Unit 5 – Exercises

PART ONE

I. Match the terms with their definition:

1. Distribution channel A. All the companies or individuals involved in moving a
2. To launch a product particular good or service from the producer to the consumer
3. Market opportunities B. An idea for a new product, which is tested with target
4. Market research consumers before the actual product is developed
5. Market segmentation C. Attributes or characteristics of a product: quality, price,
6. Packaging reliability, etc.
7. Points of sale D. Dividing a market into instinct group of buyers who have
8. Product concept different requirements or buying habit
9. Product feature E. Places where goods are sold to the public- shops, stores,
10. Sales representative 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

II. Complete the text using the correct form of these verbs
anticipate modify divide offer fill share influence sell involve understand

A market can be defined as all the potential customers (1) ____ 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 (2) ____ the
customer so well that the product or service satisfies a need so perfectly that the customer is
desperate to buy it. The product almost (3) _____ 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 (4) _____ 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 (5) - _____
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 (6)
______, always remembering the existence of competitors.
 Marketers do not only identify consumer needs; they can (7) _____ 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 (8) _____ 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
promotion, and personal selling.
The next stage is to create long-term demand, perhaps by (9) ____ particular features of the
product to satisfy changes in consumer needs or marker 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 (10) ____ regulating the level, timing and character of demand.

III. 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.

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.
IV. Use the following terms to complete the definitions below:
brand product
product line product mix
line-stretching line-filling
product elimination convenience goods
shopping goods 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.
V. Read the text, and then decide whether the statements on the next page are TRUE or
FALSE.
The sales of most products change over time, in a recognizable pattern which contains distinct
periods or stages. The standard life cycle includes introduction, growth, maturity and decline
stages.
The introduction stage, following a product's launch, generally involves slow growth. Only a few
innovative people will buy it. There are probably no profits at this stage because of the heavy
advertising, distribution and sales promotions expenses involved in introducing a product onto the
market. Consumers must be made aware of the product's existence and persuaded to buy it. Some
producers will apply a market-skimming strategy, setting a high price in order to recover
development costs. Others will employ a market-penetration strategy, selling the product at as low
a price as possible, in order to attain a large market share. There is always a trade-off between
high current profit and high market share.
During the growth period, 'early adopters' join the 'innovators' who were responsible for the first
sales, so that sales rise quickly, producing profits. This generally enables the producer to benefit
from economies of scale. Competitors will probably enter the market, usually making it necessary
to reduce prices, but the competition will increase the market's awareness and speed up the
adoption process.
When the majority of potential buyers have tried or accepted a product, the market is saturated,
and the product reaches its maturity stage. Sales will stabilize at the replacement purchase rate, or
will only increase if the population increases. The marketing manager has to turn consumers' brand
preference into brand loyalty.
Most products available at any given time are in the maturity stage of the life cycle. This stage
may last many years, and contain many ups and downs due to the use of a succession of marketing
strategies and tactics. Product managers can attempt to convert non-users, search for new markets
and market segments to enter, or try to stimulate increased usage by existing users. Alternatively
they can attempt to improve product quality and to add new features, sizes or models, or simply
to introduce periodic stylistic modifications. They can also modify the other elements of the
marketing mix, and cut prices, increase advertising, undertake aggressive sales promotions, seek
new distribution channels, and so on, although here additional sales generally come at the cost of
reduced profits.
A product enters the decline period when it begins to be replaced by new ones, due to advances
in technology, or to changes in fashions and tastes. When a product has clearly entered its decline
stage, some manufacturers will abandon it in order to invest their resources in more profitable or
innovative products. When some competitors choose to withdraw from a market, those who
remain will obviously gain a temporary increase in sales as customers switch to their product.
Not all products have this typical life cycle. Some have an immediate rapid growth rather than a
slow introductory stage. Others never achieve the desired sales, and go straight from introduction
to maturity, although of course this should have been discovered during test marketing before a
 full-scale launch. Fads and gimmicks - for example, toys people buy once and once only to stick
on car windows - have distinct life cycles, both rising and declining very quickly.
1. The introduction stage of a new product is not usually profitable.
2. During the introduction stage, marketers are trying to create brand preference.
3. A producer seeking maximum profits will apply a market-penetration strategy.
4. The entry of competitors onto the market will make more consumers aware of the product and
stimulate them to try it.
5. At the maturity stage, producers begin to benefit from economies of scale.
6. The maturity stage is generally the longest.
7. Once the maturity stage is reached, marketers concentrate on finding new customers.
8. A product enters the decline stage when it begins to become obsolete.
9. A product can experience temporary sales increases during its decline stage.
10. Gimmicks and fads have a particularly long life cycle.

VI. Rearrange the sentences below to make a complete text about marketing channels.
a. If there's only one intermediary, it could be a dealer or retailer for consumer goods, or a sales
agent or broker for industrial goods.
b. In other words, decisions about the location of manufacturing and assembly plants and
warehouses, inventory levels, and transport methods should ideally begin with the needs of
customers.
c. More complex channels add further intermediaries such as transport companies, wholesalers,
and independent distributors.
d. Most producers, however, use a marketing channel involving one or more specialized
intermediaries.
e. Of course, the choice of which physical distribution channels to use should not come at the
end of the marketing process.
f. On the contrary, according to the logic of marketing, companies should begin with
considerations such as the location of target customers, and work back to raw material sources
and manufacturing.
g. Some manufacturers do direct marketing, selling their goods directly to the end-users.
h. These are essentially a short delivery time and a guarantee that products arrive in good
condition.
i. They can reach these consumers with their own door-to-door sales reps; by direct mail
(sending catalogues, leaflets, brochures, order forms, and so on by post); by telephone selling;
or by advertising and receiving orders via the Internet.
j. Yet the demands of retailers and customers clearly also have to be balanced against excessive
inventory costs, as large inventories tie up capital and increase the risk of spoilage or
obsolescence.

VII. 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 Brand name Cash discount
Commercials service Characteristics Distribution channels
Franchising Credit terms Going-rate Guarantee
 Inventory Free sample List price Mailings
Market coverage Line-filling Market skimming Media plan
Optional features Market Payment period Personal selling
Point of sales penetration Prestige pricing Production costs
Public relations Packaging Quality Quantity discounts
Retailing Poster Sponsorship Style
Transportation Publicity Warehousing Wholesaling
Sizes
Vending
machines

PART TWO

I. True/ False Questions

1. Cultural differences demand that all companies need to modify their product to the culture.
2. The value that customers obtain from a product is heavily influenced by the image of the country
in which it is designed, manufactured, or assembled.
3. Efforts by a company to reach distribution channels and target customers through communications
such as personal selling, advertising, public relations, and direct marketing are called its
promotional mix.
4. A promotional strategy designed to create buyer demand that will encourage channel members
to stock a company's product is called a push strategy.
5. A push strategy is a promotional strategy designed to pressure channel members to carry a product
and promote it to final users.
6. Marketing communication is typically considered as a one-way process from the source to the
audience.
7. Dual extension method extends the same home-market product and marketing promotion into
target markets.
8. Under dual adaptation method, a company adapts its products to the requirements of the
international market while retaining the product's original marketing communication.
9. The dual extension method adapts both the product and its marketing communication to suit the
target market.
10. The physical path that a product follows on its way to customers is called a distribution channel.
11. When a producer wants its product to be made available through as many distribution outlets as
possible, it prefers to use an intensive channel.
12. Generally, the more intermediaries in a channel, the less costly it becomes because of the enhanced
efficiency of distribution.
13. The lower a product's value density, the more localized the distribution system.
14. A pricing policy in which different selling prices are established for different markets is called
worldwide pricing.
15. When a product has a higher selling price in the target market than it does in the home market, it
is called price escalation.
16. An arm's-length price is the price charged for products sold between company's divisions or
subsidiaries.
17. Most international transfers between subsidiaries now occur at a so-called arm's length price.
18. Lower-limit price controls are designed to provide price stability in an inflationary economy.
19. Dumping occurs when the price of a good is lower in another nation's market than it is in the
domestic market.

II. MULTIPLE CHOICE QUESTIONS

1. Efforts by a company to reach distribution channels and target customers through communications
such as personal selling, advertising, public relations, and direct marketing are called its ______.
a. marketing objectives. b. distribution policies. c. promotional mix. d. value density.
2. A promotional strategy designed to create buyer demand that will encourage channel members to
stock a company's product is called a _____.
a. pull strategy. b. distribution strategy. c. push strategy. d. channel strategy.
3. Which of these is a promotional strategy designed to pressure channel members to carry a product
and promote it to final users?
a. Pull strategy b. Channel strategy c. Push strategy d. Distribution strategy
4. The process of sending messages about products to target markets is called a _____.
a. promotional mix. b. distribution policy. c. value density. d. marketing communication.
5. When an idea is translated into images, words, and symbols, it is called ______.
a. decoding. b. message. c. encoding. d, media
6. Once the audience receives the message, they _____ the message and interpret its meaning. a.
source b. decode c. noise d. encode
7. Which of these methods extends the same home-market product and marketing promotion into
target markets?
a. Product/communications extension b. Product extension, communication adaptation
c. Product adaptation, communications extension d. Product / communication adaptation
8. Under which of these methods does a company extend the same product into target markets but
alters its promotion?
a. Product/communications extension b. Product extension, communication adaptation c. Product
adaptation, communication extension d. Product/communication adaptation
9. Under which of these methods does a company adapt its product to the requirement of the
international market while retaining the product's origial marketing communication?
a. Product/communications extension b. Product extension, communication adaptation
c. Product adaptation, communications extension d. Product / communication adaptation
10. Which of these methods adapts both the product and its marketing communication to suit the
target market?
a. Product /communications extension b. Product extension, communication adaptation c. Product
adaptation, communication extension d. Product /communication adaptation
11. Planning, implementation, and controlling the physical flow of a product from its point of origin
to its point of consumption is called _____.
a. channel management. b. distribution. c. blending product and promotional policies. d. its
promotional mix.
12. The physical path that a product follows on its way to customers is a ____.
a. distribution channel. b. promotional mix path. c. value density. d. just-in-time path.
13. A distribution channel in which a manufacturer grants the right to sell its products to only one or
a limited number of resellers is called a (n) ______.
a. intensive channel b. push strategy channel c. exclusive channel d. pull strategy channel.
14. A distribution channel in which a producer grants the right to sell its product to many resellers is
referred to as a(n) _____.
a. pull strategy channel. b. exclusive channel c. intensive channel d. value channel.
15. Which of these is referred to as direct marketing?
a. Two-level channel b. Zero-level channel c. Multi-level channel d. One-level channel.
16. The value of a product relative to its weight and volume is called its _____.
a. promotional mix. b. heavy-duty product. c. dual priced product d. value
density.
17. The _____ a product's value density, the more ______ the distribution system.
a. lower; localized b. lower; globalized c. higher; localized d. lower; valuable
18. A pricing policy in which one selling price is established for all international markets is called
_____.
a. dual pricing. b. price escalation. c. worldwide pricing. d. transfer pricing.
19. A worldwide pricing policy is very difficult to achieve because
a. production costs differ from one nation to another. b. cost of exporting could be higher even if a
company is producing in one location. c. the purchasing power of local buyers differs. d. All of
these.
20. A pricing policy in which a product has a different selling price in export markets than it has in
the home markets is called _____.
a. dual pricing. b. transfer pricing. c. worldwide pricing. d. an arm's-length pricing.
21. When a product has a higher selling price in the target market than it does in the home market, it
is called ______.
a. worldwide pricing. b. transfer pricing. c. price escalation. d. a bonus
22. Which of these refers to the price charged for products sold between a company's divisions or
subsidiaries?
a. DuaI price b. Transfer price c. Worldwide price d. Arm's-length price
23. The free-market price that unrelated parties charge one another for a specific product is called a
(n) ____.
a. worldwide price. b. transfer price. c. dual price d. arm's- length price
24. When the price of a good is lower in another nation's market than it is in the domestic market it is
called ____.
a. dumping. b. transfer pricing. c. price escalation. d. price controls.

III. SHORT-ANSWER QUESTIONS

1. Efforts by a company to reach distribution channels and target customer through communications
such as personal selling, advertising, public relations, and direct marketing are called its ______.
2. A promotional strategy designed to create buyer demand that will encourage channel members to
stock a company's product is called a ____.
3. A _____ is a promotional strategy designed to pressure channel members to carry a product and
promote it to final users.
4. The process of sending promotional messages about products to target markets is called ______.
5. ______method extends the same home-market product and marketing promotion into target
markets.
6. Under ______ method, a company extends the same product into new target markets but alters its
promotion.
7. Under _____ method, a company adapts its product to the requirements of international market
while retaining the product's original marketing communication.
8. ____ method adapts both the product and its marketing communication to suit the target market.
9. Planning, implementing, and controlling the physical flow of a product from its point of origin to
its point of consumption is called _____.
10. The physical path that a product follows on its way to customers is called a ____.
11. An ____ is one in which a manufacturer grants the right to sell its product to only one or a limited
number of resellers.
12. An ____ is one in which a producer grants the right to sell its product to many resellers.
13. An _____ refers to the number of intermediaries between the producer and the buyer.
14. The value of a product relative to its weight and volume is called its ____.
15. A pricing policy in which one selling price is established for all international markets is called
____.
16. A pricing policy in which a product has a different selling price in export markets than it has in
the home market is called ___.
17. A(An)_____ is the price charged for products sold between a company's divisions or subsidiaries.
18. A free-market price that unrelated parties charge one another for a specific product is called a(n)
1. promotional mix
_____. 2. pull strategy
3. push_______
4. marketing communcation
5. dual extension (giữ nguyên chỉ expand thôi)
6. product extention, communication adaptation
7. product adaptation, communication extension
8. dual adaptation
9. distribution
10. distribution channel
11. exclusive channel
12. intensive channel
13. channel legth
14. value density
15. worldwide pricing
16. dual pricing
17. transfer price
19. counter marketing
18. arm’sis the attempt
legth price to destry unwholesome demand for products that are considered undesirable, eg.
cigarettes, drug,….
20. conversional marketing is the difficult task
21. stimulational
22. developmental
23.
24. remarketing
25. demarketing
26 maintainant