УДК 811.111

ББК 81.2 Англ.

А - 197

Рецензент - Старший преподаватель кафедры английского языка МБ

Рагель С.Г.

Аверьянова С.В., Семенова Е.Ю.

А - 197 JUST BUSINESS Part II: Учебное пособие для слушателей ВАВТ/ С.В.

Аверьянова, Е.Ю. Семенова; Всероссийская академия внешней торговли Минэкономразвития России. - М.: ВАВТ, 2014. - 93 c.

Данное пособие составлено на основе учебника Powel, M., New Business

Matters, Coursebook, Thomson, 2004 и представляет собой сборник текстов и упражнений, направленных на расширение запаса деловой лексики, развитие навыков чтения, аудирования, письма и говорения. Пособие рекомендовано для использования слушателями магистратуры вечернего отделения (upper-intermediate level) международнокоммерческого факультета.

УДК 811.111

ББК 81.2 Англ.

Just Business Unit 5 Brand Management

Discuss: Do you know any products with strong brand images? What are the advantages and disadvantages of brand name products, own brands and generics? Which do you prefer to buy?

Business Brief

Read the texts about products and brands and do the exercises below.

Products and brands

Word combinations with 'product'

Goods can refer to the raw materials, materials and components used to make products, or the products that are made.

Here are some examples of these different types of goods: consumer goods that last a long time, such as cars and washing machines, are consumer durables. Consumer goods such as food products that sell quickly are fast-moving consumer goods, or FMCG.

Exercise 1 Which applies to each of these products?

Exercise 2 Match the sentence beginnings (1-7) with the correct endings (a-g).

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Just Business Unit 5 Brand Management

Brands and branding

The American Marketing Association defines a brand as a "name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers." A brand can take many forms, including a name, sign, symbol, colour combination or slogan. This may be the name of the company itself: the make of the product. For products like cars, you refer to the make and model, the particular type of car, for example the Ford (make) Ka (model).

Branding is creating brands and keeping them in customers’ minds through advertising, packaging, etc. The word branding began simply as a way to tell one person's cattle from another’s by means of a hot iron stamp. The word brand has continued to evolve to encompass identity — it affects the personality of a product, company or service. It is defined by a perception, good or bad, that your customers or prospects have about you. A brand should have a clear brand identity so that people think of it in a particular way in relation to other brands. Successful brands are companies’ most valuable assets. They add value to products. They guarantee a certain quality level. And customers believe they get extra value for money. It’s a synergy effect whereby one plus one equals three. Customers who always buy the same brand are brand loyal.

Brand awareness or brand recognition is how much people recognize a brand. The ideas people have about a brand is its brand image. The brand with the most sales in a particular market is a brand leader. Global brands have the ability to cross both geographical and cultural boundaries, building international reputations of quality.

Creating brands and brand awareness is the job of the brand manager. Brand management is the application of marketing techniques to a specific product, product line, or brand. Brand managers plan, develop and direct the marketing efforts for particular brands or products. It is not uncommon for brand managers to be responsible for coordinating activities of specialists in production, sales, advertising, promotion, research and development, marketing research, purchasing, distribution, package development, and finance.

Once the brand name has been established, the makers sometimes engage in brand extension or brand stretching, which involves using the brand name on a range of products. In the case of luxury brands, companies have to be careful to avoid overexposure, which could damage the exclusive aspect of the brand image.

A product with the retailer’s own name on it is an own-brand product (BrE) or own-label product (AmE).Products that are not branded, those that do not have a brand name, are generic products or generics.

Exercise 1 Complete this marketer’s description of his work using expressions from the text above.

My name’s Tomas. I’m Portuguese, and I’ve been ………... ……….. for Woof dog food for the whole of Portugal and Spain since I left business school last summer.

The Woof ………… is owned by a big international group. The market for pet food in Portugal and Spain is growing very fast, as more and more people own dogs and cats, and we’re trying to increase ……….. ……….. of Woof through TV advertisements and boardings in the street. Research shows that people have very positive ideas about it: it has a very positive

………. ………… . But the supermarkets have their ……… ………. Dog food, usually sold cheaper than our product, which is a problem. There are even ……… ………. sold just under the name “dog food’. We have to persuade people that it’s worth paying a bit more for a ………..

product like Woof, which is far better, of course.

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Just Business Unit 5 Brand Management

Exercise 2 Match these word partnerships to their meanings.

Discuss: What do the following terms mean to you? Discuss them with your colleagues.

•brand loyalty

•brand-awareness

•brandstretching

•own label products

•me-tooism

•subliminal advertising

•lookalike products

•market saturation

•household name

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Just Business Unit 5 Brand Management

Listening

Listen to the text about brand wars and answer the questions below.

1What do market leaders have to do to keep their dominating position?

2What happened when Philip Morris reduced their prices?

3What has fair market competition escalated into?

Own-Label Products

4Why are the corporate heavyweights losing sales?

5What percentage of total sales do own-labels account for?

Lookalike Coke

6What do big brands do to fight own-label products? Give examples.

7How does Sainsbury’s cola compare with Coke?

Big Brands – Big Business

8What mark-up is Omega still able to put on their products? Why?

Brandstretching

9What else do big businesses do to generate additional revenue? What examples are given?

Buyer Beware

10What is considered to be the main threat to big brands?

11How can the problem be solved?

12What percentage of clothes and footwear sold in Europe are fakes?

What losses do big companies suffer due to it?

13What should consumers beware of?

Market Saturation

14What consequences can market saturation lead to?

15How many kinds of toothbrushes and shampoo do some stores stock? How long will it take to try them all?

16How many new brands survive?

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Just Business Unit 5 Brand Management

Reading and language

Read the text Brand Wars and do the exercises below.

BRAND WARS

Coke versus Pepsi; Nike versus Reebok; Nintendo versus Sega – the battle is on amongst the world’s top brands. Aggressive comparative advertising has now reached fever pitch; extra millions are pouring into R&D, and the market leaders are under constant pressure to slash their prices in a cutthroat struggle for market domination. When Philip Morris knocked 40c off a packet of Marlboro, $47-and-a-half billion was instantly wiped off the market value of America's top twenty cigarette manufacturers. Lesser brands went to the wall. And that's just one example of how fair competition within a free market has rapidly escalated into all-out brand war.

Own-label Products

Yet, in spite of the efforts of the corporate heavyweights to win market share, when it comes to fast-moving consumer goods, more and more consumers are switching to the supermarkets' own-label products. And brand loyalty is fast becoming a thing of the past. The once unchallengeable Nescafe and Kellogg's are actually losing sales, as their higher price is no longer automatically associated with higher quality. And in many supermarkets across Europe and the States own-labels now account for over 55% of total sales. Their turnover has never been higher.

Lookalike Coke

Of course, the big brands are not giving in without a fight. When British supermarket chain, Sainsbury's, led the attack on Coke by launching its own similarly packaged product, it managed to secure 15% of the total UK cola market in just two months. But Coca-Cola was quick to respond. Sainsbury's was told to change its packaging fast or Coke would cut its prices to rival supermarkets and leave Sainsbury's hopelessly overpriced. Some people say the Sainsbury's cola tastes as good as Coke. But they're the ones who underestimate the power of the brand.

Big Brands - Big Business

For brand names are still the reason Omega can put a 300% mark-up on their watches, the reason Nestle spent a fortune buying Perrier, the reason investors are prepared to pay up to twelve times the book value for a company's stock. Big brands remain big business in the City.

Brandstretching

Brandstretching is another way in which the household names are fighting back. By putting their familiar trademark on attractive and fashionable new products, companies can both generate additional revenue and increase brand-awareness, hence Pepsi Maxwear, Vergin Cola, Camel Adventure Gear clothing and even jewellery by Cadbury! The high-life image suits companies like Philip Morris, for whom, as the restrictions on tobacco ads get tougher, brandstretching is the perfect form of subliminal advertising.

Buyer Beware

So much for the high-street brands. Further upmarket, the luxury branded goods manufacturers are facing an even greater enemy of their own, namely, the pirate brands. And as the trade in lookalike products increases, companies like Ray-Ban and Reebok, Yves Saint Laurent and Armani are calling for a crackdown on the pirates. In Europe over ten percent of clothes and footwear sold are said to be fakes, costing the firms who make the real thing nearly $7 billion a year. For a fraction of the recommended retail price you can pick up fake Gucci, fake Lacoste, fake Lego, fake Disney, fake Nintendo, fake anything. But buyer beware! Your case of Moet et Chandon will probably turn out to be cider and your bottle of Calvin Klein more like industrial cleaner than perfume.

Market Saturation

But, brand wars aside, the single biggest threat to the market remains saturation. For it seems there are just too many products on the shelves. In the States they call this 'product clutter' and it is currently the cause of a strong anti-consumerism movement. In fact, product proliferation and widespread me-tooism mean that some Boots stores actually stock 75 different kinds of toothbrush and 240 types of shampoo. It would take you over 20 years to try them all, assuming you even wanted to! And that's just got to be crazy when you think that 80 to 90% of new brands fail within their first six months.

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Just Business Unit 5 Brand Management

Exercise 1 Without referring back to the article, can you remember in what context the following companies were mentioned?

1.Philip Morris / Marlboro

2.Nestle

3.Coca-Cola

4.Omega

5.Cadbury

6.Moet et Chandon

7.Calvin Klein

8.Boots

Vocabulary

Exercise 2 Look back at the article Brand Wars and find the expressions which mean:

1.reach a ridiculous level (par. 1)

2.cut drastically (par. 1)

3.fiercely competitive (par. 1)

4.take 40c off (par. 1)

5.remove or make something disappear (par.1)

6.smaller, less important (par. 1)

7.go bankrupt (par. 1)

8.become much worse or more serious (par. 1)

9.involving all the forces that are available (par. 1)

10.major companies (par. 2)

11.consumer goods that sell very quickly (par. 2)

12.impossible to defeat (par. 2)

13.total sales before costs are deducted (par. 2)

14.stop competing and accept that you can’t win (par. 3)

15.get or achieve something important (par. 3)

16.react quickly (par. 3)

17.worth less than the price that is being charged (par.3)

18.think that something is less important than it really is (par.3)

19.profit margin (par. 4)

20.pay a lot of money for (par. 4)

21.official value of an asset (par. 4)

22.a name of a product/company that is well known (par. 5)

23.receive extra income (par. 5)

24.intended for people who have a lot of money (par. 6)

25.severe measures against law-breakers (par. 6)

26.too many products in a place (par. 7)

27.a sudden increase in number or amount (par.7)

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Just Business Unit 5 Brand Management

Exercise 3 Match each of the words in the first column with a word from the second column to make twelve word partnerships from the article. There are some alternative partnerships, but there is only one way to match all twelve.

Exercise 4 Find five nouns in the article Brand Wars which form strong word partnerships with the word market.

1

2

MARKET 3 4

5

Find five nouns in the article Brand Wars which form strong word partnerships with the word brand.

1

2

BRAND 3 4

5

Which 8-letter word can come before all the following words?

goods research protection profile advertising durables non-durables

Now match these word partnerships with the following definitions:

1.commercials aimed at the end-user

2.goods used shortly after purchase such as food, newspapers, etc.

3.products purchased by a member of the public

4.goods which last a long time such as cars, televisions, etc.

5.laws to defend buyers against unfair trading

6.market study of buyer behaviour patterns

7.description of a typical buyer according to age, sex, social status, etc.

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Just Business Unit 5 Brand Management

Exercise 5 Match each word on the left with a word on the right to form ten common marketing expressions.

Use the expressions from the table above to complete the sentences that follow.

1.___________________ are important brand-building activities.

2.Marketing tactics such as ___________________ aim to boost sales quickly.

3.Because of their association with quality and status ___________________ often cost a bit more.

4.During a sale in a department store, many goods are on ___________________.

5 The danger with brand-stretching is the damage that can be done to the

___________________ if it is not successful.

6.A good ___________________ will guard the long-term interests of the brand it is promoting.

7.Launching a new ___________________ onto the market is a costly and risky business.

8.Customers who always buy the same brand of goods are showing _________________.

9.___________________ is a measure of how well-known a product is in the marketplace.

10.In some sectors, the competition between companies for __________________ is fierce.

Exercise 6 Complete each sentence with the correct form of the underlined word. In some cases, you will need to use the negative form.

Just Business Unit 5 Brand Management

Exercise 7 A lot of the language of business and marketing is full of metaphors.

A.Group the following business expressions according to where you think the words in bold originally come from. Choose from the following: war, sport & games, water, health, flight.

B. Use the above expressions to complete the following sentences.

1.It was a ________________ - neither side in the negotiation was prepared to move an inch!

2.________________ in the 1990s when profits increased tenfold.

3.The two companies formed a ________________ to fight off the competition from Korea.

4.We're ________________, Ladies and Gentlemen - the company itself is at risk.

5.In a _______________ it's often the small shareholders who decide who wins.

6.Never ________________ until you've given them the chance to explain what it is.

7.We can't continue to ________________ until we start seeing some sign that it's working.

8.________________ to an all-time high and look set to stay high for the rest of the year.

9.I'm afraid ________________ - there's simply no more demand for this kind of service.

10.Perhaps we should ________________ and meet back here in, say, ten minutes?

11.In our current financial position we would ________________ for a predator company.

12.Poor turnover is partly due to the fact that _______________ from the effects of the recession.

13.Liberalising the markets in Ecuador just led to ________________ out of the country.

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Just Business Unit 5 Brand Management

14.In giving this new product the go-ahead, believe me, you're really ________________ - it's sure to be a huge success.

15.________________, but, when you think that we used to sell 1,000 units a day, frankly it's pathetic.

16.This big order from the Middle East is just what this company needed to

________________ — finally things are looking up.

17.________________ has made it impossible for us to rely on brand loyalty from our customers - there's simply too much choice.

18.In spite of media reports to the contrary ________________ and ready to break into new markets with this product.

19.We clearly need to________________ if we are to remain the market leader.

20.Inflation is running at 66%, unemployment is up nearly 30%, our trade deficit is enormous and, to be honest, ________________.

Exercise 8 Study these examples. Then choose the words from the box to complete the sentences that follow. Use your dictionary and grammar book to help you which words are both appropriate and grammatically correct in each case.

Despite the evidence of the value of brands, creating and sustaining that capital are neglected by companies.

Some consumers switch temporarily to the promoted brand, but once the promotion ends, all of them go back to the one they normally prefer.

Since price is often a signal to consumers of a product quality, a brand that is always on special offer loses its appeal.

1.Brand-stretching can be very risky ............................. , it can also be very lucrative.

2.The value of price promotions is questionable, ............................ most consumers switch back to their usual brand when the promotion ends.

3.Companies have to keep their shareholders happy. ............................., brand managers are under pressure to find ways of boosting sales.

4. ........................... a brand may sell well in one country, it may not sell at all in another.

5.Price is a signal of quality, ............................ consumers will often pay more for premium brands.

6.In 1991, advertising accounted for around a third of all marketing outlay,

............................, in 1980, the picture was very different.

7. ........................... their disappearance from the market, General Electric's food blenders continued to rank second with consumers 20 years later!

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Just Business Unit 5 Brand Management

Reading and Discussing: Read the text below and answer the questions after it.

Brussels throws weight behind counterfeiting drive

Under the slogan 'Fakes cost more', the European Union is to throw its weight behind a global anti-counterfeiting campaign. Jose Manuel Barroso, the European Commission president, is to open a counterfeiting summit attended by businesses, charities and campaign groups. He aims to highlight that the practice damages not only big European brands but also consumers and the sweatshop workers involved.

Frederick Mostert, founder of the Authentics Foundation, which organised the conference, said the perception of counterfeiting as a victimless crime had to change. He said: 'It is about the real cost to society: it is supporting child labour, funding organised crime and terrorism. Many of the products are dangerous. Planes have crashed because of fake parts.' Few people had grasped how counterfeiting had moved from small-scale family operations to worldwide smuggling rings, Mr Mostert said. He calculated that the business was worth $500bn (€324 bn, £248 bn) annually. 'Anything can be copied, from a Ferrari to toothpaste. The World Health Organisation says 10 per cent of medicines in the world are fakes. That is scary.'

The Commission has proposed EU-wide minimum criminal sanctions for counterfeiters, including jail terms, for repeat offenders.

From the Financial Times

Do you think counterfeiting is a problem? Why? Why not? The slogan for the anticounterfeiting campaign is 'Fakes cost more'. How can this be? Who do you think is affected by counterfeiting?

Discuss: For many companies successful marketing begins with the successful sales letter.

What do you generally do with the sales letters that arrive on your desk? Do you ever read them or do they tend to be filed in the wastepaper basket? Why? Explain your answer. Give your ideas on how to create a successful sales letter.

Listening

Listen to a consultant giving tips on how to write the perfect sales letter and answer the questions below.

1What happens to the majority of sales letters and why?

2Why is mass mailing still used?

3What is a reader-friendly letter like?

4What should you bear in mind when you write to Managing Directors?

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Just Business Unit 5 Brand Management

5How different should your letters be when you write to junior, senior and middle managers? Why?

6What should you do if you have several proposals to make to a customer? Why?

7How can you make your letter compulsive reading?

Reading and language

Exercise 1 Read the text below. Put a suitable preposition for each blank.

Do you ever stop to think about what happens (1) ….. your sales letters after they leave your desk? You may spend hours drafting and redrafting them. But do you give a moment's thought to how your reader will react (2) ….. them when they arrive? If not, don't write another word (3) ….. you do.

(4) ….. you write your next letter, put yourself in the shoes of the customer. Make it readerfriendly. The majority of sales letters get filed, lost or binned. The reader-friendly letter stands a better chance.

Rule number one: never insult your reader (5) ….. what is called a mass-mailed letter. True, mass mailing is the quickest way of reaching hundreds of potential customers. It's also the safest way of ensuring that your letter ends (6) ….. in the bin. A short personalised letter, which gets (7) ….. the point and clearly demonstrates your knowledge of the customer's needs, will invariably be better received.

(8) ….. a general rule, the more important the person, the shorter your letter should be. Managing Directors are deluged (9) ….. mail. They rarely have time to do more than glance (10) …… it and are unlikely to respond (11) …… your letter themselves. So (12) …… writing to MDs be brief. Junior managers, (13) ….. the other hand, are generally looking (14) ….. ideas they can pinch and present to the boss as their own. Send them long and informative letters.

According (15) ….. Mark McCormack, author of What They Don’t Teach You (16) … Harvard Business School, different levels of management are responsive (17) …… different sales approaches. Senior management is usually looking for strategic solutions (18) ….. long-term problems which fit (19) ….. with their corporate goals. Middle managers want tactical answers to departmental problems which will make their lives simpler and which they can

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