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Предисловие

Учебное пособие “Business English – Marketing» предназначено для бакалаврантов 3-го – 4-го курсов направления «Менеджмент» (профиль «Международный маркетинг»), изучающих дисциплину «Маркетинг» и владеющих английским языком на уровне Pre-intermediate – Intermediate. Пособие обеспечивает дисциплину «Профессиональный иностранный язык», которая изучается в 4-м – 8-м семестрах в объёме 254 часа практических занятий (88 часов отводится на изучение курса «Маркетинг») и 250 часов самостоятельной работы студентов (88 часов отводится на изучение курса «Маркетинг»).

Цель учебного пособия – развитие и совершенствование у студентов навыков чтения и устной речи в рамках профессиональной тематики. Данное учебное пособие предполагает расширение словарного запаса у студентов по темам маркетинга, повышение знаний и правильного использования терминологии маркетинга, а также совершенствование коммуникативных речевых навыков на основе выполняемых упражнений.

Учебное пособие “Business English – Mаркетинг” предназначено для аудиторной работы, а также для самостоятельной работы студентов вне аудитории.

Учебное пособие состоит из 11 разделов по следующим темам маркетинга: роль маркетинга, комплекс маркетинга, маркетинговый план, маркетинговые стратегии, SWOT анализ, маркетинговые исследования, поведение потребителей и сегментация рынка, товары, ценообразование, размещение товара, стимулирование сбыта. Каждый раздел учебного пособия включает тексты по перечисленным темам и ряд упражнений для работы с активной лексикой, используемой в текстах. Тексты для чтения содержат ключевые понятия и проблемы маркетинга и сопровождаются следующими заданиями: подобрать английские эквиваленты к русским словам и словосочетаниям, подобрать соответствующие дефиниции к словам и словосочетаниям, найти в тексте слова и словосочетания согласно предлагаемым дефинициям, заполнить пропуски соответствующими словами, ответить на вопросы, сделать перевод с русского на английский, сделать сообщение по проблеме.

Кроме того, в сборник включены ролевые игры и учебные деловые ситуации для развития и совершенствования разговорных навыков по изучаемой тематике. Ролевые игры предполагают парную работу или работу в группах, ограниченное время подготовки и выполнения и принятие решений по проблеме с обязательным использованием ключевых фраз и выражений по изучаемой теме. Учебные деловые ситуации основаны на ситуациях, близких к реальным, и тесно связаны с основным текстом. Изучение проблемы, анализ и обсуждение возможных вариантов её решения, поиск наилучшего решения, поиск фактов и аргументов, позволяющих прийти к соглашению, – это умения, которые отрабатываются студентами в процессе работы с учебной деловой ситуацией.

При составлении данного учебного пособия была использована оригинальная зарубежная литература.

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Unit 1

The role of marketing

Read the text and answer the questions given below.

Marketing touches everyone’s life. It is the means by which a standard of living is developed and delivered to people. Many people confuse marketing with selling, but in fact marketing occurs both before and after the selling effect. Marketing actually combines many activities: marketing research, product development, distribution, pricing, advertising, personal selling, and others. All of them are aimed at identifying, serving, and satisfying consumer needs while at the same time meeting the organization’s goals. The main goal of marketing is to satisfy individual and organizational objectives.

Marketing begins and ends with the customer. Truly successful marketing understands the customer well. The product or service satisfies the customer’s need so perfectly that the customer is eager 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. The core concepts of marketing are needs, wants, demands, products, exchange, transactions, and markets.

Companies are always looking for marketing opportunities - possibilities of filling unsatisfied needs in areas in which they are likely to enjoy a competitive advantage, due to their particular competencies. Market segmentation, dividing a market into submarkets or segments according to customers’ requirements or buying habits, determines marketing opportunities. Once a target market has been identified, a company has to decide what goods or services to offer, always remembering the existence of competitors.

Marketers do not only identify consumer needs, they can anticipate them by developing new products. They have to design marketing strategies and plan marketing programs, and then organize, implement, and control the marketing efforts. As soon as the basic offer, for example a product concept, has been established, the company has to think about the marketing mix – the set of elements of a marketing program, their integration, and the amount of efforts that a company can make to influence the target market. The best-known classification of these elements is the

Four P’s: Product, Price, Promotion and Place or the marketing mix.

Aspects to be considered in developing a product include its quality, its features, style, brand name, size, packaging, services and guarantee. Price includes consideration of things like the basic list price, discounts, the length of the payment

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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.

Marketing can also involve the attempt to influence or change consumers’ needs and wants. Companies try to do this in order to sell their products. In other words marketers must be good at managing the level, timing and composition of demand, since actual demand can be different from what the organization wants.

Marketing practices have a major impact on people in our society. Interest in marketing is growing as more and more organizations in the business, international, and non-profit sectors recognize the ways in which marketing can improve a company’s performance.

Marketing is a dialogue over time with specific groups of customers, whose needs you understand in depth and for whom you develop an offer with differential advantage over the offer of competitors.

Comprehension / interpretation

1.What activities does marketing combine? What are all these activities aimed at? Who do the marketers principally focus their attention on?

2.What is meant under marketing opportunities of a company? How should a company act to enjoy its advantages and keep control over this or that market segment?

3.What is a marketing mix? Give the definition of each P.

4.Why is the creating of long-term demand so vital for marketing? What is marketing?

5.Why have many nonprofit organizations adopted marketing techniques in recent years? For example, how does your academy market itself to attract new students?

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Language focus

1. Translate the following words and word partnerships into English. Look at

n)a type of product produced by a particular maker

o)to put into practice; to carry out

p)bargain, deal

q)to have an effect/influence on

3.Fill in the missing words in the sentences below. Choose from the following. One word is used twice.

Marketing is concerned with getting the right (1) ….. to the right (2) ….. at the right (3) ….. . Marketing is about meeting consumer (4) ….. at a (5) ….. Marketing makes it easier for (6) ….. to do business with you. First marketing aims to find out what people (7) …….. ; then (8) …….. and (9) …….. a (10) …….. or

(11)…….. that will satisfy those wants; and then determine the best way to

(12)…….. (13) …….. and (14) …….. the product or service.

4. “Selling focuses on the needs of a seller; marketing on the needs of the buyer. Selling is preoccupied with the seller’s need to convert his product into cash; marketing with the idea of satisfying the needs of the customer…’

Theodore Levitt, marketing expert

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The selling concept and the marketing concept are frequently confused. Look at selling and marketing approaches and speak on the difference between selling and marketing concepts.

Explain what selling and marketing concepts start with, what they focus on, what they should end in, and what means they use to achieve profits.

e.g. The selling concept starts with the factory while the marketing concept starts with a well-defined market.

Selling approach: focus – products;

means – selling and promoting;

ends – profits from selling more volume Marketing approach: focus – customer needs;

means – marketing activities affecting customers; ends – profits through customer satisfaction.

5. Read the job advertisement and choose the correct answer (a or b).

Culture-Insight

Culture-Insight – the UK’s leading intercultural communication and international management skills training company – is recruiting.

Culture-Insight believes in giving people the skills they need to work in today’s international business community. By empowering staff to be more effective in the global market, Culture-Insight helps organizations fulfil their international potential.

An opportunity has now arisen for two marketing executives to join our team. Culture-Insight …

1) a is a product-focused organization.

2) a is a private sector organization

3) a works in business-to-consumer markets.

Read the rest of the job advertisement and answer the questions:

1.As marketing executives in a company like Culture-Insight, what tasks do you think you will be responsible for (e.g. carrying out market research, managing databases)?

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2.What skills, characteristics and knowledge do you think you will need (e.g. interpersonal skills, creativity, business awareness)?

In this role you will be responsible for building relationships and liaising with a range of stockholders, both internal and external. You will be expected to manage the production and distribution of a product; to conduct market research; to monitor competitor activity; to analyze pricing positions; to maintain and update databases; to organize and attend events and exhibitions; to evaluate the success of marketing campaigns; to plan and implement direct marketing activity; to assist in the creation and implementation of a marketing and communications plan in conjunction with the Marketing Manager and other colleagues.

To succeed as a Marketing Executive for Culture-Insight, you must have:

-first-class interpersonal and analytical skills

-the ability to use initiative, to influence, to negotiate, and to work well in teams

-numeracy, creativity, drive, business awareness, and IT literacy

-good oral and written communication skills.

In addition, an understanding of the world of international business and the importance of intercultural communication is essential, as is a willingness to travel. Knowledge of at least two European languages is preferred.

These positions are open to both recent graduates in relevant subjects and experienced B2B junior marketing professionals.

6.Match the verbs (1 – 12) to the words and phrases (a – l) which appear in the job advertisement. All these collocations make tasks that marketing executives are often responsible for. Translate them into Russian.

l)relationships with stakeholders

7.Translate the following sentences from Russian into English using word partnerships from the exercise above.

1.Как работник службы маркетинга, я выполняю различные функции: провожу исследование рынка, тесно сотрудничаю с акционерами компании, контролирую деятельность конкурентов.

2.Я несу ответственность за поддержку и обновление базы данных, проведение маркетинговых мероприятий и выставок.

3.Моя обязанность – контролировать цены на рынке, давать оценку успешным маркетинговым компаниям.

4.Я помогаю руководителю отдела маркетинга создавать и выполнять маркетинговые и коммуникационные планы.

5.Вместе с руководителем отдела маркетинга и другими коллегами я руковожу производством товара и его распространением, анализирую положение цен на рынке.

8.Read and translate the following sentences paying attention to the different types of marketing.

1.Conversional marketing is the difficult task of reversing negative demand, e.g. for dental work, or hiring disabled people.

2.Stimulational marketing is necessary where there’s no demand, e.g. which often happens with new products and services.

3.Developmental marketing involves developing a product or service for which there is clearly a latent demand, e.g. a non-polluting and fuel-efficient car.

4.Remarketing involves revitalizing falling demand, e.g. for churches, inner city areas, or ageing film stars.

5.Synchromarketing involves altering the time pattern of irregular demand, e.g. for public transport between rush hours, or for ski resorts in the summer.

6.Maintenance marketing is a matter of retaining a current (maybe full) level of demand, e.g. in the face of competition or changing tastes.

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7.Demarketing is the attempt (by governments rather than private businesses) to reduce overfull demand, permanently or temporarily, e.g. for some roads and bridges during rush hours.

8.Countermarketing is the attempt to destroy unwholesome demand for products that are considered undesirable, e.g. cigarettes, drugs, handguns, or extremist political parties

9.Match up these marketing actions with the eight functions described above. Explain under what circumstances we should use them.

a.Alter the pattern of demand through flexible pricing, promotion, and other incentives.

b.Connect the benefits of the product with people’s needs and interests.

c.Find new target markets, change product features, develop more effective communication.

d.Find out why people dislike the product, and redesign it, lower prices, and use more positive promotion.

e.Increase prices, reduce availability, make people scared.

f.Keep up or improve quality and continually measure consumer satisfaction.

g.Measure the size of the potential market and develop the goods and services that will satisfy it.

h.Raise prices, reduce promotion and the level of service.

10.Read the following sentences about the market structure. Choose the

correct alternative to complete each sentence.

1.In many markets there is a firm with a much larger market share than its competitors, called a ………………… .

2. A large company having business operations in many countries is called a

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3.A company that is number two in a market, but which would like to become number one is known as a ………

4.A smaller company in a market, more or less content with its existing market share and presenting no threat to the market leader, is called a ….

5.A small company that concentrates on one or more particular niches or small market segments is called ……….

6.A market in which one single producer can fix an artificially high price is called …………….. .

7.A market selling goods aimed at the widest possible number of consumers

(a famous example was selling the Model T Ford) is called ………….

8.A market dominated by a few large suppliers, and which it is hard for new companies to break into, is called a/an ……………

9. A large corporation or a group of companies joined together and marketing a large number of different goods is called a …………….

10. A group of companies which choose to collaborate by sharing out markets, co-ordinating their prices, and so on, form a ………………

11. A business activity in which two or more companies have invested together is called …………

12.A market in which it is normal to have only one supplier – e.g. utilities such as water, gas, electricity – is called a ………..

11.Find the appropriate English words to the following definitions in Russian. Look at the exercise above to help you.

1) компания, занимающая самую большую долю на рынке;

2)компания, занимающая определённую нишу на рынке;

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3)компания, обладающая исключительным правом определять и устанавливать цену на рынке;

4)рыночная ситуация с ограниченным числом крупных фирм;

5)крупная компания, работающая в разных странах;

6)компания, претендующая на лидерство;

7)конкурирующая компания, компания-конкурент;

8)компания, не представляющая угрозы для лидера, компанияпоследователь;

9)компания с долевым участием;

10)убыточная компания, компания, терпящая неудачу; Loss company

11)группа компаний, которые сотрудничают, разделяя рынок на сферы действия и координируя цены;

12)совместное (смешанное) предприятие;

13)рыночная ситуация, при которой каждому из сегментов рынка предлагаются товары, созданные специально для того или иного сегмента;

14)рыночная ситуация, при которой используется

единообразный подход ко всему рынку с одним товаром.

Marketing Practice: McDonald’s applies the marketing concept

Read and discuss the following:

McDonald’s corporation, the fast-food hamburger retailer, is a master marketer. With over 10,000 outlets in more than 50 countries and over $14,3 billion in annual sales, McDonald’s doubles the sales of its nearest rival, Burger King, and triples those of third place Wendy’s. Nineteen million customers pass through the famous golden arches every day. McDonald’s now serves 145 hamburgers per second.

Credit for this performance belongs to a strong marketing orientation:

McDonald’s knows how to serve people and adapt to changing consumer wants. In

1955, Ray Kroc, a 52 year-old salesman of milkshake –mixing machines, became excited by a chain of seven restaurants owned by Richard and Maurice McDonald. Kroc liked their fast-food restaurant concept and bought the chain for $2.7 million. He decided to expand the chain by selling franchises, and the number of restaurants grew rapidly. Times changed, and so did McDonald’s. It expanded its sit down sections, improved the décor, launched a breakfast menu, added new food items, and opened new outlets in high-traffic areas.

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Kroc’s marketing philosophy is vividly shown in McDonald’s motto of “O.S.C.&V.”, which stands for quality, service, cleanliness, and value. Customers enter a spotlessly cleaned restaurant, walk up to a friendly counter person, quickly receive a good-tasting hamburger, and eat it in or take it out. McDonald’s is a family affair, appealing strongly to children. McDonald’s has mastered the art of serving consumers, and it carefully teaches the basics to its franchisees and employees who take running courses at McDonald’s “Hamburger University” in

Illinois.

McDonald’s continually monitors products and service quality through customer surveys. It puts great energy into improving hamburger production methods in order to simplify operations, bring down costs, speed up service, and bring greater value to customers. Beyond these efforts, each McDonald’s restaurant works to become a part of its neighborhood through community involvement and service projects.

The McDonald’s focus on consumers has made it the world’s largest food-service organization. The company’s huge success has been reflected in the increased value of its stock over the years: 250 shares of McDonald’s stock purchased for less than $6,000 in 1965 would be worth over a million today.

Read the goals of the marketing system and answer the questions given below.

The goals of the marketing system are:

Questions:

1.How could McDonald’s achieve these goals and hold the position of a leader on the world consumer market?

2.What factors contributed to McDonald’s huge success on the market?

Unit 2 The Marketing Mix 1

Read the text and say whether the statements given below the text are true or false.

The marketing mix (also known as 4Ps) is used by business to help them to reach their objectives and to plan and visualize their strategy. These 4Ps are controllable

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variables, which have to be carefully managed and must meet the needs of the defined target group of customers.

Product

When placing a product within a market many factors and decisions have to be taken into consideration. These include:

Product design: Will the design be a USP (Unique Selling Point i.e. the things that make the product special and different from other similar products) for the organization?

Product quality: Quality has to be consistent with other elements of the marketing mix. A premium pricing strategy has to reflect the quality a product offers. Product features: What features will you add that may increase the benefit offered to your target market?

Branding: A brand is a tool which is used by an organization to differentiate itself from competitors. Think about the Nike logo and how this influences people’s ideas on the product.

Price

Pricing is one of the most important elements of the marketing mix, as it is the only one of the 4Ps which generates a turnover for the organization. The remaining 3Ps are costs for the organization. Pricing should take into account the following factors: costs of producing the product, prices competitors charge, company objectives, target group and willingness to pay.

There are three main pricing strategies an organization can adopt:

1.Penetration pricing – the organization sets a low price to increase sales and market share.

2.Skimming pricing – the organization sets an initial high price and then slowly lowers the price to make the product available to a wider market. The objective is to skim profits off the market layer by layer.

3.Competition pricing – setting a price in comparison with competitors.

Place

This refers to how the organization will distribute the product or service they are offering to the end user. The organization must distribute the product to the user at the right place at the right time.

There are two channels of distribution they can use:

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1.Indirect distribution involves distributing the product by the use of a

‘middleman’, for example, a manufacturer can sell to a wholesaler and then the wholesaler sells to the retailer.

2.Direct distribution involves distributing direct from a manufacturer to the consumer – for example, Dell Computers selling directly to its target customers. The advantage of direct distribution is that it gives a manufacturer complete control over the product.

Promotion

A successful product or service means nothing unless the benefits are communicated in an effective message delivered on a channel that is seen or heard by the target market. Examples of channels include advertising, public relations or developing positive relationships with the media, personal selling or selling a product or service one-to-one, direct mail, sports sponsorships, in-store promotions, etc. Companies with effective message strategies included: Nike Just do it and Toyota: The car in front is a Toyota.

Comprehension / Interpretation

Read the statements and decide whether they are true or false.

1.The 4Ps are used by companies to think about their marketing strategy.

2.The company changes its marketing mix to satisfy the needs of its target market.

3.If you have high prices, you need to provide a high-quality product.

4.A logo doesn’t add any value to a product.

5.Pricing is just one of the elements of marketing mix.

6.Indirect distribution gives a manufacturer full control over the product.

7.Promotion is how you tell consumers about the product or service.

Language focus

1.Translate the following words and word partnerships into English. Look at the text to help you.

конкурентов; ценообразование; создавать (формировать) товарооборот;

2.Find these phrases in the text and match them with the correct definition, (a or b).

1)controllable variables

a)factors which are under the company’s control

b)factors which control the company

2)a USP (Unique Selling Points)

a)an exclusive place where the product is sold

b)an exclusive feature of the product that no other competitor product has 3) premium pricing strategy

a)a strategy of high prices

b)a strategy of competitive prices

4)target market

a)aims and objectives of the company in a specific market

b)groups of customers that the company is aiming its products at

5)differentiate itself from the competition

a)show clear differences from competitor products

b)avoid difference with competitor products

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6)skimming pricing

a)setting a low price to increase sales and market share

b)setting an initial high price lowering it slowly then to attract a wider market

7)direct distribution

a)distributing a product from a manufacturer to a buyer

b)distributing a product from a manufacturer through a wholesaler to a retailer and to a consumer

4.Complete the sentences below with the words and word partnerships from exercise 3.

1.It is necessary to define the ….. so that we can communicate the benefits of the product to these people.

2.An important part of getting the product to the customer at the right time and at the right place means we must decide on the best ….. .

3.It is essential for a successful brand to be able to ….. .

4.As companies can decide for themselves how to use the 4Ps they are considered ….. and are an important part of the marketing strategy.

5.Products move along the ….. and finally reach the people who use the product so everything must go smoothly.

6.The ….. or special feature of the product, must be communicated to the people we want to reach.

7.An important part of our marketing strategy is to ensure that the ….. is satisfied with our product.

8.A ….. demonstrates that our product is of very high quality.

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7. Match these sentence halves together. Translate the sentences.

1.If we know before the launch that the product has some problems, …

2.If our company knows the market well, …

3.If we spend much time on market research, …

4.If we concentrate less on promotion, …

5.If we concentrate first on an exclusive group of customers in a niche market, …

6.If we want to make our channel of distribution more cost-efficient, …

7.If our products are high quality, …

8.If we realize how price sensitive the product is, …

a)we can save time and money on the media campaign.

b)we won’t raise the price dramatically.

c)we can give a more accurate sales forecast for next year.

d)we can use price skimming at the beginning of the launch as this group is now very price sensitive.

e)we will try to solve them before we begin to sell it.

f)we will have a much better image in the industry.

g)we may find out that we are aiming at the wrong target group.

h)we can consider using intermediaries rather than direct sales.

Marketing practice:

You are going to plan the 4Ps marketing strategy for No Rinse Shampoo, a shampoo that cleans your hair without the need for water. It is used by the North American Space Agency, NACA.

Stage 1

Decide what target customer groups you could market this product to. You can choose from the following or a group of your own:

Campers, travelers, long-distance lorry drivers, cyclists, climbers, fishermen, the military, patients in hospitals.

Stage 2

Select one of the target customer groups and plan the marketing strategy (product, place, price and promotion) to attract these customers in a market that

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you know well. Think over the questions below and take some notes of your discussion.

Product – What size bottles would sell best in this market? Would you change the bottle design and / or the information on the bottle? Would you add new ingredients to create a range of shampoos?

Price – What pricing strategy would you use? What research might you want to do before deciding the price? What are your first thoughts on how much you could charge?

Promotion – With a very limited budget, what channels would you use to communicate to your target customers? How would you develop a message (text / visual, e.g. TV commercial, etc.) that best communicates the benefits of this product?

Place – Where will these target customers want to be able to buy your product? Is it best to sell direct or via intermediaries?

Stage 3

Make your presentation of your 4Ps marketing strategy and be prepared to answer any possible questions.

The Marketing Mix 2 The four Cs, As and Os

Some marketers added new ways of thinking about marketing to the traditional four Ps. The Ps, Cs, As and Os can be combined when looking at the marketing mix. Read the information and pay special attention to the word partnerships in bold.

Besides, there is an acronym, AIDA, which represents the steps a marketer takes in order to persuade customers to buy a product or service.

Put the steps in the right order, read the sentences and translate them.

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1.Action: Finally, marketing must prompt action to purchase, so that customers take steps to buy the product – for example, by going to the shop or ordering it online.

2.Desire: Next, marketing must develop a desire to own or have the product so that customers actively want the product.

3.Interest: Then, marketing must create an interest in the product. Customers will develop an interest in the product.

4.Attention: Marketing must first attract the customer’s attention to the product. Customers become aware of a product and know it is available.

Language focus

1. Translate the following words and word partnerships into English. Look at the table given above to help you.

acceptability, awareness, cost to user, objects, accessibility, communication, customer needs, operations, affordability, convenience, revenue objectives, organization branding, competitors, customers, delivery, direct marketing, discounts, quality, distribution, launch, location, reputation, sales force, special deals, support.

3. Replace the words and word combinations in bold with alternative words and word partnerships given below. Translate the sentences.

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1.Mobile phones are fashionable and attractive to the youth market.

2.We have a reputation for providing good standard mobile phones.

3.The cost to user of mobile phones is kept down because they are subsidized by the network providers.

4.This means more people can have the money to buy the product.

5.More and more, customers buy mobile phones online because it is more accessible.

6.Expected earnings from 3G phones were not met when the products were first launched.

3.Today some marketers talk about additional 4Ps:

People: how your staff (or employees), are different from those in a competitor’s organization, and how your clients are different from your competitor’s clients.

Physical presence: how your shop or website looks.

Process: how your product is built and delivered, or how your service is sold, delivered and accessed.

Physical evidence: how your service becomes tangible. For example, tickets, policies and brochures create something the customers can touch and hold.

A marketing manager is talking about marketing mix for a brand of cleaning products. Choose the correct words from the brackets to complete the text, and then match each speech extract with one of the Ps.

1.Our (staff / reputation / competitors) are highly motivated. We really believe in our brand. For example, (our consumers / employees / customers) are always trying to improve what we do.

2.Our (tools / range / support) includes detergent, toilet cleaner and sponges.

3.We use a lot of (advertising / presence / promotional), usually in women’s magazines.

4.You can find the brand in supermarkets and local shops. The (tangible / accessibility / process) of our (staff / mix / outlets) is important. We need to be in a lot of (locations / supports / distributions) so that we are easy to find.

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5.We are more (accessibility / reputation / expensive) than our (competitors / staff

/sales) but we offer good credit terms and we sometimes sign special (deals / processes / support).

4.Complete the article about a supermarket in-store event using the words

This week, Tesco launches its biggest ever ‘Health Event’ – illustrating its commitment to helping (1) _____ lead a healthy and active lifestyle. The supermarket has (2) _____ health as an important customer concern and is working to (3) _____ the needs of its customers.

Hundreds of (4) _____ operations for healthy products will run all over the store, from fresh produce through to grocery and healthcare lines. Tesco hopes that (5) _____ of its initiative will be high.

5.The following statements represent the marketing strategy of a chain offering domestic help for the elderly, based on 7 Ps. Match each statement with one of the Ps.

Product – price – place – promotion – people – process – physical evidence

1.All employees are well trained; uniforms give a smart, professional appearance.

2.Employees have a specific client list. A relationship is built and the client feels secure. Supervisors regularly check client satisfaction.

3.Networking at health sector events, advertising in local newspapers, website.

4.Researching costs (pay rates, numbers of staff required) that are affordable to government organizations or charities.

5.Providing a care service for elderly people so they can live with dignity and comfort in their own homes.

6.Delivery of the service is directly to clients in their own homes.

7.Establishment of one office per town to ensure recognizable market presence, website aimed at clients, families and healthcare professionals.

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6. Translate the following text into English.

После выбора целевых потребителей организация должна предпринять шаги по удовлетворению их потребностей. Один человек в отделе маркетинга, как правило, управляющий по маркетингу, отвечает за разработку комплексной маркетинговой программы. Цель программы состоит в выведении товара на рынок.

Эта цель достигается за счёт использования совокупности (a total) четырёх элементов комплекса маркетинга, которые часто называют «четыре P»:

Продукт – товары, услуги или идеи, предназначенные для удовлетворения нужд потребителя.

Цена – денежная сумма, которую потребители должны уплатить для получения товара.

Продвижение – средства коммуникации между продавцом и покупателем.

Каналы распределения – деятельность по доведению продукта от производителя до конечного потребителя.

Элементы комплекса маркетинга называются контролируемыми факторами по той причине, что они находятся под контролем маркетинговой службы организации.

Существует множество факторов, которые не поддаются контролю со стороны организации и её отдела маркетинга. Эти факторы можно разделить на пять групп – социальные, экономические, технологические, конкурентные и правовые.

Для потребителей конкретной продукции маркетинг создаёт полезность, иначе говоря, выгоду или ценность покупки (ощущаемую ценность). Существует 4 вида полезности:

Полезность формы – производство товаров или услуг.

Полезность места означает размещение товара в доступных для потребителей местах.

Полезность времени – обеспечение наличия товара в то время, когда потребители хотят его купить.

Полезность обладания (possession) – это доставка товаров потребителям с тем, чтобы они могли воспользоваться ими.

Таким образом, маркетинг обеспечивает потребителям полезность формы, места, времени и обладания, предоставляя товары и услуги, необходимые потребителю, в нужном месте и в нужное время.

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9. Read the text about the company profile of IKEA and speak on their marketing strategy (product, price, place and promotion). How do they attract customers to their products? What are the advantages of the company’s marketing strategy for customers? What benefits or values do IKEA customers have?

IKEA, a Swedish multinational, sells more furniture and functional products for the home such as lamps, photo frames, bed linen and many other items than any other company of this type in the world. It operates in more than 38 different countries. The managing director of IKEA says: “We are proud of our home furnishing range. Every one of our products has three important dimensions: functional design, good quality materials and, most important of all, amazingly low prices. We call it Democratic

Design.”

The company has a very good range of products. You can get good quality for the price you can pay. The products in the IKEA stores are accessible. You are able to see the products, touch them or try them out. The layout of the stores is very convenient. It doesn’t take the customers much time to find the product they need. Besides, there are special playrooms where parents can leave their children while they are making their purchases.

It was the first company to sell flat-pack furniture on a wide scale. Flat-pack furniture is packed in smaller, flat packs that take up less space and it can be taken home by the customer without a delivery van. The customers must then put the furniture together themselves. This means that IKEA can keep prices lower as there are lower costs for storage space and distribution.

Most of the products are environmentally sound. Businesses have to think about the long-term effects of providing the goods and services that consumers want. Organizations try to operate in a sustainable way. This means that they supply goods in a way that is of benefit to both customers and the environment. Around half of IKEA products are made of wood which is a good source of material as it is recyclable and renewable.

Customers do not always know where goods have come from or the stages through which they pass before they are ready for sale.

One of the ways in which IKEA tries to include the customer in its supply chain is by being open about how it operates. The company makes information about its supply chain available on its website.

In the information about its supply chain, IKEA has divided it into three stages:

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raw materials (the primary sector) manufacturing (the secondary sector)

distribution and retailing services (the tertiary sector)

What information do you expect the company to give about the different sectors?

Unit 3 Marketing plan

Read the text about a marketing plan using the stages known as AOSTC. Answer the questions and speak on the statements given below.

The company’s marketing plan is the written document which details the marketing methods selected (advertising, price promotion, etc.) and specific marketing actions or marketing activities. It also examines the resources needed (both financial and human) to achieve specified marketing objectives, such as an increase in sales or a successful product launch, over a given period of time.

You can develop a marketing plan using the stages known as AOSTC (Analysis, Objectives, Strategies, Tactics and Control).

1. Analysis

Current market situation - Information on the competitors and the market place. Competitor analysis – The competition on the market place. You will also need to include information on their positioning – how they control the way the customers see the products or services.

Product / service analysis – What you sell or provide, your Unique Selling Point (USP) – that is, what distinguishes your product or service from others on the market. Originally USP stood for Unique Selling Proposition.

Target market – Your customer groups or segments – for example, teenagers or business people.

2. Objectives

Marketing goals – What you want to achieve, in terms of image and sales. What is your mission statement – top management’s vision of why the firm exists, how it is different from other firms, and the place in the market it wants to take.

Set SMART objectives. Specific – Be precise about what you are going to achieve. Measurable – Quantify your objectives.

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Achievable – Are you attempting too much? Realistic – Do you have the resources to make the objective happen (manpower, money, machines, materials, time)?

Timed – When will you achieve the objectives (Within a month? By February 2021?)

3. Strategies

The approach to meeting the objectives

Which market segment are you going to occupy?. How will you target the segment?

How should you position within the segment?

4. Tactics

Convert your strategy into the marketing mix, including the 4Ps. Product Price Place Promotion

5. Control

Tracking – How will the success of the marketing plan be measured? How will each marketing activity be assessed?

A formal marketing plan can help managers identify and analyze future opportunities to meet customer needs by defining attractive market segments of customers who have certain characteristics in common.

Comprehension / interpretation

Read the statement and say whether they are true or false.

1.Current market situation refers to the information on your company’s position on the market.

2.Product or service analysis includes information on what you sell or provide.

3.Target market is the market segment you focus on.

4.Marketing objectives can be an increase in sales, or a successful product launch, over a certain period of time.

5.SMART is an acronym which represents the necessary characteristics of marketing objectives.

6.A strategy is a plan or a series of plans aimed at achieving the company’s objectives. It’s a specific approach to meeting the objectives.

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7.Tactic is a method which you use to achieve your objectives, e.g. aggressive advertising tactics may mislead consumers.

8.Tracking means the assessment of the competitor’s marketing activity.

Language focus

1. Translate the following words and word partnerships into English. Look at the text to help you.

Подробно излагать маркетинговые способы и маркетинговые акции;

2.Complete the following definitions with plan or strategy.

1.marketing ____ - how an organization intends to achieve its marketing objectives

2.marketing ____ - a written document that details the actions an organization must take in order to achieve its marketing objectives.

3.Make word combinations with market and marketing using the words

below. Then match the word combinations with the definitions below.

marketing ______

______

______

______

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1)groups of consumers with similar needs or purchasing desires;

2)the consumers, clients or customers you want to attract;

3)a definition of the company, the product / service and the competition;

4)detailed information about how to fulfil the marketing strategy;

5)the techniques you can use to communicate with your consumers;

6)the combination of different elements used to market a product or service.

4.M@T Cables wants to enter a new market. Read the following letter to a possible export partner. Fill in the missing words in the sentences. Choose from the following:

Dear Mr Collings,

Thank you for your letter about your plans to market out products in the

South Pacific Region. As you know, we want to sell our (1)….. in every

(2) …… market in the world, so naturally we are interested in your region. Obviously, we have to do some market (3) ….. . For now, I have four questions:

1.How is the present supply and (4) ….. for our kind of products?

2.What kind of marketing (5) ….. do you think we should develop in our marketing (6) ….. ?

3.What are the market (7) ….. in this sector?

4.Can you recommend someone to carry out a detailed market (8) ….. for

us?

I look forward to hearing from you as soon as possible. Yours sincerely,

Paul San

5.Look at the internal memo below and fill in the missing words. Choose from the following:

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memo from: AB to: DG

Re. Marketing policy

Success depends on good marketing. We need a clear strategy to develop understanding of:

1.our present position

2.marketing strategy

We must build a new marketing (1) ……. . This should be based on a clear SWOT analysis, i.e. understanding of the present market position in terms of:

(2)…………..

(3)…………..

(4)…………..

(5)…………..

We must develop a seven point marketing (6) ………. , describing:

(7)………….

(8)………….

(9)………….

(10)………..

(11)………..

People Phasing

I suggest you send a report to John as soon as possible.

Call me to discuss.

Andrew

6. The word market is often used in the following combinations:

Fill the gaps in the sentences using the appropriate word partnership from above.

1.Regional airlines are important customers for the Embraer ERJ-145. They are a big ….. for Embraer.

2.Tesko is the biggest supermarket chain in the UK and is therefore the ….. .

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3.In the US, Japanese carmakers have been gaining ….. – they are selling a bigger percentage of cars sold, and US manufacturers are selling a smaller percentage.

4.There has been huge ….. in the sales of digital music. Apple in particular see a massive increase in the number of people buying songs from iTunes.

5.Microsoft divides the software market into large companies, small companies, home office users, and leisure users.

This is how it does its ..... .

7.Choose the word or phrase with the same meaning as the definition. Translate into Russian.

1.Providing money to cultural or sporting activities in exchange for advertising rights.

2.A business which specializes in giving advice and support to companies about marketing and markets.

a) marketing consultancy b) counseling service c) company analysts

3.An economy which allows open and reasonably free exchange between private companies.

рынка; доставка товара от производителя к потребителю; продажа товаров в другие страны.

Unit 4 Marketing strategies

Reading 1

Read the text and answer the questions given below.

In successful firms, large and small, business planning is an ongoing process of making decisions that guide the firm both in the short term and long term periods of time. Marketing planning is based on an analysis of the company’s customers, competitors and significant factors in the external environment and of its internal performance.

Organizations succeed by creating and keeping customers. Marketing managers regularly have to assess which customers they are trying to reach and how they can design products and services that provide better value and benefits. They have to create a competitive advantage – that is, the ability of a firm to outperform the competition, providing customers with a benefit the competition cannot. This process is known as marketing planning.

How can a competitive advantage be created?

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The first step is to identify a firm’s distinctive competency, a firm’s capability that is superior to that of its competition. For example, Coca-Cola’s success in global markets - Coke has 50 percent of the world’s soft-drink business - is related to its distinctive competencies in distribution and marketing communications. Coke’s distribution system got a jump on the competition during World War II, when the firm decreed that every soldier would have access to a five-cent Coke. The US government liked the morale-building effort, and assisted Coke in building 64 overseas bottling plants.

Coke’s skillful marketing communications program (television commercials) is another distinctive competency that has contributed to its global success.

The second step in creating a competitive advantage is to turn a distinctive competency into a differential benefit. Differential benefits set products apart from competitors’ products by providing something unique that customers want. Differential benefits provide reasons for customers to pay a premium for a firm’s products and exhibit a strong brand preference.

A company’s marketing strategy or a planned series of actions describes how the company will position itself and the products it sells or the services it provides in the competitive marketplace.

Answer the following questions.

1.What factors is marketing planning based on?

2.What is the key to a company’s success? How can a company keep its customers?

3.What is a competitive advantage? Why is it so important for a company to have a competitive advantage on the market?

4.What is the competitive advantage of Coca-Cola Company?

5.What is a distinctive competency?

6.What is a differential benefit?

7.What is a company’s marketing strategy?

Reading 2

You will read the text about different marketing strategies. Read it through and speak on different approaches to marketing strategies used by different companies because of their different position on the market.

A company’s marketing strategies – sets of principles designed to achieve long-term objectives – obviously depend on its size and position in the market. Other

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determining factors are the extent of the company’s resources, the strategies of its competitors, the behavior of the consumers in the target market, the stage in the product life-cycle of the products it markets, and the overall macro-economic environment.

The aim of a market leader is obviously to remain the leader. The best way to achieve this is to increase market share further. If this is not possible, the leader will at least attempt to protect its current market share. A good idea is to try to find ways to increase the total market. This will benefit everyone in the field, but the market leader more than its competitors. A market can be increased by finding new users for a product, by stimulating more usage of a product, or by exploiting new uses, which can sometimes be uncovered by carrying out market research with existing customers.

To protect a market share, a company can innovate in products, customer services, distribution channels, cost reductions, and so on; it can extend and stretch its product lines to leave less room for competitors; and it can confront competitors directly in expensive sales promotion campaigns.

Market challengers can either attempt to attack the leader, or to increase their market share by attacking various market followers. If they choose to attack the leader, market challengers can use most of the strategies also available to market leaders: product innovation, price reductions, cheaper or higher quality versions, improved services, distribution channel innovations, manufacturing cost reduction, intensive advertising, and so on.

Market followers are in a difficult position. They are usually the favorite target of market challengers. They can reduce prices, improve products or services but the market leader and challenger will usually be able to retaliate successfully. A market follower that takes on a larger company or starts a fight with it in a price war is certain to lose, given its lesser resources.

In many markets, market followers fall in the middle of a V-shaped curve relating market share and profitability. Small companies focusing on specialized narrow segments can make big profits. So can the market leader, with a high market share and economies of scale. In between come the less profitable market followers, which are too big to focus on niches, but too small from economies of scale.

One possibility for followers is to imitate the leaders’ products. The innovator bears the cost of developing the new product, distributing it, and making the market aware of its existence. The follower can clone this product depending on patents or improve,

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adapt or differentiate it. Whatever happens, followers have to keep their manufacturing costs low and the quality of their products and services high.

Small companies that do not establish their own niche – a segment of a segmentare in a vulnerable position. If their product does not have a “unique selling proposition”, there is no reason for anyone to buy it. Consequently, a good strategy is to concentrate on a niche (large enough to be profitable and to grow) that doesn’t seem to interest the leader, and which the firm can serve effectively. The niche could be a specialized product, a particular group of end-users, a geographical region, the top end of a market, and so on. Of course unless a nicher gets its own regular customers, it is vulnerable to an attack by the market leader or another larger company. Consequently, multiple niching – developing a position in two or more niches – is a much safer strategy.

Comprehension / interpretation

Read the following statements, agree or disagree with them, prove your point with arguments from the text.

1.If a market leader succeeds in increasing the size of the total market, it benefits the leader most of all.

2.The size of a market can be increased without attracting any new consumers.

3.Market challengers generally attack the leader and market followers.

4.Market challengers cannot use the same strategies as leaders.

5.Market leaders generally win price wars.

6.Market challengers can attack leaders by way of any of the four P’s of the marketing mix.

7.Market followers generally achieve cost reductions through economies of scale.

8.The most profitable companies are logically those with medium or high market share.

9.For a market nicher, product imitation can be as profitable as product

innovation.

10.A market nicher is never safe from an attack by a larger company.

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Language focus

1.Translate the following words and word partnerships into English. Look through the texts 1 – 2 above to help you.

2.Look through the text and match the definitions given below with the words from the text.

3. Replace the words in brackets with an appropriate word or word partnership given below. Change the form of the words if necessary. Translate the sentences.

1.Planning is the _______ (continual) process of making decisions.

2.Strategic planning is the process of ______ (developing and maintaining a strategic fit between) the organization’s goals and capacities and its changing market opportunities.

3._____ (a statement of an organization’s purpose) defines what the organization wants to achieve in the larger environment.

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4.A clear mission statement acts as an ‘invisible hand’ that _____ (supervises) people in the organization so that they can work independently and yet collectively towards overall organization’s goals.

5.A market-oriented mission statement _____ (describes) the business in terms of satisfying the basic customers’ needs.

6.The main goal of all marketing strategies is to create _____ (a special ability or skills to do things better than others).

7.Many companies’ success _____ (is connected with) their distinctive competencies.

8.Distinctive competency _____ (helps companies to succeed) and _____ (be ahead of the competition).

9._____ (special effective product advantages) provide reasons for customers

_____ (to pay more) for firm’s products.

e)to stop selling on the market

f)to start selling or to sell more and more there

5.Translate the following sentences into English.

1.Наша компания занимает ведущее положение на рынке. Другими словами, она господствует на рынке.

2.Чтобы проникнуть на американский рынок, компании пришлось конкурировать с целым рядом других компаний.

3.Когда компания KFC решила выйти на японский рынок, блюда быстрого приготовления ещё не пользовались большой популярностью

вЯпонии.

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4.Государственная авиакомпании уже не является монополистом на отечественном рынке. По меньшей мере, она конкурирует сейчас с 10 новыми частными авиакомпаниями.

5.Наши конкуренты приложили максимум усилий, чтобы вытолкнуть нас с рынка. В 2002 году наша компания покинула рынок.

6.Отличительная выгода нашего товара – это бесплатная и своевременная доставка товара.

7.Умелая программа маркетинговых коммуникаций, эффективная система распределения товара являются отличительной компетенцией нашей компании и содействуют её успеху.

8.Покупатель готов платить больше, если товар обеспечивает ему явную выгоду.

9.Компания только выиграет от увеличения своей доли рынка.

10.Нам необходимо провести новое исследование рынка, чтобы выявить потенциальных пользователей нашей продукции.

11.Мы можем расширить товарный ассортимент, если введём новые товары на рынок.

12.Наша задача – противостоять конкуренции и удерживать низкие затраты на производство.

13.Хотя мы несём большие затраты на разработку новых товаров, наша компания на рынке неуязвима для атаки конкурентов.

Text 3

You will read the text about three strategies allowing a company to gain the competitive advantage

Cost leadership is perhaps the clearest of the three strategies. In it a firm is arranged to become the low-cost producer in its industry. The firm has a broad scope and serves many industry segments, and may even operate in related industries. The firm’s breadth is often important to its cost advantage. The sources of cost advantage are varied and depend on the structure of the industry. They may include the pursuit of economies of scale, new technology, preferential access to raw materials and other factors.

The second strategy is differentiation. In a differentiation strategy, a firm seeks to be unique in its industry along some features that are widely valued by buyers. It

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selects one or more attributes that many buyers in an industry perceive as important, and uniquely positions itself to meet those needs. It is rewarded for its uniqueness with a premium price. The means for differentiation are peculiar to each industry. Differentiation can be based on the product itself, the delivery system by which it is sold, the marketing approach, and a broad range of other factors. In construction equipment, for example, Caterpillar Tractor’s differentiation is based on product durability, spare parts availability, and an excellent dealer network.

The third strategy is focusing. This strategy is quite different from the others because it rests on the choice of a narrow competitive scope within an industry. The focuser selects a segment or a group of segments in the industry and tailors its strategy to serving them to the exclusion of others. By optimizing its strategy for the target segment, the focuser seeks to achieve a competitive advantage in its target segments even though it does not possess a competitive advantage overall.

A firm that engages in each strategy but fails to achieve any success is ‘stuck in the middle’. It possesses no competitive advantage. This strategic position is usually a recipe for below-average performance. A firm that is stuck in the middle will compete at a disadvantage because the cost leader, differentiators, or focusers will be better positioned to compete in any segment.

Comprehension / interpretation

1.Which sentence best expresses the main idea in paragraph 1?

A firm can get a competitive advantage by:

a)selling goods in many markets.

b)making as wide a range of goods as possible.

c)producing goods more cheaply than its rivals.

2.Which sentence best expresses the main idea in paragraph 2?

When a firm uses a differentiation strategy:

a)it tries to persuade consumers that its products have special qualities.

b)it tries to reach a small group of loyal customers.

c)it wants to attract as many buyers as possible.

3.Which of these sentences best expresses the main idea in paragraph 3?

If a firm chooses focus as its strategy, it tries to:

a)do better than its rivals in a small part of the market.

b)prevent other firms from entering the market.

c)do business in a large number of narrow markets.

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4.Is it a good or a bad thing for a firm to be stuck in the middle?

What can a company do to improve its competitive position?

Language focus

1.Translate the following words and word partnerships into English. Look through the texts 3 above to help you.

f)range, extent

g)a characteristic, feature, or quality of a product

h)to conduct, to carry out

i)directly connected with

j)to adapt to

3.Translate the following sentences into English.

1.У нашей компании большой размах деятельности и большие планы на будущее.

2.Компания выпускает продукцию для ряда смежных отраслей.

3.Выпуск данной продукции предпочтителен для нашей компании.

4.Если мы хотим добиться большей эффективности в нашей работе, нам необходимо изменить структуру нашего отдела и построить его работу

сучётом потребностей наших клиентов.

5.Компания проводит политику экономии от масштаба, и в результате является лидером по себестоимости.

6.Прочность наших товаров и доступность запасных частей – вот те характеристики, которые привлекают наших покупателей.

7.Не иметь успеха на рынке, застрять на полпути – значит работать убыточно.

8.Успех компании зависит от нашего умения правильно определить целевой сегмент и сосредоточиться на удовлетворении его нужд.

9.Мы стараемся отличать свои товары от товаров наших конкурентов.

Marketing practice:

A key feature of Red Bull’s success

Read the article about Red Bull Company, do the exercises given below and speak on the company and its marketing strategies.

1. Red Bull is the number 1 energy drink company globally selling four billion cans a year. Red Bull is the only brand sold all over the world. It can be found in 162 countries. The three most important distribution channels are in everyday

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retail business, convenience or impulse buying, and in catering. It is bought by drivers, people who need energy to work or study and by sportspeople.

2.Some observers say that Red Bull’s branding is revolutionary, calling it an ‘anti-brand’ strategy. When the brand was launched in the UK there was already an established drink that was specifically taken as a post-illness beverage. Generations of young Britons had drunk Lucozade as they recovered from colds or flu, so Red Bull had to promote its brand differently.

3.The firm avoided usual methods of marketing, relying more on what is called ‘buzz marketing’ or word-of-mouth. A brand image was created and cultivated which associated the drink with youth culture and extreme and adventurerelated sports, such as motor sports, mountain biking, snowboarding and dance music. Red Bull’s target consumer segment began to adopt nicknames for the product which especially appealed to its young demographic. Red Bull then work to ensure that the brand was visible on the street. Some of the marketing ideas they used were:

using pick-up trucks as mobile displays, painted blue and silver with a giant can of the drink mounted on the top of the vehicle;

giving out cans of the drink to people on the street who had been identified as being in need of energy;

distributing Red Bull in clubs, leaving empty cans on tables in hot spots such as trendy bars, clubs and pubs.

4.The company promoted the Red Bull brand directly to “Generation Y”: people who were believed to be cynical of traditional marketing strategies. Part of this idea involved recruiting ‘student brand managers’ who would be used to promote Red Bull on university campuses. These students would be encouraged to throw parties where cases of Red Bull were distributed. The brand managers would then report back to the company, giving the firm a low-cost form of market research data. The use of this kind of marketing strategy has become known as ‘viral’ marketing. It is as if a company sees no need for traditional information or persuasive communications, in Red Bull’s case it used the youth ‘underground’ to spread the popularity of the drink. The firm preferred to limit the supply and not advertise it, expecting that growing numbers of target consumers would help spread its reputation. Red Bull was a spectacularly successful example of this strategy.

5.By the mid 2000s, the worldwide energy drinks market was worth an estimated $1.6 billion; Red Bull had a large part of the market share. The lure

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of fast growing profits in this market brought many competitors into the functional food sector, where health and energy drinks doubled sales every year.

6.By the end of the 2000s, Red Bull was number 25, globally selling close to four billion cans a year. Market shares had grown in the Far East, Europe and South America and productivity and profit had increased as well. Red Bull entered new markets in Denmark and Norway and the success of Red Bull

Racing in Formula One, the Red Bull Salzburg football team’s victories in the

UEFA Europa League and the launch of a TV broadcaster called Servus TV in Austria, demonstrated the marketing savvy of the company again.

7.Today, however, Red Bull is looking into how it can best build on its incredible sales growth, as it has become a mature brand in a saturated market. Some of the challenges for the company include:

the loss of the original consumer base as ‘Generation Y’ become working adults;

health concerns due to high intake of caffeine;

being over-reliant on a single brand;

the market for energy drinks has attracted some global players such as Coca Cola, Pepsi and Walmart (including its subsidiary Asda) who are trying to gain a competitive advantage over the market leader.

It will be interesting to see what the future brings and if Red Bull discovers new markets, new marketing strategies or both.

Language practice

1. Choose the best answer to complete the sentences.

1. Red Bull’s distribution channels include:

a)restaurants and shops.

b)sports events.

c)schools.

2. When Red Bull launched its energy drink in the UK market:

a)it was the first of its type.

b)there was already a similar drink on the market.

c)it was mostly bought by teenagers.

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3. ‘Buzz marketing’ relies on:

a)interesting adverts.

b)people telling each other about a product.

c)a good brand image.

4. The so-called ‘Generation Y’ describes people who:

a)were born in 1970s.

b)went to university.

c)were skeptical about traditional marketing ideas.

5. With ‘viral’ marketing, companies rely on:

a)consumers to promote their products.

b)sports events to sell their products.

c)in-shop displays in a number of retailer outlets.

6. Today the market for energy drinks has:

a)much room for growth.

b)some room for growth.

c)little room for growth.

2.Find words in the text which mea the opposite of the words below.

1.planned (paragraph 1) _______

2.ordinary (paragraph 2) _______

3.did not attract (paragraph 3) ____

4.hidden, not easily seen (paragraph 3) _____

5.costly (paragraph 4) _____

6.people who represent views which are generally accepted, esp. in art, fashion, literature, etc. (paragraph 4) _____

7.very slight, insignificant (paragraph 4) _____

8.lack of specific knowledge in a business field (paragraph 6) _____

9.domestic (paragraph 7) _____

10.a brand which is not very well known to the consumer (paragraph 7) __

11.a market where there are more consumers than the products they want to buy (paragraph 7) _____

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3. Match these words from the text with their definitions.

4.Use the words in exercises 2 and 3 to complete the text. The first letter of each word is given. You may need to change the word, make words plural or change the tenses.

Red Bull has been used as an s______ example of how to create a successful company based on the product. The ideas originally used to market the energy

drink can truly be called r______. When Red Bull first arrived on the market, there were other b_____ it had to compete with. However, the idea of creating a marketing campaign designed specifically to a_____ to the young generation added to the success. By creating a true ‘buzz’, Red Bull was able to d_____

their sales figures every year. And this in a s_____ where competition was tough. By moving away from traditional p_____ advertising campaigns, Red Bull actually encouraged their customers to become their market researchers and sales people, an excellent idea in an already s_____ market. What the future will bring is always impossible to predict but we can assume that the g_____ success of this brand will continue to reach beyond the borders of Austria where the headquarters are situated.

5. Which of these summaries best describes the information in the text?

1.Red Bull has been successful because the idea of an energy drink was a totally new concept when it was launched.

2.Red Bull’s success is largely due to the fact that the company hired a wellknown advertising agency to create their adverts.

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3.Red Bull’s sales were helped by actively finding customers who provided them with market research and promoted the brand name.

6.Read the text again and speak on the competitive advantage of the company. What is the success of the company based on? How did Red Bull manage to differentiate their product from the similar products of other companies?

Case study Texan Chicken

Read the case and advise the top managers on their future strategy to turn the company round. How should Texan Chicken position itself on the market in the future: as a leader, differentiator or a focuser?

Background Texan Chicken was founded by Eva and Ramon Martinez. They had had no previous experience in the restaurant industry. They opened their first restaurant in West London, and within five years had built up a chain of 40 outlets, using a franchising system.

The reason for their success was the quality of their product. Their delicious fried chicken was based on a recipe that Ramon had discovered when traveling in Texas. It was served with a sauce which varied from mild to very hot, depending on the customer’s taste. All the restaurants offered a take-out service, which was popular with customers. When Texan Chicken went public the share price rose by 12 % within a week. There seemed to be no limit to Texan Chicken profits and expansion.

Present situation Unfortunately the company’s share price has fallen recently by over 80 %. There has also been strong pressure on Eva and Ramon Martinez to resign as co-chairmen of the business. At present, they own 40 % of the shares. The other major shareholder is a South African businessman, Martin Webb, who owns 12%. Eva and Ramon Martinez have called in a team of management consultants to advise them on their future strategy.

Consumer survey (summary)

Customers

Age: 18-30 58 %

30-40 32 %

40+ 10 %

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How often customers visit the restaurants

Food products bought most often

1.Quarter chicken, salad and rice

2.Chicken breast burger

Task

You are members of management consultant team called in by Eva and Ramon Martinez to advise them on their future strategy. Discuss the options below. Consider any other ideas for improving profitability. Work out a plan of actions which will turn the company round.

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Options

The following options will be discussed by the management consultants at their next meeting.

1.Persuade Eva and Ramon Martinez to resign. Appoint a new Chief Executive with extensive experience of franchising in the food industry.

2.Seek opportunities to merge with a large fast food company which could offer management expertise and financial resources.

3.Improve profits by extending in Europe through joint ventures. A German supermarket chain has already shown interest in such a venture.

4.Make major changes in the business, e.g.:

a)Have more company-owned outlets. This would give greater control over the restaurants.

b)Offer special promotions (e.g. huge discounts on certain meals).

c)Launch a major advertising campaign.

Unit 5 SWOT analysis

Before entering the marketplace it is essential to carry out a SWOT analysis. Read the text about a SWOT analysis and decide if the sentences below are true or false.

Before entering the marketplace it is essential to carry out a SWOT analysis. SWOT analysis is an assessment of an organization’s internal and external environment. In other words, SWOT analysis identifies the strengths and weaknesses of a product, service or company, and the opportunities and threats which the company faces.

Internal environment means all controllable elements inside an organization that influence how well the organization operates. Under internal strengths and weaknesses we should understand the firm’s human and intellectual capital. What skills do the employees have? What kind of training have they had? Are they loyal to the firm? Do they feel a sense of ownership? Has the firm been able to attract top researchers and good decision makers?

Intrernal strengths may also lie in the firm’s technologies. What is the firm able to do well that other firms would find difficult to duplicate? What patents does the firm hold?

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A firm’s physical facilities such as buildings, land, furniture, equipment, can be an important strength or weakness as well as financial stability, relationships with suppliers, the firm’s corporate reputation.

The external environment consists of those uncontrollable elements outside of the organization that may affect it either positively or negatively. The external environment includes everything from customers to suppliers to competitors to government regulation to the economy.

A SWOT analysis is often used as a tool in strategic planning. It can also facilitate the understanding of a company’s position on the market and decision-making for all sorts of situations. Many academics and consultants believe a SWOT analysis works best when it is a part of an overall strategy. This strategy may be as simple as: objective-SWOT-evaluation-action.

If an organization undertakes strategic planning it will at some point assess its own strengths and weaknesses. Effectively combining its strengths and weaknesses with the opportunities and threats in the organization’s external environment, the firm can determine its current position on the market.

\ The SWOT analysis may look simple but it takes time, significant resources, team efforts to be both effective and meaningful. It cannot be done effectively by only one person. A SWOT analysis generates information that is helpful in matching an organization’s goals, programs and capacities to the social environment in which it operates.

It is important to note that the strengths and weaknesses are skills or assets which the company has (or doesn’t have) compared to its competitors. Opportunities and threats are external factors which are not created by the organization; they emerge as a result of the future gaps in the market.

SWOT analysis helps a company to make use of strengths and capitalize on them, deal with weaknesses and minimize them, anticipate threats that may affect the organization negatively in the future, and spot business opportunities and exploit them fully.

1.A SWOT analysis can help companies decide what they should do.

2.The SWOT analysis is about the situation the organization is in at the moment.

3.A SWOT analysis should be conducted by an individual person.

4.Strengths and weaknesses come from outside the organization.

5.Opportunities and threats come from inside the organization.