Module 10

Exercise 1. Give the definition to the following words.

Persuade (v); publicity (n); figure (n); exceed (v); erroneously (adv); intrusive (adj); manipulative (adj); primarily (adv); memorable (adj); expenditure (n).

Exercise 2. Read and translate the following text.

WHAT IS PROMOTION?

What do you think of when you hear the word promotion? Most people think of advertising. But promotion is much more than just advertising. Promotion is an attempt by marketers to persuade others to participate in an exchange with them. Marketers use many different tools to promote their products and services. Besides advertising, they use personal selling, word of mouth, public relations, publicity, and sales promotion to inform potential consumers about their organization and its goods and services. This combination of promotional tools is called the company’s promotional mix.

One reason most people mistake promotion for advertising is that they do not understand the differences among promotional tools such as advertising, personal selling, publicity, and word of mouth. Advertising is limited to paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the advertising message. Word of mouth is not a form of advertising because it does not go through a medium (newspaper, TV, etc.), it is not paid for, and it is personal. Publicity is different from advertising in that media space for publicity is not paid for. Personal selling is face-to-face communication and does not go through a medium; thus, it is not advertising. Anyone who watches television, listens to the radio, or reads magazines cannot help but notice the importance of advertising in our lives.

The importance of advertising in the United States is easy to document; one need only look at the figures. The total ad volume exceeds $118 billion yearly. The number one advertising medium in terms of total dollars spent is newspapers with about 26 percent of the total. Many people erroneously think that the number one medium is TV.

When people refer to advertising, they are usually talking about TV advertising. For example, the debate about the effect of advertising on children is really а debate about TV advertising and children. Similarly, when people talk about advertising being offensive, intrusive, manipulative, and so on, they are thinking primarily of TV advertising. But since only about 22 percent of advertising is TV advertising, there is much more to advertising than most people imagine.

Some of the leading TV ads of 1988 included those featuring the California Raisins and Michael Jackson for Pepsi. Joe Isuzu was also а big hit along with the ads for Bud Light and McDonald's. Such ads are memorable and tend to overpower the ads in other media.

The public benefits from advertising expenditures. First, advertising is informative. The number one medium, newspapers, is full of information about products, prices, features, and more. Does it surprise you to find that businesses spend more on direct mail than on radio and magazines? Direct mail (the use of mailing lists to reach an organization’s most likely customers) is an informative shopping aid for consumers. Each day consumers receive minicatalogs in their newspapers or in the mail that tell them what is on sale, where, at what price, for how long, and more.

Advertising not only informs us about products but it also provides us with free TV and radio programs because advertisers pay for the production costs. Advertising also covers the major costs of producing newspapers and magazines. When we buy a magazine, we pay mostly for mailing costs or promotional costs. Newspapers and radio are especially attractive to local advertisers.

Television has many advantages to national advertisers, but it is expensive. The average cost of a 30-second prime-time commercial in 1987 was $121,860. How many bottles of beer or bags of dog food must a company sell to pay for such a commercial? Is it any wonder that companies are now buying 15-second commercials to save money? Most companies selling consumer goods use ad agencies to prepare their advertisements.

Exercise 3. Answer the following questions.

1. What is the difference between advertising and promotion?

2. What are advertising media?

3. Why do people think that the number one medium is TV?

4. How do consumers benefit from advertising expenditures?

5. What kind of advertising do businesses prefer?

6. What costs do advertisers have to cover? Why is advertising so expensive?

Exercise 4. According to the text are the statements true or false?

1. Advertising is one of promotional tools that make up promotional mix.

2. Word of mouth is a form of advertising which goes through newspapers.

3. The number one advertising medium in terms of money spent is TV?

4. Consumers benefit from advertising expenditures because advertisers pay for the production of free TV and radio programs.

5. Television is especially attractive to local advertisers, though it is rather expensive.

6. Businesses spend more on direct mail than on other forms of advertising.

Exercise 5. Find in the text the English equivalents of the words.

Просувати товари та послуги; продаж через торгових агентів; престижна діяльність (інформація, реклама, пропаганда); стимулювання збуту; засоби та методи просування товарів; передавання інформації покупцям; передавання інформації через засоби масової інформації; особисті контакти; засіб передавання реклами; витрати на рекламу; пряма поштова реклама; бути в продажу; поштові витрати; витрати на рекламно-пропагандистську діяльність; рекламна програма в найкращий ефірний час.

Exercise 6. Give Ukrainian equivalents to the words and phrases.

Promotion; promotional mix; advertising; personal selling; word of mouth; public relations; publicity; sales promotion; media space; advertising medium; direct mail advertising; local/national advertising; commercial; ad agency.

Exercise 7. Match the words to their corresponding definitions:

1) persuade; 2) communication; 3) medium(-ia); 4) volume; 5) exceed; 6) debate; 7) feature; 8) expenditure; 9) cover; 10) commercial.

a) the exchange of information, news, ideas or opinions;

b) an advertisement on television or radio;

c) to be enough money for smth.;

d) talking over a question by at least 2 people or groups, each expressing different point of view;

e) to be greater than smth.;

f) spending or using up time, effort, money on a piece of work;

g) typical or noticeable part or quality;

h) to cause to do smth by reasoning, arguing, begging, etc.;

i) a method for giving information (the newspapers, television and radio);

j) amount produced by some kind of activity.

Exercise 8. Find in the text words and phrases which have the opposite meaning to those listed below. Use them in the sentences of your own.

Local advertisers; to spend money; nonpersonal communication; organization; similarity; to mail minicatalogues; agreement; friendly; paid TV and radio programs.

Exercise 9. Look at the words and give their derivations:

Noun Verb Adjective Adverb

– – intrusive –

– – – erroneously

– – manipulative –

– – – primarily

– – direct –

– – memorable –

promotion – – –

– – informative –

Exercise 10. Complete the sentences using the words mentioned before.

1. Some people make _____ thinking that promotion is the same thing as advertising.

2. People argue that sellers _____ their shopping behaviour by showing so many TV commercials.

3. We usually _____ commercials featuring famous people.

4. Advertising gives comsumers a lot of _____ about products.

5. Companies try to reduce _____ costs by mailing catalogues of their products ____ to the customers.

Exercise 11. Working in pairs do the following tasks.

1. What are the six elements of the promotional mix? What is the central focus of the promotional mix? Draw a scheme of promotional mix.

2. Read the passage below about two promotion strategies. Think of any product and describe how to implement a push strategy or/and pull strategy for this product (e.g. Coca-Cola drink). Push strategies versus pull strategies.

There are two ways to promote the movement of products from producers to consumers. The first is called a push strategy. In push strategy, the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise. If it works, consumers will then walk into the store, see the product, and buy it. The idea is to push the product down the distribution system to the stores. One example of a push strategy is to offer dealers one free case of soda for every dozen cases they purchase.

A second strategy is called a pull strategy. In a pull strategy, heavy advertising and sales promotion efforts are directed toward consumers so that they will request the products from retailers. If it works, consumers will go to the store and order the products. Seeing the demand for the products, the store owner will then order them from the wholesaler. The wholesaler, in turn, will order them from the producer. Products are thus pulled down through the distribution system. Dr. Pepper has used television advertising in a pull strategy to increase distribution. Of course, a company could use both a push and pull strategy at the same time in a major promotional effort.

3. Consult the Glossary to find information about the major classes of advertising. Give definitions and examples of retail, trade, industrial and institutional advertising. Explain the differences among different forms of advertising.

4. Can you list the advertising media in order based on the total amount of money spent by advertisers?

5. Bring in samples of advertising to show how informative consumer advertising can be. Bring in other ads that are not so informative. Discuss both sets of ads to see which are more effective in attracting consumer interest.

Exercise 12. Practise the pronunciation of the following words. Translate them into Ukrainian.

Exhibition (n); sample (n); supplement (v); enthusiasm (n); enthusiastic (adj); audiovisual (adj); participation (n); premium (n); incentive (n); maintain (v).

Exercise 13. Read and translate the following text.