Problem-solving

You are an independent insurance agent and your business has not been doing well recently. You are called to investigate the damage after a factory fire and you are not convinced that the fire was accidental. The factory owner has been talking to you about recommending a friend to take out a lucrative new policy through you. What would you say? What would be possible consequences both of speaking and keeping quiet?

Answer the questions on the topic:

1. Why do businessmen insure their goods?

2. Do you know how the insurance business started?

3. What types of insurance contracts do you know? When and why are they used?

4. What should be done to insure goods?

5. What should be done to be compensated without delay?

Unit 7

Marketing

PART 1

DIALOGUE 1

Mike and Hazel Connors manage a home and garden equipment company. For many years, one of their best customers has been a Swedish buyer, Inge Svenson. She runs a buying office located in London. The office purchases goods for many of the major Scandinavian stores.

INGE Your company's done well in Sweden this year. You must be pleased with the way things are going there.

MIKE We're fairly satisfied on the whole. Our volume of sales has been quite high — thanks to you, Inge.

INGE We've bought a lot from you, it's true. But let's face it, you've got the edge over your competitors. Your garden tools are the best on the market.

HAZEL Thanks, that's a compliment. Mike and I believe quality's important. If you've got a good product, the customer won't worry so much about the price.

INGE Uh-huh, your policy's paid off in our market. You're doing very nicely in Sweden. But you could be doing even better. If you used a different method of selling . . .

MIKE What's the point of changing anything? We're doing all right at the moment.

HAZEL Yes, our sales operation is working like clockwork.

INGE I know what you mean, Hazel. You've got a simple system for reaching the market. Basically, you use two methods. Either you sell to my office in London, or directly to certain stores in Stockholm and Malmo, right?

MIKE Exactly. What's wrong with that?

INGE Look, I’ d like to say something to you — off the record — if you don't mind.

MIKE I thought you were leading up to something. OK, whatever you say, it's between these four walls.

INGE I just want to say, it's time you changed your sales approach. You could be doing three times as much business as you are now.

HAZEL Oh? In what way should we change?

INGE Well, using buying offices and direct selling are OK, I suppose, but you're not reaching all your potential cus­tomers that way. You're only covering two areas in Sweden, Stockholm and Malmo.

HAZEL Are you suggesting we should set up a marketing operation in Sweden? Open up a sales office or something. I 'm sorry, we don't have the capital . . .

INGE Hold on, now! Of course I’m not suggesting that. It would be far too expensive.

HAZEL So?

INGE I'm suggesting you develop some kind of sales network there, or use an agent to distribute your products.

MIKE An agent, or dealer network, you mean?

INGE Let me tell you what I have in mind. Then, I'd like to make a proposal to you.

MIKE Ah! I knew you had something up your sleeve, Inge. Now, we'll find out what it is!