Insights into Marketing. Введение в маркетинг

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
И.И. Воронцова, Л.И. Газарян, В.И. Уваров
INSIGHTS INTO MARKETING
ВВЕДЕНИЕ В МАРКЕТИНГ
Учебное пособие
2-е издание, стереотипное
Москва
Издательство «ФЛИНТА»
2012
УДК 339.1(075.8)
ББК 65.2902я73
В75
Воронцова И.И.
В75 Insights into Marketing. Введение в маркетинг [Электронный
ресурс]: учеб. пособие / И.И. Воронцова, Л.И.Газарян, В.И. Ува-
ров. – 2-е изд., стер. — М. : ФЛИНТА, 2012. — 208 с.
ISBN 9785976507487
Пособие соответствует Государственному образовательному
стандарту высшего профессионального образования для специальности
080111 «Маркетинг» и содержит детализированный учебный курс,
направленный на выработку навыков по различным видам работы с
профессиональной информацией на английском языке. Оригинальная
система упражнений к аутентичным текстам, предусматривающая акцент
на внеаудиторной работе студентов, активизирует работу смыслового
компонента при аналитическом чтении, помогая сформировать
собственную позицию в реальном деловом мире и проявить творческое
мышление.
Для студентов экономических, управленческих и социологических
специальностей вузов.
УДК 339.1(075.8)
ББК 65.290я73
© И.И. Воронцова, Л.И.Газарян,

ISBN 9785976507487 В.И. Уваров, 2012
© Издательство «Флинта», 2012
Contents
Предисловие ........................................................................................................ 4
Unit 1. About Marketing in General .............................................................. 7
Unit 2. Market Research ..................................................................................18
Unit 3. Market Segmentation .........................................................................27
Unit 4. Business Strategy ................................................................................34
Unit 5. Business Planning ................................................................................42
Unit 6. Product ...................................................................................................52
Unit 7. Pricing ....................................................................................................60
Unit 8. Distribution ...........................................................................................68
Unit 9. Sales Promotion ...................................................................................77
Unit 10. Advertising ..........................................................................................86
Unit 11. Trademark, Branding and Private Labeling ...............................96
Unit 12. Customer Service and Retention ............................................... 103
Unit 13. Oral Communication ..................................................................... 111
Unit14. Purchasing ......................................................................................... 118
Unit 15. Packaging ......................................................................................... 125
Unit 16. Merchandising of Intellectual Property ................................... 134
Unit17. Free Market ...................................................................................... 142
Unit18. Criticism of Marketing .................................................................. 150
Unit 19. Internet Marketing ........................................................................ 157
Unit 20. International Marketing ............................................................... 164
Appendices
• Word List ............................................................................................. 173
• List of Abbreviations in Marketing ............................................... 180
• Currencies of the World ................................................................... 187
• Job Interview Questions .................................................................. 190
• Keys ........................................................................................................ 201
• Bibliography ........................................................................................ 207
Предисловие
Учебное пособие “Insights into Marketing” предназначено студен-

там и аспирантам, изучающим экономику, менеджмент, социологию,
маркетинг, а также может быть адресовано широкой профессиональ-
ной аудитории лиц, занимающихся маркетингом.
Создание пособия вызвано необходимостью подготовить студен-
тов к дальнейшей самостоятельной работе с англоязычными текстами
по маркетингу — одной из основополагающих учебных дисциплин
для профессиональных руководителей — привить им навыки анализа
аутентичных материалов, обучить речевому общению на профессио-
нальные темы. Помимо этого, пособие ставит своей целью система-
тическое наращивание активного словаря и расширение языкового
кругозора студентов.
Структура и интерфейс пособия определены этими целями.
Поощряется тактика активного обучения со стороны студентов,
построенного на принципах сознательного партнерства и взаимо-
действия с преподавателем, творческой активности. Авторы видят
свою задачу в активизации внеаудиторной работы студентов как
части этого процесса.
Содержательная сторона отвечает задачам введения и отработки
профессионального языкового материала по темам, определенным
учебной программой и Государственным образовательным стандар-
том высшего профессионального образования для указанных выше
специальностей. Таким образом, происходит реализация междисци-
плинарных связей, представляющая собой двусторонний процесс. С
одной стороны, студенты получают возможность использовать фоно-
вые знания для развития различных видов речевой деятельности на
английском языке, им предлагается привлекать собственный опыт
и общую эрудицию. С другой стороны, культурологические знания,
полученные на занятиях по английскому языку, могут быть исполь-
зованы при изучении специальных дисциплин и прочих предметов
гуманитарного цикла.
4
В пособии используются аутентичные тексты разнообразных

функциональных стилей и жанров из прессы и публикаций — таким
образом отражается реальный профессиональный мир и предлагается
широкая палитра взглядов и мнений. Текстовой материал содержит
в равной степени ценную информацию лингвистического, страно-
ведческого и профессионального характера, что готовит студентов
к ситуациям реальной жизни.
В пособие вошли 20 взаимосвязанных учебных блоков, или
модулей, построенных по единой схеме. Каждый модуль включает
следующие разделы:
1. Leadin. Введение в тематику модуля. Презентационный ма-

териал в форме, позволяющей активизировать речевую деятельность
студентов в опоре на уже имеющиеся у них знания.
2. Key Vocabulary. Представление и отработка ключевого сло-
варя по теме.
3. Reading. Основной текст для аналитического чтения и упраж-
нения, позволяющие максимально эффективно организовать работу
с текстовым материалом.
4. Comprehension Check. Упражнения на проверку понимания
текста.
5. Vocabulary Development. Упражнения на усвоение нового
лексического материала.
6. Skills Focus. Разнообразные формы закрепления речевых
умений в ситуациях, симулирующих реальную практику бизнеса.
Работа в парах и минигруппах.
7. Writing. Реферирование, составление эссе, деловая коррес-
понденция. Полные и реферативные переводы.
Раздел Appendiсes включает:

• тематический глоссарий, аббревиатуры знаковых понятий
в области маркетинга, основные валюты мира, примеры
вопросов из интервью для кандидатов на ключевые позиции
в маркетинге;
• ключи для проверки самостоятельно выполненных заданий.
5
В пособии делается акцент на выполнение практических за-

даний, моделирующих реальные ситуации бизнеса (представление
информации, описание тенденций, участие в конференциях, деловых
встречах и т.д.).
В конце каждого модуля предполагается выполнение творче-
ского задания, аккумулирующего информационные знания и при-
обретенные речевые умения и навыки. Возможны формы кратких
презентаций, участие в дискуссиях и переговорах. Приоритетная роль
отводится изучению конкретных деловых ситуаций (Casestudy), где
студенты могут проявить свое творческое мышление и предложить
альтернативные решения рассматриваемых проблем.
Задания к текстам способствуют развитию различных приемов
ознакомительного и аналитического чтения. Разработаны задания
на развитие навыков продуктивной письменной речи.
В процессе преподавания используются элементы интенсивных
методов обучения. Так, студентам предлагаются адреса сайтов в
Интернете в качестве источника дополнительной информации при
работе над модулем.
Формы учебной деятельности:

• Аудиторная работа.
• Самостоятельная работа.
Unit 1. About Marketing in General
1. Leadin
1) What do you understand by the word “marketing”? What do
you already know about marketing? In pairs or small groups,
summarize and discuss this information within 5 sentences.
2) Here are 5 definitions of marketing. Do you agree with all
definitions? Which of them do you think is the most accurate?
Give reasons for your choice.
• Marketing is the term given to all the different activities in-
tended to make and attract a profitable demand for a product.
• Marketing means that you don’t have to worry about selling
your product, because you know it satisfies a need.
• Marketing is a company’s choice of what goods and services
to offer, which is based on the goal of satisfying consumers’
needs.
• Marketing is sale, production distribution, which is producer
centred only.
• Marketing is a general term used to describe all the various
activities involved in transferring goods and services from
producers to consumers.
2. Key Vocabulary
1) to put smth on the market
2) marketing
3) a customer
7
4) a service
5) to benefit (from)
6) recruitment
7) to acquire
8) economy
9) advertising
10) to convince (smb of smth/to do smth)
11) sustainable competitive advantage (SCA)
12) to execute
13) to compete
14) to meet smb’s expectations and desires
15) promotion
16) distribution
17) branding
18) retailing
19) a transaction
20) to have an impact (on)
1) Consult a dictionary and write out the transcription and Rus-

sian equivalents of these words. Then practise reading them.
2) Make 3–5 sentences of your own with the words (groups of

words) from the Key Vocabulary.
3. Reading
Read the following text and highlight the information, which is
already known/unknown to you. Compare and discuss it with
your partner.
What is Marketing?
Marketing begins long before a product or service is put on the market.
It combines market research, new product development, distribution,
advertising, promotion, product improvement, and so on.
A marketfocused, or customerfocused, organization first determines
what its potential customers desire, and then builds the product or service.
Marketing theory and practice is justified in the belief that customers
8
use a product or service because they have a need, or because it provides

a perceived benefit.
Two major factors of marketing are the recruitment of new customers
(acquisition) and the retention and expansion of relationships with exist-
ing customers (base management).
Once a marketer has converted the prospective buyer, base manage-
ment marketing takes over. The process for base management shifts the
marketer to building a relationship, nurturing the links, enhancing the
benefits that sold the buyer in the first place, and improving the product/
service continuously to protect the business from competitive encroach-
ments.
Marketing methods are informed by many of the social sciences,
particularly psychology, sociology, and economics. Anthropology is also
a small, but growing, influence. Market research underpins these activi-
ties. Through advertising, it is also related to many of the creative arts.
For a marketing plan to be successful, the mix of the four Ps must re-
flect the wants and desires of the consumers in the target market. Trying to
convince a market segment to buy something they don’t want is extremely
expensive and seldom successful. Marketers depend on marketing research,
both formal and informal, to determine what consumers want and what
they are willing to pay for it. Marketers hope that this process will give
them a sustainable competitive advantage (SCA). Marketing management
is the practical application of this process. The offer is also an important
addition to the 4P’s theory.
Within most organizations, the activities encompassed by the mar-
keting function are led by a Vice President or Director of Marketing. A
growing number of organizations, especially large US companies, have a
Chief Marketing Officer (CMO) position, reporting to the Chief Execu-
tive Officer (CEO).
The American Marketing Association (AMA) states, “Marketing is
the process of planning and executing the conception, pricing, promotion,
and distribution of ideas, goods, and services to create exchanges that
satisfy individual and organizational objectives.”
Two Levels of Marketing

Strategic Marketing attempts to determine how an organization
competes against its competitors in a market place. In particular, it aims
at generating a competitive advantage relative to its competitors.
9
Operational Marketing executes marketing functions to attract and

keep customers and to maximize the value derived for them, as well as
to satisfy the customer with prompt services and meeting the customer
expectations. Operational Marketing includes the determination of the
marketing mix.
The Four Ps
In popular usage, “marketing” is the promotion of products, especially
advertising and branding. However, in professional usage the term has
a wider meaning which recognizes that marketing is customer centered.
Products are often developed to meet the desires of groups of customers or
even, in some cases, for specific customers. E. Jerome McCarthy1 divided
marketing into four general sets of activities. His typology has become
so universally recognized that his four activity sets, the Four Ps, have
passed into the language.
The four Ps are:
• Product: The product aspects of marketing deal with the speci-
fications of the actual goods or services, and how it relates to the
end user’s needs and wants. The scope of a product generally
includes supporting elements such as warranties, guarantees and
support.
• Pricing: This refers to the process of setting a price for a product,
including discounts. The price need not be monetary — it can
simply be what is exchanged for the product or services, e.g. time,
energy, psychology or attention.
• Promotion: This includes advertising, sales promotion, publicity,
and personal selling, and refers to the various methods of promot-
ing the product, brand, or company.
• Placement or distribution refers to how the product gets to the
customer; for example, point of sale placement or retailing. This
fourth P has also sometimes been called Place, referring to the
channel by which products or services are sold (e.g. online vs.
1 E. Jerome McCarthy is a professor at Michigan State University, USA, and an
internationally known marketing consultant. He is one of the authors of the influential

book “Basic Marketing” (now in its 16th edition).
10
retail), which geographic region or industry, to which segment

(young adults, families, business people), etc.
These four elements are often referred to as the marketing mix, which
a marketer can use to craft a marketing plan. The four Ps model is most
useful when marketing low value consumer products. Industrial prod-
ucts, services, high value consumer products require adjustments to this
model. Services marketing must account for the unique nature of services.
Industrial or B2B marketing must account for the long term contractual
agreements that are typical in supply chain transactions. Relationship
marketing attempts to do this by looking at marketing from a longterm
relationship perspective rather than individual transactions.
The Seven Ps
As well as the standard four Ps (Product, Pricing, Promotion and
Place), services marketing calls upon an extra three, totaling seven and
known together as the extended marketing mix. These are:
• People: Any person coming into contact with customers can have
an impact on overall satisfaction. Whether as part of a support-
ing service to a product or involved in a total service, people are
particularly important because, in the customer’s eyes, they are
generally inseparable from the total service. As a result of this, they
must be appropriately trained, well motivated and the right type
of person. Fellow customers are also sometimes referred to under
‘people’, as they too can affect the customer’s service experience,
(e.g., at a sporting event).
• Process: This is the process(es) involved in providing a service
and the behaviour of people, which can be crucial to customer
satisfaction.
• Physical evidence: Unlike a product, a service cannot be expe-
rienced before it is delivered, which makes it intangible. This,
therefore, means that potential customers could perceive greater
risk when deciding whether to use a service. To reduce the feeling
of risk, thus improving the chance for success, it is often vital to
offer potential customers the chance to see what a service would
be like. This is done by providing physical evidence, such as case
studies, testimonials or demonstrations.
11
4. Comprehension Check
1) According to the text and your own common knowledge, which
of these diagrams/charts best illustrates a company that has
adopted the marketing concept? Explain your choice.
A B
C D
2) Refer closely to the article and answer the following questions:

a) What is the difference between strategic and operational market-
ing?
b) What are the most important elements of marketing?
c) What are the two major factors of marketing? Do you agree with
the idea suggested?
12
d) What is ‘marketing mix’?

e) What does ‘sustainable competitive advantage’ mean? Suggest
some examples from reality.
3) Say whether these statements are true or false. Correct the

false statements.
1) Psychology is the main social science in marketing.
2) Marketing research can be formal and informal.
3) Usually a Chief Marketing Officer reports to a Chief Execu-
tive Officer.
4) Advertising is an element of promotion.
5) 7 Ps are often referred to as the marketing mix, which a
marketer can use to craft a marketing plan.
6) Like a product, a service can be trialed before it is delivered,
which makes it intangible.
7) The four Ps model is most useful when marketing low value
consumer products.
8) Physical evidence is one element of 7 Ps.
5. Vocabulary Development
1) Fill in the table for the words of the key vocabulary and some
new words from the text (10–12 items). The example is given
to you.
Word Definition Equivalent Synonyms Antonyms Derivatives
benefit something выгода; advantage, disadvan- beneficiate,

that im- польза; favour, gain, tage, harm, beneficial,
proves or прибыль; profit loss beneficent
promotes преимуще-
ство
1, 2, 3,...
2) Explain the difference between the words ‘economy’ and ‘eco-

nomics’, ‘economic’ and ‘economical’.
3) Find 10 words from the key vocabulary in the word square.

Some letters may be used several times.
13
o c m p k a r a
n m a r k e t n
v i c o t c a s
c n p m i o n o
e t e o n v y m
c u s t o m e r
a g f i t p s e
e n e o h c r a
b r a n d i n g
4) Here are some additional words to use. Match up the words on

the left with their definitions on the right:
1. cash a. to manage to do; achieve; complete
2. to strive b. a series of observations, measurements, or
facts; information
3. to respond (with) c. the percentage of a total market, in terms
of either value or volume, accounted for
by the sales of a specific brand
4. to evaluate d. to have or keep smth with or within the
hands
5. data e. to carry out; put into action; perform
6. to accomplish f. the income or reward accruing to a suc-
cessful entrepreneur and held to be the
motivating factor of all economic activity
in a capitalist economy
7. to hold g. to act in reply; react
8. to execute h. banknotes and coins, especially in hand or
readily available
9. profit i. to ascertain or set the amount or value of
smth
10. market share j. to make a great and tenacious effort
Insert the words (in the necessary form) from the previous task
in the text below, which gives you more information about marketing
classification.
14
MacroMarketing and MicroMarketing
Macromarketing refers to the overall social process that directs the

flow of goods and services from producer to consumer. It is the economic
system that determines what and how much is to be produced and distrib-
uted by whom, when, and to whom. E. Jerome McCarthy and William D.
Perreault, Jr. identified eight universal macromarketing functions that
make up the economic process:
• buying, which refers to consumers seeking and a) _____ goods
and services;
• selling, which involves promoting the offering;
• transporting, which refers to the movement of goods from one
place to another;
• storing, which involves b) _____ goods until customers need
them;
• standardization and grading, which entails sorting products ac-
cording to size and quality;
• financing, which delivers the c) _____ and credit needed to per-
form the first five functions;
• risk taking, which involves bearing the uncertainties that are part
of the marketing process;
• market information, which usually refers to the gathering, analysis,
and distribution of d) _____ necessary to e) _____ these market-
ing functions.
In contrast, micromarketing refers to the activities performed by the
individual providers of goods and services within a macromarketing sys-
tem. Such organizations or businesses use various marketing techniques to
f) objectives related to g) _____, h) _____, cash flow, and other economic
factors that can enhance their well being and position in the marketplace.
The micromarketing function within an entity is commonly referred
to as marketing management. Marketing managers i) _____ to get their
organizations to anticipate and accurately determine the needs and wants
of customer groups. Afterward they seek to j) _____ effectively with a
flow of needsatisfying goods and services. They are typically charged
with planning, implementing, and then measuring the effectiveness of
all marketing activities.
15
5) There is a logical connection among three of the four words in each

of the following groups. Which is the odd one out, and why?
a) Distribution — promotion — pricing — retention
b) Benefit — profit — data — cash
c) Promotion — competition — advertising — branding
d) impact — customer — enduser — product
6) Study the Useful Language phrases. Then discuss the second

text in pairs using the phrases.
Clarifying
What exactly do you mean by ...?
Sorry, I don’t follow you.
Are you saying that ...?
Could you be more specific, please?
I’m afraid I didn’t quite catch ...
Emphasising
I’d just like to highlight ...
What I’d like to say …
Windingup
Finally, ...
Before I finish I’d like to run through the main points once again.
To make a long story short, ...
To finalize the matter, ...
6. Skills Focus
On the basis of the both texts make a conversation. Imitate a
dialogue as if Student A speaks English and Student B speaks Russian
through the interpreter (Student C). Then exchange the roles and try
again. Employ as much Key Vocabulary as possible.
7. Writing
1) Write a summary covering the information of the both texts,

using 50–60 words.
2) Render into English the following passage.
16
Организация, которая ориентирована на рынок или потребителя,

определяет в первую очередь потребности клиентов, и только после
этого разрабатывает сам продукт и услуги. Маркетинговая теория и
практика подтверждают, что покупатели используют продукт или
услугу, потому что у них есть потребность в них или это обеспечивает
ощутимую выгоду.
Два главных фактора в маркетинге — это привлечение новых
клиентов и поддержание или расширение отношений с уже суще-
ствующими потребителями (основной менеджмент).
Основной менеджмент вступает в силу, как только торговец
привлек возможного покупателя. Процессы, которые происходят в
основном менеджменте, помогают продавцу в целях защиты бизнеса
от конкурентов построить взаимоотношения, укрепить связи, увели-
чить прибыль от проданного товара и непрерывно улучшать продукт
и услуги. Методы маркетинга можно найти во многих социальных
науках, особенно в психологии, социологии и экономике. Влияние
антропологии не большое, но оно становится все сильнее и сильнее.
Исследования рынка поддерживают эти действия. Через рекламу ме-
тоды маркетинга также связаны со многими видами искусств.
Чтобы план маркетинга был успешным, соотношение «4Р»
должно отражать нужды и желания потребителей на целевых рын-
ках. Попытка убедить сегмент маркетинга купить чтото, что им не
нужно — чрезвычайна дорога и в редких случаях успешна. Продавцы
зависят от маркетинговых исследований, как официальных, так и
неофициальных, с целью определить нужды потребителей и что они
собираются заплатить за них. Продавцы надеются, что этот процесс
даст им устойчивую конкурентоспособность. Маркетинговый менед-
жмент — практическое представление этого процесса. Предложение
является важным дополнением к теории «4Р».
В большинстве организаций ВицеПрезидент или Директор по
маркетингу управляет маркетинговыми функциями. Растущее чис-
ло организаций, особенно крупные американские компании, имеют
руководителя службы маркетинга, который находится в подчинении
главного исполнительного директора.
Американская Ассоциация Маркетологов заявляет: «Маркетинг —
это процесс планирования и выполнения концепции, оценки, поощре-
ния и распределения идей, товаров и услуг для создания обмена,
который удовлетворял бы потребности личности и организации».
17
Unit 2. Market Research
1. Leadin
1) In pairs, share your vision on market research. Draw on the
Key Vocabulary of Unit 1.
2) Think over the main functions of market research in marketing
and the process of selling in general.
2. Key Vocabulary
1) market research
2) an entrepreneur
3) to make a decision
4) feasibility
5) annual budget
6) annual report
7) coherent
8) to do smth in response to smth
9) a survey
10) chamber of commerce
11) to solve a problem
12) to decide on smth
13) primary and secondary information
14) emotional appeal
15) target audience

sian equivalents of these words. Then practice reading them.
18

3. Reading
Read the article and compare it with your ideas to the second
task of Leadin.
Market Research
The term ‘market research’ encompasses a number of activities that are
designed to connect marketers to consumers through information gather-
ing and evaluation. Market research provides businesses with information
about their customers, their competitors, and their overall industry. It
is commonly used to identify marketing problems and opportunities, as
well as to develop and evaluate the effectiveness of marketing strategies.
Market research can help entrepreneurs evaluate the feasibility of a start up
venture before investing a great deal of time and capital, for example, as
well as assist them in effectively marketing their goods and services.
Employing such marketing strategies as market segmentation and
product differentiation would be nearly impossible without first conduct-
ing market research.
Although market research can be costly, it is often even more costly
to make erroneous decisions based upon bad or inadequate information. In
fact, an average business spends between 25 and 50 per cent of its annual
marketing budget on research activities. There is a great deal of helpful
information available to entrepreneurs who know where to look, and there
are many consultants, advertising firms, and market research specialists
who offer their services to businesses.
The information gathered through market research can be divided
into two main categories. The first category — primary information — gen-
erally does not exist in a coherent form before the marketer gathers it in
response to a particular question or problem. The most common methods
of gathering primary market research information are through direct mail,
telemarketing, and personal interviews.
The other category — secondary information — has already been
compiled and organized by a source other than the marketer. Rather
than looking at a specific marketing problem faced by an individual
19
company, secondary information generally tracks trends within a market,

an industry, a demographic group, or a geographic region. Some possible
sources of secondary market research information include government
reports, trade association records, newspaper and magazine surveys,
universitysponsored research, local chamber of commerce records, online
services, and competitors’ annual reports.
Market research can provide business owners with the information
they need to answer a wide range of questions, including: Who are my
customers? Where are they located? How much and how often will they
buy? and What product attributes do they prefer?
Given the importance of market research — and its potential cost
— experts recommend that businesses follow a stepbystep approach in
order to gain the most benefits from their research activities. The first
step in the market research process is to define the marketing problem
to be addressed. Next, a marketer should determine what information
is needed to solve the problem, as well as what sources should be used to
acquire the information. Many businesses make a preliminary investiga-
tion at this early stage in order to give their definition of the problem
more focus and to develop tentative answers that can be tested during the
next stage of the process. The third step involves planning the research.
This step includes selecting the techniques to be used for gathering data
and deciding on an appropriate group, or sample, to be included in the
research. Fourth, a marketer actually gathers the necessary data. The fifth
step involves analyzing and interpreting the information that has been
gathered. Finally, the marketer reaches a conclusion about the market-
ing problem and translates the findings into changes in the firm’s overall
marketing strategy.

a) What information can market research provide business own-
ers with?
b) What is the difference between primary and secondary infor-
mation gathered through market research?
c) Name some possible sources of primary and secondary informa-
20
tion. Which of them are more accurate and useful?
2) Discuss the following statements from the text, illustrating

your arguments with examples:
a) “Although market research can be costly, it is often even more
costly to make erroneous decisions based upon bad or inad-
equate information.”
b) “… experts recommend that businesses follow a stepbystep
approach in order to gain the most benefits from their research
activities.”
to you.
costly of great price дорогой, expensive, cheap, cost, costs

or value; ценный, highpriced, cutprice,
entailing дорогосто- overpriced inexpensive
great loss or ящий
sacrifice
1, 2,...
2) Find definitions to the following words and word combinations.

Make your own sentences with them.
Opinion poll; validity; quantitative research; extrapolation; sta-
tistical analysis; pilot survey; field work; unstructured survey;
qualitative research; cluster sampling.
3) Find 10 words from the key vocabulary and the previous task
in the word square. Each letter may be used several times.
21
s g k d s l a e
a n f n u a l p
m i e n r e t p
p l a a p e n a
a o s u r v e y
i d i t e u r e
l a b y n e u h
p v i t i e v o
o l l i s o l c
4) Here are some main types of market research. Match them with
the descriptions below.
closedend audience scanner openend ques- postsales or cus-

questionnaire research research tionnaire tomer satisfaction
research
focus groups brand re- product psychological database

search research research research
Types of Market Research
1) _________ is a research on who is listening, watching, and reading

is important to marketers of television and radio programmes and
print publications — as well as to advertisers who wish to reach a
certain target audience with their message.
2) ___________ includes simple, inperson research such as taste

tests conducted in malls and in the aisles of grocery stores, as well as
elaborate, longterm ‘‘beta testing’’ of hightech products by selected,
experienced users.
3) ____________ helps advertisers to find out whether consumers have

strong brand loyalty, whether the brand has any emotional appeal and
what the consumer thinks could be improved about the brand.
22
4) ___________ tries to determine why people buy certain products

based on a profile of the way the consumers live their lives.
5) ___________ records what was actually purchased. This is valuable

information an advertiser can use to help plan an ongoing marketing
strategy.
6) ___________ shows up on thousands of lists and databases that are

regularly crossreferenced to mine nuggets of marketing research. It
allows companies to build personal relationships with people who
have proven from past purchases that they are potential customers.
7) Many companies now wait a few days or weeks, then contact custom-
ers with survey, questionnaires or telephone calls. Companies want
reassurance that the customer enjoyed the buying experience and that
the product or service has met the buyer’s expectations. The reason
behind ___________ is to ensure that current customers are happy,
will consider themselves future customers, and will spread positive
word of mouth messages about the product and company.
8) ___________ includes such common activities as filling out a com-

ment card at a restaurant or responding to a telephone survey. The
person being surveyed cannot expound on their answers. Such surveys
usually ask for ‘‘yes’’ or ‘‘no’’ responses or for measures of multiple
choice opinion.
9) Over time, market researchers have grown increasingly aware that

people often have opinions that do not fit into a multiple choice
questionnaire. To capture these opinions and try to analyze them,
researchers are shifting toward ________ — asking people to say
exactly what is on their minds.
10) Inperson, sitdown discussions around a table with groups of con-

sumers, wouldbe consumers, neverbuyers, or any other demographic
group, a company wishes to bring together are called __________.
This allows executives to observe the proceedings unobtrusively or
to videotape the session for further study.
23
5) Study the Useful Language phrases. Then render the second

text using the phrases.
Starting your position

I think I ought to say right from the start that ...
I feel I should point out to you that ...
Perhaps I can begin by saying that ...
We must bear in mind the fact that ...
The idea behind the expression ... is ... that ...
As a matter of fact, ...
Delivering the message
Let us clear first of all over …
The first point to make is that …
The next point is that …
Initially …
The way I see it …
From what I know …
It‘s absolutely true that …
If I remember correctly …
Windingup
To sum up what has been mentioned ...
All this suggests that
6. Skills Focus
In small groups, roleplay the following situation using the

information of the both texts. You work in a marketing depart-
ment of a large company. Your director decided to introduce
a new product to the market. You and some other people from
your department were asked to do a market research and
suggest the most suitable image of the brandnew. Plan the
research with your team. Suppose you have got the necessary
statistics concerning the consumers’ preferences. Then report
on the result to your director.
Note: Choose any product you like; allocate the responsibilities.
Employ as much Key Vocabulary as possible.
24
7. Writing
1) Write a short letter (100–150 words) to your friend from related

department. Inform him or her of the market research you’ve
recently done.
Методы маркетинговых исследований
Методологически все маркетинговые исследования используют

четыре вида дизайна, а именно:
a) качественное маркетинговое исследование — обычно ис-
пользуется для познающих целей — маленькое количество
респондентов — не может быть обобщено на все население
— статистическая значимость и доверительный уровень не
может быть вычислен — примерами являются групповые
обсуждения, глубинные интервью и проективные техники;
b) количественное маркетинговое исследование — обычно ис-
пользуется для получения заключений — проверяет конкрет-
ные гипотезы — использует технику случайной выборки для
того, чтобы сделать выводы обо всем населении — затрагивает
большое количество респондентов — примерами являются
опрос и анкетирование;
c) наблюдательные техники — исследователь наблюдает со-
циальные явления в естественных условиях — наблюдение
может быть перекрестным (все наблюдения делаются в одно
время) или последовательным (наблюдения происходят в не-
сколько временных периодов) — примерами являются анализ
по использованию продукта; и
d) экспериментальные или опытные техники — исследователь
создает почти искусственное окружение, пытаясь контро-
лировать ложные факторы, которые управляют по крайней
мере одной переменной — примерами являются лаборатории
покупок и пробный маркетинг.
Исследователи часто используют более одного дизайна. Они мо-
гут начать со вторичного исследования, чтобы получить исходную
информацию, после чего провести групповые обсуждения (дизайн
25
качественного маркетингового исследования) чтобы исследовать

проблему. В заключение, они могут провести полный общенациональ-
ный опрос (дизайн количественного маркетингового исследования),
чтобы разработать конкретные рекомендации для клиента.
Unit 3. Market Segmentation
1. Leadin
1) How would you explain the words “segment” and “segmenta-

tion”? What do you think they mean in economy and marketing
in particular? Suggest your own definitions.
2) Work in small groups and discuss:
a) the role of market segmentation;
b) who needs to segment the market;
c) what information is necessary to segment the market.
2. Key Vocabulary
1) market segmentation
2) to fit
3) homogenous
4) a market niche
5) feasible
6) to divide the overall market into segments
7) to match smth to the needs of smth
8) to implement a strategy
9) to fall into distinct clusters
10) to yield
11) a trait
12) a benefit
13) a pitfall
14) an approach
27
1) Consult a dictionary and write out the transcription and Russian

equivalents of these words. Then practise reading them.
3. Reading
Read the following text, find the answers to the questions given
in Leadin and compare them with your suggestions.
Market Segmentation
Market segmentation is the science of dividing an overall market
into key customer subsets, or segments, whose members share similar
characteristics and needs. Because it involves significant market research,
market segmentation can be costly. But it is especially important for those
businesses, which lack the resources to target large aggregate markets or
to maintain a wide range of differentiated products for varied markets.
Market segmentation allows a business to develop a product and a mar-
keting mix that fit a relatively homogenous part of the total market. By
focusing its resources on a specific customer base in this way, a business
may be able to carve out a market niche that it can serve better than its
competitors.
Market segmentation uses the strategies that range from mass mar-
keting — in which a single product is offered to all customers in a market
— to onetoone marketing — in which a different product is specifically
designed for each individual customer in a market. Most businesses real-
ize that since no two people are exactly alike, it is unlikely that they will
be able to please all customers in a market with a single product. They
also realize that it is rarely feasible to create a distinct product for every
customer. Instead, most businesses attempt to improve their odds of
attracting a significant base of customers by dividing the overall market
into segments, then trying to match their product and marketing mix
more closely to the needs of one or more segments. A number of customer
characteristics, known as segmentation bases, can be used to define mar-
ket segments. Some commonly used bases include age, gender, income,
geographical area, and buying behavior.
28
Segmentation Bases
In order to successfully implement a market segmentation strategy,
a business must employ market research techniques to find patterns of
similarity among customer preferences in a market. Ideally, customer
preferences will fall into distinct clusters based upon identifiable charac-
teristics of the population.
To be pursued by a marketer, according to Alexander Hiam and
Charles D. Schewe in “The Portable MBA in Marketing,” the customer
segments should be:
1) identifiable and measurable;
2) large enough to be profitable;
3) reached effectively (for example, its members must tend to view
the same television programs, read the same publications, or shop
in the same places);
4) responsive to marketing;
5) stable and not expected to change quickly.
A company might elect to serve a single market segment or attempt
to meet the needs of several segments.
Determining how to segment a market is one of the most important
questions a marketer must face. Creative and effective market segmentation
can lead to the development of popular new products, but unsuccessful
segmentation can cost a great deal of money and still not yield the desired
results. There are three main types of segmentation bases for businesses
to consider — descriptive bases, behavioral bases, and benefit bases — each
of which breaks down into numerous potential customer traits.
Descriptive bases for market segmentation include a variety of factors
that describe the demographic and geographic situation of the custom-
ers in a market. They are the most commonly used segmentation bases
because they are easy to measure, and because they often serve as strong
indicators of consumer needs and preferences. Some of the demographic
variables that are used as descriptive bases in market segmentation might
include age, gender, religion, income, and family size, while some of the
geographic variables might include region of the country, climate, and
population of the surrounding area.
Behavioral bases for market segmentation are generally more dif-
ficult to measure than descriptive ones, but they are often considered
to be more powerful determinants of consumer purchases. They include
those underlying factors that help motivate consumers to make certain
29
buying decisions, such as personality, lifestyle, and social class. Behavioral

bases also include factors that are directly related to consumer purchases
of certain goods, such as their degree of brand loyalty, the rate at which
they use the product and need to replace it, and their readiness to buy
at a particular time.
Businesses that segment a market based on benefits hope to identify
the primary benefit that consumers seek in buying a certain product, then
supply a product that provides that benefit. This segmentation approach
is based upon the idea that market segments exist primarily because
consumers seek different benefits from products, rather than because of
various other differences between consumers. One potential pitfall to
this approach is that consumers do not always know or cannot always
identify a single benefit that influences them to make a purchase decision.
Many marketers use a combination of bases that seem most appropri-
ate when segmenting a market. Using a single variable is undoubtedly
easier, but it often turns out to be less precise.
4. Сomprehension Check
1) Answer the questions to the text:

a) What is the difference between mass and onetoone market-
ing?
b) What may be the result of unsuccessful segmentation?
c) What is the subject matter of each segmentation basis (descrip-
tive, behavioural and benefit) mentioned in the text?
2) Discuss the following statements, illustrating your arguments

with examples:
a) Determining how to segment a market is one of the most im-
portant questions a marketer must face.
b) In order to successfully implement a market segmentation strat-
egy, a business must employ market research techniques to find
patterns of similarity among customer preferences in a market.
c) Market segmentation is especially important for those busi-
nesses, which lack the resources to target large aggregate
markets or to maintain a wide range of differentiated products
for varied markets.
30
d) Many marketers use a combination of bases that seem most ap-

propriate when segmenting a market. Using a single variable is
undoubtedly easier, but it often turns out to be less precise.
3) Have a close look at the second paragraph about segmentation

bases and comment on the requirements customer segments
should meet.
1) Fill in the table for the words of the key vocabulary and some new
words from the text (10–12 items). The example is given to you.
distinct easily sensed отчётливый; clear; indistinct, distinction,

or under- внятный, precise, vague, un- distinctive,
stood чёткий, intelligible, intelligible, distinctly,
ясный understand- ambiguous, distinctness,
able disputable, distinctive-
dubious ness
1, 2,...
2) Find 10 words from the key vocabulary and the text “Market
segmentation” in the word square. Some letters may be used
several times.
s c l u s t e r
e v f t r a i t
g a d b a j l p
m r i a b l e i
e y i e l d h t
n s t h a e c f
t o l c p c a a
a c y i p r o l
t i o n f i t l
31
3) How do you imagine the segmentation process? What steps

should it consist of? Here are 6 steps suggested by Alexander
Hiam and Charles D. Schewe. Arrange them in the logical
order.
Segmentation Process
Hiam and Schewe have identified six steps that companies should
take in the market segmentation process.
The_____ step in the market segmentation process is to decide which
segment or segments to serve. In targeting a particular segment, a marketer
should look for opportunities (i.e., customers with unsatisfied wants and
needs) that provide a good match for the organization and its resources.
It is important that the marketer consider not only the size and potential
profitability of a market segment, but also whether the company’s skills,
technologies, and objectives would enable it to meet the needs of that
segment better than its competitors.
The______ step in the market segmentation process is actually
collecting and analyzing data, which involves applying market research
tools. The goal in analyzing the data is to identify market segments that
are internally homogeneous, yet are distinctly heterogeneous with respect
to other segments.
The _____ step is to develop a product and marketing plan that
will appeal to the selected market segment. This involves identifying the
product attributes that are most important to consumers in the segment,
and developing a marketing strategy that will attract their attention. In
fact, market segmentation can be usefully applied during the earliest stages
of product design, when a company first identifies who its target customer
will be in terms of demographic, geographic, and behavioral characteristics.
The _____ step in the process is to decide which variables to use in
segmenting the market. Many companies fall into the trap of collecting
data on as many variables as possible and then attempting to sort through
it later to draw meaningful conclusions. Instead, Hiam and Schewe recom-
mend that marketers use their knowledge of the market to select a few
relevant variables in advance. This approach is generally less expensive
and will likely provide more useful results.
The _____ step is to determine the boundaries of the market. In
completing this step, a marketer should use a formal business plan to
32
develop a broad definition of their business, and then consider the offer-
ings of both direct and indirect competitors to gain information about
the basic needs of consumers in the market.
The _____ step is to develop a detailed profile of each market seg-
ment, which involves selecting those variables that are most closely related
to consumers’ actual buying behavior.
In general, customers are willing to pay a premium for a product that
meets their needs more specifically than does a competing product. Thus
marketers who successfully segment the overall market and adapt their
products to the needs of one or more smaller segments stand to gain in terms
of increased profit margins and reduced competitive pressures.
6. Skills Focus
1) Roleplay a conversation between a senior consultant and a
newcomer. Discuss the process of market segmentation in-
cluding its bases and main steps. Share your ideas about its
efficiency. Propose possible improvements.
2) Group in small teams. Imagine that you work in consulting
firms, which offer assistance with market segmentation. Your
regular clients asked you to help them segment the market
and thus establish their own niche (it is up to you to choose
the type of products the clients offer). In each team analyze
the current market situation from the point of view of different
segmentation bases, choose some market segment which suits
your clients’ interests and prepare a brief report on the results
of your research. Use the vocabulary and the information about
market segmentation, its bases and steps you have studied in
this unit to the utmost. In the end listen to all reports and reveal
the best one.
7. Writing
Write a summary covering the information of the both texts,
Add your personal commentary.Unit 4. Business Strategy
33
Unit 4. Business Strategy
1. Leadin
Note: ‘a strategy’ is a plan or method for achieving something, espe-
cially over a long period of time; ‘strategy’ means the skill of planning how
to achieve something. (from Macmillan English Dictionary for advanced
learners, New Edition)
1) Work in small groups and discuss the following:
a) In what spheres of life can we use the notion of strategy?
b) What may ‘a strategy’ mean in business and marketing in
particular?
c) Is it easy to formulate an effective business strategy?
2) Comment on the definitions. Which of them do you prefer?

a) a strategy — a course of action, including the specification of
resources required, to achieve a specific objective;
b) a strategy — a plan of future actions;
c) a strategy — a pattern or plan that integrates an organization’s
major goals, policies, and action sequences into a cohesive
whole;
d) a strategy — continually adapting to change.
2. Key Vocabulary
1) a strategic triangle
2) hierarchical
34
3) internal and external forces

4) assets
5) an executive
6) personnel
7) to implement the chosen strategy
8) societal expectations
9) to develop a realistic and feasible set of goals and policies
10) generic strategies
1) Consult a dictionary and write out the transcription and Russian

equivalents of these words. Then practise reading them.

3. Reading
Read the first part of the article about business strategy and think
which groups below should be involved in construing strategy:
• shareholders
• boards of directors
• senior managers
• middle and junior managers
• other employees
• government representatives
• trade union representatives
• suppliers
• customers
Business Strategy
As James Brian Quinn indicated in The Strategy Process: Concepts and

Contexts, ‘‘a strategy is the pattern or plan that integrates an organiza-
tion’s major goals, policies, and action sequences into a cohesive whole. A
wellformulated strategy helps to marshal and allocate an organization’s
resources into a unique and viable posture based on its relative internal
competencies and shortcomings, anticipated changes in the environment,
and contingent moves by intelligent opponents.’’ All types of businesses
35
require some sort of strategy in order to be successful; otherwise their

efforts and resources will be spent haphazardly and likely wasted.
Formulation of an effective business strategy requires managers
to consider three main players — the company, its customers, and the
competition — according to Kenichi Ohmae in his book The Mind of the
Strategist. These three players are collectively referred to as the strategic
triangle. ‘‘In terms of these three key players, strategy is defined as the
way in which a corporation endeavors to differentiate itself positively from
its competitors, using its relative corporate strengths and weaknesses to
better satisfy customer needs,’’ Ohmae explained.
Quinn noted that an effective business strategy should include three
elements: 1) a clear and decisive statement of the primary goals or objec-
tives to be achieved; 2) an analysis of the main policies guiding or limiting
the company’s actions; and 3) a description of the major programs that
will be used to accomplish the goals within the limits.
In addition, it is important that strategies include only a few main
concepts or thrusts in order to maintain their focus. They should also
be related to other strategies in a hierarchical fashion, with each level
supporting those above and below. Finally, strategies should attempt to
build a strong yet flexible position for the company so that it may achieve
its goals whatever the reaction of external forces. ‘‘Strategic decisions
are those that determine the overall direction of an enterprise and its
ultimate viability in light of the predictable, the unpredictable, and the
unknowable changes that may occur in its most important surrounding
environments,’’ Quinn stated.
Limits on Strategic Choices

The strategic choices available to a company are limited; rather, they
depend upon the company’s capabilities and its position in the market-
place. ‘‘At the broadest level formulating competitive strategy involves
the consideration of four key factors that determine the limits of what
a company can successfully accomplish,’’ Michael E. Porter wrote in his
classic book Competitive Strategy. Two of these limiting factors are inter-
nal, and the other two are external. The internal limits are the company’s
overall strengths and weaknesses and the personal values of its leaders.
‘‘The company’s strengths and weaknesses are its profile of assets and
skills relative to competitors, including financial resources, technological
posture, brand identification, and so on,’’ Porter stated. ‘‘The personal
36
values of an organization are the motivations and needs of the key

executives and other personnel who must implement the chosen strategy.’’
The external factors limiting the range of a company’s strategic
decisions are the competitive environment and societal expectations
under which it operates. ‘‘Industry opportunities and threats define the
competitive environment, with its attendant risks and potential rewards,’’
Porter noted. ‘‘Societal expectations reflect the impact on the company
of such things as government policy, social concerns, evolving mores, and
many others. These four factors must be considered before a business can
develop a realistic and feasible set of goals and policies.’’
Once a company has analyzed the four factors, it may then begin
developing a strategy to compete under or attempt to change the situ-
ation it faces. The approach to strategy development recommended by
Porter involves:
1) identifying the company’s current strategy;
2) revealing underlying assumptions about the company’s position,
its competitors, or industry trends affecting it;
3) analyzing the threats and opportunities present in the external
environment;
4) determining the company’s own strengths and weaknesses given
the realities of its environment;
5) proposing feasible alternatives;
6) choosing the one that best relates the company’s situation to its
environment.
1) Refer closely to the article and answer the questions:

a) What is ‘a strategic triangle’ according to Kenichi Ohmae?
b) Why do you think the strategic choices available to a company
should be limited?
c) What are the key internal and external factors that, according
to Michael E. Porter, determine the limits of what a company
can successfully accomplish?
2) Comment on the three elements of an effective business strat-

egy, which are stated by James Brian Quinn.
37

a) ‘‘Strategic decisions are those that determine the overall direc-
tion of an enterprise and its ultimate viability in light of the
predictable, the unpredictable, and the unknowable changes
that may occur in its most important surrounding environ-
ments.’’
b) The strategic choices available to a company are limited; rather,
they depend upon the company’s capabilities and its position
in the marketplace.
c) ‘‘Societal expectations reflect the impact on the company of
such things as government policy, social concerns, evolving
mores, and many others. These four factors must be considered
before a business can develop a realistic and feasible set of goals
and policies.’’
1) Complete the table with derivatives:

verb noun adjective
require
competition, competitor
develop
executive
strength
satisfy
effective
consideration
refer
decisive
2) Here is the second part of the article. It is devoted to generic

strategies.
a) Read the information concentrating on advantages and
disadvantages of each strategy.
b) In pairs, discuss the given strategies and choose the one
you would use in your business. Explain your choice.
38
Generic Strategies
The number of potential business strategies are probably as great
as the number of different businesses. Each distinct organization must
develop a strategy that best matches its internal capabilities and its situa-
tion with regard to the external environment. Still, many of the numerous
strategies pursued by businesses can be loosely grouped under three main
categories — cost leadership, differentiation, and focus. Porter termed
these categories ‘‘generic strategies,’’ and claimed that most companies use
variations of them, either singly or in combination, to create a defensible
position in their industry. On the other hand, companies that fail to target
their efforts toward any of the generic strategies risk to low profitability
and a lack of competitiveness.
Cost Leadership
The first generic strategy, overall cost leadership, can enable a
company to earn above average profits despite the presence of strong
competitive pressures. But it can also be difficult to implement. In a
company pursuing a lowcost strategy, every activity of the organization
must be examined with respect to cost. For example, favorable access to
raw materials must be arranged, products must be designed for ease of
manufacturing, manufacturing facilities and equipment must continually
be upgraded, and production must take advantage of economies of scale.
In addition, a lowcost strategy requires a company to implement tight
controls across its operations, avoid marginal customer accounts, and
minimize spending on advertising and customer service. Implemented
successfully in a pricesensitive market, however, a lowcost strategy can
lead to strong market share and profit margins.
Of course, a lowcost strategy, like any other strategy, also involves
risks. For example, technological changes may make the company’s invest-
ments in facilities and equipment obsolete. There is also the possibility
that other competitors will learn to match the cost advantages offered
by the company, particularly if inflation helps narrow the gap. Finally,
low cost producers risk focusing on cost to such an extent that they are
unable to anticipate necessary product or marketing changes.
Differentiation
Companies that pursue a strategy of differentiation try to create a
product or service that is considered unique within their industry. They
39
may attempt to differentiate themselves on the basis of product design or

features, brand image, technology, customer service, distribution, or several
of these elements. The idea behind a differentiation strategy is to attract
customers with a unique offering that meets their needs better than the
competition, and for which they will be willing to pay a premium price.
This strategy is intended to create brand loyalty among customers and thus
provide solid profit margins for the company. Although the company may
not be able to achieve a high market share using a differentiation strategy
— because successful differentiation requires a perception of exclusivity,
and because not all customers will be willing or able to pay the higher
prices — the increased profit margins should compensate. Naturally, there
are risks associated with committing to a differentiation strategy. For ex-
ample, competitors may be able to imitate the unique features, customers
may lose interest in the unique features, or lowcost competitors may be
able to undercut prices in a way that erodes brand loyalty.
Focus
Companies undertaking a focus strategy direct their full attention
toward serving a particular market, whether it is a specific customer group,
product segment, or geographic region. The idea behind the focus strategy
is to serve that particular market more effectively than competitors on
the basis of product differentiation, low cost, or both. Since focusing on
a small segment of the overall market limits the market share a company
can command, it must be able to make up for the lost sales volume with
increased profitability. The focus strategy, too, entails risks. For example,
there is always a possibility that competitors will be able to exploit sub-
markets within the strategic target market, that the differences between
the target market and the overall market will narrow, or that the high costs
associated with serving the target market will eliminate any advantage
gained through differentiation.
Each of the three generic strategies identified by Porter requires a
company to accumulate a different set of skills and resources. For example,
a company pursuing a lowcost strategy would likely have a much different
organizational structure, incentive system, and corporate culture than one
pursuing a differentiation strategy. The key to successful implementation
of one of the three generic strategies is to commit to it fully, rather than
take halfmeasures that do not distinguish the company in any way.
40
3) Here is a list of some other strategies a company may use. Find

some information about each strategy. With your class mates,
share and discuss what you have found out.
• a takeover
• a joint venture
• a merger
• an alliance
• a sell off
• a disposal
• acquisition
• integration
6. Skills Focus
In small groups, roleplay the following situation drawing on the
information and vocabulary of the both texts.
You and your group mates are the members of the company’s
board of directors. You all decided to reconstruct the business
and thus change the strategy.
Each student should choose one of the strategies mentioned above
and present it as the most suitable for the company. Organize
debates and finally accept the optimal one.
7. Writing
Write a short letter (150–200 words) to your friends from the
Marketing department. Inform them of the decisions made during
the recent discussion of the new business strategy. Ground the
choice of yours and describe the perspectives. Add your personal
commentary.
Unit 5. Business planning
1. Leadin
1) In pairs, discuss the following questions:

a) Why do people sometimes need to plan their life?
b) Do you often make plans? Why?
c) What do you usually plan?
d) Does planning always help you achieve your goals?
2) Do you know what a business plan is? What does it consist of?
What is the connection between a business plan and a strategy?
Exchange your ideas in class and make some conclusions.
3) In small groups, think over the role of planning in business and

marketing in particular. Enlist several main benefits of making
business plans.
2. Key Vocabulary
1) to achieve/attain/accomplish objectives/goals
2) a broad set of interrelated choices
3) to be implemented through smth
4) a loan
5) personnel
6) to enhance
7) to foster
8) personal commitment
9) morale
42
10) utilization of scarce resources

11) fiscal
12) a prerequisite
13) to assert a plan
14) to persuade

3. Reading
Read the article and point out what role and benefits of business
planning are mentioned. Compare them with those suggested by
you in Leadin.
Business Planning: General Overview

Business planning, also known as strategic planning or longrange
planning, is a managementdirected process that is intended to determine
a desired future state for a business entity and to define overall strate-
gies for accomplishing the desired state. Through planning, management
decides what objectives to pursue during a future period, and what actions
to undertake to achieve those objectives.
Successful business planning requires concentrated time and effort
in a systematic approach that involves: assessing the present situation;
anticipating future profitability and market conditions; determining ob-
jectives and goals; outlining a course of action; and analyzing the financial
implications of these actions. From an array of alternatives, management
distills a broad set of interrelated choices to form its longterm strategy.
This strategy is implemented through the annual budgeting process, in
which detailed, shortterm plans are formulated to guide daytoday
activities in order to attain the company’s longterm objectives and goals.
For entrepreneurs, the first step in successful business planning
involves creating a formal business plan, of the type commonly used to
attract investors and secure bank loans. Careful preparation of this docu-
ment forces a business owner to examine his or her own goals as well as
43
the market conditions in which the business operates. It also includes

a detailed financial analysis, a look at current staffing levels and future
needs, and information about management’s expertise. ‘‘All the elements
can be folded together to formulate a strategic plan that focuses on where
you want your company to be in the long run, and how you plan to get
there,’’ Vince Maietta wrote in The Business Journal. ‘‘That also helps
entrepreneurs focus on the strengths and weaknesses of the firm, as well
as opportunities and threats.’’
The use of formal business planning has increased significantly over
the past few decades. The increase in the use of formal longrange plans
reflects a number of significant factors:
1) Competitors engage in longrange planning.
2) Global economic expansion is a longrange effort.
3) Taxing authorities and investors require more detailed reports
about future prospects and annual performance.
4) Investors assess risk/reward according to longrange plans and
expectations.
5) Availability of computers and sophisticated mathematical models
add to the potential and precision of longrange planning.
6) Expenditures for research and development increased dramati-
cally, resulting in the need for longer planning horizons and huge
investments in capital equipment.
7) Steady economic growth has made longerterm planning more
realistic.
Benefits of Planning
Planning provides a means for actively involving personnel from all
areas of the business enterprise in the management of the organization.
Companywide participation improves the quality of the plans. Employee
involvement enhances their overall understanding of the organization’s
objectives and goals. The employees’ knowledge of the broad plan and
awareness of the expected outcomes for their responsibility centers mini-
mizes friction between departments, sections, and individuals. Involve-
ment in planning fosters a greater personal commitment to the plan and to
the organization. These positive attitudes improve overall organizational
morale and loyalty.
Managerial performance also benefits from planning. Planning focuses
44
the energies and activities of managers in the utilization of scarce resources

in a competitive and demanding marketplace. Able to clearly identify goals
and objectives, managers perform better, are more productive, and their
operations are more profitable. In addition, planning is a mental exercise
from which managers attain experience and knowledge. It prepares them
for the rigors of the marketplace by forcing them to think in a future— and
contingency oriented manner.
The Planning Horizon

Basically, there are two timetables for planning. The first is
longrange, extending beyond one year and normally less than five or ten
years. Often called the strategic plan or investment plan, it establishes the
objectives and goals from which shortrange plans are made. Longrange
plans support the organizational purpose by providing clear statements
of where the organization is going.
The second planning horizon is shortrange, covering a period of up
to one year. Shortrange plans are derived from an indepth evaluation of
the longrange plan. The annual budget is a quantified expression of the
enterprise’s plans for the fiscal year. It generally is divided into quarters,
and is used to guide and control daytoday activities. It is often called the
tactical plan because it sets priorities, in the near term, for the longrange
plans through the allocation of resources to specific activities.
Steps in the Planning Process

The planning process is directly related to organizational considera-
tions, management style, maturity of the organization, and employee pro-
fessionalism. These factors vary among industries and even among similar
companies. Yet all management, when applying a scientific method to
planning, perform similar steps. The time spent on each step will vary by
company. Completion of each step, however, is prerequisite to successful
planning. The main steps in the planning process are:
1) Conducting a selfaudit to determine capabilities and unique
qualities;
2) Evaluating the business environment for possible risks and re-
wards;
3) Setting objectives that give direction;
4) Establishing goals that quantify objectives and timeframes;
45
5) Forecasting market conditions that affect goals and objectives;

6) Stating actions and resources needed to accomplish goals;
7) Evaluating proposed actions and selecting the most appropriate
ones;
8) Asserting alternative strategic plans;
9) Instituting procedures to control the implementation and execu-
tion of the plan (mainly through the annual budget).
A company’s business plan is one of its most important documents.
It can be used by managers and executives for internal planning. It can be
used as the basis for loan applications from banks and other lenders. It can
be used to persuade investors that a company is a good investment. The
process of preparing a business plan serves as a road map to the future by
making entrepreneurs and business owners think through their strategies,
evaluate their basic business concepts, recognize their business’s limita-
tions, and avoid a variety of mistakes.

a) What are the reasons for the increase in the use of formal
longterm plans over the past few decades? Give comments
and your own examples.
b) What is the difference between strategic and tactical plans?
c) Which step in the planning process you consider to be the most
important? Give reasons.
2) Read the list of the main steps in the planning process again
and develop each point. Give your own examples.

a) “The planning process is directly related to organizational
considerations, management style, maturity of the organiza-
tion, and employee professionalism.”
b) “Able to clearly identify goals and objectives, managers perform
better, are more productive, and their operations are more
profitable.”
46
new words from the text (10–12 items).
to assess to judge оценивать, to evaluate, assessed,

the worth, давать to judge, assessable,
importance, оценку to estimate assessor, as-
etc. of smth; sessment
to estimate
the value of
smth
1, 2, 3,...
2) Complete the crossword with the words from the key vocabu-
lary and the text.
Across
1. An impressive display or collection; an orderly or regular arrange-
ment.
3. A person or group responsible for the administration of a project,
activity, or business.
5. A word relating to a goal or aim.
7. To promote the growth or development of smth.
9. Relating to government finances; involving financial matters.
47
10. A ____ plan is used to guide and control daytoday activities.

12. A number of objects or people grouped or belonging together,
often forming a unit or having certain features or characteristics
in common
Down
2. Something required as a prior condition.
4. The people employed in an organization.
6. Some property lent, esp. money lent at interest for a period of
time.
8. An obligation, promise, etc. that restricts one’s freedom of action;
a future financial obligation.
11. The process of making practical or worthwhile use of smth.
3) Listed below are the major elements of a business plan. Match

them with their brief descriptions.
Elements of a Business Plan
other details market analysis financial plan description of business

contingency plans executive summary production plan description of
management and organization structure description of products and/or
services implementation schedule sales and marketing plan
1. __________
This is usually a twotofive page summary of the entire business
plan. It is an important part of the plan, in that it is designed to capture
the reader’s attention and create an interest in the company. It usually
includes the company’s mission statement and summarizes its competitive
advantages, sales and profit projections, financial requirements, plans to
repay lenders or investors, and the amount of financing requested.
2. __________
This section of a business plan includes not only a profile of the company,
but also a picture of the industry in which the company operates. Every
business operates within a specific context that affects its growth potential.
The data of the section may cover new products and developments in the
industry, trends and outlook for the industry, and overall economic trends.
48
3. __________
The goal of this section is to differentiate a company’s products or
services from those of the competition. It describes specific customer needs
that are uniquely met by the firm’s products or services. Product features
are translated into customer benefits. Product life cycles and their effects
on sales and marketing can be described. The company’s plans for a new
generation of products or services may also be included in this section.
4. __________
This section presents the strengths of the company’s management
team by highlighting relevant experience, achievements, and past per-
formance. Key areas include management’s ability to provide planning,
organizational skills, and leadership. The section also contains information
about the company’s ownership and work force. It may present an exist-
ing or planned organizational structure that will accomplish the goals set
forth in the business plan.
5. __________
It serves as the basis for a company’s sales and marketing plans and
generally covers the company’s competition, customers, products, and
market acceptance, its strengths and weaknesses, providing a basis for
discovering market opportunities. This section of the business plan pro-
vides a picture of who buys and uses the company’s products or services
and highlights how the latter satisfy previously unfulfilled market needs.
It also includes evidence of market acceptance of the company’s unique
products or services.
6. __________
This section delineates the methods and activities that will be em-
ployed to reach the company’s revenue goals. It describes the company’s
customer base, products or services, and marketing and sales programmes.
7. __________
It is usually included if the business is involved in manufacturing a
product and covers production options that are available to produce a
desired mix of products. In nonmanufacturing companies, this section
would cover new service development.
49
8. __________
This section covers the financing and cash flow requirements implicit
in other areas of the business plan. It contains projections of income, ex-
penses, and cash flow, as well as descriptions of budgeting and financial
controls. Financial projections must be supported by verifiable facts, such
as sales figures or market research. Monthly figures are generally given for
the first two years, followed by annual figures for the next three to eight
years. If the business plan is written for investors or lenders, the amount
of financing required may be included here or in a separate section.
9. __________
This section provides key dates pertaining to finance, marketing, and
production. It indicates when specific financing is needed, when specific
aspects of a particular marketing campaign will take place, and delivery
dates based on production schedules.
10. __________
This section defines problems and challenges that the company may
face and outlines plans for overcoming unforeseen obstacles that might
arise. Specific topics that may be explored are competitive responses, areas
of weakness or vulnerability, legal constraints, staffing, and continuity
of leadership.
11. other details

Most business plans include a table of contents and a cover sheet con-
taining basic information about the company. An appendix may include a
variety of documentation that supports different sections of the business
plan. Among the items that may be found in an appendix are footnotes
from the main plan, biographies, graphs and charts, copies of contracts
and agreements, and references.
6. Skills Focus
In groups, roleplay the following situation using the information

and vocabulary of the both texts.
You work in the marketing department of a company. Your team
was set a target to prepare a new strategic business plan. Each
50
member is responsible for one section of the plan. Do your part of

the work separately and then discuss the whole plan all together.
Choose a person to supervise the process and draw conclusions.
7. Writing
using 150–170 words. Add your personal commentary.

a) Разработке плана предшествует системное осмысление
ситуации, более четкая координация усилий фирмы, более
точная постановка задач, что должно привести к росту
сбыта и прибыли. Основными этапами планирования
являются стратегическое и тактическое.
b) Стратегическое планирование состоит из выработки
программы фирмы, формирование ее задач и целей,
анализа хозяйственного портфеля и перспективного
планирования роста организации.
c) Для обеспечения роста фирмы используются следующие
стратегии: интенсивного роста, интеграционного роста,
диверсификационного роста.
d) На основе стратегических планов фирма разрабатывает
тактические планы (планы маркетинга). Основными
разделами плана маркетинга являются: сводка контрольных
показателей, изложение текущей маркетинговой ситуации,
перечень опасностей и возможностей, перечень задач и
проблем, изложение стратегий маркетинга, программы
действий, бюджеты и порядок контроля.
e) Фирма использует три типа маркетингового контроля:
контроль за выполнением годовых планов; контроль
прибыльности; стратегический контроль.
Unit 6. Product
1. Leadin
1) Work in small groups and make a list of words and expressions

connected with a notion of Product.
2) How would you define the concept of a product.
3) Compare your definition with the one given below.
Product — An object or a service that is mass produced or manu-
factured on a large scale with a specific volume of units. A typical
example of a mass produced service is the hotel industry. A less obvi-
ous but ubiquitous mass produced service is a computer operating
system. Typical examples of a mass produced objects are the motor
car and the disposable razor.
2. Key Vocabulary
1) Before you read the text, make sure you know the following
words and phrases. Look up if necessary, give their Russian
equivalents:
1) tangible
2) intangible
3) a core product
4) to augment
5) durability
6) unsought goods
52
7) staple goods
8) impulse goods
9) processing
10) installations
2) Paraphrase the words and word expressions in English.
3. Reading
Scan the article that follows and highlight the factors according
to which a product can be classified.
Use the following introductory phrases:
I presume…; Presumingly…; As a matter of fact…; In a nutshell…
Product and Its Classifications

The first element in the marketing mix is the product. A product is
any combination of goods and services offered to satisfy the needs and
wants of consumers. Thus, a product is anything tangible or intangible
that can be offered for purchase or use by consumers. A tangible product
is one that consumers can actually touch, such as a computer. An intangi-
ble product is a service that cannot be touched, such as computer repair,
income tax preparation, or an office call. Other examples of products
include places and ideas. For example, the state tourism department in
New Hampshire might promote New Hampshire as a great place to visit
and by doing so stimulate the economy. Cities also promote themselves
as great places to live and work. For example, the slogan touted by the
Chamber of Commerce in San Bernardino, California, is “It’s a great day
in San Bernardino.” The idea of wearing seat belts has been promoted as a
way of saving lives, as has the idea of recycling to help reduce the amount
of garbage placed in landfills.
Typically, a product is divided into three basic levels. The first level is
often called the core product, what the consumer actually buys in terms of
benefits. For example, consumers don’t just buy trucks. Rather, consum-
ers buy the benefit that trucks offer, like being able to get around in deep
snow in the winter. Next is the second level, or actual product, that is built
around the core product. The actual product consists of the brand name,
53
features, packaging, parts, and styling. These components provided the

benefits to consumers that they seek at the first level. The final, or third,
level of the product is the augmented component. The augmented com-
ponent includes additional services and benefits that surround the first
two levels of the product. Examples of augmented product components
are technical assistance in operating the product and service agreements.
Products are classified by how long they can be used — durability —
and their tangibility. Products that can be used repeatedly over a long
period of time are called durable goods. Examples of durable goods include
automobiles, furniture, and houses. By contrast, goods that are normally
used or consumed quickly are called nondurable goods. Some examples
of nondurable goods are food, soap, and soft drinks. In addition, services
are activities and benefits that are also involved in the exchange process
but are intangible because they cannot be held or touched. Examples of
intangible services included eye exams and automobile repair.
Another way to categorize products is by their users. Products are
classified as either consumer or industrial goods. Consumer goods are
purchased by final consumers for their personal consumption. Final
consumers are sometimes called end users. The shopping patterns of
consumers are also used to classify products. Products sold to the final
consumer are arranged as follows: convenience, shopping, specialty, and
unsought goods. Convenience goods are products and services that con-
sumers buy frequently and with little effort. Most convenience goods are
easily obtainable and lowpriced, items such as bread, candy, milk, and
shampoo. Convenience goods can be further divided into staple, impulse,
and emergency goods. Staple goods are products, such as bread and milk
that consumers buy on a consistent basis. Impulse goods like candy and
magazines are products that require little planning or search effort because
they are normally available in many places. Emergency goods are bought
when consumers have a pressing need. An example of an emergency good
would be a shovel during the first snowstorm of the winter.
Shopping goods are those products that consumers compare during
the selection and purchase process. Typically, factors such as price, qual-
ity, style, and suitability are used as bases of comparison. With shopping
goods, consumers usually take considerable time and effort in gathering
information and making comparisons among products. Major appliances
such as refrigerators and televisions are typical shopping goods. Shop-
54
ping goods are further divided into uniform and nonuniform categories.
Uniform shopping goods are those goods that are similar in quality but
differ in price. Consumers will try to justify price differences by focusing
on product features. Nonuniform goods are those goods that differ in
both quality and price.
Specialty goods are products with distinctive characteristics or brand
identification for which consumers expend exceptional buying effort.
Specialty goods include specific brands and types of products. Typically,
buyers do not compare specialty goods with other similar products because
the products are unique. Unsought goods are those products or services
that consumers are not readily aware of or do not normally consider
buying. Life insurance policies and burial plots are examples of unsought
goods. Often, unsought goods require considerable promotional efforts on
the part of the seller in order to attract the interest of consumers.
Industrial goods are those products used in the production of other
goods. Examples of industrial goods include accessory equipment, com-
ponent parts, installations, operating supplies, raw materials, and services.
Accessory equipment refers to movable items and small office equipment
items that never become part of a final product. Office furniture and
fax machines are examples of accessory equipment. Component parts
are products that are turned into a component of the final product that
does not require further processing. Component parts are frequently
custommade for the final product of which they will become a part. For
example, a computer chip could be produced by one manufacturer for use
in computers of other manufacturers. Installations are capital goods that
are usually very expensive but have a long useful life. Trucks, power gen-
erators, and mainframe computers are examples of installations. Operating
supplies are similar to accessory equipment in that they do not become
part of the finished product. Operating supplies include items necessary
to maintain and operate the overall firm, such as cleaners, file folders,
paper, and pens. Raw materials are goods sold in their original form before
being processed for use in other products. Crops, crude oil, iron ore, and
logs are examples of raw materials in need of further processing before
being used in products. The last category of industrial goods is services.
Organizations sometimes require the use of services, just as individuals
do. Examples of services sought by organizations include maintenance
and repair and legal counsel.
55
1) What ways of introducing...

a. an example
b. classification
c. addition
d. contrast
e. chronological order
... can you find in the text?

a) How do tangible and intangible products differ?
b) Which levels does a product pass on its way to the final stage?
c) How are products classified by their durability?
d) Which categories do products fall into by their users?
e) How can shopping goods be categorized?
f) What do industrial goods include?
1) Find words or phrases in the text which mean the following:
1. A product that can be touched is called….

2. A product that can’t be touched is called….
3. The first level of a product is called …
4. The second level of a product is called ….
5. The third level of a product is called …
6. Products that can be used repeatedly over a long period of time
are called …
7. Goods that are normally used or consumed quickly are called
….
8. Final consumers are sometimes called …
9. Products and services that consumers buy frequently and with
little effort are called …
10. Products that consumers buy on a consistent basis are called …
11. Products that require little planning or search effort are called
…
56
12. Products that are bought when consumers have a pressing

need are called …
13. Products that consumers compare during the selection and
purchase process are called …
14. Products with distinctive characteristics or brand identifica-
tion for which consumers expend exceptional buying effort are
called …
15. Products used in the production of other goods are called …
16. Movable items and small office equipment items that never
become part of a final product are called …
17. Capital goods that are usually very expensive but have a long
useful life are called …
18. Products that are turned into a component of the final product
that does not require further processing are called …
19. Goods that are sold in their original form before being proc-
essed are called …
6. Skills Focus
Use the prompts and charts below in Russian and write a paragraph
in English about a Product, give examples to each item. Exploit
introductory expressions and link words.
• Все, что может быть предложено рынку на продажу, для

потребления, что привлекает внимание
• Все, что удовлетворяет определенные потребности. Это могут
быть в любой комбинации:
Физические продукты;
Услуги. Консультации, обучение;
Место: удобный офис, WEBсайт;
Организации: клуб клиентов компании;
Идеи: дополнительные услуги — прямая телефонная линия;
Люди: обслуживающий персонал;
• Идея как продукт. Продукт не обязательно должен быть
физическим объектом.
Например, «продукт» — идея защиты животных.
57
Уровни товара или услуги
Свойства продукта
Экспл. характеристики и удовлетво-

Качество ренность. Характеризуется уровнем
и стабильностью.
Дизайн Внешний вид и образ продукта.
Отличают продукт от других.

Функции Придают дополнительную ценность
продукту.
58
Суть и характеристики услуг
Неосязаемость Неотдели-
Для покупателя мость
нельзя увидеть, Невозмож-
услышать, по- ность отделить
чувствовать услугу от ее
вкус, запахи т.д. провайдера
Услуга
Изменчивость Несохраняе-
Качество услуги мость
зависит от того, Услугу нель-
кто оказывает, зя сохранить,
когда, где и как чтобы «потом»
использовать
или продать
Unit 7. Pricing
1. Leadin

a) What is necessary to know for setting a price?
b) How can a seller find out that the established price suits the
customers?
c) What may help a seller advance the price without losing some
potential consumers?
2) In pairs, discuss which pricing strategy would you choose for
your business: high, medium, low prices? Why? What advan-
tages and disadvantages does each approach have?
It’s a well known fact that…; Though I can’t say for sure I think…;
I have no doubts that…
2. Key Vocabulary
1) an entrepreneur
2) to eliminate
3) fringe benefits
4) overhead costs
5) depreciation
60
6) rental or leasing costs

7) membership dues
8) fixed and variable expenses
9) an attorney
10) utilities
11) delivery and freight charges
12) gross profit margin
13) equation
14) to gauge

3. Reading
Read the article and say which of the cost factors given you con-
sider the most important one. Discuss your ideas in pairs.
Use the following introductory phrases or alike:
I assume that…; As I see it,…; In my humble opinion, ….
Intelligent Pricing
Intelligent pricing is one of the most important elements of any
successful business venture. Yet many entrepreneurs fail to educate
themselves adequately about various pricing components and strategies
before launching a new business. Smart business owners will weigh many
marketplace factors before setting prices for their goods and services.
Cost Factors and Pricing

There are four primary cost factors that need to be considered by
businesses when determining the prices that they charge for their goods
or services. After all, price alone means little if it is not figured within the
context of operating costs. A company may be able to command a hefty
price for an item, only to find that the various costs of producing and
delivering that item eliminate most or all of the profit that it realizes on
61
the sale. It should also be noted that service businesses often find it more
difficult to accurately gauge their costs. A freelance copyeditor may find
that one 2,500word article takes twice as long to complete as another
article of the same size because of differences in quality that are often
difficult to anticipate ahead of time.
Labour Costs. Labour costs consist of the cost of the work that goes
into the manufacturing of a product or the execution of a service. Direct
labour costs can be figured by multiplying the cost of labour per hour
by the number of employeehours required to complete the job. Busi-
ness owners, however, need to keep in mind that the ‘‘cost of labour per
hour’’ includes not only hourly wage or salary of the relevant employees,
but also the costs of the fringe benefits that those workers receive. These
fringe benefits can include social security, retirement benefits, insurance,
unemployment compensation, workers compensation, and other benefits.
Material Costs. Material costs are the costs of all materials that are
part of the final product offered by the business. As with labour, this ex-
pense can apply to both goods and services. In the case of goods, material
costs refer to the costs of the various components that make up a product,
while material costs associated with services rendered typically include
replacement parts, building parts, etc. A deck builder, for example, would
include such items as lumber, nails, and sealer as material costs.
Overhead Costs. Overhead costs are costs that cannot be directly

attributed to one particular product or service. Some business consult-
ants simply refer to overhead costs as those business expenses that do
not qualify as labour costs or material costs. These costs include indirect
expenses such as general supplies, heating and lighting expenditures,
depreciation, taxes, advertising, rental or leasing costs, transportation,
employee discounts, damaged merchandise, business memberships, and
insurance. A certain percentage of employees usually fit in this category
as well. While the wages and benefits received by an assembly line worker
involved in the production of a specific product might well qualify as a
labour cost, the wages and benefits accrued by general support person-
nel — janitors, attorneys, accountants, clerks, human resource personnel,
receptionists — are included as overhead.
62
Overhead expenses are typically divided into two categories — fixed

expenses and variable expenses. Fixed expenses are regular (usually
monthly) expenses that will not change much, regardless of a company’s
business fortunes. Examples of fixed expenses include rent, utilities, insur-
ance, membership dues, subscriptions, accounting costs, and depreciation
on fixed assets. Variable expenses are those expenses that undergo greater
fluctuation, depending on variables such as time of year (for seasonal busi-
nesses), competitor advertising, and sales. Expenses that are more heavily
predicated on company revenues and business owner strategies include
office supplies, mailing and advertising, communications (telephone and
Fax bills), and employee bonuses.
Cost of Goods Sold. This figure is in essence the business’s total cost
of manufacturing the products it sells or — in the case of retail firms — its
total expenditures to purchase products for resale. Delivery and freight
charges are typically included within this equation. Cost of goods sold
provides business owners with a rough measurement of their gross profit
margin. The figure usually bears a close relationship to sales, but it may
vary significantly if increases in the prices paid for merchandise cannot
be offset by increases in sales prices, or if profit margins swell because of
special purchase deals or sudden surges in product popularity.

a) What is “intelligent pricing”? Why is it crucial for businesses?
b) How many primary cost factors should businesses consider
when determining the prices to charge for their goods or serv-
ices?
c) What examples of fixed and variable expenses can you give?
d) Why do service businesses often find it more difficult to ac-
curately gauge their costs?
2) In small groups, discuss what other cost factors can be added

to the list above. Support your suggestions by explanations
and examples.
63

verb noun adjective
associate
retirement
deliver
rental
communication
fixed
include
regular
2) Give all possible synonyms and antonyms to the following

words:
a) expenses
b) to employ
c) fixed
d) a buyer
e) to keep in mind
f) to increase
3) Here are some main types of market research. Match them with
the descriptions below.
costplus pricing odd pricing pricing below competition price bundling
price lining competitive pricing manufacturer’s suggested retail price
pricing above competition multiple pricing
Pricing Strategies
Businesses have many different pricing strategies from which they

can choose, but they need to select carefully. An illconsidered decision
can place a heavy burden on the business.
64
1) _________ Many businesses prefer to simply price their goods

in accordance with the manufacturer’s suggestion. They thus eliminate
costs associated with making their own pricing decisions or pursuing more
proactive pricing strategies. Critics note, however, that this strategy is
utterly heedless of the competition, which may be able to offer a lower
price for any number of reasons.
2) _________ This is the practice of giving the customers the op-

tion of buying several items or services for one price. A furniture retailer,
for example, might offer customers a sofa and love seat combination at
a price that is somewhat lower than what the two goods would cost if
bought separately. The cost structure of most service companies is such
that providing an additional service costs less than providing the second
service alone. The second benefit of this strategy that appeals to custom-
ers is purchasing related services from one service provider. They can
save time and money by interacting with and paying one provider rather
than multiple providers. Thirdly, such approach effectively increases the
number of connections a service company has with its customers.
3) _________ Similar to price bundling, it is the practice of selling

multiple units of an item for a single price. A grocery store that offers two
boxes of macaroni and cheese at a single price, for instance, is engaged in
multiple pricing. Whereas price bundling is more commonly employed for
bigticket items, this approach is usually used to sell inexpensive consum-
able items such as razor blades, shampoo, household cleaning products,
and food and beverages.
4) _________ This methodology, popular with manufacturers, in-

volves adding together all labour, material, and overhead costs and then
adding the desired profit.
5) _________ Some business owners choose to base their own

prices on the prices of their principal competitors. Business owners who
choose to follow this course, however, should make sure that they look
at competing businesses of similar size and strength. It is very chancy to
compete with a large store’s prices, because they can buy in larger volume
and their cost per unit will be less. This strategy among serviceoriented
businesses, meanwhile, is a hazier proposition, since the nature and quality
65
of services offered can vary so widely from business to business. Still, it

is often employed, if only as a general pricing guideline.
6) _________ In settings in which price is not the customer’s most

important consideration some businesses can do quite well employing
this strategy. The key to making it work, say experts, is to provide cus-
tomers with added benefits that justify paying the higher price. These
benefits can take the form of: (1) convenient or exclusive location; (2)
social status; (3) exclusive merchandise; and (4) high level of service.
The latter can take the form of home or office delivery of goods, service
and/or product knowledge, speed of service, attractive return policies,
and friendly atmosphere.
Some business owners also boost prices in markets that have few
competitors, reasoning that the community has little choice but to buy
from their businesses. Such prices rarely reach outrageous levels, but they
can become sufficiently high that enterprising entrepreneurs will recog-
nize an opportunity to undercut the business with more inexpensively
priced goods or services.
7) _________ This is the practice of setting one’s prices below those

of its competitors. Commonly employed by major discount chains such as
WalMart — which can do so because its purchasing power enables it to
save on its costs per unit — this strategy can also be effectively used by
smaller businesses in some instances, provided they keep their operating
costs down and do not spark a price war. Indeed, the smaller profit mar-
gins associated with this pricing strategy make it a practical necessity for
participating companies to: exercise tight control over inventory; keep
labour costs down; keep major operational expenses such as facility leases
and equipment rental under control; obtain good prices from suppliers;
and make effective use of its pricing strategy in all advertising.
8) _________ Companies that engage in this practice are basically

hoping to attract a specific segment of the community by only carrying
products within a specified price range. This strategy is often employed
by businesses whose goods/services or location are likely to attract
upscale buyers, though others use it as well. Advantages sometimes ac-
crued through such practices include: reduced inventory and storage
costs, ease of merchandise selection, and enhanced status. Analysts note,
66
however, that this strategy frequently limits the company’s freedom to

react to competitors’ pricing strategies, and that it can leave businesses
particularly vulnerable to economic trends.
9) _________ Another possible name for this strategy is “off even

pricing”. It is used in nearly all segments of the business world today. It is
the practice of pricing goods and services at prices such as $9.95 (rather
than $10) or $79.99 (rather than $80) because of the conviction that
consumers will often round the price down rather than up when weighing
whether to make a purchase. This little morsel of pricing psychology has
become so universally employed that many observers question its value.
Other commonly used pricing policies include penetration pricing

and skimming pricing (for manufacturers) and loss leader pricing (for
retailers).
6. Skills Focus
You are members of The Board of Directors. The time to reconsider
your pricing strategy has come. The negative fact is that the previous
month your company lost 20 per cent of profit and registered a 15 per
cent decrease of patrons (permanent consumers). Let some student
supervise the process and make conclusions. Choose one more student
to be responsible for the background data (only they will know the
real causes of the recession) Your task is to find out the possible rea-
sons for these losses (by asking the responsible student some proper
textbased questions) and argue a new pricing policy. Each student
should select one or two possible strategies and prove their efficiency.
Discuss all the given suggestions together.
7. Writing
Write a summary covering the information of the both texts, using
150–170 words. Add your personal commentary.
67
Unit 8. Distribution
1. Leadin
1) How would you explain the word “distribution”? What do you

think it means in economy and marketing in particular? Suggest
your own definitions.
2) Work in small groups and discuss:
a) the role of distribution in marketing;
b) who distributes and what;
c) how can distribution contribute to successful business;
d) what can inefficient distribution cause.
Employ such introductory expressions as:
In fact…; It’s an open secret that…; It ran through my mind that ….
2. Key Vocabulary
1) a wholesaler
2) a retailer
3) distribution networks
4) an outlet
5) logistics
6) failure
7) an intermediary
8) negotiation
9) a jobber
10) to fulfill orders
11) to forge better relationships with smb
68


3. Reading
Read the first part of the text about distribution channels and find
the answers to the following questions:
a) What is a distribution channel? What does it consist of?
b) How many distribution channels does a business need? What
does it depend on?
c) What is distributed through the channels?
Make use of the following expressions:

As far as … is concerned; At all hazards…; Frankly speaking, ... ;
As a matter of fact,...
Distribution Channels
Distribution channels move products and services from businesses

to consumers and to other businesses. Also known as marketing channels,
channels of distribution consist of a set of interdependent organizations
— such as wholesalers, retailers, and sales agents — involved in making a
product or service available for use or consumption. Distribution channels
are just one component of the overall concept of distribution networks,
which are the real, tangible systems of interconnected sources and desti-
nations through which products pass on their way to final consumers. As
Howard J. Weiss and Mark E. Gershon noted in “Production and Opera-
tions Management,” a basic distribution network consists of two parts: (1)
a set of locations that store, ship, or receive materials (such as factories,
warehouses, retail outlets); and (2) a set of routes (land, sea, air, satellite,
cable, Internet) that connect these locations.
Distribution networks may be classified as either simple or complex. A
simple distribution network is one that consists of only a single source of
supply, a single source of demand, or both, along with fixed transportation
69
routes connecting that source with other parts of the network. In a simple
distribution network, the major decisions for managers to make include
when and how much to order and ship, based on internal purchasing and
inventory considerations.
In short, distribution describes all the logistics involved in delivering
a company’s products or services to the right place, at the right time, for
the lowest cost. In the unending efforts to realize these goals, the chan-
nels of distribution selected by a business play a vital role in this process.
Wellchosen channels constitute a significant competitive advantage, while
poorly conceived or chosen channels can doom even a superior product
or service to failure in the market.
Multiple Channels of Distribution

For many products and services, their manufacturers or providers
use multiple channels of distribution. A personal computer, for example,
might be bought directly from the manufacturer, either over the telephone,
direct mail, or the Internet, or through several kinds of retailers, including
independent computer stores, franchised computer stores, and department
stores. In addition, large and small businesses may make their purchases
through other outlets.
Channel structures range from two to five levels. The simplest is a
twolevel structure in which goods and services move directly from the
manufacturer or provider to the consumer. Twolevel structures occur
in some industries where consumers are able to order products directly
from the manufacturer and the manufacturer fulfills those orders through
its own physical distribution system. In a threelevel channel structure
retailers serve as intermediaries between consumers and manufacturers.
Retailers order products directly from the manufacturer, then sell those
products directly to the consumer. A fourth level is added when manu-
facturers sell to wholesalers rather than to retailers. In a fourlevel struc-
ture, retailers order goods from wholesalers rather than manufacturers.
Finally, a manufacturer’s agent can serve as an intermediary between the
manufacturer and its wholesalers, creating a fivelevel channel structure
consisting of the manufacturer, agent, wholesale, retail, and consumer lev-
els. A fivelevel channel structure might also consist of the manufacturer,
wholesale, jobber, retail, and consumer levels, whereby jobbers service
smaller retailers not covered by the large wholesalers in the industry.
70
What Flows Through the Channels

Members of channels of distribution typically buy, sell, and transfer
title to goods. There are, however, many other flows between channel
members in addition to physical possession and ownership of goods.
These include promotion flows, negotiation flows, financing, assuming
risk, ordering, and payment. In some cases the flow is in one direction,
from the manufacturer to the consumer. Physical possession, ownership,
and promotion flow in one direction through the channels of distribution
from the manufacturer to the consumer. In other cases there is a twoway
flow. Negotiation, financing, and the assumption of risk flow in both
directions between the manufacturer and the consumer. Ordering and
payment are channel flows that go in one direction from the consumer
to the manufacturer.
There are also a number of support functions that help channel mem-
bers perform their distribution tasks. Transportation, storage, insurance,
financing, and advertising are tasks that can be performed by facilitating
agencies that may or may not be considered part of the marketing chan-
nel. From a channel management point of view, it may be more effective
to consider only those institutions and agencies that are involved in the
transfer of title as channel members. The other agencies involved in sup-
porting tasks can then be described as an ancillary or support structure.
The rationale for separating these two types of organizations is that they
each require different types of management decisions and have different
levels of involvement in channel membership.
Effective management of the channels of distribution involves forging
better relationships among channel members. With respect to the task of
distribution, all of the channel members are interdependent. Relation-
ships between channel members can be influenced by how the channels
are structured. Improved performance of the overall distribution system
is achieved through managing such variables as channel structure and
channel flows.
4. Сomprehension Check
1) Find in the text the words which mean the following:

a) the management of materials flow through an organization,
ranging from raw materials to finished goods;
71
b) a market for a product or service;

c) a person who acts on behalf of another person, group, business,
etc.; representative;
d) the members of the executive group or administration of an
organization or business;
e) a person who acquires goods and services for their own personal
needs;
f) a discussion set up or intended to produce a settlement or
agreement;
g) an act, system, or business providing financial protection for
property, life, health, etc., against specified contingencies,
such as death, loss, or damage, and involving payment of
regular premiums in return for a policy to guarantee protec-
tion.
2) Discuss the following statements, illustrating your arguments

with examples:
a) Effective management of the channels of distribution involves
forging better relationships among channel members.
b) Channel structures range from two to five levels.
c) Wellchosen channels constitute a significant competitive
advantage, while poorly conceived or chosen channels can
doom even a superior product or service to failure in the
market.
3) Say whether these statements are true or false. Correct the

false statements.
a) Distribution networks are just one component of the overall
concept of distribution channels, which are the real, tangible
systems of interconnected sources and destinations through
which products pass on their way to final consumers.
b) Channel structures range from one to four levels.
c) Ordering and payment are channel flows that go in one direc-
tion from the consumer to the manufacturer.
d) Distribution networks may be classified as either simple or
complex.
72
1) Fill in the table. Use the words of the key vocabulary and some
to you.
distribu- the division распро- arrange- distribute,

tion of the total странение, ment, alloca- distribu-
income of a продажа tion tor, dis-
community через канал tributable,
among its сбыта, distributary,
members; поставка, distributed,
arrangement внедрение; distributing,
or location распределе- distribution-
ние al, distribu-
tive
1, 2, 3,...
2) Read the second part of the text about distribution channels

and think of 4–5 questions (for each paragraph) on its contents,
then let your partner answer them.
Selecting Channels for a Business

Given the importance of distribution channels — along with the
limited resources generally available to businesses — it is particularly
important for entrepreneurs to make a careful assessment of their chan-
nel alternatives. In evaluating possible channels, it may be helpful first
to analyze the distribution channels used by competitors. This analysis
may reveal that using the same channels would provide the best option,
or it may show that choosing an alternative channel structure would give
the business a competitive advantage. Other factors to consider include
the company’s pricing strategy and internal resources. As a general rule,
as the number of intermediaries included in a channel increase, producers
lose a greater percentage of their control over the product and pay more to
compensate each participating channel level. At the same time, however,
more intermediaries can also provide greater market coverage.
Among the many channels a business owner can choose from are:
direct sales (which provides the advantage of direct contact with the
73
consumer); original equipment manufacturer (OEM) sales (in which a

business’s product is sold to another company that incorporates it into a
finished product); manufacturer’s representatives (salespeople operating
out of agencies that handle an assortment of complimentary products);
wholesalers (which generally buy goods in large quantities, warehouse
them, then break them down into smaller shipments for their customers
— usually retailers); brokers (who act as intermediaries between produc-
ers and wholesalers or retailers); retailers (which include independent
stores as well as regional and national chains); and direct mail. Ideally, the
distribution channels selected by a business owner should be close to the
desired market, able to provide necessary services to buyers, able to handle
local advertising and promotion, experienced in selling compatible product
lines, solid financially, cooperative, and reputable.
Since many businesses, especially new ones, lack the resources to
hire, train, and supervise their own sales forces, sales agents and brokers
are a common distribution channel. Many businesses consign their output
to an agent, who might sell it to various wholesalers, one large distribu-
tor, or a number of retail outlets. In this way, an agent might provide a
new business with access to channels it would not otherwise have had.
Moreover, since most agents work on a commission basis, the cost of sales
drops when the level of sales drops, which provides businesses with some
measure of protection against economic downturns. When selecting an
agent, an entrepreneur should look for one who has experience with desired
channels as well as with closely related — but not competitive — products.
Other channel alternatives can also offer benefits to businesses. For
example, by warehousing goods, wholesalers can reduce the amount of
storage space needed by manufacturers. They can also provide national
distribution that might otherwise be out of reach for an entrepreneur.
Selling directly to retailers can be a challenge for business owners. In-
dependent retailers tend to be the easiest market for entrepreneurs to
penetrate. The merchandise buyers for independent retailers are most
likely to get their supplies from local distributors, can order new items
on the spot, and can make adjustments to inventory themselves.
Mediumsized retail chains often do their buying through a central
office. In order to convince the chain to carry a new product, an entrepre-
neur must usually make a formal sales presentation with brochures and
samples. Once an item makes it onto the shelf, it is required to produce
a certain amount of revenue to justify the space it occupies, or else it will
74
be dropped in favour of a more profitable item. National retail chains,

too, handle their merchandise buying out of centralized offices and are
unlikely to see entrepreneurs making cold sales calls. Instead, they usu-
ally request a complete marketing programme, with anticipated returns,
before they will consider carrying a new product. Once an item becomes
successful, however, these larger chains often establish direct computer
links with producers for replenishment.
3) Complete the sentences below with a word or word combina-

tion from the box.
copyright franchise agreement independent distributors commission agents
patent sales force shelf space sole distribution agreement
a) Agents who receive a percentage of the sales are ___________.

b) An agreement to sell only one manufacturer’s goods is cal-
led ______________.
c) All the people involved in selling a company’s goods or services
are ___________.
d) People who buy from companies and sell to retailers are
called __________.
e) A licence registering an invention and protecting ownership is
called _________.
f) The amount of space given over in a shop for displaying a particular
product is _______.
g) An agreement to pay a licence fee to use a wellknown name
is __________.
h) Ownership of the reproduction rights of intellectual property is
protected by _________.
6. Skills Focus
You work in the marketing department of a newly established
company. Your team was set a target to think of possible distribu-
tion channels for the business.
Distribute the roles within your group of students. Choose a person
to supervise the process and draw conclusions. Brainstorm a kind of
75
distribution network it should be, what will be distributed and how.

Then each student should select a net of possible channels and reason
its efficiency. Discuss all the given suggestions together.
7. Writing

using 150–170 words. Add your personal commentary.
Фирма, выступающая на международном рынке, должна обяза-

тельно комплексно рассматривать проблемы доведения своих товаров
до конечных потребителей. На рис. 1 представлено три основных
связующих звена между продавцом и конечным покупателем. Первое
звено — штабквартира организации продавца, которая осуществля-
ет контроль за работой каналов распределения и в то же время сама
является частью этих каналов. Второе звено — межгосударственные
каналы — обеспечивает доставку товаров до границ зарубежных стран.
Третье звено — внутригосударственные каналы — обеспечивает до-
ставку товаров из пунктов пересечения границы иностранного госу-
дарства до конечных потребителей. Слишком многие американские
производители считают свою миссию законченной, как только товар
выходит из их рук. А им следует более внимательно следить за тем,
что происходит с этим товаром в процессе его движения внутри ино-
странного государства.
Продавец Служба между- Межгосу- Внутри Конечные

народного дар государ- пользова-
 маркетинга в  ственные  ственные  тели или
штабквартире каналы каналы покупатели
продавца
Рис. 1. Общая структура канала распределения при международном маркетинге
Внутригосударственные каналы распределения разных стран во

многом отличаются друг от друга. Существуют большие различия в
численности и типах посредников, обслуживающих каждый отдель-
ный зарубежный рынок.
76
Unit 9. Sales Promotion
1. Leadin
a) What is promotion in general terms? Can you suggest what is
the role of promotion as a part of marketing?
b) What may be promoted?
c) Have you ever tried to promote something? Do you consider
it difficult? Useful?
d) Can a company do without promotion? Why?
2) What do companies do to promote their goods and services? In
small groups, think over and make a list of possible means and
ways of sales promotion. Point out their advantages and disad-
vantages (if there are any). Add your arguments and examples.
The first point to make is that …
The next point is that …
Initially …
The way I see it …
From what I know …
It‘s absolutely true that …
If I remember correctly …
2. Key Vocabulary
1) target customers/audience
2) rebates
77
3) a product life cycle

4) to require handson demonstration
5) to get rapid feedback on the results of promotions
6) to be a cure for
7) maturity
8) to focus on shortterm results
9) in the short term
10) to milk


3. Reading
Read the text and suggest a heading for each paragraph to make
a plan. Then give a summary of the text using the plan.
Sales Promotion
Sales promotion is an important component of a business’s overall

marketing strategy, along with advertising, public relations, and personal
selling. The American Marketing Association (AMA) defines sales promo-
tion as ‘‘media and nonmedia marketing pressure applied for a predeter-
mined, limited period of time in order to stimulate trial, increase consumer
demand, or improve product quality.’’ But this definition does not capture
all the elements of modern sales promotion. One should add that effective
sales promotion increases the basic value of a product for a limited time
and directly stimulates consumer purchasing, selling effectiveness, or the
effort of the sales force. It can be used to inform, persuade, and remind
target customers about the business and its marketing mix. Some common
types of sales promotion include samples, coupons, sweepstakes, contests,
instore displays, trade shows, priceoff deals, premiums, and rebates.
78
Businesses can target sales promotions at three different audiences:

consumers, resellers, and the company’s own sales force. Sales promotion
acts as a competitive weapon by providing an extra incentive for the target
audience to purchase or support one brand over another. It is particularly
effective in spurring product trial and unplanned purchases. Most market-
ers believe that a given product or service has an established perceived
price or value, and they use sales promotion to change this price value re-
lationship by increasing the value and/or lowering the price. Compared to
some other components of the marketing strategy (advertising, publicity,
and personal selling), sales promotion usually operates on a shorter time
line, uses a more rational appeal, returns a tangible or real value, fosters
an immediate sale, and contributes highly to profitability.
In determining the relative importance to place on sales promotion in
the overall marketing strategy, a business should consider its marketing
budget, the stage of the product in its life cycle, the nature of competi-
tion in the market, the target of the promotion, and the nature of the
product. For example, sales promotion and direct mail are particularly
attractive alternatives when the marketing budget is limited, as it is for
many small businesses. In addition, sales promotion can be an effective
tool in a highly competitive market, when the objective is to convince
retailers to carry a product or influence consumers to select it over those
of competitors. Similarly, sales promotion is often used in the growth
and maturity stages of the product life cycle to stimulate consumers and
resellers to choose that product over the competition — rather than in
the introduction stage, when mass advertising to build awareness might
be more important. Finally, sales promotion tends to work best when it
is applied to impulse items whose features can be judged at the point of
purchase, rather than more complex, expensive items that might require
hands on demonstration.
Sales promotion has grown substantially in recent years. There are

several reasons for this dramatic growth. First, consumers have accepted
sales promotion as part of their buying decision criteria. It provides re-
luctant decision makers with an incentive to make choices by increasing
the value offered by a particular brand. Second, the increasing tendency
of businesses to focus on short term results has helped spur growth in
sales promotion, which can provide an immediate boost in sales. Product
79
managers also tend to view sales promotion as a way to differentiate their

brand from that of competitors in the short term. Third, the emergence of
computer technology has enabled manufacturers to get rapid feedback on
the results of promotions. Redemption rates for coupons or figures on sales
volume can be obtained within days. Finally, an increase in the size and
power of retailers has also boosted the use of sales promotion. Histori-
cally, the manufacturer held the power in the channel of distribution.
Mass marketers utilized national advertising to get directly to consumers,
creating a demand for the heavily advertised brands that stores could
not afford to ignore. With consolidation and the growth of major retail
chains, however, retailers have gained the power to demand incentives
from manufacturers to carry their products. Many sales promotions are
designed to provide benefits to the retailers.
Although sales promotion is an important strategy for producing

quick, shortterm, positive results, it is not a cure for a bad product, poor
advertising, or an inferior sales team. After a consumer uses a coupon for
the initial purchase of a product, the product must then take over and
convince them to become repeat buyers. In addition, sales promotion ac-
tivities may bring several negative consequences, including ‘‘clutter’’ due
to the number of competitive promotions. New approaches are promptly
cloned by competitors, as each marketer tries to be more creative, more
attention getting, or more effective in attracting the attention of consum-
ers and the trade. Finally, consumers and resellers have learned how to
milk the sales promotion game. Consumers may wait to buy certain items
knowing that prices will eventually be reduced, for example, while resellers
have become experts at negotiating deals and manipulating competitors
against one another.
1) Reread the first paragraph and give a possible definition for

sales promotion.

a) What are the three different audiences businesses can target
sales promotions at?
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b) What is the difference between sales promotions and some

other components of the marketing strategy, such as advertis-
ing, publicity, and personal selling?
c) What are the reasons for the growth of sales promotion in
recent years?
d) May there be any negative consequences of sales promotion?
3) Find the words in the text which mean the following:

a) the return;
b) the four stages (introduction, growth, maturity, and decline)
into one of which the sales of a product fall during its market
life;
c) a standard by which something can be judged or decided;
d) test or experiment;
e) a particular longterm plan for success, esp. in business or
politics;
f) a refund of a fraction of the amount payable or paid, as for
goods purchased in quantity; discount.
to you.
rapid performed быстрый, fast, prompt, slow rapidity,

or occur- скорый, quick rapids
ring during стреми-
a short inter- тельный
val of time;
quick
1, 2, 3,...
2) Complete the crossword with the words from the key vocabu-
lary and both texts.
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Across
1. a deduction from the full amount of a price or debt, as in return
for prompt payment or to a special group of customers;
2. a motivating influence; stimulus;
3. the desirability of a thing, often in respect of some property such
as usefulness or exchangeability: worth, merit, or importance;
4. encouragement of the sale by advertising or securing financial
support;
6. a commission or instruction to produce or supply something in
return for payment;
8. a business owner who buys and sells goods on a large scale.
Down
5. a detachable part of a ticket or advertisement entitling the holder
to a discount, free gift, etc;
7. the act or an instance of trying or proving; test or experiment.
3) Read the second part of the text about sales promotion and
fulfil the following tasks:
a) Say which of the given techniques of consumer and trade
promotion you think are the most crucial for a successful
business. Support your ideas with explanation and exam-
ples.
b) Think of 4–5 questions (for each paragraph) on the contents
of the text, then let your partner answer them.
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Consumer Promotions
Consumer sales promotions are steered toward the ultimate prod-

uct users — typically individual shoppers in the local market — but the
same techniques can be used to promote products sold by one business
to another, such as computer systems, cleaning supplies, and machinery.
In contrast, trade sales promotions target resellers — wholesalers and
retailers — who carry the marketer’s product.
Following are some of the key techniques used in consumeroriented
sales promotions.
Price Deals. A consumer price deal saves the buyer money when
a product is purchased. The main types of price deals include discounts,
bonus pack deals, refunds or rebates, and coupons. Price deals are usually
intended to encourage trial use of a new product or line extension, to re-
cruit new buyers for a mature product, or to convince existing customers
to increase their purchases, accelerate their use, or purchase multiple units.
Price deals work most effectively when price is the consumer’s foremost
criterion or when brand loyalty is low.
Special Events. According to the consulting firm International

Events Group (IEG), businesses spend over $2 billion annually to
link their products with everything from jazz festivals to golf tourna-
ments to stock car races. In fact, large companies like RJR Nabisco and
AnheuserBusch have special divisions that handle nothing but special
events. Special events marketing offers a number of advantages. First,
events tend to attract a homogeneous audience that is very appreciative
of the sponsors. Therefore, if a product fits well with the event and its
audience, the impact of the sales promotion will be high. Second, event
sponsorship often builds support among employees — who may receive
acknowledgment for their participation — and within the trade. Finally,
compared to producing a series of ads, event management is relatively
simple.
Premiums. A premium is tangible compensation that is given as

incentive for performing a particular act — usually buying a product.
The premium may be given for free, or may be offered to consumers for a
significantly reduced price.
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Continuity Programmes. Continuity programmes retain brand us-

ers over a long time period by offering ongoing motivation or incentives.
Continuity programmes demand that consumers keep buying the product
in order to get the premium in the future. By rewarding longstanding
customers for their loyalty, continuity programmes also reduce the threat
of new competitors entering a market.
Sampling. A sign of a successful marketer is getting the product

into the hands of the consumer. Sometimes, particularly when a product
is new or is not a market leader, an effective strategy is giving a sample
product to the consumer, either free or for a small fee. But in order for
sampling to change people’s future purchase decisions, the product must
have benefits or features that will be obvious during the trial.
Trade Promotions
A trade sales promotion is targeted at resellers — wholesalers and

retailers — who distribute manufacturers’ products to the ultimate
consumers. In general, trade sales promotions hope to accomplish four
goals: (1) Develop instore merchandising support, as strong support at
the retail store level is the key to closing the loop between the customer
and the sale. (2) Control inventory by increasing or depleting inventory
levels, thus helping to eliminate seasonal peaks and valleys. (3) Expand or
improve distribution by opening up new sales areas (trade promotions are
also sometimes used to distribute a new size of the product). (4) Generate
excitement about the product among those responsible for selling it.
Some of the most common forms of trade promotions are profiled
below.
Pointofpurchase Displays. Manufacturers provide

pointofpurchase (POP) display units free to retailers in order to pro-
mote a particular brand or group of products. The forms of POP displays
include special racks, display cartons, banners, signs, price cards, and
mechanical product dispensers. High product visibility is the basic goal
of POP displays. POP displays also provide or remind consumers about
important decision information, such as the product’s name, appearance,
and sizes. The theme of the POP display should coordinate with the theme
used in ads and by salespeople.
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Trade Shows. Thousands of manufacturers display their wares and

take orders at trade shows. Trade shows provide a major opportunity
to write orders for products. They also provide a chance to demonstrate
products, disseminate information, answer questions, and be compared
directly to competitors.
Deal Loaders. A deal loader is a premium given by a manufacturer

to a retailer for ordering a certain quantity of product. Two types of deal
loaders are most typical. The first is a buying loader, which is a gift given
for making a specified order size. The second is a display loader, which
means the display is given to the retailer after the campaign.
Trade Deals. Trade deals are special price concessions superseding, for
a limited time, the normal purchasing discounts given to the trade. Trade
deals include a group of tactics having a common theme — to encourage
sellers to specially promote a product. The marketer might receive special
displays, largerthanusual orders, superior instore locations, or greater
advertising effort. In exchange, the retailer might receive special allow-
ances, discounts, goods, or money.
6. Skills Focus
You work in the marketing department of a newly established
company. Your team was asked to think of possible promotion
strategies for the business.
Choose a person to supervise the process and draw conclusions.
Together in the group, think what kind of promotion it should be,
what will be promoted and how. Then each student should select a
group of possible promotion techniques and reason its efficiency.
Discuss all the given suggestions together.
7. Writing
Write a onepage essay about the promotion strategy you would
use for your own business, cover the information of the both texts.
Support your suggestions by examples.
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Unit 10. Advertising
1. Leadin
1) What is the role of advertising in business? In our everyday

life? In small groups, discuss which of the following claims you
agree with. Explain your choice.
a) Advertising is essential for business, especially for launching
new consumer goods.
b) Advertising raises prices.
c) A large reduction of advertising would decrease sales.
d) Advertising often makes people purchase what they don’t need
and want.
e) Advertising doesn’t give a truetolife picture of a product.
2) Comment on the following quotations: “Advertising is the greatest
art form of the twentieth century.” (Marshall McLuhan, Canadian
author) and “Half the money I spend on advertising is wasted; the
trouble is, I don’t know which half.” (John Wanamaker, father of
modern advertising)
2. Key Vocabulary
1) advertising
2) a medium, media
3) product placement
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4) to underwrite
5) an advertisement (ad)
6) public service announcements
7) to exceed
8) spam
9) target audience
10) a brand image
11) to generate positive publicity
12) overt and covert
13) subliminal
14) controversy
15) commercials
16) a slogan
1) Consult a dictionary and write out the transcription and

Russian equivalents of these words. Then practise reading
them.

3. Reading
What types of advertising do you know? Read the following text

and say, which of the mentioned means of advertising you suppose:
• are the most expensive;
• have the greatest effect on potential consumers;
• you would use for your business promotion.
Advertising
Advertising is paid, oneway communication through a medium in

which the sponsor is identified and the message is controlled by the
sponsor. Variations include publicity, public relations, product placement,
sponsorship, underwriting, and sales promotion. Every major medium is
used to deliver these messages, including: television, radio, movies, maga-
87
zines, newspapers, the Internet and billboards. Advertisements can also be

seen on the seats of grocery carts, on the walls of an airport walkway, on
the sides of buses, heard in telephone hold messages and instore public
address systems. Advertisements are usually placed anywhere an audi-
ence can easily and/or frequently access visuals and/or audio, especially
on clothing.
Many advertisements contain a slogan or a short phrase to attract
the consumer’s attention. Effective slogans are usually short, easy to
remember, repeat and translate for international markets.
Advertising clients are predominantly, but not exclusively,
profitgenerating corporations seeking to increase demand for their
products or services. Some organizations which frequently spend large
sums of money on advertising but do not strictly sell a product or
service to the general public include: political parties, interest groups,
religionsupporting organizations, and militaries looking for new
recruits. Additionally, some nonprofit organizations are not typical
advertising clients and rely upon free channels, such as public service
announcements.
The advertising industry is large and growing. In the United States
alone in 2005, spending on advertising reached $144.32 billion, reported
TNS Media Intelligence. That same year, according to a report titled
Global Entertainment and Media Outlook: 2006–2010 issued by global
accounting firm PricewaterhouseCoopers, worldwide advertising spend-
ing was $385 billion. The accounting firm’s report projected worldwide
advertisement spending to exceed halfatrillion dollars by 2010.
While advertising can be seen as necessary for economic growth, it is
not without social costs. Unsolicited Commercial Email and other forms
of spam have become so prevalent as to have become a major nuisance
to users of these services, as well as being a financial burden on internet
service providers. Advertising is increasingly invading public spaces, such
as schools, which some critics argue is a form of child exploitation.
88
Types of Advertising
Media
There are two basic types of advertising: product and corporate ad-
vertising. Product advertising aims to increase sales by making a concrete
product or service known to a wide audience, and by emphasising its
positive qualities. Corporate advertising is not directly concerned with
increasing sales of particular merchandise, but more with the brand image
of the whole company, which the latter wants to present to the public.
It is the job of Public Relations (PR) experts to organise activities and
events, which generate positive publicity for the company. A company can
advertise in a variety of ways, depending on how much it wishes to spend
and the size and type of the target audience.
Commercial advertising media can include wall paintings, billboards,
street furniture components, printed flyers and rack cards, radio, cinema
and television ads, the Internet and direct mail, shopping carts, skywrit-
ing, bus stop benches, human directional, magazines, newspapers, town
criers, sides of buses or airplanes, taxicab doors, roof mounts and passenger
screens, musical stage shows, subway platforms and trains, elastic bands
on disposable diapers, stickers on apples in supermarkets, the opening
section of streaming audio and video, posters, and the backs of event
tickets and supermarket receipts. Any place sponsors pay to deliver their
message through a medium is advertising. The design and organisation of
advertising campaign is usually the job of an advertising agency.
Covert Advertising
According to one more classification, advertising may be either ‘overt’
or ‘covert’. The latter takes place when a product or brand is embedded
in entertainment and media. For example, in a film, the main character
can use an item or other of a definite brand, as in the movie Minority
89
Report, where Tom Cruise’s character John Anderton owns a phone with
the Nokia logo clearly written in the top corner, or his watch engraved
with the Bulgari logo. Another example of advertising in film is in I, Ro-
bot, where main character played by Will Smith mentions his Converse
shoes several times, calling them “classics,” because the film is set far in
the future. I, Robot and Spaceballs also showcase futuristic cars with the
Audi and Mercedes Benz logos clearly displayed on the front of the ve-
hicles, respectively. Cadillac chose to advertise in the movie The Matrix
Reloaded, which as a result contained many scenes in which Cadillac
cars were used. Similarly, product placement for Omega Watches, Vaio,
BMW and AstonMartin cars are featured in recent James Bond films,
most notably, Casino Royale.
Television Commercials
The TV commercial is generally considered the most effective
massmarket advertising format and this is reflected by the high prices TV
networks charge for commercial airtime during popular TV events. The
annual Super Bowl football game in the United States is known as much
for its commercial advertisements as for the game itself, and the average
cost of a single thirtysecond TV spot during this game has reached $2.7
million (as of 2007).
Newer Media and Advertising Approaches

Increasingly, other mediums such as those discussed below are over-
taking television due to a shift towards consumer’s usage of the Internet
as well as devices such as TiVo.
Advertising on the World Wide Web (WWW) is a recent phenomenon.
Prices of Webbased advertising space are dependent on the “relevance” of
the surrounding web content and the traffic that the website receives.
Email advertising is another recent phenomenon. Unsolicited bulk
Email advertising is known as “spam.”
Some companies have proposed to place messages or corporate
logos on the side of booster rockets and the International Space Station.
Controversy exists on the effectiveness of subliminal advertising, and the
pervasiveness of mass messages.
Unpaid advertising (also called word of mouth advertising), can pro-
vide good exposure at minimal cost. Personal recommendations (“bring
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a friend”, “sell it”), spreading buzz, or achieving the feat of equating a

brand with a common noun (“Xerox” = “photocopier”, “Kleenex” = tissue,
“Vaseline” = petroleum jelly, “Hoover” = vacuum cleaner and “BandAid”
= adhesive bandage) — these are the pinnacles of any advertising cam-
paign. However, some companies oppose the use of their brand name to
label an object.
SMS (Short Message Service) text messages have taken Europe
by storm. The addition of a textback number is gaining prevalence as a
www address of yesterday. The benefit of SMS text messages is people
can respond where they are, right now, stuck in traffic, sitting on the
metro. The use of SMS text messages can also be a great way to get a viral
(wordofmouth) campaign off the ground to build your own database
of prospects. Interstitial advertisement is a form of advertisement which
takes place while a page loads.
Measuring the Impact of Mass Advertising

The most common method for measuring the impact of mass media
advertising is the use of the rating point (rp) or the more accurate target
rating point (trp). These two measures refer to the percentage of the uni-
verse of the existing base of audience members that can be reached by the
use of each media outlet in a particular moment in time. The difference
between the two is that the rating point refers to the percentage to the
entire universe while the target rating point refers to the percentage of
a particular segment or target. This becomes very useful when focusing
advertising efforts on a particular group of people. One of the reasons ad-
vertising is successful, is due to the way in which it endorses a particular
audience, to build awareness of what the advertiser has to offer.
From Wikipedia, the free encyclopedia
1) Work in small groups. Choose one of the abovementioned

types of advertising and make a short presentation on its ad-
vantages and disadvantages.
2) Refer closely to the article and say what these words and figures
refer to:
$385 billion, RT, “I, Robot,” “bring a friend,” $2.7 million, TiVo,
PR, WWW.
91
3) In the previous text you were given some concrete examples

of advertising. Can you suggest some other examples of covert
advertising, television commercials, slogans, which you saw/
heard not long ago? How did they impress you? Discuss the
efficiency of that advertising with your partner.
4) Discuss the following:
a) What is your general attitude to advertising?
b) How do you see its future?
c) Will there appear any new forms of advertising?
1) Fill in the table for the words of the key vocabulary and some new
words from the text (10–12 items). The example is given to you.
product an article of продукт; good, item, production,

commerce; продукция; produce, produce,
an exchange- выработка, commodity productive
able unit of изделие
economic
wealth
1, 2, ...
2) Find 9 words from the key vocabulary and the text “Advertising”
in the word square. Some letters may be used several times.
a r t i s i n g
p e p d e d i a
l v u n m l a c
a d b a g o n o
c i l r s l i v
e c u b l i m e
m i s m m o c r
e t y e r c i t
n t s p a m a l
92
3) How much do you know about advertising agencies? Complete

the text below with the following words from the box.
target audience copywriters fullservice careful consideration creative fields
a media plan departments purchase media access manage in terms of
Advertising agencies are (a) ______ businesses which can manage

every aspect of an advertising campaign. They vary widely (b) ______
size and scope and cater to different kinds of businesses. Some agencies
have only one or two major clients whose accounts they (c) ______.
Others have hundreds of clients spread throughout the country or the
world, as well as many field offices from which to service them. In general,
an advertising agency will be able to manage an account, provide creative
services, and (d) ______ for a client.
An agency, depending on its size, will likely have different (e) ______
which work on the separate aspects of an account. An account manager
or the account planning department will coordinate the work of these
departments to insure that all the client’s needs are met. The departments
within a fullservice agency will typically include:
RESEARCH. The research department will be able to provide clients
with some details about the prospective audience of the final advertising
campaign, as well as information about the market for the product being
advertised. This should include specific market research which leads to
a very focused ad campaign, with advertising directed to the ideal (f)
______.
CREATIVE SERVICES. Advertising agencies employ experts in
many (g) ______ that provide quality, professional services that conform
to the standards of the industry. One or several (h) ______ provide
the text for print ads, and the scripts for television or radio advertising.
Graphic designers are responsible for the presentation of print ads, and
the art department is responsible for providing the necessary images for
whatever format advertisement is decided upon. The final advertising
provided by an agency should be fully developed and polished.
MEDIA BUYING. One of the services provided by advertising agen-
cies is the careful placement of finished advertisements in various media,
with an eye toward maximizing the potential audience. The research con-
ducted by the agency will inform any mediabuying decisions. An agency
will be able to negotiate the terms of any contracts made for placing ads
93
in any of various media. The mediabuying staff of an advertising agency

will draw on specific research done for the client, as well as on past expe-
rience with different media. Through this research and (i) ______, the
agency will develop (j) _______: this should be a fully realized plan of
attack for getting out the client’s message.
6. Skills Focus
Group in small teams. Imagine that you work in competing adver-

tising agencies. Each member of the team represents a separate
department responsible for one of these steps: dealing with cli-
ents, making research, image making, creating an advertisement,
making mediabuying decisions, working out a strategic plan
and supervising the whole process. Your regular clients asked
the agency to advertise the following commodities: shoes, some
clothes, a watch, a perfume, software, real estate or a new shop.
In each team choose one item from the list and prepare its adver-
tising campaign. Follow all the steps. Use the vocabulary and the
information about advertising you have studied in this unit as much
as possible. In the end listen to all presentations and reveal the
best team (advertising agency).
7. Writing

Add your personal commentary.
Вирусный маркетинг и вирусная реклама относятся к технологи-

ям маркетинга, которые используют ныне существующие социальные
сети в целях увеличения осведомленности широкой публики о торго-
вой марке. Термин «вирусный» используется не случайно, процессы
в данном случае аналогичны распространению патологических и ком-
пьютерных вирусов. Часто это могут быть слухи или устная реклама,
94
распространенные онлайн. Можно также говорить об эффекте сети

Интернет, использование которой может быть весьма полезным для
охвата огромного количества людей в кратчайшие сроки.
Вирусный маркетинг иногда относят к основанным на Интер-
нете стелскампаниям, включая использование блогов, наиграно
любительских вебсайтов, и другие формы astroturfing, созданных
для создания слухов для продвижения нового продукта или услуги.
Часто цель вирусных маркетинговых кампаний состоит в том, чтобы
произвести освещение в СМИ через «нетривиальные» истории, цен-
ность которых во много раз превышает рекламный бюджет компании.
Термин «вирусной рекламы» призван для обозначения идеи
склонности передавать и делиться интересным и захватывающим
материалом. Зачастую это поддержано брендом, призванным под-
готовить потенциального покупателя к продукту или услуге. Эти
вирусные рекламные кампании часто принимают форму забавных
видеоклипов, интерактивных игр, сделанных в программе Flash,
рекламных игрушек, картинок или даже просто текста.
Популярность вирусного маркетинга обусловлена легкостью и не-
принужденностью выполнения маркетинговой кампании, относитель-
ной дешевизной (по сравнению с той же прямой почтовой рассылкой),
хорошим позиционированием и быстродействующей и постоянной
обратной связью. Главная сила вирусного маркетинга — его способ-
ность охватить большое количество заинтересованных людей без
особых затрат. Наиболее эффективным способом достижения этой
клиентской базы является интегрированная маркетинговая IMC
линия связи. Использование текстовых сообщений SMS — новый
развивающийся механизм для вирусных кампаний B2C.
Unit 11. Trademark, Branding and Private Labeling
1. Leadin

a) What is the main function of a trademark?
b) Is there any difference between the terms “trademark” and
“brand”? Give grounds to your choice.
c) Which priorities can an “own brand” gain?
2) What ideas do you associate with the concept of brand?
3) Comment on the definition of the term “brand”.
A trademark or distinctive name identifying a product or a
manufacturer.
How could you expand this definition?
2. Key Vocabulary
words and phrases, give their Russian equivalents:
1) a trademark / trade mark
2) a sign
3) a legal entity
4) an intellectual property
5) to commence legal proceedings for smth
6) infringement
7) to file suit
8) a service mark
9) to claim rights
96
10) jurisdiction
11) interchangeably
12) to intend
13) to integrate
14) to reside
15) a brand’s identity
16) a tag line
17) mnemonic devices
18) to emerge
19) a strong retailer
20) to compete against
21) to dominate a market
22) an outlet
2) Explain the meaning of the words and word expressions in
English.
3. Reading
Read the following article and decide which of these statements

the writer would agree with. Why?
Use the following introductory phrases
I assume that…; As I see it,…; In my humble opinion, ….
a) Trademarks are generally distinctive symbols, pictures, or words that
sellers affix to distinguish and identify the origin of their products.
b) By making goods easier to identify, trademarks also give manu-
facturers an incentive to invest in the quality of their goods.
c) Your brand is the source of a promise to your consumer.
The Brand Formula

A trademark or trade mark or mark is a distinctive sign or indicator
of some kind which is used by an individual, business organization or
other legal entity to identify uniquely the source of its products and/or
services to consumers, and to distinguish its products or services from
those of other entities. A trademark is a type of intellectual property, and
typically comprises a name, word, phrase, logo, symbol, design, image, or
a combination of these elements.
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The owner of a registered trademark may commence legal proceedings

for trademark infringement to prevent unauthorized use of that trade-
mark. However, registration is not required. The owner of a common law
trademark may also file suit, but an unregistered mark may be protectable
only within the geographical area within which it has been used or in
geographical areas into which it may be reasonably expected to expand.
The term trademark is also used informally to refer to any distin-
guishing attribute by which an individual is readily identified, such as
the well known characteristics of celebrities. When a trademark is used
in relation to services rather than products, it may sometimes be called a
service mark, particularly in the United States.
The ™ symbol may be used when trademark rights are claimed in
relation to a mark, but the mark has not been registered with the govern-
ment trademarks office of a particular country or jurisdiction, while the
® is used to indicate that the mark has been so registered.
Terms such as “mark”, “brand” and “logo” are sometimes used inter-
changeably with “trademark”. However, the terms “brands” and “brand-
ing” raise distinct conceptual issues and are generally more appropriate
for use in a marketing or advertising context.
The American Marketing Association describes a brand as a “name,
term, sign, symbol or design, or a combination of them intended to identify
the goods and services of one seller or group of sellers and to differentiate
them from those of competition.”
To succeed in branding, you must understand the needs and wants
of your customers and prospects. You do this by integrating your brand
strategies through your company at every point of public contact.
Your brand resides within the hearts and minds of customers, clients,
and prospects. It is the sum total of their experiences and perceptions,
some of which you can influence, and some that you cannot. A strong
brand is invaluable as the battle for customers intensifies day by day. It’s
important to spend time investing in researching, defining, and building
your brand. After all your brand is the source of a promise to your con-
sumer. It’s a foundational piece in your marketing communication and
one you do not want to be without.
Combining a few different definitions, a brand is the name and sym-
bols that identify:
(a) The source of a relationship with the consumer.
(b) The source of a promise to the consumer.
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(c) The unique source of products and services.

(d) The sum total of each customer’s experience with your organiza-
tion.
When most people think about a brand’s identity, they usually think
about the name, the logo, and maybe the tag line. But the identity con-
sists of so much more than that: it includes typestyles, colors, symbols,
attitude and personality, brand voice and visual style, sounds and other
mnemonic devices, characters and other spokespeople, product design,
package design, and the list could go on and on. The most powerful brands
have a consistent brand voice and visual style from product design and
packaging to retail environment and external communication.
With the emergence of strong retailers, the “own brand”, the retailer’s
own branded product (or service), emerged as a major factor in the mar-
ketplace. Where the retailer has a particularly strong identity, such as,
in the UK, Marks & Spencer in clothing, this “own brand” may be able
to compete against even the strongest brand leaders, and may dominate
those markets which are not otherwise strongly branded. There was a fear
that such “own brands” might displace all other brands (as they have
done in Marks & Spencer outlets), but the evidence is that—at least in
supermarkets and department stores—consumers generally expect to see
on display something over 50 per cent (and preferably over 60 per cent)
of brands other than those of the retailer. Indeed, even the strongest own
brands in the United Kingdom rarely achieve better than third place in the
overall market. In the US, Target has “own” brands of “Market Pantry”
and “Archer Farms” each with unique packaging and placement.
1) How do you account for the title of the article?
2) Single out the most important sentence in each paragraph,

justify your choice.

a) How can an owner of a trademark be protected against its
unauthorized use?
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b) What do the ™ and the ® symbols mean? Convey their simili-

arity and difference.
c) How is success in branding linked with understanding of cus-
tomer’s needs?
d) What does the brand identity consist of?
e) How can private labelling help dominate the market?

verb noun adjective
identify
registered
advertise
value
relationship
symbol
expected
law
combine
expanding
2) Find in the article the words which have the same meaning as
the following:
a) an institution
b) a customer
c) to include
d) to start legal proceedings
e) breach of law
f) unallowed
g) a problem
h) to consolidate
i) a representative
j) outer
k) a tradesman
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l) to lead
m) a shop
3) In a paragraph of 70–90 words, summarize the issues involved

in trademark and branding employing the bulk of the key vo-
cabulary and the items you’ve found in the previous exercise.
6. Skills Focus
1) Work in small groups and highlight the factors usually taken

into consideration in the development of market policy. (e.g.
sector of economy, etc.)
2) What do these signs associate with? Comment on them draw-
ing on the previous assignment.
a) b) c) d)
e) f) g) h)
3) In groups, create a brand image of a company of your own.

Comment on it. Give grounds to your decision.
7. Writing
Render the following passage into English.
На практике часто встречаешься с тем, что путают два близких
понятия — бренд и торговую марку. Следует помнить о том, что тор-
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говая марка — понятие юридическое, в то время как брендом обычно

называют уже относительно хорошо известную потребителям и пото-
му «раскрученную» торговую марку, уже завоевавшую определенную
долю рынка. Когда говорят о разработке нового продукта или услуги,
чаще используют определение торговая марка, а когда новый продукт
получает признание потребителей и приобретает определенную из-
вестность, узнаваемость и долю рынка, тесня своих конкурентов, он
становится брендом.
Первое известное человечеству использование бренда известно
еще со времен Древнего Египта, когда ремесленники ставили свое
тавро на сделанные ими кирпичи. Однако настоящий расцвет идеи
брендинга пришелся на вторую половину двадцатого века, и связано
это было с вполне естественными причинами — появлением на рынке
большого количества похожих товаров. Здесь на помощь потребителю
приходит бренд, который выделяет из всех характеристик товара те,
которые наиболее важны для потребителя, и облегчает понимание
товара. Он также упрощает выбор. Каждый день потребитель сталки-
вается с множеством похожих товаров, и у него просто физически нет
времени сравнивать все аннотации, процентный состав, показания к
применению и технические характеристики. В этой ситуации брен-
динг является просто «спасательным кругом», — на каждый товар
наклеиваются простые, ясные, понятные неспециалисту ярлычки:
«дорого, но престижно», «экономично», «для новичков», «молодым
и раскрепощенным» и т.д.
Unit 12. Customer Service and Retention
1. Leadin
1) What ideas do you associate with customer service?
2) Comment on two given definitions. Which of them is more ac-

curate? Why?
Customer service (also known as Client Service) is the provision

of service to customers before, during and after a purchase.
Customer service is a series of activities designed to enhance the
level of customer satisfaction — that is, the feeling that a product
or service has met the customer expectation.
3) Share your positive and negative experience of customer serv-

ice.
2. Key Vocabulary
1) Before you read the text, consult a dictionary to make sure

you know the following words and phrases, give their Russian
equivalents:
1) a customer retention
2) loyalty
3) to apply to
4) to maintain
5) comprehensive
6) jeopardize
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7) to acquire
8) to quit
9) to undermine
10) abrasive
11) overdue accounts
12) to schedule a contact
13) a prospect
14) a real estate agent
15) give smb a leg up
16) compensate
17) to enhance
18) a bottom line
19) have a clue
English.
3. Reading
Before you read the first article, look at the title. Can you guess
about the contents of the extract? What do you already know
about this issue?
As far as … is concerned; At all hazards…; Frankly speaking, I am
in a real predicament
How to Keep Your Customers Coming Back —

Understanding Customer Retention
Why do some businesses offer points, stamps or every tenth coffee
for free?
These businesses understand that a customer retention program is
a fantastic way to ensure that customers keep coming back. The most
recognized customer retention programs are those loyalty programs used
by retailers, but this same principal can be applied to any business that
wishes to maintain a loyal customer base.
Ask yourself these simple questions.
•Does your business have a comprehensive retention strategy?
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•Are you devoting a portion of your marketing budget to keeping

current customers?
If you answered no, then you are jeopardizing the longterm success
of your business.
Remember it costs less to keep your current customers than it does
to acquire new ones. That doesn’t mean that you should quit spending
on marketing attempts to acquire new customers, but you should invest
some of your marketing budget on retention strategies. Consider the
80/20 rule which states 80% of your business income comes from just
20% of your customers. A good Customer Retention program will work
to convert those occasional customers into “loyal customers” who spend
more money on a more frequent basis.
Customer retention doesn’t just happen. Poor customer service can
undermine even the best retention strategy. For a customer retention
program to be truly successful, the business must look at their total op-
eration to ensure every aspect of their business is aimed at keeping the
customers they already have. Is the accounting department too abrasive
when collecting overdue accounts? Is the receptionist chewing gum when
answering the phone? Every contact with your customer has to be positive
for any retention program to work. Depending on the type of business you
operate, there are several possibilities in the type of customer retention
program could develop:
Frequent Contact
You can develop a program that provides regular, scheduled contact
with customer or prospect (a drip campaign). For example, develop a
(optin) newsletter campaign, letter campaign or important reminder
campaign (oil change, domain renewal, etc). This is an excellent approach
for many service industries or for sales professionals such as real estate
agents or car sales people or any other industries where there is a signifi-
cant lapse in time between new purchases. You can keep your business
name fresh in your clients mind so that they call you instinctively when
it is time for the next purchase.
Rewards
Develop a “rewards” program such as points, free product or service
or discounts earned by making. This is the retail rewards program most
people are familiar with, but this type of retention program is often used
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in business to business relationships as well. You could develop a program

that will offer cash back or a discount to businesses based on the volume
of purchases annually. This type of program works particularly well if
you have a diversified selection of products or services, and are looking to
encourage your customers to purchase a broader range of your products
or services
Combination
You could develop a Members only club that combines aspects from
both the frequent contact and rewards program.
The best retention programs are those that provide an opportunity
for you to learn more about your clients and their spending habits. This
is invaluable information that can easily give you a leg up on the competi-
tion.
1) Read the article again and say how you understand the fol-
lowing:
a) It costs less to keep your current customers than it does to
acquire new one.
b) You could develop a program that will offer cash back or a
discount to businesses based on the volume of purchases an-
nually.
c) This is invaluable information that can easily give you a leg
up on the competition.
2) These sentences give examples of lucrative customer service.

Think of a possible context for each sentence.
a) A good Customer Retention program will work to convert
those occasional customers into “loyal customers” who spend
more money on a more frequent basis.
b) You can develop a program that provides regular, scheduled
contact with customer or prospect.
c) You can keep your business name fresh in your clients mind
so that they call you instinctively when it is time for the next
purchase.
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3) Scan the article below and complete the spare places with
missing headlines.
a) Provide true customer service.
b) Be honest with your customers.
c) Build Business to Customer Loyalty.
d) Educate your staff.
e) “The Customer Is always Right.”
5 Secrets of Good Customer Service
Good customer service is the bread and butter of your business.

Customer Service Secret Number One — 1)…………. . Everyone
who had contact with customers should know the customer by his full
name and, when possible, other personal or business information about
him. When you can show concern about what matters to your customer,
you’ve just acquired a customer for life.
Customer Service Secret Number Two — 2)………………….. In to-
day’s market environment, service has become a clichй and it seems like
“everyone’s doing it.” So, if everyone is doing it, why not jump ahead of
the wolf pack by providing even more creative, personalized service to
your customers than your competitors can? Get to personally know your
customers and recognize their individual needs. Above all, make certain
that what you are offering really is something that your customer can
value; that’s the key to good customer service.
Customer Service Secret Number Three — 3)………………..If a cus-
tomer comes to you about a complaint, be very serious about how you
handle it. Even if it is obvious that he’s wrong, sometimes it’s better for
repeat business to take the loss and compensate the customer. Then, when
your customer is satisfied that his complaint has been properly addressed,
thank him for bringing the problem to your attention.
Customer Service Secret Number Four — 4) ……………………. If your
customer even suspects that you are trying to pull something over on
him, you can kiss that customer goodbye — permanently! If your cus-
tomer asks you for advice on a product, don’t try to sell him the item
that best enhances your bottom line. Sell him the item that’s best for
your customer. In the long run, your bottom line will thank you for hav-
ing made this choice.
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Customer Service Secret Number Five — 5)…………………..Some years

ago I went into a hardware store and asked the young summer student
clerk for some rubber cement. The kid obviously didn’t have a clue what
I was talking about. However, rather than finding out what rubber ce-
ment is, he gave me a strange look, then turned his back and went on to
serve another customer. Needless to say, after that incident I took ALL
my hardware business elsewhere.
A final bit of advice about customer service; “If you aren’t taking care
of your customers, your competition will.” Print that advice out in large,
bold letters and past it above your cash register.

verb noun adjective
retention
to maintain
comprehensive
to compensate
diversity
to acquire
jeopardizing
complaint
personalize
familiar
2) Complete the following word expressions with proper preposi-

tions. Make up sentences of your own with them.
a) to offer samples … free
b) principal applied … any business
c) to convert those occasional customers …… “loyal customers”
d) aspect of business aimed at keeping the customers
e) to depending … the type of business
f) people are familiar ….. the retail rewards program
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g) give you a leg … … the competition.

h) a key … good customer service
i) ask … advice … a product
3) Summarize the both extracts in a short paragraph of fewer than

80–100 words exploiting the bulk of the key vocabulary.
6. Skills Focus
Work in pairs and act out the situation.

You are a CEO of a delivery service com-
pany. Your regular customer witnessed
an offensive phone answer to a client
and has sent you complaints with this
picture. Tackle the problem with a view
of retaining this customer and prevent-
ing further complaints.
7. Writing
Обеспечение качественного и гарантированного обслуживания
клиентов — основная задача компании. Важно сделать так, что бы ни
один запрос клиента не был потерян, а возникший вопрос был решен в
приемлемое время. Качественное обслуживание клиентов — не только
одно из конкурентных преимуществ, во многих сферах деятельности
это стало единственным конкурентным преимуществом. Качество
обслуживания — новый стандарт, по которому клиенты судят о
качестве продукта. Журнал Electrical Contractor заметил: «В нашем
ориентированном на сервис обществе качество обслуживания стало
гораздо более важным фактором успеха компании, чем качество ее
продукта. И те компании, которые идут по пути совершенствования
своего сервиса, получают несомненное конкурентное преимущество
над теми, кто в этом отстает». Да, мы живем во времена, когда зача-
стую единственное различие между продуктами и услугами, которое
способен увидеть клиент, это различие в качестве обслуживания. Но
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именно это различие создает у клиента позитивный настрой и рас-

положенность к компании и ее продуктам или услугам.
Грамотные программы повышения культуры обслуживания и
«воспитания» клиентов восстанавливают лояльность бренду, до-
верие и намерение совершить повторную покупку у клиентов, ранее
недовольных обслуживанием в этой компании. В атмосфере жесткой
конкуренции, характеризующей начало XXI в., компании должны
научить своих сотрудников искать элемент обслуживания во всем, что
они делают. Каждый сотрудник компании, у которой есть клиенты,
должен постоянно спрашивать себя: «Как я могу выполнить эту ра-
боту, чтобы клиент был доволен?» Плохое обслуживание заставляет
организацию делать шаг назад. Хорошее обслуживание позволяет ей
удержаться на месте. И только превосходное обслуживание позволяет
ей продвигаться вперед, по направлению к большей прибыльности,
по мере движения наращивая скорость.
Unit 13. Oral Communication
1. Leadin
1) Work in small groups and share the ideas you associate with
the title of the unit.
2) Have you ever experienced business oral communication?
What type was it?
3) What in your opinion makes a successful communicator?
2. Key Vocabulary
1) Practise reading the following words and word expressions.

Consult a dictionary if necessary.
1) interpersonal communication
2) critical
3) peers
4) subordinates
5) turbulent economic environment
6) market saturation
7) restructuring
8) staff meeting
9) telephone discourse
10) facetoface meeting
11) to conduct a meeting
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12) to alienate
13) to allot
14) rapport
15) main message
16) to delve
17) testimonial
18) to clarify
19) visual aids
2) Explain the meaning of the words and word expressions above

using definitions, synonyms or antonyms.
3. Reading
Scan the article, then say which of the following is its subjectmatter.
Support your choice. Employ such introductory expressions as:
In fact…; It’s an open secret that…; It ran through my mind that ….
a) The more successfully a business functions, the better it enables

employees to perform jobs better.
b) Learning oral communication skills serves as a longterm invest-
ment in your future as an effective leader.
If You Want to Improve as a Speaker
Communication in the business world is imperative for success. This

holds true for interpersonal communication, communication between
management and staff, and for practically every other contact a business
has, both within its own establishment and the outside world. Effective
communication is critical for the success of any organization. Through
the use of proper communication skills, individuals will be better able
to function as a group, thus allowing organizations to share information,
analyze situations and to set goals. Communicating properly among
peers improves an individual’s all around skills. The more successfully
a business functions, the better it enables employees to perform jobs
efficiently. Managers pass on information and train subordinates more
112
effectively, and in general a business has a better chance of profiting. In

today’s turbulent economic environment and rapid technological change,
communication is critical in allowing a business to deal with the restruc-
turing of national and international economies, in preventing market
saturation, and in allowing a business to deal with their competitors
more effectively.
Oral communication describes any type of interaction that makes
use of spoken words, and it is a vital, integral part of the modern busi-
ness world. The types of oral communication commonly used within
an organization include staff meetings, personal discussions, presenta-
tions, telephone discourse, and informal conversation. Oral communi-
cation with those outside of the organization might take the form of
face to face meetings, telephone calls, speeches, teleconferences, or
videoconferences.
Conversation management skills are essential for small business own-
ers and managers, who often shoulder much of the burden in such areas as
client/customer presentations, employee interviews, and conducting meet-
ings. For oral communication to be effective, it should be clear, relevant,
tactful in phraseology and tone, concise, and informative. Presentations
or conversations that bear these hallmarks can be an invaluable tool in
ensuring business health and growth. Unclear, inaccurate, or inconsider-
ate business communication, on the other hand, can waste valuable time,
alienate employees or customers, and destroy goodwill toward manage-
ment or the overall business.
As the most part of your time will be devoted to interacting and com-
municating with other people, mind that some of the most important of
this communication will be in the form of oral presentations. Properly
executed and in the right context, they can inform, motivate and convince
more effectively than any other single form of communication. As a result,
employers place great value on presentation skills; your abilities in this
area can literally make or break your career. Before actually preparing a
presentation you must first determine:
• who is your audience? How will they feel about your topic?
• In one sentence, exactly what is your main idea or topic?
• what information and evidence will you be using to support your
main idea or topic, and how will it be structured? (this usually
means preparing an overall outline or plan).
• how much time is allotted for your presentation?
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To help you remember the four main steps, think of RAMP (Rapport,
Attention, Main message, and Plan).
Usually there will be several sections in the body of your presen-
tation, each corresponding to one of the main points in your outline.
This is where you delve more deeply into your argument, providing clear
evidence, relevant examples, pertinent anecdotes and (in the case of sales
presentations) strong testimonials and references. In conclusion briefly
summarize the key elements of your argument or your key points. Ques-
tions are an essential part of most presentations. They allow your audience
to interact with you, or to clarify ideas, or simply to get more information.
Visual aids (be they overheads, slides, handouts, models, audio or video
clips) must always be simple, clear, and pertinent.
Business consultants urge entrepreneurs to treat public presentations
and oral communication skills as a potentially invaluable tool in business
growth. In fact, learning such skills serves as a longterm investment in
your future as an effective leader.
1) What are the words that help make the arrangement of the info
logical?
2) Read again and fulfil the following assignments:

a) Explain the title of the text.
b) Say how you understand the following: small business
owners and managers often shoulder much of the burden in
such areas as client/customer presentations, employee
interviews, and conducting meetings.
c) Make up a plan of the article.
d) Develop each point of the plan.
3) Reproduce the author’s argumentation for improvement of oral

communication skills. Which of these arguments do you find
the most persuasive? Why?
114
verb noun adjective
analyze
success
preventive
conversation
own
executed /
interact
clear
select
2) Complete the crossword with appropriate words and expres-

sions from the article.
Across
1. someone of a lower or inferior class or rank (11)
3. crucial, decisive (8)
6. a state occuring when the market is completely filled with goods
and services (6, 10)
115
8. to search deeply and laboriously (5)

10. situation marked by unrest or disturbance (10)
11. changing the way a business is organised to make it work more
efficiently (13)
Down
2. a statement in support of a particular truth or fact (11)
4. to assign as a portion; allocate (5)
5. one who has equal standing with another (4)
7. to make smth unfriendly or hostile(8)
9. a relationship especially one of mutual trust or affinity (7)
6. Skills Focus
Would you be able to confidently rise to these challenges?

You are speaking with a potential client, who tells you that your
company is on a short list of possible vendors. She suggests that you
come to their office to brief several key people on the advantages of
your company’s products.
You are told to attend an outoftown industry conference in or-
der to publicly launch and explain your company’s revolutionary new
electric petgrooming product.
7. Writing
Умение вести себя с людьми надлежащим образом является од-
ним из важнейших, если не важнейшим, фактором, определяющим
шансы добиться успеха в бизнесе, служебной или предпринима-
тельской деятельности. Дейл Карнеги еще в 1930е годы заметил,
что успехи того или иного человека в его финансовых делах даже в
технической сфере или инженерном деле процентов на пятнадцать
зависят от его профессиональных знаний и процентов на восемь-
десят пять — от его умения общаться с людьми. В этом контексте
легко объяснимы попытки многих исследователей сформулировать
и обосновать основные принципы этики делового общения или, как
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их чаще называют на Западе, заповеди personal public relation (весьма

приближенно можно перевести как «деловой этикет»).
Джен Ягер в книге «Деловой этикет: как выжить и преуспеть
в мире бизнеса» выделяет шесть следующих основных принципов.
1. Пунктуальность (делайте все вовремя).
2. Конфиденциальность (не болтайте лишнего).
3. Любезность, доброжелательность и приветливость.
4. Внимание к окружающим (думайте о других, а не только о
себе).
5. Внешний облик (одевайтесь как положено).
6. Грамотность (говорите и пишите хорошим языком).
Деловое (официальное, служебное) общение в зависимости от

обстоятельств может быть прямым и косвенным. В первом случае оно
проходит при непосредственном контакте субъектов общения, а во
втором — с помощью переписки или технических средств.
В процессе как прямого, так и косвенного общения используются
различные методы влияния или воздействия на людей. Среди наи-
более употребительных из них выделяются убеждение, внушение,
принуждение. На выбор метода воздействия на людей оказывают
влияние разнообразные факторы, в том числе характер, содержание
и ситуация общения (обычная, экстремальная), общественное или
служебное положение (властные полномочия) и личностные качества
субъектов общения.
Unit 14. Purchasing
1. Leadin

a) Why is it important to plan your purchasing?
b) What questions should purchasing policy set and answer?
2) Agree or disagree with the definition of the terms. Give your
grounds. Provide definitions of your own.
Purchasing refers to a business or organization attempting to
acquire goods or services to accomplish the goals of the enterprise.
Procurement is the acquisition of goods and/or services at the
best possible total cost of ownership, in the right quantity and
quality, at the right time, in the right place for the direct benefit
or use of governments, corporations, or individuals, generally via
a contract.
2. Key Vocabulary
1) profit margin
2) to shrink
3) a vendor
4) streamline
5) to delegate
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6) to duplicate
7) to place an order
8) a receipt
9) an invoice
10) an authority
11) a loan
12) inventory
13) a blanket order
14) obsolete
15) a notation
16) procurement
English exploiting synonyms, antonyms and definitions.
3. Reading
Before you read the text, look at the title. Can you guess about
the contents of the extract? What do you already know about
this topic?
It would seem to me that…; As far as I can judge…; From what I know…
How to Create a Formal Purchasing Program

Make sure you’re purchasing quality supplies at good prices by for-
malizing your business’s purchasing.
It’s easy to neglect the area of purchasing in your business. Of
course you buy goods and services, but you don’t always plan the
purchases as well as you could. As a result, you may spend more money
than they need to, buy goods that aren’t of the proper quality for your
needs, or choose suppliers that don’t offer the level of customer service
you deserve.
If you fail to devote enough attention to your purchasing, your
cost of doing business could rise to an unnecessarily high level. As
operating expenses increase, profit margins shrink, you would either
have to live with lower profits or raise your prices, and neither of
these choices is appealing. By keeping your costs under control,
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you’ll be able to keep your prices at competitive levels and maintain

a desirable profit.
To purchase wisely, you need to buy the right quality and quantity
of materials or products at the best possible price and at the appropriate
time from the best vendor.
The purchasing process is much more streamlined in small com-
panies than in larger businesses, especially when the businesses are
still fairly new. The owner usually decides what to buy, when to buy,
where to buy, and how much to buy. As the business grows, however,
the owner may no longer be able to handle this task and will have to
delegate it to others. While a small business probably won’t need to
create an entire purchasing department, it will need to have a purchas-
ing manager. By selecting one person to manage all of the business’s
purchasing activities, you will decrease the risk of duplicating orders
for the same materials.
Purchasing need not be the purchasing manager’s sole duty; in
fact, your business may not do enough purchasing to require a fulltime
purchasing manager. You should select an employee who can handle
purchasing, as well as the other duties he or she my already have. This
individual should be able to communicate clearly with your business’s
suppliers. Although purchasing duties probably won’t occupy all of this
individual’s time, there is more to purchasing than placing orders. The
purchasing manager will have to gather orders, make sure they are com-
plete, and stay within any limits the company may have set on spending,
select an appropriate vendor, order the goods, check their condition upon
receipt, make sure the invoice is correct, and speed payment of the invoice
by forwarding it to the accounting department.
Before you delegate the purchasing function to another employee,
you should write out a purchasing policy for your business. You may even
want to create such a policy while you are still responsible for purchasing,
as a guide for yourself.
The purchasing policy should answer the following questions:
a) Who has the authority to purchase items for the company? What
items can that person purchase? Are there any spending limita-
tions?
b) What are the business’s requirements for adequate supplier com-
petition and what criteria will be used to select possible vendors?
c) What is the company’s position on the acceptance of gifts?
120
d) Which types of contracts can the business enter into with suc-
cessful bidders or vendors?
e) What is the company’s position on conflict of interest and personal
loans from suppliers?
f) What kinds of information does the company consider confiden-
tial?
g) What is the procedure for dealing with legal questions?
The steps your employees and purchasing manager will follow to
request, order, receive and pay for goods and materials make up your
ordering system. A good ordering system will help maintain satisfactory
supplier relations, improve cash management, aid in inventory control,
and increase the overall profitability of your company.
Suppliers extend a variety of different discounts to their customers.
Many vendors offer quantity discounts: the more units you buy, the less
you pay per unity. These discounts can apply to individual purchases or
to a specific group of purchases made over time, as you would make un-
der a blanket order. Suppliers also offer seasonal discounts that apply to
merchandise being sold out of season. The danger with buying offseason
goods is that they may go out of style or become obsolete and never go
back “inseason.” Vendors also offer cash discounts that you earn by pay-
ing the entire invoice within a specified time period. If you received an
invoice with the notation “1/10, Net 30,” it would mean that you could
take a onepercent discount from the net amount of the invoice if you paid
within ten days. You would otherwise have to pay for the entire amount
of the invoice within 30 days.
1) Read the first two extracts from the article and highlight the
effect of proper procurement planning.
2) Scan extracts 2 and 3, define the difference in purchasing proc-
ess with small and big businesses.
3) Read extract 5 of the article, say which issue the author gives
the focus to. Develop the idea.
4) Look through extract 6, in pairs discuss the importance of the
items concerning the purchasing policy.
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5) Scan extract 7 and list the advantages of an efficient ordering

system.
6) Refer to extract 8, outline the types of discounts offered to

purchasers.
1) Give opposites to the following:

a) reduction
b) a seller
c) pruned down
d) to empower
e) outworn
f) the rate of profit
g) total
2) Complete the expressions with proper prepositions.

1. goods … proper quality
2. to rise … a high level
3. to keep costs … control
4. to buy products … the best price
5. to buy … the best vendor
6. the risk of duplicating orders … the same materials
7. to communicate ….. business’s suppliers
8. to stay ….. limits
9. check their condition … receipt
10. to be responsible … purchasing
11. the procedure … dealing … legal questions
12. to apply … individual purchases
3) Look through the text again, pick out phrasal verbs, translate
into Russian the sentences where they are used.
4) Pick out sentences from the article where discourse markers

(however, although, while, etc.) are used. Translate them into
Russian.
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6. Skills Focus
1) Analyze the chat and comment on the stages of a purchasing

process.
маркетинго- перечень
вые про- рекомендуе-
гнозы мых постав-
щиков
заказы отде- сформи-

список това-
ла продаж рованный
ра с количе-
заказ
ством
определение
потребности в формирование
товаре заказа
Отдел за- Отдел за-

купок купок
Отдел про-
даж
Отдел мар-
кетинга
2) Write a synopsis of the purchasing process stages drawing on the

info from the chat exploiting the bulk of the key vocabulary.
3) Work in pairs. Student A is a sole proprietor while Student B is
CEO in a big business. Discuss the importance of well organized
purchasing and differences of purchasing policy exercising by
your enterprises.
7. Writing
В любой фирметоваропроизводителе существует типичный
набор задач, связанных с управлением закупками. Основными за-
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дачами, решаемыми закупочной

логистикой, являются следующие:
а) что закупить;
б) у кого закупить;
в) сколько закупить;
г) на каких условиях закупить.
При определении эффектив-

ности закупочных операций необ-
ходимо комплексно оценить работу
службы закупок фирмы, приняв во
внимание: выполнение плана заку-
пок по объемным и качественным
показателям, выполнение бюджета
фирмы и объем сэкономленных
средств, дополнительные меры по
контролю качества входящей про-
дукции, а также объем и стоимость упущенных продаж, общий объем
операций, производительность труда, транспортные издержки и т.д.
Закупки и логистика существенно влияют на конкурентоспо-
собность предприятия. Процесс закупок подвергается постоянным
изменениям: новые концепции сотрудничества с поставщиками,
новые подходы в стыковке внутренних процессов и взаимодействия
подразделений, новые зоны ответственности и новые требования к
специалистам по закупкам. Сейчас менеджер по закупкам уже не
имеет права быть просто техническим специалистом по размещению
заказа и оформлению документов. Снабженцы должны стать основ-
ными игроками, способными выполнять не только функциональные
задачи, но и стратегические, инновационные.
В процессе закупочной деятельности ведется большое количе-
ство переговоров: выясняются возможности потенциального постав-
щика, проводятся предварительные переговоры о заключении сделки,
подписываются контракты, договариваемся о процессе поставок,
выясняется ход выполнения заказа, предъявляются претензии, из-
меняются условия контракта и др. Свыше 50% эффективности всего
процесса закупок зависят от того, как были подготовлены и прове-
дены соответствующие переговоры.
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Unit 15. Packaging
1. Leadin

a) What’s the role of packaging in sales promotion?
b) What are the main functions of packaging?
c) Why does packaging design prove to be one of the crucial
components of modern marketing?
2) Look at the topic. What subtopics do you think it should
include?
3) Comment on the definition:
Packaging is the science, art and technology of enclosing or pro-
tecting products for distribution, storage, sale, and use. Packaging
also refers to the process of design, evaluation, and production of
packages.
2. Key Vocabulary
Before you read the text, make sure you know the following words
and phrases, give their Russian equivalents:
1) packaging
2) storage
3) a case
4) to collate
125
5) facilitate
6) calorific content
7) to utilize
8) to prolong
9) retailing
10) sellby date
11) merchandising appearance
12) to monitor
13) hygienic conditions
14) wastage
3. Reading
Read the article and cover the marketing role of packaging in 45
sentences.
Packaging
Packaging can be defined as materials used for the storage, protection,
handling, delivery, and presentation of goods. Packaging can be divided
into three broad categories:
• Primary packaging is the wrapping or containers handled by the
consumer.
• Secondary packaging is the term used to describe larger cases or
boxes that are used to group quantities of primary packaged goods
for distribution and for display in shops.
• Transit packaging refers to the wooden pallets, board and plastic
wrapping and containers that are used to collate the groups into
larger loads for transport, which facilitates loading and unloading
of goods.
The most common types of material used for packaging are paper,
board, plastic, glass, steel and aluminium.
Paper and board are the most widely used packaging materials in
terms of weight.
Because of its low weight and relative strength, plastic is one of the
most energy efficient, robust and economic delivery methods available.
Plastic also has a high calorific content, which allows energy recovery
methods to be utilized efficiently if recycling is not possible. Recycled
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plastics can be used for a variety of products, such as garden furniture,

flower pots and containers, fibres and new packaging materials.
Glass accounts for 20% of the weight of all packaging and 10% of
all goods are packaged in glass.
Aluminum is used packaging applications such as beverage and
food cans, foils and laminates. Steel containers are used to package a
wide range of products, including food, paint and beverages as well
as aerosols.
Mixed material packaging can in some cases have the benefits of
being more resource and energy efficient than single material pack-
aging, but combining materials makes recycling difficult. There is
potential to reprocess mixed materials packaging into other products
such as floor coverings, shoe soles and car mats.
Packaging has a very important function: to protect food from the
point of manufacture up until it is consumed.
Packaging has many benefits:
• Protection: Packages protect the contents from light, micro-
organisms and air, and the environment.
• Preservation: Good packages help preserve food and prolong its
shelf life during storage, transport, retailing and consumption.
• Communication: Packages carry important product informa-
tion about ingredients, quantities, nutritional value, use, sell by
dates and much more.
• Convenience: Packages provide convenience for consumers
by enabling the food to be transported easily and stored until
served.
127
A good package must meet the requirements of preservation, pro-

tection, convenience and communication. It should also use minimum
resources to produce, store and transport the package and its content.
Good packages not only protect the product they contain, they also
protect the resources invested in producing and handling them.
A good package saves food, raw materials, energy, and the environ-
ment.
The merchandising appearance of packaging is increasingly moving
to the foreground and is geared to convey a message of taste by means
of appetizing design. Designing a package means optimizing the appeal
and functionality. The task is to find a package that stands out on the
shelf but has all the features of a high quality.
In today’s competitive world, the packaging design is becoming
increasingly important. At Tetra Pak, the importance of design has been
in focus for many years, resulting in a deep knowledge of the combina-
tion of functionality and appealing design.
“The design elements enter at a very early stage of the package
development process. The appeal perspective, including the look and
feel of the package, is of the same importance as traditional package
features such as safety, stability and handling functionality. Part of
our role is to support the development projects, also in other develop-
ment groups within Tetra Pak with design knowledge and consumer
insights,” says Katharina Kowalski, Manager Package Development
in Tetra Pak R&D.
For this reason, her department undertakes thorough observational
studies where consumers are being monitored not only at arranged pack-
age usability studies but also during their everyday life. Interviews and
video filming are two of the tools used to gain proper knowledge of the
behaviors, needs and demands of the consumers of today.
“We have to understand what works for whom. Young urban
singleliving consumers have different needs and preferences from
suburban families, the elderly or kids. Our findings are used in our own
product development, and also as support to our customers in their
development process,” says Katharina.
The increased use of packaging provides a physical barrier between
a product and the external environment thereby ensuring hygienic con-
ditions and reducing the risk of product wastage due to contamination.
128
This is particularly important in the case of food and beverage products.

In the life cycle of food products, the highest energy input takes place
during the production process. Appropriate packaging ensures that
this energy is not wasted. Some packaging is also needed for safe and
efficient transportation. Packaging is also used to provide customers
with product information and usage instructions, some of which are
required by law. Labels here not only perform the task of advertising
“substrates” but also serve to identify and control the goods in the flow
of materials. Consumers give more and more thought to the safety and
origin of food and increasingly look to preservation and refrigeration
technologies. Furthermore, their expectations concerning the retention
of taste and quality have risen.
1) Have another look of the article and put the headings in the
right order according to the article:
a) functions of packaging;
b) packaging materials;
c) the role of packaging from consumer’s point of view;
d) packaging categories.
2) Highlight the key ideas of the article drawing on its vocabulary.
3) Study the diagrams and speak about the amount of various

packaging materials and packaged goods on the market. You
can use the following:
account for, make up … % of the overall packaged products, to have
a high / low volume to weight ratio.
4) What idea does the author want to convey by the following

statement:
In today’s competitive world, the packaging design is becoming
increasingly important.
5) Summarize the info about the main packaging benefits as it is

presented in the article.
129

verb noun adjective
define
protection
divide
beneficial
process
developing
usability
consume
productive
compete
2) Give opposites to the items below:

to wrap
to load
efficient
to prolong
retailing
urban
external
to reduce
wastage
input
3) Find words or phrases in the text, which mean the following:

a) The manner in which something is presented in the public.
b) To be put to use.
c) To reprocess and use again.
d) The sale of goods directly to consumers.
e) To make as perfect or effective as possible.
f) Conditions and practices that promote or preserve health.
130
4) Explain the meaning of the following terminology, use a dic-

tionary if necessary:
handling
energy efficient
sellby date
merchandising appearance
life cycle of a product
retention of taste and quality
6. Skills Focus
1) Study the following information and paraphrase the words in

bold:
Symbols Used on Packages and Labels
Many types of symbols for package labelling are nationally and

internationally standardized. For consumer packaging, symbols exist
for product certifications, trademarks, proof of purchase, etc. Some re-
quirements and symbols exist to communicate aspects of consumer use
and safety. Recycling directions, Resin identification code (below), and
package environmental claims have special codes and symbols.
Bar codes (below), Universal Product Codes, and RFID labels are
common to allow automated information management.
Some special information and symbols (labels, plackards, etc) as re-
quired by UN, country, and specific carrier requirements. Two examples
are below:
131
With transport packages, standardised symbols are also used to aid

in handling. Some common ones are shown below while others are listed
in ASTM D5445 “Standard Practice for Pictorial Markings for Handling
of Goods” and ISO 780 “Pictorial marking for handling of goods”.
2) Match the labels with their designations then comment on them:

1. Use no hand hooks 5. Fragile
2. Keep away from sunlight 6. Do not clamp as indicated
3. Clamp as indicated 7. This way up
4. Centre of gravity 8. Keep away from water
3) You are a manager in R&D. Your department is supposed to

develop a package for a new product (washing liquid, fizzy
drink, medical equipment, a toy, etc.). Propose your ideas con-
cerning material, design and all kinds of information enclosed.
Prove your choice employing the bulk of the key vocabulary.
7. Writing

Упаковка — одно из направлений коммуникационного агентства
Soldis, которое является важной частью в комплексе разработки
бренда. Грамотно разработанные формообразование и дизайн упа-
ковки становятся эффективными инструментами привлечения по-
132
требительского внимания к продукту. Упаковка уже давно перестала

использоваться лишь по прямому предназначению, а упаковочный
дизайн стал одной из важнейших составляющих современного мар-
кетинга. Упаковка представляет собой важный коммуникационный
носитель, который может стать мощным инструментом в решении
одной из главных маркетинговых задач — стимулировании продаж.
В нашем понимании, разработка упаковки включает в себя не только
создание эстетичного дизайна бренда. Разработка дизайна упаковки
— является составной частью разработки креативной концепции
бренда, которая в свою очередь подчиняется общему решению
коммуникационной стратегии. Только при грамотно выработанной
коммуникационной стратегии все компоненты упаковки будут ра-
ботать корректно , так как именно коммуникационная часть опреде-
ляет эмоциональные и рациональные свойства бренда, его ценности,
характер и самое главное — его суть (Brand Essence). Компиляция
маркетинговых свойств и оригинальной креативной идеи позволяет
получить реально продающий продукт, способный построить линию
доверительных отношений с целевой аудиторией, увеличить ряды
лояльных потребителей, укрепить позиции продукта на рынке, и,
соответственно, стать мощным двигателем продаж, умножая при-
быль производителя.
Unit 16. Merchandising of Intellectual Property
1. Leadin
1) Work in small groups and discuss the ideas you associate with
intellectual property.
2) Look at the topic. What subtopics do you believe it should

include?
3) Decide which of these definitions accurately reflect the concept

of intellectual property. Give grounds to your choice.
Intellectual property refers to creations of the mind: inventions,
literary and artistic works, and symbols, names, images, and de-
signs used in commerce.
Intellectual property is a legal field that refers to creations of the
mind such as musical, literary, and artistic works; inventions; and
symbols, names, images, and designs used in commerce, including
copyrights, trademarks, patents, and related rights.
2. Key Vocabulary
words and phrases. Look up if necessary, give their Russian
equivalents:
1) legal jargon
2) merchandising of intellectual property (IP) rights
3) lowpriced mass goods
134
4) eyecatching
5) purchasing power
6) launch a product
7) produce counterfeit products
8) violations of IP rights
9) to register a trademark for goods
10) a copyright notice
11) a licensee
12) to grant nonexclusive license
13) to assign rights
14) infringement
15) to generate revenues
16) to draft a contract
17) good sense
2) Paraphrase the words and word expressions in English.
3. Reading
Read the article and say what its subjectmatter relates to.
Сover your idea in 3–4 sentences making use of the following:
I assume that…, It goes without saying…, The major point is…
Have you ever noticed that on a shelf crowded with lookalike

products, it is the products that bear images of wellknown characters
and artistic creations that catch the eye? Strip cartoons actors, pop stars,
sports celebrities, famous paintings, buildings and statutes, and many
other images appear on a whole range of products, such as tshirts, toys,
stationary items, coffee mugs, posters, cereals, canned foods, soft drinks,
etc. This is known in legal jargon as merchandising of intellectual property
(IP) rights. The merchandising of IP rights can be a lucrative addition to
a business strategy. It is an important way to improve the visibility and
appeal of products on display in retail outlets.
Companies that manufacture low priced mass goods, such as coffee
mugs, candies or tshirts, may make their products more eye catching,
glamorous, fun and attractive by using a wellknown brand, famous
character, artistic work, or other appealing element on them. Truly,
breakfast cereals that feature Harry Potter have more purchasing power
135
than those without any image. Companies that launch a new product on
the market may advertise their product by associating it with a person-
ality or fictional character in whose reflected light it will appear more
attractive. Who wouldn’t be tempted to buy Nike tennis shoes if Andrй
Agassi praises them?
However, successful merchandising attracts copiers and imitators,
who produce counterfeit products. Skillful use of the tools of the IP system
helps businesses relying on merchandising to prevent or deal effectively
with such violations of IP rights.
The following key points will help you protect your IP rights for
merchandising purposes.
Protect your trademarks. Registration of a trademark gives the
owner an exclusive right to use the mark for certain goods and services.
Be sure that you have adequately protected your trademark for the rel-
evant goods or services. For example, a bike store may have registered its
trademark for bikes and other vehicles, but if it wants to merchandise its
brand on tshirts and hats, then it is well advised to register the trademark
also for clothing and headgear in the countries where it plans to sell the
merchandise.
Protect your original designs. Industrial designs are relevant to
protect the ornamental or aesthetic aspect of useful merchandising arti-
cles. For example, a cartoon character may be represented in the form of
aesthetic designs for toys, jewelry, dolls, brooches, pins, etc.
Protect your copyright. Copyright itself does not depend on official
procedures. Nevertheless, it is strongly advisable to deposit and register
works with the copyright office, in countries where such office exists, and
to place a copyright notice on the works.
Protect your IP in all relevant markets. IP rights are territorial,
so it is necessary to obtain protection in all potential export markets in
due time.
Choose the type of IP that provides you with the best protection.
Some elements used in merchandising may be protectable through differ-
ent types of IP. For example, a cartoon character may be considered an
artistic creation and therefore be protected under copyright, but it may
also be protectable as a trademark.
Preserve control over the commercial use of your IP. Require that
the licensee furnishes preliminary samples of the products on which the
IP will be used. Monitor also the use of your trademark, so that licenses
136
do not utilize the mark in a manner that goes beyond the terms of the
license agreement. They may create a different consumer opinion of your
mark that can have a devastating effect on its overall reputation.
Limit, as much as possible, the scope of the license. When granting
a license, you give the license permission to do things that it otherwise
would not be allowed to do. It is important to construe that permission as
narrowly as possible. Generally, it is better to grant non exclusive licenses,
limited in their scope to the specific needs and interests of the license.
Remember that once you assign your IP rights you lose all its future in-
come earning potential.
Register the license agreement, if needed. Many countries require
that a license be recorded with the national IP office or other govern-
ment agency.
Take action against infringement. It is up to you, as the IP right
holder, to identify any infringement or counterfeiting on your IP rights
and to decide what measures should be taken.
Businesses, universities, sport teams, artists, and nonprofit organi-
zations should be aware of the commercial value of their IP, and gener-
ate revenues from the secondary exploitation of their brands, designs,
artworks or any other merchandisable element. Equally, businesses that
sell lowpriced mass products should consider making use — with legal
authorization — of other’s designs, copyright material, characters and the
like, to make their products more popular and attractive. For successful
merchandising, businesses will need a mix of IPrelated legal knowledge,
commercial contract drafting and negotiation skills, and plain good sense.
(From Lien Verbauwhede, Consultant, SMEs Division, World Intellectual

Property Organization)
1) Divide the article into logical parts and entitle each of them.
2) Develop each point of your plan.
3) How would you account for the role of merchandizing in the
terms of marketing?
137
4) Read the quotation of Stewart Goldsmith, VicePresident of

Sales for Todson. Comment on it. Compare your idea of mer-
chandizing with his one.
“Good merchandising will always take the consumer from deciding
whether they are going to buy to which are they going to buy.”
5) How does merchandizing of goods and services differ from that

of intellectual property?

verb noun adjective
visible
attract
relying
registration
advise
representative
required
allow
specific
assignation
2) Match up the terms with the definitions below:

a) Personality rights; b) Passing off; c) A license agreement;
d) A proper copyright notice; e) Right of publicity; f) Endorse-
ment
1. _________________ is a contractual agreement under which
a licensor (owner of the IP) permits another (licensee) to use
the IP right in an agreed way, and in exchange for an agreed
payment (fee or royalty).
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2. _________________ refers to a person informing the public

that he/she approves of the product or the service or is happy
to be associated with it.
3. _________________ are the rights attached to a fictional
character. They include the right to use a fictional character
(or more precisely his name, image, appearance, etc.), the right
to receive the benefits resulting from its use and the right to
dispose of it. They are the rights attached to, inter alia, the
name, voice, signature, image or appearance of a real person.
Those rights include the right to control the commercial use
of the essential personality features and to receive the benefits
resulting from such use.
4. _________________ may deter potential copiers and, in case
of an infringement, the copier will not be able to argue that
he or she acted innocently. Generally, a valid notice should
contain: the copyright symbol ‘©’ or the word ‘copyright’; the
year in which the work was reproduced or distributed; and the
name of the copyright owner. It is also advisable to include the
phrase ‘All rights reserved’.
5. _________________ is when a company tries to pass off its
goods or services as another’s without his/her consent, taking
advantage of the other’s brand, reputation or good will.
6. _________________ gives the individual the exclusive right
to control commercial use and exploitation of his image, voice
and likeness.
3) In a paragraph of 100–120 words, cover the issues involved in

merchandising of intellectual property rights employing the
bulk of the key vocabulary and the information you can find in
the exercise given above.
6. Skills Focus
Roleplay the following situation in groups using the information

and vocabulary of the Unit.
139
STUDENT A: You are going to launch your product on the mar-

ket. To be sure your brand is unique and to take measures agains
infringement appeal to a legal consultant.
STUDENT B: As a legal consultant give advice to an enterpre-

neuer about the steps they should take to protect the brand.
7. Writing
Стоит ли думать о мерчандайзинге?

Продажа прав интеллектуальной собственности может стать
прибыльным делом для многих предприятий, либо посредством про-
никновения в новые сферы использования имеющихся у них активов
ИС (путем продажи лицензий); либо посредством маркетинга и/
или рекламы их продуктов и услуг, используя популярность чужой
интеллектуальной собственности (путем покупки лицензии).
Для предприятий, которые владеют активами интеллектуальной
собственности, продажа по лицензии интеллектуальной собствен-
ности потенциальным мерчандайзерам может дать им следующие
преимущества.
Прежде всего, продажа по лицензии прав интеллектуальной
собственности (таких как, бренды, образцы или произведения ис-
кусства) другим компаниям может принести им прибыль в форме
лицензионных выплат и авторского вознаграждения. Она также по-
зволяет предприятиям присоединяться к новым категориям товаров
в относительно свободной от риска и рентабельной форме. Название
автомобиля «кадиллак», например, было продано по лицензии для
использования на товарах из кожи. Различные компании уплачивали
за это 5 или 10% от оптовой продажной цены. Аналогичным образом
художник может продать по лицензии другим лицам авторское право
на произведение искусства для воспроизведения, продажи и распро-
странения его произведения на розничных товарах.
Мерчандайзинг также может служить неоценимым средством
маркетинга, так как он расширяет возможности экспозиции бренда,
расширяет имидж бренда и способствует продвижению на новые
рынки. Применительно к спортивным командам мерчандайзинг, на-
140
пример, помогает усиливать чувство принадлежности среди болель-

щиков, которые с гордостью носят изделия с имиджем их команды,
такие как футболки и кепки.
Мерчандайзинг также может служить эффективным средством
привлечения спонсоров на специальные мероприятия, так как он
укрепляет взаимосвязь между брендом спонсора и мероприятием. Это
характерно для организаторов футбольных матчей, художественных
выставок, музыкальных концертов, благотворительных обедов и
т.д., когда спонсорам передаются права на изготовление и продажу
товаров с изображением товарного знака или символа мероприятия.
Unit 17. Free Market
1. Leadin

a) In which way does a free market contrast with a controlled
market?
b) How do supply and demand correlate?
c) How do free market relations stimulate economic progress?
2) Comment on the definition:
A free market is a market in which prices of goods and services are

arranged completely by the mutual consent of sellers and buyers.
2. Key Vocabulary
1) to undertake
2) tangible commodities
3) intangible services
4) to bid
5) a latticework of exchanges
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6) a medium
7) to allocate resources
8) an incentive
9) intricate
10) to coerce
11) exploitation
12) a depleted stock of capital
13) to falter
14) to hamper
15) to cripple
16) enforcement
17) flourishing
18) to violate
19) to spurn
20) to exalt
21) profound
22) laissezfaire
2) Explain the meaning of the words and word expressions above

by means of synonyms, antonyms and definitions.
3. Reading
Read the article, which follows and decide which of these state-
ments the writer would agree with. Why?
Use the following introductory phrases
It’s a well known fact that…; Though I can’t say for sure I think…; I
have no doubts that…
a) Free market economics is closely associated with laissezfaire eco-

nomic philosophy, which expands this environment by confining
government intervention to market failures.
b) A free market economy is “an economic system in which govern-
ments, rather than individuals, make the majority of decisions
regarding economic activities and transactions.”
c) When demand exceeds supply, suppliers can raise the price.
143
Free Market
Free market is a summary term for an array of exchanges that take

place in society. Each exchange is undertaken as a voluntary agreement
between two people or between groups of people represented by agents.
These two individuals (or agents) exchange two economic goods, either
tangible commodities or intangible services. Thus, when I buy a newspa-
per from a news dealer for fifty cents, the news dealer and I exchange
two commodities: I give up fifty cents, and the news dealer gives up the
newspaper. Or if I work for a corporation, I exchange my labor services,
in a mutually agreed way, for a monetary salary; here the corporation is
represented by a manager (an agent) with the authority to hire.
Both parties undertake the exchange because each expects to gain
from it. Also, each will repeat the exchange next time (or refuse to) because
his expectation has proved correct (or incorrect) in the recent past. Trade,
or exchange, is engaged in precisely because both parties benefit; if they
did not expect to gain, they would not agree to the exchange.
Given the supply of a good, an increase in its value in the minds of the
buyers will raise the demand for the good, more money will be bid for it, and
its price will rise. The reverse occurs if the value, and therefore the de-
mand, for the good falls. On the other hand, given the buyers’ evaluation,
or demand, for a good, if the supply increases, each unit of supply — each
baseball card or loaf of bread — will fall in value, and therefore, the price
of the good will fall. The reverse occurs if the supply of the good decreases.
The market, then, is not simply an array, but a highly complex, in-
teracting latticework of exchanges. In primitive societies, exchanges are
all barter or direct exchange. Two people trade two directly useful goods,
such as horses for cows. But as a society develops, a stepbystep process of
mutual benefit creates a situation in which one or two broadly useful and
valuable commodities are chosen on the market as a medium of indirect
exchange. This moneycommodity, generally but not always gold or silver,
is then demanded not only for its own sake, but even more to facilitate
a reexchange for another desired commodity. It is much easier to pay
steelworkers not in steel bars, but in money, with which the workers can
then buy whatever they desire. They are willing to accept money because
they know from experience and insight that everyone else in the society
will also accept that money in payment.
144
The modern, almost infinite latticework of exchanges, the market, is

made possible by the use of money. Each person engages in specialization,
or a division of labor, producing what he or she is best at. Production
begins with natural resources, and then various forms of machines and
capital goods, until finally goods are sold to the consumer. At each stage
of production from natural resource to consumer good, money is volun-
tarily exchanged for capital goods, labor services, and land resources. At
each step of the way, terms of exchanges, or prices, are determined by the
voluntary interactions of suppliers and demanders. This market is “free”
because choices, at each step, are made freely and voluntarily.
The free market and the free price system make goods from around
the world available to consumers. The free market also gives the largest
possible scope to entrepreneurs, who risk capital to allocate resources
so as to satisfy the future desires of the mass of consumers as efficiently
as possible. Saving and investment can then develop capital goods and
increase the productivity and wages of workers, thereby increasing their
standard of living. The free competitive market also rewards and stimu-
lates technological innovation that allows the innovator to get a head
start in satisfying consumer wants in new and creative ways.
Not only is investment encouraged, but perhaps more important,
the price system, and the profitandloss incentives of the market, guide
capital investment and production into the proper paths. The intricate
latticework can mesh and “clear” all markets so that there are no sudden,
unforeseen, and inexplicable shortages and surpluses anywhere in the
production system.
But exchanges are not necessarily free. Many are coerced. If a robber
threatens you with “Your money or your life,” your payment to him is
coerced and not voluntary, and he benefits at your expense. It is robbery,
not free markets, that actually follows the mercantilist model: the rob-
ber benefits at the expense of the coerced. Exploitation occurs not in the
free market, but where the coercer exploits his victim. In the long run,
coercion is a negativesum game that leads to reduced production, saving,
and investment, a depleted stock of capital, and reduced productivity and
living standards for all, perhaps even for the coercers themselves.
Government, in every society, is the only lawful system of coercion.
Taxation is a coerced exchange, and the heavier the burden of taxation
on production, the more likely it is that economic growth will falter
and decline. Other forms of government coercion (e.g., price controls or
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restrictions that prevent new competitors from entering a market) hamper

and cripple market exchanges, while others (prohibitions on deceptive
practices, enforcement of contracts) can facilitate voluntary exchanges.
This means that the key to the existence and flourishing of the free
market is a society in which the rights and titles of private property are
respected, defended, and kept secure. Some critics of the freemarket argue
that property rights are in conflict with “human” rights. But the critics
fail to realize that in a freemarket system, every person has a property
right over his own person and his own labor, and that he can make free
contracts for those services. Slavery violates the basic property right of
the slave over his own body and person, a right that is the groundwork for
any person’s property rights over nonhuman material objects. A common
charge against the freemarket society is that it institutes “the law of the
jungle,” of “dog eat dog,” that it spurns human cooperation for competi-
tion, and that it exalts material success as opposed to spiritual values,
philosophy, or leisure activities. On the contrary, the jungle is precisely
a society of coercion, theft, and parasitism, a society that demolishes lives
and living standards. The peaceful market competition of producers and
suppliers is a profoundly cooperative process in which everyone benefits,
and where everyone’s living standard flourishes (compared to what it
would be in an unfree society).
From Murray N. Rothbard
1) What are the arguments used by the author to back the idea
that only voluntary relations flourish on a free market?
2) Have another look at the article, say which words reflect the
author’s assessment of unfree exchanges.
3) How many parts does the article fall into?
4) Title each part of the article.
5) Develop each point of your plan.
146
1) Solve the following crosswordpuzzle:
Across
5. something real and concrete, possible to understand or realize (8)
6. something such as punishment or reward that induces action (9)
9. to reject or refuse disdainfully (5)
10. to break, disregard or defile (7)
11. to dominate, restrain or control forcibly; to bring about by force (6)
12. to weaken or be unsteady in purpose or action (6)
13. to disable or damage (7)
14. to pledge or commit (9)
16. noninterference, especially an economic doctrine that opposes
governmental involvement (12)
Down
1. having many complexly arranged elements (9)
2. an offer of a price (3)
3. an agent by which something is accomplished, conveyed or trans-
ferred (6)
147
4. doing well, succeeding (8)

7. unfair treatment by using your work and giving little in return
(12)
8. to prevent the free movement, action or progress. (6)
15. to inspire; to raise in status (5)
2) Look through the article again and pick out sentences contain-
ing discourse markers such as thus, on the contrary, etc. Trans-
late into Russian sentences where they are used. Demonstrate
their role in a text of your own speaking about a free market.
Exploit the key vocabulary.
6. Skills Focus
Write a paragraph about the development of your native country

in free market conditions. Support your synopsis with charts /
graphs. Cover the issue in 80–100 words.
7. Writing

СВОБОДНЫЙ РЫНОК — рынок, на котором цены на товары
или услуги устанавливаются только на основе спроса и предложения,
независимо от влияния какихлибо внешних факторов. Переход к
свободному рынку осуществляется через либерализацию цен, когда
государство частично или полностью отказывается от регулирова-
ния цен. Говорят, что свободный рынок существует при рыночной
экономике, когда всеми товарноденежными отношениями заведует
«невидимая рука» рынка — конкуренция.
В известной мере можно говорить, что свободный рынок пред-
ставляет саморегулирующийся механизм. Однако любая система
наряду с достоинствами имеет и свои недостатки. Применительно к
свободному рынку эти недостатки заключаются в следующем:
— рынок ведет к дифференциации доходов, а следовательно, и
уровней жизни населения;
— не создает условий для реализации права на труд;
148
— не гарантирует полную занятость населения;

— не создает стимулов для производства товаров и услуг кол-
лективного пользования;
— не создает мотиваций для фундаментальных научных иссле-
дований;
— не защищает среду обитания человека от загрязнения.
Unit 18. Criticisms of Marketing
1. Leadin
1) Work in small groups and discuss the issues of marketing sub-

ject to criticism.
2) Have you ever faced such problems? Give an example.
2. Key Vocabulary
1) to be guilty of
2) to exaggerate
3) to mislead
4) to subject smb to
5) to contend
6) to be valid
7) to be inferior to
8) excessive
9) biodegradable
10) proliferation
11) to appease
12) to gains clout
13) to track
14) to mishandle
15) a breach
150

English using different means: synonyms, antonyms, etc.
3. Reading
1) How do you account for the title of the article?

2) Scan the article and list the issues marketing is criticised for.
It ran through my mind that…, It is argued that…, I presume…
Marketing is a Mixed Blessing
While marketing is viewed as offering significant benefits to or-

ganizations and to society, the fact that marketing is a business function
operating in close contact with the public opens this functional area to
extensive criticism.
Among the issues cited by those who criticize marketing are:
a) Marketing Encourages People to Purchase What They Do
Not Need
Possibly the criticism most frequently made about marketing is that
marketers are only concerned with getting customers to buy whether
they want the product or not. While many marketers are guilty of ma-
nipulating customers into making unwanted purchases, the vast majority
understand that undertaking such tactics will not lead to loyal customers
and, consequently, is unlikely to lead to longer term success.
b) Marketers Embellish Product Claims
Marketers are often criticized for exaggerating the benefits offered
by their products. This is especially the case with the part of marketing
that engages in customer communication, such as advertising and sales-
people. The most serious problems arise when product claims are seen as
misleading customers into believing a product can offer a certain level of
value that, in fact, it cannot. But sometimes there is a fine line between
what a rational person should accept as a “reasonable exaggeration” and
what is considered downright misleading. Fortunately, many countries
offer customers some level of protection from misleading claims since such
business practices may subject the marketer to legal action. Again, using
151
such tactics is likely to lead to marketing failure as customers will not be

satisfied and will likely not return.
c) Marketing Discriminates in Customer Selection
A key to marketing success is to engage in a deliberate process that
identifies customers who offer marketers the best chance for satisfying
organizational objectives. This method, called target marketing, often
drives most marketing decisions, including product development and
price setting. But some argue that target marketing leads marketers to
focus their efforts primarily on customers who have the financial means
to make more expensive purchases. They contend that doing so inten-
tionally discriminates against others, especially lower income custom-
ers who cannot afford to purchase higher priced products. This group
ends ups being targeted with lower quality (and in some cases less safe)
products or for some groups, no product options. While this criticism is
often valid, it is worth noting that while many “lower quality” products
are inferior to current highend products, comparison of their quality to
similar products from just a few years ago shows there has been significant
improvement. For instance, low cost electronic equipment, such as digital
cameras, offer more features compared to low cost cameras of just a few
years ago. Thus, while certain customer groups may not be the target
market for certain new product offerings they may eventually benefit
from higherend products.
d) Marketing Contributes to Environmental Waste
In recent years one of the loudest complaints against marketing con-
cerns its impact on the environment. Those critical of marketing’s effect
on the environment point to such issues as:
• the use of excessive, non biodegradable packaging (e.g., use of
plastics, placing small products in large packages, etc.);
• the continual development of resource consuming products (e.g.,
construction of new buildings, golf courses, shopping malls, etc.);
• the proliferation of unsightly and wasteful methods of promotions
(e.g., outdoor billboards, direct mail, etc.).
Marketers have begun to respond to these concerns by introduc-
ing “green marketing” campaigns that are not only intended to appease
critics but also take advantage of potential business opportunities. For
example, auto makers see opportunity by creating new fuel efficient hybrid
vehicles, the demand for which has accelerated in the last few years. Also,
certain retailers are finding financial opportunity and promotional value
152
by asserting their marketing muscle to encourage customers to become

more environmentally responsible. This can be seen with retailers, such
as WalMart, that are shifting its inventory of light bulbs from standard
incandescent types to more efficient fluorescent products. It is expected
that as environmental activism gains political clout and more consumer
support, marketers will see even more opportunity to market environ-
mentally friendly products.
e) Marketing Encroaches on Customers’ Right to Privacy
Gathering and analyzing information on the market in which
marketers conduct business is a vital step in making good marketing
decisions. Often the most valuable information deals with customers’
buying behavior and especially determining which factors influence
how customers make purchase decisions. But to some consumer ad-
vocates digging deep into customer buying behavior crosses the line
of what is considered private information. Of most concern to privacy
advocates is marketers’ use of methods that track user activity. In par-
ticular, they are critical of the growing use of advanced technologies
that allow marketers to gain access to customer shopping and informa-
tion gathering habits. For instance, marketers can use highly advanced
techniques to track user activity on the Internet. Some marketers do
so using questionable practices, such as loading tracking software onto
a user’s computer, without the knowledge or permission of the user.
One type of software called adware allows marketers to monitor users’
website browsing activity and use this information to deliver advertise-
ments based on users Internet habits. Privacy issues are not limited to
concerns with online tracking; marketers also use technique to track
customers’ offline purchase activity. One example of offline tracking
occurs when retail stores match sales transactions to individual shop-
pers. This is easy to do when customers use purchase cards (a.k.a. loyalty
cards, discount cards, club cards, etc.) as part of the buying process.
Privacy issues are not restricted to marketing research. Other areas of
marketing have also experienced problems. For instance, there have
been several recent incidences, most notably those involving mishandled
credit card payment information, where a breach in customer privacy
has placed customers at risk. The issue of customer privacy is likely to
become one of the most contentious issues marketers face in the coming
years. If this continues marketers may soon face greater legal limits on
how they conduct business.
153
1) Look through the article again, then indicate the reasons which
allow to think that...
a) Too persuasive marketers disrupt customers’ loyalty.
b) Customers’ online and offline purchase activities are vulner-
able.
c) Marketers are expected to keep to the rules of environmental
protection.
d) Target marketing can discriminate some social layers.
e) Misleading advertising may subject marketers to be sued.
2) These sentences give examples of marketers deceitful activi-

ties. Think of a possible context for each sentence.
a) Marketers manipulate customers’ purchasing needs.
b) Most customers believe that product promotion should offer
a certain level of the product value.
c) Marketers are more concerned with financially successful
customers.
d) Marketing contributes to environmental waste.
e) Tracking user activity with the help of advanced technologies
can place a user at risk.
1) Find in the article synonyms for the following words and phrases:
a) to be accused of
b) to exaggerate product claims
c) to promote decisions
d) to pursue to buy
e) evident misleading
f) implement tactics
g) to investigate user activity
h) to inflict a punishment on marketers
i) to gain political influence
j) to insist
k) highmarket products
154
l) lower quality
m) marketing environmentallyfriendly products
n) violation of customer privacy
o) to be limited
p) to perform business
2) Summarize the article in a short paragraph of no more than

6. Skills Focus
Write an essay of your purchasing experience and assess the

marketing activities of the company you dealt with. Were there
any aspects the marketers can be criticized for?
7. Writing
Критики обвиняют систему американского маркетинга в нане-
сении вреда потребителям за счет 1) высоких цен, 2) использования
приемов введения в заблуждение, 3) использования методов навязы-
вания товаров, 4) продажи недоброкачественных или небезопасных
в обращении товаров, 5) использования практики запланированного
устаревания товаров и 6) низкого уровня обслуживания небогатых
потребителей.
Существует 3 фактора роста цен выше уровня: высокие издерж-
ки распределения, высокие затраты на рекламу и стимулирование,
чрезмерные наценки.
Предпринимателей часто обвиняют в использовании методов
введения в заблуждение, в результате чего потребитель проникается
уверенностью, что приобретает более весомую, чем на самом деле,
ценностную значимость.
Существует ряд отраслей деятельности, число жалоб на кото-
рые превышает показатели среднего уровня. Наиболее злостными
нарушителями в этом смысле являются страховые компании, из-
дательства, торговцы земельными участками по почте, подрядные
155
организации по обновлению жилищ, мастерские по ремонту авто-

мобилей и т.д.
Торговых агентов в ряде отраслей деятельности обвиняют в ис-
пользовании методов сбыта под нажимом, когда людей вынуждают
приобретать товары, о покупке которых они и не думали.
Еще одно критическое замечание касается отсутствия в товарах
необходимых им качеств. Вопервых, жалуются на плохое изготов-
ление товаров. Вовторых, жалуются по поводу того, что некоторые
товары вообще не несут никаких потребительских выгод. Втретьих,
жалуются по поводу заложенных в товары свойств безопасности. По
утверждениям критиков, в ряде отраслей промышленности произво-
дители сознательно делают так, чтобы их товары устаревали до того,
как им действительно потребуется замена.
Американскую систему маркетинга обвиняют в том, что она
предоставляет низкий уровень обслуживания небогатым потребите-
лям. Городской бедноте зачастую приходится совершать покупки в
небольших магазинах, торгующих товарами более низкого качества и
по более высоким ценам. Но как ни странно, прибыли этих торговцев
чрезмерными не назовешь.
Unit 19. Internet Marketing
1. Leadin
1) Work in small groups and share the ideas you associate with
the Internet marketing.
2) Think over the advantages of the Internet marketing in com-
parison with offline marketing.
3) Share your experience of Internet purchasing.
2. Key Vocabulary
1) Before you read the text, consult a dictionary to make sure

you know the following words and phrases, give their Russian
equivalents:
1) costeffective
2) marketing vehicles
3) intended audience
4) email campaign
5) to click on a link
6) a proactive medium
7) to leverage
8) to tailor
9) to implement
10) software packages
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11) ecommerce functionality

12) compelling
13) maintenance

English.
3. Reading
1) Before you read the article, look at the title and guess about its
contents. What do you already know about this issue? Make
use of the following expressions:
On second thought I think…; At all hazards…; Frankly speaking, I
don’t know up from down…
2) Scan the article and choose the opportunities to properly head-
line paragraphs 1–7.
a) Increase Sales
b) Fast, Efficient and Effective
c) Easy to Track and Evaluate
d) Low Cost
e) Improve Brand Awareness
f) Personalized Communication
g) Targeted and Qualified Audience
Email Marketing
What is one of the first tasks you undertake when you arrive at the
office? Chances are you read your email. Email use is rising fast. It has
become a part of our every day lives. With
people spending so much time on email, there
is an enormous opportunity to market to
them and build solid customer relationships.
Email has emerged to become one of the most
profitable and economical ways to manage
customer relationships, presenting marketers
with many opportunities and benefits.
158
1. …………….. Email advertising is the most cost effective way to reach

customers. When you consider how much money you spend on
traditional marketing vehicles, the value of email marketing is
evident. For instance, you do not have to worry about produc-
tion, the use of materials or postage — as you do for direct mail.
What is most attractive is that you market to an audience that
will receive your message and likely respond to it because they
have provided permission to accept it.
2. ………………….. When you create your own email list (as opposed
to buying it), it means you follow a process whereby you contact
your intended audience and gain permission to use their email ad-
dress for future communications from your company. This type
of marketing is very effective — particularly when you consider
direct marketing or other forms of traditional advertising where
you spend large amounts to reach an audience that may never
receive your message.
3. ………………….. Developing an email campaign is not as resource

hungry as other marketing activities. You simply develop the mes-
sage, identify your audience and send the message. There is also
the flexibility to alter the message for different audience groups.
Email marketing also generates immediate responses since the
call to action is within the message and provides an easy response
mechanism for customers. For example, all they have to do is click
on a link.
4. ………………………. Email marketing is a proactive medium to main-

tain contact with customers and build relationships with them.
Leveraging information from past interactions, you can identify
where your customers are in the buying process and engage them
with regular communication that is tailored to their needs with
personalized messages and timely information. You can deliver
information that provides the most satisfaction to them and is
most profitable to you.
5. …………………. Traditional marketing campaigns can take months

to plan, implement and evaluate. Email marketing campaigns can
159
be executed within days and results tracked immediately. Using

various software packages, you can determine how many custom-
ers received the email, how many opened it and how many bought
a product because of your message.
6. ……………………. In addition to providing an easy means to send out

coupons, discounts and other promotions, email marketing enables
you to provide a solid calltoaction to a specific offer, which is
easy to take advantage of. If you want to increase sales, a strong
offer is central to the success of your email campaign. It’s also
effective to include e commerce functionality within the email to
shorten the sales process.
7. …………………….. Email provides an easy medium through which to

gain the attention of a large audience, particularly if your message
is entertaining, compelling, or unique. The trick is to improve the
association of your message with the branding of your company.
For instance, if your audience is primarily young and have a
carefree attitude, you may provide a promotion to win an outdoor
adventure vacation.
The biggest challenge with email marketing is the collection and

maintenance of email addresses. To have a successful email campaign you
need to qualify your email addresses and ensure you have your customer’s
permission to use their address — otherwise the longterm costs could
negatively impact your business success. When you send an email mes-
sage to someone who does not give you permission to do so and does not
welcome the message, it is considered ‘spam’ email. To deliver successful
email campaigns, inform customers about how you will use their address,
develop a clear privacy clause, and make it easy for customers to remove
themselves from your list.
Once you have gathered the necessary information, it will be pos-

sible for you to measure the effectiveness of your campaign with real
data. What is your return on investment? What was the total revenue
generated from your campaign? How much did it cost to create and
send each message?
160
1) Read the article again and define its subjectmatter.
2) Decide which sentence best describes each paragraph.
3) List the factors of email marketing in order to back the assump-

tion that it has tremendous advantages in comparison with
offline marketing.
4) How would you account for the author’s idea of the author to
close the article with questions?
1) Complete the article below with missing expressions from the

box.
Internet Promotion — Advantages and Disadvantages

highest return on costly infrastructure and overwhelming marketing pay per
click inclusions marketing channels and logistics frustrating and costly venture
hassle free reduced budget minimising the disadvantages visibility
To most small business entrepreneurs, marketing or promoting their

products or services via the Internet can be a daunting task. However,
with adequate information small businesses can benefit significantly from
Internet Promotion while 1)………….. that it presents. In fact, it may prove
to be the marketing strategy that generates the 2) …………… investment.
The Internet has become the information superhighway for the buy-
ing public. Most persons prefer the 3) ………. transactions that Internet
shopping can offer. As a result, the Internet has become the most power-
ful selling tool. Internet Promotion offers cost effective ways for small
businesses to enhance their product or service distribution networks.
For example, the use of portals can help create new 4) …………, or provide
better or faster product access for customers.
In comparison to other forms of marketing, Internet Promotion
presents the advantage of 5) ………………. and storage costs, when compared
161
with printing brochures, producing television or radio advertisements or

managing a call centre.
Websites act as virtual storefronts, allowing businesses to stay open
24/7. Internet Promotion gives a business greater 6)……………, thereby
creating more opportunities for increasing its customers at relatively
low cost. Never before has it been easier for an upstart business to be able
to reach out to literally millions of potential customers and to position
themselves for success, without the need for 7) ………………. costs.
Small business may not have the resources to pay for paid directory
inclusion, 8) ……………….. and often have to rely solely on search engine
optimisation or word of mouth to drive traffic to their sites. With millions
of businesses selling the same product and services, competing with more
established businesses can be 9) …………… for small business.
Another disadvantage of promotion via the Internet is that the
customers and businesspersons are 10) ………….. . There is little personal
contact between customer and salesperson prior to and after the sales
is closed. Thus, the prospect for repeat sales may thus be diminished.
Entrepreneurs are therefore compelled to adopt marketing strategies to
drive online users back to their site.
2) Summarize the both articles in a short paragraph of no more than

6. Skills Focus
You are a manager of the Marketing Department of a company.

You realize the advantages of internet marketing for increasing
sales, promoting your company, attracting and retaining custom-
ers. Try to persuade the CEO to allocate more resources for this
part of business.
7. Writing
Еще несколько лет назад никто не подозревал о существовании по-
нятия «Интернетмаркетинг». Но сегодня стало понятно, что сеть — это
162
огромная аудитория и широкое поле деятельности для проведения

рекламных компаний. И если раньше слова «маркетинг» и «Интернет»
воспринимались как далекие друг от друга области деятельности, то
сегодня интернетмаркетинг — полноценная отрасль и отдельно функ-
ционирующий элемент, заинтересованность в котором со стороны
коммерческих организаций растет с каждым днем. Преимущества
интернетмаркетинга в том, что современные технологии позволяют
получить максимальную выгоду при минимальных затратах.
Интернетмаркетинг — это совокупность мероприятий, направ-
ленных на повышение рейтинга ресурса в сети, увеличение посещае-
мости и, как следствие, привлечение новых клиентов и рост компании.
Это также профессиональный анализ и исследование ситуации на
рынке, оценка возможности использования среды Интернет для
продвижения конкретных товаров или услуг, определение текущего
положения интернетпроекта и его перспектив. Ну и естественно,
интернетмаркетинг — это еще и всевозможная реклама. Причем
данное направление не ограничивается размещением платных объ-
явлений. Это также анализ рекламных площадок и разработка эф-
фективной рекламной стратегии, рассылка рекламной информации
и контекстная реклама.
Конечно нельзя рассматривать интернетмаркетинг как общую ин-
струкцию по применению ко всем ресурсам сети. Для каждого отдель-
ного сайта и для каждого конкретного клиента, интернетмаркетинг
— это прежде всего индивидуальный способ занять лидирующие
позиции.
Unit 20. International Marketing
1. Leadin

a) How would you define an international company?
b) What most famous international companies can you name?
c) Can you suggest the reasons for appearance and development
of international trade?
d) What methods can a company use to enter foreign markets?
2) Why do companies intend to become international? In small

groups, think over and make a list of possible advantages and
disadvantages for a company of expanding beyond its domestic
market. Add your arguments and examples.
2. Key Vocabulary
1) a venture
2) overhead costs
3) overriding
4) franchising
5) to diversify
6) to establish subsidiaries in foreign countries
7) to impact on smth
8) per capita
9) trade barriers
10) to tailor a product or service to each individual target market
164
11) to suffer losses

12) a preferential treaty
13) a proponent
14) an incentive
15) to impose limitations on trade through tariffs or quotas

3. Reading
1) Read the article and fill in the gaps with the words from the
box.
2) Find the answer to some of the questions from Leadin and
compare them with those suggested by you.
entering into joint venture arrangements utilize cheap labor

overriding factor domestic intermediaries
distribution channels market abroad a multinational corporation
hostcountry partner
International Marketing
International marketing takes place when a business directs its
products and services toward consumers in a country other than the
one in which it is located. While the overall concept of marketing is the
same worldwide, the environment within which the marketing plan is
implemented can be dramatically different from region to region. Com-
mon marketing concerns — such as input costs, price, advertising, and
distribution — are likely to differ dramatically in the countries in which
a firm elects to market its goods or services. Business consultants thus
contend that the key to successful international marketing for any busi-
ness — whether (a) _________ or a small entrepreneurial venture — is
the ability to adapt, manage, and coordinate an intelligent plan in an
unfamiliar foreign environment.
165
Businesses choose to explore foreign markets for a host of sound

reasons. In some instances, firms initiate foreign market exploration in
response to unsolicited orders from consumers in those markets. Many
others, meanwhile, seek to establish a business to absorb overhead costs
at home, diversify their corporate holdings, take advantage of domestic
or international political or economic changes, or tap into new or grow-
ing markets. The (b) ______, which stimulates international marketing
efforts is, of course, to make money, and as the systems that comprise the
global economy become ever more interrelated, many companies have
recognized that international opportunities can ultimately spell the dif-
ference between success and failure.
While companies choosing to market internationally do not share an
overall profile, they seem to have two specific characteristics in common.
First, the products that they (c) ______, usually patented, are believed
to have high earnings potential in foreign markets. Second, the manage-
ment of companies marketing internationally must be ready to make a
commitment to these markets. This entails far more than simply throwing
money at a new exporting venture. Indeed, a business that is genuinely
committed to establishing an international presence must be willing to
educate itself thoroughly on the particular countries it chooses to enter
through a course of market research.
Developing Foreign Markets

There are several general ways to develop markets on foreign soil.
They include: exporting products and services from the country of ori-
gin; (d) __________; licensing patent rights, trademark rights, etc. to
companies abroad; franchising; contract manufacturing; and establishing
subsidiaries in foreign countries.
New companies, or those that are taking their first steps into the
realm of international commerce, often begin to explore international
markets through exporting. Achieving export sales can be accomplished
in numerous ways. Sales can be made directly, via mail order, or through
offices established abroad. Companies can also undertake indirect export-
ing, which involves selling to (e) ___________ who locate the specific
markets for the firm’s products or services. Many companies are able to
establish a healthy presence in foreign markets without ever expanding
beyond exporting practices.
International licensing occurs when a country grants the right to
manufacture and distribute a product or service under the licenser’s
166
trade name in a specified country or market. Although large companies

often grant licenses, this practice is also frequently used by small and
mediumsized companies. Often seen as a supplement to manufacturing
and exporting activities, licensing may be the least profitable way of en-
tering a market. Nonetheless, it is sometimes an attractive option when
an exporter is short of money, when foreign government import restric-
tions forbid other ways of entering a market, or when a host country is
apprehensive about foreign ownership. A method similar to licensing,
called franchising, is also increasingly common.
The fourth way to enter a foreign market is through a joint venture
arrangement, whereby a company trying to enter a foreign market forms
a partnership with one or more companies already established in the host
country. Often, the local firm provides expertise on the intended market,
while the exporting firm tends to general management and marketing
tasks. Use of this method of international investing has accelerated
dramatically in the past 25 years. The biggest incentive to entering this
type of arrangement is that it reduces the company’s risk by the amount
of investment made by the (f) _________. A joint venture arrangement
allows firms with limited capital to expand into international arenas,
and provides the marketer with access to its partner’s (g) __________.
Contract manufacturing, meanwhile, is an arrangement wherein an ex-
porter turns over the production reins to another company, but maintains
control of the marketing process.
A company can also expand abroad by setting up its own manu-
facturing operations in a foreign country, but capital requirements
associated with this method generally preclude small companies from
pursuing this option. Large corporations are far more likely to embrace
this alternative, which often allows them to avoid high import taxes,
reduce transportation costs, (h) __________, and gain increased ac-
cess to raw materials.

a) What is said to be the key to successful international market-
ing for any business?
b) Why do businesses choose to explore foreign markets?
167
c) Which ways to develop foreign markets you find the most ef-
ficient? Which of them would you choose? Why?
2) Find the information about franchising and prepare a brief
report.
3) Find the words in the text which mean the following:
a) a motivating influence; stimulus;
b) an agreement between two parties concerning the purchase of
property at a price privately agreed between them;
c) a government grant to an inventor assuring him of the sole
right to make, use, and sell his invention for a limited period;
d) a group of people authorized by law to act as a legal personality
and having its own powers, duties, and liabilities;
e) business expenses, such as rent, that are not directly attrib-
utable to any department or product and can therefore be
assigned only arbitrarily;
f) a commercial undertaking characterized by risk of loss as well
as opportunity of profit.

verb noun adjective
franchise
license
practice
specific
cost
profitable
consumer
restriction
recognize
invest
168
2) Find 10 words from the key vocabulary and the previous text
in the word square. Some letters may be used several times.
s u b v q l f f p
y a s e k i i r u
r g i n e m n a t
a i d t s i c n l
q u o u n t e c r
i a t r e a n h o
d u l e c t t i l
e u c y i i i s i
p r e e l o v i a
p r o p o n e n t
t r e a t y b g m
3) Read the information about international marketing factors

and strategies.
a) Which of the given factors you consider to be the most
important? Why?
b) Take several international companies and analyze which of
the strategies mentioned below they use.
International Marketing Factors

Although firms marketing abroad face many of the same challenges as
firms marketing domestically, international environments present added
uncertainties which must be accurately interpreted. Indeed, there are
many factors that need to be researched and evaluated when preparing
an international marketing strategy. Key aspects of any potential foreign
market include: demographic and physical environment; political environ-
ment; economic environment; social and cultural environment; and legal
environment.
Demographic and Physical Environment. Elements that need to be
assessed that fit under this category include population size, growth,
and distribution; climate factors that could impact on business; shipping
distances; time zones; and natural resources.
169
Economic Environment. Factors in this area include disposable income

and expenditure patterns; per capita income and distribution; currency
stability; inflation; level of acceptance of foreign businesses in economy;
Gross National Product (GNP); industrial and technological development;
available channels of distribution; and general economic growth.
Social and Cultural Environment. This category encompasses a wide
range of considerations including literacy rates; general education levels;
language; religion; ethics; social values; and social organization.
Legal Environment. This includes limitations on trade through tariffs
or quotas; documentation and import regulations; various investment, tax,
and employment laws; patent and trademark protection; and preferential
treaties. These factors range from huge treaties such as North American
Free Trade Agreement (NAFTA) and General Agreement on Tariffs and
Trade (GATT) (replaced by World Trade Organisation (WTO) in 1995)
that profoundly shape the international transactions of many nations to
trade barriers erected by a single country.
Political Environment. Factors here include system of government
in targeted market; political stability; dominant ideology; and national
economic priorities.
International Marketing Strategies
International market efforts take many forms. Companies that con-

duct international business in several nations often favor what is known
as an ‘‘individualized’’ marketing strategy. This approach, which also is
often utilized by smaller businesses involved in only one or two foreign
markets, typically involves a comprehensive market research component
and a significant effort to tailor a product or service to each individual target
market. Under this approach, political, social, and economic factors are
important components of the marketing process.
Another strategy that is sometimes used is commonly called the
Global Marketing Strategy (GMS). This controversial approach largely
ignores differences between nations. Instead, its proponents claim that
while a business that sells its products in the same way in every market
may suffer losses in isolated instances, it will reap compensatory savings
elsewhere. GMS is based on the notion that consumers around the world
are growing more and more similar and that a standardized product and
marketing mix can achieve enormous economies, especially in advertis-
170
ing, packing, and distribution because they would not be changed. Pro-
ponents of this strategy believe that global travel and communication
have exposed more and more people to products and services that they
have heard about, actually seen, or even experienced — and now want.
Although differences exist in consumer preferences, shopping behavior,
cultural institutions, and promotional media, those who support GMS
are sure that these preferences and practices can and will change to be
more similar.
6. Skills Focus

Student A. You head the marketing department of a company.
The company plans to market abroad. You and your team are re-
sponsible for making all the necessary arrangements. This is the
first meeting with your colleagues on the subject where you are
to give the overview of the situation, plan the steps of fulfilling
the task, allocate the duties and draw conclusions.
Student B, C, etc. You are responsible to the senior manager
(Student A). Participate actively in the discussion: suggest ideas,
try to foresee strong and weak sides of the project, express your
viewpoints on the problem.
7. Writing
1) Write a memo to the directors of the company informing them

of the key ideas which came out of the meeting you attended (held),
using 170–200 words. Cover the information and vocabulary of the
Unit. Add your personal commentary.
2) Render into English the following sentences.

a) Компании обращаются к международной стратегии
развития в результате действия двух групп факторов: факторов
выталкивания (когда их возможности развития внутри страны
171
наталкиваются на препятствия) и факторов вытягивания (когда

появляется привлекательная перспектива ведения бизнеса за
рубежом).
b) Международный бизнес сталкивается с рядом трудностей:

различиями в культуре, возможными проблемами с курсами
и переводами валют, сложностями налогообложения и
ценообразования, приспособлением продуктов к требованиям
иностранных потребителей, сложностями выбора оптимальной
структуры организации для ведения международного бизнеса,
высоким политическим риском.
c) Наиболее распространенными являются следующие формы

ведения международного бизнеса: дочерние предприятия, совместные
предприятия, лицензирование, договор о франшизе, оффшорное
производство, экспорт и импорт.
ЭКСПОРТ СОВМЕСТНАЯ
ПРЕДПРИНИМАТЕЛЬСКАЯ
Косвенный маркетинг ДЕЯТЕЛЬНОСТЬ
Через отечественного
купцаэкспортера  Лицензирование
Через отечественного агента по экс- Подрядное производство
порту Управление по контракту
Через отечественную кооператив- Предприятия совместного вла-
ную организацию дения
Прямой экспорт
Через экспортный отдел, находя-

щийся в собственной стране

Через сбытовое отделение или фи-
лиал за рубежом ПРЯМОЕ
Через коммивояжеров по экспорт- ИНВЕСТИРОВАНИЕ
ным операциям
Через зарубежных дистрибьюторов

Сборочные предприятия
или агентов Производственные предпри-
ятия
172
Appendices
Word List
Unit 1 Unit 2
1) to put smth on the market 1) market research
2) marketing 2) an entrepreneur
3) a customer 3) to make a decision
4) a service 4) feasibility
5) to benefit (from) 5) annual budget
6) recruitment 6) annual report
7) to acquire 7) coherent
8) economy 8) to do smth in response to
9) economics smth
10) economical 9) a survey
11) economic 10) chamber of commerce
12) advertising 11) to solve a problem
13) to convince (smb of smth/ 12) to decide on smth
to do smth) 13) primary and secondary
14) sustainable competitive information
advantage (SCA) 14) emotional appeal
15) to execute 15) target audience
16) to compete 16) startup venture
17) to meet smb’s expectations 17) a mall
and desires 18) brand loyalty
18) promotion 19) a potential customer
19) distribution 20) reassurance
20) branding 21) a multiplechoice question-
21) retailing naire
22) a transaction 22) to analyze
23) to have an impact (on)
24) prospective Unit 3
25) encroachment 1) market segmentation
26) to offer 2) to fit
27) Chief Executive Officer 3) homogenous
(CEO) 4) a market niche
28) an objective 5) feasible
173
6) to divide the overall market 17) attendant

into segments 18) an assumption
7) to match smth to the needs
of smth Unit 5
8) to implement a strategy 1) to achieve/attain/accom-
9) to fall into distinct clusters plish objectives/goals
10) to yield 2) a broad set of interrelated
11) a trait choices
12) a benefit 3) to be implemented through
13) a pitfall smth
14) an approach 4) a loan
15) costly 5) personnel
16) to carve out a market niche 6) to enhance
17) geographic variables 7) to foster
18) behavioral bases 8) personal commitment
19) to lead to smth 9) morale
10) utilization of scarce re-
Unit 4 sources
1) a strategic triangle 11) fiscal
2) hierarchical 12) a prerequisite
3) i n t e r n a l a n d e x t e r n a l 13) to assert a plan
forces 14) to persuade
4) assets 15) an array of alternatives
5) an executive 16) to attain
6) personnel 17) sophisticated
7) to implement the chosen 18) a means
strategy 19) a tactical plan
8) societal expectations
9) to develop a realistic and Unit 6
feasible set of goals and 1) tangible
policies 2) intangible
10) generic strategies 3) a core product
11) viable 4) to augment
12) cohesive 5) durability
13) haphazardly 6) unsought goods
14) to endeavor 7) staple goods
15) a thrust 8) impulse goods
16) capability 9) processing
174
10) installations Unit 8

11) augmented 1) a wholesaler
2) a retailer
Unit 7 3) distribution networks
1) an entrepreneur 4) an outlet
2) to eliminate 5) logistics
3) fringe benefits 6) failure
4) overhead costs 7) an intermediary
5) depreciation 8) negotiation
6) rental or leasing costs 9) a jobber
7) membership dues 10) to fulfill orders
8) fixed and variable ex- 11) to forge better relationships
penses with smb
9) an attorney 12) to constitute a significant
10) utilities competitive advantage
11) delivery and freight charg- 13) ancillary
es 14) market coverage
12) gross profit margin 15) an assortment
13) equation 16) a shipment
14) to gauge 17) reputable
15) to be associated with 18) economic downturns
16) employee discount 19) to make adjustments to smth
17) damaged merchandise 20) replenishment
18) an assembly line worker 21) to justify
19) a clerk
20) an accountant Unit 9
21) a janitor 1) target customers/audience
22) to place a heavy burden on 2) rebates
smb 3) a product life cycle
23) in accordance with 4) to require handson dem-
24) home/office delivery onstration
25) to spark a price war 5) to get rapid feedback on the
26) upscale results of promotions
27) to be vulnerable to eco- 6) to be a cure for
nomic trends 7) maturity
28) to round the price down 8) to focus on shortterm results
29) offeven pricing 9) in the short term
30) loss leader pricing 10) to milk
175
11) incentive 3) a legal entity

12) pricevalue relationship 4) an intellectual property
13) to build awareness 5) 5) to commence legal pro-
14) a coupon ceedings for smth
15) buying decision criteria 6) infringement
16) redemption rates 7) to file suit
17) a retail chain 8) a service mark
9) to claim rights
Unit 10 10) jurisdiction
1) advertising 11) interchangeably
2) a medium, media 12) to intend
3) product placement 13) to integrate
4) to underwrite 14) to reside
5) an advertisement (ad) 15) a brand’s identity
6) public service announce- 16) a tag line
ments 17) mnemonic devices
7) to exceed 18) to emerge
8) spam 19) a strong retailer
9) target audience 20) to compete against
10) a brand image 21) to dominate a market
11) to generate positive public- 22) an outlet
ity
12) overt and covert Unit 12
13) subliminal 1) a customer retention
14) controversy 2) loyalty
15) commercials 3) apply to
16) a slogan 4) to maintain
17) child exploitation 5) comprehensive
18) corporate advertising 6) jeopardize
19) Public Relations (PR) 7) to acquire
20) an advertising agency 8) to quit
21) airtime 9) to undermine
22) Subliminal 10) abrasive
23) target rating point (trp) 11) overdue accounts
12) to schedule a contact
Unit 11 13) a prospect
1) a trademark / trade mark 14) a real estate agent
2) a sign 15) give smb a leg up
176
16) compensate 9) an invoice

17) to enhance 10) an authority
18) a bottom line 11) a loan
19) have a clue 12) inventory
13) a blanket order
Unit 13 14) obsolete
1) interpersonal communica- 15) a notation
tion 16) procurement
2) critical
3) peers Unit 15
4) subordinates 1) packaging
5) turbulent economic envi- 2) storage
ronment 3) a case
6) market saturation 4) to collate
7) restructuring 5) facilitate
8) staff meeting 6) calorific content
9) telephone discourse 7) to utilize
10) facetoface meeting 8) to prolong
11) to conduct a meeting 9) retailing
12) to alienate 10) sellby date
13) to allot 11) merchandising appearance
14) rapport 12) to monitor
15) main message 13) hygienic conditions
16) to delve 14) wastage
17) testimonial
18) to clarify Unit 16
19) visual aids 1) legal jargon
20) RAMP 2) merchandising of intellec-
tual property (IP) rights
Unit 14 3) lowpriced mass goods
1) profit margin 4) eyecatching
2) to shrink 5) purchasing power
3) a vendor 6) launch a product
4) streamline 7) produce counterfeit prod-
5) to delegate ucts
6) to duplicate 8) violations of IP rights
7) to place an order 9) to register a trademark for
8) a receipt goods
177
10) a copyright notice 4) to subject smb to

11) a licensee 5) to contend
12) to grant nonexclusive 6) to be valid
license 7) to be inferior to
13) to assign rights 8) excessive
14) infringement 9) biodegradable
15) to generate revenues 10) proliferation
16) to draft a contract 11) to appease
17) good sense 12) to gains clout
13) to track
Unit 17 14) to mishandle
1) to undertake 15) a breach
2) tangible commodities
3) intangible services Unit 19
4) to bid 1) costeffective
5) a latticework of exchanges 2) marketing vehicles
6) a medium 3) intended audience
7) to allocate resources 4) email campaign
8) an incentive 5) to click on a link
9) intricate 6) a proactive medium
10) to coerce 7) to leverage
11) exploitation 8) to tailor
12) a depleted stock of capital 9) to implement
13) to falter 10) software packages
14) to hamper 11) ecommerce functionality
15) to cripple 12) compelling
16) enforcement 13) maintenance
17) flourishing 14) pay per click inclusions
18) to violate 15) return on
19) to spurn 16) overwhelming
20) to exalt 17) hassle free
21) profound 18) visibility
22) laissezfaire
Unit 20
Unit 18 1) a venture
1) to be guilty of 2) overhead costs
2) to exaggerate 3) overriding
3) to mislead 4) franchising
178
5) to diversify 13) a proponent

6) to establish subsidiaries in 14) an incentive
foreign countries 15) to impose limitations on
7) to impact on smth trade through tariffs or
8) per capita quotas
9) trade barriers 16) licensing patent rights
17) to make a commitment to
10) to tailor a product or serv-
smth
ice to each individual tar- 18) to grant the right
get market 19) to preclude
11) to suffer losses 20) Gross National Product
12) a preferential treaty (GNP)
List of Abbreviations in Marketing

Notes:
1) * Currency officially replaced by the euro on 1 January 2002.
2) Some currencies with the same name have different values.
AC advanced country ATS automatic transfer from a sav-

A/C account, account current ings account; automatic transfer
ACT advanced corporation tax service account
AD antidumping
ad advertisement BAT best available technology
ADC advanced developing country b/d barrels per day
adm. administration, administra- BNB basic needs budget
tive, administrator, admission, BOY beginning of the year (or of
admitted an accounting period)
AESOP allemployee share owner- bp base points (of an interest rate)
ship plan (UK) BP balance of payments
AGM Annual General Meeting
AGNP augmented gross national C aggregate consumption
product CA confluence analysis; chartered
agt agent, agreement accountant
AIM Alternative Investment Mar- CAPM capital asset pricing model
ket (London) CAR compounded annual rate (of
ALM assetliability management interest)
a/m above mentioned CATS Computerassisted Trading
AMA American Marketing As- System
sociation CBD central business district (of
AMEX American Stock Exchange a city)
ANOVA analysis of variance CC Competition Commission
APC average propensity to con- (UK)
sume CCT compensating common tar-
APR average percentage rate (of iff; compulsory competitive
interest) tendering
ARIMA autoregressive integrated CD Certificate of Deposit
moving average CEO Chief Executive Officer
ARM adjustable rate mortgage CES constant elasticity of substi-
ARMA autoregressive moving tution
average CET common external tariff
180
CEV constant elasticity of vari- EBIT earnings before interest and

ance taxes
CFA chartered financial analyst EBITDA earnings before interest,
CFF compensatory financial facil- tax, depreciation and amortiza-
ity tion
CGE computable general equilib- ECB European Central Bank
rium EEA exchange equalization account
CGT capital gains tax EEC European Economic Com-
CIS cash incentive scheme munity
CMO collateralized mortgage EFA expedited funds availability
obligation; Chief Marketing EFF extended fund facility
Officer EFT electronic funds transfer
CO Certification Officer EFTA European Free Trade As-
COLA cost of living adjustment sociation
CPE centrally planned economy EMS European Monetary System
CPI consumer price index EMU European Monetary Union
CPP current purchasing power EMV expected monetary value
CPR common pool resources EP export promotion
CPS current population survey ERA effective rate of assistance;
CS crosssection data exchange rate agreement
CTD certificate of tax deposit ERM Exchange Rate Mechanism
CTT capital transfer tax ERP European Recovery Program
CVD countervailing duty (‘Marshall Aid’)
CW comparable worth ESA European System of Accounts
ESOP Employee Stock Owner-
d penny; denarius ship Plan
DC developed country EU expected utility; European
DCE domestic credit expansion Union
DCF discounted cash flow
div net dividend net FAS free alongside ship
DME decentralized market econ- FDI foreign direct investment
omy Fed Federal Reserve System
DPP direct product profitability FIBS financial information and
DRC direct resource cost budgeting systems
DRY disposable real income FIFO first in, first out
DTR doubletaxation relief FIML full information maximum
DUP directly unproductive profit likelihood
seeking FOB free on board
181
FPE factor price equalization HRM human resource manage-

FRN floating rate note ment
FSBR Financial Statement and
Budget Report (UK) i rate of interest
FTO foreign trade organization I net investment
FTZ free trade zone IAS International Accounting
FY fiscal year (USA) Standard
IATA International Air Travel As-
G3 Group of Three (Germany, sociation
Japan, USA) IBEC International Bank for Eu-
G7 Group of Seven (Canada, ropean Cooperation
France, Germany, Italy, Japan, IBEL interestbearing eligible li-
UK, USA) ability
G8 Group of Eight (G7 plus Russia) IBRD International Bank for
GAR guaranteed annuity rate Reconstruction and Develop-
GATS General Agreement on ment
Trade in Services ICC income–consumption curve;
GATT General Agreement on Tar- Interstate Commerce Commis-
iffs and Trade sion (USA)
GDP gross domestic product ICFC International and Commer-
GE general equilibrium cial Finance Corporation
GMS Global Marketing Strategy ICOR incremental capital–output
GNP gross national product ratio
GSP generalized system of pref- IDA International Development
erences; gross social product; Association
gross state product IEG International Events Group
GSPS generalized system of prefer- IET interest equalization tax
ence schemes IFC International Finance Cor-
poration
HA housing association ILS indirect least squares
HICP harmonized index of con- IMF International Monetary Fund
sumer prices IMM International Monetary
HIPC heavily indebted poor coun- Market
tries IO industrial organization
HLT highleveraged takeover IP intellectual property
HOBS home and office banking IPC integrated pollution control
systems IPE International Petroleum Ex-
HR human resources change
182
IPO initial public offering LRE likelihood ratio statistic

IPR intellectual property rights LSE London Stock Exchange; Lon-
IR individually rational don School of Economics
IRA individual retirement account Ltd private limited company (UK)
(USA) Ltip longterm incentive package
IRR internal rate of return LTU longterm unemployed
IS investment saving; import sub- LTV labour theory of value
stitution
ISE International Stock Exchange M money supply; imports
IT information technology M&A merger and acquisition
MA moving average
k a thousand MABP monetarist approach to the
K capital stock balance of payments
MAP market antiinflation plan
L liquidity; a measure of the US MBA Master of Business Admin-
money supply istration
LBO leveraged buyout MBO management by objectives;
lc local currency management buyout
LCH lifecycle hypothesis MCA marginal cost of abate-
LDC less developed country ment; Monetary Compensation
LDMA London Discount Market Amount
Association MCT mainstream corporation tax
LEA Local Enterprise Agency MES minimum efficient scale
LFA less favoured area MEW measure of economic wel-
LFPR labour force participation fare
rate MFC most favoured customer
LGS liquid assets and government MFN most favoured nation
securities MFR minimum funding require-
LIFFE London International Fi- ment
nancial Futures Exchange ML maximum likelihood
LIFO last in, first out MLE maximum likelihood estima-
LIML limited information maxi- tor
mum likelihood MLH minimum list heading
LLC limited liability company MLM multilevel marketing
(USA) MLR minimum lending rate
LMBO leveraged management MMC money market certificate
buyout MMDA money market deposit
LPM linear probability model account
183
MMMF money market mutual NIPA National Income and Prod-

fund uct Accounts (USA)
MNC multinational corporation NOW negotiable order of with-
MPA marginal principle of al- drawal
location NPE nonprofit enterprise
MPC marginal propensity to con- NPV net present value
sume; Monetary Policy Com- NRV net realizable value
mittee (UK) NSA nonsterling area
MPD marginal private damage NTB nontariff barrier
MPM marginal propensity to NYSE New York Stock Exchange
import
MPP marginal physical product OASDHI Old Age, Survivors, Dis-
MPS marginal propensity to save ability and Health Insurance
MRP marginal revenue product (USA)
MRR minimum reserve require- OB organizational behaviour
ments OCD other checkable deposits
MRS minimum rate of substitu- ODA official development assist-
tion ance
MSA Metropolitan Statistical OECD Organization for Economic
Area Cooperation and Development
MSD marginal social damage OEEC Organization for European
MTFS Mediumterm Financial Economic Cooperation
Strategy OID original issue discount
OLG overlapping generations
N The quantity of employment model
NAFA net acquisition of financial OLS ordinary least squares
assets OM Options Model
NAFTA North American Free
OMA orderly market agreement
Trade Area
OMO open market operation
NAIRU nonaccelerating inflation
OPEC Organization of Petroleum
of unemployment
Exporting Countries
NAV net asset value
OSA overseas sterling area
NDP net domestic product
OTCM overthecounter market
NEW net economic welfare
NIC newly industrialized country
PAF percentage annual fixed (rate
NIE new institutional economics
of interest)
NIF note issuance facility
PAYE pay as you earn (UK)
NIMBY ‘not in my backyard’
184
PCC price–consumption curve QALY qualityadjusted life years

PCT primary care trust (UK) QR quantitative restrictions
PDI personal disposable income
PDV present discounted value r coefficient of correlation
P/E price–earnings ratio RAMP Rapport, Attention, Main
PEP personal equity plan (UK) message, and Plan
PFI private finance initiative RBC real business cycle
(UK) RD reserve deposits (of a bank)
PIK payment in kind R&D research and development
PIN personal identification number RE rational expectations
plc public limited company (for- REP regional employment pre-
merly Co. Ltd) (UK) mium
POP pointofpurchase REPO repurchase agreement
PPB planning, programming, RER real exchange rate
budgeting ROCE return on capital employed
PPF production possibility fron- ROI return on investment
tier ROW rest of the world
PPI producer price index RPB recognized professional body
PPP purchasing power parity; RPI retail price index (UK)
public–private partnership RPM resale price maintenance
PQLI physical quality of life index RRR real rate of return
PRF population regression func- RSA regional selective assistance
tion RSG rate support grant
PRP performancerelated pay; RTB right to buy
profitrelated pay RTM rent to mortgage
PRT petroleum revenue tax RUF revolving underwriting fa-
PSA public service agreement cility
(UK)
PSBR public sector borrowing SAYE save as you earn (UK
requirement scheme)
PSDR public sector debt repay- SCA sustainable competitive ad-
ment vantage
PSE public service employment SCP structure–conduct–perform-
PSL private sector liquidity (UK) ance
PSNB public sector net borrowing SDR special drawing rights
PTA preferential trading arrange- SEM special employment measures
ment; preferential trade agree- SERPS State Earningsrelated
ment Pension Scheme
185
SETS Stock Exchange Electronic TWER tradeweighted exchange

Trading Service (UK) rate
SIC Standard Industrial Classifi- UBR uniform business rate
cation UNDP United Nations Develop-
SITC Standard International ment Programme
Trade Classification UPF utility possibility frontier
SLM segmented labour market USM Unlisted Securities Market
SME small and mediumsized UTV utility theory of value
enterprise UVI unit value index
SNIG sustained noninflationary
growth VAN valueadded network
SOE stateowned enterprise; small VaR value at risk
open economy VAT valueadded tax
S&P 500 Standard & Poor 500 VER voluntary export restraint
SRF sample regression function VIE voluntary import expansion
SRO selfregulatory organization
SWING sterling warrant into WIPO World Intellectual Prop-
giltedged stock erty Organization
SWOT strengths, weaknesses, op- WTO World Trade Organization
portunities, threats (business WWW World Wide Web
appraisal technique)
X exports
TAA trade adjustment assistance XD exdividend
TAPS Transatlantic Payment xr ex rights
System
TDP tradable discharge permit Y income — often real disposable
TFR total fertility rate income
TINA ‘there is no alternative’ Y’ld Gr’s yield gross
TIP taxbased incomes policy
TNC transnational corporation ZBB zerobase budgeting
TOT terms of trade ZIRP zero interest rate policy
TQM total quality management ZPG zero population growth
Currencies of the World
Afghani: Afghanistan Dalasi: Gambia

A/Guilder: Netherlands Antilles Danish krone: Denmark, Faroe
Australian dollar: Australia, Kiri- Islands, Greenland
bati, Nauru Islands, Tuvalu Denar: Macedonia
Bahama dollar: Bahamas Deutschmark: Germany*
Baht: Thailand Dinar: Algeria, Bahrain, Sudan
Balboa: Panama Republic, Tunisia
Barbados dollar: Barbados Dirham: Morocco, United Arab
Belgian franc: Belgium* Emirates
Belize dollar: Belize Dominican peso: Dominican Re-
Bermuda: Bermudian dollar public
Bolivar: Venezuela Dong: Vietnam
Boliviana: Bolivia Drachma: Greece*
Brunei dollar: Brunei Dram: Armenia
Burundi franc: Burundi East Caribbean dollar: Antigua,
Canadian dollar: Canada Dominica, Grenada, Montser-
Cedi: Ghana rat, St Christopher, St Lucia,
CFA franc: Benin, Burkina Faso, St Vincent
Cameroon, Central African Egyptian pound: Egypt
Republic, Chad, Congo, Co’ Escudo: Azores, Madeira, Portu-
te d’Ivoire, Equatorial Guinea, gal*
French Community/Africa, Ethiopian birr: Ethiopia
Gabon, GuineaBissau, Mali Falkland pound: Falkland Islands
Republic, Niger Republic, Sen- Fiji dollar: Fiji Islands
egal, Togo Republic Florin: Aruba
CFP franc: French Pacific Islands Forint: Hungary
Chilean peso: Chile French franc: Andorra, France*,
CI dollar: Cayman Islands Guadeloupe, Monaco, Reґu-
Colombian peso: Colombia nion Island, St Pierre & Mique-
Colon: Costa Rica, El Salvador lon
Comoros franc: Comoros Gibraltar pound: Gibraltar
Congo franc: Congo Democratic Gold cordoba: Nicaragua
Republic Gourde: Haiti
Cuban peso: Cuba Guarani: Paraguay
CV escudo: Cape Verde Guilder: Netherlands*
Cyprus pound: Cyprus Guinea franc: Guinea
187
Guyanese dollar: Guyana Markka: Finland*

Hong Kong dollar: Hong Kong Mauritius rupee: Mauritius
Hryvna: Ukraine Metical: Mozambique
Icelandic krona: Iceland Mexican peso: Mexico
Indian rupee: India MG franc: Madagascar
Iraqi dinar: Iraq Naira: Nigeria
Jamaican dollar: Jamaica Namibian dollar: Namibia
Jordanian dinar: Jordan Nepalese rupee: Nepal
Kenya shilling: Kenya New dinar: Yugoslavia
Kina: Papua New Guinea New kip: Laos
Koruna: Czech Republic, Slovakia New shilling: Uganda
Krona: Sweden New sol: Peru
Kroon: Estonia New Zealand dollar: New Zealand,
Kuna: Croatia Pitcairn Islands
Kuwaiti dinar: Kuwait Ngultrum: Bhutan
Kwacha: Malawi, Zambia Norwegian krone: Norway
Kyat: Burma Ouguiya: Mauritania
Lari: Georgia Pa’anga: Tongo Islands
Lats: Latvia Pakistan rupee: Pakistan
Lebanese pound: Lebanon Pataca: Macao
Lek: Albania Peso: Argentina, Philippines
Lempira: Honduras Peso Uruguayo: Uruguay
Leone: Sierra Leone Pound: St Helena, United King-
Leu: Moldavia, Romania dom
Lev: Bulgaria Pula: Botswana
Liberian dollar: Liberia Punt: Irish Republic*
Libyan dinar: Libya Quetzal: Guatemala
Lilangeni: Swaziland Rand: South Africa
Lira: Italy*, San Marino, Turkey, Readj kwanza: Angola
Vatican Real: Brazil
Litas: Lithuania Renminbi: China
Local franc: French Guiana, Mar- Rial: Iran, Yemen Republic
tinique Rial Omani: Oman
Luxemburg franc: Luxemburg* Riel: Cambodia
Maltese lira: Malta Ringgit: Malaysia
Maluti: Lesotho Riyal: Qatar, Saudi Arabia
Manat: Azerbaijan Rouble: Belarus, Russia
Marka: Bosnia Herzegovina Rufiya: Maldive Islands
188
Rupiah: Indonesia Syrian pound: Syria

Rwanda franc: Rwanda Taiwanese dollar: Taiwan
Schilling: Austria* Taka: Bangladesh
Seychelles rupee: Seychelles Tala: Western Samoa
Shekel: Israel Tenge: Kazakhstan
Shilling: Somali Republic, Tan- Tolar: Slovenia
zania Trinidadian dollar: Trinidad &
Singapore dollar: Singapore Tobago
Solomon Islands dollar: Solomon Tugrik: Mongolia
Islands US dollar: Ecuador, Guam, Puerto
Som: Kyrgyzstan Rico, Turks and Caicos, United
Spanish peseta: Andorra, Balearic States of America, Virgin Islands
Islands, Canary Islands, Spain*, Vatu: Vanuatu
Spanish ports in North Africa Won: North Korea, South Korea
Sri Lanka rupee: Sri Lanka Yen: Japan
Sum: Uzbekistan Zimbabwian dollar: Zimbabwe
Surinam guilder: Surinam Zloty: Poland
Swiss franc: Liechtenstein, Swit-
zerland
Job Interview Questions
Think of the answers to these sample questions and discuss them

with your group mates.
Tell me about a time when you had to handle a morale issue with your
staff.
• When morale is low, I try to treat everybody a little gentler. I
figure if I can cut them some slack, they won’t be so grouchy. Some-
times just avoiding someone who is having a problem is the best way to
handle a situation. It’s more difficult when others join in with the same
issues. I have held meetings and tried to communicate, and sometimes
it has helped.
• Morale is not something that you handle with my staff. There are
just some people who are not very happy in their jobs. I figure if that’s
the way they feel, maybe it’s best if they find opportunity elsewhere.
Morale is never high in the department where I work, and that’s one
of the reasons I want to leave. It’s difficult to work around people with
attitude.
• When I took over the department, there was an issue of people leav-
ing. I sat down with the staff to find out what was going on. The problem
was they were expected to crosstrain and didn’t like it. It was my job to
convince them that it was for the best. They eventually bought into the
program after I showed them the benefits of doing it that way.
What attracted you to this job?

• A friend of mine works here, and he told me it was a good place
to work. I like the fact that it is a casual environment. I also heard that
flextime was the norm here. I know you offer stock options, and that’s
part of the attraction. I want to work for a company that appreciates
creativity.
• I found the job on the Internet, and it looked like you were doing
some really interesting projects. I talked to some people I know who are
analysts, and they said your company has pretty solid backing. It inter-
ested me enough to send in my resume.
• I’ve been searching for a while now to find a company that had
a business model and corporate philosophy like yours. My background
is in marketing, and my strength is analyzing market conditions. I
190
am excited and interested in the idea of developing business through

ecommerce.
Tell me about yourself.

• I was born and grew up in Texas. I got married and moved to New
York, where I started taking courses toward my MBA. When I completed
my degree, I was offered an opportunity to work for a major company. I’ve
worked there for eight years. I have three kids now and am looking for
an opportunity to reap some bigger rewards. I like marketing and want
to continue to stay in the industry.
• I’ve always been good at, and liked, writing and public relations.
I’ve worked for different companies in a variety of situations and have
received excellent commissions and bonuses. I am a hard worker, and I
work well under pressure. I have pretty good communication skills and
get along with almost everyone.
• I have six years of marketing and sales experience, working in a va-
riety of industries from retail to advertising. For the past two years, I have
been working in the ecommerce industry. I have a solid grasp of the online
marketplace and online publishing. I have strong analytical and computer
skills. Furthermore, I’m a team player, and I thrive on challenge.
Do you have any questions? (Asked by the interviewer, usually at the

end of the interview.)
• No, not really. You seemed to have covered all the basics, and I
have done some research on the company on my own.
• I was wondering about stock options. Also, benefits and when they
would go into effect. Does the company match in your 401k plan? Also,
what is the yearly vacation allowance? Do you have a flexible spending
plan?
• Yes, I do. What would you say makes your company stand out from
the competition? What do you see as the future trends for the industry?
Does the company have a fiveyear plan in place? What would you say
is the best thing about working for this company?
What are your strengths and weaknesses?

• My strengths are that I am reliable and dependable. I am also a
hardworker. My weakness is that I get impatient when I don’t have the
data I need to do an analysis, because someone didn’t meet a deadline.
191
• I don’t really have any weakness that I can think of. Maybe I could
use some more computer training. My strengths are probably my abil-
ity to deal with a wide variety of people. I usually don’t get upset easily,
even when I’ve had to handle some highpressure situations. I am also
pretty analytical.
• My strengths are my energy and enthusiasm. I am very
resultsdriven and meet deadlines and goals. As far as weaknesses, I
really enjoy my work, and sometimes I put in too much time. By being
aware of my tendency to overwork, I have learned to pace myself more
and work smarter.
Give me an example of a marketing strategy you’ve used.

• A customer was launching a new ecommerce product. After
consolidating the market research data, I met with the editorial, crea-
tive and media departments. Working together, we planned the media
exposure, including TV, radio, print, newspaper and interactive. We also
put together a direct mail campaign. I tracked expenses and data using an
Excel spreadsheet. It really was a great campaign, with lots of creativity
and originality. What paid off most was the behindthescenes analysis
I had coordinated.
• We do marketing strategizing continuously, and we deal with
different technologies and industries. We conduct market research and
analysis, generating sales leads. We try to keep a handle on the competi-
tors and emerging trends and update services appropriately.
• That would depend on what the project was. Sometimes I iden-
tify research issues, sometimes I develop research designs, and maybe
I execute and analyze consumer research. It all depends on the project
and what I’m trying to accomplish. I respond to the information I have
to work with.
What are your salary expectations?

• I was making $60,000 at my last job, and that didn’t include bo-
nuses. I would expect at least that and a 15 to 20 percent increase.
• I really need more information about the job before we start to
discuss salary. I’d like to postpone that discussion until later. Maybe you
could tell me what is budgeted for the position and how your commission
structure works.
192
• I’m sure whatever you offer will be a fair amount for a person with
my qualifications. Salary is not the most important factor to me. I’m
looking for opportunity.
What experience have you had in marketing that qualifies you for this
position?
• My background and experience involves working on a variety of
projects and jobs in the marketing industry. Most of my experience has
been working with data. Now I’d like to become more involved in the
rest of the marketing process. I am interested in having new experiences
and improving my skills.
• For the last five years, I have been working for a public relations
firm. I have a lot of writing and media experience. I’m wellversed in
market research methods, target market identification and customer
segmentation strategies. My computer and communication skills are
excellent. I’m very energetic and feel I have a lot to offer as a part of a
team.
• Since I’m not sure what this job involves, I’m not sure what part
of my background applies. I have worked in marketing and sales off and
on for the past five years. I like working with people and have been suc-
cessful in all the jobs I’ve held. I know this job would be both a challenge
and an opportunity for me to develop.
Why did you leave (are you leaving) your last position?
• The company went through a reorganization, and I was one of 50
people who were let go. We could see the handwriting on the wall be-
forehand. Things had started to deteriorate and they began to cut back
on some of our marketing. I probably would have left anyway.
• I’m not finding the job as interesting as I used to. There hasn’t
been any new product development in some time. I want to find a job
that is stimulating, where I can grow and be challenged. I’m looking for
job satisfaction, and I want to have more balance in my life by cutting
back on my travel.
• I’ve set some goals for myself, and my career, but unfortunately,
there are no advancement opportunities in my current company. I have
begun to explore available options before I spend too much time in a job
where I cannot advance. My goal is to continue to improve myself.
193
Here is a list of some other or similar questions which job inter-

viewers may ask an applicant and possible answers to them. Read and
discuss them with your group mates.
1. Do you speak a foreign language?

(If you speak another language fluently, by all means say so. This is
an asset. However, if you took Spanish or French in school but cannot
remember more than two or three phrases, simply mention that you un-
derstand the language better than you speak it. Try this answer:)
I studied _______ (Spanish/French/German) in ________ (high
school/college) and enjoyed it. I’d like to get some language tapes and
increase my fluency.
2. How much time do you spend with your family?

(Be careful to project a balanced attitude here. This can be a touchy
subject. You might be dealing with an interviewer who is work oriented
and lives by the credo “Work is not only the way to make a living; it’s the
way to make a life.” Or you might be talking to one who recognizes the
importance of family. Before you answer, scope out the situation: Look
around the office for family photos, desk accessories made by children,
and the like. The following is your basic generic answer. Customize it as
necessary.)
I suppose I spend an average amount. My family is important to me.
My great relationship with them gives me the best reason in the world
to succeed in my career. In that way, they are an inspiration. I have a
responsibility to my job as well as to my family, since I’ve made a strong
commitment to both. I like to be there for them when they need me, but
they also understand and accept the commitment I have made to my work.
So I spend my time accordingly.
3. How have your education and training prepared you for the
job?
My education gave me the tools to succeed, and my training taught
me how to do the job properly. Before I really knew what my job entailed,
I only thought I would perform it well.
The training gave me the opportunity to apply my education.
By having the chance to do the work expected of me in advance, I
194
gained the confidence to meet future challenges and the experience

to do so successfully. The real challenge starts where the education
and training end.
Studying diligently and practicing constantly really paid off.
Now I am confident in my work and have earned the respect of my
coworkers.
4. What are your educational goals for the future?

My goal is to do everything possible to keep learning and improving.
Things change so rapidly that we cannot rely on what we learned 10, 5,
even 2 years ago. Some of my education will be informal reading, research,
and simply paying attention to what is going on. You can learn a lot just
by listening to the right people and watching them.
5. Name three things you learned in school that could be used on

this job.
Many of the subjects I studied in school specifically apply
to this field, including ____________, ______________, and
_________________. Yet what school really taught me that has worked
throughout my career was how to solve problems, how to apply myself,
and, finally, how to set a goal and achieve it.
6. What was your favorite subject in college?

(Even if the answer to this question is scuba diving or mountain
climbing, try to think of a subject that will mean something to a prospec-
tive employer. Invariably, this will be something job related or business
oriented.)
The turning point for me was when I took a course in __________.
It opened my eyes to the possibilities in this business, and I found I had
the potential to be successful at it.
7. Do you consider yourself to be a smart person?

Yes. That means I’m smart enough to know my opinion is biased.
The kind of intelligence required on the job isn’t always measured by an
IQ test. Only through coping with different situations and interacting
with other people can intelligence truly be judged. By these criteria, I’m
above average in intelligence.
195
When it comes to working with people, solving business problems,

and making decisions—especially those related to the job—I’m as good
as or better than anyone else. There are many things I don’t know, but I
can learn. In that way, a smart person is one who asks questions, listens
carefully, and realizes nobody knows everything.
8. How important is job security to you?
Security is a basic need, but I know that there are no guarantees in
life. The only true job security comes from making a meaningful contribu-
tion to my employer. If I know my job will be around for as long as I excel
at it, I am able to concentrate on my work and remain focused. The best
environment is one where employer and employee form a partnership for
their mutual benefit.
The first priority of any job is the work itself. Everything else is sec-
ondary. As long as I am challenged by my work and respected by those
around me, I’m confident that I’ll be able to continue getting the work
done properly, always meeting or exceeding expectations.
9. Do you get bored doing the same work over and over again?
Not really. If the work involves my job, I don’t get bored because
it is my responsibility to complete it to the best of my ability. Work is
not necessarily entertaining; it is something that must be routinely and
successfully accomplished time after time. That’s why they call it “work”
and why I am being paid to do it.
If someone gets bored with repetition, he or she might have a seri-
ous problem. Sometimes you just have to set your preferences aside and
focus on what needs to be done—even if it isn’t something new. I guess
I’ve always been too busy doing my job to get bored.
10. Do you prefer working as a member of a team or would you

rather work alone?
Working as part of a team is one of the most important elements in a
successful career and life. If you can’t work well on a team, you probably
can’t work and communicate well on a oneonone basis either.
While teamwork is very important, I can work just as hard alone.
Though more pressure to produce might exist, it would also prove to be
a challenge. Whether I prefer to work as part of a team or alone depends
on the best way to complete the job. Either way, I would work equally
hard with the initiative required for success.
196
11. What are the reasons for your success?

I always give 100 percent. Some people try to prove themselves to
someone else, but I think sometimes it’s better to prove to yourself that
you can succeed. No one is a better judge of your success than you, and
you know what you can do. When I do a job well, it gives me personal
satisfaction that carries over into everything I do.
Working very hard does not prevent me from getting along with all
sorts of people. By respecting everyone as an individual as you advance
in responsibility, you not only make a good impression, but also you gain
the respect of others.
Paying attention to details is also important. I usually like to recheck
everything I do, just in case I missed something the first time. I also find
it beneficial to at least review my work that has my name on it, even if
completed by a secretary or someone else in my department. Proper del-
egation requires some supervision.
Eventually, hard work, respect for others, and attention to detail
pay off, and they make the job more enjoyable and challenging along
the way.
12. Do you like to work with people?

(If yes, or if it’s a teamwork situation:)
Without a doubt. If we’re to meet our goals and keep up with the
growth that’s predicted for this industry, we’ll have to organize and coor-
dinate the efforts of many people. There’s a synergy in teamwork that can
accomplish far more than the same individuals could working alone. When
people work together, there’s nothing like it. The energy and creativity
they activate in each other are many times greater—the whole is greater
than the sum of its parts.
(If the job requires solitary hours analyzing reports or crunching
numbers:)
I’ve always worked well with others, but I have no difficulty getting
my work done independently. I’m a selfstarter. I can set my goals, or I
can take assigned goals and complete them. I’m comfortable with myself.
13. If you could be anyone, whom would you like to be?

Generally, I’d say I’m pretty happy with who I am and what I have
done with my life. If I could be anything or anyone I wanted, it would be
a person who used (his/her) business skills to make the world a better
197
place. There’s a great law of life that I try to live: The best way to succeed
is by helping others to succeed.
14. Would you be willing to take a lie detector test?

Yes, I have nothing to hide and always make it a practice to tell the
truth. But if taking a lie detector test is a requirement of employment
here, I’d like to know the purpose and accuracy of the test.
15. Name three books you’ve read in the past six months.
(Keep your eye on the business bestseller list and mention three cur-
rent titles. Managementoriented ones will give you the highest marks.)
16. Do you have a competitive nature?

Yes. A competitive nature is necessary to be successful in a corporate
environment. But competitiveness doesn’t mean vying with my coworkers
for recognition, raises, or promotions. If I do my work well and always
give my best effort, the rewards will come. I’ve found that’s the only real
way to succeed.
But I do compete with myself. I’m always trying to break my own
record—to do something better or faster than I did it the last time. I’m
especially competitive when it comes to improving my company’s product
or service.
There’s so much potential for accomplishment when you’re part of a
vibrant company like this one.
17. What is your idea of success?

To wake up in the morning and feel good about what I will achieve
during the day, to meet each new challenge with confidence in my ability,
and to have the respect of my fellow employees.
If I am successful, I will continue to be given new challenges that
develop my abilities and make me even more productive. Having fulfilling
work to do, doing it well, and participating with others in reaching our
goals—that’s my idea of success.
18. How well do you cope with tension?

I’ve adopted several techniques. There is so much available on the
subject that I’ve developed a program that works well for me. I eat prop-
erly, exercise regularly, and take vitamins.
198
Also, I try to keep a perspective on the situation. There’s nothing

you can’t accomplish if you set your mind to it. History has proven that.
My history, too. We’ve all had to turn mountains into stepping stones.
Eventually, as one success spawns another, those mountains start to look
smaller. They’re not—it’s just that selfconfidence and experience make
you bigger. I realize no stressful situation lasts forever, so I just set my
sights high and keep climbing without looking down. I’ve already been
there. Climbing is so much more fun when you realize what awaits you
at the top.
19. What can you tell me about yourself?

I’m a selfstarter, highly motivated, energetic, and results oriented,
but cooperative and a team player as well. I’m a good communicator and
can help others focus on a goal and motivate them to attain it.
Enthusiasm and energy are contagious, and I’m infected with both.
As a result, the groups I’ve worked with become highly charged and very
successful.
I’m persuasive, but I also have good listening skills. I’m sensitive to
my environment and those around me. I value excellence.
20. Wouldn’t you be better off in another company?

No, I’m sure I wouldn’t. The type of opportunity and challenge I seek
are here. Furthermore, my skills and experience match what you’re look-
ing for. I’ve researched my options thoroughly, and this company comes
out on top for me. That’s why I’m here.
21. How would a friend describe you?

Likeable, energetic, and an organizer who is always thinking of dif-
ferent ways to make being with friends fulfilling and enjoyable. Someone
who keeps personal commitments, protects personal confidences, and
makes the time to help the community. A family person whose house
is in order.
22. Why do you want this job?

Because of the challenge and the opportunities at _________.
I’m well qualified for it, and this is exactly the kind of ____________
(competitive/creative/ progressive/technically oriented—use an adjec-
tive appropriate to the company and type of work) atmosphere I’ve been
199
looking for. My career goal is _____________, and this job would allow
me to develop my potential further while actively participating in that
kind of work.
I’ve been offered a number of other opportunities; but, after evaluat-
ing those jobs and companies, I decided not to make a move. Making a
job change is a major decision, a longterm commitment that I take very
seriously.
After researching the history and future plans of ______________,
meeting people who work here, and seeing the kinds of jobs there are to
be done, it seems like a perfect fit!
23. How long will you stay with the company?

As long as I continue to learn and develop my capabilities. As with
any partnership, I intend to fulfill my commitment and meet challenges
as they come.
It’s my hope that, as long as I perform well on the job and make
contributions, I’ll be considered a valuable employee. And as long as I’m
making a contribution that is valued, I’ll have no reason to leave. How-
ever, if for any reason I don’t meet the company’s expectations, I don’t
expect to remain on the payroll. So I look forward to staying as long as
I’m productive.
24. When do you expect a promotion?

I would like my career to continue progressing as well as it has in the
past. But I’m a realist. I know promotions aren’t given, they’re earned.
When I’ve mastered my present position, have improved it with my ideas,
have prepared myself to take on new responsibilities, and have trained
someone to take over my job, I’ll be ready for a promotion.
Keys
Unit 1
Comprehension Check
1) B.
3) True/ False statements: 1) F; 2) T; 3) T; 4) T; 5) F; 6) F; 7) F; 8) T.
Vocabulary Development
3) branding, benefit, promotion, customer, compete, convince, mar-
ket, transaction, economy, research.
4) 1 H; 2 J; 3 G; 4 I; 5 B; 6 A; 7 D; 8 E; 9 F; 10 C.
a) evaluating; b) holding; c) cash; d) data; e) execute; f) accomplish;
g) profits; h) market share; i) strive; j) respond.
5) a) retention; b) data; c) competition; d) impact.
Unit 2
3) survey, entrepreneur, feasibility, coherent, appeal, annual, solve,
poll, validity, sampling.
4) 1) audience research; 2) product research; 3) brand research;

4) psychological research; 5) scanner research; 6) database research;
7) postsales or customer satisfaction research; 8) closedend ques-
tionnaire; 9) openend questionnaire; 10) focus groups.
Unit 3
2) segmentation, cluster, trait, variable, yield, costly, niche, approach,
fit, pitfall.
3) 5, 3, 6, 2, 1, 4.
201
Unit 5
2) Across: 1. array; 3. executive; 5. objective; 7. foster; 9. fiscal;
10. tactical; 12. set.
Down: 2. prerequisite; 4. personnel; 6. loan; 8. commitment;
11. utilization.
3) 1) executive summary; 2) description of business; 3) description

of products and/or services; 4) description of management and
organization structure; 5) market analysis; 6) sales and market-
ing plan; 7) production plan; 8) financial plan; 9) implementation
schedule; 10) contingency plans; 11) other details.
Unit 6
1) 1. tangible; 2. intangible; 3. core product; 4. actual product;
5. augmented product; 6. durable products; 7. nondurable
products; 8. end users 9. convenience goods; 10. staple goods;
11. impulse goods; 12. emergency goods; 13. shopping goods;
14. specialty goods; 15. industrial goods; 16. accessory equipment;
17. Installations; 18. component parts; 19. raw materials
Unit 7
3) 1) manufacturer’s suggested retail price; 2) price bundling; 3)
multiple pricing; 4) costplus pricing; 5) competitive pricing; 6)
pricing above competition; 7) pricing below competition; 8) price
lining; 9) odd pricing.
Unit 8
Comprehension Check
1) a) logistics; b) outlet; c) agent; d) management; e) consumer;
f) negotiation; g) insurance.
3) a) F; Distribution channels are just one component of the overall

concept of distribution networks, which are the real, tangible sys-
202
tems of interconnected sources and destinations through which

products pass on their way to final consumers.
b) F; Channel structures range from two to five levels.
c) T.
d) T.
3) a) commission agents; b) sole distribution agreement; c) sales
force; d) independent distributors; e) patent; f) shelf space;
g) franchise agreement; h) copyright.
Unit 9
Comprehension Check
3) a) feedback; b) product life cycle; c) criteria; d) trial; e) strategy;
f) rebate.
2) Across: 1. discount; 2. incentive; 3. value; 4. promotion; 6. order.
Down: 5. coupon; 7. trial; 8. wholesaler.
Unit 10
2) placement, advertising, publicity, spam, slogan, media, subliminal,
commercial, covert.
3) f) target audience; h) copywriters; a) fullservice; i) careful con-

sideration; g) creative fields; j) a media plan; e) departments;
d) purchase media access; c) manage; b) in terms of.
Unit 11
2) a) entity; b) consumer; c) to comprise; d) to commence legal
proceedings; e) infringement; f) unauthorized; g) an issue; h) ti
integrate; i) a spokesman; j) external; k) a retailer; l) to dominate;
m) an outlet.
203
Unit 12
Comprehension Check
3) 1) c; 2) a; 3) e; 4) b; 5) d.
2) a) for; b) to; c) into; d) at; e) on; f) with; g) up on; h) to; i) for ….on.
Unit 13
Reading
b)
2) Across: 1. subordinate; 3. critical; 6. market saturation 8. delve;
10. turbulence; 11. restructuring.
Down: 2. testimonial; 4. allot; 5. peer; 7. alienate; 9. rapport.
Unit 14
1) 1. shrink; 2. vendor; 3. streamlined; 4. to delegate; 5. obsolete;
6. profit margin; 7. overall.
2) 1. of; 2. to; 3. under; 4. at; 5. from; 6. for; 7. with; 8. within; 9. upon;

10. for; 11. for, with; 12. to.
Unit 15
3) 1. packaging; 2. to utilize; 3. to recycle; 4. retailing; 5. to optimize;
6. hygienic conditions.
Skills Focus
2) 1b; 2d; 3g; 4f; 5a; 6h; 7c; 8e.
Unit 16
2) 1c; 2f; 3a; 4d; 5b; 6e.
204
Unit 17
1) Across: 5. tangible; 6. incentive; 9.spurn; 10. violate; 11. coerce;
12. falter; 13. cripple; 14. undertake; 16. laissezfaire.
Down: 1. intricate; 2. bid; 3. medium; 4. flourish; 7. exploitation;
8. hamper; 15. exalt.
Unit 18
1) a) to be guilty of; b) to embellish product claims; c) to drive de-
cisions; d) to get customers to buy; e) downright misleading; f)
to undertake tactics; g) to track user activity; h) to subject the
marketer to legal action; i) to gain political clout; j) to contend;
k) highend product; l) excessive; m) green marketing; n) a breach
in customer privacy; o) to be restricted; p) to conduct business.
Unit 19
Reading
2) 1d; 2g; 3b; 4f; 5c; 6a; 7e.
1) 1) minimising the disadvantages; 2) highest return on; 3) hassle
free; 4) marketing channels and logistics; 5) reduced budget;
6) visibility; 7) costly infrastructure and overwhelming marke-
ting; 8) pay per click inclusions; 9) frustrating and costly venture;
10) isolated.
Unit 20
Reading
1) a) a multinational corporation; b) overriding factor; c) market
abroad; d) entering into joint venture arrangements; e) domestic
intermediaries; f) hostcountry partner; g) distribution channels;
h) utilize cheap labor.
205
Comprehension Check
3) a) incentive; b) treaty; c) patent; d) corporation; e) overheads;
f) venture.
2) subsidiary, quota, preclude, treaty, proponent, venture, license,
limitation, incentive, franchising, tailor.
Bibliography
1. Государственный образовательный стандарт высшего профессионального

образования для специальности 080111 «Маркетинг».
2. Boone, Louise E., and Kurtz, David L. Contemporary Marketing, 7th ed. New
York, NY: Dryen/Harcourt Brace. 2002.
3. Farese, Lois, Kimbrell, Grady, and Woloszyk, Carl. Marketing Essentials. Mis-
sion Hills, CA: Glencoe/McGrawHill.2001.
4. Haim, Alexander, and Charles D. Schewe. The Portable MBA in Marketing.
Wiley, 2002.
5. Kotler, Philip, and Armstrong, Gary. Marketing: An Introduction, 3d ed. En-
glewood Cliffs, NJ: PrenticeHall, 2003.
6. Kotler & Keller, Marketing Management — 12th Edition, 2005.
7. Paliwoda, Stan. The Essence of International Marketing. PrenticeHall, 2004.
Интернетресурсы:
ru.wikipedia.org
www.4p.ru
www.knowthis.com
marketingtoday.com
marketing.about.com/od/marketingglossary/
Учебное издание
Воронцова Ирина Игоревна

Газарян Людмила Ивановна
Уваров Валерий Игоревич
Insights into Marketing

Введение в маркетинг
Учебное пособие
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Электронное издание для распространения через Интернет.
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E-mail: flinta@mail.ru; WebSite: www.flinta.ru.

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Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

И.И. Воронцова, Л.И. Газарян, В.И. Уваров

INSIGHTS INTO MARKETING

2-е издание, стереотипное

© И.И. Воронцова, Л.И.Газарян,

Учебное пособие “Insights into Marketing” предназначено студен-

В пособии используются аутентичные тексты разнообразных

1. Leadin. Введение в тематику модуля. Презентационный ма-

Раздел Appendiсes включает:

В пособии делается акцент на выполнение практических за-

Формы учебной деятельности:

Unit 1. About Marketing in General

1) Consult a dictionary and write out the transcription and Rus-

2) Make 3–5 sentences of your own with the words (groups of

use a product or service because they have a need, or because it provides

Two Levels of Marketing

Operational Marketing executes marketing functions to attract and

1 E. Jerome McCarthy is a professor at Michigan State University, USA, and an

internationally known marketing consultant. He is one of the authors of the influential

retail), which geographic region or industry, to which segment

2) Refer closely to the article and answer the following questions:

d) What is ‘marketing mix’?

3) Say whether these statements are true or false. Correct the

benefit something выгода; advantage, disadvan- beneficiate,

2) Explain the difference between the words ‘economy’ and ‘eco-

3) Find 10 words from the key vocabulary in the word square.

4) Here are some additional words to use. Match up the words on

MacroMarketing and MicroMarketing

Macromarketing refers to the overall social process that directs the

5) There is a logical connection among three of the four words in each

6) Study the Useful Language phrases. Then discuss the second

1) Write a summary covering the information of the both texts,

Организация, которая ориентирована на рынок или потребителя,

Unit 2. Market Research

1) Consult a dictionary and write out the transcription and Rus-

2) Make 3–5 sentences of your own with the words (groups of

company, secondary information generally tracks trends within a market,

1) Refer closely to the article and answer the following questions:

tion. Which of them are more accurate and useful?

2) Discuss the following statements from the text, illustrating

Word Definition Equivalent Synonyms Antonyms Derivatives

costly of great price дорогой, expensive, cheap, cost, costs

2) Find definitions to the following words and word combinations.

closedend audience scanner openend ques- postsales or cus-

focus groups brand re- product psychological database

Types of Market Research

1) _________ is a research on who is listening, watching, and reading

2) ___________ includes simple, inperson research such as taste

3) ____________ helps advertisers to find out whether consumers have

4) ___________ tries to determine why people buy certain products

5) ___________ records what was actually purchased. This is valuable

6) ___________ shows up on thousands of lists and databases that are

8) ___________ includes such common activities as filling out a com-

9) Over time, market researchers have grown increasingly aware that

10) Inperson, sitdown discussions around a table with groups of con-

5) Study the Useful Language phrases. Then render the second

Starting your position

In small groups, roleplay the following situation using the

1) Write a short letter (100–150 words) to your friend from related

Методы маркетинговых исследований

Методологически все маркетинговые исследования используют

качественного маркетингового исследования) чтобы исследовать

Unit 3. Market Segmentation

1) How would you explain the words “segment” and “segmenta-

1. Leadin. Введение в тематику модуля. Презентационный ма-

Macromarketing refers to the overall social process that directs the

closedend audience scanner openend ques- postsales or cus-

2) ___________ includes simple, inperson research such as taste

10) Inperson, sitdown discussions around a table with groups of con-

In small groups, roleplay the following situation using the

10. A ____ plan is used to guide and control daytoday activities.

In groups, roleplay the following situation using the information