B.
Vocabulary
Match the terms with their definition:
1. Distribution channel
2. To launch a product
3. Market opportunities
4. Market research
5. Market segmentation
6. Packaging
7. Points of sale
8. Product concept
9. Product feature
10. Sales representative
Write your answer here:
1. 2.
6. 7.
A. All the companies or individuals involved in
moving a particular good or service from the
producer to the consumer
B. An idea for a new product, which is tested with
target consumers before the actual product is
developed
C. Attributes or characteristics of a product:
quality, price, reliability, etc.
D. Dividing a market into instinct group of buyers
who have different requirements or buying habit
E. Places where goods are sold to the public-
shops, stores, kioshks, market, stalls, etc.
F. Possibilities of filling unsatisfied needs in
sectors in which a company can profitably
produce goods or services
G. Someone who contacts existing and potential
customers and tries to persuade them to buy
goods or services
H. Collecting, analysing and reporting data
relevant to a specific market situation ( such
as a proposed new product)
I. To intro duce a new product onto the market
J. Wrappers and containers in which product
are sold
3. 4. 5.
8. 9. 10.
Exercise 1: Categorize the following aspects of marketing according to the well-
known “4P’s” classification of the marketing mix – product, price, promotion and
place.
Adverising After-sale service Brand name Cash discount
Commercials Credit terms Characteristics Distribution
Franchising Free sample going-rate channels
Inventory Line-filling List price Guarantee
Market coverage Market Market skimming Mailings
Optional features penetration Payment period Media plan
Point of sales Packaging Prestige pricing Personal selling
Public relations Poster Quality Production costs
retailing Publicity Sponsorship Quantity discounts
transportation Sizes Warehousing Style
Vending machines Wholesaling
Exercise 2: Complete the eight sentences below, by adding an example from the
second box:
1. Conversional marketing is the difficult task of reversing negative demand,
2. Stimulational marketing is necessary where there’s no demand,
3. Developmental marketing involves developing a product or service for which
there is clearly a talent demand,
4. Remarketing involves revitalizing falling demand,
5. Synchromarketing involves altering the times pattern of irregular demand,
6. Maintenance marketing is a matter of retaining a current (may be full) level of
demand
7. Demarketing is the attempt (by governments rather than private businesses) to
reduce overfull demand, permanently or temporarily.
8. Countermarkeing is the attempt to destroy unwholesome demand for products that
are considered undesirable,
a. eg. a non-polluting and fuel-efficient car.
b. eg. cigarettes, drugs, handguns, or extremist political parties.
 c. eg. for churches, inner city areas, or ageing film stars.
d. eg. for some roads and bridges during rush hours.
e. eg. for public transport between rush hours, or for ski resorts in the summer.
f. eg. for dental work, or hiring disable people.
g. in the face of competition or changing tastes.
h. which often happens with new products and services.

Write your answer here:

1. 2. 3. 4. 5. 6. 7. 8.

Exercise 3: Match up these marketing actions with the eight tasks described
above:
i. Alter the pattern of demand through flexible pricing, promotion, and other
incentives.

j. Connect the benefits of the product with people’s needs and interests.

k. Find new target markets, change product features, develop more effective
communication.

l. Find out why people dislike the product, and redesign it, lower prices, and use more
positive promotion.

m. Increase prices, reduce availability, make people scared.

n. Keep up or improve quality and continually measure consumer satisfaction.

o. Measure the size of the potential market and develop the goods and services that
will satisfy it.

p. Raise prices, reduce promotion and the level of service.

Write your answer here:

i. j. k. l. m. n. o. p.

Exercise 4: Complete the text with the words in the box:

Advertising budgets consumer tastes differentiate products

 Early adopters making a loss reaches saturation
Similar offerings withdrawn from the market

The classic product life cycle is Introduction, Growth, Maturity and Decline. In
the introduction stage the product is promoted to create awareness. It has low sales and
will still be (1).......................................... If the product has few competitors, a skimming
price strategy can be used (a high price for (2)........................................ which is then
gradually lowered). In the Growth phase sales are rising rapidly and profits are high.
However, competitors are attracted to the market with (3)................................................
The market is characterized by alliances, joint ventures and takeovers.
(4)............................ are large and focus on building the brand.
In the Maturity phase sales growth slows and then stabilizes. Producers attempt to
(5)......................................... and brands are key to this. Price wars and competition occur
as the market (6)............................................ In the Decline phase there is a downturn in
the market. The product is starting to look old-fashioned or (7) .....................................
have changed. There is intense price-cutting and many products are
(8) ................................
Exercise 5: Match up the remarks below with the names of different pricing
strategies in the box:
1. market penetration
pricing =
2. market skimming =
3. current –revenue pricing
=
4. loss-leader pricing =
5. mark-up or cost-plus
pricing =
6. going-rate pricing =
7. demand- deferential
pricing ( or price
discrimination) =
8. perceived-value pricing =
a. Firstly we need cash, and secondly, we don’t think the product will last very
long – it’s really just a gimmick – so we’re trying to maximize our sales
income now.
b. Like all supermarkets, we offer half a dozen or more different items at a really
low price each week. We lose on those, but customers come in and buy lots of
other stuff as well.
c. Since our product is indistinguishable from those of all our competitors, and
we’ve only got a tiny park of the market, we charge the same as the rest of
them.
d. They just worked out the unit cost and added a percentage, without even
considering demand elasticity or anything like that.
e. We charge an extremely high price because we know people will pay it. Our
brand name is so famous for quality – we can make huge profits.
f. We charge lots of different prices for what is really almost the same thing. Of
course, in First Class you get better food, and in Economy there’s hardly any
legroom, but it’s still a flight from A to B
g. We decided to launch the product at a very low price, almost at direct cost,
hoping to get a big market share. Then we can make profits later because of
economies of scale.
h. We’re going to charge a really high price to start with. We can always lower it
later to reach price-elastic market segments.

1 2 3 4 5 6 7 8
Exercise 6: Which of these two-word nouns refers to?
1. A basic price before discounts and special offers are made?
2. A price at which retailers buy goods?
3. A price recorded in a company’s accounts?
4. The government’s measure of inflation?
5. The price at which a producer makes no profit?
6. The relationship between a product’s price and the quantity bought
Which two of these two- word nouns refer to
7. A price-limit imposed by government?
8. Arrangements between competitors not to lower price