to get back some of the costs of developing and launching the product.

What is SWOT? SWOT stands for strengths, weaknesses, opportunities and threats. A company that believes in mar­keting is forward-thinking and doesn't rest on its past achievements. It uses SWOT analysis to be aware of its strengths and weaknesses as well as the opportunities and threats it faces in the market.

Consequently, marketing is the process of developing, pricing, distributing and promoting the goods or services that satisfy customers' needs. Marketing therefore combines mar­ket research, new product development, distribution, advertis­ing, promotion, product improvement, and so on. According to this definition, marketing begins and ends with the cus­tomer. Truly successful marketing understands the customer so well that the product or service satisfies a need so perfect­ly that the customer is desperate to buy it. The product almost sells itself. Of course this will only happen if the prod­uct or service is better than those of competitors.