globalisation of markets', but the idea that there are more similarities between

cultures than differences goes back to the popular image of the 'global village'.

The Best in the Business

2 It was Marlboro in the __________ who invited us to "come to where the

flavor is," Coca-Cola who sang in the __________ . "I'd like to buy the world a
Coke," and British Airways who announced in the __________ that they were "the
world's favourite airline". Their universally recognised TV and cinema
advertisements were among the first of a new breed of glamorous global ads, and
the agencies who created their award-winning commercials are today widely
regarded as the best in the business.

An Advertising Sensation

3 The very first global commercial Saatchi & Saatchi ran for BA featured
Manhattan Island being flown across the Atlantic. The ad was __________
seconds long with no voice-over at all for the first __________. As BA's inflight
magazine put it, "The effect was breathtaking; words were barely needed; the
pictures said it all." When the voice-over finally cut in, the message was
devastatingly simple: "Every year, we fly more people across the Atlantic than the
entire population of Manhattan." The commercial was screened in __________
countries and caused a sensation in the industry.

Ads as Art

4 Only a handful of worldwide advertising networks have the capacity to

take on the world's biggest brands. In fact, this small group of top agencies has
been responsible for some of the most successful advertising slogans of the last
__________ years - slogans like Coke's "Just for the taste of it" and Nike's "Just
do it," IBM's "Think" and Apple's "Think different". It was the Canadian
communications theorist Marshall McLuhan who claimed that "advertising is the
greatest art form of the __________ century" and in the case of one product, this is
almost literally true. Designed by the founder of Pop Art Andy Warhol, the
Absolut vodka bottle is as much of a __________ century icon as the Nike swoosh.


 Minimalist Approach

5 So what is it that makes global advertising so compelling and memorable?

The answer lies partly in reducing the message to an absolute minimum, in letting
pictures, music and a strong, simply-worded concept take the place of product
description. Indeed, brand image is often reinforced independently of any real
consideration of the product at all. It needs to be. When low-cost no-frills airlines
will get you from A to B as quickly as the major carriers, and cheap PC-
compatibles offer almost as many features as top-of-the-range IBMs, your image is
all you have left to compete on. So Singapore Airlines promises us "a great way to
fly" and IBM offers "solutions for a small planet".

Think Big

6 The beauty or a good global advertising campaign is that it can be used to

great effect over a period or many years and still seem fresh. Global image making,
however, is a lengthy, costly and, to some extent, risky business. Bringing together
the best creative talent in the advertising industry usually ends up costing the earth.
These days there is growing opposition to the power of the world's biggest brand
names. And industry critics of global ads point out that for the majority of brands,
global advertising is not the answer. Though the world is getting smaller by the
day, few companies, even multinationals, have true global status and most 'mass-
marketed' products actually sell to fewer than __________ per cent of the masses.
But those __________ per cent can be spread right across the planet and to reach
them you've sometimes no option but to 'think big'. [1, 88-89]

VOCABULARY LIST
54. to require 5. нуждаться (в чем-л.), требовать (чего-л.)
The house requires painting. – Дом нужно
покрасить.
It requires careful consideration. – Это требует
тщательного рассмотрения.
The project will require a great amount of time and
money. – Проект потребует большого количества
времени и денег.
Campbell's broken leg will probably require surgery. –
Возможно Кемпбелe потребуется операция на
сломанной ноге.


 6. требовать, приказывать
You are required to obey. – Ты обязан подчиниться. /
От вас требуют подчинения.
We require our secretary to be on time. – Мы требуем
от нашего секретаря чтобы он приходил во время.
Regulations require that students attend at least 90%
of the lectures. – В соответствии с правилами
студенты обязаны посетить не менее 90%
занятий.

55. to claim зд. утверждать, заявлять (что-л.)

He claimed that he’d been cheated. – Он заявил, что
его одурачили.
The girls claim to have seen the fairies. – Девушки
утверждают, что видели фей.

56. to promote 1. продвигать; повышать в чине или звании

If I am not promoted within the next two years I am
going to change jobs. – Если меня не повысят в
течение двух ближайших лет, я поменяю работу.

2. рекламировать; содействовать продаже какого-л.

товара
She's in London to promote her new book. – Она
приехала в Лондон, чтобы рекламировать свою
новую книгу.

promotion 1. продвижение по службе, повышение в должности;

She was aiming for a promotion. – Она стремилась
получить повышение.
He missed a good opportunity for a promotion. – Он
упустил хороший шанс на продвижение по службе.

2. реклама; рекламная кампания

promotion material — рекламные материалы

promotional рекламный
promotional campaign — рекламная кампания
promotional sale — рекламная (рас)продажа
promotional booklet — рекламная брошюра

57. to challenge 1. вызывать (на дуэль и т. п.); бросать вызов

to challenge smb. to a duel — вызвать кого-л. на
дуэль


 2. сомневаться; отрицать; оспаривать, подвергать
сомнению
As a temporary measure, I do not presume to challenge
its wisdom. – Я не осмеливаюсь ставить под
сомнение разумность этого шага в качестве
временной меры.
She challenged his claims – Она оспорила его
претензии.

3. требовать (усилий)
The job doesn't really challenge her. – На этой
работе она не может как следует проявить себя.

a challenge сложная задача; проблема; испытание, проба

(своих) сил; напряжение сил; нечто требующее
мужества, труда и т. п.
real challenge — настоящий вызов, истинное
испытание
Are you man enough to meet the challenge? – По
плечу ли вам эта задача?
to face a challenge – столкнутся с проблемой

challenging сложный, требующий напряжения (сил);

испытывающий (способности, стойкость)
challenging game [job] — игра [работа],
требующая отдачи всех сил
to solve challenging problems — решать сложные
проблемы
a challenging question — трудный вопрос

58. to appeal to (to) привлекать, интересовать; волновать, трогать

sb The idea of working abroad really appeals to me. –
Идея работы за границей действительно
привлекает меня.

appeal noun привлекательность, притягательность, очарование

The programme has a very wide appeal. – Программа
пользуется широкой популярностью.

59. to regard 1. рассматривать, считать

I regard it as my duty. – Я считаю это своим
долгом.

2. уважать
I regard him so much, for we have been like brothers. –


 Я его глубоко уважаю, ведь он мне почти как брат.
He is highly regarded as a mechanic. – Его очень
ценят как хорошего механика.

regard noun уважение, расположение

to hold smb. in high [low] regard — быть высокого
[невысокого] мнения о ком-л.
to show regard for smb. — проявлять уважение к
кому-л.

with regard to With regard to your invoice, it will be paid as soon as

possible. – Что касается выставленного Вами
счета, он будет оплачен в ближайшее время.

regards My husband sends his regards. – Мой муж передает

привет.

60. a feature особенность, характерная черта; признак, свойство

characteristic feature — характерная особенность
notable / noteworthy feature — выдающаяся
особенность
optional feature — дополнительная возможность
It’s a must-be feature for me. – Для меня это
необходимая функция.
One of the distinguishing features of modern banking is
its dependence on computers. – Одной из
отличительных черт современной банковской
детельности является ее зависимость от
компьтерных технологий.

61. an image лицо, престиж, репутация, общественное мнение;

«имидж»
brand image — имидж торговой марки
to project an image — создавать образ
The company is working hard on improving its image.
– Компания пытается улучшить свою репутацию.
The party has to project the right image. – Партия
должна создавать свой правильный образ.


 VOCABULARY PRACTICE

Ex. 8 → Explain the meaning of the following expressions from the texts of the
unit. Use a dictionary if necessary.

x the global village

x to cost the earth
x to think big

Ex. 9 → Look back at the article. Find the expressions which mean:

1. small, specialised markets (§1 ………………………………)

2. a new type (§2 ………………………………)
3. considered by many (§2 ………………………………)
4. the voice of an unseen speaker in a commercial
(§3 ………………………………)
5. extremely impressive or beautiful (§3 ………………………………)
6. created a lot of interest and excitement (§3 ………………………………)
7. a small number (§4 ………………………………)
8. a famous symbol (§4 ………………………………)
9. extremely interesting (§5 ………………………………)
10. basic, offering no extra features (§5 ………………………………)
11. with excellent results (§6 ………………………………)
12. costing a lot of money (§6 ………………………………)
[1, 89]

Ex. 10 → The following verbs both form strong word partnerships with the
word commercial. Find ❸ more in the article you have just read.

produce
A COMMERCIAL
devise

What is the difference between a commercial and an advertisement?


Ex. 11 → All the nouns in each list below form strong word partnerships with
the words in capitals. Three nouns are in the wrong list. Which three? Which
list should they be in?

MARKETING ADVERTISING MARKET

plan budget leader
strategy agency trend
expenditure forces share
slogan costs segmentation
mix campaign drive
[1, 90]

Ex. 12 → Now complete the three paragraphs below using the words from the
following list.

segmentation costs trends

expenditure shown campaign
mix run produce
slogans drive leaders
agencies

The total marketing (1) ………… includes service or product range, pricing
policy, promotional methods and distribution channels, but for 'world brands' who
aim to be market (2) ………… a large part of marketing (3) ………… goes on
television advertising. When global companies organize a marketing (4) …………
a concerted effort is made to promote and sell more of their products, and this will
often involve an expensive advertising (5) ………… .
Marketers generally tend to divide markets up into separate groups
according to geographical area, income bracket and so on. This is known as market
(6) ………… . But a global marketing policy will obviously take much less
account of local market (7) ………… and concentrate instead on what different
markets have in common.
As global commercials are (8) ………… on TY in many different countries,
the advertising (9) ………… tend to be high and obviously only the biggest
advertising (10) ………… can (11) ………… commercials on such a global scale.
Fortunately, global commercials like those for Marlboro cigarettes and BA can be
(12) ………… for many years without looking out of date, and advertising
(13) ………… , such as "the world's favourite airline" and "Just do it", will always
be universally recognised. [1, 90]


Ex. 13 → Complete the presentation extract below by matching the two halves
of each sentence. Referring back to the article Going Global will help you.

a) the consumer in our home market

without making the product too
British for European tastes?
1. First of all, let me say that we look
b) our brand in the minds of the
forward to facing ...
British consumer.
2. But first, we have to firmly establish
c) product every time.
...
d) our brand image with strong
3. However, as you know, in global
visuals and background music and
terms Britain is little more than a
the minimum of product
niche ...
information.
4. So the question really is: how are we
e) a global marketing strategy.
going to make sure we appeal to ...
f) our message across directly and
5. Well, I think what the whole
simply and in a way that will cross
campaign requires is ...
cultural boundaries.
6. We need to be running ...
g) the challenge of breaking into
7. What I'm saying is that we have to get
foreign markets with this product
...
h) market for our kind of product and
8. In other words, the commercial itself
demand is always going to be much
should be reinforcing ...
greater overseas.
9. Remember, image outsells ...
i) creative talent from outside, but in
10. Now, obviously, this will mean
the long term creating a Euro-ad
bringing in ...
will actually save us money.
j) commercials that will work well in
Britain but which we can use again
at a later stage in Europe.
[1, 91]
Ex. 14 → Complete the following quotations on advertising:

1. Never mind the gap in the ..., is there a market in the ...?
2. I know half the money I spend on advertising is wasted. The trouble is I
don’t know ...
3. The best ... is a good product.
4. You can tell the ideals of a nation by its . . .
5. All publicity is ... publicity.

Do you agree? Do you have a favourite quote of your own?

[1, 91]


Ex. 15 → Find the one word in each sentence which does not fit. Some of the
words appeared in the article Going Global.

5. It is a reasonably / fairly / quite / highly cost-effective strategy.

6. It is comprehensively / widely / universally / generally regarded as the best
TV commercial ever.
7. It is a(n) well / lavishly / superbly / exceptionally produced commercial.
8. The message is powerfully / highly / clearly / vividly expressed. [1,92]

Ex. 16 → What eight-letter word will complete all the following expressions?
Two possible words appeared in the article.

•lengthy
•costly

It is a •risky
•tricky
•shady

Which of the above expressions refers to:

x something expensive? x something illegal?

x something difficult or delicate? x something that takes a long time?
x something uncertain or dangerous?

Ex. 17 → One way of forming verbs meaning “to make like this” is to add -ize
(or -ise) to the end of the noun or adjective. You can make a lot of verbs in
this way from words you already know. Complete the following. The first one
has been done for you as an example.

to make your activities more global → globalize

to make a national company private →
to make something more sensational →
to make something more standard →
to make something more popular →
to be (too) intellectual about something →
to put something into a category →
to introduce computers →
to make something legal →
to make a (too) general statement →
to make something more commercial →
to make something more modern →
to put something on television →


Ex. 18 → Complete the collocations below with the following verbs and nouns.

verbs nouns
run brand
launch audience
make image
sponsor

1. to target an ………… 5. to project an …………

2. to ………… a new campaign 6. to endorse a …………
3. to ………… an advert in the press 7. to ………… a commercial
4. to ………… a sports event

Now complete the text with the appropriate form of the collocations above.
Signing a celebrity and using their star status to (1) endorse a brand is one of
the standard advertising techniques. Tag Heuer, the watchmaker which
(2) ……………… a number of ………………, currently has Tiger Woods under
contract. Nicole Kidman has (3) ……………… for Chanel No.5, which has been
shown around the world. But choosing the celebrity who will (4) ………………
exactly the right ……………… is not always so easy, as several companies have
found out. What happens when a company is about to (5) ……………… a new
……………… featuring a celebrity and it suddenly finds out that he or she is
accused of a criminal offence? While there is no doubt that most celebrity
endorsements do increase sales, more and more advertisers are turning to other,
less risky ways of (6) ……………… the ……………… that they want to reach.
[7, 52]

Ex. 19 → Translate the sentences into English. Pay attention to the use of
participles (underlined). Refer to the GRAMMAR LAB below.

1. Слоган, используемый в нашей рекламной компании, оказался крайне

привлекательным для многих молодых людей.
2. Проработав в компании 3 года, он, наконец, получил повышение и теперь
возглавляет отдел продаж.
3. Хотя я и подверг сомнению результаты последних исследований профессора
Смита, я по-прежнему отношусь к нему в большим уважением.
4. Этот проект потребует от нас работы сверхурочно, для тех, у кого есть
семьи это станет настоящим испытанием.
5. Многие утверждают, что им очень нравится наш продукт, несмотря на
то, что он еще требует доработок.


6. Мне кажется, что рекламные технологии, используемые компанией,
крайне негативно сказываются на ее репутации. Каждый день нам
приходиться обрабатывать огромное количество жалоб клиентов.
7. Рекламируя новый товар или услугу, важно постараться рассказать о его
самых выигрышных характеристиках, не вызвав при этом раздражение
покупателей, которые очень устали от потока рекламы в СМИ.
8. Любой, кто хочет выиграть грант нашей ассоциации, должен выполнить
целый ряд жестких требований.
9. Хорошо выполняя сложную работу, ты можешь зарекомендовать себя и
улучшить шансы на повышение.

GRAMMAR LAB

1. PARTICIPLE I AS AN ATTRIBUTE

x Who’s the girl dancing with your brother? (= …the girl who is dancing …) –Кто эта
девушка, танцующая с твоим братом? (= …девушка, которая танцует …)
x Everybody listened to the story being told by the elderly lady. (= …the story that was
being told…) – Все слушали историю, которую рассказывала пожилая дама.

2. PARTICIPLE II AS AN ATTRIBUTE

x The technologies used 50 years ago seem outdated now. (= which were used) –
Технологии, использовавшиеся 50 лет назад, теперь кажутся устаревшими.

3. PARTICIPLE I AS AN ADVERBIAL MODIFIER

of Time
x Putting on a serious face, the actor began to tell the story. (= When he put…) – Сделав
серьезное лицо, актер начал свой рассказ.

of Reason
x Being imported, oil is very expensive in that country. (= is expensive because it is
imported) – Нефть в этой стране очень дорогая, так как она туда
импортируется.

of Concession
x Although admitting his guilt, the suspect refused to give the details of the theft. (=
Although he admitted his guilt…) – Хотя подозреваемый признал свою вину, он
отказался рассказать о подробностях кражи.

of Manner
x He stood there as if/though waiting for someone. (= as if/though he was waiting…) – Он
стоял там, как будто ожидая кого-то.

[2, 126-128, 131-133]


 VOCABULARY DIARY

Now write down ❺ words/expressions you didn’t know or you want to use
more. Make your own sentences with them.

6)
7)
8)
9)
10)

SPEAKING 1
MARKET LEADERS

Ex. 20 → Think of a well-known market leader. To what do you

attribute its market leadership?

¾ a better brand-image
¾ superior marketing
¾ superior production methods
¾ technological superiority
¾ innovative research
¾ something else

Use the transitional language given below.

TRANSITIONAL LANGUAGE

I am certain, …
Without doubt, …
I believe that …
The reason why … What makes … a market leader is …
Thanks to … …
… is its major competitive advantage. excellent
Another strong side of … is … superior
What distinguishes … is … state-of-the-art


 WATCHING
THE KEY TO MEDIA’S HIDDEN CODES

Ex. 21 → What are the most powerful media of promoting goods/ideas? Why?

Ex. 22 → Match each word with its correct translation.

1. an angle a. расшифровывать
2. convention b. модное словечко, популярный термин
3. to boo c. принятое правило; обычай
4. to decipher d. угол
5. to trigger e. создавать, изготовлять (что-л.) искусно
6. a buzz word f. шикать, освистывать, выражать неодобрение
7. to craft sth g. инициировать, вызывать (что-л.), дать начало
(чему-л.)
8. an impact h. влияние, воздействие; последствия

Ex. 23 → Watch the video The Key to Media’s Hidden Codes and answer
the questions below. [http://ed.ted.com/on/LJYMQaol]

1. Through which of these channels do you absorb information?

A. Television/Movies
B. Magazines
C. Internet
D. All of the above

2. What’s the first thing that constitutes a code?

A. It has to incorporate color, imagery, sound, and writing.
B. It must be in television, magazines, or movies.
C. It has to be recognized by all who read it.
D. It must be fun.

3. Technical Codes Sr. has three sons. Which of the following is not one of
his sons?
A. Technical Codes Jr.
B. Symbolic Codes
C. Written Codes
D. Verbal Codes


 4. “The idea that understanding the relationship between technical codes
and the role they play in shaping your understanding of the world
around us through the media we consume is ...
A. rarely important.”
B. fun and interesting.”
C. scary and dangerous.”
D. a big made up lie.”

5. According to the speaker, one of the most powerful advertising

mediums in the world is:
A. Movies
B. Modern art
C. Word of mouth
D. Television

Ex. 24 → Complete the tree of technical codes outlined in the video.

TECHNICAL CODES SR.

1. ................ 2. ................ 3. ................

a. ... a. ... a. ...

b. ... b. ... b. ...

c. ... c. ... c. ...

What are the ways different types of media shape the way you think about the
world? Do you think this is positive or negative?


 SPEAKING 2
MARKETING MIX

Ex. 25 → Explain what you think these quotations mean. Do you agree
with them?

1. ‘Marketing is what you do when your product is no good’

Edwin Land, Inventor of Polaroid photography

2. ‘Business has only two functions – marketing and innovation’

Milan Kundera, Czech writer

3. ‘No great marketing decisions have ever been made on quantitative data’
John Sculley, former President of PepsiCo and CEO of Apple

Ex. 26 → Read the short text below and find the answers to these questions.

x What are the four Ps?

x What are the four Cs?
x What is mix coherency?
x What are mix dynamics?

The Marketing Mix

The most common variables used in constructing a marketing mix are Price,
Promotion, Product, and Placement. These are sometimes referred to as the four
Ps. Each of these ideas can also be seen from a consumer’s perspective. So,
Product converts into Customer Solution, Price into Cost, Place into Convenience,
and Promotion into Communication, These are the four Cs.

The concept of mix coherency refers to how well the components of the mix are
blended together. For example, a strategy of selling expensive luxury products in
discount stores has poor mix coherency between Product and Placement. Mix
dynamics refers to how the mix is adapted to a changing business environment, to
changes in the organization’s resources, and to changes in the product life cycle.

[6, 60]


Ex. 27 → Decide how successful the mix coherency and mix dynamics are in
these examples. Use the four Ps or the four Cs to explain your answers.

1. An upmarket women’s hairdressing franchise is opening salons in

underground railway stations.
2. Accessories and spare parts for a popular portable cassette player are now
only available by mail-order or Internet.
3. A distributor of T-shirts decorated with ecological symbols and slogans is
advertising in women’s fashion magazines.
4. An executive training company is promoting courses in business letter-
writing on TV.
5. A video games company distributes discount coupons at football matches.
[6, 60]

Ex. 28 → Where would be the best place to advertise the following?

9 golf equipment 9 a second-hand car

9 hotel accommodation 9 discount travel for students
9 medical insurance 9 a new movie

Can you think of any more new, unusual places where it would be possible to
place advertisements?
[7, 50]

SPEAKING 3
SALES PROMOTION TECHNIQUES

Ex. 29 → The following sales promotion techniques are often used to

stimulate sales. Give examples of these techniques that you know. Use the list
of products to help you.

1. BOGOF: buy one get one free

2. loss leaders: products sold at a low price to encourage sales of another
product
3. tying: making sales of one product depend on the customer buying another
4. cashback: money returned after the customer has paid for something
5. bundling: selling several products together as one combined product
[6, 61]
holidays / music / printer cartridges / soft drinks / software


 PROJECT
BRITISH AIRWAYS: TAILFINS
Ex. 30 → Step back in time to consider the branding decisions of one of
Britain’s best-known companies.

In a brave attempt to get away from an

image of old-fashioned Britishness, BA
decided in the 90s to replace the
distinctive red, white and blue tailfin
on its fleet of 290 passenger jets with a
series of multi-ethnic designs to reflect
its global status as ‘the world’s
favourite airline’. The cost of the
changeover was £60 million.

The designs, influenced by Chinese

calligraphy, Delft pottery, Polish high-

rise flats and images from the Kalahari

desert, were immediately criticized by
BA’s customers, who felt the company
had abandoned its core values as a
world-beating British company. After
just four years, and relentless ridicule
in the press, the designs were finally
painted over with the Union Jack flag.

Look at some of the BA tailfin designs

above. Do you agree with the majority
of BA’s customers that the Union Jack
is preferable to the ethnic designs?
Could there have been a compromise?
[1, 94]

Ex. 31 → Work in groups. You are advertising agencies competing for the BA
account. Produce a short presentation for the potential client on how you
would promote awareness of their company into the second decade of the 2lst
century.


Consider:

¾ What are the company’s core values?

¾ What should be the advertising campaign’s key message?
¾ What new slogan would reflect this key message?
¾ What new logo/tailfin design would reinforce brand image?
¾ What kind of global TV commercial would be most successful (Describe
what it would be like including visuals, background music and voice-over.
Draw a simple storyboard if you like to illustrate your pitch.)

Give your pitches (❺ min) to the rest of your class (the clients). Decide who
gets the account by voting for the best ideas after your own!

Use the transitional language below.

TRANSITIONAL LANGUAGE
for brainstorming & presenting

6. Considering ideas:

¾ This might sound crazy, but … / Just thinking aloud for a moment, but …
¾ I’ve just had an idea. / I haven’t thought this through yet, but …
¾ You’ve just reminded me of something.

7. Making suggestions:

¾ Why don’t we …?/ I suppose we could …/ How about …?

¾ I think we should … / Wouldn’t it be nice if we … / What if we …?
¾ It might be possible to …

8. Presenting your idea:

¾ We’d like to present to you… / The purpose of our presentation is to …

¾ The idea is … / We are certain that … / What we suggest is …
¾ This clearly shows … / We hope that …
¾ As you remember, we are concerned with …
¾ I’d now like to move on to … / Another aspect of … is …
¾ That’s all I have to say about …
¾ We’d like to thank you (all) for your attention and interest.


 UNIT 6
PRICES & COMMODITIES

VOCABULARY
advertising

marketing

GRAMMAR
participle

LISTENING/WATCHING
what consumers want…

SPEAKING
my … graph

a business idea

PROJECT
Sumitomo bank


 INTRODUCTION
Ex. 1 → Revision spot. Listed below are some words you learned in the previous
units. Make sure you remember the words and translate them into Russian.

x the retail price x trade barriers

x a mass vs. niche market x sth is great value for money
x marketing mix x to consume a lot of oil
x high costs of production x the reason why …
x a luxury item x he tends to exaggerate
Ex. 2 → Which of the following points of view is nearer to your own?

1. “It’s not the aim of this company to make more money than is prudent.”
Lord Rayner, Marks and Spencer

2. “Pan Am takes good care of you.

Marks and Spencer love you.
At Amstrad we want your money.”
Alan Sugar, founder of Amstrad.

[1, 43]
NOTES

Amstrad – a British electronics company.

Pan Am – the principal and largest international air carrier in the United States
from 1927 until its collapse on December 4, 1991.
Marks and Spencer (M&S) – a major British multinational retailer that
specialises in the selling of clothing, home products and luxury food products.

Ex. 3 → Discuss in class.

Since the only legitimate objective of doing business is to make a decent profit,
few things can be as important as the price tag you put on what you sell. But
price is actually one of the hardest things to determine, and it’s not so much a
question of what a thing is worth as how much you can reasonably expect to
get for it.
1. How do you think prices are fixed?
2. How would you define price?
x As a true reflection of value?
x Costs plus mark-up?
x Whatever the market will stand?