1/

regular expenses to run a business or an organization, such as rent, electricity, wages, etc. →
overheads
What a consumer buys, and when and how they make their final purchasing decision →
Purchasing behaviors or purchasing patterns
Pricing one item very low and its complement very high → Captive product pricing
a company that is number two in an industry, but which would like to become number one →
Market challenger
Purchases of the same products on a repetitive basis which have low levels of personal
involvement → Routine purchases
A market in which one single producer can fix an artificially high price → Monopoly
What a company wants people to think about a brand → Brand identity
A related series of items sold by a company → Product line
Two brands working together to create a new product  → co-branding
Pricing goods at a very low price to encourage people to buy them – often the prices are later
raised → Penetration pricing

2/

A market can be defined as all the potential customers sharing a particular need or want.
Marketing is the process of developing, pricing, distributing and promoting the goods or services
that satisfy such needs. Marketing therefore combines market research, new product
development, distribution, advertising, promotion, product improvement, and so on. According
to this definition, marketing begins and ends with the customer. Truly successful marketing
understands the customers so well that the product or service satisfies a need so perfectly that the
customer is desperate 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.

Companies are always looking for marketing opportunities – possibilities of filling unsatisfied
needs in areas in which they are likely to enjoy a differential advantage, due to their particular
competencies. Marketing opportunities are generally isolated by market segmentation – dividing
a market into submarkets or segments according to customers’ requirements or buying habits.
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 will then have to design marketing strategies and plan marketing programmes,
and then organize, implement, and control the marketing effort. Once the basic offer, for
example a product concept has been established, the company has to think about the marketing
mix – the set of all the various elements of a marketing programme, their integration, and the
amount of effort that a company can expend on them in order to influence the target market. The
best-known classification of these elements is the 4 P’s: Product, Price, Promotion and Place.

Aspects to be considered in marketing a product include its quality, its features, style, brand
name, size, packaging, services and guarantee, while price includes consideration of things like
the basic list price, discounts, the length of the payment 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 promotions, 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; governments and health authorities
sometimes try to change people’s habits for their own good or for the general good. In other
words, marketing also involves regulating the level, timing and character of demand.

3/
Marketing assistant
His or her primary responsibility is to provide direct support to the media buyers. S/he will also
track media mentions, support customer service, manage our relationship management tools and
provide other assistance within the marketing department when needed. 

Director of marketing
The successful candidate must be an excellent manager and have a proven track record in leading
a large department. The mission is to develop and execute a comprehensive marketing plan that
reinforces our leadership position. Direct responsibilities include media relations, PR, marketing
communications, planning and more.

Hear of PR
The job involves managing all aspects of public relations, publicity, etc. The right person will
have solid writing skills and strong relationships with the appropriate media outlets. The position
reports directly to the CEO. The salary is based on experience.

Brand manager
You will be responsible for developing and executing brand strategies and marketing initiatives
for an assigned product line to meet revenue, profitability, and budget targets. Requires strong
knowledge of marketing principles and practices, and the ability to lead cross-functional teams to
accomplish a successful go-to-the market strategy. This position reports directly to the Director
of Marketing.

4/

GRAPHIC DESIGNER One of this person's responsibility is to create logos.

AD AGENCY This company is responsible for creating advertisements.

MARKET RESEARCH FIRM This company might conduct a survey to find out more about
your customer.

ART DIRECTOR This person supervises the design staff.

PR OFFICER (Public Relations This person interacts with the media to communicate
Officer) important company information to the public.

COPYWRITER This person writes the text for advertisements.

UNIT 2
UNIT 3+4

2. Which words in the box are used to talk about which P? Sort them into the correct
category.
advertising • appearance • channels of distribution • discount • financing • list price • location •
logistics • media • public relations • quality • service

Product: appearance, quality, service

Price: discount, financing, list price
Placement: channels of distribution, location, logistics
Promotion: advertising, media, public relations

4. Martin is organizing a meeting to discuss the prices for the cable Internet package.
Put the following sentences in the correct order to complete the email.
a Could you have a look and let me know if there's anything you'd like to add or change?
b As you probably know, we need to think about scheduling a meeting to discuss our pricing
strategy for our new cable Internet package.
c Hope you all had a nice weekend.
d Please let me know if you can attend by the end of the day.
e How about next Tuesday at 9 a.m.?
f I'm also attaching an outline of what l'd like to talk about.
1c 2b 3e 4d 5f 6a
5. Look at three replies to Martin's email. Use the words in the box to complete the them.
attachment • attend • best • cheers • hope • input • mind • postpone • see

1 attend 4 attachment 7 input

2 See 5 Cheers 8 Hope
3 postpone 6 mind 9 best

6. Now read the attachment that Martin sent to his team and find words or phrases that
mean the following:
1 when a customer pays the same fee each month / year / etc.
2 to sell a group of things (like products or services) as a package
3 reduced price
4 another word for product launch
5 enhanced features or services that customers have to pay more money for
1 flat fee 3 discount 5 optional extras
2 to bundle 4 roll-out
7. Match these different pricing models to the definitions.

1. captive product pricing a pricing goods/services as cheaply as possible

2. economy pricing b charging a high price for an item where you have a
3. geographical pricing competitive advantage
4. penetration pricing c charging a high price for a unique high-quality item
5. premium pricing d pricing goods at a very low price to encourage people to
6. price skimming buy them - often the prices are later raised
e pricing according to area where goods are sold
f pricing one item very low and its complement very high
Now decide which model is being discussed.

1f 2a 3e 4d 5c 6b
A geographical pricing
B premium pricing
C penetration pricing
D captive product pricing
F economy pricing
9. Look at these terms used to talk about pricing. Can you add three more?

Now use the words to complete the sentences below.

‘Looking at the competition, €25/ month seems to be the … . It's what most people are charging.’
‘We can sell the modems for €100 each. They only cost €20 in total to produce and distribute, so
we would have a healthy … of €80.'
‘€59.99 is a good … . We can suggest that stores sell it for that much, but if thev want to use it as
a loss leader and sell it for less, then that's fine too.’
‘What I'm afraid of is an all-out … , when our company and the competition are all fighting for
the same customers. We don't want to cut our prices so low that we go out of business.’
‘We need to establish our … .When does the amount we're earning cover our costs?’
‘Luckily, we have low… . Our rent is very low, and we got a great deal on our office
equipment.’
Possible answers: loss leader, discounted price, trade price, net price
1. going rate
2. profit margin
3. recommended retail price
4. price war
5. break-even point
6. overheads

10. Other than price, what factors are important for your product differentiation? Think
about a product you know and discuss it in terms of these factors.

quality image appearance / design

performance customer service

1.1 A marketing manager is talking about the marketing mix for a brand of cleaning
products. Choose the correct words from the brackets to complete the text, and then
match each speech bubble with one of the Ps. Look at A opposite to help you.
1 staff, employees (people)
2 range (product)
3 advertising (promotion)
4 accessibility, outlets, locations (place)
5 expensive, competitors, deals (price)

1.2 Complete the text using words from the box. Look at A opposite to help you.
advertising mix price products promotional

Marie Curie Cancer Care is reviewing its marketing strategy in an attempt to attract a wider
audience. It will stop using (1) ... techniques, such as mailings and events. Television (2) ... and
face-to-face marketing are both being tested in a bid to supplement the charity's typical over-60s
donor base with younger supporters. If tests prove successful, they will become part of Marie
Curie's marketing (3) ... . In addition, Marie Curie Cancer Care is expanding its online shop.
Stylish handbags at a (4) ... of f10 are attractive to younger customers. Marie Curie Cancer Care.
says it is responding to customers' needs and wants by selling elegant fashionwear
(5) ... .
1 promotional 3 mix 5 products
2 advertising 4 price
1.3 Do the following words and expressions refer to product, price, place, promotion, or
people? Look at A and B opposite to help you.

Product Price Place Promotion People

branding discounts accessibility direct marketing direct marketing
launch special deals delivery competitors
quality distribution customers
reputation location sales force
support

2.1 Put the words and expressions from the box into the correct columns. Look at A
opposite to help you.
acceptability awareness cost to user objects
accessibility communication customer needs operations
affordability convenience objectives organization

Product: acceptability, customer needs, objects

Price: affordability, cost to user, objectives
Place: accessibility, convenience, organization
Promotion: awareness, communication, operations

2.2 Complete the article about a supermarket in-store event using words from the box.
Look at A opposite to help you.
awareness customers identified meer 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.
1 customers 3 meet 5 awareness
2 identified 4 promotional
2.3 Replace the underlined words and expressions with alternative words and expressions
from the box. Look at A opposite to help you.
afford high quality revenue obrectives
convenien price socially acceptable
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.
1 socially acceptable 3 price 5 convenient
2 high quality 4 afford 6 Revenue objectives

2.4 Put the words in each sentence in the correct order. Look at B opposite to help you.
1 attention attract must product the to We.
2 aware become of People brand the will.
3 an create in interest need product the to We.
4 an customers develop in interest product the to want We.
5 a desire develop must our own product to We.
6 People steps take it to try will.
7 action buy must prompt it to We
1 We must attract attention to the product.
2 People will become aware of the brand.
3 We need to create an interest in the product.
4 We want customers to develop an interest in the product.
5 We must develop a desire to own our product.
6 People will take steps to try it.
We must prompt action to buy it.

3.1 The extracts below are from a SWOT analysis. Do they describe strengths, weaknesses,
opportunities or threats? Look at A opposite to help you.
1 threats
Competition is growing in this market, which could lead to a price war. There are now a lot of
sites that offer the same service and product categories as Amazon. Amazon is a global brand but
in some local markets the main competitor could be stronger and preferred by consumers.
2 weaknesses
Amazon has added a lot of new categories, but this may damage the brand. For example, offering
automobiles may be confusing for customers. Due to increased competition, the offer is
undifferentiated.
3 opportunuties
In 2004 Amazon moved into the Chinese market. There is huge potential here. In 2005
Amazon launched a new loyalty programme, AmazonPrime, which should maximize purchases
from the existing client base.
4 strengths
Amazon is a global brand, operating in over ten countries. It was one of the first online retailers
and today it has an enormous customer base. It has built on early successes with books, and now
has product categories that include jewellery, toys and games, food and more. It has an
innovative Customer Relationship Management programme.

3.2 Complete the table with words from A and B opposite and related forms. Then
complete
the sentences below using words from the table.

1 Currently, the company is under… from its main competitors.

2 In order to grow, the company will have to create new … , not just exploit existing …
3 We need to minimize … and …
4 To remain ahead of the competition we will need to anticipate … such as increased raw
material costs.
1 threat 3 weaknesses, threats
2 opportunities, strengths 4 threats

3.3 Correct the mistakes using words and expressions from A and B opposite.
1 The brand is very strengthened.
2 Today, competitor fears about health are one of the biggest threats to the processed food sector.
3 An undifferentiated offer will weakness the company in the short term.
4 A clear opportunity is a gape in the market.
5 We may be threated by the emerging trend towards online shopping.
6 A war of prices has weakened our profitability.
1 The brand is very strong.
2 Today, consumer fears about health are one of the biggest threats to the processed food sector.
3 An undifferentiated offer will weaken the company in the short term.
4 A clear opportunity is a gap in the market.
5 We may be threatened by the emerging trend towards online shopping.
6 A price war has weakened our profitability.
6.2 Complete the action plans (1-6) and then match them with the micro factors (a-f). Look
at A opposite to help you. The first one has been done for you.
1 Convince shareholders that the best way to satisfy their needs in the long term is to invest in
research and development.
2 Carry out market research to better… needs and desires.
3 Prepare a press release for a. magazine about the launch of a new product.
4 Build and maintain good....... ..... by always paying on time.
5 Do a SWOT analysis to assess how to .......... your brand from your competitors',
6 Implement a training and................... plan to motivate and keep good members.

a competitors c employees e shareholders

b consumers d media f suppliers

1 satisfy e
2 understand b
3 consumer d
4 relations f
5 differentiate a
6 development c

6.3 Complete the STEP analysis of France. Look at B opposite to help you.
France is a member of the European Union and as such has trade (1) ... the other members. It has
one of the worst unemployment (2) ... with in Europe and the government is keen to bring this
down.
France has one of the highest (3) ..... rates in Europe (1.9 children per woman) and a large
proportion of French mothers go back to work, reflecting changes in (4) ... roles. Men are almost
as likely as women to do the shopping for the family and take care of the children.
The dominant (5).................... is Catholicism, but there is a large Muslim community. The
religious beliefs do not significantly affect the marketplace, except at Christmas and Easter time
when the demand for Christmas trees and chocolate increases dramatically.
Internet penetration is high: most households own a computer and have high speed internet
access. This has opened up new channels of (6) ... and there are now several internet grocery
stores.
Nearly all teenagers own a mobile phone and they are increasingly using SMS messages
to keep in touch with their peers. Marketing campaigns are beginning to exploit this line
of (7) … by sending SMS messages to their audience.
1 agreements 4 gender 7 communication
2 rates 5 religion
3 birth 6 distribution
EXERCISE 1
Match up the terms on the left with the detinitions on the right:
1. marketing environment
2. market demand for a product
3. marketing programme
4. sales response function
5. market potential
6. company potential
7. market share
8. market forecast
9. sales forecast
10. sales quotas
a. a company's plans
marketing
mix, including product features, price,
expenditure on promotions, the allocation of
resources, and so on
b. a company's sales expressed as a
percentage of the total sales of an industry
c. figures set as goals for a company
division, a product line, a sales team,
individual sales
representatives, etc.
d. the economic situation, and demographic,
technological, political, cultural changes,
and
so on
e. the expected level of company sales based
on a selected marketing plan and an
assumed
marketing environment
f. the limit approached by company demand
as it increases its marketing effort relative to
its competitors
g. the limit approached by market demand,
in a given environment, when additional
marketing expenditure no longer produces a
significant return
h. the market demand that corresponds to a
whole industry's planned level of marketing
expenditure
i. the relationship between sales volume and
a particular element of the marketing mix
j. the total volume that would be bought by a
particular customer group or market
segment
in a particular geographical area and period
of time, in a defined marketing environment
under a defined marketing programme
regarding the
1d 2j 3a 4i 5g 6f 7b 8h 9e 10c

EXERCISE 2
Complete the text using these words:
competitive environment forecast monopoly opportunities potential
resistance returns sensitive share variables volume

In order to analyse market (1)… and to plan their marketing activities, companies have to
measure current demand and (2)… future demand. This will depend on the overall marketing (3)
… which can of course change, but so too can the company's marketing programme.

Market demand is not a single number but a function, which responds, to a finite extent, to
demand-
stimulating marketing expenditure. Some markets are extremely (4) … to marketing expenditure.
The market for many new products, for example, can usually be expanded quite easily. Other
markets cannot, so the level of marketing spending will hardly affect them. Here a company's
marketing effort will be designed to increase its market (5) … rather than the size of the total
market.

In a (6) … market, individual firms with an effective marketing programme can and do increase
their market share. There is, therefore, a company demand function or a sales response function
which forecasts the likely sales (7) … during a specified time period associated with different
possible levels of a marketing-mix element. But of course market (8) …. depends on many
factors in the marketing environment that a company cannot control, such as the general health
of the national economy. Furthermore, the sales response function assumes that other (9) … ,
such as competitors' prices, remain constant, whatever the company spends on marketing. This is
obviously untrue, and so has to be compensated for in calculations.

Marketing expenditure gives first increasing, then diminishing (10). … . , as there tends to be an
upper limit to the total potential demand for any particular product. The easiest sales prospects
are sold first, so that only more difficult ones remain. Competitors are also likely to increase
marketing effort at the same time, so each company will experience increasing sales (11) … If
sales did not stop increasing at the same rate, the firm with the greatest level of marketing effort
would take over the whole industry, and create a natural (12). …
1 opportunities; 2 forecast; 3 environment; 4 sensitive; 5 share; 6 competitive; 7 volume; 8
potential; 9 variables; 10 returns; 11 resistance; 12 monopoly.
EXERCISE 3
Do the following words generally form partnerships with the word market or marketing?
1. ……………………..activities 6 ……………………..mix
2 ……………………..demand 7 ……………………..opportunities
3 ……………………..effort 8 ……………………..potential
4 ……………………..environment 9 ……………………..programme
5 ……………………..expenditure 10 ……………………..share

1 marketing activities; 6 marketing mix;

2 market demand 7 market opportunities;
3 marketing effort; 8 market potential;
4 marketing environment; 9 marketing programme;
5 marketing expenditure; 10 market share.

3.7 EXERCISE 1
Complete the text using these words:
appealing competing developing forecasting dividing
existing minimizing purchasing switching targeting
Market segmentation means (1) … a market into distinct subes of customer with different needs,
according to different variables that can playa role in (2) … decisions. These can include
geographical factors - region, population density (urban, suburban, rural), size of town, and
climate; demographic facrors such as age, sex, family size, or stage in the family life cycle; and
other variables including income, occupation, education, social class, life style, and personality.
If there is only one brand in a market, it is likely to be positioned in the centre, so as to attract the
most consumers possible. ( 3 ) … to all groups from the centre with an product gives a company
the largest potential market, while (4) … inventory, market research and product management
costs. A new competitor can either situate its product next to the (5) … one, in a straightforward
battle for market share, or try to find a corner of the market in order to gain the loyalty of a
consumer group not satisfied with the centre brand.
If there are several brands in the market, they are likely to position themselves fairly evenly
throughout the space and show real differences to match differences in consumer preference. If,
on the other hand, several producers are (6) … for the largest centre segment, new entrants onto
the market will probably find that smaller segments with less competition are more profitable. In
fact, (7) … a particular market segment is often the only realistic strategy for firms with limited
resources, although it can be risky, as the segment might get smaller or even disappear, or be
attacked by a larger competitor.
At the beginning of a product's life cycle, companies often produce only one version, and attempt
to develop demand by undifferentiated marketing, before (8) … to differentiated marketing in the
product's maturity stage. Differentiated marketing involves (9) … several brands, each
positioned in a different segment. This obviously maximizes total sales, but equally increases
R&D, planning, market research, (10) … , production, promotion, administration and inventory
costs.
1 dividing; 2 purchasing; 3 Appealing; 4 minimizing; 5 existing; 6 competing; 7 targeting; 8
switching; 9 developing; 10 forecasting.

3.7 EXERCISE 2
How many of these verbs also exist unchanged as nouns? What are the nouns related to the other
verbs?
appeal battle brand forecast research
consume cost centre manage risk
gain increase compete mature situate
position prefer cycle need switch
segment share develop purchase target

18 of these verbs exist unchanged as nouns. The nouns related to the other verbs are competitor
and competition, consumer and consumption, development, management and manager, maturity,
preference, situation.

3.5 EXERCISE 1
Read the text, and then decide whether the statements on the next page are TRUE or FALSE

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 determining factors are the extent
of the company's resources, the strategies of its competitors, the behaviour 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 even 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 favourite target of market
challengers. They can reduce prices, improve products or services, and so on, but the market
leader and challenger will usually be able to retaliate successfully. A market follower that takes
on a larger company 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 specialised 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 to
benefit from
economies of scale

One possibility for followers is to imitate the leaders' products. The innovator has borne the cost
of developing the new product, distributing it, and making the market aware of its existence. The
follower can clone this product (copy it completely), depending on patents and so on, or
improve,
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 that is large enough to be
profitable and that is likely to grow, that doesn't seem to interest the leader, and which the firm
can
serve effectively. The niche could be a specialised product, a particular group of end-users,
geographical region, the top end of a market, and so on. Of course unless a nicher builds up
immense bcustomer goodwill, 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.

1. If a market leader succeeds in increasing the size of the total market, its competitors benefit.
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.
1 True; 2 True; 3 False; 4 False; 5 True; 6 True; 7 False; 8 False; 9 False; 10 True.

3.5 EXERCISE 2
Eight of the following nouns, all found in the text above, also exist unchanged as verbs. Which
are
they? What are the related verbs from the other ten nouns?
aim design leader
benefit distribution market
challenger extent product
clone follower reduction
competitor increase share
consumer innovation target

aim; benefit; clone; design; increase; market; share; target.

challenge; compete; consume; innovate; lead; distribute; extend; follow; produce; reduce.

3.5 EXERCISE 3
Complete the following collocations from the text:
1. ………………..cycle (para 1)
2. determining………………..(para 1)
3. distribution . . . . . . . . .. (para 4)
4. ………………..line (para 3)
5. sales . ……………….. (para 3)
6.. . . . . . . . . . scale (para 6)
Now translate the highlighted expressions in the text into your own language.
1 product life-cycle; 2 determining factors; 3 distribution channel; 4 product line; 5 sales
promotion; 6 economies of scale.

3.12
Use the following terms to complete the definitions below:
brand line-stretching
product line product elimination
shopping goods line-filling
product convenience goods
product mix speciality goods

1. A ......... is a name (or sometimes a sign, symbol or design) used to identify the goods or
services
of a particular manufacturer, seller or supplier, and to differentiate them from the goods or
services
of competitors.
2. A………is defined by marketers as anything capable of satisfying a need or want (including
services such as a bank loan, a haircut, a meal in a restaurant, or a skiing holiday).
3. A. ... is a group of closely related products, which usually have the same function and are sold
to the same customer groups through the same outlets.
4, A…….. is the set of all the product lines and items offered by a company.
5.... are cheap and simple "low involvement" products which people use regularly and buy
frequently with little effort, without comparing alternatives.
6……. are durable goods with unique characteristics that informed consumers have to go to a
particular store to buy.
7…….. are "high involvement" products for which consumers generally search for information,
evaluate different models, and compare prices, and take time to make a selection.
8........ is the process of withdrawing products from the market when they are no longer profitable
9…..means adding further items in that part of a product range which a line already covers, in
order to compete in competitors' niches, to utilize excess production capacity, and so on.
10....... means lengthening a company's product line, either moving up-market or down-market
in order to reach new customers, to enter growing or more profitable market segments, to react to
competitors' initiatives, and so on.
1 brand; 2 product; 3 product line; 4 product mix; 5 Convenience goods; 6 Speciality goods;
7 Shopping goods; 8 Product elimination; 9 Line-filling; 10 Line-stretching.

3.14 EXERCISE 1
Match up the following words with the underlined words in the text:
additional continual discontinuing expand
goal handling phases present
production stoppages seeking unchanging weaken

Most manufacturing companies have a product mix made up of a number of products, often
divided
into product lines. Since different products are always at different (1) stages of their life cycles,
with growing, (2) stable or declining sales and profitability, and because markets, opportunities
and resources are in (3) constant evolution, companies are always looking to the future, and re-
evaluating their
product mix.
Companies (4) pursuing high market share and market growth generally have long product lines.
Companies whose (5) objective is high profitability will have shorter lines, including only
profitable items. Yet most product lines tend to (6) lengthen over time, as companies produce
variations on. existing items, or add extra items to cover (7) further market segments. Established
brands can be extended by introducing new sizes, flavours, models, and so on.
There are, however, dangers with both line-filling and line-stretching. Adding more items within
the (8) current range of a product line can lead to cannibalization if consumers cannot perceive
the
difference between products, i.e. the new product will just eat into the sales of existing products.
Stretching a line to the lower end of a market will generally (9) dilute a company's image for
quality, and a company at the bottom of a range may not be able to convince dealers and
customers that it can produce quality products for the high end.
Consequently companies occasionally have to take the decision to prune or shorten their product
lines.
Quite simply, a product line is too short if the company could increase profits by adding further
items, and it is too long if they could increase profits by (10) dropping certain items.
Adding items to a product line results in a variety of costs, in design and engineering, carrying
inventories, changing over manufacturing processes, (11) processing orders, transporting goods,
promoting the new items, and so on. Producing fewer items generates savings because it allows
companies to have longer production runs with less (12) downtime because of changeovers, it
requires less plant and equipment, it reduces inventory, it simplifies planning and control, and it
allows more concentrated activity in development, design, selling, after-sales service, and so on.
But of course companies must be careful not to cut loss-leaders from their lines.
1 phases; 2 unchanging; 3 continual; 4 seeking; 5 goal; 6 expand; 7 additional; 8 present; 9
weaken; 10 discontinuing; 11 handling; 12 production stoppages.

3.14 EXERCISE 2
Without looking back at the previous page, complete the spaces in the sentences below:
1. Many companies have a ….consisting of a number of products.
2. These products can have growing, …. or declining sales, depending on where they are in their
….
3. Companies looking for high …. generally have long product lines, while companies seeking
high will have shorter lines.
4. Yet most product lines tend to …. over time, as companies add extra items to
cover more ….
5. …. 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 damage a company's image for . . . . . . .
7. Companies also occasionally .....their product lines.
8. Sometimes you can increase profits by ... certain items.
9. Adding items to a product line results in a variety of ….; for example, you will
need to carry more….….
10. On the contrary, producing fewer items generates….….
11. With fewer products you have longer….….with less ……. caused by changeovers.
12. But of course companies mustn't abandon…….

1 product mix; 2 stable, life cycle; 3 market share, profitability; 4 lengthen, market segments; 5
Line-filling, cannibalization; 6 stretched, quality; 7 prune or shorten; 8 dropping or abandoning;
9 costs, inventories; 10 savings; 11 production runs, downtime; 12 loss, leaders.

3.18
The price of a product should logically cover its production and distribution costs, including
a proportion of the company's fixed costs or (1) . ……. ., such as rent and interest payments,
and leave a small profit. But prices are also influenced by the level of demand, the prices of
(2) . ......... products, and the prices charged by competitors.

High quality products made with expensive (3) …….…….and requiring a lot of craftsmanship
are obviously expensive. They also generally require "prestige pricing" as the consumers in their
(4) …….…….market would not buy them if they thought the price was too low. The markets for
most other goods are generally price (5). , 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 (6) ........ The opposite strategy is market-
penetration,
which means setting as low a price as possible so as to increase sales volume and (7) ..........,
leading
to lower unit production and distribution costs and higher long-run profit. The low price will also
discourage competitors.

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 (8) .
……. 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 (9) …….

Firms in perfectly (10) …….. markets, or homogeneous-product markets, or small firms in an

industry with a strong (11) ……., are likely to use going-rate pricing, 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.
But of course, all prices can be adapted. Most companies offer cash discounts to customers who
pay immediately, and quantity discounts to buyers of large (12) ……. 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 below in order to attract customers
who also buy other goods. Companies are also often obliged 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' reactions if they change their own prices.
1 overheads; 2 substitute; 3 components; 4 target; 5 sensitive; 6 market segments; 7 market
share; 8 plant; 9 monopolist; 10 competitive; 11 market leader; 12 volumes.

3.22 EXERCISE 1
Read the text and then decide which of the three summaries on the next page most fully and
accurately expresses its main ideas.
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 customers, by persuading distributors and retailers to stock
it. But it is also necessary to inform potential consumers of the product's existence, its features,
and its advantages, and to persuade them to try it. There are generally several stages involved in
consumer's decision to buy a new product. A well-known acronym for this process is AIDA,
standing for Attention, Interest, Desire, and Action. According to the familiar "4 P's" formulation
of the marketing mix - product, price, place and promotion - attracting attention, arousing
interest, and persuading the consumer to act are all part of promotion. Marketing textbooks
conventionally distinguish four basic promotional tools: advertising, sales promotion, public
relations, and personal selling, which together make up the marketing communications mix.

For consumer goods, the most important tool is generally advertising. As well as advertising
particular brands, companies also carry out prestige or institutional advertising, designed to build
up the company's name or image. Advertising is often combined with sales promotions, such as
free samples, COupons and competitions.

For industrial goods, particularly specialised ones, the most important tool is often personal
selling. Sales reps can build up relationships with company buyers, and can be very useful in
persuading them to choose a particular product.

The fourth promotional tool is public relations (frequently abbreviated as PR): activities designed
to improve or maintain or protect a company's or a product's image. Public relations includes
things like company publications, most notably the annual report, sponsorship, community
relations programmes, the lobbying of politicians, and the creation of news stories, all designed
to get publicity for the company or a particular product. Unlike paid advertising, publicity is any
(favourable) mention of a company's products that is not paid for, in any medium received by a
company's customers or potential customers. Companies often attempt to place information in
news media to draw attention to a product or service. Quite apart from financial considerations,
the advantage of publicity is that it generally more likely to be read and believed than
advertising. It can have a great impact on public awareness that could not even be achieved by a
massive amount of advertising.
Within the limits of their budget, marketers have to find the optimal communications mix of
advertising, sales promotion, personal selling, and publicity, without neglecting the other
elements of the marketing mix, i.e. the possibility of improving the product, lowering its price, or
distributing it differently.

First Summary
Marketing involves making a good, cheap product and convincing customers to buy it by way of
a good communications mix. For consumer goods, this is generally done with advertising and
sales promotions. For specialised industrial goods, this is done by personal selling. Publicity,
such
as favourable mentions of a company's products in news media, is also useful.
Second Summary
Marketing involves four basic elements: advertising, sales promotion, public relations, and
personal selling. The first three of these are used for consumer goods, the last for industrial
goods.
These tools, along with product improvement, price reductions, and distribution channel
innovations. make un the communications mix.
Third Summary
Marketing involves producing the right product, pricing it attractively, making it available to
potential customers, and promoting it. With consumer goods, this largely involves advertising
and sales promotions. For industrial goods, personal selling is often more important. Publicity is
also a useful tool as it is cheaper and generally more credible than advertising. Marketers have
to combine these tools to create the best possible communications mix.
The only acceptable summary is the third one. First summary: The first sentence is false: good
products are generally not cheap. The third sentence is false: companies often use all four
promotional tools, although the text says that some are more important than others. Second
summary: The first sentence is false: these are the four promotional tools, but they do not make
up the entire domain of marketing. The second sentence is false: the text says that companies
often use all four tools, although advertising and sales promotion are often dominant for
consumer goods, and personal selling for industrial goods. The last sentence is wholly false,
mixing up the marketing mix with the communications mix.

3.22 EXERCISE 2
Match up the following verb-noun collocations from the text:
1. to satisfy 3. to inform
2. to develop 4. to build up
5. to lobby c. consumers
6. to draw d. needs
7. to believe e. politicians
8. to have f. products
a. an impact g. publicity
b. attention h. relationships
1d; 2f; 3c; 4h; 5e; 6b; 7g; 8a.
UNIT 5

1 Look at the steps involved in organizing an advertising campaign and put them in the
correct order.
a. analyse impact e. define target group
b. approve design f. determine the desired response
c. choose the media g. establish message
d. commission ad agency h. place ads
e-g-f-d-c-b-h-a
2 Joys of Germany is an organization in charge of promoting tourism in Germany. One of
their staff is in London to meet Red Arrow, an advertising agency. Listen and find out why
they want to advertise.

o to introduce a new product

o to promote a special price
o to create or maintain awareness for a product
o to remarket a product

Now answer the questions below.

1. According to Joys of Germany, what sort of image does Germany have abroad?
2. What do they say are the stereotypes associated with Germany?
3. What kind of visitors does Joys of Germany want to attract to Germany?
4. Why is it important to design advertising which is specific to a certain country?
1 Boring and traditional.
2 Sausages, the Black Forest, great composers, Oktoberfest, white wines.
3 British people who are not aware of the other side of Germanv.
4 Every country has its own advertising culture and advertising norms are different in each
country.
3 Complete these sentences from the dialogue with the words from the box. Listen again if
necessary.
achieve • appeal • appeal • campaign • create • looking • outside • perspective
1 Tell me what you're … for.
2 But that's why it's important for us to … a new image.
3 We think that someone from … will have a fresh…
4 We want to make sure our ads … to people in the UK.
5 I understand what you're trying to …
6 You need an insider to design an ad … with the maximum …

1 looking 3 outside, perspective 5 achieve

2 create 4 appeal 6 campaign, appeal

4. Look at what some people have said when discussing their ad campaigns. Match the
highlighted words or phrases (1-6) with their synonyms (a-f),
a. change perceptions d. have a rational appeal
b. generate a buzz e. rebrand
c. have an emotional appeal f. reinforce the existing image

1c 2b 3e 4a 5d 6f
6. How do you think advertisements vary between countries? Read the opinions below. Do
any of them surprise you?

1. universal advertising?
2. a change in status of foreign stars?
3. differences in advertising styles?
4. a product that has a different status in different cultures?
1b 2c 3a 4d

7. Two colleagues at Red Arrow are discussing which advertising channels they should use
in the joys of Germany ad campaign. Listen to the dialogue and make a list of the channels
they mention in the table below. Then add one more item to each category.

Print media: magazines, newspapers

Online: banner ads (pop-ups. pop-behinds (or pop-unders))
Outdoor: bus ads (ads on trains and other public transport, billboards. or hoardings)
Other: TV ads (radio ads), postcards (brochures flyers, posters)

8. Match the two parts of the phrases to make collocations from the dialogue.
eye-catching an issue to something
to devote channels
good exposure
to make images
print media
repeat opportunity
traditional sense
1 eye-catching images
2 to devote an issue to something
3 good opportunity
4 to make sense
5 print media
6 repeat exposure
7 traditional channels
Now use the correct form of the collocations above to complete the sentences.
1. Our area newspaper often … to presenting local businesses, and many of … the shopowners
see this as a to advertise.
2. … is essential for getting your message across to customers. If they only see your
advertisement once, they won't remember it.
3. We operate on a very tight budget, so for us it doesn't … to advertise on … such as radio or
television. We focus on online marketing instead.
4. What I like most about our new ad campaign are the…
No one could forget that picture of the penguin and the dog!
5. One of the disadvantages of advertisements in … sometime your advert gets 'lost', for
example when there are several of them on the same page.
1 devotes an issue, good opportunity
2 Repeat exposure
3 make sense, traditional channels
4 eye-catching images
5 print media

11. joys of Germany received the ad from Red Arrow. One of their consultants is now
writing back to request a few changes. Complete the email with words from the box.
actually • all in all • also • as • how about • however • just • otherwise

Dear Tracy,
Thank you very much for the ad. We are very happy with the simple design, … (1) we think we
can use the grid format in many different types of ads. The look is unique without being too
unconventional.
… (2) we're a little concerned about the photograph at the bottom.
Germany is … (3) a popular destination for cyclists already, and so we would rather emphasize
another, undiscovered feature of the country. … (4) a photograph of a fashion designer at work
instead? … (5) ,we like your inclusion of a club photograph, but the image is quite dark. Of
course, so are clubs - but it would be nice to find something a little brighter.
… (6), though, we're very happy with what you've done!
… (7) give me a call if you'd like to discuss the images in more detail.
… (8) I look forward to hearing from you soon.
Regards,
Carsten
1 as 5 Also
2 However 6 All in all
3 actually 7 Just
4 How about 8 Otherwise
33.1 Complete the notes on a media strategy using words from the box. One word can be
used twice. Look at A and B opposite to help you.
core lifestyle media reach
impressions habits objectives research
demographics light plan target

1 objectives 6 Core 11 objectives

2 Media 7 habits 12 reach
3 target 8 research 13 impressions
4 Demographics 9 light
5 Lifestyle 10 plan

33.2 Choose the correct words from the brackets to complete the sentences. Look at A, B
and C opposite to help you.

1 We studied the competitors' flighting (patterns / audience / touchpoints) before selecting a drip
(pattern / burst / strategy) to give constant media pressure throughout the year.
2 (Reach / Cost / Frequency) per thousand is the amount paid to reach 1,000 people. It can be
used to compare the cost effectiveness of different media (planners / pressure / vehicles).
3 A huge media (budget / buyer / mix) is necessary to keep our brand top of (booking / viewers /
mind). It is difficult to stand out with so many competitors airing (commercials /
benchmarks / touchpoints) on television.
4 We invested in new software to help media buyers (approve / optimize / air) our media plan.
5 The advertiser organized a media (schedule / strategy / audit) to assess the effectiveness of our
media buying and planning. Unfortunately, we were less efficient than our competitors.
33.3 Match the two parts of the sentences. Look at C opposite to help you.
1. The media plan must be approved a to the client.
2. We use media research to get insights b on television can be very expensive.
3. The media buyer is accountable c by the client before we make any bookings.
4. This campaign will run d into the viewing habits of our target audience.
5. Airtime e in the national press

1c, 2d, 3a, 4e, 5b

34.1 Match the words and phrases (1-5) to the definitions (a-e). Look at A, B and C
opposite to help you.
1. advertiser-funded programmes
2. audience
3. commercial break
4. daypart
5. free-to-air

a TV channels offered free to users, without subscription

b the population or target group viewing a television programme or an advertisement
c shows which are fully or partly paid for by an advertiser
d a broadcast time period, e.g. daytime: 0900-1630
e the time during which ads are shown between programmes
1c, 2b, 3e, 4d, 5a

34.2 Complete the texts about TV and radio advertising using words from the box. Look at
A and B opposite to help you.
1channels/ 5listeners/ 2programmes/ 4reaching/3starton

TV plays a huge role in our lives and even in these days of 200-plus (1) … ITVI continues to be
the most watched. In 2005, a massive 885 of the 1,000 highest-rating (2) … were shown on
ITVI.
Classic FM is the largest commercial radio (3) … in the UK. (4) … almost 6 million people
every week. Most of the station's (5) … are not connoisseurs of classical music and come to us
because of the way Classic FM makes them feel, regardless of age, sex or income.

34.3 Make word combinations using a word from each box. Some words can be used more
than once. Look at A, B and C opposite and Appendix VIll on page 115 to help you.
commercial game
listening remote
prime soap
radio TV
reality weather
---------------------------------------------------------------------------------------------------------------------
break opera
channel show
control station
forecast time
habits TV

commercial break prime time remote control

commercial channel radio show soap opera
commercial station radio station TV channel
game show reality show TV show
listening habits reality IV weather forecast

35.2 Complete the news report using words from the box. Look at A and B opposite to help
you.
4catching/ 5coverage/ 6graphics/ 1hung/ 3shelters/ 2wrapped

Commuters in Bristol were surprised by sall invasion of out-of-home advertising last

Tuesday. The opening of a new concert hall was announced by huge banners (1) … on
prominent sites around the city. Buses were (2)… in the concert hall's logo and colours. Bus (3)
… were treated to new eye- (4) … interactive ads that lit up and made noises as pedestrians
walked past. A spokesperson for the new concert hall said that the public reaction had been good.
"We got greater (5) …than we had imagined. he added. One commuter said that she had been
pleasantly surprised to find herself walking on floor (6) … instead of the ordinary floor.

36.1 Match the categories of newspapers and magazines (1-6) to the descriptions (af). Look
at A and B opposite and Appendix X on page 117 to help you.
1 daily local freesheet
2 fortnightly special interest
3 monthly children's magazine
4 monthly glossy men's magazine
5 regional daily press
6 weekly national press

a Since October 10, 1870, the Eastern Daily Press has been a source of authoritative comment
for its readers in Norfolk, North Suffolk and East Cambridgeshire, helping form opinion and
encourage debate.
b A leading quality magazine, whether it's fashion, sport, health, humour, politics or music,
every month GQ covers it all with intelligence and imagination.
c The Sunday Review from The Independent is part of the world's best designed newspaper'. It
is renowned for its strong reporting, national news teatures and cultured outlook.
d RAIL is published twice a month in the UK. It is Britain's number one modern rail magazine
for news, features, analysis and opinion. Perfect for the railway enthusiast.
e CY - A brilliant new intelligent and entertaining magazine for 7 to 12-year-old children. Full
of features, activities, puzzles, facts, cartoons and challenges to stimulate and stretch their
minds. 12 issues a year.
f Metro is designed to be read in about 20 minutes and contains bite-sized national and
international news and local information - entertainment previews, listings, weather and
travel. We're completely free and you can pick us up Monday to Friday in 15 cities across the
country.
1f 2d 3e 4b 5a 6c

36.2 Choose the correct word combinations from the brackets to complete the sentences.
There are two possible answers for each question. Look at C opposite to help you.
1 Our (copy deadline is / circulation figures are / readership is) growing year on year.
2 You can book (advertising positions / advertising space / advertising policy) using our secure
online booking system.
3 Please click here to download a PDF version of our (media pack / book space / rate card).
4 Before submitting an ad, please make sure you have read and understood the (technical data /
advertising space / advertising rates).
1 circulation figures are / readership is 3 media pack / rate ci
2 advertising positions / advertising space 4 technical data / advertising rates

37.1 Make word combinations using a word from each box. Then use the combinations to
complete the description of a print job. Look at A, B and C opposite to help you.
graphic OK
job a deadline
long designer
press check
printed completion
proof material
set

Objective
Hotel group Queen's Moat House Hotels UK wanted to attract more families with children in the
three to ten years age group. Moat Houses (1) ... for (2) ... for early spring.
Solution
With no previous history in this sector a brand had to be created from scratch. Our (3) ... created
three medieval characters, Sir Quintin Malpas Hump, his servant Morris, and a dragon called
Henry. The initials of each of the first names being QMH, representing those of Queen's Moat
Houses. The trio have subsequently featured in other (4) ... :comics, paper hats, and posters to
name but a few items - all designed and produced by HOA. After (5) ... from Oueen's Moat
House Hotels we launched a (6) ... to validate the colours.
Result
All of the iterns that HOA produced were very much in demand, to the point that many of them
became collector's items. We are currently working on a summer menu for the hotels. This print
job will have a (7) ... as the previous items have been so popular.

1 set a deadline 4 printed material 7 long run

2 job completion 5 proof OK
3 graphic designer 6 press check

37.2 Replace the underlined words and expressions with alternative words and expressions
from A and C opposite.
1 Printed material that helps sell a product leaves a lasting impression on your clients.
2 You can trust our writing skills to create fantastic-sounding arguments.
3 We will guide and assist you in all stages of the printing work.
4 We print in blue, pink, yellow and black.
5 After the period of checking and amending the print job, the client tells the printer to start
printing.

1 Marketing collateral 4 four colour / full colour / CMYK

2 copywriting 5 final proofing, signs off the job
3 print job

38.1 Choose the correct words from the brackets to complete the articles about branded
content. Look at A and B opposite to help you.
1 BMW have (commissioned / sharing / embedding) contemporary authors to write
downloadable audio books filled with intrigue and suspense. The stories are (boosted / co-
produced / entertained) with the publisher Random House. This is another example of
BMW using (branded entertainment / contract publishing / advergaming) to engage with
consumers.
2 The Coca-Cola Company has teamed up with Smartphones Technologies to deliver Coca-Cola
polar bears and other Coke (branded content / advertorials / captive audience networks) to cell
phones. Smartphones will also create Coca-Cola (off-air events / mobile content / user-generated
content) such as video ringtones and mobile games. Coke has universal brand recognition and is
offering the consumers a brand (experience / value / reference) that will boost the perception of
the brand.
3 (Contract publishing / Product placement / Wireless content) has become commonplace in
movies and TV shows. Now it's coming to comic books - DC Comics is launching a new series
which showcases General Motors' car, the Pontiac Solstice. The hero, known as The Rush', will
be seen driving the car. DC Comics is promoting their title as a place to (engage with /
volunteer / share) young men in their 20s.
1 commissioned, co-produced, branded entertainment
2 branded content, mobile content, experience
3 Product placement, engage with

38.2 Complete the quotes using words from the box. Look at A and C opposite to help you.
airtime connects generated standout
barter exposure share communication
1. Branded entertainment can help a brand achieve media… in a world with increasing media
choice.
2. We establish the price of a 30-second commercial and then calculate the value of the…
we … in exchange for the programme.
3. If your marketing … objectives are to change attitudes and increase awareness, the media …
you get from product placement could be very useful.
User- … content is very effective. It's not expensive for us to produce, the users love to … their
films by uploading them, and it really…with our target.
1 standout 3 communication, exposure
2 airtime, barter 4 generated, share, connects
UNIT 6

2 Stefanie from the manufacturer Herschfeld calls her contact at buyme.com, to complain
about low sales. Listen to their conversation and decide whether the statements below are
TRUE OR FALSE. Correct the false statements.
1 Sales of Herschfeld's goods on buyme.com have been lower than expected.
2 Herschfeld did not offer buyme.com a trade discount.
3 Herschfeld's real-world retailers are upset because buyme.com offers lower prices than they do.
4 Stefanie wants buyme.com to include two images of all the Herschfeld products they sell.
5 She also wants them to remove the prices from Herschfeld's products online.
6 The changes will be on the site later today.
1 True
2 False: Herschfeld offered buyme.com a large trade discount.
3 True
4 True
5 False: She wants them to hide the prices until the products are placed in the shopping cart.
6 False: The changes will be on the site by the end of the week.

3 Stefanie mentions a trade discount in her phone call. What other discounts are there?
Match the discounts below to their definitions.

1. trade discount a. a discount given to buyers purchasing a

large amount
2. bulk discount b. a discount for payment in cash
3. promotional discount c. a reduced price offered on goods sold at the
'wrong' time of the year, such as ski
equipment in the summer
4. cash discount d a discount given to people in a particular
field, for example when doctors pay a reduced
price for medicine
5. professional discount e. a discount for staff
6. employee discount f. a fixed percentage offered to a distributor
7. seasonal discount g. a lower retail price for a special sale

1f 2a 38 4b 5d 6e 7 c

4 Match the types of shop in the box with the definitions (a-h).
chain stores • convenience stores • franchises • high-street shops • hypermarkets
mail-order stores • online stores • outlet stores
a. large no-frills stores located outside the town centre outlet stores …
b. stores selling thorough the Internet…
c. independently-owned shops licensed to trade under the same name…
d. shops located in the centre of town…
e. shops run by a single company with multiple locations around the country…
f. very large stores that sells groceries, clothes, and many other products…
g. stores selling through a catalogue posted to customers…
h. small, independently-owned stores selling essential products…
a. outlet stores d. high-street shops g. mail-order stores
b. online stores e. chain stores h. convenience stores
c. franchises f. hypermarkets

6 Look at this extract from Total Telemarketing's web page and match the headings to the
paragraphs.

Test for success Continual assessment Painstaking planning Know your contacts

TOTAL MARKETING
1 Painstaking planning
At Total Telemarketing, we start the process with what we call a ‘discovery' phase. We build a
clear picture of your business objectives and your market. We then use the information we have
collected to plan your telemarketing strategy. And we make sure that both sides have clear
expectations about the strategy.
2 Test for success
Once we have planned the approach, we test it with a 'pilot' project. This is to check if the
strategy will function for you and for your market. We make sure that our plans integrate
seamlessly with your marketing efforts.
3 Know your contacts
As part of your telemarketing strategy, we develop and maintain a comprehensive database of
contacts and potential clients. This makes sure you have a continuous flow of good quality sales
leads.
4 Continual assessment
The performance of the strategy is regularly reviewed to make sure we are delivering what you
need. Written reports keep you up to date with the success of the approach.

a2 b4 c1 d3

7 Complete the table with the missing verbs and nouns. Check the web page and transcript
in exercise 6 if you need help.
 Verb Noun
to assess 1
2 delivery
3 development
to discover 4
to expect 5
6 maintenance
to perform 7
to succeed 8

1. assessment 4. discovery 7. performance

2. to deliver 5. expectation 8. success
3. to develop 6. to maintain

8 Deborah Waters has just received the following email from Geldsburg, a Swiss
manufacturer
of hand-held barcode scanners. Geldsburg are expanding their services in the UK and are
interested in hiring Total Telemarketing to design a campaign for them. Use the words in
the box to complete the email.
appreciate • developed • interested • priced • reach • require • visited • would like
Dear Ms Waters,
I have just …1 your website, and am…2 in learning more about the services you offer.
Specifically, I …3 to know the cost of your services. Are they time do you support do you need
from us once the campaign has been …4 per call or per hour? Also, how much preparation …5
before you're ready to begin? And finally, how much 6…?
I would …7 the opportunity to discuss these questions further. You can …8 me at +41 80 3858
1905.
Yours sincerely,
Volker Harding
Marketing Assistant
1. visited 4. priced 7. apprecidle
2. interested 5. require 8. reach
3. would like 6. developed

26.1 Label the parts of the distribution chain using words from the box. Look at A opposite
to help you.
air freight /container ship/ delivery service/ a load/rail freight/ road haulage/ warehouse
1 road haulage 4 air freight 7 a load
2 rail freight 5 delivery service
3 container ship 6 warehouse

26.2 Put the steps in the distribution chain in the correct order. Look at A and C opposite
to help you.
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 haulage 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.
Order: 6, 2, 5, 4, 3, 1

26.3 Find six words from A, B and C opposite that can be used to make word combinations
with distribution. Then use some of the combinations to complete the cost controller's
report.

direct distribution distribution chain

indirect distribution distribution costs
distribution channel distribution intermediary

1 Distribution costs
2 distribution chain
3 direct distribution
4 indirect distribution
5 distribution intermediary

(1) … were very high last year so this year we have advised all project managers to use air
freight as little as possible. Another possible source of high costs has been the length of the (2)…
for our product. Although we have been trying to develop (3) … by attracting more customers to
our website and encouraging them to order from us, most of our products get to market through
an (4) …channel. We have been seeking ways to cut down the number of wholesalers and other
types of (5) … We are beginning to deal directly with retailers and in the long run this will
reduce our costs.

29.2 George House is the marketing manager of a local newspaper. Here are some extracts
trom his presentation of a direct marketing campaign. Choose the correct words from the
brackets to complete the sentences. Look at A, B and D opposite to help you.
1 We decided to use (outbound / prospect) telemarketing.
2 We met our subscription target at an acceptable cost per (objection / acquisition).
3 Use (immediate / direct) marketing to increase the number of subscribers to the newspaper.
4 We bought a (qualified / captive) list from a (telemarketing / list) broker.
5 Telemarketing operators received special training to (contact / deal) with objections.
6 We created a new (script / conversion) with our telemarketing firm.
Now say if the sentences refer to the objective, the action plan or the results.

Objective
3 Use direct marketing to increase the number of subscribers to the newspaper.
Action plan
1 We decided to use outbound telemarketing.
4 We bought a qualified list from a list broker.
5 Telemarketing operators received special training to deal with objections.
6 We created a new script with our telemarketing firm.
Results
2 We met our subscription target at an acceptable cost per acquisition.

29.3 Correct the mistakes in the telemarketing script using words and expressions from D
opposite.
1 Hello, my name is John. I'm calling of behalf on Jupiter Software.
2 Do you aware of the company at all?
3 Are you the person charged with this?
4 My call reason is to find out if you are interested in our latest products.
5 Do you available for an appointment?

1 Hello, my name is John. I'm calling on behalf of Jupiter Software.

2 Are you aware of the company at all:
3 Are you the person in charge of this?
4 The reason for my call is to find out if you are interested in our latest products.
5 Are you / Would you be available for an appointment?

30.1 Label the website extracts using words from the box. Look at A opposite to help you.
bundles of items delivery costs payment options product categories

1 payment options 3 product categories

2 delivery costs 4 bundles of items

30.2 Which of the services offered by an online store would be useful in these situations?
Look at A opposite to help you.

1 a wedding list 3 a baby registry

2 next day delivery 4 a wish list
UNIT 7

46.1 Match the two parts of the sentences to complete the job advertisement. Look at A, B
and C opposite to help you.
Director of Corporate Communications
Responsibilities:
1 The Director of Corporate
2 Actively participate in building the company's reputation among internal and external
3 Assist the VP of Corporate Communications in defining the company's values and identifying
4 Develop and maintain
5 Oversee a wide range of media relations activities including preparing media kits;
coordinating media
6 Manage employee communications and manage our in-house
7 Supervise investor

a newsletter and intranet.

b Communications will be responsible for defining and developing the corporate
communications strategy.
c publics.
d relations.
e relationships with journalists.
f key issues.
g tours and writing press releases.
1b,2c,3f,4e,5g,6a,7d

46.2 Complete the web page using words from the box. Look at B and C opposite to help
you.
citizens/committed/media/press/purpose/relations/stakeholders/standards
1 press
2 media
3 purpose
4 committed
5 standards
6 citizens
7 stakeholders
8 relations

47.1 Complete the extracts using words from the box. One word can be used twice. Look at
A
and C opposite to help you.
lobbied/lobby/lobbying/lobbyists
Labour and the nuclear (1) ...
How much influence do (2) ... actually have on government policy?
on both sides of the nuclear debate
Most industries and large organizations use (3) ... , who have contacts with policy-makers.
The (4) ... industry has tried to clean up its image following a series of scandals involving
government ministers and their advisers.
French energy giant ED campaigned to change perceptions of nuclear power.
It has successfully (5) ... ministers to build new plants.
1 lobby 3 lobbyists 5 lobbied
2 lobbyists 4 lobbying

47.2 Match the two parts of the sentences. Look at A and B opposite to help you.
1 Monsanto used a public relations company to promote their
2 The report confirmed that lobbying does influence the political decision-making
3 An opposition party spokesman fears that campaign
4 The oil industry is lobbying government to influence

a policy-makers concerning regulations for exploiting reserves in Antarctica.

b donations from big business influence government policy.
c interests in the EU. The firm organized a visit to the headquarters in the United States.
d process in the UK.
1c, 2d, 3b, 4a

47.3 Choose the correct words from the brackets to complete the report from a pressure
group. Look at B and E opposite to help you
We are continuing our campaign to (1) ... (mobilize / advise / corrupt) public opinion. Following
the (2) ... (fact sheet / rally / outside lobbying) in the town centre, we are organizing a further
letter-writing (3) ... (conference / campaign / release) to keep up pressure on our local politicians.
Our press (4) ... (release / contributions / code) generated three articles in the local newspapers.
We are getting advice on media (5). ... (training / bribing / testimony) so that we will be more
convincing when speaking to the press.
1 mobilize 3 campaign 5 training
2 rally 4 release

49.1 Complete the sentences. Look at A opposite to help you.

1 Accidents, scandals and defective products are common causes of crises.
2 As soon as the crisis hits, activate the company's crisis communication plan
3 One person should be selected as the designated spokesman to represent the company
throughout the crisis. This person should make official statements about the situation.
4 Make sure internal audiences are informed before or at the same time as you go public.
5 Organize media briefings to stop the spread of rumours .
6 Restore consumer confidence by recalling defective products.

49.2 Label each section of the article with a heading from the box, then put the five sections
in the correct order. Look at A opposite to help you.
Going public/Internal audiences/Negative fallout/Rebuilding public confidence/The crisis

1 Internal audiences
As the MD toured the country, employees were kept informed by senior managers and regular
email updates from Mr Puri.
2 Negative fallout
Media coverage was immediate and ver hostile, with 120 mentions on TV news
3 The crisis
In 2004, the Indian Food and Drug Administration announced that worms had been found in two
bars of Cadbury's Dairy Milk chocolate. Although the problem was linked to improper storage at
the distributors, there was an immediate negative impact on sales and the company's reputation
was tarnished.
4 Going public
To minimize the damage, Cadbury set up a media desk and Bharat Puri, Cadbury's MD, went
around the country making statements, meeting reporters and establishing the facts about the
case.
5 Rebuilding public confidence
Within 90 days, Cadbury introduced new packaging to protect against possible infection. They
engaged Indian film star Amitabh Bachchan as brand ambassador. One of the ads showed
Bachchan visiting a Cadbury plant and consuming a bar of chocolate. ‘Consumer confidence in
the product is back,' says Sanjay Purohit, head of marketing for Cadbury India.
32415

49.3 Make word combinations using a word or phrase from each box. Look at A and B
opposite to help you.
apologize/ to customers
establish /the facts
express /concern
make /a statement
minimize /damage
tarnish /the reputation

5.1 Make word combinations using a word from each box. Two words can be used twice.
Look at A and b opposite to helo vou.
animal beneficia
donate money
environmental problems
mutually purcnasing
responsible responsible
social sustainability
socially testing

animal testing
donate money
environmental problems
environmental sustainability
mutually benefcial
responsible purchasing
social problems
socially responsible

5.2 Complete the texts describing examples of CS. Then decide whether the companies are
involved in CRM, green marketing or social marketing. Look at A and B opposite to help
you.
In 2008, we are proud to continue our marketing (1) ... with the Arlette Foundation. We will
promote the (2) ... in our stores and we will sell a range of products displaying the charity's
distinctive logo.
For each product sold, we will (3) ... money to the Arlette Foundation, with a minimum (4) ... of
£250,000. We are committed to being (5) ... responsible.

The Push Play campaign in New Zealand has successtury (6) ... New Zealanders to do more
exercise. The campaign aimed to limit the twin epidemics of obesity and diabetes. (7), ...
problems now affecting countries worldwide.

CASE STUDY:
Woody Pens - Designed for the Environment Instead of making its pens from plastic, Goodkind
Pen Company uses wood scraps from local furniture makers, and its pens are designed to be
refillable.
By caretully designing its product to be eco (8) ... and of high quality, it is mutually (9) ... for the
environment and the consumer. Goodkind has made a product with a super-green profile and, in
the process, enjoys a high level or satistaction from environmentally conscious consumers and
companies with a responsible (10) ... Dolicy. GoodKind embraces environmental ll) ...

1 partnership 5 socially 9 beneficial

2 charity 6 convinced 10 purchasing
3 donate 7 social 11 sustainability
4 donation 8 friendly

a CRM b social marketing c green marketing

5.3 Complete the table with words from A and B opposite and related forms. Put a stress
mark in tront of the stressed sullable in each word. The fist one has been done for you

Noun Adjective Adverb

en'vironment environ'mental environ'mentally

 responsi'bility re'sponsible re'sponsibly

so'ciety 'social 'socially

sustaina'bility su'stainable su'stainably

6 Claudia has written the following announcement for the company website. Read it and
complete it with the words in the box.
funded • help • make • participated • prevent • supporting
Vadi Vision has recently participated in a venture to help people in britain get the eye care they
need. Vadi Vision has funded a travelling eye inspection van which allows people to get a check-
up without having to make an appointment. By supporting Eyes on the eye, Vadi Vision shows
its commitment to helping british eyes. we don't just want to help solve eye problems: we also
want to prevent those problems from happening.

7 Claudia is preparing a press release for a new product. She calls Chris, one of Vadi
Vision's good customers, to ask him for a testimonial. Listen to the telephone conversation.
What quote does Chris give Claudia to use?
Now decide whether the statements which follow are true or false. Correct the false statements.
1. Claudia found out about Chris and how much he likes Vadi Vision's lenses because he wrote
her an email.
2. Chris doesn't want to say that Vadi Vision's lenses are the best because he doesn't want to
make
the other suppliers that he works with unhappy.
3. Many of Eye Care Central's customers have heard about Vadi Vision through their
sponsorship of Eyes on the Eyes.
4. Vadi Vision will be giving away free samples of their lenses at a trade fair next week.

*Our customers often ask for Vadi Vision lenses by name.

1 False: He wrote an email to the rep, who sent the email on to Claudia.
2 True
3 False: The customers have heard about Vadi Vision through their advert.
4 True

8 Match the two parts to make sentences from the dialogue. Listen again if necessary.
 1. I'm hoping a. your help.

2. I'm writing a press release b. to include.

3. Our customer services rep forwarded c. you can help me.

4. This would be a great quote d. me your email.

5. I was wondering e. by our stand.

6. Thanks so much for f. for our new ultra-hard lenses.

7. Make sure you come g. if you would mind us using it?

1c,2f,3d,4b,5g,6a,7e

9 Claudia has written a press release for the new lenses. Put the parts of the press release in
the right order.

a. Contact: Claudia Felber, claudia.felber@vadivision.com

Telephone: + 41 20 759 29 55
Fax: + 41 20 759 29 60
www.vadivision.com

b. The Diamond Line ultra-hard lens is suitable for glasses wearers with single and
bifocal vision problems. And not only are the lenses ultra-hard, but they're also extra-
thin. This makes them especially attractive for those glasses wearers requiring high-
prescription lenses.

c. Eyecare professionals interested in information and samples should contact their

Vadi Vision representative or send an email inquiry to diamondline@vadivision.com.
d. Vadi Vision is one of the best known and most respected eyewear companies in Europe.
As Chris Baker of Eye Care Central in London testifies: 'Our customers often ask for
Vadi Vision lenses by name.'

e. Zürich, 12 March 20..

f. Vadi Vision is pleased to announce the release of a new ultra-hard lens. This lens is
more durable than any other product on the market.
 g. FOR IMMEDIATE RELEASE

h. Vadi Vision releases a new ultra-hard lens

1g 2e 3a 4h 5f 6b 7d 8c

10 Claudia has prepared a holiday letter to send out to Vadi Vision's distributors and
retailers.
Complete the sentences with words from the box.
appreciate • committed • eventful • greetings • launch • partnership • successful• welcome

Dear [Name goes here],

We at Vadi Vision want to pass on our holiday greetings to you.
This year has been an eventful one for Vadi Vision.
We made news in Britain with our Eyes on the Eyes campaign to encourage eye health. The
campaign has been so successful that we plan to launch similar efforts in other European
countries.
We have made waves with our new Diamond Line series of lenses.
These ultra-hard lenses are becoming especially popular among athletes, who appreciate the
lenses' durability.
This year has also seen some changes at Vadi Vision. As you know, our CEO, John Vadi,
recently left the company on his well-earned retirement.
We would like to welcome Gilda Greenwald to our team as the new CEO.
Despite these changes, Vadi Vision remains committed to eye care.
We have greatly enjoyed working together with you over the past year, and look forward to a
continued partnership in the coming year.
With all the very best for the New Year,
Vadi Vision

48.1 Choose the correct words from the brackets to complete the sentences. Look at A
opposite to help you.
1 Sports (sponsor / sponsorship / sponsee / sponsoring) spending is set to rise next year.
2 The England football team sold their (sponsor / sponsorship / sponsee / sponsoring) rights
for the first time in 1994.
3 Today Nationwide, a British building society, is the official (sponsor / sponsorship / sponsee /
sponsoring) of the English Football Association, the FA.
4 Nationwide began (sponsor / sponsorship / sponsee / sponsoring) the FA in 1999.
5 Nationwide is one of several partners (sponsor / sponsorship / sponsee / sponsoring) the
England team.
6 Nationwide is a joint (sponsor / sponsorship / sponsee / sponsoring) of the England team.
7 Nationwide pays (sponsor / sponsorship / sponsee / sponsoring) fees to the FA.
8 The (sponsor / sponsorship / sponsee / sponsoring) deal includes branding on the training
kits and advertising at home games.
9 In 2003 Nationwide announced it would be the exclusive (sponsor / sponsorship / sponsee /
sponsoring) of women's football.
10 The Women's FA Cup, the (sponsor / sponsorship / sponsee / sponsoring), receives funding
each year from Nationwide.

48.2 Complete the article using words from the box. Look at A opposite to help you.
deal/impact/leveraged/long-standing/relationships/risk

Boxfield Toys to Stop Sponsorship (1) deal with Barbara Gasson

As a result of comments made by Barbara Gasson, the children's illustrator, on her blog site,
Boxfield Toys has severed ali (2) relationships , with Ms Gasson. A spokesperson from the
company said 'We regret having to terminate our (3) long-standing relationship with Ms Gasson.'
Although Boxfield has (4) leveraged Ms Gasson's qualities over the years, they may now be
concerned about negative (5) impact on their brand. The (6) risk factors involved with Ms
Gasson may be too high for this brand.

48.3 Read the texts about British companies and decide if they are examples of art
sponsorship, educational sponsorship, or cause related sponsorship. Look at B opposite to
help you.
1. Sainsbury's will support Red Nose Day and Sport Relief campaigns as part of a new deal. In
March this year Sainsbury's sold over 4 million red noses and donated over £6.5 million to
the charity.
2. In the UK Tesco is partnering I CAN, a UK charity that helps children with speech and
language difficulties, to sponsor the Chatterbox Challenge. Children across the UK choose
a song or story while family and friends sponsor them to perform it aloud. This year,
Chatterbox Challenge raised over €150,000 for I CAN.
3. The BT Series is a unique initiative for Tate Online which lets you explore works by selected
artists and ask about their work. As exclusive sponsor of Tate Online, BT provides Tate with
creative design services and technical support.

1 cause related sponsorship

2 educational sponsorship / cause related sponsorship
3 art sponsorship

50.2 Choose the correct words from the brackets to complete the text. Look at A opposite
and 50.1 above to help you.
Should You (1) ……. (Blog / Blogging / Blogger) in Your Business?
Although (2) ……. (blog / blogging / blogger) did not begin as a business activity, it did not take
the business sector very long to begin using (3)... (blogs / bloggings/ bloggers) too. As a
marketing professional, you may wonder if you should begin a company (4) … (blog / blogging /
blogger) or not. Here are some ideas about business (5) .... (blog / blogging / blogger) that may
help you make up your mind.
Business (6) ... (blog / blogging / blogger) is rapidly spreading throughout companies with an
online presence. Every company with any Internet presence should consider the idea of starting a
company (7) ... (blog / blogging / blogger).
(8) … ( blog / blogging / blogger) may be free, but you still need an employee to write the blog.
Finding the right (9) ... (blog / blogging / blogger) is often the most difficult part.
1 Blog 4 blog 7 blog
2 blogging 5 blogging 8 Blogging
3 blogs 6 blogging 9 blogger

50.3 Complete the rest of the blog extract from 50.2 above. Look at A opposite to help you.
 Don't start blogging unless you are willing to be completely honest to your (1) ...
 Think carefully before you let people post (2) ... to your blog entries. Unfortunately, you
may find that some readers (3) ... derogatory comments or ask difficult questions.
 Keep in mind that a blog entry doesn't have a specified length. Include (4) ... to other
blogs, articles or pages in your website to illustrate a point.
 Search engines index blogs, so it will show up in search results and people will find it on
their own. These (5) …. links drive traffic and brand awareness.
 Finally, if you are thinking about joining the (6) ... never forget that it is just another
business tool. Plan a blog carefully and, with any luck, word will spread and you will see
more traffic to your website.

1 readers 3 post 5 inbound

2 comments 4 links 6 blogosphere
UNIT 8
Do you make natural cosmetics as well? → No, we don't. We just focus on medications.
Would it be possible to be put on your mailing list? → Yes, certainly. If you just give me your
card, I'll be happy to to add your name.
Do you have some information I can take away? → Yes, let me give you one of our brochures.
It lists the points we've just discussed., I'm just browsing. → Well, just let me know if you need
anything.
Excuse me, are these memory sticks to take away → They are indeed.
They've got our URL printed on them, so do have a look at our website too when you get a
chance. Or do you have any questions for me now?, I'd like to discuss this with my boos first
How can I reach you? → Here's my card. Feel free to call or email me.
What does your company? → We use natural sources to create effective medications.

additional audience → extra visitors

prospects → potential customers
key publications → the most important magazines and newspapers
high-profile → well-known
editorial coverage → publicity in magazine or newspaper articles
added benefits → extra advantages
Exhibition stand → the place where you show your products at a trade fair
co-located → in the same place

Hello everyone. I'd like to thank you for joining us today. As you probably know, Natural
Solutions has been making great progress. Our innovative plant-based antibiotics have recently
been approved for distribution. And we have a new line of cold medication that is expected to do
very well. I hope you'll help yourselves to the leaflets and samples at the back. Please feel free to
approach me if you'd like to set up a personal product presentation. Remember , the best solution
is a natural solution, and I'm sure we have a solution for you!

1. What is the full name of this international trade fair? International Biotech & Lab Automation
Europe
2. How many benefits will a company get if they participate in this trade fair? four
3. What marketing campaign are the organizers planning? direct mail, email, web marketing,
advertising and extensive editorial coverage
4. What are the formats in which the company and/or product profile will be published? Print
and web
5. Who will receive the guide before the events? Customers and prospects
6. How much will press releases cost? Nothing

One of the customer events that Natural Solutions wants to hold during the trade fair is a
reception at a nearby restaurant. Kirstin asks her assistant, Michael May, to write the
English version of the invitation to the event. Complete the invitation with the word in the
dropdown menu.
To celebrate the [introduction] of our new [line] of antibiotics, we would like to invite you to
[attend] a reception on Friday, 25 March at 1PM.
The event will take [place] at "the Lemon Tree", just a short [walk] away from the International
Biotech Europe Fair. Refreshment will be [served]. If you are able to [join] us, please let us
know by fax or email.
may@natural-solutions.com
The fair is over and Kirstin and Michael are back in the office. Kirstin has written an
internal email reporting on the trade fair. First, choose the sentence halves below to form
complete sentences.
a. And thanks to Gina for convincing ___
Hyperdrugs that our products are right for them!
b. I'll be coming around to departments ___
to pass on the information I picked up.
c. Finally, thank you, Michael, ___
for all of your help in preparing for the fair.
d. We also learned some interesting facts ___
about what the competition are doing.
e. We now have to confirmed orders, ___
as well as several promising leads.
f. Hi everyone,
You'll be pleased hear ___
that we made lots of good contacts in London this weekend.
Then put the sentences in the correct order.
1.f 2.e 3.d 4.b 5.c 6.a

Match the phrases from the brochure to the definitions.

1 exhibition stand. d the place where you show your products at a trade fair
2 high-profile. f well known.
3 added benefits. a extra advantages
4 editorial coverage. g publicity in magazine or newspaper articles
5 prospects. c potential customers
6 key publications. h the most important magazines and newspapers
7 additional audience. e extra visitors
8 co-located. b in the same place

Choose the correct words from the brackets to complete the report on Bob the Builder
merchandising. Look at A, B and D opposite to help you.
Bob the Builder's enormous financial success is due only in part to the TV programme.
The (1) …(merchant / deal / core brand) has been used to create pyjamas, party hats and plates.
It's important to create something that will sell (2)… (core brands / corporate gifts/merchandise)
that parents are happy to buy. Bob the Builder items have also been used as promotional (3)…
(gifts / successes / brands) in connection with other brands. This type of (4)… (spin-offs /
sponsors / cross-marketing) has generated profit for all the brands involved.

Put the descriptions (1-3) in the correct order and then match them to the pictures (a-c).
Look at B opposite to help you.
1c This on-pack offer really captures the spirit of the promoted brand.
2a There is a small freebie inside the pack. This kind of promotional gift is ideal for children.
3b These promotional items are an off-the-shelf solution for your corporate gifts.

Make word combinations using words from the box. Then use the word combinations to
complete the text below. Look at B, C and D opposite to help you.
commercial/deals/licensing/partners/products/team
David Beckham started his career as a footballer. He has signed (1) licensing deals
all over the world and has made a fortune for himself and his (2) commercial partners
When he started playing for Real Madrid, sales of (3) team products such as football shirts rose
rapidly.

Make word combinations with trade show using words from A and B opposite. Then use
the combinations to complete the sentences below.
I think we should try to interact directly with our customers. We should find out about a pulic
trade show that anyone can go to.
2 You mean a horizontal trade show that has everything for the house and home decoration?
3 Yes, like the Home and House Show. But it looks expensive. We'll have to reuse the trade
show display from last year.
4 OK, and how about a vertical trade show. where we can meet other people in the candle-
making sector? Last year's Candle-makers' Fair was very useful.

Make word combinations using a word or phrase from each box. One phrase can be used
twice. Look at A and B opposite to help you. ( ghép các từ thành từ có nghĩa )
allocate/attend/book/increase/participate in/trade shows/stand placement/booth traffic/a stand
- allocate stand placement
- attend trade shows
- book a stand
- increase booth traffic
- participate in trade shows

Complete the article using words from the box. Then decide if the statements (a-c) below
are true or false. Look at A and B opposite to help you.
Network/seminars/showcase/stands/trade/venue
The Wine Institute organizes wine(1) trade shows and conducts educational(2) seminars and
visitor programs to acquaint media and trade representatives with California wines. California
vintners will (3) showcase a record 128 California wine brands at the world's largest wine trade
show. The (4) venue for VINEXPO is always Bordeaux, France. VINEXPO attracts 50,000
buyers, industry trade representatives and journalists from 120 countries. In addition to preparing
their own (5) stands, California vintners will sponsor a restaurant at VINEXPO: the California
Grill. California wineries use the grill to (6) network with important clients and show them
California cuisine and California wines while conducting major business.
a Vinexpo is a relatively small public trade show. False
b The event is a good place to meet buyers and journalists. True
c Californian vintners don't have stands at this event. False

49.1 Complete the sentences. Look at A opposite to help you.

1 Accidents, scandals and defective products are common causes of crises.
2 As soon as the crisis hits, activate the company's crisis communication plan
3 One person should be selected as the designated spokesman to represent the company
throughout the crisis. This person should make official statements about the situation.
4 Make sure internal audiences are informed before or at the same time as you go public.
5 Organize media briefings to stop the spread of rumours .
6 Restore consumer confidence by recalling defective products.
UNIT 9

Industrial Marketing
Quite apart from consumer markets, in which consumers buy products for direct consumption,
there exists an enormous producer or business or industrial market consisting of all the
individuals, businesses and institutions which acquire goods and services that are used in the
production of other goods, or in the supply of services. The industrial market is actually larger
than the consumer market, because producers and suppliers of services require capital equipment
such as buildings and machines, raw materials and manufactured parts and components, supplies
such as energy, pens and paper, and services from cleaning to management consulting. All of
these have to be marketed, and there is more industrial than consumer marketing, although few
ordinary consumers realize this because they are seldom exposed to it.
The buying process for industrial goods is different from that used for consumer goods. The
customer base - the number of buyers - is generally small, because many industries are
dominated by only two or three large companies. The buyers of industrial goods are less easy to
persuade than most ordinary consumers, because they are well-trained professionals who know
exactly what they are doing. The sales representatives working for industrial marketers have to
be equally well-trained and competent, because in this area, personal selling is generally more
important than advertising, sales promotion and publicity.

The demand for industrial goods is a derived demand, because it depends on the demand for the
consumer goods sold by the industrial producers. Furthermore, demand is largely inelastic,
because companies are unlikely to buy larger quantities and increase their inventories in response
to a temporary sales promotion. This is especially true of companies working with a just-in-time
system, which are interested in high quality, frequent and reliable delivery and long-term
relationships, rather than occasional price reductions.

The demand for capital goods such as plant and equipment is also more volatile than that of
consumer goods, because companies only make large expenditures on new production capacity
when consumer demand is increasing, and usually stop all capital investments if consumers
demand stops growing. This pattern of investment is often described as the most important cause
of the business cycle.
Industrial marketers have to understand who is responsible for buying in companies and
institutions, and what criteria determine their choices, because industrial customers often develop
close relations with sellers. Companies often require products customized to their own
specifications, so sellers are expected to understand a lot of technical details. Yet even long-term
relationships are no guarantee of future sales, because industrial and institutional customers are
often required to invite sealed bids and to give the contract to the lowest quotation or tender.

TRUE/FALSE TRUE/FALSE

According to the text, are the following statements TRUE or FALSE?

1. The marketers of industrial goods frequently target a small number of customers. TRUE
2. Advertising, sales promotion and publicity are unimportant in industrial marketing. FALSE
3. In industrial marketing, there is often a direct relationship between price and the quantity sold.
FALSE
4. The demand for industrial goods usually rises and falls along with consumer demand. TRUE
5. Just-in-time producers are not interested in low-cost suppliers. FALSE
6. The demand for capital goods is often cyclical. TRUE
7. Industrial marketers often have to produce a unique product for a single customer. TRUE
8. In industrial markets, sellers often have to offer a price without knowing what prices their
competitors are bidding. TRUE

1. All the components and raw materials that make up manufactured products have to be
marketed.

2. Companies only invest in capital equipment when demand is increasing.

3. Manufacturers of specialised industrial goods usually have a fairly small customer base .

4. In industrial marketing, the most important promotional tool is often personal selling.

5. The demand for industrial goods is derived from the underlying demand for consumer good .
6. The demand for industrial goods is generally… inelastic ,as manufacturers are unlikely to
respond to sales promotions.
7. The level of investment in production capacity is an important cause of changes in the
business cycle .
8. Many manufacturers require unique machines that are customized specifically for them .
9. Companies often invite bids to build factories or supply machines, and give the contract to the
lowest tender.
10. When you make a sealed bid, you don't know what your competitors are offering.

TEST
an own brand : a brand that is made exclusively for the retailer (e.g. Vinmart, BigC, Saigon
Coop, etc.) that sells it; also know as an own-labeled brand or a private label brand.
a brand leader : the best-selling brand in a particular market
a no brand : a product that doesn't have a brand associated with it; also known as a generic brand
the flagship brand : the brand for which a business is best known, and which represents its image
most appropriately
co-branding : two brands working together to create a new product - ex: Intel Corporation and
Apple Computers Inc.
Brand platform : consists of the brand vision, brand mission, brand vlues, brand personality,
brand tone of voice
brand mission : how to take action on the brand vision
brand personality : the human characteristics associated with the brand
brand tone of voice : the language the brand uses to convey its values (serious, humorous, ...)
Brand management : the application of marketing techniques to a brand
TEST
Market leader : a firm with a much larger market share than its competitors in a market
Market challenger : a company that is number two in an industry, but which would like to
become number one; ex: Nike vs Adidas, Pepsi vs Coke
Market follower : a smaller company in an industry, more or less content with its existing market
share
Market nichers : small, specialised companies, which target segments within segments
Monopoly : A market in which one single producer can fix an artificially high price
Oligopoly : A market dominated by a few large suppliers, and which it is hard for new
companies to break into
Cartel : formed by a group of companies which chose to collaborate by sharing out markets, co-
ordinating their prices, and so on
Dominant-firm oligopoly : A situation in which the market leader can determine the price that its
competitors can charge
Natural monopoly : a market in which it is normal to have only one supplier - e.g. utilities such
as water and sweage, gas, electricity