Министерство образования и науки Российской Федерации

Федеральное государственное бюджетное образовательное учреждение

высшего профессионального образования
«Хабаровская государственная академия экономики и права»
Кафедра иностранных языков и межкультурной коммуникации

Английский язык
Business English – Marketing
Учебное пособие
для бакалаврантов 3-го – 4-го курсов
направления подготовки 38.03.02 «Менеджмент»
профиль «Международный маркетинг»

Хабаровск 2015
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ББК Ш 143.21
Х 12
Английский язык. Business English – Marketing : учеб. пособие для бакалаврантов
3-го – 4-го курсов направления подготовки 38.03.02 «Менеджмент» профиль
«Международный маркетинг / сост. Н. В. Лобастова. – Хабаровск : РИЦ ХГАЭП,
2015. – 116 с.

Рецензенты : И. Г. Гирина, доцент

кафедры английской филологии и
межкультурной коммуникации
ДВГГУ, канд. филолог. наук;
Т. Н. Лобанова, доцент кафедры
лингвистики и межкультурной
коммуникации ТОГУ, канд. пед.
наук

Утверждено
издательско-библиотечным
советом в качестве учебного
пособия

Учебное издание

Английский язык

Business English – Marketing

Учебное пособие
для бакалаврантов 3-го – 4-го курсов
направления подготовки 38.03.02 «Менеджмент»
профиль «Международный маркетинг»

Редактор Г.С. Одинцова

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© Хабаровская государственная академия экономики и права, 2015
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Предисловие
Учебное пособие “Business English – Marketing» предназначено для бакалаврантов
3-го – 4-го курсов направления «Менеджмент» (профиль «Международный
маркетинг»), изучающих дисциплину «Маркетинг» и владеющих английским языком
на уровне Pre-intermediate – Intermediate. Пособие обеспечивает дисциплину
«Профессиональный иностранный язык», которая изучается в 4-м – 8-м семестрах в
объёме 254 часа практических занятий (88 часов отводится на изучение курса
«Маркетинг») и 250 часов самостоятельной работы студентов (88 часов отводится на
изучение курса «Маркетинг»).
Цель учебного пособия – развитие и совершенствование у студентов навыков чтения
и устной речи в рамках профессиональной тематики. Данное учебное пособие
предполагает расширение словарного запаса у студентов по темам маркетинга,
повышение знаний и правильного использования терминологии маркетинга, а также
совершенствование коммуникативных речевых навыков на основе выполняемых
упражнений.
Учебное пособие “Business English – Mаркетинг” предназначено для аудиторной
работы, а также для самостоятельной работы студентов вне аудитории.
Учебное пособие состоит из 11 разделов по следующим темам маркетинга: роль
маркетинга, комплекс маркетинга, маркетинговый план, маркетинговые стратегии,
SWOT анализ, маркетинговые исследования, поведение потребителей и сегментация
рынка, товары, ценообразование, размещение товара, стимулирование сбыта. Каждый
раздел учебного пособия включает тексты по перечисленным темам и ряд упражнений
для работы с активной лексикой, используемой в текстах. Тексты для чтения содержат
ключевые понятия и проблемы маркетинга и сопровождаются следующими заданиями:
подобрать английские эквиваленты к русским словам и словосочетаниям, подобрать
соответствующие дефиниции к словам и словосочетаниям, найти в тексте слова и
словосочетания согласно предлагаемым дефинициям, заполнить пропуски
соответствующими словами, ответить на вопросы, сделать перевод с русского на
английский, сделать сообщение по проблеме.
Кроме того, в сборник включены ролевые игры и учебные деловые ситуации для
развития и совершенствования разговорных навыков по изучаемой тематике. Ролевые
игры предполагают парную работу или работу в группах, ограниченное время
подготовки и выполнения и принятие решений по проблеме с обязательным
использованием ключевых фраз и выражений по изучаемой теме. Учебные деловые
ситуации основаны на ситуациях, близких к реальным, и тесно связаны с основным
текстом. Изучение проблемы, анализ и обсуждение возможных вариантов её решения,
поиск наилучшего решения, поиск фактов и аргументов, позволяющих прийти к
соглашению, – это умения, которые отрабатываются студентами в процессе работы с
учебной деловой ситуацией.
При составлении данного учебного пособия была использована оригинальная
зарубежная литература.
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Unit 1
The role of marketing
Read the text and answer the questions given below.

Marketing touches everyone’s life. It is the means by which a standard of living is

developed and delivered to people. Many people confuse marketing with selling, but in
fact marketing occurs both before and after the selling effect. Marketing actually
combines many activities: marketing research, product development, distribution,
pricing, advertising, personal selling, and others. All of them are aimed at identifying,
serving, and satisfying consumer needs while at the same time meeting the
organization’s goals. The main goal of marketing is to satisfy individual and
organizational objectives.
Marketing begins and ends with the customer. Truly successful marketing
understands the customer well. The product or service satisfies the customer’s need so
perfectly that the customer is eager to buy it. The product almost sells itself. Of course
this will only happen if the product or service is better than those of competitors. The
core concepts of marketing are needs, wants, demands, products, exchange,
transactions, and markets.
Companies are always looking for marketing opportunities - possibilities of filling
unsatisfied needs in areas in which they are likely to enjoy a competitive advantage,
due to their particular competencies. Market segmentation, dividing a market into
submarkets or segments according to customers’ requirements or buying habits,
determines marketing opportunities. Once a target market has been identified, a
company has to decide what goods or services to offer, always remembering the
existence of competitors.
Marketers do not only identify consumer needs, they can anticipate them by
developing new products. They have to design marketing strategies and plan
marketing programs, and then organize, implement, and control the marketing efforts.
As soon as the basic offer, for example a product concept, has been established, the
company has to think about the marketing mix – the set of elements of a marketing
program, their integration, and the amount of efforts that a company can make to
influence the target market. The best-known classification of these elements is the
Four P’s: Product, Price, Promotion and Place or the marketing mix.
Aspects to be considered in developing a product include its quality, its features,
style, brand name, size, packaging, services and guarantee. Price includes
consideration of things like the basic list price, discounts, the length of the payment
 5

period, and possible credit terms. Place in a marketing mix includes such factors as
distribution channels, coverage of the market, locations of points of sale, inventory
size, and so on. Promotion groups together advertising, publicity, sales promotion, and
personal selling.
The next stage is to create long-term demand, perhaps by modifying particular
features of the product to satisfy changes in consumer needs or market conditions.
Marketing can also involve the attempt to influence or change consumers’ needs and
wants. Companies try to do this in order to sell their products. In other words
marketers must be good at managing the level, timing and composition of demand,
since actual demand can be different from what the organization wants.
Marketing practices have a major impact on people in our society. Interest in
marketing is growing as more and more organizations in the business, international,
and non-profit sectors recognize the ways in which marketing can improve a
company’s performance.
Marketing is a dialogue over time with specific groups of customers, whose needs
you understand in depth and for whom you develop an offer with differential
advantage over the offer of competitors.

Comprehension / interpretation

1. What activities does marketing combine? What are all these activities aimed at?
Who do the marketers principally focus their attention on?
2. What is meant under marketing opportunities of a company? How should a
company act to enjoy its advantages and keep control over this or that market
segment?
3. What is a marketing mix? Give the definition of each P.
4. Why is the creating of long-term demand so vital for marketing? What is
marketing?
5. Why have many nonprofit organizations adopted marketing techniques in
recent years? For example, how does your academy market itself to attract new
students?
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Language focus

1. Translate the following words and word partnerships into English. Look at
the text to help you.
Исследование рынка, разработка товара, распределение,
ценообразование, реклама, личные продажи, нацеливаться на,
определение нужд потребителей, обслуживание, удовлетворение
потребительских нужд, достигать цели компании, желать приобрести
товар, конкуренты, ключевые концепции маркетинга, нужды,
желания, потребности, обмен, сделки, насыщение
неудовлетворённых потребностей, иметь конкурентное преимущество,
сегментация рынка, потребительский спрос, покупательские привычки,
определять маркетинговые возможности, определять целевой рынок,
предвидеть нужды потребителей, разрабатывать маркетинговые стратегии,
осуществлять маркетинговую деятельность, установить (создать) концепцию
товара, комплекс маркетинга, оказывать влияние на целевой рынок,
рассматривать (изучать) цену по прейскуранту, скидка, платёжный
период, условия кредита, каналы распределения, охват рынка,
расположение точек продаж, размер материально-технических запасов,
продвижение товара, объединять, гласность, стимулирование сбыта,
долгосрочный спрос, модифицировать (видоизменять) товарные
характеристики, рыночные условия, хорошо справляться с, управлять
уровнем спроса, управлять выбором времени (сроками), управлять
структурой спроса, реальный спрос, оказывать влияние на людей,
работа компании, глубоко понимать, отличительное преимущество
(выгода).

2. Read the text and match the words and phrases from the text with their
definitions.
1) to anticipate a) to meet the needs
2) to modify b) to monitor the enterprise’s activity
3) transaction c) a limited group of people or area at which
4) long-term demand the company is especially directed
5) to satisfy the demand d) the most important or central part of
6) brand name anything
7) to have an impact on e) to discover; to detect; to recognize
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8) to implement f) all the goods in one place; stock

9) timing
10) to enjoy the advantage
11) coverage of the market
12) marketing efforts
13) core concepts
14) target market
15) to control
16) inventory
17) to identify
g) choosing exactly the right moment for
doing something
h) to possess; to have the advantage
i) the amount of space given by a company
to a particular place
j) to change a plan, particularly slightly
k) demand lasting for a long time
l) to expect; to imagine in advance what
will happen
m) marketing activity
n) a type of product produced by a particular
maker
o) to put into practice; to carry out
p) bargain, deal
q) to have an effect/influence on

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

customers place product service develop price profit

time distribute produce promote want needs
Marketing is concerned with getting the right (1) ….. to the right (2) ….. at the
right (3) ….. . Marketing is about meeting consumer (4) ….. at a (5) …..
Marketing makes it easier for (6) ….. to do business with you. First marketing aims
to find out what people (7) …….. ; then (8) …….. and (9) …….. a (10) …….. or
(11) …….. that will satisfy those wants; and then determine the best way to
(12) …….. (13) …….. and (14) …….. the product or service.

4. “Selling focuses on the needs of a seller; marketing on the needs of the buyer.
Selling is preoccupied with the seller’s need to convert his product into cash;
marketing with the idea of satisfying the needs of the customer…’
Theodore Levitt, marketing expert
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The selling concept and the marketing concept are frequently confused. Look at
selling and marketing approaches and speak on the difference between selling
and marketing concepts.

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

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

Selling approach: focus – products;

means – selling and promoting;
ends – profits from selling more volume
Marketing approach: focus – customer needs;
means – marketing activities affecting customers;
ends – profits through customer satisfaction.

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

Culture-Insight
Culture-Insight – the UK’s leading intercultural communication and international
management skills training company – is recruiting.
Culture-Insight believes in giving people the skills they need to work in today’s
international business community. By empowering staff to be more effective in the
global market, Culture-Insight helps organizations fulfil their international potential.
An opportunity has now arisen for two marketing executives to join our team.
Culture-Insight …
1) a is a product-focused organization. b is a service-focused organization.
2) a is a private sector organization b is a public sector organization.
3) a works in business-to-consumer b works in business-to-business
markets. markets.

Read the rest of the job advertisement and answer the questions:
1. As marketing executives in a company like Culture-Insight, what tasks do you
think you will be responsible for (e.g. carrying out market research, managing
databases)?
 9

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

In this role you will be responsible for building relationships and liaising with a
range of stockholders, both internal and external. You will be expected to manage the
production and distribution of a product; to conduct market research; to monitor
competitor activity; to analyze pricing positions; to maintain and update databases; to
organize and attend events and exhibitions; to evaluate the success of marketing
campaigns; to plan and implement direct marketing activity; to assist in the creation
and implementation of a marketing and communications plan in conjunction with the
Marketing Manager and other colleagues.
To succeed as a Marketing Executive for Culture-Insight, you must have:
- first-class interpersonal and analytical skills
- the ability to use initiative, to influence, to negotiate, and to work well in teams
- numeracy, creativity, drive, business awareness, and IT literacy
- good oral and written communication skills.
In addition, an understanding of the world of international business and the
importance of intercultural communication is essential, as is a willingness to travel.
Knowledge of at least two European languages is preferred.
These positions are open to both recent graduates in relevant subjects and
experienced B2B junior marketing professionals.

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

1) to monitor a) the production and distribution of a product

2) to build b) with stakeholders
3) to plan and implement c) direct marketing activity
4) to assist d) databases
5) to conduct e) events and exhibitions
6) to evaluate f) pricing positions
7) to liaise g) the Marketing Manager and other colleagues
8) to support h) the success of marketing campaigns
9) to analyze i) in the creation and implementation of a marketing
10) to manage and communications plan
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11) to maintain and update j) market research

12) to organize and attend k) competitor activity
l) relationships with stakeholders

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

1. Как работник службы маркетинга, я выполняю различные функции:

провожу исследование рынка, тесно сотрудничаю с акционерами
компании, контролирую деятельность конкурентов.
2. Я несу ответственность за поддержку и обновление базы данных,
проведение маркетинговых мероприятий и выставок.
3. Моя обязанность – контролировать цены на рынке, давать оценку
успешным маркетинговым компаниям.
4. Я помогаю руководителю отдела маркетинга создавать и выполнять
маркетинговые и коммуникационные планы.
5. Вместе с руководителем отдела маркетинга и другими коллегами я
руковожу производством товара и его распространением, анализирую
положение цен на рынке.

8. Read and translate the following sentences paying attention to the

different types of marketing.

1. Conversional marketing is the difficult task of reversing negative

demand, e.g. for dental work, or hiring disabled people.
2. Stimulational marketing is necessary where there’s no demand, e.g. which
often happens with new products and services.
3. Developmental marketing involves developing a product or service for which
there is clearly a latent demand, e.g. a non-polluting and fuel-efficient car.
4. Remarketing involves revitalizing falling demand, e.g. for churches, inner city
areas, or ageing film stars.
5. Synchromarketing involves altering the time pattern of irregular demand, e.g.
for public transport between rush hours, or for ski resorts in the summer.
6. Maintenance marketing is a matter of retaining a current (maybe full) level of
demand, e.g. in the face of competition or changing tastes.
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7. Demarketing is the attempt (by governments rather than private businesses) to

reduce overfull demand, permanently or temporarily, e.g. for some roads and
bridges during rush hours.
8. Countermarketing is the attempt to destroy unwholesome demand for
products that are considered undesirable, e.g. cigarettes, drugs, handguns, or
extremist political parties
Notes:
reverse – change alter – make different
latent – not seen yet retain – keep
revitalize – to give new life unwholesome – harmful

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

a. Alter the pattern of demand through flexible pricing, promotion, and other
incentives.
b. Connect the benefits of the product with people’s needs and interests.
c. Find new target markets, change product features, develop more effective
communication.
d. Find out why people dislike the product, and redesign it, lower prices, and use
more positive promotion.
e. Increase prices, reduce availability, make people scared.
f. Keep up or improve quality and continually measure consumer satisfaction.
g. Measure the size of the potential market and develop the goods and
services that will satisfy it.
h. Raise prices, reduce promotion and the level of service.

10. Read the following sentences about the market structure. Choose the
correct alternative to complete each sentence.

1. In many markets there is a firm with a much larger market share than its
competitors, called a ………………… .
a) market leader b) monopolist c) multinational
2. A large company having business operations in many countries is called a
………..
a) market leader b) multinational c) monopolist
 12

3. A company that is number two in a market, but which would like to

become number one is known as a ………
a) market challenger b) market competitor c) market follower
4. A smaller company in a market, more or less content with its existing
market share and presenting no threat to the market leader, is called a ….
a) market challenger b) market follower c) market sharer
5. A small company that concentrates on one or more particular niches or
small market segments is called ……….
a) market failure b) market follower c) market nicher
6. A market in which one single producer can fix an artificially high price is
called …………….. .
a) homogeneous market b) monopoly c) undifferentiated market
7. A market selling goods aimed at the widest possible number of consumers
(a famous example was selling the Model T Ford) is called ………….
a) undifferentiated market b) monopoly c) market nicher
8. A market dominated by a few large suppliers, and which it is hard for new
companies to break into, is called a/an ……………
a) conglomerate b) market concentration c) oligopoly
9. A large corporation or a group of companies joined together and marketing a
large number of different goods is called a …………….
a) conglomerate b) market nicher c) oligopoly
10. A group of companies which choose to collaborate by sharing out
markets, co-ordinating their prices, and so on, form a ………………
a) cartel b) conspiracy c) joint venture
11. A business activity in which two or more companies have invested together is
called …………
a) market nicher b) joint venture c) market follower
12. A market in which it is normal to have only one supplier – e.g. utilities
such as water, gas, electricity – is called a ………..
a) conglomerate b) natural monopoly c) pure monopoly

11. Find the appropriate English words to the following definitions in

Russian. Look at the exercise above to help you.

1) компания, занимающая самую большую долю на рынке;

2) компания, занимающая определённую нишу на рынке;
 13

3) компания, обладающая исключительным правом определять и

устанавливать цену на рынке;
4) рыночная ситуация с ограниченным числом крупных фирм;
5) крупная компания, работающая в разных странах;
6) компания, претендующая на лидерство;
7) конкурирующая компания, компания-конкурент;
8) компания, не представляющая угрозы для лидера, компания-
последователь;
9) компания с долевым участием;
10) убыточная компания, компания, терпящая неудачу; Loss company
11) группа компаний, которые сотрудничают, разделяя рынок на
сферы действия и координируя цены;
12) совместное (смешанное) предприятие;
13) рыночная ситуация, при которой каждому из сегментов рынка
предлагаются товары, созданные специально для того или
иного сегмента;
14) рыночная ситуация, при которой используется
единообразный подход ко всему рынку с одним товаром.

Marketing Practice: McDonald’s applies the marketing concept

Read and discuss the following:

McDonald’s corporation, the fast-food hamburger retailer, is a master marketer.
With over 10,000 outlets in more than 50 countries and over $14,3 billion in annual
sales, McDonald’s doubles the sales of its nearest rival, Burger King, and triples
those of third place Wendy’s. Nineteen million customers pass through the famous
golden arches every day. McDonald’s now serves 145 hamburgers per second.
Credit for this performance belongs to a strong marketing orientation:
McDonald’s knows how to serve people and adapt to changing consumer wants. In
1955, Ray Kroc, a 52 year-old salesman of milkshake –mixing machines, became
excited by a chain of seven restaurants owned by Richard and Maurice McDonald.
Kroc liked their fast-food restaurant concept and bought the chain for $2.7 million.
He decided to expand the chain by selling franchises, and the number of restaurants
grew rapidly. Times changed, and so did McDonald’s. It expanded its sit down
sections, improved the décor, launched a breakfast menu, added new food items,
and opened new outlets in high-traffic areas.
 14

Kroc’s marketing philosophy is vividly shown in McDonald’s motto of

“O.S.C.&V.”, which stands for quality, service, cleanliness, and value. Customers
enter a spotlessly cleaned restaurant, walk up to a friendly counter person, quickly
receive a good-tasting hamburger, and eat it in or take it out. McDonald’s is a
family affair, appealing strongly to children. McDonald’s has mastered the art of
serving consumers, and it carefully teaches the basics to its franchisees and
employees who take running courses at McDonald’s “Hamburger University” in
Illinois.
McDonald’s continually monitors products and service quality through customer
surveys. It puts great energy into improving hamburger production methods in
order to simplify operations, bring down costs, speed up service, and bring greater
value to customers. Beyond these efforts, each McDonald’s restaurant works to
become a part of its neighborhood through community involvement and service
projects.
The McDonald’s focus on consumers has made it the world’s largest food-service
organization. The company’s huge success has been reflected in the increased
value of its stock over the years: 250 shares of McDonald’s stock purchased for
less than $6,000 in 1965 would be worth over a million today.

Read the goals of the marketing system and answer the questions given below.
The goals of the marketing system are:
1) maximizing consumption 3. maximizing consumer satisfaction
2) maximizing choice 4. maximizing life quality

Questions:
1. How could McDonald’s achieve these goals and hold the position of a leader on
the world consumer market?
2. What factors contributed to McDonald’s huge success on the market?

Unit 2 The Marketing Mix 1

Read the text and say whether the statements given below the text are true or
false.
The marketing mix (also known as 4Ps) is used by business to help them to reach
their objectives and to plan and visualize their strategy. These 4Ps are controllable
 15

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

Product
When placing a product within a market many factors and decisions have to be
taken into consideration. These include:
Product design: Will the design be a USP (Unique Selling Point i.e. the things that
make the product special and different from other similar products) for the
organization?
Product quality: Quality has to be consistent with other elements of the marketing
mix. A premium pricing strategy has to reflect the quality a product offers.
Product features: What features will you add that may increase the benefit
offered to your target market?
Branding: A brand is a tool which is used by an organization to differentiate itself
from competitors. Think about the Nike logo and how this influences people’s
ideas on the product.

Price
Pricing is one of the most important elements of the marketing mix, as it is the only
one of the 4Ps which generates a turnover for the organization. The remaining 3Ps
are costs for the organization. Pricing should take into account the following
factors: costs of producing the product, prices competitors charge, company
objectives, target group and willingness to pay.
There are three main pricing strategies an organization can adopt:
1. Penetration pricing – the organization sets a low price to increase sales and
market share.
2. Skimming pricing – the organization sets an initial high price and then slowly
lowers the price to make the product available to a wider market. The objective
is to skim profits off the market layer by layer.
3. Competition pricing – setting a price in comparison with competitors.

Place
This refers to how the organization will distribute the product or service they are
offering to the end user. The organization must distribute the product to the user at
the right place at the right time.
There are two channels of distribution they can use:
 16

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

‘middleman’, for example, a manufacturer can sell to a wholesaler and then the
wholesaler sells to the retailer.
2. Direct distribution involves distributing direct from a manufacturer to the
consumer – for example, Dell Computers selling directly to its target customers.
The advantage of direct distribution is that it gives a manufacturer complete
control over the product.

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

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

1. The 4Ps are used by companies to think about their marketing strategy.
2. The company changes its marketing mix to satisfy the needs of its target
market.
3. If you have high prices, you need to provide a high-quality product.
4. A logo doesn’t add any value to a product.
5. Pricing is just one of the elements of marketing mix.
6. Indirect distribution gives a manufacturer full control over the product.
7. Promotion is how you tell consumers about the product or service.

Language focus

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

Комплекс маркетинговых коммуникаций; контролируемые величины

(факторы); разместить товар на рынке; принимать во внимание
 17

(учитывать); уникальное торговое предложение; оформление товара;

качество товара; соответствовать другим элементам комплекса
маркетинговых коммуникаций; стратегия премиальных цен (цен с
надбавкой); увеличить выгоду для потребителя; характеристика товара;
целевой рынок; маркировка (присвоение марки); отличать себя от
конкурентов; ценообразование; создавать (формировать) товарооборот;
издержки (затраты); назначать цену на товар; политика внедрения цен на
рынок; политика ‘снятия сливок с рынка’; первоначальная цена;
снижать цену; слои рынка; конкурентное ценообразование;
распространять товар; конечный потребитель; канал распределения;
распределение товара с помощью посредника; оптовик; производитель;
прямое распределение товара; целевой потребитель; иметь преимущество;
полный контроль над товаром; продвижение товара; сообщать выгоды
потребителю; реклама; связи с общественностью; средства рекламы;
прямая почтовая рассылка; финансовая поддержка; мероприятия по
стимулированию сбыта, проводимые в магазине; стратегия рекламного
обращения.

2. Find these phrases in the text and match them with the correct definition,
(a or b).
1) controllable variables
a) factors which are under the company’s control
b) factors which control the company
2) a USP (Unique Selling Points)
a) an exclusive place where the product is sold
b) an exclusive feature of the product that no other competitor product has
3) premium pricing strategy
a) a strategy of high prices
b) a strategy of competitive prices
4) target market
a) aims and objectives of the company in a specific market
b) groups of customers that the company is aiming its products at
5) differentiate itself from the competition
a) show clear differences from competitor products
b) avoid difference with competitor products
 18

6) skimming pricing
a) setting a low price to increase sales and market share
b) setting an initial high price lowering it slowly then to attract a wider market
7) direct distribution
a) distributing a product from a manufacturer to a buyer
b) distributing a product from a manufacturer through a wholesaler to a retailer
and to a consumer

3. Match the words to make word partnerships or phrases.

1) controllable a) market
2) premium pricing b) the competition
3) end c) chain
4) differentiate itself from d) variables
5) target e) distribution
6) Unique f) user
7) channel of g) Selling Point
8) supply h) strategy

4. Complete the sentences below with the words and word partnerships from
exercise 3.
1. It is necessary to define the ….. so that we can communicate the benefits of
the product to these people.
2. An important part of getting the product to the customer at the right time
and at the right place means we must decide on the best ….. .
3. It is essential for a successful brand to be able to ….. .
4. As companies can decide for themselves how to use the 4Ps they are
considered ….. and are an important part of the marketing strategy.
5. Products move along the ….. and finally reach the people who use the
product so everything must go smoothly.
6. The ….. or special feature of the product, must be communicated to the
people we want to reach.
7. An important part of our marketing strategy is to ensure that the ….. is
satisfied with our product.
8. A ….. demonstrates that our product is of very high quality.
 19

5. Speak about some premium-priced products that you know well such as
computers, mobile phones, cosmetics, clothing brands, etc.
1. What are their USPs?
2. Who is their target market?
3. Are the buyers and end users the same people?
4. How do these products differentiate themselves from the competition?
5. What are some of the variables the company can control when they decide the
marketing strategy for these products?

6. Translate the sentence using words and phrases given below.

competition pricing commodity product segment middleman
life style product target market price sensitive market penetration
premium pricing skimming pricing in-store promotion

1. Реклама престижных товаров, т.е. товаров-показателей жизненного

уровня, направлена на то, чтобы потребитель мог почувствовать свой
особый статус.
2. Основными целевыми рынками для расширения деятельности нашей
компании являются Япония и Китай.
3. Спрос на ювелирные изделия обладает высокой чувствительностью к
ценам. Когда цена на золотые изделия повышается на 1%, спрос на
изделия падает на 2.6%.
4. Политика цен, имеющая целью прочное внедрение на рынок, означает
назначение первоначальной низкой цены с целью привлечения как можно
большего числа потребителей, и в конечном итоге, расширения рынка.
5. Политика «снятия сливок с рынка», т.е. назначение первоначальной
высокой цены, с её снижением в дальнейшем, имеет цель получение
прибыли со всех слоёв рынка.
6. Компания доставляет товар от производителя до конечного потребителя
через посредника.
7. Стратегия премиальных наценок должна демонстрировать высокое
качество товара или услуги.
8. Персональный компьютер становится товарным продуктом. Почти каждая
имеет возможность приобрести этот товар.
9. Мероприятия по стимулированию сбыта, проводимые в нашем магазине, привлекли
множество покупателей.
 20

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

1. If we know before the launch that the product has some problems, …
2. If our company knows the market well, …
3. If we spend much time on market research, …
4. If we concentrate less on promotion, …
5. If we concentrate first on an exclusive group of customers in a niche market, …
6. If we want to make our channel of distribution more cost-efficient, …
7. If our products are high quality, …
8. If we realize how price sensitive the product is, …

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

b) we won’t raise the price dramatically.
c) we can give a more accurate sales forecast for next year.
d) we can use price skimming at the beginning of the launch as this group is now
very price sensitive.
e) we will try to solve them before we begin to sell it.
f) we will have a much better image in the industry.
g) we may find out that we are aiming at the wrong target group.
h) we can consider using intermediaries rather than direct sales.

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

Stage 1
Decide what target customer groups you could market this product to. You can
choose from the following or a group of your own:
Campers, travelers, long-distance lorry drivers, cyclists, climbers, fishermen,
the military, patients in hospitals.

Stage 2
Select one of the target customer groups and plan the marketing strategy
(product, place, price and promotion) to attract these customers in a market that
 21

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

Product – What size bottles would sell best in this market? Would you change the
bottle design and / or the information on the bottle? Would you add new ingredients to
create a range of shampoos?
Price – What pricing strategy would you use? What research might you want to do
before deciding the price? What are your first thoughts on how much you could
charge?
Promotion – With a very limited budget, what channels would you use to
communicate to your target customers? How would you develop a message (text /
visual, e.g. TV commercial, etc.) that best communicates the benefits of this product?
Place – Where will these target customers want to be able to buy your product? Is it
best to sell direct or via intermediaries?

Stage 3
Make your presentation of your 4Ps marketing strategy and be prepared to
answer any possible questions.

The Marketing Mix 2

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

4Ps 4Cs 4As 4Os

Product Customer needs Acceptability Objects
What does the How acceptable is What do you sell?
customer need the product, and do How is it
to solve the people approve of manufactured or
problem? the product? made?
For example, Is it socially Is it a high quality
people don’t have acceptable – (or excellent)
time to cook – we fashionable and product, or is it
offer the solution of attractive? bottom end?
 22

frozen dinners. Does the product

The company must respect the laws of
identify customer the country – is it
needs so that legally acceptable?
products that meet
these needs can be
developed.
Price Cost to user Affordability Objectives
Does the customer Does the customer Revenue objectives
perceive the cost have enough money concern the income
of the product as to buy the product – you want to
fair, or is it too can he/she afford generate.
expensive? the product? Price objectives
concern the price
you want to sell at.
Place Convenience Accessibility Organization
How convenient is Is the product easy How should you
it to find your to access? organize the sale
product? Is it easy, Is the product and distribution of
or does the accessible for people your product?
customer have to with disabilities? Which distribution
make an effort? methods will work
best?
Promotion Communication Awareness Operations
How should you How many people Which kind of
communicate with know about, or are promotional
your customers? aware of, the operations, such as
product? direct mail, will
Is awareness high? work best for the
product?

Besides, there is an acronym, AIDA, which represents the steps a marketer takes
in order to persuade customers to buy a product or service.
Put the steps in the right order, read the sentences and translate them.
 23

1. Action: Finally, marketing must prompt action to purchase, so that

customers take steps to buy the product – for example, by going to the shop
or ordering it online.
2. Desire: Next, marketing must develop a desire to own or have the product
so that customers actively want the product.
3. Interest: Then, marketing must create an interest in the product. Customers
will develop an interest in the product.
4. Attention: Marketing must first attract the customer’s attention to the
product. Customers become aware of a product and know it is available.

Language focus

1. Translate the following words and word partnerships into English. Look at
the table given above to help you.
Определить нужды потребителя; удовлетворить нужды;
воспринимать стоимость товара как справедливую; удобное
расположение товара; доступный товар (по местонахождению);
доступ к товару; доступный товар (по цене); понимать нужды
потребителей; понимание нужд; производить товар высокого
качества; цель политики цен: цель политики получения доходов;
действия по продвижению товара; социально - приемлемый товар;
приемлемость товара; товар, соответствующий правовым нормам.

2. Put the words and word partnerships under the correct headings:
product price place promotion people

acceptability, awareness, cost to user, objects, accessibility, communication,

customer needs, operations, affordability, convenience, revenue objectives,
organization branding, competitors, customers, delivery, direct marketing,
discounts, quality, distribution, launch, location, reputation, sales force, special
deals, support.

3. Replace the words and word combinations in bold with alternative words
and word partnerships given below. Translate the sentences.
afford high quality revenue objectives convenient price
socially acceptable
 24

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

2. We have a reputation for providing good standard mobile phones.
3. The cost to user of mobile phones is kept down because they are subsidized by
the network providers.
4. This means more people can have the money to buy the product.
5. More and more, customers buy mobile phones online because it is more
accessible.
6. Expected earnings from 3G phones were not met when the products were first
launched.

3. Today some marketers talk about additional 4Ps:

People: how your staff (or employees), are different from those in a
competitor’s organization, and how your clients are different from your
competitor’s clients.
Physical presence: how your shop or website looks.
Process: how your product is built and delivered, or how your service is sold,
delivered and accessed.
Physical evidence: how your service becomes tangible. For example, tickets,
policies and brochures create something the customers can touch and hold.

A marketing manager is talking about marketing mix for a brand of cleaning

products. Choose the correct words from the brackets to complete the text, and
then match each speech extract with one of the Ps.

1. Our (staff / reputation / competitors) are highly motivated. We really believe in

our brand. For example, (our consumers / employees / customers) are always
trying to improve what we do.
2. Our (tools / range / support) includes detergent, toilet cleaner and sponges.
3. We use a lot of (advertising / presence / promotional), usually in women’s
magazines.
4. You can find the brand in supermarkets and local shops. The (tangible /
accessibility / process) of our (staff / mix / outlets) is important. We need to be
in a lot of (locations / supports / distributions) so that we are easy to find.
 25

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

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

4. Complete the article about a supermarket in-store event using the words
given below.
awareness customers identified meet promotional

This week, Tesco launches its biggest ever ‘Health Event’ – illustrating its
commitment to helping (1) _____ lead a healthy and active lifestyle. The supermarket
has (2) _____ health as an important customer concern and is working to (3) _____ the
needs of its customers.
Hundreds of (4) _____ operations for healthy products will run all over the store, from
fresh produce through to grocery and healthcare lines. Tesco hopes that (5) _____ of
its initiative will be high.

5. The following statements represent the marketing strategy of a chain

offering domestic help for the elderly, based on 7 Ps. Match each
statement with one of the Ps.

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

1. All employees are well trained; uniforms give a smart, professional appearance.
2. Employees have a specific client list. A relationship is built and the client feels
secure. Supervisors regularly check client satisfaction.
3. Networking at health sector events, advertising in local newspapers, website.
4. Researching costs (pay rates, numbers of staff required) that are affordable to
government organizations or charities.
5. Providing a care service for elderly people so they can live with dignity and
comfort in their own homes.
6. Delivery of the service is directly to clients in their own homes.
7. Establishment of one office per town to ensure recognizable market presence,
website aimed at clients, families and healthcare professionals.
 26

6. Translate the following text into English.

После выбора целевых потребителей организация должна предпринять шаги
по удовлетворению их потребностей. Один человек в отделе маркетинга, как
правило, управляющий по маркетингу, отвечает за разработку комплексной
маркетинговой программы. Цель программы состоит в выведении товара на
рынок.
Эта цель достигается за счёт использования совокупности (a total) четырёх
элементов комплекса маркетинга, которые часто называют «четыре P»:
Продукт – товары, услуги или идеи, предназначенные для удовлетворения
нужд потребителя.
Цена – денежная сумма, которую потребители должны уплатить для
получения товара.
Продвижение – средства коммуникации между продавцом и покупателем.
Каналы распределения – деятельность по доведению продукта от
производителя до конечного потребителя.
Элементы комплекса маркетинга называются контролируемыми факторами по
той причине, что они находятся под контролем маркетинговой службы
организации.
Существует множество факторов, которые не поддаются контролю со стороны
организации и её отдела маркетинга. Эти факторы можно разделить на пять
групп – социальные, экономические, технологические, конкурентные и
правовые.
Для потребителей конкретной продукции маркетинг создаёт полезность, иначе
говоря, выгоду или ценность покупки (ощущаемую ценность). Существует 4
вида полезности:
Полезность формы – производство товаров или услуг.
Полезность места означает размещение товара в доступных для
потребителей местах.
Полезность времени – обеспечение наличия товара в то время, когда
потребители хотят его купить.
Полезность обладания (possession) – это доставка товаров потребителям с
тем, чтобы они могли воспользоваться ими.
Таким образом, маркетинг обеспечивает потребителям полезность формы,
места, времени и обладания, предоставляя товары и услуги, необходимые
потребителю, в нужном месте и в нужное время.
 27

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

IKEA, a Swedish multinational, sells more furniture and functional products for the
home such as lamps, photo frames, bed linen and many other items than any other
company of this type in the world. It operates in more than 38 different countries. The
managing director of IKEA says: “We are proud of our home furnishing range. Every
one of our products has three important dimensions: functional design, good quality
materials and, most important of all, amazingly low prices. We call it Democratic
Design.”
The company has a very good range of products. You can get good quality for the
price you can pay. The products in the IKEA stores are accessible. You are able to see
the products, touch them or try them out. The layout of the stores is very convenient. It
doesn’t take the customers much time to find the product they need. Besides, there are
special playrooms where parents can leave their children while they are making their
purchases.
It was the first company to sell flat-pack furniture on a wide scale. Flat-pack
furniture is packed in smaller, flat packs that take up less space and it can be taken
home by the customer without a delivery van. The customers must then put the
furniture together themselves. This means that IKEA can keep prices lower as there
are lower costs for storage space and distribution.
Most of the products are environmentally sound. Businesses have to think about the
long-term effects of providing the goods and services that consumers want.
Organizations try to operate in a sustainable way. This means that they supply goods
in a way that is of benefit to both customers and the environment. Around half of
IKEA products are made of wood which is a good source of material as it is recyclable
and renewable.
Customers do not always know where goods have come from or the stages through
which they pass before they are ready for sale.
One of the ways in which IKEA tries to include the customer in its supply chain is
by being open about how it operates. The company makes information about its supply
chain available on its website.
In the information about its supply chain, IKEA has divided it into three stages:
 28

raw materials (the primary sector)

manufacturing (the secondary sector)
distribution and retailing services (the tertiary sector)

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

Unit 3 Marketing plan

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

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

1. Analysis
Current market situation - Information on the competitors and the market place.
Competitor analysis – The competition on the market place. You will also need to
include information on their positioning – how they control the way the customers see
the products or services.
Product / service analysis – What you sell or provide, your Unique Selling Point
(USP) – that is, what distinguishes your product or service from others on the market.
Originally USP stood for Unique Selling Proposition.
Target market – Your customer groups or segments – for example, teenagers or
business people.
2. Objectives
Marketing goals – What you want to achieve, in terms of image and sales. What is
your mission statement – top management’s vision of why the firm exists, how it is
different from other firms, and the place in the market it wants to take.
Set SMART objectives. Specific – Be precise about what you are going to achieve.
Measurable – Quantify your objectives.
 29

Achievable – Are you attempting too much?

Realistic – Do you have the resources to make the
objective happen (manpower, money, machines,
materials, time)?
Timed – When will you achieve the objectives (Within a
month? By February 2021?)

3. Strategies
The approach to meeting the objectives
Which market segment are you going to occupy?.
How will you target the segment?
How should you position within the segment?
4. Tactics
Convert your strategy into the marketing mix, including the 4Ps.
Product Price Place Promotion
5. Control
Tracking – How will the success of the marketing plan be measured?
How will each marketing activity be assessed?
A formal marketing plan can help managers identify and analyze future opportunities
to meet customer needs by defining attractive market segments of customers who have
certain characteristics in common.

Comprehension / interpretation

Read the statement and say whether they are true or false.
1. Current market situation refers to the information on your company’s position
on the market.
2. Product or service analysis includes information on what you sell or provide.
3. Target market is the market segment you focus on.
4. Marketing objectives can be an increase in sales, or a successful product launch,
over a certain period of time.
5. SMART is an acronym which represents the necessary characteristics of
marketing objectives.
6. A strategy is a plan or a series of plans aimed at achieving the company’s
objectives. It’s a specific approach to meeting the objectives.
 30

7. Tactic is a method which you use to achieve your objectives, e.g. aggressive
advertising tactics may mislead consumers.
8. Tracking means the assessment of the competitor’s marketing activity.

Language focus

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

Look at the text to help you.
Подробно излагать маркетинговые способы и маркетинговые акции;
исследовать необходимые ресурсы; рост продаж; запуск нового товара;
разработать маркетинговый план; текущая ситуация на рынке; исследование
конкурентов; товарный анализ; анализ услуги; уникальное торговое
предложение; целевой рынок; с точки зрения (в плане) продаж;
программное заявление; предвидение (видение) будущего компании со
стороны руководства; ставить конкретные цели; измеримые цели;
достижимые цели; хронометрированные (просчитанные по времени
достижения) цели; занимать рыночный сегмент; слежение; измерять
успех; оценивать маркетинговую деятельность; определять и анализировать
будущие возможности; определять (описывать) привлекательный рыночный
сегмент.

2. Complete the following definitions with plan or strategy.

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

3. Make word combinations with market and marketing using the words
below. Then match the word combinations with the definitions below.
methods mix plan segments strategy target

_____ market ______

marketing ______
______
______
______
 31

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

2) the consumers, clients or customers you want to attract;
3) a definition of the company, the product / service and the competition;
4) detailed information about how to fulfil the marketing strategy;
5) the techniques you can use to communicate with your consumers;
6) the combination of different elements used to market a product or
service.

4. M@T Cables wants to enter a new market. Read the following letter to
a possible export partner. Fill in the missing words in the sentences.
Choose from the following:
analysis free mix research demand goods plan trends

Dear Mr Collings,
Thank you for your letter about your plans to market out products in the
South Pacific Region. As you know, we want to sell our (1)….. in every
(2) …… market in the world, so naturally we are interested in your region.
Obviously, we have to do some market (3) ….. . For now, I have four
questions:
1. How is the present supply and (4) ….. for our kind of products?
2. What kind of marketing (5) ….. do you think we should develop in our
marketing (6) ….. ?
3. What are the market (7) ….. in this sector?
4. Can you recommend someone to carry out a detailed market (8) ….. for
us?
I look forward to hearing from you as soon as possible.
Yours sincerely,
Paul San

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

mix plan strengths opportunities price treats

packaging product weaknesses place promotion
 32

memo
from: AB
to: DG
Re. Marketing policy

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

understanding of:
1. our present position
2. marketing strategy
We must build a new marketing (1) ……. . This should be based on a clear SWOT
analysis, i.e. understanding of the present market position in terms of:
(2) …………..
(3) …………..
(4) …………..
(5) …………..
We must develop a seven point marketing (6) ………. , describing:
(7) ………….
(8) ………….
(9) ………….
(10) ………..
(11) ………..
People
Phasing

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

Call me to discuss.
Andrew

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

market growth market segment market segmentation
market share market leader

Fill the gaps in the sentences using the appropriate word partnership from above.
1. Regional airlines are important customers for the Embraer ERJ-145. They
are a big ….. for Embraer.
2. Tesko is the biggest supermarket chain in the UK and is therefore the ….. .
 33

3. In the US, Japanese carmakers have been gaining ….. – they are selling a
bigger percentage of cars sold, and US manufacturers are selling a smaller
percentage.
4. There has been huge ….. in the sales of digital music. Apple in particular
see a massive increase in the number of people buying songs from iTunes.
5. Microsoft divides the software market into large companies, small
companies, home office users, and leisure users.
This is how it does its ..... .

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

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

rights.
a) promotion b) grant aid c) sponsorship
2. A business which specializes in giving advice and support to companies about
marketing and markets.
a) marketing consultancy b) counseling service c) company analysts
3. An economy which allows open and reasonably free exchange between private
companies.
a) command economy b) conservative economy c) free market economy
4. A market in which there are too many suppliers producing similar products.
a) saturated market b) buyers’ market c) heavy-user market
5. A market in which there are few suppliers producing goods that a lot of people
want to buy.
a) weak market b) sellers’ market c) light market
6. A company which sells more of a particular type of product than its
competitors.
a) trend seller b) multinational c) market leader
7. A person with specialist knowledge of a specific market who often predicts
what will happen and tries to explain what has happened.
a) market analyst b) forecaster c) market broker
8. A specific promotional activity over a limited period of time.
a) campaign b) season c) trend
9. The activity of moving goods from the producer to the consumer.
a) shipment b) distribution c) orientation
 34

10. The activity of selling goods to other countries.

a) multinational b) exporting c) exchange
distribution
11. The proportion of the total market which one company controls.
a) dominion b) market place c) market share

8. Find the English equivalents to the words and word partnerships from
the exercise above.
Доля рынка; рыночный брокер (по покупке и продаже товаров); рынок
покупателя (превышение предложения над спросом); рынок продавца
(превышение спроса над предложением); финансовая поддержка;
консультационная маркетинговая фирма; экономика свободного
предпринимательства; насыщенный рынок; «слабый рынок» (рынок, на
котором продавцов больше, чем покупателей, а цены имеют тенденцию к
понижению); рынок активных потребителей; специалист по исследованию
рынка; доставка товара от производителя к потребителю; продажа товаров
в другие страны.

Unit 4 Marketing strategies

Reading 1
Read the text and answer the questions given below.

In successful firms, large and small, business planning is an ongoing process of

making decisions that guide the firm both in the short term and long term periods of
time. Marketing planning is based on an analysis of the company’s customers,
competitors and significant factors in the external environment and of its internal
performance.
Organizations succeed by creating and keeping customers. Marketing managers
regularly have to assess which customers they are trying to reach and how they can
design products and services that provide better value and benefits. They have to
create a competitive advantage – that is, the ability of a firm to outperform the
competition, providing customers with a benefit the competition cannot. This process
is known as marketing planning.
How can a competitive advantage be created?
 35

The first step is to identify a firm’s distinctive competency, a firm’s capability that is
superior to that of its competition. For example, Coca-Cola’s success in global markets
- Coke has 50 percent of the world’s soft-drink business - is related to its distinctive
competencies in distribution and marketing communications. Coke’s distribution
system got a jump on the competition during World War II, when the firm decreed that
every soldier would have access to a five-cent Coke. The US government liked the
morale-building effort, and assisted Coke in building 64 overseas bottling plants.
Coke’s skillful marketing communications program (television commercials) is
another distinctive competency that has contributed to its global success.
The second step in creating a competitive advantage is to turn a distinctive
competency into a differential benefit. Differential benefits set products apart from
competitors’ products by providing something unique that customers want.
Differential benefits provide reasons for customers to pay a premium for a firm’s
products and exhibit a strong brand preference.
A company’s marketing strategy or a planned series of actions describes how the
company will position itself and the products it sells or the services it provides in the
competitive marketplace.

Answer the following questions.

1. What factors is marketing planning based on?
2. What is the key to a company’s success? How can a company keep its
customers?
3. What is a competitive advantage? Why is it so important for a company to have
a competitive advantage on the market?
4. What is the competitive advantage of Coca-Cola Company?
5. What is a distinctive competency?
6. What is a differential benefit?
7. What is a company’s marketing strategy?

Reading 2
You will read the text about different marketing strategies. Read it through and
speak on different approaches to marketing strategies used by different
companies because of their different position on the market.
A company’s marketing strategies – sets of principles designed to achieve long-term
objectives – obviously depend on its size and position in the market. Other
 36

determining factors are the extent of the company’s resources, the strategies of its
competitors, the behavior of the consumers in the target market, the stage in the
product life-cycle of the products it markets, and the overall macro-economic
environment.
The aim of a market leader is obviously to remain the leader. The best way to
achieve this is to increase market share further. If this is not possible, the leader will at
least attempt to protect its current market share. A good idea is to try to find ways to
increase the total market. This will benefit everyone in the field, but the market leader
more than its competitors. A market can be increased by finding new users for a
product, by stimulating more usage of a product, or by exploiting new uses, which can
sometimes be uncovered by carrying out market research with existing customers.
To protect a market share, a company can innovate in products, customer services,
distribution channels, cost reductions, and so on; it can extend and stretch its product
lines to leave less room for competitors; and it can confront competitors directly in
expensive sales promotion campaigns.
Market challengers can either attempt to attack the leader, or to increase their market
share by attacking various market followers. If they choose to attack the leader, market
challengers can use most of the strategies also available to market leaders: product
innovation, price reductions, cheaper or higher quality versions, improved services,
distribution channel innovations, manufacturing cost reduction, intensive advertising,
and so on.
Market followers are in a difficult position. They are usually the favorite target of
market challengers. They can reduce prices, improve products or services but the
market leader and challenger will usually be able to retaliate successfully. A market
follower that takes on a larger company or starts a fight with it in a price war is certain
to lose, given its lesser resources.
In many markets, market followers fall in the middle of a V-shaped curve relating
market share and profitability. Small companies focusing on specialized narrow
segments can make big profits. So can the market leader, with a high market share and
economies of scale. In between come the less profitable market followers, which are
too big to focus on niches, but too small from economies of scale.
One possibility for followers is to imitate the leaders’ products. The innovator bears
the cost of developing the new product, distributing it, and making the market aware of
its existence. The follower can clone this product depending on patents or improve,
 37

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

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

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

benefits the leader most of all.
2. The size of a market can be increased without attracting any new consumers.
3. Market challengers generally attack the leader and market followers.
4. Market challengers cannot use the same strategies as leaders.
5. Market leaders generally win price wars.
6. Market challengers can attack leaders by way of any of the four P’s of the
marketing mix.
7. Market followers generally achieve cost reductions through economies of
scale.
8. The most profitable companies are logically those with medium or high
market share.
9. For a market nicher, product imitation can be as profitable as product
innovation.
10.A market nicher is never safe from an attack by a larger company.
 38

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

Постоянный процесс принятия решений; внешняя среда; внутренняя

деятельность компании; удерживать (сохранять) потребителей; давать
оценку; охватить потребителей; разработать товар или услугу;
предоставить потребителю выгоду (полезность); создать конкурентное
преимущество; опередить конкурентов; определить отличительную
компетенцию; способность (умение) компании; безалкогольный напиток;
иметь доступ к; умелая программа маркетинговых коммуникаций;
содействовать успеху; отличать товар от товара конкурентов; платить
надбавку к цене; демонстрировать предпочтение торговой марке;
позиционировать себя по отношению к конкурентам; текущая ситуация на
рынке; уникальное торговое предложение; программное заявление; ряд
принципов; достигать долгосрочные цели; определяющие факторы;
объём ресурсов; увеличивать долю рынка; приносить пользу кому-то;
использовать товар по-новому; проводить исследование рынка; вводить
новые товары; расширять товарный ряд (ассортимент); место для
конкурентов; противостоять конкуренции; претендент на лидерство;
компания последователь; новое изделие (товарная инновация); новый
канал распределения; снижение цены; сокращение производственных
затрат; нанести ответный удар; начать борьбу с более крупной компанией;
экономика от масштаба; нести затраты; создавать одинаковый товар;
производить товар отличный от другого; удерживать низкие затраты на
производство; создать собственную нишу на рынке; находиться в уязвимом
положении; уникальное торговое предложение; конечный потребитель;
верхний эшелон рынка; постоянный потребитель.

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

1) to carry the cost of a) to clone

2) to face (with); to have to deal with b) to benefit
 39

3) to start a quarrel or fight with c) to bear the cost of

4) the length of smth d) room
5) not well protected; e) the top end of a market,
be easily attacked up-market
6) to be useful or profitable to f) to retaliate
7) the market meeting the demands g) economies of scale
of the higher social groups
8) being able to manufacture things h) vulnerable position
cheaper by doing so in large quantities
9) to do smth bad to so who i) to confront
has done smth bad to you
10) to copy smth completely j) to innovate
11) to make changes; k) to take on a company
introduce new ideas
12) at some point between l) the extent of
13) space which can be filled with m) in between

3. Replace the words in brackets with an appropriate word or word partnership

given below. Change the form of the words if necessary. Translate the sentences.

to pay a premium differential benefit to outperform the competition

to define competitive advantage to guide ongoing to match
to contribute to success be related to mission statement

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

2. Strategic planning is the process of ______ (developing and maintaining a
strategic fit between) the organization’s goals and capacities and its changing
market opportunities.
3. _____ (a statement of an organization’s purpose) defines what the organization
wants to achieve in the larger environment.
 40

4. A clear mission statement acts as an ‘invisible hand’ that _____ (supervises)

people in the organization so that they can work independently and yet
collectively towards overall organization’s goals.
5. A market-oriented mission statement _____ (describes) the business in terms of
satisfying the basic customers’ needs.
6. The main goal of all marketing strategies is to create _____ (a special ability or
skills to do things better than others).
7. Many companies’ success _____ (is connected with) their distinctive
competencies.
8. Distinctive competency _____ (helps companies to succeed) and _____ (be
ahead of the competition).
9. _____ (special effective product advantages) provide reasons for customers
_____ (to pay more) for firm’s products.

4. Match the verbs on the left to their definitions on the right.

1) to enter the market a) to make the other company leave the

2) to penetrate the market
3) to abandon / leave the market
4) to dominate / corner the market
5) to monopolize the market
6) to drive another company out of
the market
b) to become the main company selling
on the market
c) to start selling for the first time
d) to be the only company selling on the
market
e) to stop selling on the market
f) to start selling or to sell more and
more there

5. Translate the following sentences into English.

1. Наша компания занимает ведущее положение на рынке. Другими
словами, она господствует на рынке.
2. Чтобы проникнуть на американский рынок, компании пришлось
конкурировать с целым рядом других компаний.
3. Когда компания KFC решила выйти на японский рынок, блюда
быстрого приготовления ещё не пользовались большой популярностью
в Японии.
 41

4. Государственная авиакомпании уже не является монополистом на

отечественном рынке. По меньшей мере, она конкурирует сейчас с 10
новыми частными авиакомпаниями.
5. Наши конкуренты приложили максимум усилий, чтобы вытолкнуть
нас с рынка. В 2002 году наша компания покинула рынок.
6. Отличительная выгода нашего товара – это бесплатная и
своевременная доставка товара.
7. Умелая программа маркетинговых коммуникаций, эффективная
система распределения товара являются отличительной компетенцией
нашей компании и содействуют её успеху.
8. Покупатель готов платить больше, если товар обеспечивает ему явную
выгоду.
9. Компания только выиграет от увеличения своей доли рынка.
10. Нам необходимо провести новое исследование рынка, чтобы выявить
потенциальных пользователей нашей продукции.
11. Мы можем расширить товарный ассортимент, если введём новые
товары на рынок.
12. Наша задача – противостоять конкуренции и удерживать низкие
затраты на производство.
13. Хотя мы несём большие затраты на разработку новых товаров, наша
компания на рынке неуязвима для атаки конкурентов.

Text 3
You will read the text about three strategies allowing a company to gain the
competitive advantage

Cost leadership is perhaps the clearest of the three strategies. In it a firm is arranged
to become the low-cost producer in its industry. The firm has a broad scope and serves
many industry segments, and may even operate in related industries. The firm’s
breadth is often important to its cost advantage. The sources of cost advantage are
varied and depend on the structure of the industry. They may include the pursuit of
economies of scale, new technology, preferential access to raw materials and other
factors.
The second strategy is differentiation. In a differentiation strategy, a firm seeks to
be unique in its industry along some features that are widely valued by buyers. It
 42

selects one or more attributes that many buyers in an industry perceive as important,
and uniquely positions itself to meet those needs. It is rewarded for its uniqueness with
a premium price. The means for differentiation are peculiar to each industry.
Differentiation can be based on the product itself, the delivery system by which it is
sold, the marketing approach, and a broad range of other factors. In construction
equipment, for example, Caterpillar Tractor’s differentiation is based on product
durability, spare parts availability, and an excellent dealer network.
The third strategy is focusing. This strategy is quite different from the others
because it rests on the choice of a narrow competitive scope within an industry. The
focuser selects a segment or a group of segments in the industry and tailors its strategy
to serving them to the exclusion of others. By optimizing its strategy for the target
segment, the focuser seeks to achieve a competitive advantage in its target segments
even though it does not possess a competitive advantage overall.
A firm that engages in each strategy but fails to achieve any success is ‘stuck in the
middle’. It possesses no competitive advantage. This strategic position is usually a
recipe for below-average performance. A firm that is stuck in the middle will compete
at a disadvantage because the cost leader, differentiators, or focusers will be better
positioned to compete in any segment.

Comprehension / interpretation
1. Which sentence best expresses the main idea in paragraph 1?
A firm can get a competitive advantage by:
a) selling goods in many markets.
b) making as wide a range of goods as possible.
c) producing goods more cheaply than its rivals.
2. Which sentence best expresses the main idea in paragraph 2?
When a firm uses a differentiation strategy:
a) it tries to persuade consumers that its products have special qualities.
b) it tries to reach a small group of loyal customers.
c) it wants to attract as many buyers as possible.
3. Which of these sentences best expresses the main idea in paragraph 3?
If a firm chooses focus as its strategy, it tries to:
a) do better than its rivals in a small part of the market.
b) prevent other firms from entering the market.
c) do business in a large number of narrow markets.
 43

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

What can a company do to improve its competitive position?

Language focus

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

Лидерство по себестоимости (ценовое преимущество); производитель с

низкими издержками производства; широкий размах деятельности;
работать в смежных отраслях; источники ценового преимущества;
экономия, обусловленная ростом масштаба производства (экономия от
масштаба, проявляющаяся в снижении долговременных средних издержек
производства на единицу продукции); проведение политики экономии от
масштаба производства; льготный (предпочтительный) доступ к сырью;
стратегия дифференциации (разграничения); величина (характеристика);
воспринимать характеристику как; позиционировать себя на рынке; цена с
надбавкой; специфические средства дифференциации; прочность товара;
наличие запасных частей; дилерская (посредническая) сеть;
фокусирование (сосредоточение); узкая сфера действия; приспособить
стратегию к; за исключением (исключая); делать что-то как можно лучше;
стараться получить конкурентное преимущество в целевом сегменте;
участвовать в (заниматься чем-либо); застрять на полпути;
неудовлетворительная работа; быть в невыгодном положении.

2. Match the words and word partnerships on the left to their definitions on
the right.
1) to pursue a policy a) to do something in the best possible way
2) related industry b) more favourable in order to give an
3) preferential advantage to particular people or organization
4) scope c) to depend on
5) durability d) the advantages that a big factory has over a
6) attribute smaller one because it is able to manufacture
7) to optimize goods more cheaply by doing so in large
8) economies of scale quantities
9) to tailor to e) the ability of a product to have a life of
 44

10) to rest on more than three years from when they

are made or bought
f) range, extent
g) a characteristic, feature, or quality of a
product
h) to conduct, to carry out
i) directly connected with
j) to adapt to

3. Translate the following sentences into English.

1. У нашей компании большой размах деятельности и большие планы на
будущее.
2. Компания выпускает продукцию для ряда смежных отраслей.
3. Выпуск данной продукции предпочтителен для нашей компании.
4. Если мы хотим добиться большей эффективности в нашей работе, нам
необходимо изменить структуру нашего отдела и построить его работу
с учётом потребностей наших клиентов.
5. Компания проводит политику экономии от масштаба, и в результате
является лидером по себестоимости.
6. Прочность наших товаров и доступность запасных частей – вот те
характеристики, которые привлекают наших покупателей.
7. Не иметь успеха на рынке, застрять на полпути – значит работать
убыточно.
8. Успех компании зависит от нашего умения правильно определить
целевой сегмент и сосредоточиться на удовлетворении его нужд.
9. Мы стараемся отличать свои товары от товаров наших конкурентов.

Marketing practice:
A key feature of Red Bull’s success

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

1. Red Bull is the number 1 energy drink company globally selling four billion
cans a year. Red Bull is the only brand sold all over the world. It can be found
in 162 countries. The three most important distribution channels are in everyday
 45

retail business, convenience or impulse buying, and in catering. It is bought by

drivers, people who need energy to work or study and by sportspeople.
2. Some observers say that Red Bull’s branding is revolutionary, calling it an
‘anti-brand’ strategy. When the brand was launched in the UK there was
already an established drink that was specifically taken as a post-illness
beverage. Generations of young Britons had drunk Lucozade as they recovered
from colds or flu, so Red Bull had to promote its brand differently.
3. The firm avoided usual methods of marketing, relying more on what is called
‘buzz marketing’ or word-of-mouth. A brand image was created and cultivated
which associated the drink with youth culture and extreme and adventure-
related sports, such as motor sports, mountain biking, snowboarding and dance
music. Red Bull’s target consumer segment began to adopt nicknames for the
product which especially appealed to its young demographic. Red Bull then
work to ensure that the brand was visible on the street. Some of the marketing
ideas they used were:
using pick-up trucks as mobile displays, painted blue and silver with a giant
can of the drink mounted on the top of the vehicle;
giving out cans of the drink to people on the street who had been identified
as being in need of energy;
distributing Red Bull in clubs, leaving empty cans on tables in hot spots
such as trendy bars, clubs and pubs.
4. The company promoted the Red Bull brand directly to “Generation Y”:
people who were believed to be cynical of traditional marketing strategies. Part
of this idea involved recruiting ‘student brand managers’ who would be used to
promote Red Bull on university campuses. These students would be encouraged
to throw parties where cases of Red Bull were distributed. The brand managers
would then report back to the company, giving the firm a low-cost form of
market research data. The use of this kind of marketing strategy has become
known as ‘viral’ marketing. It is as if a company sees no need for traditional
information or persuasive communications, in Red Bull’s case it used the youth
‘underground’ to spread the popularity of the drink. The firm preferred to limit
the supply and not advertise it, expecting that growing numbers of target
consumers would help spread its reputation. Red Bull was a spectacularly
successful example of this strategy.
5. By the mid 2000s, the worldwide energy drinks market was worth an
estimated $1.6 billion; Red Bull had a large part of the market share. The lure
 46

of fast growing profits in this market brought many competitors into the
functional food sector, where health and energy drinks doubled sales every
year.
6. By the end of the 2000s, Red Bull was number 25, globally selling close to
four billion cans a year. Market shares had grown in the Far East, Europe and
South America and productivity and profit had increased as well. Red Bull
entered new markets in Denmark and Norway and the success of Red Bull
Racing in Formula One, the Red Bull Salzburg football team’s victories in the
UEFA Europa League and the launch of a TV broadcaster called Servus TV in
Austria, demonstrated the marketing savvy of the company again.
7. Today, however, Red Bull is looking into how it can best build on its
incredible sales growth, as it has become a mature brand in a saturated market.
Some of the challenges for the company include:
the loss of the original consumer base as ‘Generation Y’ become working
adults;
health concerns due to high intake of caffeine;
being over-reliant on a single brand;
the market for energy drinks has attracted some global players such as Coca
Cola, Pepsi and Walmart (including its subsidiary Asda) who are trying to
gain a competitive advantage over the market leader.
It will be interesting to see what the future brings and if Red Bull discovers
new markets, new marketing strategies or both.

Language practice

1. Choose the best answer to complete the sentences.

1. Red Bull’s distribution channels include:

a) restaurants and shops.
b) sports events.
c) schools.

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

a) it was the first of its type.
b) there was already a similar drink on the market.
c) it was mostly bought by teenagers.
 47

3. ‘Buzz marketing’ relies on:

a) interesting adverts.
b) people telling each other about a product.
c) a good brand image.

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

a) were born in 1970s.
b) went to university.
c) were skeptical about traditional marketing ideas.

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

a) consumers to promote their products.
b) sports events to sell their products.
c) in-shop displays in a number of retailer outlets.

6. Today the market for energy drinks has:

a) much room for growth.
b) some room for growth.
c) little room for growth.

2. Find words in the text which mea the opposite of the words below.
1. planned (paragraph 1) _______
2. ordinary (paragraph 2) _______
3. did not attract (paragraph 3) ____
4. hidden, not easily seen (paragraph 3) _____
5. costly (paragraph 4) _____
6. people who represent views which are generally accepted, esp. in art,
fashion, literature, etc. (paragraph 4) _____
7. very slight, insignificant (paragraph 4) _____
8. lack of specific knowledge in a business field (paragraph 6) _____
9. domestic (paragraph 7) _____
10. a brand which is not very well known to the consumer (paragraph 7) __
11. a market where there are more consumers than the products they want to
buy (paragraph 7) _____
 48

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

1) beverage a) become twice as many
2) persuasive b) significant; great
3) saturated c) to keep something at a certain amount
4) mature d) convincing
5) to limit e) worries
6) concerns f) something to drink
7) sector g) doubting the sincerity of something or someone
8) cynical h) full
9) spectacular i) area
10) to double j) grown-up

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

Red Bull has been used as an s______ example of how to create a successful
company based on the product. The ideas originally used to market the energy
drink can truly be called r______. When Red Bull first arrived on the market,
there were other b_____ it had to compete with. However, the idea of creating a
marketing campaign designed specifically to a_____ to the young generation
added to the success. By creating a true ‘buzz’, Red Bull was able to d_____
their sales figures every year. And this in a s_____ where competition was
tough. By moving away from traditional p_____ advertising campaigns, Red
Bull actually encouraged their customers to become their market researchers
and sales people, an excellent idea in an already s_____ market. What the
future will bring is always impossible to predict but we can assume that the
g_____ success of this brand will continue to reach beyond the borders of
Austria where the headquarters are situated.

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

1. Red Bull has been successful because the idea of an energy drink was a totally
new concept when it was launched.
2. Red Bull’s success is largely due to the fact that the company hired a well-
known advertising agency to create their adverts.
 49

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

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

Case study Texan Chicken

Read the case and advise the top managers on their future strategy to turn the
company round. How should Texan Chicken position itself on the market in the
future: as a leader, differentiator or a focuser?
Background Texan Chicken was founded by Eva and Ramon Martinez. They had
had no previous experience in the restaurant industry. They opened their first
restaurant in West London, and within five years had built up a chain of 40 outlets,
using a franchising system.
The reason for their success was the quality of their product. Their delicious fried
chicken was based on a recipe that Ramon had discovered when traveling in Texas. It
was served with a sauce which varied from mild to very hot, depending on the
customer’s taste. All the restaurants offered a take-out service, which was popular with
customers. When Texan Chicken went public the share price rose by 12 % within a
week. There seemed to be no limit to Texan Chicken profits and expansion.
Present situation Unfortunately the company’s share price has fallen recently by
over 80 %. There has also been strong pressure on Eva and Ramon Martinez to resign
as co-chairmen of the business. At present, they own 40 % of the shares. The other
major shareholder is a South African businessman, Martin Webb, who owns 12%. Eva
and Ramon Martinez have called in a team of management consultants to advise them
on their future strategy.
Consumer survey (summary)
Customers
Age: 18-30 58 %
30-40 32 %
40+ 10 %
 50

Sex: Male 54 %
Female 46 %
Status: Single 65 %
Married, no children 23 %
Married, with children 12 %

How often customers visit the restaurants

First visit 8%
More than once a week 5%
Once a week to once a fortnight 29 %

Food products bought most often

1. Quarter chicken, salad and rice
2. Chicken breast burger

Customers’ opinion (%) good OK poor

Quality/freshness of food 40 50 10
Value for money 10 30 60
Service 8 38 54
Cleanliness 6 14 80
Friendliness of staff 24 48 28
Décor 1 34 65

Task
You are members of management consultant team called in by Eva and Ramon
Martinez to advise them on their future strategy. Discuss the options below. Consider
any other ideas for improving profitability. Work out a plan of actions which will turn
the company round.
 51

Options
The following options will be discussed by the management consultants at their next
meeting.
1. Persuade Eva and Ramon Martinez to resign. Appoint a new Chief Executive
with extensive experience of franchising in the food industry.
2. Seek opportunities to merge with a large fast food company which could offer
management expertise and financial resources.
3. Improve profits by extending in Europe through joint ventures. A German
supermarket chain has already shown interest in such a venture.
4. Make major changes in the business, e.g.:
a) Have more company-owned outlets. This would give greater control
over the restaurants.
b) Offer special promotions (e.g. huge discounts on certain meals).
c) Launch a major advertising campaign.

Unit 5 SWOT analysis

Before entering the marketplace it is essential to carry out a SWOT analysis.

Read the text about a SWOT analysis and decide if the sentences below are true
or false.

Before entering the marketplace it is essential to carry out a SWOT analysis. SWOT
analysis is an assessment of an organization’s internal and external environment. In
other words, SWOT analysis identifies the strengths and weaknesses of a product,
service or company, and the opportunities and threats which the company faces.
Internal environment means all controllable elements inside an organization that
influence how well the organization operates. Under internal strengths and weaknesses
we should understand the firm’s human and intellectual capital. What skills do the
employees have? What kind of training have they had? Are they loyal to the firm? Do
they feel a sense of ownership? Has the firm been able to attract top researchers and
good decision makers?
Intrernal strengths may also lie in the firm’s technologies. What is the firm able to
do well that other firms would find difficult to duplicate? What patents does the firm
hold?
 52

A firm’s physical facilities such as buildings, land, furniture, equipment, can be an

important strength or weakness as well as financial stability, relationships with
suppliers, the firm’s corporate reputation.
The external environment consists of those uncontrollable elements outside of the
organization that may affect it either positively or negatively. The external
environment includes everything from customers to suppliers to competitors to
government regulation to the economy.
A SWOT analysis is often used as a tool in strategic planning. It can also facilitate
the understanding of a company’s position on the market and decision-making for all
sorts of situations. Many academics and consultants believe a SWOT analysis works
best when it is a part of an overall strategy. This strategy may be as simple as:
objective-SWOT-evaluation-action.
If an organization undertakes strategic planning it will at some point assess its own
strengths and weaknesses. Effectively combining its strengths and weaknesses with the
opportunities and threats in the organization’s external environment, the firm can
determine its current position on the market.
\ The SWOT analysis may look simple but it takes time, significant resources, team
efforts to be both effective and meaningful. It cannot be done effectively by only one
person. A SWOT analysis generates information that is helpful in matching an
organization’s goals, programs and capacities to the social environment in which it
operates.
It is important to note that the strengths and weaknesses are skills or assets which
the company has (or doesn’t have) compared to its competitors. Opportunities and
threats are external factors which are not created by the organization; they emerge as a
result of the future gaps in the market.
SWOT analysis helps a company to make use of strengths and capitalize on them,
deal with weaknesses and minimize them, anticipate threats that may affect the
organization negatively in the future, and spot business opportunities and exploit them
fully.
1. A SWOT analysis can help companies decide what they should do.
2. The SWOT analysis is about the situation the organization is in at the
moment.
3. A SWOT analysis should be conducted by an individual person.
4. Strengths and weaknesses come from outside the organization.
5. Opportunities and threats come from inside the organization.
 53

Language focus

1. Look through the article and find words and word partnerships
corresponding to the words and word partnerships given below.
Выйти (вывести компанию) на рынок; проводить SWOT анализ;
оценка внутренней и внешней среды организации; другими словами;
определять сильные и слабые стороны; сталкиваться с угрозами;
работать на рынке; испытывать (ощущать) чувство собственности;
специалисты по исследованию рынка высшей категории; заключаться в
(находиться в); дублировать (повторять); взаимоотношения с
поставщиками; оказывать положительное или отрицательное влияние;
государственное регулирование; использовать как средство
(инструмент); облегчать понимание; общая стратегия; оценка;
предпринимать (браться за) стратегическое планирование; давать
оценку сильным и слабым сторонам; сочетать сильные и слабые
стороны с возможностями и угрозами; определить настоящее
положение компании на рынке; формировать (выдавать) информацию;
соотносить (сопоставлять) цели организации и её мощности с социальной
средой; появляться в результате; пробел (брешь) на рынке;
использовать сильные стороны; воспользоваться преимуществом
сильных сторон; решать проблемы с недостатками (слабыми
сторонами); предвидеть угрозы; определять (находить)
возможности; широко использовать возможности.

2. Match the definitions on the right to the words from the text on the left.

1） to make something possible or easier to do a) to undertake

2） to copy something exactly b) to anticipate
3） things such as buildings, shops or services that c) to assess
help someone do something d) strategy
4） to use something to one’s advantage e) ownership
5） to imagine or expect something will happen f) to duplicate
6） the amount a factory can produce g) a tool
7） to make a judgement about a situation after h) to generate
 54

considering all the information i) capacity

8） to see or recognize j) to emerge
9） the state of owning something k) to capitalize on
10) a method of doing a particular task l) to spot
11) to appear; to become known m) facilities
12) to produce something that will help a firm n) to facilitate
improve its work
13) a plan or series of plans for achieving success in future
14) to do or begin something, especially something
difficult

3. Complete the sentences using words from below. Translate the sentences
into Russian.
tool capitalize spot capacity undertake anticipate
facilitate duplicate ownership assess facility

1. If a company decides to ____ a strategic planning, it needs to carry out a

SWOT analysis first.
2. It’s very difficult for our competitors to ____ our goods because of their
high quality and original design.
3. We have to be very careful while ____ the data we collect from customers.
Their judgement about our products can influence the choice of goods to be
produced.
4. It is necessary to follow the market trends in order to ____ future major
changes.
5. Doing a SWOT analysis ____ the understanding of a firm’s position on the
market.
6. It’s very important for a company to ____ opportunities in time and be able
to ____ on them.
7. This factory has a productive ____ of 200 cars a week.
8. Our hotel offers an up-to-date training ____ to its business clients.
9. He is now the proud owner of a new car and experiencing a great sense of
____ he has never felt before.
10. There are lots of different marketing ____ to attract new customers to a
company’s goods.
 55

4. This is a SWOT analysis of PetraServe, a company which runs motorway

service stations. Read and translate the information.

Strengths
Superior distribution network – we have one of the best.
We are the specialist in meeting long-distance petrol needs for lorry and truck drivers
– we have experience, knowledge and skill.
Consumers see us as a quality brand.
Our innovative loyalty program is unique on the market.
We are a profitable company – we are making money.
Our brand is highly recognizable, a global brand.
Weaknesses
Undifferentiated offer in terms of basic product – petrol is the same whatever the
brand.
Lack of new products – we need more.
Ineffective usage of specialist image – we don’t use our specialist image well.
Inferior communication – we could communicate better.
Consumer loyalty is weak.
Opportunities
Developing market for service station shop (confectionary, car maintenance products,
etc.).
Gap in the market – hybrid cars and electric cars will need fuel.
Huge potential for growth – there is a lot of room to expand into new markets.
Threats
Our main competitor is strong.
Price war in the fuel market is becoming more threatening – all our competitors are
cutting prices.
Emerging trend towards hybrid cars and electric cars.
Consumer fears about environment and pollution.

5. This is the report made on the basis of the SWOT analysis conducted by
PetraServe Company. Read and translate the following report paying
attention to the words in bold.
 56

As a result of the conducted SWOT analysis, the following marketing strategy was
shaped:
“We need to exploit our strengths by making the most of our distribution network
and loyalty program. If we can build on strengths such as our brand image and
current profitability, it will be easier to deal with weaknesses such as the lack of new
products.
We need to anticipate the threat of new hybrid cars and seize the new opportunity –
providing service points for these cars. The potential price war in the fuel market
poses a serious threat and we will need to minimize the weaknesses this may create.
Our sector is also under threat from the trend towards greater consumer concerns
about the environment, but we believe we can create an opportunity by
strengthening our communication and informing consumers about what we are
doing to preserve the environment.

6. Match the word partnerships on the left from the report to their definitions on
the right.
1) to exploit strengths a) to foresee or expect
2) to build on strengths b) to get the best advantage from
3) to seize the opportunity c) to be the cause of something; to present
4) to make the most of something d) to take action about; to tackle
5) to pose a threat to e) to try or be eager to take
6) to anticipate the threat f) to use fully so as to get profit
7) to deal with weaknesses g) to use as a base for future development

7. Translate the following sentences into English using word partnerships from
exercises 5 – 6 above.
1. В своей новой работе она сможет опереться на свой предыдущий опыт работы
в маркетинге.
2. Озабоченность потребителей загрязнением окружающей среды представляет
угрозу выпуску нашего нового товара.
3. Наша уличная реклама привлекает молодых людей, и мы должны полностью
воспользоваться этим. Необходимо сделать рекламу ещё более яркой, чтобы не
потерять их интерес.
4. У нас много конкурентов. Нам нужно предвидеть угрозу их проникновения на
наш рынок.
 57

5. Чтобы быть впереди конкурентов нам необходимо использовать наши

сильные стороны и быстрее справляться с нашими недостатками.
6. Учитывая интерес наших покупателей к нашему товару, мы должны
воспользоваться возможностью расширить наш потребительский рынок.

8. The following comments are from a SWOT analysis of Caffe’ Italia, a UK

coffee retail outlet. Arrange them as factors in the SWOT diagram below. Pay
attention to the words in bold. Translate into Russian.

1. Caffe’ Italia is a UK coffee brand built upon a reputation for fine product
and services.
2. Some of the company’s personnel still lack essential skills.
3. Caffe’ Italia is opening new locations and branches to exploit market
development and expand its range.
4. Another type of beverage or leisure activity may replace coffee in the future.
5. The company is over-dependent on the retailing of coffee, and should
consider diversifying.
6. This global retailer is a respected employer that values its workforce.
7. Caffe’ Italia is exposed to (not protected from) rises in the cost of coffee.
8. Co-branding with other manufacturers of food and drink and brand
franchising to manufacturers of other goods and services have potential.
9. The organization has strong ethical values and an ethical mission
statement.
10. Caffe’ Italia should consider extending its market presence into Asia.
11. The success of Caffe’ Italia has led to the market entry of many copy-
cat brands that now pose a potential threat.

Strengths Weaknesses

Opportunities Threats

9. Translate the following sentences into English.

1. Наша компания является всемирным розничным торговцем кофе.
 58

2. Репутация компании строится на отличном продукте и

высококачественном обслуживании.
3. Компания уважает и ценит своих работников.
4. Компания постоянно создаёт новые филиалы с целью освоения рынка
и расширяет ассортимент продуктов.
5. К сожалению, сотрудникам компании часто не хватает
профессиональных навыков.
6. Прибыль компания слишком зависит от розничной продажи кофе.
Руководству компанией следует рассмотреть возможность стратегии
диверсификации, т.е. расширения ассортимента.
7. Сотрудничество двух марок для создания новой марки достаточно
перспективно. Кроме того, право предоставляемое другим компаниям
торговать марочным товаром Caffe’ Italia, облегчит вступление Caffe’
Italia на Азиатский рынок.
8. Расширить своё присутствие на Азиатском рынке одна из
стратегических задач компании.
9. Потенциальной угрозой для Caffe’ Italia является появление на рынке
марок-подражателей.
10. Рост стоимости кофе также представляет собой угрозу для компании.

11. Put the stages of the SWOT analysis in the correct order. Then read the
text to check.
1. Decide which points will help the organization reach its strategic goals.
2. Collect the information.
3. Make the report available.
4. Record the information.
5. Write a report.
6. Decide how the information is to be collected and who is going to collect it.
7. Identify appropriate sources of information.

Doing a SWOT analysis can be very straightforward. Firstly, the organization needs
to identify what data they need and who is responsible for collecting it. The data
should then be gathered and recorded in a diagram so that it will be easy to discuss the
information. The next step is to determine what the most important points are and what
planning choices the organization has to choose. After that, the team should create a
 59

report on their findings and, finally, make sure that the report is available to everyone
concerned in the process.

Marketing practice:
Case study: Breaking glass

One way of quickly assessing the health of a company is to perform a SWOT

(Strengths, Weaknesses, Opportunities and Threats) analysis.

Strengths and weaknesses are internal issues such as product quality and working
relations, while opportunities and threats are external issues, such as new markets and
foreign competition.

Read the information about the Macbeth Glassware Company.

Macbeth Glassware
Macbeth Glassware, founded in 1837, has a long history of producing beautiful
glass objects and ornaments. They have always been popular wedding presents. Glass-
blowing and glass-cutting, which are performed by hand, are highly-skilled jobs and
Macbeth employs some of the best craftspeople in the world (average age 53). The
factory produces over 8,000 glass objects per year, of which 1,000 are responsible for
80% of overall sales. There is a lot of waste and breakage. Each item is inspected by a
supervisor who checks it for flaws and then issues a certificate of authenticity. Up to
20% of finished items are sold as seconds (with only small defects), and the remaining
5% are melted down and recycled.
The company employs 600 people. 200 produce the goods, and the rest are clerical
staff, working in the stock room, or are managers. Most craftspeople are paid on a
piece-work basis (for how much they produce), and feel that they have low status in
the company. There is a big division between blue-collar staff and white-collar clerical
workers, with separate restaurants and facilities for factory workers and management.
There are five levels of management in the company, and a poor relationship exists
between management and the workforce.
Sales have fallen dramatically in the past three years. There is a strong competition
from Czechia and Poland, which produce good quality goods which are less expensive.
Department stores have complained about late deliveries and slow ordering facilities
(mail order only). A few years ago the company launched a cheaper range of glass
 60

ornaments called the MacAnimals range. This has damaged the company’s upmarket
image. An important chain of department stores has stopped stocking Macbeth
products. The consultants believe there could be a big market for these goods in North
America (including Canada), Australia and New Zealand, where many people are of
Scottish origin.

1. Decide if these statements are true or false.

1. The company has an established reputation for producing quality goods.

2. It finds it hard to compete with overseas competitors.
3. Macbeth’s traditional management is popular with its workforce.
4. There is solidarity between different members of the workforce.
5. There is a lot of unnecessary waste.
6. MacAnimals made the company appear to move down market.
7. It has recently lost a key customer.
8. The firm has been unable to identify any new markets.

2. Complete the analysis by using the information from the text you have just
read.
Identify strengths, weaknesses, opportunities and threats of the company.

3. Make recommendations which could help to save the company. Think in

particular about what could be done to :
- change the company culture
- improve quality and cut waste
- cut costs
- find and explore new markets
- restore its image

Key expressions you can use when you suggest something or recommend:
I suggest we should do …. Have you thought about ( + ing)…
I suggest ( + ing) …. I think we should consider ….
What / How about (+ ing) … It would be good to ….
Could we do … I would recommend that we should …
I would recommend (+ ing)…
 61

Unit 6
Marketing research 1

Types of research
Marketing research is the process of gathering information about a market, analyzing
it and interpreting it. Although the term market research is often used to mean the
same thing, technically it only refers to research into a specific market.
Consumer research – used to discover behavior patterns (how people act) and
customer needs – is an essential element of marketing research.
Motivation research investigates the psychological reasons why individuals buy
specific types of merchandise, or why they respond to specific advertising appeals.
There are two main methods of consumer research:
desk (desktop) research or secondary research: an analysis of the
information you can find easily without leaving your desk. Examples
include the internet, books, newspapers, magazines, and government
statistics.
field research or primary research: involves talking to people and finding
out what they think about a market, a product, a business sector, etc. It is
usually carried out by market research institutes.
Consumer research can be either quantitative or qualitative. In qualitative research,
small group discussions or in-depth interviews with consumers are used to understand
a problem better. Quantitative research involves collecting or gathering data (for
example, on how many people use different products), followed by statistical analysis
– examining, or analyzing, the data. Quantitative research is often used to investigate
the findings from qualitative research.

Marketing research techniques

Focus group typically consists of five to nine recruited consumers who sit together to
discuss a product, ad, or some other marketing topic introduced and led by a trained
moderator.
Package test is used to test ideas for new packaging, could be in a focus group.
Taste test is used to test what consumers think about new flavors.
Home test: consumers try the product at home, in a real situation.
 62

A self-administered questionnaire is completed (or filled in) by the respondent.

An interviewer-administered questionnaire is filled in on behalf of the respondent
by an interviewer.
Telephone surveys are carried out by telephoning the respondent and asking
questions.
A mail survey is mailed to the respondent, who completes it and posts it back.
Online surveys are administered on the Internet.
Mystery shopping: a person poses as a consumer and checks the level of service and
hygiene in a restaurant, hotel or shop.
Omnibus surveys: a market research institute carries out research for several
companies at the same time. A long survey is given to respondents, some institutes
have a panel of existing respondents who are accustomed to answering the surveys.

Language focus

1. Look through the article and find words and word partnerships
corresponding to the words and word partnerships given below.

Собирать информацию; толковать (интерпретировать информацию);

изучение потребителей; манера поведения; мотивационный анализ (анализ
мотивации); исследовать психологические причины; определённые типы
товара; реагировать на рекламную концепцию (идею); кабинетное
исследование (вторичное); вне кабинетное (полевое) исследование;
первичное исследование; проводить исследование; количественное
исследование; качественное исследование; групповое интервью (беседа);
результаты исследования; целенаправленное групповое интервью; ведущий
интервью; испытание (проверка) упаковки; дегустация; испытание товара
в домашних условиях; анкета (опросный лист); анкета самостоятельного
заполнения (заполняемая опрашиваемым лицом); опрашиваемое лицо
(респондент); анкета, заполняемая интервьюером; заполнять анкету от
имени опрашиваемого лица; опрос по телефону; опрос по почте; порос по
интернету; тайное совершение покупки; тайный покупатель; выдавать
себя за покупателя; общий опрос (проведение опроса для нескольких
компаний одновременно); панель (выборка потребителей регулярно
подвергающихся опросам).
 63

2. Match the types of research with the research problems below. Look at the
text to help you.

desktop + secondary qualitative + field

motivation + primary quantitative + primary

1. The R&D department want to know why people buy mobile phones so that
they can develop a new model that meets all the major needs.
2. The design team want to know how consumers feel about the new layout of
the company website before they finalize and launch the new homepage.
3. A manager wants to have financial data on her company, her competitors
and the economy in general.
4. The marketing team want to have a lot of data on their consumers: age,
shopping habits, email address, etc.

3. Complete the sentences. Look at the text to help you.

1. A lot of marketing research institutes carry out ….. surveys. They ring people at
home and ask them questions.
2. A ….. is a small discussion group, led by a ….. who asks questions to get and
qualitative information.
3. A marketing research institute may prepare a lengthy ….. survey which it posts
to consumers at their homes. These ….. surveys have questions from several
different companies on them.
4. Some questionnaires are completed by the ….. (self-administered
questionnaires) and some are completed by the interviewer ( ….. - …..
questionnaires)
5. ….. surveys are usually carried out in-store to assess the levels of service
quality and cleanliness.
6. A ….. test is designed to find out what consumers think about packaging, and a
….. test is to find out what they think about the flavor of a product.

4. Complete the text below with words and phrases given below.
dustbin survey samples survey blind focus group consumers
 64

attitudes questionnaires perceive market research

Organizations which want to find out how the public (1) _____ their products or
services usually carry out some form of (2) _____. A street (3) ____ where passers-by
answer questions or complete (4) _____, is the most common method. Another is
(5) ____ testing, where volunteers taste and analyze anonymous (6) ____ of food and
drink. A (7) ____, where a researcher visits households and studies the labels of the
products which have been consumed, is useful for longer-term research. A very
sophisticated technique is to run a (8) ____. This is where a researcher encourages a
group of (9) ____ to discuss their (10) ____ to different products. This discussion is
secretly observed and often filmed.

5. Translate the text into English. Use the following connecting words or
phrases such as:
but however from the point of view due to (the fact that) as a rule
here (при этом) because of because

Личный опрос (индивидуальное интервью), когда один исследователь задаёт

вопросы одному респонденту, имеет большое преимущество: интервьюер
получает возможность быть гибким при постановке исследовательских вопросов
и фиксировать ответные реакции опрашиваемого. Однако индивидуальные
интервью имеют один весьма существенный недостаток – они очень дороги.
Опросы по почте обходятся, как правило, дешевле личного интервью, но в
этом случае готовность к ответу может проявить лишь тот респондент, который
имеет положительный или отрицательный опыт использования исследуемого
продукта и у которого есть время на переписку. С точки зрения гибкости и
издержек опрос по телефону занимает промежуточное (intermediate) положение
между двумя этими методами опроса.
В связи с высокой стоимостью проведения личных интервью на дому у
опрашиваемых широкое распространение получили интервью в местах продаж,
которые представляют собой личные опросы покупателей в торговых центрах.
Благодаря таким беседам один на один снижаются затраты на визиты в дома
потребителей; при этом обеспечивается гибкость опроса, поскольку интервьюер
получает возможность демонстрировать респондентам наглядные материалы –
рекламные объявления или образцы реальных товаров.
 65

С развитием компьютерных технологий появилась возможность моделировать

«виртуальные посещения» магазинов, когда респондент, участвующий в опросе,
«ходит» по магазину и «покупает товары», сидя у монитора.
6. There is a STEEP analysis which involves examining the social,
technological, economic, environmental and political factors that affect an
organization. STEEP analysis relates to a marketing and strategic instrument
for studying the macro environment in which we carry out our business
activities. Regular use of such a management instrument can help us find
opportunities for growth and set a clear direction for our operations.

What does the acronym STEEP stand for?

STEEP analysis
1. Social factors
Changing demographics over time, based on pattern of birth and death of
the population
Changes in life style, recreation and leisure patterns
Changes in social trends, including migration pattern

2. Technological factors
Information technology for business management
Social networking

3. Economic factors
General economic trends and changes in local, national and global markets
Tax and insurance

4. Environmental factors
Energy efficiency and sustainability, i.e. using raw materials and energy in a
manner that does not harm the environment
Recycling waste material

5. Political factors
National legislation that regulates competition
Protection of consumer rights
 66

7. Translate the following text.

Анализ внешней и внутренней среды маркетинговой деятельности в России

В ходе анализа внешней и внутренней среды были выявлены следующие
тенденции:
1) рост числа пожилых россиян;
2) движение в сторону философии «делай сам» и «полагайся только на себя»;
3) миграция населения;
4) перемены в семейно-брачных отношениях;
5) усиление дифференциации населения по уровню доходов;
6) изменение структуры потребления;
7) широкое применение информационных и коммуникационных технологий;
8) применение новых технологий, что приводит к снижению цен на товары;
9) формирование финансово-промышленных групп;
10) рост числа малых предприятий;
11) расширение прав потребителей;
12) принятие законов, защищающих права потребителей;
13) совершенствование нормативной базы, регулирующей конкуренцию.

Marketing practice:

1. Work in pairs. Imagine you run a market research organization. Discuss

which research methods you would recommend to clients in these four
situations. Explain why.

1. A manufacturer of a substitute for butter wants to know how to position its

product against its competitors. The manufacturer would like to know what
consumers think of the taste compared to rival products, including butter.
2. The managers of an airport want to find out how travelers and passengers
perceive the services offered inside the airport terminal.
3. A marketing research organization has to produce monthly reports with
information about the buying habits of consumers. It studies the same
consumers over a period of several years.
 67

4. The directors of a supermarket chain want to find out why customers prefer
their main competitors.
5. A city administration wants to find out how effectively local transport system
works and if the passengers are satisfied with its services.

Marketing Research 2

Talking about numbers

1. Movements
Downward movement Upward movement
Verb Noun Verb Noun
to fall a fall to rise a rise
to go down ------ to go up -------
to decrease a decrease to increase an increase
to drop a drop
to reduce a reduction

double
The number of satisfied triple / three times that in 2010.
consumers in 2014 was quadruple / four times

There was a twofold increase in the

threefold number of
fourfold intentions to buy
between 2009 and
2015.
Approval ratings increased twofold between 2010 and
threefold 2015.
fourfold
Approval ratings doubled between 2010 and
trebled 2015.
quadrupled
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Describing survey results

There is a number of different ways to talk about survey results.

Recent research highlight (s) the need to …..

The survey indicate (s) that the respondents feel strongly about …
The latest figures reveal (s) that the trend is upward / downward …
The key findings show (s) satisfaction with the service – people are
suggest (s) happy with it.
dissatisfaction with the product range –
people don’t like it.
that our consumers would prefer to see …
A mere 5% said taste was very important.
Ten percent claimed taste influenced their purchase.
Over half of the stated that taste is an important part of the
Almost 60% respondents decision to buy.
Nearly two thirds rated the new taste better than the old one.
thought the taste was much better.

Understanding trends and changes

Look at the graph showing consumer ratings of the product over a ten-year period.
Translate the presentation made on the basis of the graph showing the results of a
survey of consumer ratings for a brand of mobile phones.

70

60

50

40

30

20

10

00
 69

1 2 3 4 5 6 7 8 9 10

The graph shows consumer ratings of the product over a ten-year period. You can see
that after the launch of the product the ratings rose to 33%. The trend was stable until
the arrival of a major competitor in the market. This led to a slight fall in approval
ratings. The relaunch of the brand invigorated the product and so you can see ratings
rose to 60%, the ratings doubled. However, reports in the national press have had a
negative effect on the brand image and approval ratings have dropped. Compared to
the same period last year, a significantly higher number of consumers have a low
opinion of the product and the brand image. The percentage of dissatisfied respondents
has trebled.
Although it seems to be very negative, your initial guesstimates, your predictions
before you had the figures, were much worse.

Notes:
rating – оценочный коэффициент; оценка
approval rating – положительная оценка
guesstimates – предварительные расчёты

Percentages, fractions and proportions

Percentage Fraction Proportion

twenty-five percent (25%) a quarter ¼ one out of four
thirty three percent (33%) a third 1/3 one out of three
fifty percent(50%) a half ½ one out of two
sixty six percent (66%) two thirds 2/3 two out of three
seventy five percent(75%) three quarters ¾ three out of four

Read the text and draw a pie chart according to it.

The pie chart shows the split (or breakdown) of our annual marketing budget. We
have just over $7.5 m. Of this we will spend roughly half a million on advertising, and
approximately $1m on promotions. We will use almost $3 m on direct mail, and
postage and handling charges will represent exactly 72% of that $3 m. We will spend
 70

$1 m on merchandising. Research, trade fairs, RP and conferences / exhibitions will

cost $2 m.

Read the extract from a survey of blog readers, and correct any mistakes in the
sentences below. Look at the information above to help you.
Thanks to the 17,159 blog readers who responded to our survey!
This survey shows that blog readers are older and more affluent than most optimistic
guesstimates: 61% of blog readers responding to the survey are over 30, and 75% earn
more than $45,000 a year.
Moreover, blog readers are even more cyber-active than we’d hoped: 54% of their
news consumption is online. 21% are themselves bloggers and 45% describe
themselves as opinion makers. And, in the last six months, 50% have spent more than
$50 online on books, and 47% have spent more than $500 on online tickets.
Blog readers are big media consumers: 21% subscribe to the New Yorker magazine,
15% to the Economist, 15% to Newsweek and 14% to the Atlantic Monthly. They are
also far more male – 79%! – than we expected, versus 56% of NYTimes.com’s
readers.
1. Three quarters of the respondents earn more than $45.000 a year.
2. Almost half of their news consumption is online.
3. A mere 79% of respondents are male.
4. One out of two respondents has spent more than $50 online on books.
5. The survey suggests that all bloggers are over 30.

Marketing practice:
You work as a retail consultant and were asked by the head office of the supermarket
to conduct a customer survey following a number of complaints.
Write a report giving details of the complaints and your recommendations.
Look at the table above to help you.

Customer survey
100 people interviewed (at various times)
Complaints
1. Opening hours Recommendations
- store often closed at a quarter to 7, says 7 admit people up to 7 + make
on door announcement 5 min before
closing;
 71

- doesn’t open until 10 – people can’t do another survey to find out

buy things on the way to work the best time to open;
- why not open on Sundays? one month trial period;
2. Product availability and quality
- things like bread and milk not left review stocking procedures
at the end of the day (new computer system?)
- some products past their sell-by date

3. Customer service
- long queues
- shop assistants don/t know where things employee training program
are (employee of the month
- cashiers never put shopping in bags award?)
another survey in 6 months
to check on improvements?

Unit 7
Consumer behavior and market segmentation

Read the text and say why people buy, what can influence their buying decisions,
and what steps they take to buy a product.

Consumer behavior is an ongoing process people go through to select, purchase, or

use goods, services, ideas, or experiences. People make their buying decisions only
after they have undergone a series of steps. These steps include problem recognition,
information search, evaluation of alternatives, product choice, and post purchase
evaluation.
Traditionally, researchers have tried to understand how consumers make decisions
by assuming that people carefully collect information about competing prices,
determine which products possess the characteristics or product attributes important to
their needs, weigh the pluses and minuses of each alternative, and arrive at a
satisfactory decision.
Nowadays, researchers realize that decision makers actually possess a set of
approaches depending on the importance of what is being bought and how much effort
the person is willing to put into the decision. There can be a habitual decision making
 72

(such as deciding to purchase a bottle of mineral water) and extended problem solving
(such as deciding to buy a new car).Many decisions fall somewhere in the middle and
are characterized by limited problem solving, which means that consumers do work to
make a decision, but in most cases they rely on a simple rule of thumb instead of
learning all the pros and cons of every product alternative.
Purchase involvement determines the extent of effort a person puts into deciding
what to buy. As a rule we are more involved in the decision making process for
products perceived as risky in some way. Perceived risk may be present if the product
is expensive or complex and hard to understand. Perceived risk can also take place if
choosing the wrong product affects a social image of a consumer. When perceived risk
is low, as in buying a bottle of mineral water, the consumer feels low involvement in
the decision making process.
In low involvement situations, the consumer’s decision is often a response to
environment cues, such as when a person decides to buy a product because it is
permanently displayed at a store checkout counter. Under these circumstances,
managers must concentrate on how products are displayed at the time of purchase to
influence the decision making.
For high involvement purchase, such as buying a house or a car, consumer is more
likely to carefully examine all of the available information and to think about the
decision well before going to buy the item.

Comprehension / Interpretation
1. What kind of process is consumer behavior? Why is it important for marketers
to understand consumer behavior?
2. What steps do consumers take to make a purchasing decision?
3. What was the traditional marketers’ view on how consumers approach to
making a purchasing decision?
4. What does making a purchasing decision depend on now?
5. What is the difference between habitual decision making and extended problem
solving?
6. What do we mean under a perceived risk?
7. When speaking about purchasing products we use the term involvement. What
is meant under involvement?
8. What other examples of low involvement goods can you think of?
9. What other examples of high involvement goods can you think of/
 73

Language focus

1. Look through the text and find words and word partnerships
corresponding to the words and word partnerships given below.

Поведение покупателей; непрерывный процесс; выбирать (отбирать)

товары; принимать решение о покупке; пройти ряд шагов; выявление
проблемы (осознание потребности); поиск информации; оценка вариантов;
послепродажная оценка; предполагать; тщательно собирать информацию о
ценах конкурентов; определять свойства (характеристики) товаров; изучить
достоинства и недостатки каждого товара; приходить к удовлетворительному
решению; зависеть от; вкладывать усилия в; обыденный вариант решения
проблемы; расширенный вариант решения проблемы; ограниченный
вариант решения проблемы; полагаться на; правило случайного выбора;
все «за» и «против»; вовлечённость в покупку; размер (масштаб) усилий;
предполагаемый риск; общественный имидж потребителя; ответная реакция
на сигналы окружающей среды; выставлять напоказ; контрольно-кассовый
пункт; при данных обстоятельствах; изучить имеющуюся информацию.

2. The marketer needs to know what people are involved in buying decisions
and what role each person plays. Consider the selection of a family car.
Identify the role of each person involved in purchasing a car and a decision
maker.
user influencer initiator buyer decider decision maker

1. The initial suggestion might come from the oldest child. He or she would be the
…. .
2. A friend or colleague might advise the family on the kind of car to buy. He or
she would be the ….. .
3. The husband could be the one to choose the make while the wife might have a
definite opinion regarding the car’s style. They would be the ….. .
4. The husband may well be the one actually to buy – the ….. .
 74

5. The wife might end up using the car more than her husband. She would be the
….. .
6. Who is the decision maker?

3. The decision making process.

Brandon, a consumer, is in the market for a new car. He is going to take a
highly involving purchasing decision.
Rearrange the steps he underwent before taking the decision. Name them.
Look at the text to help you.

a) Brandon talks to friends, visits car showrooms, reads Consumer Reports to

get an idea of the new cars in which he might be interested.
b) Brandon is fed up with driving his old car.
c) Brandon drives his new car and decides he’s happy with his choice.
d) Brandon chooses one car because it has a feature that really appeals to him
and he likes the image it projects.
e) Brandon narrows up his choices to three car models and thinks about the
good and bad features of each option.

4. Collocations – consumers
All the words given below form strong collocations with the word
consumer.
Match up these collocations with the definitions below. Translate them.
a) consumer behavior f) consumer boycott
b) consumer confidence g) consumer credit
c) consumer durables h) consumer goods
d) consumer market i) consumer panel
e) consumer profile j) consumer spending

1. A description of the typical customer likely to be interested in a particular

product, in terms of age, class, income, and so on.
2. A group of people chosen by a company to give advice or opinions about
products.
3. Goods in everyday use, such as food, clothing, household goods and services
such as hairdressing, retail banking, etc.
 75

4. Goods that last a long time, such as cars, ‘white goods’ (fridges, cookers),
‘brown goods’ (televisions, stereos), etc.
5. How people in general feel about their job security, future economic prospects,
etc.
6. How different people react to marketing stimuli, depending on their
psychology, their cultural and social background, and their economic situation.
7. The amount of money being spent on consumer goods and services, which
fluctuates with recessions and booms.
8. The amount of money borrowed by people to buy goods and services,
depending on confidence and the economic cycle.
9. The individuals and households that buy products for their own personal
consumption.
10. When customers refuse to buy the products of a company they disapprove of for
ethical or political reasons.

5. Complete the paragraph with the collocations from the exercise given
above.
A government spokesman yesterday insisted that the latest figures showed that
(1) ….. was returning, and that (2) ….. was increasing. Several retailers disagreed, and
suggested that sales of (3) ….. had only increased in January because all the major
stores had had extended winter sales and discounted prices by up to 20%. The banks
say that the level of (4) ….. remain low because many people pay off earlier debts, and
are afraid to make new ones.

6. Translate the following sentences into English.

1. Наша первоочередная задача – оправдать доверие покупателей к нашему

продукту.
2. Снижение покупательского кредита обычно происходит во время
экономических спадов и показывает, что потребители не хотят брать на
себя обязательства (commit oneself to) по долгосрочным выплатам.
3. Потребительские расходы снижаются, особенно на товары длительного
пользования – кажется, никто не заинтересован в покупке нового
автомобиля.
 76

4. Используя выводы и мнения потребительских панелей (постоянных

выборок респондентов) по всей стране, нам удалось реконструировать
свыше 1000 существующих товаров.
5. Профиль потребителей нашей компании значительно моложе, чем
профиль потребителей наших конкурентов. Это объясняется модным
имиджем одежды, которую мы продаём.
6. Потребительские привычки и покупательское поведение меняются по мере перехода
семьи от одного жизненного этапа к другому.
7. Market segmentation identifies groups of buyers within a market who
share similar needs and demonstrate similar purchasing behavior.

There are different types of segmentation:

geographic psychographic demographic benefit
income sex behavioristic

Read the definitions of segmentations and find the appropriate type to each
of them.

1. Dividing a market according to the areas the company operates _____

2. Dividing a market according to consumers’ age and life cycle _____
3. Dividing a market according to gender _____
4. Dividing a market according to how much money a person earns _____
5. Dividing a market according to consumers’ education and lifestyle, their
personality characteristics _____
6. Dividing a market according to buyers’ knowledge of a product, their
attitude, uses and responses to a product _____
7. Dividing a product according to the different benefits that consumers seek
from the product _____

8. Translate the following word partnerships into English.

1. Сегментирование по психографическим признакам (подразделение

покупателей на группы по принадлежности к общественному классу,
образу жизни, уровню образования).
2. Сегментирование по географическому признаку.
3. Сегментирование по уровню доходов.
 77

4. Поведенческое сегментирование (по характеру поведения покупателей,

их осведомлённости о товаре).
5. Сегментирование на основе искомых выгод от покупки товара.
6. Сегментирование по признаку пола.
7. Сегментирование по демографическим признакам (по возрасту,
религиозной принадлежности, жизненному циклу).

9. There are five commonly accepted market segments.

Match the definitions of the segments to their names given below.
новаторы ранние последователи раннее большинство
позднее большинство отстающие

1) Innovators a) people following the trends set by

2) Early adopters
3) Early majority
4) Late majority
5) Laggards
the early adopters
b) people creating something new or starting
a new trend
c) the last group of people who buy a product or
brand
d) people identifying trends early and liking to
be associated with the start of a trend
e) people following the trends that have been
tested by the early majority

10. Complete the text describing market segmentation for children art
supplies. Use the following words:
appeal boomer targeted tweens power market

Kid’s arts and crafts is brighter than ever, say many retailers. “This (1)
….. segment is growing without question. We’re seeing a larger population
of young kids entering school than in previous years and creating a great
opportunity,” said Walgreens’ spokesperson Anne Venable.
An increasing number of products are (2) ….. at parents and grandparents
who want their kids to be smart and creative, not just television junkies.
Grandparents are a customer segment with strong economic (3) ….. . It is
relatively easy to (4) ….. to them using positive images of their
grandchildren.
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Steven Jacober, SHOPA’s president, agrees: “Art supplies and crafts

continue to grow. This ties into the baby (5) ….. generation, the way they
are raising their children and their tendency to make everything a learning
experience. There are a lot of different factors, and the demographics
support continuing growth of the marketplace,”
Arts and crafts are targeted at households with (6) ….. , kids aged 12 years
and under.
11. Think about yourself. Which market segment(s) are you in? Is it the
same for your friends and relatives? List some products or brands that
are targeted at you.

Unit 8
Products
Text 1 Read the text and answer the questions below.

Product developers need to think about their products on three levels. The most basic
level is the core product – what the buyer is really buying. Marketers must uncover the
needs hiding under every product and sell benefits not features. The core product has
to be turned into a tangible product. This may have five characteristics: features, a
brand name, styling, packaging and quality levels. Finally, the product may offer
additional services and benefits that make up an augmented product.
The average cost of developing and introducing a new product from scratch has
jumped to over $100 million. To make things worse, many of these costly new
products fail. So, companies are now pursuing new product strategies that are less
costly and risky than developing completely new brands, There are three product
strategies: acquiring new brands, developing ’me-too’ products, and reviving new
brands.
Acquiring new products
Instead of building its own new products from the ground, a company can buy
another company and its established brands. The mid-1980s saw a lot of company
mergers: Procter & Gamble acquired Richardson-Vicks, Nestle absorbed Rowntree
Mackintosh, Schweppes merged with Cadbury.
Such acquisitions can be risky – the company must be certain that the acquired
products blend with its current products and that the firm has the skills and resources
needed to continue to run the acquired brands profitably. On the other hand,
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acquisitions provide a quick and easy way to gain access to new markets or strengthen
positions in current markets.
Developing ‘me-too’ products
In recent years many companies have used ‘me-too’ product strategies – introducing
imitations of successful competing products. Thus, Tandy, Sanyo, Compaq and many
others produce IBM-compatible personal computers. These ‘clones’ sometimes sell for
less than half the price of the IBM models which they emulate. Imitation is now fair
play for products ranging from soft drinks to toiletries.
Me-too products are often quicker and less expensive to develop. They are less
costly and risky to introduce – they enter a proven market. On the other hand, a me-too
strategy has some drawbacks. The imitating company enters the market late and must
battle a successful competitor.
Reviving old products
Many companies have found ‘new gold in the old’ by reviving once-successful
brands that are now dead or dying. Many old and tarnished brand names still hold
magic for consumers. Sometimes a dead product rises again with a new name as
happened with one of Nestle’s cookery brands, Lean Cuisine for health-conscious
consumers. One of the dangers with reviving old brands is that it can encourage
marketers to look back rather than forwards.

Comprehension / Interpretation
1. What is the core product?
2. What is the tangible product?
3. What is the augmented product?
4. What are advantages and disadvantages of an acquiring new product strategy?
5. What are strengths and weaknesses of a ‘me-too’ product strategy?
6. What are pros and cons for using a reviving old product strategy?

Language focus

1. Look through the text and find words and word partnerships
corresponding to the words and word partnerships given below.

Товар по замыслу (сущность товара); осязаемый товар; реальный

(подлинный) товар; товар с подкреплением (с комплексом дополнительных
услуг и выгод); средняя стоимость товара; с самого начала; проводить
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политику; дорогостоящая политика; приобретать новые товары (компании);

товар-подражатель (товар-аналог); возрождать товар; укоренившийся на
рынке товар; слияние компаний; поглотить компанию; гармонировать
(сочетаться); получить доступ к новым рынкам; товар-конкурент; делать
что-то так же хорошо или лучше, чем кто-то другой; выйти на испытанный
рынок; недостаток; бороться (состязаться) с конкурентом; потускневший
(потерявший былую яркость); волшебство (магия).

2. Complete the definitions with the terms given below.

convenience goods / fast moving consumer goods (FMCG) white goods
perishable goods (perishables) durable / hard goods ( durables)
nondurable / soft goods brown goods

1. Goods that are used up or last for less than three years. _____
2. Goods that have a limited shelf life and must be consumed relatively quickly,
such as fresh fruit, fresh meat and eggs. _____
3. Products with a high turnover and relatively low price, such as shampoo, sugar
or salt. _____
4. Major household electrical goods which are usually white, such as freezers,
washing machines and dishwashers. _____
5. Goods that last for a long time, such as cars, furniture and white goods. _____
6. Major household electrical goods that are not usually white, such as televisions,
DVD players. _____

3. Match the terms with their definitions.

1. green products a) products that are beneficial for your health and
2. generic products well-being – for example, vitamins and plasters
3. healthcare products b) products that are not harmful for the environment
c)products sold without a brand name, usually in a
supermarket or in a pharmacy as alternatives to
brand name drugs

4. Translate the following sentences. Give their names:

augmented product clone consumer durable core product
fast moving consumer goods generic product perishables service
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primary manufacturing sell-by date commodity products

1. Organic products, usually food, that will go bad after a certain amount of time.
2. Products sold in very large quantities, such as groceries. They are bought often
and move through stores quickly.
3. A new product, especially in computer industry, which is almost the same as a
successful one made by a more famous manufacturer.
4. Long-lasting products produced and sold in large quantities.
5. A basic product with additional features and services added to the total package.
6. A basic product which is bought because of a particular need, e.g. a drink for
thirst.
7. Products which are not known by a brand name, e.g. pharmaceutical products
like paracetamol for headaches.
8. Special expertise or advice to help companies or individuals in, e.g. legal
matters, marketing.
9. A time suggested for reasons of safety by which perishable goods should be
used.
10. The actual making of products or components for products.
11. Products which are hard to differentiate from other products of the same type.
Consumers buy them just on price (for example, PCs)

5. Translate the following sentences into English.

1. Продукт – это товар, услуга или идея, состоящие из набора

осязаемых и неосязаемых свойств, удовлетворяющих потребителей,
и приобретаемые ими в обмен на деньги.
2. Товары можно классифицировать по степени их осязаемости и типа
пользователя.
3. Осязаемые или материальные продукты делятся на товары
кратковременного пользования, товары длительного пользования и
услуги.
4. С точки зрения пользователя, существуют две основные группы
товаров – потребительские товары и товары промышленного
назначения.
5. Потребительские товары включают в себя товары повседневного
спроса, товары предварительного выбора и товары особого спроса.
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6. Товар-новинка должен значительно отличаться от уже

существующих товаров.
7. Новые товары терпят неудачу по одной из семи причин:
- недостаточное отличительное преимущество;
- недостаточно чёткое определение целевого рынка;
- переоценка привлекательности рынка;
- неэффективная реализация комплекса маркетинга;
- низкий уровень качества товара по основным параметрам;
- неудачный выбор времени;
- недоступность для покупателя.
8. Многие товары почти не отличаются друг от друга по своим
качествам и по внешнему виду. Такие товары, например,
персональные компьютеры становятся товарами широкого
потребления.

Text 2 Product life cycles

Read the text about the product life cycles and decide whether the statements
given below are true or false. Say why.

The sales of most products change over time. The standard life cycle includes
introduction, growth, maturity and decline stages.
The introduction stage, following a product’s launch, generally involves slow
growth. Only a few innovative people will buy it. There are probably no profits at this
stage because of the heavy advertising, distribution and sales promotion expenses
involved in introducing a product into a market. Consumers must be made aware of
the product’s existence and persuaded to buy it. Some producers will apply a market-
skimming strategy, setting a high price in order to recover development costs. Others
will employ a market-penetration strategy, selling a product at as low a price as
possible, in order to attain a large market share.
During the growth period, ‘early adopters’ join the ‘innovators’ who were
responsible for the first sales, so that sales rise quickly, producing profits. This
generally enables the producer to benefit from economies of scale. Competitors will
probably enter the market, usually making it necessary to reduce prices, but the
competition will increase the market’s awareness and speed up the adoption process.
 83

When the majority of potential buyers have tried or accepted a product, the market is
saturated, and the product reaches its maturity stage. Sales will stabilize or will only
increase if the population increases. The marketing manager has to turn consumers’
brand preference into brand loyalty.
Most products available at any given time are in the maturity stage of the life cycle.
This stage may last many years, and contain many ups and downs due to the use of a
succession of marketing strategies and tactics. Product managers can attempt to
convert non-users into users, search for new markets and market segments to enter, or
stimulate existing consumers to buy more. Alternatively, they can attempt to improve
product quality and to add new features, sizes or models, or simply to introduce
periodic stylistic modifications. They can also modify other elements of the marketing
mix: cut prices, increase advertising, undertake aggressive sales promotions, seek new
distribution channels, etc.
A product enters the decline period when it begins to be replaced by new products
due to advances in technology, or to changes in fashions and tastes. When a product
has clearly entered its decline stage, some manufacturers will abandon it in order to
invest their resources in more profitable or innovative products. When some
competitors withdraw from the market, those who remain gain a temporary increase in
sales as customers switch to their product.
Not all products have this typical life cycle. Some have an immediate rapid growth
rather than a slow introductory stage. Others never achieve the desired sales, and go
straight from introduction to maturity. Fads and gimmicks – toys people buy once and
once only to stick on car windows – have distinct life cycles, both rising and declining
very quickly.

Comprehension / interpretation
Agree or disagree with the statements, prove your point with arguments from the
text.
1. The introduction stage of a new product is not usually profitable.
2. During the introduction stage, marketers are trying to create brand preference.
3. A producer, seeking maximum profits will apply a market-penetration strategy.
4. The entry of competitors onto the market will make more consumers aware of
the product and stimulate them to try it.
5. At the maturity stage, producers begin to benefit from economies of scale.
6. The maturity stage is generally the longest.
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7. Once the maturity stage is reached, marketers concentrate on finding new

customers.
8. A product enters the decline stage when it begins to become obsolete or old
fashioned.
9. A product can experience temporary sales increases during the decline stage.
10. Gimmicks and fads have a particularly long life cycle.

Language focus

1. Look through the text and find words and word partnerships
corresponding to the words and word partnerships given below.

Жизненный цикл товара; выведение товара на рынок; стадия роста

товара; зрелость товара; стадия жизненного спада; следовать за;
интенсивная реклама; стимулирование сбыта; распространение товара;
затраты на рекламу; затраты на стимулирование сбыта; убеждать
покупателей покупать товар; использовать стратегию «снятия сливок»;
устанавливать высокие цены; покрывать издержки на разработку товара;
использовать стратегию проникновения на рынок; получить большую долю
на рынке; ранние последователи; присоединиться к; извлекать выгоду
из; стратегия эффекта масштаба; ускорить процесс восприятия;
испытать (попробовать) товар; насытить рынок товаром; предпочтение
бренду; приверженность бренду; длиться (продолжаться) много лет;
взлёты и падения; чередование маркетинговых стратегий; или же (в
качестве альтернативы); попытаться улучшить качество товара;
периодически видоизменять товар; проводить активные акции по
стимулированию сбыта; искать новые каналы сбыта; передовые шаги в
технологии; покинуть рынок; добиться временного роста продаж;
переключиться на; фетиш (увлечение); уловка (трюк).

2. Time sequences.
The expressions below can be used to describe sequences of actions taking
place over extended periods of time. Read and translate them.

Initially ….. Afterwards …..

At first …. Eventually …..
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To start with ….. In time …..

Secondly, thirdly, etc ….. Ultimately …..
Then ….. In the end …..
Later (later on)….. At this point of stage
During this time ….
3. Read the text again and complete the sentences choosing expressions from
the list above to begin the following sentences.
1. ….. companies have to advertise and promote heavily.
2. ….. companies have to choose between high profit and high market share
strategies.
3. ….. competitors will probably enter the market.
4. ….. economies of scale begin to lower costs.
5. ….. growth is slow and expenses are high.
6. ….. marketers have to build up brand loyalty.
7. ….. marketers have to turn the awareness of the product into a desire to
purchase the product.
8. ..... new products will appear and begin to replace the existing ones.
9. ….. sales begin to rise quickly.
10. ….. sales will only increase if marketers can expand the whole market, or find
new uses or users for the product.
11. ….. the company will choose to abandon the product.
12. ….. the market will become saturated.

4. Fill in the missing prepositions in the sentences. Choose from the following:
away by back into off on onto to

1. Perishable goods go ….. in a short time.

2. If dairy products are not sold ….. the sell-by-date, they cannot be offered for
sale.
3. Unsold perishable goods usually have to be thrown …… .
4. If a safety fault is discovered in an electrical product, the manufacturer has
to take ….. all faulty examples of the product.
5. Thousands of new products are put ….. the market every day, but only a few
are successful.
6. Success or failure depends ….. many factors, but the most important id the
quality of the marketing.
 86

7. Customers with a strong sense of brand loyalty are rarely prepared to switch
….. a new competitor.
8. Powerful advertising may help a new product to eat ….. the market share of
rival brands.

5. Complete the sentences with the words given below. Translate them into
Russian. Change the form of the verbs if necessary.

cannibalization lengthen life cycle product mix

drop (refuse from) dilute (weaken) prune (shorten) inventories
stretch savings aim at

1. Many companies have a ……. consisting of a number of products.

2. These products can have growing, stable, or declining sales, depending on
where they are in their ……. .
3. Companies ……. high market share generally have long product lines, while
companies seeking high profitability will have shorter lines.
4. Yet most product lines tend to ……. over time, as companies add extra items to
cover more market segments.
5. Line-filling can lead to ……., if the items are too similar.
6. A product line can be ……. in two directions, both up-market and down-
market, although going down-market can ……. a company’s image.
7. Companies also occasionally shorten or ……. their product lines.
8. Sometimes you can increase profits by refusing from or ……. certain items.
9. Adding items to a product line results in a variety of costs; e.g. you will need to
carry more ……. .
10. On the contrary, producing fewer items generates ……. .

6. Translate the following text into English using words and word
partnerships given above.
1. Большинство компаний регулярно выпускают на рынок новые товары,
расширяя и насыщая свои товарные линии. Таким образом, они пытаются
найти возможности увеличить продажи и получить большую прибыль.
2. Но новые товары не всегда оказываются успешными и прибыльными.
Поэтому компании приходится регулярно проводить анализ издержек и
 87

продаж всей торговой линии, избавляясь при этом от убыточных товаров

(unsalable products).
3. Безусловно, управляющим по торговой марке не очень приятно видеть,
что их товары уничтожаются, но компания не может существовать без
прибыли.
4. Если продажи товаров, которые были успешными, сократились, компании
необходимо думать о будущем. Она вынуждена отказываться от старых
товаров с тем, чтобы освободить место новым (make room for).
5. Иногда только 20% от всех товаров фирмы составляют большую часть
всех продаж. Таким образом, большинство товаров оказываются
убыточными и от них могут отказаться.
6. Менеджеры компании, возможно, не будут сдаваться без боя (give up
without a fight), но у них часто нет другого выхода, кроме как подчиниться
(obey).
7. С другой стороны, выходить на рынок с новым товаром иногда гораздо
сложнее, чем продолжать продавать товары, не приносящие дохода.

Text 3 Brands
Read the text and speak on the statements given below.

Most companies decide to brand their products or services by using a name, a

symbol or a design to identify it and differentiate it from rival brands. Consumers can
easily recognize the brand and the brand values, i.e. what stands behind the brand.
A brand name is the name given to a product or a range of products – goods of a
similar type that are marketed together. This may be the same name as the company
(for example, Coca-Cola) or it may be a different name (for example, Apple’s iPod).
The trade mark is the legal protection for the brand, its logo and its brand name.
People often wonder what makes a brand different from a product. In marketing
terms, products are not brands. Products are general, while brands are something quite
unique. Brand identity consists of far more than the physical product itself. A brand
includes some psychological features that we associate with it. Top brands form a
personal relationship with consumers; they are able to make us feel more confident,
more powerful, healthier and happier. Brands are promises and people buy what they
believe in.
 88

A brand has USPs, specific features which set it apart from its competitors. For
example, Barbie was the first doll to look like a young woman, and a metal rivet was
the unique feature of Levi jeans. Both brands have numerous imitators, but generally
speaking, a ‘me-too’ product won’t achieve the success of the one it follows.
People who say you don’t need to worry about your competitors couldn’t be more
wrong. Competent managers have to know how to position their brand in relation to
the competition, in terms of factors like price and quality of the product. Managers
should relate the brand’s values to the consumers they have targeted. With worldwide
brands this may mean changing your message from country to country, or even within
one market. Coca-Cola produces a version for Japan which is sweeter than the one
sold in the US. The Japanese prefer beef with a higher fat content, so McDonald’s
naturally obliges. Ronald McDonald’s name was even changed to Donald because the
Japanese have trouble saying ‘r’.
The product life cycle is a familiar one in marketing. A product is launched,
developed, goes through a period of growth, enters maturity, declines, and eventually
dies. A top brand should go on and on if it is well managed. A brand manager is like a
doctor or plastic surgeon, who can keep the brand healthy and looking fresh down the
years. Brand managers must be able to identify new segments of the market,
particularly when products have become mature. Coca-Cola has introduced a large
number of variants to appeal to different consumers. So knowing what stage your
branded product is at in this cycle may help you decide when to extend a product line
or improve the product, i.e. add some new values. Newer versions of cars, for instance,
will come with air-conditioning as a standard feature, or they have a facelift to
modernize the look even though what is under the bonnet may stay the same.

Comprehension / interpretation

Read the text again and decide if these statements are true or false.
1. Brand is just another word for product.
2. Brands promise us happiness, health, good reputation and status.
3. USPs are not so important as people believe.
4. It’s better to be first in the market with a new idea.
5. People worry too much about competition.
6. Global brands may need to ‘think local’.
7. There is little you can do to keep a brand alive.
8. Some changes to products are simply cosmetic.
 89

Language focus

1. Look through the text and find words and word partnerships
corresponding to the words and word partnerships given below.

Распознать (идентифицировать) марочный товар; делать марку

отличной от товара конкурента; ценностная значимость марки;
подобные (схожие) товары; торговая марка; логотип; наименование
марки; образ марки; ведущие марки; отличать от; товар-
подражатель; позиционировать марку; (рекламное) обращение;
пластический хирург; управляющий по товарной марке; найти новые
рыночные сегменты; привлекать потребителей; удлинить торговую
линейку; новые варианты автомобилей.

2. Word combinations with ‘brand’. Match the terms with their definitions.
Translate into Russian.

brand loyalty a premium brand the flagship brand

an own brand brand awareness brand preference
an economy brand brand image co-branding a no brand
brand equity

1. Two brands working together to create a new product – for example, Intel
Corporation and Apple Computers Inc. _____
2. A high quality brand, more expensive than its competitors. _____
3. How the consumers see the brand, the values they associate with it. _____
4. A product that doesn’t have a brand associated with it; also known as a
generic brand. _____
5. Increasing the number of consumers who know about your brand. _____
6. Increasing the number of consumers who prefer the brand over another. ___
 90

7. The brand for which a business is well-known, and which represents its
image most appropriately. _____
8. A brand that is cheaper than its competitors. _____
9. Making sure your consumers want to buy the brand again and again (also
known as brand retention). _____
10. A brand that is made exclusively for a retailer that sells it; it also known as
an own-label brand. _____
11. The value of the brand perceived by consumers. _____

3. Translate the following sentences into English.

1. Чтобы создать сильную торговую марку, маркетологам приходится

тратить огромные суммы денег на разработку нового товара, его рекламу
и продвижение.
2. В случае успеха, эти капиталовложения создают достоинство марки, т.е.
осознание предпочтения данной марки покупателями.
3. Достоинство марки означает, что марка имеет высокую покупательскую
приверженность, воспринятое потребителями качество и осведомлённость
о марке.
4. Достоинство марки создаёт для фирмы конкурентное преимущество, так
как оно позволяет фирме удерживать большую долю рынка, продавать
товар по более высоким ценам и вводить на рынок новые товары под
знаком всё той же сильной торговой марки.
5. Благодаря достоинству уже известной торговой марки, преемственное
новшество (brand extension), т.е. новый товар, быстро завоёвывает
признание покупателей. Преемственное новшество не требует от
потребителей новых поведенческих привычек.

Marketing Practice:
Case study Caferoma

Read the case, discuss the top management problems and decide on the actions to
increase their profit.

Background
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Caferoma, is a well-known brand of coffee, is owned by the Pan European Food and
Drink Company (PEFD), based in Turin, Italy. It is promoted as an exclusive ground
coffee for gourmets. Its image is that of an Italian-style coffee. It has a strong full-
bodied flavor and a slightly bitter taste. It costs more per 100 grams than almost every
other ground coffee product on the supermarket shelves.
Problems
In the last two years, Caferoma’s share of the European quality ground coffee market
has declined by almost 25%. There are several reasons for this:
Brand loyalty: Consumers have become less loyal to brands and are more willing to
trade down to lower-priced coffee products.
‘Copycat’ products: Competing brands of Italian-style ground coffee at prices 30% to
40% lower than Caferoma’s price have cut into Caferoma’s market share.
Brand image: Consumer surveys show that the Caferoma brand no longer has a
feeling of excitement and enthusiasm, and that it does not give the impression of being
up-to-date and contemporary.

Task
You are members of PEFD’s European marketing team. Hold an informal meeting to
discuss Caferoma’s problems. Decide what actions are necessary to take to stop the
decline of the product’s market share and to increase profit.

Possible solutions
Repositioning the product: Change Caferoma’s image to appeal to a different
market segment. What segment, and what changes should be made to taste, quality,
packaging, logo, labeling, etc?

Pricing: Reduce the price by 20% or 30% to make it more competitive.

Advertising: Develop a new advertising campaign. (a new message, special

promotion events).

Multiple brands: Sell Caferoma, with minor product changes, under different brand
names at lower prices.

Own label products: Sell Caferoma coffee for supermarkets to package and sell under
their own labels (but continue to market the Caferoma brand at the same time).
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A new product: Bring out an instant coffee or decaffeinated product under the
Caferoma brand.

Stretching the brand: Allow selected manufacturers of coffee equipment (cafeterias,

percolators, coffee machines, etc.) to use the brand on their goods but for a licensing
fee.

Unit 9
Pricing
Read the text about pricing strategies and answer the questions.

The price of a product should logically cover its production and distribution costs,
including a proportion of the company’s fixed costs or overheads, such as rent and
interest payments, and leave a small profit. But prices are also influenced by the level
of demand, the prices of substitute products, and the prices charged by competitors.
High quality products made with expensive components and requiring a lot of
craftsmanship are obviously expensive. They also generally require ‘prestige pricing’
as the consumers in their target market would not buy them if they thought the price
was too low. The market for most other goods is generally price sensitive, i.e. the
lower the price, the greater the sales.
But for new products for which there is a sufficiently high demand, companies may
choose to set the highest possible price so as to maximize profits. This is known as
market-skimming. The price can later be reduced in order to reach further market
segments.
The opposite strategy is market-penetration, which means setting as low a price as
possible so as to increase sales volume and market share. In its turn it causes lowering
unit production and distribution costs and increasing long-run profit. The low price
will also discourage competition.
Companies with overcapacity, intensive competition, a large inventory, or a
declining market are likely to cut the prices of established products. They are more
concerned with keeping the plant going and staying in business than making a current
profit. On the contrary, firms facing rising costs, or in need of cash, in the short term,
tend to raise prices. A company faced with demand that exceeds supply is also likely
to raise its prices, like a monopolist.
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Firms in perfectly competitive markets, or homogeneous-product markets, or small

firms in an industry with a strong market leader, are likely to use going-rate prices, i.e.
they will charge more or less the same price as everyone else, rather than set a price
based on estimates of costs or projected demand.
All prices can be adapted. Most companies offer cash discounts to customers who
pay immediately, and quantity discounts to buyers of large volumes. Many products
and services are sold at a lower price during an off-season. Retailers often offer some
loss-leader prices: they cut the prices of selected products to cost price or even below
in order to attract customers who buy other goods. Companies also have to react to
price changes by competitors. They might try to avoid a price war by modifying other
elements of the marketing mix. Similarly, they have to anticipate competitors’ reaction
if they change their own price.

Comprehension / Interpretation
1. What does the price of a product include?
2. What can influence the price?
3. Under what circumstances may companies choose a market-skimming strategy?
4. Under what circumstances may companies choose a market-penetration
strategy?
5. What is the main reason for cutting prices?
6. What is the main reason for raising prices?
7. When do companies use going-rate pricing?
8. How can companies adapt their prices to the market?

Language focus

1. Look through the text and find words and word partnerships
corresponding to the words and word partnerships given below.

Покрывать производственные затраты; покрывать издержки сбыта

продукции; постоянные издержки; аренда; выплата процентов;
субпродукт (товар заменитель); назначать цену на товар; мастерство;
ценообразование с учётом престижности товара; рынок чувствительный к
цене (реагирующий на изменения в цене); высокий спрос на; стратегия
«снятия сливок»; стратегия проникновения (внедрения) на рынок; объём
продаж; в свою очередь; приводить к снижению издержек на производство
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одного товара и его распределение; сдерживать конкуренцию; сверх

мощности; рынок с однородным товаром; укоренившийся на рынке товар;
в ближайшей перспективе; спрос превышает предложение;
ценообразование на основе текущего уровня цен; расчёты затрат;
регулировать цены (приводить цены в соответствие); скидка за оплату
наличными; скидка с количества; распродажа; себестоимость (цена
производства); цена убыточного лидера; предугадать реакцию
конкурентов.

2. A company decides to launch a new range of tea in a stick instead of in a

bag. Read the notes on pricing considerations the company marketers
made. Translate them.
1. Alternative solutions: our stick packaging is unique.
2. Ease of comparison: easy to compare price but difficult to compare taste.
3. Unique benefits / Unique Selling Points: quality of tea; stick format
4. Monetary significance: tea is cheap, but the innovative packaging has a high
value.
5. Demand: tea consumption is stable, but sales in specialty shops are on the rise.
6. Price sensitivity: consumers are very price sensitive – sales increase when
prices decrease.
7. Complementary costs: none – the customer doesn’t even need a spoon!!

3. Match the questions about pricing strategy (1-7) to the pricing

considerations (a – g). Look at the exercise above to help you.

1. What is the value of the product or service for the consumer?

2. What is special or different about the product or service?
3. Is it difficult to compare the price and quality of similar products or
services?
4. How many people want to buy the product or service?
5. How many similar products or services are there on the market?
6. What else does the consumer need to pay for in order to use the product or
service?
7. How much does a change in price affect consumer demand for the product
or service?
a) alternative solution
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b) ease of comparison
c) unique benefits
d) monetary significance
e) demand
f) price sensitivity
g) complementary costs

4. Complete the text using words given below. Translate the text into Russian.
bargain costs fair points premium
sensitive significance solutions unique

When deciding on the price of a product or service you have to consider the product
or service itself. For example, does it have (1) ….. benefits? Does the consumer have
any alternative (2) ….. ? What is the monetary (3) ….. of the product or service? You
also have to think about the possibility of complementary (4) ….., and how price (5)
….. the consumers are to these and the product or the service cost.
Then you need to think about the pricing strategy and how this relates to the brand.
For a luxury brand it is essential to follow a (6) ….. pricing strategy in order to
maintain the brand image. A low price would not be suitable for a brand.
Finally, you need to carry a price test to check the price (7) ….. you have to
consider. The (8) ….. price is the amount that the consumer is prepared to pay for the
product or service. A (9) ….. price is a low price that may be used during special
offers or for promotional pricing.

5. Translate the following text into English.

Основой установления цены на товар служит уровень потребительского спроса
на данный продукт. Поэтому маркетологу необходимо трансформировать
оценку (estimate) величины (dimension) спроса в оценку уровня доходов, которые
фирма надеется получить, продавая товары для удовлетворения этого спроса.
Кривая спроса (demand curve) показывает, какое максимальное количество
товаров купят потребители по данной цене. По мере снижения цены люди
покупают больше товаров. Однако не только цена влияет на спрос. Экономисты
выделяют три других ключевых фактора:
1. Вкусы потребителей. Вкусы потребителей зависят от многих факторов,
таких как демографические характеристики, культурное окружение,
уровень технологий. Поскольку вкусы потребителей меняются достаточно
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быстро, очень важно своевременно проводить маркетинговые

исследования.
2. Цена и доступность других товаров. По мере (as) снижения цены на
товары-заменители спрос на данный товар падает.
3. Доходы потребителей. Как правило, по мере роста реального
потребительского дохода растёт и спрос на товар.
Первые два фактора влияют на готовность потребителя купить товар, а
третий – на его способность купить товар. Наряду с (along with) ценой эти
факторы называют факторами спроса или факторами, которые определяют
готовность и способность потребителя платить за товары и услуги.

Marketing practice:
Read the information about upmarket and downmarket, mass markets and
niches and translate it, paying special attention to the words in bold.

Products exist in different models. Take skis for example. Some skis are basic and
others are more sophisticated and exclusive. The cheapest skis are low-end or
bottom-end. The most expensive ones are high-end, top-end or premium products –
designed for very experienced users (or people with a lot of money). The cheapest
entry level skis are intended for beginners who have never bought skis before. Those
in-between are mid-range. When you buy more sophisticated skis to replace basic
ones, you trade up and move upmarket. If you buy cheaper skis after buying more
expensive ones, you trade down and move downmarket.
To say that something is downmarket often shows disapproval. For example, if a
publisher takes a newspaper downmarket, they make it more popular, less cultural,
etc. in an attempt to increase the number of readers.

Mass markets and niches

Mass market is used to talk about goods that are sold in large quantities and the
people who buy them, for example family cars. A niche is a group of buyers with
specific requirements that is relatively small but that may be profitable for companies
that sell to it, for example sports cars.

Read the article and answer the questions. Look at the information about
markets given above to help you. Analyze the situation with Starbucks.
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Starbucks in trouble
From the beginning, the key to Starbucks’ success was its upmarket image. That the
coffee itself was rather expensive only added to its appeal. If you wanted cheap coffee,
then go to a diner. For a long while Starbucks managed to keep ahead of the
competition, expanding very fast, buying competitors and launching new products.
Premium coffee remained the basic product – and the product other companies could
easily copy. Now McDonald’s offers premium coffee, not only cheaper than
Starbucks’ but of a quality that won first place in a survey conducted by Consumer
Report.
As a result, Starbucks finds itself caught in a new, unwelcome ‘third place’, pressed
from below by the fast-food chains that until recently had been considered more
downmarket, and from above by a new generation of more upmarket, exclusive and
sophisticated coffee houses.

1. What sort of image did Starbucks have when it was launched?

2. Was the fact that it was expensive a problem?
3. Did Starbucks grow just by opening new coffee shops?
4. How has McDonald’s coffee changed in the last few years?
5. Is Starbucks in a good competitive position? Why? Why not?
6. How should Starbucks act to increase its coffee sales and retain its leading
position on the market?

Case study: Dilemma and decision

Many producers of the branded goods refuse to distribute through supermarket

chains, fearing that price-cutting could damage their brand image. They distribute
exclusively through selected retailers. Grey marketers challenge this by obtaining
branded goods through alternative supply routes and selling them at much cheaper
prices.
Best Value is a leading UK supermarket chain that has been offered a ‘grey
consignment’ of genuine branded jeans at a very heavily discounted price. The brand
owner, GenX, is aware of the situation and has threatened legal action if Best Value
sells the jeans. Best Value could sell a lot of jeans and even the legal threats from
GenX could generate positive publicity. However, losing a major legal battle could be
costly and sales of Best Value’s own brand of jeans could suffer.
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Task
Look at the situation and list the advantages and disadvantages of accepting the
consignment of GenX 250 jeans.
Discuss the best course of action to take. Possible options include:
1. Refuse the GenX 250 jeans.
2. Sell the jeans but hope to get GenX’s permission by negotiating an acceptably
high retail selling price.
3. Accept the shipment and sell the jeans at the heavily discounted price risking
legal action from the brand owner.

Unit 10
Placing

Read the text about placing goods and services and answer the questions.

Placing, an important element of marketing mix, involves getting the product from
its original source to the end user. The supply chain describes the suppliers, storage
facilities, retailers and models of transport which are involved in distributing the
product or service to the consumer.
There are three distribution systems: conventional marketing system (CMS), vertical
marketing system (VMS) and total system approach (TSA).
Conventional marketing system – traditionally there used to be a line consisting of
independent producers, wholesalers and retailers. Each was a separate business.
Vertical marketing system – many businesses work together in a unified system
where producers, wholesalers and retailers act together. They may be under common
ownership, or they have contracted to work together as a single system.
Total system approach – a new trend, a distribution system which is designed to
accommodate consumer needs at minimum cost, and places every step of the
distribution channel under a single control.
There can be two types of distribution: direct distribution and indirect distribution.
Direct distribution allows the company to eliminate wholesalers and sell directly to
the consumer. Direct distribution helps the company to keep track of inventory as well
as distribution costs. Besides, the company can eliminate retailers, people, shops or
businesses that sell to the public, and receive orders from customers directly.
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Indirect distribution channel is a system where a person or organization helps a

company to arrange agreements or business deals between other people or
organizations. Such people or organizations are called intermediaries or middlemen.
One of the criteria for a successful supply chain is time management. All the
participants of a supply chain agree when a particular process should be completed. It
is important to keep to this deadline or there will be delays in other parts of the supply
chain. In some cultures, people see time / appointments / deadlines as flexible; in other
cultures, it is important to always be punctual. This can be an intercultural problem.

Comprehension / interpretation
1. What does placing involve?
2. What does supply chain involve?
3. What does conventional marketing system consist of?
4. How does vertical marketing system work?
5. What differentiates total system approach from conventional marketing system?
6. What is the difference between direct distribution and indirect distribution?
7. What people are called intermediaries?
8. What are the main criteria for a successful supply chain?

Language focus

1. Look through the text and find words and word partnerships
corresponding to the words and word partnerships given below.
Поставщики; складские сооружения (складское хозяйство);
розничные торговцы; доставка товара потребителю; традиционная
маркетинговая система; тотальный системный подход; вертикальная
маркетинговая система; единая система; принадлежать одному
владельцу; заключать контракт; обеспечивать потребности
потребителей по минимальной стоимости; прямое распределение;
исключать оптовиков; продавать непосредственно потребителю;
следить за товарно-материальным запасов; издержки; распределение
товара (товародвижение); канал распределения через посредников;
готовить соглашения; сделка; посредник; цепь поставок;
завершить процесс; придерживаться сроков; задержка.
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2. Replace the words in bold in the fax below with a word with the same
meaning given below. Translate the fax.
consumers dispatch middlemen multiples producer retailers
sales forces sales representatives wholesalers
To: Sara Alessi
From: Alain Booster
Subject: Distribution system

As the (1) manufacturer, we obviously must ensure that products reach (2)
customers with maximum efficiency. Now, we use independent (3) distributors, but
we should consider better alternatives. The following changes need urgent
consideration:
Cutting out (4) intermediaries – this would bring cost savings.
Larger (5) sales teams.
Many more (6) reps.
Improved (7) shipment system.
Closer relationships with (8) dealers.
More links with (9) chains.
Call to discuss.
Regards,
Alain

3. Fill in the missing words in sentences below. Choose from the following:
commission agent container port distribution agreement
electronic trading franchise agreement independent distributor
sales force shelf space shipping line vending machine

1. An agent who receives a percentage of the sales is ____ .

2. An agreement to sell only one manufacturer’s goods is called a sole ____ .
3. All the people involved in selling a company’s goods or services are the ___ .
4. A place where ships are loaded with special metal boxes full of goods is
called a ___ .
5. ____ s buy from companies and sell to retailers.
6. Trading through computers, with orders and payment transmitted along
telephone network, is called ____ .
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7. The amount of space given over in a shop for displaying a particular product
is called ____ .
8. An agreement to pay a license fee to use a well-known name is called a ___ .

9. A machine in which you put coins to buy confectionery or other small items
is called ____ .
10. A company that owns a lot of ships is called ____ .

4. Read the terms and their definitions. The general term of a market of
goods is a shop (BrE) or store (AmE) or a retail outlet or sales outlet.
Here are some types of shops:

1. Chain store – a shop that is part of a group of shops, all with the same name.
2. Convenience store – a shop in a town that is open long hours.
3. Discounter – a wholesaler or retailer with very low prices.
4. Department store – a very large shop, usually in a town centre.
5. Hypermarket – a very large shop with a wide variety of goods, usually
outside a town; its assortment involves food products (40%) and goods of
scrambled assortment (60%) (товары смешанного ассортимента)
6. Supermarket – a very large shop, selling mainly food.
7. Specialty store – a shop that sells unusual products or food that are special
in some way.

5. Look at the previous exercise and say where you go if you want to:

1) park easily and make purchases of different goods including grocery

products and industrial goods all in one shop without having to go to the
town centre.
2) visit different shops grouped together in a town centre.
3) buy a packet of sugar if all the supermarkets are closed.
4) buy a particular product with unique characteristics.
5) buy food and some other products extremely cheaply.
6) buy clothes in a town centre without going to a specialized clothes shop.
7) buy different kinds of food and some other goods used especially in the
home.
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6. Put the steps in the distribution chain in the correct order. Translate
them.
1. The goods arrive and can be sold to the consumer.
2. The franchise sends the order to the warehouse in South America.
3. Road transportation is used to ship the goods from Southampton to Brighton.
4. The goods land in Southampton.
5. The container ship is loaded with the parts.
6. A franchisee in Brighton places an order for car accessories.

7. Read the text about franchising and translate it into Russian.

Franchises are owned by franchisees – the people that run them – but they only
sell the goods of a particular company. The franchisor – the company – provides
the goods and organizes advertising centrally and in return takes a percentage of
the profits of each franchisee. Other types of business, such as restaurants, can also
be run in this way.

8. Translate the following text into English.

Франчайзинговые организации – это один из наиболее
распространённых типов контрактной вертикальной маркетинговой
структуры.
В системе франчайзинга, отдельное лицо или фирма (получатель или
держатель франшизы) заключает соглашение с материнской компанией
(владельцем франшизы) о создании коммерческого предприятия или
розничной торговой точки.
Владелец франшизы обычно помогает её получателю в выборе места
для магазина и в его оборудовании, в проведении рекламы и обучении
персонала. Держатель франшизы платит единовременный
франчайзинговый взнос (one-time initial fee) и ежегодные отчисления
(monthly fees) , размер которых обычно определяется объёмом продаж
магазина.
Для новых предпринимателей франчайзинг привлекателен тем, что он
даёт возможность присоединиться к известному устойчивому бизнесу и
получить консультации по вопросам управления. К тому же,
франчайзинговый взнос может оказаться меньше суммы, необходимой для
создания собственного независимого предприятия.
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Продавая франшизы, материнская компания (holding company) снижает издержки на

расширение деятельности, но при этом теряет часть контроля над предприятием.
Однако опытный владелец франшизы всё же способен осуществлять эффективный
контроль над работой франшизодержателей.
Unit 11
Promotion

Read the text about four promotional tools and answer the questions.

Marketing is often defined as a matter of identifying consumer needs and developing

the goods and services that satisfy them. This involves developing the right product,
pricing it attractively, and making it available to the target consumer, by persuading
distributors and retailers to stock it. But it is also necessary to inform potential
consumers of the product existence, its features, its advantages, and to persuade them
to try it.
Marketers conventionally distinguish four basic promotional tools: advertising, sales
promotion, public relations, and personal selling, which together make up the
marketing communications mix.
Advertising is an important marketing tool which works in a number of different
ways. Advertising can inform or persuade or remind or motivate.
If a company wants to make a customer aware of a product or service, or build the
image of a brand, it usually contacts an advertising agency. It is the role of an ad
agency to develop an advertising strategy. The advertising strategy defines the
advertising message – what is to be communicated – and the choice of media. Media
planners determine the media strategy and identify appropriate channels to reach the
target audience and media vehicles (for example, types of press magazines, TV
channels, poster networks).
Companies can choose from different advertising formats. An advertisement that is
broadcast on TV or radio is called a commercial. Interactive ads are becoming more
popular on digital television. In addition to using the remote control to change
channels, viewers can press a button and respond to an ad.
Outdoor advertising or out-of-home advertising can grab our attention. Traditional
billboards and digital video billboards, giant banners which are hung on the front of
buildings, bus shelters, floor graphics in supermarkets and shopping centres have
become common things in our life.
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Marketing has relied on word of mouth (WOM) for a long time – happy consumers
have always told their friends and relatives about the products they like. Favorable
word of mouth publicity is highly beneficial for companies and brands.
Advertisements where famous people recommend the product are product
endorsements. However, the product or service must not disappoint the target
audience, it must meet their expectations.
Different activities designed to support the sale of goods and services, including
advertising are called sales promotion. Sales promotion includes special offers such
as discounts or special price; free samples – a small amount of the product to try or
taste; a free gift which is given with the product; a competition with prizes – a winner
is given a prize. Supermarkets, chain stores and airlines also offer loyalty cards – the
more you spend, the more points you get, and you can exchange these points for free
goods or flights.
A cross promotion is where you buy one product, and you are recommended to buy
another product, for example a washing machine with a recommendation for a
particular brand of washing powder.
Public relations involve establishing and maintaining goodwill (a good reputation)
and understanding between an organization and its public. Companies can use public
relations firms and their experts to promote their goods and services through
organizing different public events, trade fairs and exhibitions.
Personal selling, or selling to a customer face-to-face, is different from impersonal
selling such as advertising and sales promotion. Salespeople can inform customers and
demonstrate technical products, at the same time customizing the sales messages to
what that specific customer needs to hear.
Salespeople prospect or look for new clients, calling potential customers from a cold
list. A cold list is a list of people who have had no prior contact with the company.
Calling the people on the list for the first time is known as cold calling. Common
reasons for cold calling include:
contacting cold prospects (people who don’t yet have a relationship with the
company) to create hot contacts (people who are ready to buy)
selling services over the telephone
making an appointment for a sales rep to meet the prospect
closing deals – customers are ready to buy and salespeople try to close the
deal by asking the customer to place an order. They may offer trade
concessions or negotiate.
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following-up – follow up calls are part of the after-sales service which

enables salespeople to check customer satisfaction with the service or
product – how happy they are with it. Satisfied customers will purchase
again, generating repeat business.

Comprehension / interpretation

1. What are four basic promotional tools?

2. What is the main role of advertising?
3. What does the advertising strategy define?
4. What media channels can be used to reach a target audience?
5. What is a commercial? Is it a reliable advertising tool?
6. What type of advertising is considered to be the most reliable?
7. What specific offers does the sales promotion include?
8. What do we mean under public relations? Why is it important for a company to
be involved in establishing good relationships with the public?
9. What steps should salespeople take to persuade potential customers to buy their
product?
10. What is cold calling? What are the reasons for cold calling?

Language focus

1. Look through the text and find words and word partnerships
corresponding to the words and word partnerships given below.

Разработать товар; целевой потребитель; сделать товар доступным;

снабжать товаром (держать товар); различать четыре основных
средства стимулирования сбыта; осведомлённый (знающий);
связаться с (установить контакт); рекламное обращение; передать
рекламное обращение; средства рекламы; стратегия выбора средств
рекламы; охватить средствами рекламы целевую аудиторию;
носители рекламы; транслировать (передавать) по телевидению;
коммерческая реклама; цифровое телевидение; дистанционное
управление; телезрители; откликаться (реагировать) на рекламу;
уличная реклама; захватить внимание; рекламный щит;
транспарант; крытая автобусная остановка; напольная графика;
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устная реклама; гласность; поддержка товара; оправдать

ожидания; скидки; бесплатные образцы; приз; карточки для
постоянных клиентов; предложение клиенту ряда разных товаров или
услуг; создать хорошую репутацию; поддерживать репутацию;
общественные мероприятия; торговая ярмарка; торговая выставка;
личные продажи; продавцы; приспосабливать торговое обращение
к специфическим требованиям клиента; искать новых клиентов;
список потенциальных клиентов; предварительный контакт; звонок
(визит) наугад; торговый представитель; встретиться с
потенциальным клиентом; назначить встречу; завершить сделку;
разместить заказ; предложить торговую льготу; торговаться;
последующая деятельность (проверка результатов); последующие
звонки (визиты); послепродажное обслуживание; покупать товар
снова и снова; формировать (создавать) повторные сделки.

2. Read the extract of an internal report to senior marketers in the company.

Fill in the missing words and phrases in the report given below.

advertisements commercials hard sell advertising mix

competition impulse buying campaign consumer awareness
mail shot catalogue direct mail

Advertising plan
Our plan is to sell products through a (1) ____ and mail order service. We
will use a high pressure, (2) ____ approach. We can attract customers to order
the goods by offering special (3) ____ prizes. Once the catalogue arrives,
consumers will order goods which have an instant appeal: we will depend on
(4) ____.
Another approach is to run a long advertising (5) ____ to increase (6) ____ of
our products. We plan a variety of advertising techniques: this (7) ____will
consist of television (8) ____, newspaper (9) ____, and street advertising. We
have a good target customer database, so we will use (10) ____ . We plan to do
a (11) ____ twice, to put extra pressure on those who do not answer the first
time.
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3. Match each definition to the appropriate type of promotion. Translate the

sentences.

direct mailing in-store promotion BOGOF hard selling

point-of sale advertising on-pack promotion perimeter advertising
customer-oriented selling
1. A promotion method for fast-moving-consumer-goods which involves
buying one and getting one free is called ____ .
2. Advertising around the playing area at sports grounds is called ____ .
3. A promotion method that involves the packaging of a product, such as
including a free sample or coupons is called ____ .
4. A promotion based on advertising in the actual shop is an ____ .
5. A selling technique based on making a personal call to an individual or
company is called ____ .
6. Selling product or service information by post to specific individuals or
companies is called ____ .
7. A selling style based on identifying and meeting the customer’s needs is
called ____ .
8. A sales-oriented selling style, using high pressure and persuasion, discounts
and free services is called ____ .

4. Which of the following statements do you agree with? While answering use
some of the words characterizing advertisements.
clever interesting funny inspiring eye-catching powerful
humorous shocking informative sexy

1. People remember advertisements not products.

2. Advertising raises prices.
3. Advertising has a bad influence on children.

5. Translate the following text into English.

Выбор целевой аудитории

Первый шаг в разработке рекламной программы – это выбор целевой
аудитории, т.е. группы потенциальных покупателей, на которых будет
направлена рекламная программа.
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Выбор целевой аудитории определяет все аспекты рекламной

программы: содержание рекламы, средства её распространения, частота
показа, время показа.
Компания «Nestle», например, при подготовке рекламной кампании
бульонных кубиков “Maggi” выяснила, что целевая аудитория для этого
продукта в России отличается от европейской. Если в Европе целевой
аудиторией являлись холостяки (которые в основном питаются вне дома,
но по случаю решили сами приготовить суп), то в России целевой
аудиторией являются домохозяйки, которые готовят обед для своей семьи.
Поэтому в рекламных роликах, демонстрируемых по российскому
телевидению, шеф-повар, дающий рекомендации неопытным кулинарам
(с кубиками “Maggi” вы сами сможете приготовить суп как в ресторане),
был заменён домашней хозяйкой (с кубиками “Maggi” почувствуйте вкус
к творчеству).
Показываются эти рекламные ролики во время сериалов или вечерних
программ, когда у телевизора собирается вся семья.

6. Aims of street marketing. Marketing managers choose the form of direct

marketing for various reasons. Read the reasons and translate them into
Russian:

1) to build awareness, or knowledge, of a product among a specific group of

people – for example, men aged 20-35;
2) to increase the purchase consideration (get consumers to consider buying a
product);
3) to create a buzz so that the target start to talk about the brand;
4) to establish a dialogue with potential consumers (start talking and listening to
people’s opinions about the brand);
5) to build the credibility of a brand by convincing influential and trusted peer
members – people of the same age or with the same interests – to use the brand.

7. Read the information about the product launch and select two objectives
that best describe the campaign. Say what you think about the efficiency of
the campaign. Look at the exercise above to help you.
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We launched a street marketing campaign to reach the elusive youth market.

The campaign targeted 18 to 25-year-old customers at home, at work, in the
street. The goal was to create a fun environment where trendsetters and
influencers could talk about and taste the new products.
Street marketing was used to create a buzz about our new range of energy
drinks. A bus, decorated in the logos and colours of the brand, travelled along
the streets communicating brand messages. We distributed samples in night
clubs, in fashionable bars and in stylish locations in the city.

Case study: Focus advertising

Read the case, prepare and present your advertising campaign.

Background
Focus, a large advertising agency, based in Paris, has a reputation for creating
imaginative and creative campaigns. Recently, however, Focus’s reputation was
damaged when two major clients changed to rival agencies. Focus now needs to
convince potential clients that it still has plenty of creative ideas to offer.
At present, Focus is competing against some well-known agencies for several
contracts. It has been asked to present ideas for advertising campaigns to the
managements of the companies concerned.

Concepts required for the following campaigns are:

A sports car A high-priced, hand-finished model with a classic design. The car was
popular in the 1950s and 1960s. An American firm now wants to re-launch it. Target
consumers will be high-income executives with a sense of fun and style.
Aim: An international campaign, with advertising adapted to local markets.

A perfume A perfume for young women, with bio-degradable packaging. Produced

by a well-known up-market manufacturer. The company now wishes to enter the lower
end of the market.
Aim: Reach new consumers, expand the market share.
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A chain of restaurants The restaurants (specializing in your national cuisine) are in

prime position and offer extensive menus. They are reasonably priced, but are not
attracting enough customers.
Aim: A creative campaign to improve sales.

A major bank: The bank wants to advertise the following new services:
1. Competitive low-interest mortgages
2. Direct telephone banking services
3. A foreign travel service
(The agency is allowed to suggest any other attractive services.)
Aim: Develop loyalty among existing customers and attract new ones.

Task: You are members of advertising teams at Focus. Prepare an advertising

campaign for one of the products or services. Use the key questions below to help you.

Key questions:
1. What is campaign’s key message?
2. What special features does the product or service have?
3. What are its USPs (Unique Selling Points)?
4. Who is your target audience?
5. What media will you use? Several, or just one, or two?
If you use :
an advertisement – write the text and do rough art work;
a TV commercial – use a story board to illustrate your idea;
a radio spot – write the script, including sound effects and music;
other media – indicate what pictures, text, slogans, etc. will be used.
6. What special promotions will you use at the start of the campaign?
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Wordlist
Unit 1 The role of marketing
to identify (v) – to discover, to recognize
to implement (v) – to carry out; to put something into practice
transaction (n) – 1) a business deal 2) payment or the process of making one
competitive advantage (n) – an advantage that makes a company more able to
succeed in competing with others
to implement (v) – to carry out or put into practice
to anticipate (v) – to expect; to think likely to happen
to modify (v) – to make small changes to improve something
timing (n) – the choosing of exactly the right time to do something
to impact (v) – to have a strong influence on
to expand (v) – to become larger in size, amount or number
to extend (v) – to increase the period of time, to increase the range of goods (to
make it longer)

Unit 2 The marketing mix 1 / 2

to purchase (v) – to buy something, especially something big and important

to penetrate the market (v) – to enter the market; to start selling goods on the
market
to skim (v) – to charge a very high price for a new product in order to make its
profit as large as possible
to generate (v) – to do something that will produce or increase sales, income,
profit
to be consistent with – to be in agreement with; to be in accordance with
variable (n) – something that affects a situation and can vary in quantity and size;
(opposite – constant)
to communicate something to – to make (opinions, feelings, information) known
or understood by others
commodity product – a product such as a metal, farm product, oil, etc.; a product
that is hard to differentiate from other similar products
premium pricing (n) – setting a high price
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affordability (n) – the ability to buy a product because you have enough money to
pay for it
accessibility (n) – the ability to reach or to obtain the product
availability (n) – the ability to buy a product because the store has this product
awareness (n) – knowledge or understanding of something

Unit 3 Marketing plan

to track (n) – to control the activity of a firm through measuring the results
to saturate the market – to offer so many products for sale that there is more than
people want to buy

Unit 4 Marketing strategies

the extent of (n) (resources) – the length of something

to benefit (someone) (v) – to be useful, helpful or profitable to
to stretch (the product line) – to use the existing brand name on a different type
of product hoping that people will buy the product because they recognize the name
to confront competition – to face bravely
market challenger (n) – a company which is number two on the market and which
wants to be a leader
market follower (n) – a company which is quite satisfied with its position on the
market and which follows the leader and the challenger
economies of scale (n) – the advantages that a big factory or shop has over a
smaller one because it can spread its fixed costs over a larger number of units and
therefore produce or sell things more cheaply
multiple nicher (n) – a company that sells a product or service in two or more
niches
cost leadership (n) – the position of being the company able to save money by
making a product or performing an activity in a more economical way
durability (n) – the ability of a product to last long time
to pursue a policy – to carry on or to continue doing something

Unit 5 SWOT analysis

to facilitate (v) – to make something easy or easier

to capitalize on something (v) – to make as much advantage out of the situation or
the event as you can
to undertake (v) – to promise or agree to do something; to be responsible for some
piece of work
to assess (v) – to evaluate; to make a judgement about a situation or a person after
considering all the information
facility (ies) (n) – a special building or equipment that is used to provide a
particular product or service
capacity (n) – the amount of something a factory can produce
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Unit 6 Marketing research 1 / 2

desk research – the research which is done on the basis of collected information;
the researcher needn’t leave his table
field research – work that involves travelling to meet possible customers in order
to get their opinions on products or services
focus group – is a group of consumers who are brought together to discuss their
feelings and opinions about products, advertisements, and companies
survey (n) – a set of questions given to a group of people to find out about their
opinions or behavior
omnibus survey (n) – conducting research for several companies at the same time
to respond to (v) – to do something in answer; to react to

Unit 7 Consumer behavior and market segmentation

innovator (n) – a person or a company which introduce new products or ideas

to adopt (v) – to start using a product, especially a new product, usually with intention
of continuing to buy and use it
early adopter (n) – a person who identifies a fashion trend early and wants to be
associated with the start of a trend
early majority (n) – people who follow the trend set by the early adopters
late majority (n) – people who accept a trend and follow it but after it has been tested
by the early majority
laggards (n) – the last group of people who accept and buy a product

Unit 8 Products

to perish (v) (about products) – to lose natural qualities

durable goods (n) – goods which last or live long
generic products (n) – a product that is sold under the general name for a type of
product , rather than a brand name
fast-moving goods – goods, especially food, that sell very quickly and in large
amounts
to dilute (v) – to make something weaker
to prune (v) – to shorten something
brand loyalty (n) – the degree to which people regularly buy a particular brand or
product and refuse to change to other brands
flagship brand (n) – the leader on the market
brand equity (n) – the value of the brand

Unit 9 Pricing

bargain (n) – agreement between two people or groups to do something in return for
something else
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upmarket (n) – the market where you can buy expensive goods or services
downmarket (n) – involves goods or services which are cheap

Unit 10 Placing

to dispatch (v) – to send something or someone to a place

multiple (store) (n) – a place where goods are sold to the public
rep (n) – someone employed to sell a company’s products or services by meeting
customers or talking to them on the phone
dealer (n) – someone who buys and sells a particular type of goods

Unit 11 Promotion

credibility (n) – the quality of deserving belief and trust

a buzz marketing (n) – marketing in which a company persuades a small group of
people who know a lot about a subject to tell other people about its advantages, in
order to make the other people become interested in it and want to buy it
perimeter advertising (n) – advertising around the playing area at sports grounds
mail shot (n) – the situation where information or advertising material is sent through
the mail to a large number of people at one time
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Contents
1. Unit 1 The role of marketing …………………… 4
2. Unit 2 Marketing mix 1 ………………………… 14
Marketing mix 2 ………………………… 21
3. Unit 3 Marketing plan ………………………….. 28
4. Unit 4 Marketing strategies …………………….. 35
5. Unit 5 SWOT analysis ………………………….. 51
6. Unit 6 Marketing research 1 ……………………. 61
Marketing research 2 ……………………. 67
7. Unit 7 Consumer behavior and market
segmentation ……………………………. 71
8. Unit 8 Products …………………………………. 78
9. Unit 9 Pricing …………………………………… 92
10. Unit 10 Placing …………………………………... 98
11. Unit 11 Promotion ……………………………….. 103
12.Wordlist ………….……………………………….. 111
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Sources

1. Professional English in Use, Cate Farrall, Marianne Lindsley, Cambridge

University Press, 2008
2. Marketing, Real People Real Choice, Michael R.Solomon, Elnora
W.Stuart, Prentice Hall, New Jersey, 2000
3. Business Advantage, Almut Koester, Angella Pitt, Michael Handford,
Martin Lisboa, Cambridge University Press, 2012
4. Profile (Intermediate), Jon Naunton, Oxford, 2005
5. Longman English Dictionary, Pearson Education Limited, 2007
6. English-Russian Dictionary of Advertising and Marketing, В.Б.Бобров,
1999
7. Business English Marketing (Test yourself), Simon Sweeney, Nick
Brieger, Penguin Group, 1996