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III. Tick the factors below which contributed to Miele’s success.
It has excellent quality control in its factories.
It changes its position in the market according to demand and fashions.
Its prices are very competitive.
It uses a lot of outside suppliers.
It spends more money than other manufacturers on creating new products.
It does a lot of testing.
It focuses on every detail of production.
Each component lasts a long time.
IV. Match the words or phrases from the article to the definitions.
the most important company of its type in the world (noun, paragraph 1)
measures of quality by which the processes of producing goods in factories are judged (noun, paragraph1)
to sell products more cheaply (verb, paragraph 1)
employing another company to do work for you (verb, paragraph 2)
people who are interested in how much money they pay for a product (adjective, paragraph 6)
V. Discuss.
Can companies outsource and still maintain quality?
Can companies do everything in their home country and still remain competitive?
How can companies build loyalty among consumers?
VI. Render the text.
LISTENING 1
A Successful Company
(Market Leader Pre-Intermediate Unit 3 Recording 3.1, 3.2, 3.3)
I. Work in pairs. Agree on the three most important factors from those in
the list below which can make a company successful.
focusing on how to increase market share
having a strong company culture
having user-friendly packaging
having good designers who also understand production
responding to the needs of the workforce
starting with a simple business idea that is easy to understand
II. Listen to the first part of the interview with Peter Jelkeby, IKEA’s UK
Deputy Country Manager. He talks about four factors that make IKEA a
successful company. Listen and number the four factors in task I in the
order he mentions them.
III. Listen to the second part of the interview and complete the notes.
IKEA manages to stay ahead of the competition by:
____(1) the market and the customer ____(2).
understanding how the ____(3) are acting
being not only about products, but also about ____(4) to people’s needs
IV. Listen to the final part of the interview and decide which of the following
was the interviewer’s question.
What new projects are you involved in at present?
How can you keep up your performance at such a difficult time for the economy?
What are the things a successful international business must do?
LISTENING 2
Presenting your company
(Market Leader Pre-Intermediate Unit 3 Recording 3.4)
I. Which of these suggestions do you agree with?
To make an effective presentation, you should:
find out as much as possible about your audience
introduce yourself (name, position, company)
start with a joke
outline the structure of your talk
vary the tone of your voice
refer to your notes as often as possible
use clear visual aids
summarise your main points.
Listen to the presentation about Tara Fashions. Complete the chart.
-
Tara Fashions
Where is the head office?
Cordoba, …
What does it sell?
Who are its customers?
What is its annual turnover?
What are its annual net profits?
How many stores does it have
in Spain?
in other European cities?
What are its strengths?
What are its future plans?
Listen again. Tick the phrases that you hear in the Useful Language box.
Useful language
-
Outlining the presentation
First, I’ll give you some basic information.
Secondly, I’ll talk about our stores in other countries.
Next, I’ll talk about career opportunities.
Last of all, I want to look at our future plans.
Introducing new information
Here’s some basic information.
Let me add a few figures.
Let’s have a look at some statistics.
What are our strengths?
Ending the presentation
To conclude, I want to tell you about our future plans.
Finally, a few words about our new project.
Thanks very much for listening to my talk.
Thanks for coming to my presentation. (this phrase may also be used at the very beginning)
Invent a company. Use the chart in Task II to help you prepare a
presentation about it. Make use of the phrases from the Useful Language
box.
GRAMMAR REVIEW 2
Phrasal verbs
I. Look at these examples of phrasal verbs from the unit. What synonyms can
we use instead of these phrasal verbs? Choose from the list below.
1. It has taken time to build up sales, but we’ve done well in the first years...
2. ...each day its factories turn out 50 million integrated circuits.
3. The Board of Management looks after the general direction and long-term
strategy of the Philips group.
4. How can you keep up your performance at such a difficult time for the
economy?
supervise produce increase maintain
Replace the words in bold with phrasal verbs. Use a dictionary if
necessary.
point out call off
buy out call on
think over let down
look after
The meeting has been cancelled because several employees are unable to attend.
We already own 30 % of the company’s shares and we intend to purchase another 20 % in the coming year.
The new subsidiary will be supervising our operations in the Middle East.
The General Manager indicated some mistakes in the annual report.
We’ll need some more time to reflect upon the report before we make a decision.
One of our sales representatives will visit you next week.
This year the company has disappointed investors by announcing an unexpected loss.
CASE STUDY
Valentino Chocolates
Background
Valentino chocolates are made in Turin, Italy. They are recognized as luxury products with a delicious and unique taste. Some of Valentino’s finest chocolates are handmade and have won many international awards.
Expansion
The company started by selling raw chocolate to other chocolate manufacturers. They used it to make their own products. Later, Valentino began selling packaged chocolates directly to the public and created the Valentino brand.
The company expanded fast. It now has 300 employees, 75 company-owned shops and a turnover of 90 million euro. However, in the last two years, sales growth has slowed down and costs have risen. This has caused a fall in profits by 1.8 million euro.
Reasons for falling profits:
Prices
There is a widespread price cutting in the industry.
Production
Factory machines often break down.
Demand
Demand for its Classic Bar is falling. Valentino’s new products, biscuits and
cakes are not selling well. They constitute only 1% of turnover.
The future
The company’s owners want Valentino to become an international business. They believe it makes the finest chocolates in the world. This year they have set aside 1.5 million euro to invest in their company. Their problem is to decide how to spend the money so that the company will continue to expand. Recently, a well-known business journal did a profile of the company. It ended as follows:
Valentino can continue to grow, but only if it develops new products and finds new markets.
The ways in which Valentino could invest the 1.5 million euro are listed below.
Investment Options
| Option | Cost | Benefit |
| 1. Extend the factory | 500,000 euro | Increase the factory’s capacity by 30 % |
| 2. Invest in more research and development | 200,000 euro | Develop new products such as low-fat chocolate drink, new biscuits and cakes |
| 3. Buy new machinery | 200,000 euro | End the delays caused by old machines breaking down |
| 4. Buy out a local competitor | 1.5 mln euro | Reduce local competition |
| 5. Set up a factory in the US | 1.3 mln euro | Manufacture chocolates in a major new market |
| 6. Launch a marketing campaign | 500,000 euro | Increase sales of all products |
| 7. Finance a market survey and research trips to the US | 100,000 euro | Assess the market potential for Valentino products. Contact agents. |
| 8. Invest in an existing group of cafes | 500,000 euro | Become a partner in cafes which sell and promote Valentino chocolates |
| 9. Set up online sales | 150,000 euro | Increase sales and profits |
| 10. Buy a new fleet of cars | 500,000 euro | Increase motivation of the sales staff |
Task
You are directors of Valentino. Meet to discuss your investment plan.
Work in pairs. Decide how to spend 1.5 million euro using investment options.
Prepare a presentation of your investment plan, with reasons for your
choices.
Meet as one group and present your ideas.
As one group, agree on a final investment plan.
Writing
As a director of Valentino Chocolates, write a memo to your CEO outlining your investment plan. Give reasons for your choices. Begin like the example. Use the Writing File.
MEMO
To: CEO
From:
Subject: Investment Plan
In recent years Valentino has become one of Europe’s leading brands of chocolate. It is now ready to become a successful international business. The Board of Directors has agreed on the following investment plan: ...
MODULE 3
SALES AND MARKETING
Vocabulary
| advertising campaign advertising agency advertising budget after-sale service aim anticipate available bargain cancel 10.change one’s mind charity charitable charitable donation competing brand cooling-off period credit credit card credit card details interest-free credit consumer profile consumer behaviour customer care deliver delivery discount dispatch distribute distribution distributor expiry date goal goods consumer goods durable goods fast-moving consumer goods industrial goods | income interact interaction in bulk leaflet launch launch a product launch a risk market market leader market research market segment market share money back guarantee objective offer overheads payment personal selling product launch product life cycle promote promotion purchase recovery of the costs refund sales figures sales forecast sales target stock in stock out of stock storage target target audience warehouse |
LEAD-IN
I. Discuss these questions:
What is marketing?
How does marketing help to increase sales?
II. The “four Ps” form the basis of the marketing mix. If you want to market a
product successfully, you need to get this mix right.
Match the “Ps” 1 to 4 to the definitions.
-
1.Product
2.Price
3. Promotion
4. Place
a. the cost to the buyer of goods or
services
b. informing customers about products
and persuading to buy them
c. where goods and services are
available
d. goods or services that are sold
LISTENING 1
(Market Leader Pre-Intermediate Unit 7 Recording 7.1)
Listen to four consumers talking about different products. Decide which
of the four Ps each speaker is discussing: product, price, promotion or
place.
III. Think of some product you have bought recently. Why did you buy them?
Which of the four Ps influenced your decision to buy?
IV. Tell your partner about a marketing campaign that impressed you. Why?
BUILD YOUR VOCABULARY
I. Choose the correct word to complete each sentence
We offer ………. to customers who buy in bulk.
a. refund b. discount c. delivery
2. We ask customers who are not fully satisfied to ……… goods within seven
days.
a. discount b. refund c. return
3. In order to get a full ……… , customers must send back goods in the
original packaging.
a. discount b. refund c. return
4. Goods will be ……… within 24 hours of your order.
a. dispatched b. purchased c. exchanged
5. Goods are kept in our ……… until ready for delivery.
a. stock b. storage c. warehouse
6. Products and services offered at a large discount are generally a(n) ……… .
a. sale b. bargain c. offer
II. Combine words from boxes A and B. Make phrases that match definitions
1 to 7. For example, credit card details – 2. the name, number and expiry
date on your credit card.
A
| credit card cooling off money back method of interest-free out of after sale |
B
| guarantee stock period credit details service payment |
the time when you can change your mind and cancel your order
the name, the number and expiry date on your credit card
the way you choose to buy the goods you want
when you can pay some tome after you buy the goods you want
when the goods you require are not available
a promise to give your money back if you are not happy
the help you get from a company when you start to use their product
III. How do we call:
1. to buy a lot of goods
2. the period when you can change your mind and send the goods back to the
shop
3. to buy at a reduced price
4. the guarantee to return your money back if you are not happy
5. all the information about a credit card including the name of the holder, the
number of the credit card and the expiry date
6. a person who sells by retail
7. Internet shopping
8. all the goods available in a shop
9. a place to keep a lot of different goods to sell them in bulk
10. a period when all the goods are sold at a discount price
11. cheap purchase (goods)
IV. Match the following English words with their Russian equivalents.
| warehouse in stock bargain sale refund dispatch order reliable to exchange return | заказ возврат денег за товар оптовый склад в ассортименте возврат товара выгодная покупка распродажа обменивать отправлять надежный |
V. Translate the word combinations into Russian
Market research, market segment, market share; consumer behavior, consumer profile, consumer goods; product launch, product life cycle,
product range; sales forecast, sales figures, sales target; advertising campaign, advertising budget, advertising agency.
VI. Match the word combinations to their definitions a to c.
| 1. market research | a. the percentage of sales the company has in the market b. information about the products which customers want and need c. a group of customers of similar age, income level and social group |
| 2. consumer profile | a. description of a typical customer b. where and how people buy things c. things people buy for their own use |
| 3. product launch | a. introduction of a product to the market b. length of time people continue to buy a product c. set of products made by a company |
| 4. sales forecast | a. how much a company wants to sell in a period b. how much a company thinks it will sell in a period c. how much the company has sold in a period |
| 5. advertising budget | a. a business which advises companies on advertising and makes ads b. an amount of money available for advertising during a particular period of time c. a program of advertising activities over a period, with particular aims |
VII. Give the word combinations for the definitions a to c from task VI
which you didn’t choose to do the task.
VIII.Translate the following words and word combinations
Cкидка, доставка, возврат денег, оптом, товары, заказ, отправка, покупать, обменивать, оптовый склад, ассортимент, выгодная покупка, предложение, срок действия, беспроцентный кредит, нет в ассортименте, способ платежа, послепродажное обслуживание, надежный, купить почтовым заказом, розничная торговля.
IX. Translate the following sentences into English
Он никогда ничего не покупает через Интернет.
На этом сайте можно найти все: CD, модную одежду, украшения и путевки.
Если вы купите большую партию, мы предоставим вам скидку.
Товары доставляются в печение 24 часов.
Очень трудно удержаться от выгодной покупки, даже если вещь вам не очень нужна.
На вашей кредитной карточке содержится следующая информация: ваше имя, номер кредитной карточки и срок ее действия.
Мы готовы предоставить вам беспроцентный кредит, если вы оплачиваете 2/3 стоимости товара.
В течение двух недель вы можете вернуть товар и получить обратно деньги.
Покупки по Интернету очень удобны, так как вам не нужно никуда выходить, вы можете делать покупки дома, не отходя от компьютера.
В чем разница между розничной торговлей и Интернет продажами?
GRAMMAR REVIEW 1
Passives
We make passive verb forms with the verb to be + past participle.
Example: The results of the research are given below.
We often choose a passive structure when we are not interested in or it is not necessary to know who performs an action.
Example: Several luxury resorts have been built there.
If we want to mention who performs an action, we can use by.
Example: A 30-minute radio programme aimed at working people is being
planned by European Business Association.
We can use the passive to describe a process, system or procedure.
Example: Business people are asked if they think the suggested topics are
interesting.
Use the three columns of words below to make passive sentences.
Example: Diamonds are mined in South Africa.
Diamonds produce Poland
Microchips manufacture Kuwait
Semiconductors make Japan
Electronic goods refine The United States
Coffee grow Finland
Leather goods mine Switzerland
Oil Malaysia
Rice Brazil
Watches Spain
Coal South Africa
Copper Zambia
Mobile phones China
Make similar sentences about products from your own country.
III. Change these active sentences into the passive so that they sound more
natural.
1. They are planning the conference at the moment.
The employers asked the staff for their opinion.
Somebody makes these toys in Japan.
Somebody has found the missing file.
They will sell these handicrafts at the resort.
The managers had to rearrange the schedule.
They did not redecorate the office in time.
IV. The article below describes how a health care company develops new products. Complete the article with passive forms of the verbs in brackets.
The idea for how our company’s new products ........ (develop) is not new – it.........(model) on the well-known example of the Body Shop.
When a new product ........ (plan), the first step is to send Product Development Agents to the region of the developing world chosen for the project. They start by finding materials that ........ (use) in the product. Then links.......... (arrange) with local suppliers. Wherever possible, products ........ (manufacture) locally as well, although the finished product ........ (export) for sale mostly in the developed world.
Normally, products ........ (ship) in large containers and ........ (package) in their final form only when they reach their destination.
The Product Development Agent identifies and establishes links with local material suppliers. After that he or she ensures that these links ........ (maintain). The agent is also responsible for producing the goods safely so that human rights ........ (respect) and local workers ........ (not exploit).
GRAMMAR REVIEW 2
Past simple and past continuous
Study these examples.
Our company was selling products online long before all its competitors.
(past continuous)
We were trying to produce a new design when suddenly we had a great idea.
(past continuous) (past simple)
Last year, we spent a lot on advertising and so attracted new customers
(past simple) (past simple)
We use the past continuous:
to talk about something that that was going on at a particular time in
the past, as in sentence 1.
to describe an action which was already in progress when something
else happened, as in sentence 2.
to talk about actions or events that we see as completed, as in sentence
3.
I. Complete the story below with the past simple or past continuous forms of
verbs in brackets.
Mr Fry – Keep me posted.
In the early 1970s, Art Fry, a research scientist, had the idea for Post-it Notes while he was singing in his local church choir. At the time he …….. (mark) the correct pages in his hymn book with small species of paper. The problem was they often …….. (fall) out and he …….. (lose) his place.
At the same time, Dr Spenser Silver, a colleague of Mr Fry’s at the American company 3M, …….. (do) research into adhesives in the Central Research Department. One day when Fry …….. (use) some of a new adhesive on the edge of a piece of paper, he found that it …….. (stay) where he put it. He also found he could move it to another position without damaging his book – a perfect bookmark. A little later he …….. (send) to a colleague. A new way of communicating and organising information began. Post-its have now become an essential part of office life.
READING
Text 1
Marketing Mix (the 4 Ps of Marketing)
The “Dictionary of Economics” gives the following definition of marketing – the functions of sales, distribution, advertising and sales promotion, product planning and market research. The aim of the “market conception” is to find wants and fill them. In other words, not to sell that is made but to make what will be bought. As well as satisfying the existing needs, marketers can anticipate and create new ones. For example, the markets for the notebook, PC, video games and so on were largely created rather than identified.
In order to produce what will be bought and not to launch a risk companies carry out market research. They gather and analyze information on markets, products and consumers’ reaction to a product. Sales representatives who interact with consumers are another important source of information.
Once the product concept has been identified, the company begins to think about the marketing mix. It includes four important components – the 4 P’s of marketing:
Product – goods and services to be sold
Place – means of getting the product or service to the customer
Price – cost of the product
Promotion – means of informing people about the product or service.
Product. It is of paramount importance that the product is right. There is a history of “white elephants” – products that were developed and launched which provided to have little or no demand.
There are two main types of product – consumer and industrial product. Consumer goods are products that are bought by the final user. There are two categories of consumer goods – fast moving consumer goods which are bought and consumer quickly (food, cleaning materials, magazines and so on) and durable goods which are bought rarely and last longer (washing machines, cookers, hi-fi, TV and so on). Industrial goods are those products that are used in industrial processes and are usually processed further (such as raw materials, parts, accessories, machines etc.).
Place. Place refers to the target market for the product. The modern business must have a good idea of the consumer type that the product will be aimed at. The total market with a certain type of customer is known as a segment. So by the term place we don’t mean physical location. The potential market is segmented according to such factors as sex, age, family income, type of residence, education as well as the way of life and personal traits. Many products are aimed at a certain age group (for example toys are aimed at children). Possible examples of sex segmented products are clothes, jewelry, magazines etc.
Price. The price set for the product will depend on several considerations. As the company has many costs dealing with making, distribution and selling a product, the recovery of these costs compose the primary level of price. In addition, the
organization will also charge a price in excess if the costs of the product are high. Price also has other additional purposes. Among the most important is that price gives a signal as to the quality of the product and will attract the buyers. “High class” restaurants attract customers simply by being expensive. The “cash only” supermarkets have low prices due to their cost structure, but the low prices also serve to attract their target market.
The simplest pricing model is cost plus. This is when the accountant will calculate the total cost of the product, including its production, transportation and overheads, and then add on a profit figure. The disadvantage of this approach is that it ignores market conditions, and the company will either under- or over-price its products.
Promotion.
It is wrong to think that a consumer-oriented product will sell. Even a good, attractively placed product has to be made known to its target customer. The producer has to develop a brand awareness, i.e. to inform potential customers, dealers and retailers about the product’s existence, features, advantages and so on. This is clearly the matter of promotion. Marketers usually have to decide which tools – advertising, public relations, sales promotion or personal selling – to use and what proportion.
Direct advertising includes commercial TV and radio, magazines and newspapers, transport, posters, leaflets and hands-out. Advertising tends to be very expensive; it is usually placed in the media which will reach the market segment in the most beneficial way.
Public relations (PR) is concerned with creating, maintaining, improving and protecting the image of a company or product. It is believed that by maintaining a good public image, other trading activities will be smoothed and encouraged. Public relations include open days, visitor centers, press statements, charitable donations and community projects, sponsorship and so on.
Sales promotion such as free samples, coupons, price reductions, competitions are temporary tactics to stimulate earlier or stronger sales of a product.
Personal selling is the most expensive promotional tool and it is generally used as a complement to advertising. It includes person-to-person direct communication where the benefits of the product are expanded. It has the following methods: shops employing sales people, trade counters, showrooms and travelling representatives.
I. Answer the questions
What is marketing?
What is the aim of the “market conception”?
What markets were created rather than identified?
Why do companies carry out marketing research?
What are the 4 Ps of marketing?
What are the two types of product?
What are the two categories of consumer goods?
What are industrial goods?
According to what factors is the potential market segmented?
What does the price of the product depend on?
What is the simplest pricing model?
Why is it necessary to promote goods and services?
What are the promotion tools?
II. Match the words with their definitions.
| 1. promotion 2. public relations 3. consumer goods 4. advertising 5. durable goods 6. demand 7. market segment 8. “white elephants” 9. product | a. products that were developed and launched which provided to have little or no demand b. activities intended to sell a product or service using radio, TV, newspapers, magazines and leaflets. c. the total amount of a type of goods and services that people or companies buy in a particular period d. maintaining, improving and protecting the image of a company or product e. tools of getting the product or service to the customer f. goods which are bought rarely and last longer g. products that are bought by the final user h. goods and services to be sold i. a target customer group having common characteristics (such as sex, education, age, income level and so on) |
III. Render the text in English.
IV. Translate the sentences into English.
Чтобы не подвергать себя риску, компания проводит маркетинговые исследования.
Существует два вида товаров – потребительские и производственные.
Товары длительного пользования покупают реже и пользуются ими дольше.
Потенциальный рынок сегментируется в соответствие с такими факторами как пол, возраст, доход, образование и образ жизни потребителей.
Многие товары нацелены на определенные группы потребителей.
Самая простая модель ценообразования – это цена плюс.
Для того, чтобы маркетинговая кампания была успешной, она должна быть хорошо спланирована и хорошо профинансирована.
LISTENING 2
Successful marketing
(Market Leader Pre-Intermediate Unit 7 Recording 7.2, 7.3, 7.4)
I. Listen to the first part of an interview with Jonathan Turner, Managing
Consultant at Oxford Strategic Marketing, and complete the notes.
Keys to successful marketing
have a passionate curiosity for the ____(1)
get a deep understanding of their ____(2) and their ____(3)
analyse all the business ____(4) and market ____(5)constantly.
have a strong business ____(6)
have an instinctive understanding of how ____ ____ ____ ____(7)
II. Work in pairs. Discuss if the following points can contribute to
successful marketing and why. Which point do you think Jonathan will
mention next?
an awareness of the company’s strengths and weaknesses
an understanding of the opportunities and threats the company faces
good communication skills
a good, creative campaign
III. Listen to the second part of the interview and see if you were right.
Do you agree with Jonathan?
IV. Listen to the last part of the interview and answer the questions.
1. What kind of company is Oxford Strategic Marketing working for at the
moment?
How does the technique called ‘market segmentation’ work?
What did Oxford Strategic Marketing do for their client?
What was surprising about the results of the research?
LISTENING 3
Telephoning: exchanging information
(Market Leader Pre-Intermediate Unit 7 Recording 7.5, 7.6, 7.7, 7.8)
I. Listen to four people giving their telephone numbers. Tick the correct
numbers.
-
1. 244252
2. 881990
3. 020 8045 1930
4. 0033 2399 0324
II. Write down some of telephone numbers you know. Dictate them to your
1 2 3 4 5 6 7 8 9 ... 14