Реєстраційний номер Схвалено

електронних методичних на засіданні кафедри

вказівок у НМУ ______________ іноземних мов

Протокол № 10

від 10.03. 2010 р.

Київ НУХТ 2010

Англійська мова: Метод. вказівки до практичних занять та самостійної роботи зматеріалами періодичних видать для студентів 1-4 курсу по спеціальності“Товарознавство і торгівельне підприємництво” (Денна форма навчання6.030510) / Уклад.: Г.А. Чередніченко, О.В. Кияшко, В.В. Мірочник – К: НУХТ,2010. – с.132

Укладачі: Г.А. Чередніченко

О.В. Кияшко

В.В. Мірочник

Відповідальний за випуск Л.Ю. Шапран, завідувач кафедри, доц.

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ВСТУП

Методичні вказівки призначені для студентів 1-4 курсу напряму підготовки6.030510 Товарознавство і торгівельне підприємство денної форми навчання.

Тематика, лексичний мінімум, система граматичних вправ спрямовані надосягнення головної мети.

Мета даних методичних вказівок – допомогти студентам овоодітипрофесійною лексиеою, розштрити відповідний словниковий запас.

Методичні вказівки складаються з розділів, що містять лексичний матеріал тапрактичні завдання, які сприяють подальшому розвиненню опанованої лексикиз майбутньої спеціальності. Система завдань розділів будується на цільовійлексиці за тематичним принципом, спрямована на ефективне засвоєнняподаного мовного матеріалу.

Дані методичні вказівки сприятимуть формуванню у студентів загальних тапрофесійно орієнтованих комунікативних мовленнєвих компетенцій та єдодатковим спонукальним мотивом до удосконалення навичок усного таписемного мовлення в професійній сфері.

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Content:

Introduction…………………………………………………………………..……2

UNIT 1. PRODUCTS AND SERVICES…………………………………….……4

UNIT 2. PRODUCT LIFE CYCLE………………………………………………54

UNIT 3. DESCRIBING A PRODUCT…………………………………………...64

UNIT 4. PRODUCT MIX………………………………………………………..72

UNIT 5. PRODUCT POSITIONING……………………………………………79

UNIT 6. MARKETING, MERCHANDISING AND BRANDING……………...90

UNIT 7.BUSINESS COMMUNICATION……………………………………...104

SUPPLEMENT 110

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UNIT 1. PRODUCTS AND SERVICES

PRODUCT POLICY

Company is the main building blocks of the economy. It is a source ofsociety's needs for goods and services, and at the same time, the place of applicationof forces, the majority of working-age population of any country. Many newproducts, technologies, knowledge and skills are born at the enterprises. Importantplace among producers of material goods occupy the workers of the agriculturalsector.

Select specific type of agricultural production as a goal of economic activity isvery difficult. Well-developed plan of the company in this field allows to accuratelydetermine the potential, develops the right product policies, optimize the trade rangeand the available productive resources, strengthen its effectiveness.

From the standpoint of economic theory, the product - a product of labor,produced for sale.

From the standpoint of marketing more important in the product is its usevalue.

Product - everything that can meet the needs of the market and proposed toattract attention, acquisition, use or consumption.

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Product - the market category, and outside it is a product, not representingany value for the buyer.

Product - is a potential commodity.

Warm up

Imagine that you are the owner of some food production company:

While working on the product you should remember

buyers do not purchase goods, but their functional ability tomeet a human need

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· What product or service do you offer (have already offered) to yourcustomers?

· What are the benefits they receive from the use of the product / service?· What qualities should this product / service have?· What characteristics should it have? What level of service should be offered to consumers?

Exercise 1Match the word or phrase on the left (a-i) with the one on the right (1-9) whichmeans the sameA commitment 1 well-considered, carefully thought outB to deliberate 2 interestC soul-searching 3 heart, centerD explicitly 4 brightly discussedE concern 5 identically, uniquelyF core 6 congruentG allocated 7 distributed, placedH cut and thrust nature 8 distinctive featureI comparable 9 fulfillment of engagements

Read the following article about product policy.Product policy is of fundamental strategic importance in marketing. At its most

basic, it involves the organization in a commitment to a deliberate policy on whichmarkets to serve, with which products or offerings. Such a policy should thereforeitself be the product of much corporate soul-searching, analysis and preparation. Insimple terms, product policy amounts to a game-plan' to achieve a product-marketmatch, thereby serving both market requirements and corporate objectives, for thepresent and into the future.

The product will be an obvious focus of attention for all customers, and for allstaff and service functions within the company. It will also, of course, be an object ofinterest to leading competitors, suppliers, potential customers, intermediaries andmany others.

The essentials of product policyA company's product policy may not explicitly appear in any one policy

document or statement, but will likely show itself in those major decisions ofcorporate and marketing strategy that involve

· product planning· future development· innovation.Essentially, product policy will be concerned with:1. Developing strategic guidelines that direct at once the marketing of existing

products and the development of new products. While these guidelines will be

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associated with company wide objectives such as profitability and growth-marketshare potential, they will also reflect corporate policy in respect of what is a desirablemix of product offerings. These guidelines will determine the overall strategicdirection of the company in terms of product-market development, and will be theconcern of senior management and marketing decision-makers.

2. Translating these general guidelines into operational performance at thelevel of both individual products and the wider product mix. Specifically:

For existing products, this will involve· managing and monitoring the marketing of these products,· quality-performance indicators such as profitability and image,· sales targets and competitive standing.These tasks will be the core of day-to-day marketing at the product level.

While companies will vary in the way in which they staff and organize for theseongoing activities, it is not uncommon to find in larger companies a division ofmarketing responsibilities according to product lines or brands, by the employment ofspecialist product managers or brand managers, within the marketing department.Each product or brand manager looks after the marketing and competitive 'health' ofan allocated number of company products or brand ranges. Product marketingrepresents the most obvious marketing tasks of the company on a day-by-day basis.The dynamics of customer tastes, or the cut-and-thrust nature of competitivemarketing or new product activity, may sometimes make it necessary tofundamentally change the marketing of certain products, to re-design and representthem, perhaps for a different market, or even to delete them from the range.

The arguments for a market-centered approach to new product development arenowadays accepted by most companies.

The successful development and launch of new products involves thecommitment of marketing resources to an integrated company-wide innovation effortwith comparable activities such as

· product modification and re-launch new product· introduction and marketing involve effectively re-balancing the total

product range Within such a market-centered approach to new product development, the role

of the marketer will be to advise, inform and initiate product change, and toparticipate in a cross-disciplinary teamwork approach to development andcommercialization.

In summary, product policy represents a key area of corporate and operationaldecision-making on product offering, that involves marketing in supporting presentproducts, effecting ongoing marketing changes to the product range, andcommercializing new products, as part of a total corporate plan.

In simple terms, product policy involves1. managing and modifying existing products2. developing and establishing new products..It is necessary at this point to introduce a few basic concepts and definitions, to

lay the groundwork for a more detailed examination of key issues in product policy.

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Exercise 2.Find the answers to these questions in the article and note them down.

1 What does product policy involve?2 What will likely a company’s product policy show itself?3 Name the key points of a product policy.4 What is the difference of the product policy between the existing products

and new products?5 What does product policy represent on the whole?

Products and brands

A. Word combinations with 'product'

catalogue

(BrE)

catalog

(AmE)

mix

portfolio

a company's products, as a group

line

range

a company's products of a particular type

lifecycle the stages in the life of a product, and the number of people

who buy it at each stage

positioning how a company would like a product to be seen in relation to

its other products, or to competing products

product

placement when a company pays for its products to be seen in films and

TV programmes

B. GoodsGoods can refer to the materials and components used to make products, or the

products that are made.Here are some examples of these different types of goods:

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Consumer goods that last a long time, such as cars and washing machines, areconsumer durables. Consumer goods such as food products that sell quickly arefast-moving consumer goods, or FMCG.

C. Brands and brandingA brand is a name a company gives to its products so they can be easily

recognized. This may be the name of the company itself: the make of the product.For products like cars, you refer to the make and model, the particular type of car, forexample, the Ford (make) Ka (model).

Brand awareness or brand recognition is how much people recognize abrand. The ideas people have about a brand is its brand image. Many companieshave a brand manager.

Branding is creating brands and keeping them in customer's minds throughadvertising, packaging, etc. A brand should have a clear brand identity so thatpeople think of it in a particular way in relation to other brands.

A product with the retailer's own name on it is an own-brand product (BrE)or own-label product (AmE). Products that are not branded, those that do not havea brand name, are generic products or generics.

Exercise 1.Match the sentence beginnings (1-7) with the correct endings (a-g). The

sentences all contain expressions from A opposite.1. Banks are adding new types of accounts2. Apple is going to simplify its product line3. Consumers have mixed feelings about supermarkets4 When BMW bought Rover,5. The new law will ban product placement6. Following the launch of the Series 5 laptop, consumers were slow tounderstand7. With this type of equipment in the US,

a. product life cycles are so short that product launches are very frequent.b. its product positioning in relation to Psion's existing hardware products,c. it changed its product range towards more expensive cars,d. of cigarettes in movies.e. extending their product portfolio into financial services.f. and deliver fewer but more competitive models,g. to their product mix.Exercise 2.Look at the words in B opposite. Which applies to each of these products?1 microwave ovens2 cotton3 cars4 hamburgers5 soap powder

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Exercise 3.

Complete this marketer's description of his work using expressions from Copposite.

My name's Tomas. I'm Portuguese, and I've been (1)...............................forWoof dog food for the whole of Portugal and Spain since I left business school lastsummer.

The Woof (2)..........................is owned by a big international group. Themarket for pet food in Portugal and Spain is growing very fast, as more and morepeople own dogs and cats, and we're trying to increase(3)............................................. of Woof through TV advertisements and hoardings inthe street. Research shows that people have very positive ideas about it: it has a verypositive (4)..........................................But the supermarkets have their(5).................................................dog food, usually sold cheaper than our product,which is a problem. There are even (6)............................................... sold just underthe name 'dog food'. We have to persuade people that it's worth paying a bit more fora (7)_________product like Woof, which is far better, of course.

What A Product Is?

Do you know that:World of products is diverse! They can be physical objects, services, ideas,

individuals and organizations. Any product can be viewed at three levels

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INTENDED PRODUCT - is the product as a means of meeting the specificneeds It is produced to meet the need. This product as it is seen from the developer ofthe idea. Thus, the production of cosmetic products, in practice turns into a hope tolook beautiful and attractive.

PRODUCT IN REAL PERFORMANCE - is the tangible and intangibleattributes of performance and product features: external design, quality, brand nameand packaging. This is a product, created by designers and technologists, i.e.manufacturer.

PRODUCT WITH REINFORCEMENT - a commodity in the real performancewit a set of additional benefits (free delivery, installation and assembly, after salesservices).

Purchasing a particular commodity, we are dealing with a marketable identity.Sales unit - this is a separation integrity, having the exact specifications and

description: the color, taste, size, weight, reliability, quality of construction, design,efficiency, etc.

Intended product

Product in real performance

Product withreinforcement

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For example, bakery products, meat or dairy products - are goods, and a loaf ofbread, a jar of beef stew or evaporated milk - is a commodity unit. The latter includethe course at the university, and a tractor company "Caterpillar", and a three-inchdiskette company Maxell for personal computer.

Marketing management starts with product selection, which is in the maximumextent meet the needs of consumers in the target market to identify these needs itshouldn’t be spared efforts! The ultimate goal of the enterprise is to produce anddeliver goods or services to potential customers at the right time, in a certain placeand at a reasonable price.

GOODS COMMODITY OF GOODS

Key components of the goods:· A set of physical and consumer characteristics (material, weight. Color,

size, appearance, silhouette, smell, taste, structure, defects)· Related goods (for shoe laces, diskette for computers, etc.)· Brand name· Packaging· Related Services Guarantee

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CASE STUDY

For example, a world-famous hamburger from the point of fast-food restaurantworker, is a 100 gr. processed meat placed inside buns and poured the sauce. Forvisitors it is a means of satisfying hunger. In addition, one customer doesn’t careabout what kind of box this hamburger is packed, while the other may be concernedabout the type of packaging hamburger. And it should also be the focus of thecompany's employees.

Consumers seek to meet the diversity of their needs relating to their status,dignity, sense of hunger or thirst. That is why some people prefer to have dinner inluxury restaurants, where waiters wear starched shirts and speak with exotic accents.The visitors of the restaurant buy as well food as atmosphere of a place, good service.However, if you only want to receive the maximum amount of food in exchange forthe ruble or dollar spent, you should visit the small wholesale market.

Exercise 1.Match the word or phrase on the left (a-i) with the one on the right (1-9)

which means the same

a to perceive 1 uncertainb in terms of 2 to discern, to distinguishc vague 3 irrelatived scope 4 being or appearing to be in all places at the same timee irrespective 5 thing, gadgetf to gain 6 tiedg ubiquitous 7 to geth widget 8 limit, rangei bundled 9 from the point of view

To be successful manufacturers andtraders should see their product fromthe point of view of the consumer.

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ProductRead the following article about the product.While the question is almost rhetorical, it is necessary to see the product from a

market perspective, rather than in solely physical or company-centered terms - amistake often made by production-dominated companies. For marketing purposes,the product is what the customer perceives it to be, so that a working definition mightbe:

Product: everything that the customer receives that is of value in terms of aperceived want, need or problem.

Though rather broad and vague, such a definition allows that:· customers vary in their needs, wants and problems, and how they

perceive them there may be scope for varying product offerings in the market;· some products may appear to customers better value or more attractive,

for various reasons, almost irrespective of producer intentions, or objective measuresof quality or product input;

· some product offerings will not make the grade with customers, and willfail commercially.

Others may survive as weaker or marginal products, while a few, the classical'brand leaders', will gain commanding market shares.

The term product applies not only to physical products, but also to services andother intangibles such as causes and ideas. For example, the major charityorganizations such as Oxfam and Save the Children are as actively involved inmaking product offerings as the ubiquitous widget manufacturer in the WestMidlands! Even in the case of an everyday physical product such as washing-upliquid, there will be intangible extras and associations that are offered in addition tothe outward product, e.g. the quality assurance of a known brand name andmanufacturer source.

Simply stated, the marketer needs to view the product as a multi-dimensionaloffering, a mix of tangible features and intangible services and attributes, bundledaround a basic or core benefit.

Exercise 2.Which statements are true or false according to the article?

1. The question “what is a product?” is a rhetorical question.2. Product is everything that the customer receives that is of value in terms

of a perceived want, need or problem.3. Changing of customers’ wants, needs and problems couldn’t lead to the

varying product offering in the market.4. Some product may not appear to be better value or more attractive to

customers.

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A New Product PresentationExercise 1.Read to part of a sales presentation for one of the products below. Which

product is it?Salesperson: We are proud to present this important new addition to our range.

It comes with active speakers and its great new colours are stylish and fashionable.As well as the speakers, we offer you all the features you normally expect – this hi-spec product has a 22-track programmable memory, random play and more. We thinkyou'll find £79.99 is an amazing price, and we're sure you'll be keen to order yourpersonal player right away.

# aerobic workout machine # 2000- file organizer with PC data link

# portable CD player # no battery solar watch

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Key VocabularyFor nearly every type of product there are many similar goods on the market.

The unique selling points (USPs) of a product are the things that make it special anddifferent from other similar products. A good advertisement, which brings theproduct to the public's attention, should describe these USPs. The marketingdepartment should have a customer profile in mind, that is the sort of person whowill buy the product. When trying to sell a product, it's important to give informationabout the product's features or characteristics, and to emphasise the benefits oradvantages of the product to the customer.

Exercise 2.Work in pairs. For each product discuss the following.· What are the features of the product?· What are the product's benefits to the customer. What are the USPs?· What type of customer probably buys this product?

Exercise 3.Which of the products would you like to own and why?

Product information 1If you can get newspapers or magazines in English, look at the advertisements.

You can find a lot of useful vocabulary in them.In addition, many products haveinformation written in English which will also help you to build your vocabulary.Remember, there are many opportunities to see real English. All of them can helpyou to learn.

In this exercise you will see some information about a product. You mustdecide which product is being referred to. Choose the product from the following list.Each product is referred to once only.

briefcase tire pump electric heater rugcosmetic kit film frying pan penhair drier handbag kitchen scale tentsunglasses television video recorder clock

1. Lined interior, document folio in lid. Combination locks. Size 17x12x4inch approx.

2. Black numerals and hands. Metal case. Height 4 inch approx.3. All steel construction. With dial pressure gauge reading 0-60 psi.

Universal fitting.4. Contains 10 powder eyeshadows. 3 powder blushers. 1 highlighter, 4 lip

gloss, 1 waterproof mascara.

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5. Pre-programming of up to 4 events over 14 days. HA feature forenhanced picture quality, electronic tracking controls and quick recordfeature.

6. Weighs up to 61b 10oz/3kg by 1oz/20g graduations. Zero adjustingfeature for weighing each ingredient.

7. Fully lined with interior compartment and pocket Detachable strap.8. 12 inch cable-ready with remote control.9. 1600 watt. Lightweight. 4 heat/speed combinations, cip-on styling

nozzle.10. For gas or electric burner.11. Made from specially hardened glass. The lenses also protect eyes from

ultra violet radiation.12. Processing included in price. For color prints. 36 exposures.13. For picnics, car or home. Fully washable. 80% acrylic/20% other fibers.

Size 51x67 inch.14. Ideal tor up to five people.15. Blue with stainless steel trim. Blue ink.16. Variable thermostat control. Freestanding or wall mounted.

Product information 2Remember that you don't have to be in an English-speaking country to see real

English. It is usually possible to buy an English newspaper or magazine or even getone sent to you. The advertisements in them can be very useful in helping you buildup lists of words used when talking about different products.

In this exercise you will see some information about a product. You mustdecide which product is being referred to. Choose the product from the following list.Each product is referred to once only.

grill camera game vacuum cleanerradio microwave clock tape recorderiron suitcase bed dryer kettleclothes food mixer necklace bedside cabinet

1. Choice of four cooking positions. Comes complete with skewers. Overallheight 33 inch.

2. Thermostat control. Suitable for right or left hand use. Safety thermalcut-off.

3. Picks up a wide range of household and workshop dirt including liquids.900 watt. Complete with tools.

4. Length 16 inch approx. 20-year guarantee on pearls.5. Built-in flash. Motorized film advance. Normal and telephoto lenses.

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6. Special settings for delicates, cottons and permanent press fabrics.7. Mounted on castors. Includes headboard and 3 inch thick mattress. Size

6 ft 3 inch x 2 ft 3 inch.8. Built-in microphone and headphone jack. 240V ac plug or 4 x R14S

batteries.9. Multi-function with defrost capabilities, and special popcorn making

feature.10. Useful cabinet and shelf storage. Size 13 x 12 x 23 inch high approx.11. In' leather look' vinyl. Twin locks with strap and buckles. Comes

complete with wheels and pull-handle.12. Crescendo repeat alarm. Snooze feature. Dial light.13. Copper with whistling spout.14. 3-speed. With detachable stand, power-driven bowl, beaters and

liquidizer. 160 watt15. For 2-4 players. Ages 5 years and over.16. Long, medium and VHF frequency reception. Carrying handle.

ProductsExercise 1.

Your office has been burgled and you need to replace everything you'velost with a colleague. Complete the dialogue using the words in the box.

because complicated enough expensivenoisy old-fashioned not heavy

A. Let's see, do you want to get the same mobile?B. No, the old one was (0)…….. and (1) ………….modern enough so I'd

like to update it.A. Right, and what do you want to do about the photocopier?B. The old one was too (2)……………. It was difficult to hear customers

on the telephone. It was also too (3)..........................so I think we shouldget one that's easier to use.

A. OK, what about your laptop?B. Well, I'm going to get a new one (4).............the other one was too

(5)………………and it didn't have (6)……………..memory.A. OK. I hope it won't be too (7)………………...!

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Exercise 2.You are now looking at a catalogue for new laptops. Match the features with thebenefits.

1. This laptop has a big screen.2. The battery has a long life.3. This laptop weighs only 1.1kg.4. This one uses Bluetooth technology.5. It comes with a carrying case.

a. You don't need to charge it every day.b. This enables you to connect to the Internet anywhere.c. This means it is easy to read.d. You don't have to buy a bag for ite. You will be able to carry it easily.

Exercis 3.Match the adjectives for describing products with their opposites.

1. attractive a. complicated2. easy-to-use b. heavy3. fast c. inflexible4. flexible d. noisy5. light e. out-of-date6. modern f. slow7. quiet g. ugly8. reliable h. unreliable

THREE FACETS OF THE PRODUCTExercise 1.

Vocabulary

the essential basic, primary to scuff- to wear outcomprise to form, maketangible features immaterial characteristicsintangible extras material, real additionsaugment multiplysubtle qualities delicate features

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assurances of distinctive value certainty of a particular quality ofestematethe 'penumbra' an area in which something exists to a lesser or uncertain degree

Essentialbenefit

--

-------Basic product

Productmake-up

--------Real product

Services and intangible Associations --------Total product

The basic product represents the essential service or benefit on offer, e.g. aneasily applied scuff-resistant shoe polish for children's shoes. Usually the basicproduct will get to the most essential benefit of value to the customer, expressed in aproduct form.

The real product will comprise the basic product and an additional 'layer' oftangible features that make up the listed product or service, e.g. design and color,quality specification, brand name.

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The total product will add to the listed product a number of intangible extrasthat augment the offering by adding utility through services (e.g. delivery, customerservice), and perhaps subtle qualities and assurances of distinctive value to thecustomer.

It is probably worth nothing that, in an era of increasing buyer sophisticationand market competitiveness, marketing success is more likely to be achieved by thosecompanies that manage to develop competitive advantage through original serviceofferings and combinations associated with the 'penumbra' of the total product andthe potential it offers for development and differentiation. Alternatively stated, thecritical part of the value chain has shifted from the base product and the productionprocess, to the wider product and the extended organization that supports it.

Exercise 2.After reading the text, give your own examples of the basic product, realproduct and the total product for:

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Products and ServicesExercise 1.Write comparative sentences in the conversation, using the prompts.

A. So what do you think of the new mobile phone model?B. Well, I think the ZX34 has (0) better functions that the ZX33(good /

functions / the ZX33), and I think customers will like the fact that thescreen on the ZX34 (1)__________(big). Also, the video streaming(2)_________(fast / the ZX33).

A. Do you think it will be (3) ________(successful / the ZX33)?B. We certainly hope so. The only problems seem to be that, in the testing

stage, some people say it (4) _________ (difficult to use / the ZX33).Another thing is that the buttons (5) _________(small) and some peopledon't like that.

A. What about cost?B. Well, it (6)___________.(expensive / the old model), but we think

people will be prepared to pay more for better quality. We also have toremember that it (7) _______ (cheap / other models on the market). Wealso have a (8)________(good) payment plan, which we think peoplewill find (9)________(convenient).

Exercise 2.Choose the best verb to complete the conversation.

A. So, Peter, which photocopier do you think we should buy?B. Well, Xcopy (0) produces (produce/can) the cheapest model - it

(1)_________(has / costs) only £599. It (2)________.(can / has) a lot ofnew features and (3)___________(has / can) do colour copies too. It(4)________(has/make) an attractive design and (5)_______ (can/offers)do 200 copies in a minute.

A. So which Internet service provider do you think we should use?B. Well, BusinessNet is the best. It (6) _________(offers/costs) £39 per

month and they (7) ________.(provide/produce) broadband connectionand free upgrades after a year.The service (8)________(has/can) a lot of different functions, but thefastest connection will (9)_______(make/cost) more. They also(10)_______(offer/can) discounts if we use the service in all ourbranches. We (11)_________(can/make) register on-line and an engineerwill come and install the modem and software the next day.

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Grammar references

Adjectives

When we are describing what our companies offer or produce it is useful toknow the right kind of adjectives to use to really illustrate what we want. Sometimesthere are subtle differences between words but knowing that can make all thedifference in clarifying exactly what it is that you want to say. So, find the bestsuitable explanation.

1. Something that is 'good value'...A. is of a good standard especially when compared to other tilingsB. is worm the money it costs.C. costs a lot.

2. Something that is ‘entertaining’…A. is interesting and amusing.B. helps you to achieve what you want.C. gives information that improves knowledge.

3. Something that is ‘modern’…A. is clever and complicated in how it works.B. involves scientific knowledge used to advance industry.C. is newly developed.

4. Something that is ‘useless’…A. does not add to your existing knowledge.B. does not help you to achieve goals.C. does not amuse or interest you.

5. Something that is ‘high quality’…A. is of a good standard especially when compared to other things.B. is of good design.C. looks expensive and chic.

6. Something that is ‘poorly designed’…A. results from bad planning.B. is of no use to anyone.C. uses little technology.

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Products and CompaniesMagimix produces electrical equipment for the home.

Exercise 1.1.1 Read this text about the company. What do you think the missingwords are?

Magimix, Ice-Gleam MakersWe 1....produce.....a range of machines 2………… ice-cream. Our ice-cream

makers 3.........................use in the home.All our machines are 4. ....................... andeasy to use. They are made of high quality, easy to clean material. Our ice-creammakers 5........................ four different models: Gelato 600, Le Glacier 1.1 litre, LeGlacier 1.5 litre and Gelato Chef 2000. All four models 6...................... ice-cream orsorbet.

1.2 Complete the text in 1.1 with these words.produceare available infor makingwell designedcan makeare designed for

Exercise 2.Complete these sentences. Choose the correct words.

1. You can clean the machines easy/easily.2. It's a very quick/quickly method to make ice-cream.3. Our service agents provide an efficient/efficiently service.4. The instruction book gives clear/clearly instructions.5. With our machines everybody can make ice-cream good/well.

Exercise 3.Complete this text with information about another ice-cream maker, the GaggiaGelatiera.

Making time: 20-30 minutesCapacity: 1 litre

Dimensions:

20cm

39cm 29cm

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The Gaggia Gelatiera takes 1.......20-30 minutes….. to make2............................of ice-cream or sorbet. It's 3............................high and4............................wide.The depth is 5............................. .

Exercise 4.Write a description of the Magimix Gelato Chef 2000. Use these notes to helpyou.

Function: ice-cream or sorbetCapacity: 900mlMaking time: 30-50 minsDimensions: 28cm (h) x 35cm (w) x 24cm (d)Features: easy to clean, well designed

Product presentation

Exercise 1.Read the sales presentation of the new video phone and choose the correctanswer.

Do you have friends and family you would like to see more often?When youphone colleagues would you like to see their faces? The Via TV Desktop videophonemeans that you can!

As you can see it's small and elegant and ideal for the office or for the home orfor business trips. It's very easy to set up. All you need is a touch-tone phone. Youdon't need a computer and you don't need any special software. It's also very easy touse; it's as easy as making a normal telephone call. The Via TV Desktop video phonehas many features. Firstly, it has full-colour motion video which means you can seethe other person's gestures and changes of expression. The picture quality is excellentand the adjustable picture setting means you can change to 'sharp' mode to get afantastically clear image. This, of course, is just ideal for viewing designs ordocuments. The audio quality is exactly the same as a normal telephone call. Inaddition, the Via Desktop Video phone also has a preview mode so that you cancheck what you look like before the other person sees you! And finally, the privacymode is an important feature. You can use it to block the image but keep voiceconnection.

Now, of course, just as with any means of communication, fax machines or e-mail for example, each party needs to have a set. We have a special offer on at themoment, so now is the time to buy the Via TV Desktop phone. Put yourself in thepicture.

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1 What is the name of the product?a ViTa Desktop Videophoneb ViaTV Desktop Videophonec Via Desktop Videophone2 The salesperson describes the product asa small and slimb small and attractivec small and elegant3 To set up the product you needa a touch-tone phoneb a computerc special software4 Which special feature does the salesperson not mention?a full colour-motion videob on-screen menusc very good picture qualityd preview modee privacy mode5 In order to see the person you are callinga you need the productb the caller needs the productc both parties need the product

Exercise 2.What benefit does the salesperson emphasise? Who is the target customer, inyour opinion?

Exercise3.Use the answers to complete the summary.Name: The full name of the product is_________________________Appearance: It is___________________________User-friendliness: It is easy to set up - all you need is__________________Special features: The special features include_________________________

in addition it has________________________________Benefits: The main benefit of the product is____________________________

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Grammar References

Learning tips: word-buildingIn English we often combine two nouns. It is important to organise and learn

these two-noun combinations as complete expressions.coffee machineproduct rangesales managercompany brochurestaff traininginstruction book

Do you know the two-noun combinations that mean1. a description of a product?2. a canteen for the staff?3. a conference about sales?

Nouns and Nouns

Complete the tableSales manager

company canteen

business card

telephone call

product description

staff training

office staff

training course

car plant

production department

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Comparing Products and Services

Complete the table

Adjective Comparative Superlativehigh higher

the lowestcheaperbetter

the worstconvenient

more stylis

Keatings CompanyExercise 1.Keatings did a survey last month. They asked their customers to compareshopping in their stores with shopping in boutiques and department stores. Look atthe results of the survey and complete the sentences. Check any new words in yourdictionary.

Keatings stores Department stores Boutiques storesClothes prices *** ** *Quality ** ** ***Shoppingconvenience

*** ** **

Style ** ** ***Value for money *** ** *

* not very good ** average *** very good

1. The prices in boutiques are (high) ... higher than in Keatings.2. The quality of the clothes in boutiques is (good) ........................in Keatings.3. Shopping at Keatings is (convenient).................. shopping in boutiques.4. The clothes in boutiques are (stylish).................. in Keatings.5. The value for money at Keatings is (good) ........................in boutiques.Exercise 2.Look at the results again. Which type of shop1. is the cheapest?2. offers the best quality?3. is the most convenient?4. has the most stylish clothes?5. offers the worst value for money?

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Products and IndustriesWrite the products in the correct box. Some words can go in more than one box.

books engines fruitpasta medicines tinned tomatoesplastics ships spare partsferries olives vegetablescars cloth olive oilbeer clothes TVs and radios

Industries Products

Agriculture olives,

Electronics

Chemicals

Brewing

Publishing books,

Fashion

Shipbuilding

Food and food processing

Engineering

Car and truck

manufacturing

Textiles

Pharmaceuticals

Add other industries and products you know.

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A CLASSIFICATION OF PRODUCTS

The abundance of goods, encountered in real life, has led to the need to classifythem as to create favorable conditions for their acquisition of customers, and facilitatethe work of people involved in market research and product development. In terms oftype of market in which there is a realization of the product, goods are divided intodifferent groups.

Consumer goods - are goods and services intended for the end consumer(personal, family or household use). We use them in everyday life (food, clothing,furniture, cars).

Industrial goods and capital goods - goods purchased by individuals or privateorganizations for further processing or for use in economic activities.

The main difference between consumer goods and capital goods is the purposefor which this product is purchased.

If a consumer acquires a lawn mower to trim the grass around his house - isconsumer goods, as if to study landscape design, the tool becomes an industrialcommodity. Or another example, bakery and confectionary factory buy flour forbaking bread and confectionery and packaging materials for their packaging beforesale. In this case, flour and packaging are considered as consumer goods or capital

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goods. Acquisition of the same population of flour for making food at home is aprerequisite for its referring to consumer products.

For purposes of marketing and strategy analysis, it is useful to classify productsinto broad types, according to shared characteristics. Figure 1 presents a standardclassification of products.

Capital goods are divided into:· raw materials and components,· capital equipment,· auxiliary materials and services.Under the raw material we understand agricultural products (wheat, cotton,

meat, livestock, fruits, vegetables) and natural products (fish, timber, crudepetroleum, iron ore).

Ready-made materials and components include material components (iron,yarn, cement, wire) and components (small electric motors, tires, cast fittings). Thematerial components are usually finalized later - for example, from yarn wovenfabric, and accessories included in the final product fully, without any changes.

Capital assets are manufactured goods, which help the buyer in its productionactivities or other operations. To the capital assets we refer fixed structures andauxiliary equipment (factories, offices, generators, drilling machines, computers,lifts).

Support materials and services include working materials (lubricants, coal,paper, pencils), as well as materials for maintenance and repairs (paint, nails,brushes).

Goods impulse buying, generally acquired without any prior planning andsearch, and committed under the influence of factors, which couldn’t be planed inadvanced. For example, books, magazines, chewing gum, candy. Especially whenthey are sold in unexpected places: coffee and ice cream in a pharmacy. It isimportant to ensure that the calculations of the goods in a conspicuous place.

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Emergency purchase of products - drugs, umbrellas, spare parts for machinery,etc. Broken by the wind umbrella in rainy weather, the necessary medicines whenfalling ill, dictate the need to supply the goods for sale at the right time and in theright place.

Products that can meet the same needs of customers, known as interchangeableor alternative (tea - coffee, butter - margarine).

Products that complement each other (and cassette tape recorder, camera andfilm), - complementary.

Exercise 1Vocabulary

lawn-mowers a machine with a rotary blade that cuts the grass of a lawnacquisition possession, gain, propertyirretrievable impossible to recover or repair.derived demand the demand for a factor of product that results from the

demand for the products that it used to make.trial test, experimentprotracted to extend in time; prolong.contractual specified in a contractextending stretch, reach, spreadexhaustive complete, all outchinaware tableware, ornaments, or the like made of china.modular linkage attachment, connection designed with standardized units that may be arranged or connected in a variety of waysvalves any device for controlling the flow of a fluid or gas

Durables↔ Consumables ↔ServicesConsumer products Industrial products

Convenience goodsShopping goodsSpecialty goodsServices

Capital items and equipmentMaterials and componentsSuppliesServices

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• Durability: a useful distinction is that durable products last some time, whileconsumables or non-durables are used up in a short time. While services may vary intheir durability, in that for instance a repair service may render a repaired item ofsome further use for a time, services are usually categorized separately.

• Durable goods are products that have an extended period of use, e.g. washingmachines, cars, lawn-mowers, machine tools. They are usually relatively complexfabrications, higher-priced, and normally bought as part of an investment oracquisition decision. While manufacturers of such products compete over time bycontinual product improvement and innovation, the marketing task is made difficultby the fact that replacement purchases can often be postponed.

• Consumables are products that are literally consumed in the immediate or short-term, after a limited number of uses or doses. While many consumer products such asfoodstuffs, drinks, and household products are typical examples, industrial productssuch as raw materials and nuts also fall within this classification. From a marketingviewpoint, consumable product markets have high purchase frequency and oftenrequire mass distribution to many purchasers; while the competitive nature of themarket is often reflected in keener prices and margins, high promotion spending, andproduct-switching behavior among buyers.

• Services may be seen as specific types of product that offer benefits throughperformance rather than use, acquisition or possession. The intangibility of servicesposes particular problems for marketers in promoting and demonstrating value tocustomers. Other characteristics that typify services are their perishability – an

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unused tableplace at a restaurant represents an irretrievable commercial loss – and thefact that quality varies according to the efficiency of the provider staff and theirorganization. In both consumer and industrial markets, services have grown inimportance in recent years, so that in most western economies the service sectornowadays accounts for the major part of the employment market. A detailedexamination of the marketing of services will be made later in the text.

Consumer productsConsumer products are products bought by individual consumers or households, forpersonal use or consumption. The sub-categories introduced in Fig 4/1 are based ondifferences in consumer buying behavior, rather than the products themselves.

• Convenience goods: These represent the majority of frequently purchasedconsumer goods, bought with little effort or deliberation, e.g. breakfast cereals,coffee, soap. These products form the classic mass markets, where the total marketvolume and spread requires convenient supplies, accessible through everydaychannels such as supermarkets and corner stores. Within this category, somecommentators distinguish between staples, the standard products bought as part of aneveryday shopping-list, and impulse goods, bought without any planning at all, oftenon impulse, e.g. chocolates and sweets sold at supermarket checkouts.

• Shopping goods: These are goods where consumers literally 'shop around' beforepurchasing , in order to compare price, quality, design features and the like.Furniture, clothing, and household utensils would fall within this category. Though

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comparisons will be made in shopping for these products, they are still common-place purchases with volume markets, so that consumers will expect to find a readyselection in the high street, or even under one roof - search behavior is therefore notnecessarily exhaustive or extensive.

• Speciality goods: These are usually higher-quality, higher-value items with adegree of uniqueness that is so valued by consumers that a greater effort will be madeto search out the product. Commonly cited examples of such products would includefine chinaware, exclusive designer clothing, sophisticated photographic equipment,hi-fi innovations, high-performance luxury cars. The more limited market for suchproducts, and a supplier concern for an exclusive image, usually means distributionthrough a smaller number of retail franchises, and a more subtle handling of themarketing task overall.

Consumer services: These represent a wide and growing variety of offerings,from local services of long standing, such as hairdressing and car repairs, to morespecialist services offered through a developing professional infrastructure, such asprivate health care. A more recent distinction, between private sector and publicsector services, has resulted in a new-found interest in marketing and customerservice, among supplier organizations and consumers alike.

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Industrial products, sometimes termed business products, are products boughtfor use in making other products and services, within a business setting. Unlikeconsumer goods, they are bought not for their own sake or for personal consumption,but in order to contribute to a commercial manufacturing or service operation. In aneconomic sense, they are intermediate products or inputs, the demand for which willultimately be tied to the requirements of final markets, for ordinary household goodsand services – a relationship that is termed 'derived demand'. For this reason,industrial markets often experience periodic fluctuations in demand, or industrycycles, that represent exaggerated whip-like reactions to more marginal variations inrelated consumer goods markets. Figure 4/1 distinguishes a number of industrialproduct sub-categories, according to their use as inputs to the production process.

• Capital items and equipment: These represent heavier but indirect inputs to thesupply-delivery process. Capital items will comprise large investments in fixedfacilities such as plant, buildings and stationary installations. Such big-ticketinvestments will be the subject of carefully prepared production plans, designinvestigations and trials, protracted supplier discussions and negotiations. Marketingsuch products will involve direct links with prospective purchasers, specialist-to-specialist technical contacts, pre-sale service, and often contractual relationshipsextending far beyond the installation and commissioning stage.Though no hard-and-fast distinctions exist, equipment will typically compriseportable production machinery, tools and accessories, and other items such as officeequipment, used in support functions within the organization. These itemsindividually represent less heavy investments, though in total they will comprise keysystems, often built in modular linkages of compatible elements. Technology changesand periodic systems re-design will likely make for a limited in-use life of suchequipment, so that purchases will be depreciated over a shorter period than that formajor capital items. In marketing terms, equipment markets will be characterized bya number of competing suppliers, offering varying degrees of compatibility atcompetitive terms. Specialist stock-holding channels and other intermediaries mayexist to serve the market at large, while manufacturers may deal directly with majorcorporate customers.

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• Materials and components: These will represent the physical inputs to thefabrication or delivery of the final product. Materials may range from raw materials,often bought direct from domestic or overseas suppliers on longer-term contracts, toprocessed materials such as chemical formulations, sourced either directly or throughintermediaries. Contractual arrangements may be preferred by customers wherevolumes allow, in order to assure continuity of supply and quality standards.Promotional elements are unlikely to feature heavily in the marketing of materials, asstandard grading systems may limit competition to differences in price, contractualback-up and distribution arrangements.Components may vary from standard items such as valves, pumps and switches,to more specialist or customized items, fabrications and sub-assemblies. Whilestandard items may be bought in by volume-contract arrangements, or multiple-sourced through outside suppliers and distributors, key components and customizedparts may be the subject of vertical contracting arrangements. Such subcontractorrelationships may involve close collaboration between customer and supplier,increasingly following Japanese-style linkages through JIT (just-in-time) principles,quality assurance vetting, and computer-aided design (CAD) systems. Whilecompany and industry practices obviously vary, it is difficult to generalize onmarketing practices within such markets, though recent trends in globalisedmanufacturing, and parallel moves towards EC integration, spell out a generallytightening competitive scene.

• Supplies comprise a variety of items that are indirect inputs into the productionprocess. These may vary from factory floor requirements such as lubricants, abrasivesand cleaning materials, to office sundries such as paperclips and notepads, and awhole miscellany of other items needed for various functions within the organization.As many of these items are standard, purchasing decisions will be made routinely,and perhaps devolved to lower levels throughout the organization. Marketing of suchproducts is likely to hinge on ready availability through intermediaries, supported byprice promotion and regular sales and service cover.

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• Services in industrial or business markets will be an important though indirectsupport to the production process. Routine and standard services such as office-cleaning, catering, haulage or vehicle hire are likely for heavy-use customers to bethe subject of revolving contract arrangements. Specialist business services such asmarket research, accountancy, advertising or management consultancy are likely tobe sourced and managed through the offices of relevant functional managers, whowill select and liaise with the specialist outside supplier(s) chosen. Very largeorganizations may have sufficient workload in specialist areas such as marketresearch, to justify an in-house subsidiary agency. Similar open-market dealings maybe engaged in within other functional areas, where opportunities are seen to marketspare corporate capacity, for instance through contracted R&D facilities.Servicing of key equipment and installations such as computers, will nowadays beintegral to supply contracts for the hardware itself, though technology moves havecreated a ready market for hi-tech advisory services in fields such as expert-systemssoftware development for non-standard applications.

Exercise 2.Complete these sentences with appropriated word from the box

extended supplies components services consumablesintangibility industrial convenience specialty # consumercapital items and equipment

1.__________may vary in their durability.2. Durable goods are products that have an __________ period of use.3. Foodstuffs, drinks, household product and industrial products such as rawmaterials and nuts are____________products.4. The _____________ of services poses particular problems for marketers inpromoting and demonstrating value to customers.5. ______________ products require convenient supplies, accessible througheveryday channels such as supermarkets and corner stores.6. Chinaware, exclusive designer clothing, sophisticated photographicequipment, hi-fi innovations, high-performance luxury cars are ___________ goods.7. ____________ services represent a wide and growing variety of offering.8. _______________ products are ones bought for use in making other products andservices.9. ___________________________ marketing will involve direct links withprospective purchasers, pre-sale service.10. _______________ may vary from standard items to more specialist orcustomized items.11 Marketing of ________is likely to hinge on ready availability throughintermediaries, supported by price promotion and regular sales and service cover.

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Food and DrinkWrite a title from the list in each box below.

Fish Meals Soft DrinksHot Drinks Methods of Cooking PoultryVegetables Parts of a Meal Meat

Add other food and drinks you know.

Word CombinationsComplete the tables.

Verbs and Nouns (1)

Verbs Nouns

buy food products

manage building projects

design car engines

deal with visitors

buy food products

manufacture cars

produce books

Methods of Cooking bake, boil, fry

anchovy, salmon

apple juice, mineral water

starter, main course

chicken, duck

leek, lettuce

ham, lamb

tea, cappuccino, espresso

breakfast, lunch

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export olive oil

organise training courses

import wine

sell computer systems

Add other words you know.

Verbs and Nouns (2)join a company

transfer to a department

resign from a job

build a plant/factory

launch a product

open an office

Add other words you know.

Products’ TermsExercise 1.

Use the following terms to complete the definitions below:

brand productproduct line product mixline-stretching line-fillingproduct elimination convenience goodsshopping goods speciality goods

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1. A.........is a name (or sometimes a sign, symbol or design) used to identify thegoods or services of a particular manufacturer, seller or supplier, and todifferentiate them from the goods or services of competitors.

2. A.........is defined by marketers as anything capable of satisfying a need orwant (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 samefunction 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 timeto make a selection.

8. ..........is the process of withdrawing products from the market when they are nolonger profitable.

9. ..........means adding further items in that part of a product range which a linealready covers, in order to compete in competitors' niches, to utilize excessproduction capacity, and so on.

10. ..........means lengthening a company's product line, either moving up-marketor down-market in order to reach new customers, to enter growing or moreprofitable market segments, to react to competitors' initiatives, and so on.

RoboDog

Exercise 1.In each sentence there is one wrong word. Underline the wrong word and writethe correct one on the right.1. What memories does it have? ___________2. It costs about 12 kg. ___________3. The off-board camera allows the owner to see the robot's environment.___________4. What is it call? ___________5. A gadget is a small device or machine without a particular purpose. ___________6. It has a 512MB built-out memory. ___________7. Can you explaining that to me again? ___________8. How length is it? ___________

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Exercise 2.Write one word in each gap to complete the e-mails. The first letter has beengiven to help you.

Dear Mr. Hunter,Thank you for your email.Please accept my (1) a………… for the faulty goods that you received last week. Ican (2) a…………. you that this will not happen again and that we will replace yourgoods immediately. The faults were (3) d…………..to technical problems in ourproduction department and I am (4) p…………….to tell you that production is nowback to normal.If I can be of further (5) a……………, please do not (6) h………..to contact me.Best wishes,

Dear Anna,

(7) U………….we are going to have to postpone our meeting next week. The (8)r......................for this is that I have to attend an important client meeting in Dublin.It is still very (9) i……………..that we meet so we (10) m…………..try to fix a newtime for either Thursday or Friday. Can you let me know which day is best for you? Ihave good (11) n.....................about the order so I will bring the details with me nextweek.Please (12) a........................my apologies for forward to seeing you soon.

Regards,

Intelligent skillsExercise 1.Find a word related to each due. The first letter has been given to help you.1. When a product is easy to operate it is u________.2. When a product helps or allows you to do something, it e_________you to do it.3. When a product ensures something, it g_________it.4. When a product comes with certain functions or attachments, it i_________them.5. When a product is perfect for a certain audience, it is d_________ for them.6. When a product makes something possible for you, it means that you c_________do it.

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Exercise 2.

Complete the sentences with a word or phrase from the box.

well-constructed state of the art massivetough sophisticated tailor-made

1. To match the client's requirements exactly, the product will have to be _________.2. This is the most modern technology available on the market at the moment - it's_________.3. The size of this project is huge - in fact, it's _________!4. The quality of this product is superb. It's extremely _________.5. The technological solution for this was very complex and _________ .6. During tests this product proved to be _________and resilient.

Exercise 3.

Decide which of the alternatives (A-G) each speaker is talking about. Write theletter of your answer in the box at the end of the sentence.

1. I'll check for you and get back to you within thehour.2. 'I'm very sorry about that.'

3. There was a fault with the product –the A 272

4. ‘We can replace it by tomorrow afternoon. Is thatOK?’5 ‘There was a manufacturing problem but we haveresolved that now.’6 'I'm really sorry again.'

7 'Is that solution OK with you?'

A. Apologising stronglyB. Offering a solutionC. Giving reason for the problemD. Confirming details of the problemE. happyF. Apologising againG. Promising to investigate and call back

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Dyson vacuum cleanersExercise 1.Look at the Dyson vacuum cleaners and answer the questions.

1. How are these Dyson products different from most vacuum cleaners?2. Who is the target customer for this product in your opinion?

Exercise 2.

Which words describe these vacuum cleaners?

crazy dull eye-catching funinnovative stylish old-fashioned traditionalhigh performance high quality reliable

Exercise 3.

Read what the Dyson company literature says about this product. Why are thecolours grey and yellow used? Are they effective?The silver-grey body, like machined aluminium, resembles a piece of aircrafttechnology. Yellow is used to highlight the important parts and give it a sense offun.

Exercise 4.

Read the extract from the brochure and say what these figures refer to.a 1978 b 5 c 5,127 d 23

· In 1978 James Dyson had an idea for inventing new vacuum leaningtechnology. It was the same year that his third child, Sam, was born.

· 5 long years and 5,127 prototypes* later, this idea became a working model.· It was another 10 years before it began to be manufactured nder his own name.

By this time, both Sam and his invention were 15 years old.Just 23 months after launch in the UK, his invention ecame Britain's best-sellingvacuum cleaner, overtaking sales of Hoover, Electrolux, Panasonic, Miele and allother vacuum cleaners.

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Doing a Dyson

· prototype: an example design produced for testing· launch: putting a new product on the market

Exercise 5.Work in pairs and discuss these questions.

1. How long did it take to launch the product? Do you think this is normal?2. Why do you think there were so many prototypes?3. Who are Dyson's main competitors?4. How successful is his business today?

Exercise 6.Now quickly read a magazine article about James Dyson's product.

1. What did Dyson win and why?2. What doesn't the Dyson vacuum cleaner have?3. Where did Dyson get backing (money) for his invention? Why didn't he get it

in Britain?

James Dyson the man who launched a multi-million pound business with a new type of

vacuum cleaner, won the European Design Prize last night."I am absolutely delighted," said Mr. Dyson " to win the award for something

that uses technology rather than something that just looks good."Mr. Dyson's vacuum cleaner marked the biggest change in the battle against

house dust since Hubert Cecil Booth, a Scot, invented the first 'suction cleaner' in1901.

Dyson's appliance* does not use bags to collect dust. Mr. Dyson, who trainedin interior design at the Royal College of Art, invented the machine in the 1980s byconverting an old vacuum cleaner using pieces of swimming pool hose.

British firms turned him down so the inventor had to go to the United Statesand Japan to get backing. "That is the British disease I'm afraid." he said. "We have a'can't do' attitude, whereas many of our competitors are much more aware of theimportance of innovation*." But he also had to fight in the American courts to stopothers stealing* his idea.

This award shows how important design is — the company had a turnover ofzero pounds three years ago and has a turnover of £100 million today.

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* appliance: piece of electrical equipment* innovation: creating new inventions or ideas* to steal: to take something without permission The Guardian

Exercise 7.The following sentences tell us about five different events in the developmentprocess. Put them in the correct chronological sequence.a. Dyson won the European Design Prize last night.b. Hubert Cecil Booth invented the first vacuum or 'suction' cleaner in 1901.c. Dyson studied at the Royal College of Art.d. He went to the United States and Japan for development backing.e. The company had a turnover of zero pounds three years ago.

Vocabulary.Word partners.

Exercise 1.Underline the following words in the text James Dyson(page ), then match averb and a noun to make word partners.

Verb Nounto get a machineto steal a prizeto invent an ideato win backing

Exercise 2.Complete the sentences with word partners from the box above. Be careful withthe tense.1. He ________ __________ for best designer of the year.2. In 1901 Cecil Booth ______. It was called a 'suction cleaner'.3. Dyson didn't want people to ______ his _______ before he launched the vacuumcleaner.4. Developing the vacuum cleaner was an expensive process, so Dyson needed to_______ _________to complete the project.

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Exercise 3.Complete the table using words from the text James Dyson(page 45).

Verb Noun Noun Person

to award 1____________

2_______________ invention 3________________

4______________ development 5________________

innovate 6_____________ Innovator

compete competition 7________________

Exercise 4.Use one of the forms to complete the sentences.

1. All inventors are ________ because they are creating something new.2. The ___________of the computer changed the way we work.3. It can take years to research and __________new drugs.4. There were hundreds of first class companies to consider, so they were

delighted to win the_________ against such strong ___________.

READINGExercise 1.Read the dialogue and answer the questions.

1. How does Verena Adams describe advertising? Complete the sentence:Advertising is a__________________ , it can work in different ways.2. What are the four ways in which advertising can work?3. Make notes about how to advertise Tango, (a soft drink), and a car.

Tango a car

Targetaudience

a____________________________ not given

Design ofadvertisement

eye-catching andb____________________________

press ads with details ofc________________________________________

Style ofcampaign

crazyd_________________________________________

not given

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Media Television Press ads and e______________________

as back-upPurpose ofadvertisement

to motivate the market to buy to f________________________

4. What is the function of the advertising agency?5. What makes a good advertisement in Verena's opinion?

DIALOGUEInterviewer : Verena, how important is advertising in selling products?Verena Adams : Well, it's an important marketing tool, and it works in a number

of different ways.Int: What are some of the ways it can work?VA: Advertising can inform or persuade or remind or motivate; obviously the type

of ad depends on the product.Int: Oh, I see, but could you give us an example?VA: Well, erm, for example - a low cost, erm low cost fast moving consumer goods,

erm like chocolate bars or soft drinks, erm are going to be advertiseddifferently from consumer durables like televisions or washing machines.You'd advertise Tango differently from the way you'd advertise a car.

Int: Right, so how would a Tango advertisement work?VA: Well, Tango's a fizzy drink, an orange fizzy drink in a can, erm, so it's aimed at

the teenage market.You'd go for eye-catching, attention-getting advertising; you'd try to create amodern brand image.

Int: Uh, hu.VA: Erm, television ads which were created, erm, had a very crazy, funny,

colourful campaign, erm aimed to motivate the teenage market to buy; and theywere very successful.

Int: I see. How about advertising a car?VA: Well for a car you're into a different product sector, erm, and a different target

audience. You're trying to persuade that market to spend a lot of money, soyou'd go for press ads, with lots of copy -details of the models and the pricesand the features and all that kind of thing - and you'd probably back it up with atelevision campaign to show the cars in action.

Int: Who decides, then, who actually decides which sort of media to use?

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VA: Erm, well, advertisers go for different mixes of media, erm but basically it'sthe advertising agency, who makes the choices; the agency is the link betweenthe manufacturer of the product and the public, and erm, they create a brief ofthe different, of the most suc... most useful kinds of media to use.

Int: What do you think makes a good advertisement, then?VA: In my opinion, a good advertisement always concentrates on the product.

Exercise 2.Verena Adams talked about the role of advertising in selling products. Work inpairs and discuss the following points.Verena mentions two types of product: fast moving consumer goods (fmcgs) andconsumer durables. Which type of product:

1. does the consumer buy often and use quickly?2. does the consumer buy occasionally?3. is more expensive?

Exercise 3.

Which category do these items belong to?

shoes canned drinks computersenvelopes compact disks clohtesbeer washing machines meattelevisions CD players chocolatecars fruit wine

Exercise 4.

Make a list of different types of advertisements, and say which ones are used forfmcgs and which ones for consumer durables?

Example: TV adverts - consumer durables e.g. cars, and fmcgs e.g. chocolate.

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Product LinesExercise 1.

Match up the following words with the underlined words in the text:

additional goal production weakenstoppages continual handlingseeking discontinuing phasesunchanging expand present

Most manufacturing companies have a product mix made up of a number ofproducts, often divided into product lines. Since different products are always atdifferent (l) stages of their life cycles, with growing, (2) stable or declining sales andprofitability, and because markets, opportunities and resources are in (3) constantevolution, companies are always looking to the future, and re-evaluating their productmix.

Companies (4) pursuing high market share and market growth generally havelong product lines. Companies whose (5) objective is high profitability will haveshorter lines, including only profitable items. Yet most product lines tend to (6)lengthen over time, as companies produce variations on existing items, or add extraitems to cover (7) further market segments. Established brands can be extended byintroducing 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 tocannibalization if consumers cannot perceive the difference between products, i.e. thenew product will just eat into the sales of existing products.

Stretching a line to the lower end of a market will generally (9) dilute acompany's image for quality, and a company at the bottom of a range may not be ableto convince dealers and customers that it can produce quality products for the highend.Consequently companies occasionally have to take the decision to prune or shortentheir product lines. Quite simply, a product line is too short if the company couldincrease profits by adding further items, and it is too long if they could increaseprofits by (10) dropping certain items.

Adding items to a product line results in a variety of costs, in design andengineering, carrying inventories, changing over manufacturing processes, (11)processing orders, transporting goods, promoting the new items, and so on. Producingfewer items generates savings because it allows companies to have longer productionruns with less (12) downtime because of changeovers, it requires less plant andequipment, it reduces inventory, it simplifies planning and control, and it allows moreconcentrated 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.

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Exercise 2.Complete the spaces in the sentences below according to the previous text:

1. Many companies have a...............consisting of a number of products.2. These products can have growing, ................, or declining sales, depending onwhere they are in their................ .3. Companies looking for high...............generally have long product lines, whilecompanies seeking high...............will have shorter lines.4. Yet most product lines tend to...............over time, as companies add extra items tocover 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, youwill need to carry more................10. On the contrary, producing fewer items generates................11. With fewer products you have longer...............with less...............caused bychangeovers.12. But of course companies mustn't abandon................

Phrasal Verbs - Product LinesExercise 1.

Match up the phrasal verbs on the left with the verbs that have a similar

meaning on the right:

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Exercise 2Complete the text using the correct form of the phrasal verbs above.

Most companies regularly (1).........new items, stretching and filling theirproduct lines, (2).........opportunities to increase sales and earn more profits. But theseadditions are not always successful. Some items just don't (3)........., and areinsufficiently profitable. So the company has to (4).........regular cost and salesanalyses of the entire product line, taking account of opportunity costs, and then(5).........poorly performing products. Obviously the brand managers and the otherpeople involved aren't happy to see their products (6)........., and may consider thatmonths or years of work are just being (7)..........but no company can (8).........profits.The same is true of products that were once successful but are now no longerprofitable: if sales have (9)........., a company that is (10).........will abandon them to(11).........new items.

1. account for (the rise in profits) a. accept

2. bring out (a new product) b. decrease, become fewer or less

3. carry on (in the same old way) c. begin to be successful

4. carry out (a market survey) d. continue

5. come up with (a new idea) e. destroy or abandon

6. do without (a pay rise) f. find space to give to something else

7. (production levels) drop off g. get rid of, discard (because unwanted)

8. give up (production of the 320$) h. have, create ideas

9. go along with (the decision) i. make up, constitute a figure

10. kill off (a silly project) j. perform, undertake, or do

11. look ahead to (the future) k. produce, launch

12. look for (a new solution) l. remove (from something larger)

13. make room for (furtherexpansion)

m. agree to stop or discontinue

14. take off (after performing lesswell)

n. survive or live while lackingsomething

15. throw away (some good ideas) o. think about, prepare or plan the future

16. weed out (uneconomicdepartments)

p. try to find

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It is quite often the case that about 20% of a firm's products (12).........mostof its sales, so there are lots of products that could be abandoned. Their managersprobably won't (13).........without a fight, but they have no choice but to (14).........thefinancial imperatives. On the other hand, it is more difficult to (15).........ideas fornew products than to (16).........producing poorly selling ones.

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Unit 2.

THE PRODUCT LIFE CYCLE

Exercise 1. Vocabulary

gestation the period during which a scheme, plan, idea, or the like is beingdeveloped.

adolescence the period between childhood and adulthood.maturity the state of being fully developed.demise the end of existence or operation.revenues the sales and any other taxable income of a business (e.g. interest earned from money on deposit).to recoup to regain, or recover an equivalent in value of, (something lost,

stolen, or damaged).saturation the act or process of filling, soaking, or absorbing.outlays expenditure, expansesdrastically extremelyto linger to remain or be slow to leave.fad a fashion or behavior taken up briefly

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Product Life Cycles

Fig.1. The basic product life cycle model.

Read the text and be ready to discuss.The concept of a life cycle has over the years become an accepted part of

marketing theory, providing a potentially valuable analytical and strategic tool. Thebasic life cycle pattern borrows heavily on the biological model of successive lifestages, from gestation and birth, through adolescence to maturity and eventualdemise. The marketing translation of this progression is illustrated in simple form inFig. 1.

Introduction: In the immediate post-launch period sales build rather slowly,while

financially the product has not recouped the resources put into its development,during what is strictly speaking a prior stage, gestation.

Growth: The product 'takes off, gaining market share and an early majority ofbuyers. Profits grow.

Maturity: For many products the longest period, beginning with continuedsales growth that eventually slows as saturation approaches. Profits dip later in thisperiod, as marketing outlays are stepped up to counter competitor.

Decline: Sales may fall drastically, or the product may linger unhealthily forsome time. Profits fall appreciably, giving way to, sometimes heavy, losses.

The generic product life cycle (PLC) model is commonly depicted as a bell-shaped curve, though variations are sometimes introduced to illustrate special cases,e.g. the inverted V-shape of a short-lived fad or novelty product, or the scallopedshape that might be associated with a fashion product adopted by 'waves' of

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followers. Individual products are accepted as each having a unique pattern, in termsof sales-profits volume, gradient, shape and duration. Longstanding brand-leaderproducts are likely to show an extended 'read-out' of ups and downs that reflectmarket trends, competitor activity and company marketing successes. In practice, ofcourse, most veteran brands will have undergone major product and marketingchanges over the years, if only to survive!

Over the course of the product life cycle, changes are likely to be registered interms of

· market size and growth· customer types· the dynamic interactions between company marketing strategies and

those of competitors.These differences may both reflect and partly determine the successive stages

within the cycle.

INTRODUCTION GROWTH MATURITY DECLINECHARACTERISTICS

SALES LOW FAST SLOW DECLINEPROFITS NEGLIGIBLE PEAK LEVELS DECLINING LOW/ZEROCASHFLOW NEGATIVE MODERATE HIGH LOWCUSTOMERS INNOVATIVE MASS MARKET MASS MARKET LAGGARDSCOMPETITORS FEWER GROWING NUMEROUS FEWER

EXPANDMARKET

MARKETPENETRATION

DEFENDSHARE

PRODUCTIVITY

RESPONSESMARKETINGEXPENDITURE

High High (declining %) Falling Low

MARKETINGEMPHASIS

Productawareness

Brand preference Brand loyalty Selective

DISTRIBUTION Patchy Intensive Intensive SelectivePRICE High Lower Lowest RisingPRODUCT Basic Improved Differentiated Rationalized

Fig.2. Marketing implications of the product life cycle.

Marketing strategies over the cycle are difficult to summarize, though it mightbe possible to suggest that in the earlier period market development is the watchword,in the growth stage strategy becomes more offensive, while in later stages defensiveand consolidation strategies predominate. A more detailed outline of strategy changesover the PLC has been presented by Doyle in his article 'The realities of the productlife cycle’, and appears in summary form in Fig. 2. For a fuller information, thereader would benefit by referring to the complete article, which has become alandmark in the literature.

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Exercise 1.Read the text and then decide whether the statements after the text are TRUE orFALSE.

The sales of most products change over time, in a recognizable pattern whichcontains 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 slowgrowth. Only a few innovative people will buy it. There are probably no profits at thisstage because of the heavy advertising, distribution and sales promotions expensesinvolved in introducing a product onto the market. Consumers must be made awareof the product's existence and persuaded to buy it. Some producers will apply amarket-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 priceas possible, in order to attain a large market share. There is always a trade-offbetween high current profit and high market share.

During the growth period, 'early adopters' join the 'innovators' who wereresponsible for the first sales, so that sales rise quickly, producing profits. Thisgenerally enables the producer to benefit from economies of scale. Competitors willprobably enter the market, usually making it necessary to reduce prices, but thecompetition will increase the market's awareness and speed up the adoption process.

When the majority of potential buyers have tried or accepted a product, themarket is saturated, and the product reaches its maturity stage. Sales will stabilize atthe replacement purchase rate, or will only increase if the population increases. Themarketing manager has to turn consumers' brand preferences into brand loyalty.

Most products available at any given time are in the maturity stage of the lifecycle. This stage may last many years, and contain many ups and downs due to theuse of a succession of marketing strategies and tactics. Product managers can attemptto convert non-users, search for new markets and market segments to enter, or try tostimulate increased usage by existing users. Alternatively they can attempt toimprove product quality and to add new features, sizes or models, or simply tointroduce periodic stylistic modifications. They can also modify the other elements ofthe marketing mix, and cut prices, increase advertising, undertake aggressive salespromotions, seek new distribution channels, and so on, although here additional salesgenerally come at the cost of reduced profits.

A product enters the decline period when it begins to be replaced by newones, due to advances in technology, or to changes in fashions and tastes. When aproduct has clearly entered its decline stage, some manufacturers will abandon it inorder to invest their resources in more profitable or innovative products. When somecompetitors choose to withdraw from a market, those who remain will obviously gaina temporary increase in sales as customers switch to their product.

Not all products have this typical life cycle. Some have an immediate rapidgrowth rather than a slow introductory stage. Others never achieve the desired sales,

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and go straight from introduction to maturity, although of course this should havebeen 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 - havedistinct life cycles, both rising and declining very quickly.

Statements.1. The introduction stage of a new product is not usually profitable.2. During the introduction stage, marketers are trying to create brandpreference.3. A producer seeking maximum profits will apply a market-penetrationstrategy.4. The entry of competitors onto the market will make more consumers awareof 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 newcustomers.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.

Grammar ReferencesTime Sequences

Re-read the text on Product Life Cycles, and then choose expressions from thelist above to begin the following sentences. The expressions below can also beused to describe sequences of actions taking place over extended periods oftime.

At first…Initially…To start with…

Secondly,Thirdly, etc.

Then…Later…Later on…Aftewards…Subsequently…

At this point or stage…During this time…Meanwhile…

Eventually…In time…Ultimately…

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1...........companies have to advertise and promote heavily.2...........companies have to choose between high profit and high market sharestrategies.3...........competitors will probably enter the market.4...........economies of scale begin to lower costs.5...........growth is slow and expenses are high.6...........marketers have to build up brand loyalty.7...........marketers have to turn this awareness into a desire to purchase the product.8...........new products will appear and begin to replace the existing one.9...........sales begin to rise quickly.10...........sales will only increase if marketers can expand the whole market, or findnew uses or users for the product.11...........the company will choose to abandon the product.12...........the market will become saturated.

EXTENSIONS ON LIFE CYCLE ANALYSIS

Exercise 1.

Complete the table with appropriated words from the box.

Sandora beverages Roshen alcoholic beveragesBiola juice Tuborg chocolatebeer Carlsberg Milka Stella ArtoisSnickers sweets Winniefruit

Product Class Product Form Brands

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Reading.

Extensions on life cycle analysisFrom the earliest interest in the generalized 'product' life cycle, research has

moved on to distinguish at least three distinct levels of aggregation:· that for the product class (e.g. breakfast cereals)· the product form (e.g. health-conscious cereals)· the specific product or brand (e.g. Alpen). Working at an analysis of three levels of market sales, it is possible to more

realistically locate the position and prospects of one particular product orbrand, and make strategic decisions in the light of market and sector trends,competition and general performance indicators.

Figure 1. illustrates such a three-level analysis, showing a scenario with threecompetitor brands.

The picture is one of a product class in slow decline, and a falling product formcycle within which Company B Brand has long overtaken

Company A Brand, a product form competitor. More significantly, the arrivalof Company C Brand has introduced a new product form, which appears now tothreaten the market sector for A and B, and add a new growth source to the total(product class) market. Clearly, Company B in particular will need to re-assess itsprospects, and perhaps modify its product or consider entering the 'new form'

product market

Fig. 1.Three-level life cycle analysis.

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Uses of product life cycle analysisUsed carefully and with the support of appropriate research, the PLC provides

valuable insights into product strategy and market change. Mapping the path of bothcompany and competitor brands, product form and general market sales, assists thecompany in reaching decisions about new product development or productmodification, as shown in Fig. 1. Across the life of a product, PLC analysis mightenable a company to better exploit product potential, and to avoid projected problemsby well-timed strategy changes. Such a situation is illustrated in Fig. 2. where thecompany has managed to 'buck' the trend by timely changes in product strategy, soboosting the product's performance beyond the original projection.

Fig. 2. Extending the product life cycle.

Again, studying PLC analyses for the whole range of a company's products,may allow the company a better understanding of where growth opportunities are tocome from, in order to better realise company growth objectives. Within the productrange, such analysis should assist the company in making priorities and decisionsabout where resources are to be 'ploughed back' into product development, rangeextension (or 'filling') and the like, and which breadwinner products have to besupported to fund such initiatives. In resourcing terms at least, products within thecompany's portfolio are interdependent.

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Exercise 2.

Match the phrase (1-4) with the one below (A-D) to complete sentencesaccording to the article.

1. The PLC provides…2. The PLC shows the way both…3. The PLC analysis might enable…4. The PLC analyses allow the company…

A. company and competitor brands, product form and general market sales.B. valuable insights into product strategy and market change.C. a company to better exploit product potential, and to avoid projected problems bywell-timed strategy changes.D. a better understanding of where growth opportunities are to come from, in order tobetter realise company growth objectives.

Difficulties with PLC analysis

Vocabularyover-simplistic interpretation simpler way to explainaggregation combinationdeviations changing, variationto defy challenge; to resistinevitable unavoidable, inescapablenotwithstanding in spite of the fact thatprudent reasonableinherent constitutive

Reading.Companies sometimes create problems of their own making through an over-

simplistic interpretation of the generalised PLC model. At any level of aggregation,PLC analysis can only provide a model or theoretical structure. It cannot offer atemplate against which to naively measure deviations from 'the norm', nor can itmake prescriptions about the duration of phases or the requisite strategies to follow ordefy the 'normal' pattern. A common problem is the failure to apply and interpret theappropriate level of aggregation (brand, form, or product class), or to seekunderstanding through comparison between levels. Research and information sourcesare sometimes inadequate for the expectations made of an analysis, while sometimesdefinitions employed, for example of competitors or substitutes, are inaccurate orsubjective. Particularly at the brand cycle level, difficulties are encountered in

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interpreting phase-to-phase movement or turning-points. While a large measure ofsubjective judgement is inevitable, it may be possible to approach such demarcationby studying evidence of saturation levels, general profits decline, industry over-capacity, or changes in market responsiveness to price or promotion.Notwithstanding, it would be more prudent to accept the inherent limitations of PLCanalysis, and to use it as but one input within a wider auditing exerciseExercise 3.Highlight in the text the main difficulties with PLC analysis.Match the phrase (1-4) with the one below (A-D) to complete sentencesaccording to the article.

1. PLC analysis can only…2. It can’t make…3. Research and information sources are sometimes…4. Competitors or substitutes are…

A. provide a model or theoretical structureB. inadequate for the expectations made of an analysis.C. inaccurate or subjective.D. prescriptions about the duration of phases or the requisite strategies

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UNIT 3.

DESCRIBING A PRODUCT

Describing Products

Tell me about (this product)What can you tell me about (this product)?Can you give me some information/details about this?What is special/unique about this?What are the specifications?

Let me tell you about . . .This is our (newest) product.This is one of our latest designs.It is made of . . .It can be used for . . .You can use it to . . .You can . . . with it

This has/contains . . .This one features . . .This comes with . . .This is equipped with . . .This particular model . . .This is priced at . . .This costs . . .

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VOCABULARY

Exercise 1.Make lists of items which these adjectives can describe.long pencil, corridor, train, book, ...thin credit card, ...rectangular TV screen, ...round compact disc, ...square computer disk, ...

Exercise 2.Make lists of products made of these materials.glass window, ...plastic credit card, ...leather wallet, ...cardboard file, ...metal filing cabinet,…wood table, ...

LANGUAGE NOTEAsking about products

What is it?What's it like?What shape is it?How large/big is it?What colour is it?What's it made of?Who's it made by?What's it for?

How much is it?/How much does itcost?

It's a fax machine.It's very small.It's rectangular.It's 40 cm long, by30 cm wide.It's grey.It's made of plastic.It's made by Canon.It's for sending documents electronically.

£375

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Talking about and describing Products and Services

Explaining products and services to customers and clients in another language can bedifficult, but the basic tools for beginning are here.

Model language and key words for discussing and describing products andservices:

Asking About Answering

What does your company sell? Name your products

What products do you sell? ItThey

What do/does your [the product(s)] do? It helpsThey help

What services do you provide? We provide

What [kind of] services do you provide? [asking for more detail] We help

· Help and provide are two good words to rely on when you are describingproducts and services.

Exercise 1.Practice the following dialogues with a partner. Change roles and ask andanswer the questions.Dialogue 1A: What does your company do?B: We manufacture and sell fire prevention and fire control equipment.A: What do your products do?B: They help prevent fires and help suppress fires once they have started.

Dialogue 2A: What does your company do?B: We provide security services to large businesses and hotels.A: What kind of services to you provide?B: We provide security guards, CCTV and 24-hour monitoring.

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Exercise 2.Work with a partner asking and answering questions about the products in thetable below. Use the dialogues from Exercise 1.

Company: Translations R Us (picture 1)Product: Electronic Translation DictionaryWhat it does: Translates 45 languages into English, Chinese, Japanese and Spanish

Picture 1. Picture 2.

Company: Colorado Hot Air, Inc.(picture 2).Product: Hot Air BalloonsWhat it does: Takes people on flights up to 10,000 feet (about 3100 meters).

Picture 3. Picture 4.

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Company: Yoga Sensation (picture 3).Service: Yoga InstructionWhat is provided: Yoga classes at all levels worldwide for corporations and resorts.

Company: The Pool Doctor (picture 4).Service: Swimming Pool MaintenanceWhat is provided: Cleaning, servicing and repair of swimming pools. Everythingfrom small private pools to huge resort and country club pools.

Exercise 3.Now work with a partner asking and answering questions about your company'sproducts and/or services. Move around the classroom and talk to severalstudents.

Grammar References

Comparative and superlative adjectives: making comparisons

USEWe use the comparative to compare two items:The grey suit is smarter than the brown suit.We use the superlative to compare one item with two or more other items:The black suit is the smartest.

FORMAdjectives with one syllable• We add -er to form the comparative and the + -est to form the superlative.smart: smarter, the smartest

· For adjectives that end in e, we add -r to form the comparative and -est to formthe superlative.

· wide: wider, the widest· For adjectives that end in a vowel + consonant we double the consonant.

big: bigger, the biggestAdjectives with two syllables that end in y• comparative: y→ i + -er craziersuperlative the + -iest the craziestOther two syllable and longer adjectives

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• Adjectives form the comparative with more +adjective and the most + adjective, more stylish, the most stylish/more expensive, themost expensivethanWe use than after a comparative.You are smarter than him.as ... asTo show that two things are equal (or not) we use(not) as + adjective + as.He is as smart as you.He is not as smart as you.To form the opposite of the comparative andsuperlative forms more/the most we can use less/the least.My job is less demanding than yours, (or My job is not as demanding as yours.)He has the least demanding job.It is unusual to say:He is less rich than you. or He is the least rich.For adjectives that add -er, -est we usually use not as ... as.He is not as rich as you.

Exercise 1.Now read these sentences and complete the grammar rules.1. To compare two items: comparative adjectivesThe Sherrington collection is more expensive than the Allegro collection.The Allegro collection has softer lines than the IL Classico collection.a. Adjectives with one syllable (e.g. cheap) add _____________to the adjective.b. Adjectives with more than one syllable (e.g. expensive) add ______________

or_________before the adjective.c. Use before the second item to connect the items.2. To compare more than two items: superlative adjectivesOf the three different collections, the Sherrington collection is the most expensiveand the IL Classico collection is the least expensive.All the clothes are very good quality, but the Sherrington collection is of the highestquality.a. Adjectives with one syllable (e.g. high) add ________ before the adjective and

add to the end of the adjective.b. Adjectives with more than one syllable (e.g. expensive) add or before the

adjective.3. Clauses of comparisonThe Allegro collection is not as expensive as the Sherrington collection.Some of the Allegro collection is as expensive as the Sherrington collection.Use (not)_________ adj. +_____to compare two items.

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4. Negative ComparisonThe Allegro is less expensive than the Sherrington collection.5. Irregular adjectivesgood better the bestbad worse the worst

Exercise 2.Read the descriptions of the menswear collections, what brand you will preferand explain why.

IL CLASSICO Allegro SHERRINGTON

$525 to $705

The classic business

looks for the man who

is fashionably discreet.

$525 to $685

Softer lines, informal,

and relaxed for the

man interested in

fashion.

$645 to $1,300

Top quality, hand-crafted in

Italy for the man who can

afford whatever he wants.

Language Practice

Exercise 1.Work in pairs. Look at the chart showing the colour preferences of luxury carowners. Write five sentences of comparison.Example: White is the most popular colour.

Exercise 2.Work in pairs. Choose three of the products below and think of two differentbrands for each. Compare the brands.

· perfumes/after-shaves· cars· dictionaries· soft drinks· cigarettes· newspapers/magazines· training shoes· jeans

Example: Chanel No. 5 is more expensive than Eau de Lâncome, and it is also morepopular, but I prefer Eau de Lâncome because it is lighter.

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Exercise 3.Read the information about top ten luxury car colours. Discuss it with yourpartner.

Colours Market share1. white 21.57%2. silver 10.52%3. medium red 9.84%4. light brown 9.75%5. green 7.55%6. light blue 6.75%7.black 6.42%8. dark blue 6.34%9. medium grey 5.82%10. dark red 3.86%

Exercise 4.Change partners and find out your partner's preferences.

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UNIT 4.THE PRODUCT MIX

Vocabularyto cater to provideto expand to increasecredible believableadhesive sticky, pastingsealer proofing compoundreflective sheeting protective, safety paneling

The Product MixExercise 1.

The product mix, sometimes called the product portfolio or product range, isthe assortment of different products offered for sale by a company.

Most established companies have a mix of products on offer - they are multi-product organisations. New products will have been added over time, and variationson successful products introduced, in order to cater for new or different customergroups, to expand sales and profits, to become a more competitive and crediblesupplier in the market, or simply to spread commercial risk over a wider product mix.Growth in the product mix may well be the chosen instrument of corporate growth,though the size (or length) of the mix will not guarantee success, and two similarly-sized companies in the same market may have major differences in the number ofproducts that they field. Fig.1. illustrates graphically the way in which 3M has grownover the years through product development.

Fig.1.3M growth through product development

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Exercise 2.Which statements are true or false according to the article?

1. New products will have been added over time in order to expand sales andprofits.2. New products will have been added over time in order to cater for new ordifferent customer groups.3. New products will have been added over time in order to be a more competitivein the market.4. The size (or length) of the product mix will guarantee success.5. Two similarly-sized companies in the same market may have major differencesin the number of products that they field.

Product LineExercise 1.Product Line: A number of products that are related by

· being targeted to similar markets or for similar uses· sold through similar outlets or on comparable terms

E.g. Procter & Gamble has a number of product offerings within its line ofdetergents, including famous names such as Tide, Bold, Oxydol and Dreft.A company's product mix can be measured in terms of size or length - the totalnumber of products in the mix.

Width: The number of different product lines within the product mix. Thus, inaddition to a sizeable detergent product line, Procter & Gamble also has toothpaste,shampoo, toilet soap and many other product lines.

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Depth: The number of different versions offered within each product in aproduct line, e.g. a Procter & Gamble toilet soap may be offered in two sizes (regular,family) and three colours (pink, blue, white), giving the product line a depth measureof six. Obviously, depth will vary by product line, so for example a newly introducedsoap may only be offered in one regular size, and one fragrance.

Consistency: Refers to the closeness of various product lines across the mix, interms of production methods and materials, target markets, common distributionoutlets and the like. It may not always be obvious how or why a company has anapparently disparate mix of products, e.g. 3M introduced Scotch masking tape afterits abrasives customers in the motor trade voiced the need for such a product.

Exercise 2Make sure you understand all words. Match the words and words’ combinations(a-i )with the meaning (1-9).

a. senior managementb. functional specialistsc. brandd. adjacent markete. competitive advantagef. segmentg. total offeringh. key strengthi. competence

1. the state of being capable, qualified, or sufficient2. a name given by a business to one or more of its products, as a means of

identification by the customer.3. a working person who pursues a single interest or area4. . main forces5. a functional or responsibility area within a business that can be reported upon

separately.6. the advantage that a business has over rivals who are competitors. It can be

gained in a variety of ways.7. the whole sum of something which is offered for sale8. neighboring concept concerning all the arrangements that individuals have for

exchanging with one another9. top administration.

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Product mix decisionsExercise 1. Read the text and make up 10 questions, use general and alternativequestions only.

Decisions on the consistency and dimensions of the product mix willcomprise key issues within a company's product policy, and will almost certainlyinvolve senior management (i.e. corporate) decision-makers, as well as functionalspecialists in the marketing department. Corporate sales growth and profit objectivesmay be served by, for example, increasing the width of the product mix (i.e. addingnew product lines) and capitalising on the company's reputation, or a leading brandname, in a horizontal move to adjacent product markets. For example, the recentintroduction of Persil washing-up liquid exploited the strength of the Persil brandname in the detergent sector.

Contributions to corporate growth objectives might equally be achievedthrough increasing the depth of the product mix, thereby gaining competitiveadvantage and market coverage, through reaching buyers with differing preferences,in other segments. For example, some time after the successful launch of Jif surfacecleaner fluid, for bathrooms and kitchens, Lever introduced Lemon Jif, exploiting thefavourable association of lemon-based ingredients with cleaning and grease-removing properties.

By the same token, some companies will, through careful product policyguidelines resolve that the product range must retain a consistency and logic thatshould not be diluted by straying into unrelated product areas. Other companies, aftermixed experiences with diversification into other product fields, will tighten up theirproduct policy by rationalisation, withdrawing or selling off products outside theirreconsolidated product base. Such product policy moves will be difficult, andpossibly costly, and will involve higher-level corporate deliberations and decisions.They will hopefully return to product policy a thrust and focus, and free resources toconcentrate on product markets where the company has known strengths. Forexample, among the many companies to have withdrawn from the computer marketin recent years, Honeywell Inc. appears to have little cause for regret, havingsuccessfully grown since through a well-managed concentration in fields such aselectronic components, controls and instrumentation.

Fig.1. Sales breakdown by product field: Colgate-Palmolive1990 total sales $5.69 billion worldwide

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While most large companies have some variety in their product range, they willusually seek a consistency in their total offering, reflecting their key strengths andcompetences.

As an example, Fig.1.shows the product-market sales of Colgate-Palmolive,the US-controlled consumer products manufacturer. This 186-year old company isprobably best known for Colgate toothpaste and Palmolive soap, which arerepresented in the chart under the oral care and body care divisions respectively.While the company has 40 per cent of the world toothpaste market, it has a variety ofproduct interests that range from household cleaners (e.g. Ajax) to mouthwash andother health-care products.

Product range analysis

Exercise 1.

Read the text

For both day-to-day marketing purposes, and as a basis for longer-termdecisions such as

· product modification,· range extension and innovation,companies need to monitor and analyse key performance indicators for their

product mix, and its constituent lines. Of critical concern will be· indicators of product-market match,· performance vis-a-vis leading competitors,· identification of market opportunities and challenges,· and some ongoing diagnosis / projection of each product's performance

in terms of profitability, growth, and resource usage.Such analysis will therefore range from the holistic (i.e. total range) level to a

detailed focus on individual product items, pack-sizes and individual productvariants. The information bases for these analyses will draw heavily on accountingand costing records and other internal control data, and company market researchfindings/ information which is nowadays increasingly stored and accessed throughmarketing information system (MKIS).

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Fig.1. Product range analysis for a hypothetical healthcare productsmanufacturer

Figure 1 presents a simplified product range analysis for a hypotheticalhealthcare products manufacturer.

Though simplistic and generalised, the analysis gives some insight into thestrategic and managerial issues involved in product policy. In marketing terms, thecompany is fielding a spread of product lines (i.e. width), offering differing linechoices (i.e. depth) to consumers. The sales and profits percentage figures indicatethat the product lines make different contributions to company performance, whileindividual products within the lines themselves differ in their sales/profit profile. It isinteresting to note that, even with a limited portfolio of twelve products, salesrevenue contribution of individual products ranges from 20 to 1 per cent, while thatfor profits varies from 18 to 1 per cent of the total.

Clearly, even with only two yardsticks, profits and sales, simple comparisonshows that some products are performing better than others. While statistically thiswill always be the case, especially within extensive product ranges, companies needto understand why and how performance varies, as part of the overall productmanagement and marketing process. For example, in Fig.1. , Product No. 4 may befacing severe market competition and production difficulties, while Product No. 11may be a recent addition that has great profit potential, once it is established.

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CASE STUDY

Exercise 3.

Examine an electrical product you have bought in the last 3 years and that youuse at least once a week (hairdryer, CD player).

1. List features of this product that you feel would appeal to consumer andwould encourage them to buy it. E.g. safety, …..

2. How would you rate the product (relatively to similar products in terms ofvalue for money in· appearance· special features· safety?

3. What qualities and features could have improved the appearance

and performance of this product?

LG-an image on the rise!, Goldstar, originally entered the South

African market with products such as microwaves, radios,

televisions and compact disc players, at the lower end of the

market. They then changed their name to LG and improved their

quality levels, accompanied by a promotion campaign emphasizing

the unique features of their products, for example, the sound of

their televisions sets, their easy-to-use microwave oven and their

stable washing machines. LG hopes that these promotion

campaigns will enhance the general image of the product range.

They aim for these products to be regarded as similar or of better

quality than the Panasonic, Sony, Phillips products on the market.

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UNIT 5.PRODUCT POSITIONING

Position is that one descriptive sentence or slogan the company is known for.

That one specific idea that first comes to mind about the product.That one characteristic that sets the service apart from competitors.

For Volvo that one thing is "Safety."

McDonalds is "A fun place for kids."

In Jakarta, Indonesia, Bluebird is "The safest way to travel by taxi."

And everyone knows, Avis tries harder.

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Here are 4 product positioning tips to differentiate your business.

Luckily, it’s not all that hard to stand out from the crowd, as long you realizethe importance of product positioning. Positioning is the art of matching yourmarketing message, with the desires, feelings, & beliefs of the particular type ofcustomer that you know you can service better than anybody else. You make yourself"visible" as the kind of business this individual would naturally be attracted to.

Why that it’s not that hard?

Well, you really don’t have to look very far to see that effective productpositioning is about as common as caviar at a McDonald’s outlet. Just look in theyellow pages, look on the net, and you’ll soon see what it means.

It’s more of the same old look at us were Number1 for pricing, service &selection nonsense. It’s just meaningless drivel. Anyone can say these things &everyone does,

Are you guilty of spouting these "buy from us for no apparent reason"platitudes? Don’t feel guilty if you are. Just take these product positioning tips toheart.

What happens when everybody in your industry says the same thing?Customers don’t know how to tell the difference between one product & another, sothey make their decision based on price. And everybody loses. The customer doesn’tget the product that best fits their needs. You don’t make nearly as many sales as youcould, and those that you do make, are at less margin than you would like.

Listen, if you can just get the principle that I’m about to reveal hammered intoyour head, you’ll have more business than you can handle, and you won’t worryabout having to undercut the competition.

That sounds pretty good doesn’t it?

Here’s the secret. Just take the time to communicate, clearly, specifically, &thoroughly why you‘re different & how that difference makes a difference in yourcustomer’s perception of his or her life. Such a simple concept, but so rare, it can’thelp but differentiate you.

You see, people really don’t buy on price at all. They buy on value. If theybought a cheaper product, it’s because you didn’t demonstrate the value of yours.Admittedly, there is a certain percentage of the market that is best served by aninferior low end product, but this segment is much smaller than it appears. More

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often than not, people cannot differentiate, buy based on price, & live to regret it.This is a crying shame, & were not going to stand for it much longer, are we?

As you absorb this material you will become intimate with the following 4product positioning principles that will set your business apart.

Unique Selling Proposition

Something unique, that you have to offer. Not necessarily entirely unique. Youcan appear unique by simply packaging your product or service in a unique way. Forexample, a lawyer, might advertise flat rate incorporation, and attract a lot ofcustomers because the market fears the open ended legal bill. In reality, it is all of theother "back end" services that come about as a result of incorporation that generateincorporation revenues. But who do you think will end up getting more of thatlucrative business, the flat rate USP savvy attorney, or Mr. Conventional?

Risk Reversal

Differentiate yourself with outrageously bold guarantees, that you'recompetition don't have the guts for. Most people are genuinely honest, and if yourservice is what you say it is, you've got nothing to worry about. The increased salesvolume will be well worth it.

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Inordinate Value

Leverage your advertising, by offering to let complimentary businesses comealong for the ride, in exchange for a free sample of their wares. Then bundle thoseinto your offering. Cut the right deals, & your offer will appear "irresistible",compared to your competition.

Clear, Complete, & Concise Customer Education

Here's were most advertisers fall down, and you can stand head & shouldersabove the crowd. Tell your full story. Don't make people try to figure out on theirown why they should be doing business with you. Spell it out for them.

Spend some time thinking deeply about these product positioning ideas, andhow you can use them to your advantage. Your market share is predicated on howwell you assimilate them, & apply them to the promotion of your business.

Reading:

Positioning is a term sometimes used loosely among marketers. It can refereither

· to the company wide strategic stance or 'mission' taken on where to dobusiness, and with what competitive advantages,

· or it can be confined to a more tactical concern with how individualproducts are targeted and positioned within a particular market or segment.

The former, policy-level positioning issue might better be termed strategicpositioning, though it is certainly in general terms relevant to product policy at thecorporate level.

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Product-level matters of positioning, product positioning proper, revolvearound the way in which customers perceive a company product in relation tocompetitive products and/or their preferences and ideal product attributes.

In a real sense, both levels of positioning are related, and it may well be thatcompany experience of positioning, or repositioning one product may lead to majorlessons and strategy changes that involve new product development, fundamental re-design exercises or product deletions, and decisive changes in marketing strategy.

Informed product positioning will depend on reliable research into the positionof the product(s) in relation to competing products, and to 'ideal' attributes elicitedfrom respondents. A first stage would be to identify, through experience orpreliminary research, a listing of products or brands competing with those of thecompany, and then to isolate the major attributes or characteristics that customershold to be significant in making purchase choices within the product field. A set ofdetailed ratings and rankings might then be obtained in relation to these attributes,across the named products, and against 'ideal' products that respondents are asked toenvisage. Through such procedures a comprehensive set of research informationshould be generated, so that multi-dimensional comparisons may be made ofcompeting products and ideal positions, usually with the aid of dedicated softwarepackages. To illustrate the value of such an exercise, Fig 8/1 shows a positioning'map' of a hypothetical study of hotel groups, displayed for simplicity along twodimensions only.

Fig.1. Product positioning map

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Exercise 1.

You have a new product that you are getting ready to market. You havealready done a SWOT analysis and segmented your market; however, now youneed to know the steps to position your product in the market. Below are thesteps to position a product in the market.

Instructions:

Step 1

Put a Venn Diagram Chart on a sheet of paper.

Step 2

List in each circle a benefit of your product. For this example, our product is afood product, a banana pudding dessert.

Step 3

Research the industry in which your product is listed. For example, a bananapudding dessert would be considered gourmet, specialty and premium foods.Whatever your industry is, research the most recent mega-trends.

Step 4

Evaluate the benefits you thought of vs. the most recent mega-trends. Makesure that you align the benefits to what your end-users or consumers arelooking for because, ultimately, what your end-users are looking for should bedeemed more important than your assumed benefits.

Step 5

Combine the benefits of the product, and write one to two persuasivesentences. Remember - the goal of the positioning statement is to persuadeyour end users or market segment to purchase your product. For example, thepositioning statement for the banana pudding dessert could be “With a shortpreparation time, yet with a homemade taste, it can be pre-portioned just foryou (single servings or family).

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Step 6

Remember - write a positioning statement for each market segment. Having adifferent positioning statement for each market segment is important becausethe needs and interests may differ.

Grammar ReferencesADJECTIVESOrder of adjectivesWe often use only one adjective before a noun and it is very unusual to use more thanthree of them.When we use more than one adjective before the noun, we usually follow this order:1 2 3 4 5 6 7opinion size shape colour origin material nounsmart big wide black French leather bag

Language PracticeExercise 1.Work in pairs. Choose three of the products from the photographs below andwrite down three adjectives to describe each one. Use adjectives from the boxand any others you can think of.

useful stylish smartcolourful practical top-of-the-rangebeautiful expensive fun

Exercise 2.

Now put the adjectives in the correct order.

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Exercise 3.Work in pairs. Find four products (e.g. glasses, bags, clothes, jewellery). Write alist of adjectives to describe each one, and put them in the correct order. Giveyour list to another pair for them to identify the product.

Exercise 4.

Label the briefcase using the words below. 1 3

2 4

A stylish durable leather briefcase with convenient long, wide carring strap.

lock trim shoulder strap handle

Exercise 5.

Look at the photographs of the briefcases. Which one(s) do you like? Match thedescription of the briefcases to the photos.

a) an unusual sporty briefcase with practical nylon straps and black trimb) an elegant light brown briefcase with brass locksc) a styish leather briefcase with a beautiful glass handled) a durable leather briefcase with brass lockse) an Italian black leather briefcase with a long shoulder strap

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Exercise 6.

Which adjectives in exercise 5 give opinions and which give facts?Example: opinion - stylish, beautiful fact - leather, glass

Exercise 7.For each of the briefcases, complete the table with words from the sentencesunder these headings.

Opinion Fact

size/length

shape/width

colour whereit’s from

what it’smade of

1 stylish beautiful

leatherglass

briefcasehandle

2 briefcasestrapstrim

3 briefcasestrap

4 briefcaselocks

5 briefcaselocks

Now add these three descriptions to the table.1. a big, square, leather folder2. a large, extra-wide sports bag3. a spacious, oval handbag

Exercise 8.Use all information above to answer these questions.

1. Do 'opinion' adjectives usually go before or after 'fact' adjectives?2. Fact' adjectives usually go in this order:size, ________, ________, ________, ________,3. Do 'size' and 'length' adjectives (e.g. big, small, long, short) usually go before orafter 'shape' and 'width' adjectives (e.g. slim, fat, narrow, wide, broad)?

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Grammar ReferencesConnectors of effectThe following phrases introduce effects or consequences.as a resultthereforesoThey link a cause and an effect.Cause EffectThe product was too expensive. As a result,sales were poor.

Sales therefore were poor. ORTherefore, sales were poor.

As a result, and therefore link two sentences. They occur in the second sentence andrefer back to the first sentence.So is a conjunction and links cause and effect in one sentence, telling you what theeffect is.

Cause EffectThe product was too expensive so sales were poor.

Exercise 1.Read the following sentences and notice how the linking words are used.Cause

1. Most vacuum cleaners lose up to 50% of their power because the bag becomesblocked.

2. As/Since the Dyson vacuum cleaners don't have bags, they are very efficient.Because, as and since link cause and effect within one sentence.

Effect1. British firms turned him down. As a result he had to go to the United States

and Japan to get backing.2. British firms turned him down so the inventor had to go to the United States

and Japan to get backing.3. British firms turned him down. He therefore had to go to the United States and

Japan to get backing.As a result and therefore link two sentences. So links cause and effect within onesentence.

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Exercise 2.Link sentences a and b below using a linking word of either cause or effect.

Example:a. The product is faulty.b. The manufacturers are withdrawing the product from the shops.EITHER: The manufacturers are withdrawing the product from the shops because itis faulty.OR: The product is faulty. Therefore the manufacturers are withdrawing it from theshops.1 a. The cost of raw materials increased. b. The price of manufactured goods also increased.2 a. All the manufacturers refused to back the design. b. The inventor produced the new vacuum cleaner himself.3 a. The product is not selling well. b. We need to change our marketing strategy.4 a. The company set the price of the product too high. b. Demand was low.

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UNIT 6.

Merchandising, Marketing and Branding

Marketing and MerchandisingExercise 1.Complete the sentences with the words from the box.

market leader marketing mix white knight chain storeprice-sensitive carriage forward niche market shelf lifebrand loyalty seller's market market analyst window dressingconfusion marketing pawn shop down payment cash registerunique selling point soft sell market price loss leader

1.____ means that the person receiving them will pay for the cost of sending them.2.____ is the tendency to buy the same named product.3.____ is the skill of decorating shop windows and arranging goods in them.4. ____ is selling in a way that makes it very difficult to decide which products arecheapest.5. The ____ of a product is the length of time it can be kept in a shop before itbecomes too old to be sold.6. The ____ is the price of a product that most companies charge in a free market.Correct: market price7. The ____ is the combination of selling factors that a company can influence suchas price and place.8. If someone uses ___, they try to sell something by being gently persuasive.9. If a market is ____, buyers look for the best deal they can get, comparing prices.10. A ____ is where you get some money for a possession which you get back if youreturn the money.11. A ____ is someone who has specialist knowledge of a specific market.12. A ____ is one of a group of shops which belong to a single company and sellssimilar goods.13. A ____ is an article that is sold cheaply in order to attract the public and makethem buy other things.14. A ____ is an amount of money which is only part of the total cost.15. A ____ is a small area of trade within the economy involving specialisedproducts.16. A ____ is a person or organisation that saves a company by putting money into itor by buying it.17. A ____ is a market where there are more buyers than suppliers.18. A ____ is a machine in a shop or other business that records sales and into whichmoney is put.

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19. A ____ is a feature of a product which will persuade people to buy it.20. A ____ is a company that sells more of a particular product than others.

Marketing and noun groupsExercise 1.Here are three words that are very common in marketing. Try to write adefinition for each one.■ market■ brand■ consumer

Exercise 2.Market, brand, and consumer are often used to form compound nouns. Completethe text with a word from this list.

awareness behaviour goods imageloyally research share value

Bannoffi SA is more than just a market 1 __________ company. It explores themarket environment thanks to its specialized service: Fast-moving Consumer GoodsTracking (FMCG Tracking).

The FMCG Tracking service analyses consumer 2______, in other words theirhabits and attitudes towards consumer 3______. Data are gathered via a consumersurvey, and researchers establish how much consumers are prepared to spend on theproduct (or its market 4_______), how much consumers already know (or their brand5______), and what they fed about it (or the brand 6______).

They also establish the importance of each brand in terms of its percentagemarket 7______. Thanks to the fact that consumer tracking is carried out over aperiod of time, Bannoffi SA can provide detailed and up-to-date analyses of buyingintensity and frequency, as well as shop and brand 8_____, with the reasons whyclients change their shop or brand.

Exercise 3.Use market, brand, or consumer and a noun from this list to form compoundnouns to match the definitions.

confidence durables forcesidentity leader name

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1. How a product or a company is recognized by consumers. brand identity2. The company that sells the largest number of a specific type of product.__________3. Factors that influence demand and the price of a product._____ _____4. What a product or a group of products is called._____ ______5. Optimism about the economy which affects people's spending habits._____ ____6. Goods such as cars, furniture, and kitchen goods._____ _____

Exercise 4.Discuss these questions.1. Do you think market research can provide accurate information on howconsumers will react to a new product?2. Do you show brand loyalty to any products or companies?3. What factors do you think cause a rise or a fall in consumer confidence?4. What do you consider to be a luxury brand, an everyday brand, a well-respectedbrand? Give some examples.5. What factors do you think determine the market value of a product?6. What is the most effective way to improve brand awareness?7. Do you think the next generation will own more or fewer consumer durables thanwe do now?8. How can you achieve a positive brand image?9. Is it possible to predict consumer behaviour accurately?

Global brand, local marketingExercise 1.How much do you know about M&M's? Here is a quick quiz to test yourknowledge.1. What are M&M's?a. chocolate-covered peanutsb. sugar-coated chocolatec. chocolate covered biscuits2. Which company makes M&M's?a. Marsb. Nestlec. Cadbury3. When were they first launched on the US market?a. 1940s b. 1970s c. 1990s4. What characters are associated with the brand?a. Quickie, the rabbitb. Toby, the mousec. Red, Yellow, and Ms Green

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Exercise 2.Now read first two paragraphs of the text and check your answers. Before youread the last two paragraphs, try to answer these questions.1. How do you think consumers react to the M&M characters?2. How can these characters help to increase sale of M&M's?3. Why is branding important?4. What are the advantages of global marketing?5. What are the advantages of local marketing?

Exercise 3.Now read the last two paragraphs and compare your answers with the text.

Which is your favourite?[1] Mr. Mars Senior developed his recipe for M&M's when he saw soldiers

eating chocolate with a sugary covering during the Spanish Civil War. The sweetsbecame widely available in the US during the 1940s, but now M&M's is an exampleof a successful global business. MARS markets its brands in countless countriesthroughout the world, treating the world as a single marketplace. However, localcompanies must also decide how much to adapt this marketing to local conditions.While thinking globally MARS also acts locally, as is the case in Ireland.

[2] A large reason for the success of M&M's branding has been the use ofdistinct personalities for each M&M's colour. The 'Red' character, the pure chocolatevariety, first appeared in TV advertising in Ireland in 1986, closely followed by'Yellow', the peanut variety. These characters soon became popular and have beenused in numerous campaigns. One highly interactive promotion, 'Find Red',underlines how consumers feel involved in the M&M's brand. The 'Red' and'Yellow' characters were travelling across Ireland in a hot air balloon when Red felloverboard. A search followed and the person who found Red primed on the inside oftheir M&M packet received a reward of £10,000. Ms Green made her way to Irelandin 2001. Her introduction in -this country involved a massive six-week TV and radiocampaign with poster and public relations support.

[3] By communicating distinct personalities for each M&M, brand awarenessis increased and consumers begin to develop a relationship with the brand. Theongoing story of the Red and Yellow characters allows consumers to increase theirinvolvement in the brand. This form of branding every effective as it makes it easyto buy a familiar product when shopping, even though consumers are exposed to alarge number of adverts from different brands and products every day. That is whymarketing managers concentrate resources on developing brand awareness, sincedear branding increases the probability that consumers will recognize and buy theirbrands. To suggest that a chocolate has its own personality could be risky, but theM&M's characters have caught the public imagination to such an extent that theirdifferent personality traits are clearly identified, accepted, and approved of by theconsumers.

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[4] To work effectively, a global brand must communicate a cohesive imageandmessage about core brand values to all its consumers. By standardizing marketingefforts, costs can be decreased. However, by customizing efforts to each marketcosts will be higher, but there will be a corresponding increase in market share andreturn on investment M&M's started out as a uniquely American phenomenon; itsexpansion onto a global stage and into Ireland in particular has been characterizedby impactful marketing and advertising, innovative product expansion, and highlyinteractive promotions.

Exercise 4.Try to match these definitions with underlined words from the text.1. a series of promotional actions during a specific period of time____.2. when a person feels a part of something, connected to it in some way_____.3. people who use a product or service ______.4. planning and promoting the sale of something _____.5. publicizing a product through the media, e.g. radio or TV______.

Exercise 5.Why do you think global brands have become much more powerful in recentyears? Do you think this a positive trend?

Are brand names being pushed off the shelf?Read the text and complete the sentences in exercise 1.

According to the Wall Street Journal: “More and more shoppers are bypassinghousehold names for the cheaper, no-name products one shelf over. This shows thateven the biggest and strongest brands in the world are vulnerable.”

It has been clear for some time – principally since recession began to be felt inthe major economies of the world – that the strength of brands has been under fire.During the second half of the eighties, the Japanese, for example, showed themselveswilling to pay a huge premium to buy goods with a smart label and image to match:they were fashion victims par excellence, be it in choosing their luggage (LouisVuitton was much favoured) or in buying their booze, where a 20-year-old version ofa good malt whisky could fetch the equivalent of $60 or more. Over the past year ortwo, that enthusiasm to spend big money on a classy label has waned markedly.

But we may be witnessing the death of the brand.First, every story that now appears about the troubles being experienced by

markers of luxury goods triggers wise nods and told-you-so frowns.Two days ago, LVMH n France, which owns Moët et Chandon champagne,

Louis Vuitton and the Christian Lacroix fashion house, reported lower earnings forthe first half of 1993 than it did a year ago. As David Jarvis, in charge of the

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European operations of drinks company Hiram Walker, puts it: “A few years ago, itmight have been considered smart to wear a shirt with a designer’s logo embroideredon the pocket; frankly, it now seems a bit naff.”

This conclusion fits with one’s instincts. In he straitened nineties, with nearly 3million out of work and 425,000 people officially classed as homeless in Englandalone, conspicuous consumption now seems vulgar rather than chic.

But just because flashy, up-market brands have lost some of their appeal, itdoes not follow that all brands have done so. Cadbury’s Dairy Milk is just as much abrand as Carties watches. Tastes may have shifted down-market, but that does notmean that they have shifted from flash-brand to no brand.

The second strand of the brand argument is tied intimately with the effects ofrecession. No one yet knows to what extent the apparent lack of some brands’ appealis merely a temporary phenomenon. It may well be that, deep down, we would stilllove to own a Louis Vuitton suitcase rather than one from Woolworth’s but while weare out of work or fearing that our job is at risk, we are not prepared to express hatpreference by actually spending the cash.

Third, the example of Marlboro is an extreme one. The difference in pricebetween premium brand cigarettes and budget rivals in the US had become hugeduring the 1980s: a packet of Marlboro or Camel might cost 80 per cent more than abudget variety. Few brands in any area of consumer goods could hope to maintain sogreat a premium indefinitely.

And fourth, in looking at the brands argument globally, it is too easy to becomemisled by what is happening in an individual market. In the UK as a whole, about onethird of groceries are under supermarkets’ own labels. In the USA the proportion isonly 20 per cent. But it does seem that the gradual shift from manufacturer-brandedto retailer-branded goods is worldwide.

As David Jarvis of Hiram says: “We believe that brands will retain their halo,but people are less inclined to pay for something just because it’s a fashion accessory.They need to be reassured that the product is intrinsically better.”

Reports of the death of the brand have been exaggerated. Reports of the deathof the deluxe brad may be premature, but sound much more plausible.

Exercise 1. Fill each gap below with one word.

1. Consumers often prefer to buy……………. unbranded productsrather than more …………….. branded goods. The reason for this seems to be theworldwide ……………. in major economies.

2. In Japan consumers are less likely to buy goods with afashionable……………….

3. In the present economic climate it seems ……………….. to spendmoney on expensive designer products.

4. ………………brands are less popular, but………………brands arestill important.

5. Maybe, when the recession is over, designer brands will regaintheir……………….

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BrandingExercise 1.Select the appropriate expressions from the box to complete the text.

1. a. as a result of b. in order to c. thus

2. a. although b. since c. so that

3. a. Consequently b. Despite c. For instance

4. a. for example b. however c. thus

5. a. There b. That c. This

6. a. As a result of b. In addition to c. Owing to

7. a. For example b. Furthermore c. However

8. a. i.e. b. of course c. therefore

9. a. As well as b. Despite c. So as to

10. a. although b. in other words c. on account of

In a market containing several similar competing products, producers canaugment their basic product with additional services and benefits such as customeradvice, delivery, credit facilities, a warranty or guarantee, maintenance, after-salesservice, and so on, (1).........distinguish it from competitors' offers.

Most producers also differentiate their products by branding them. Somemanufacturers, such as Yamaha, Microsoft, and Colgate, use their name (the "familyname") for all their products. Others market various products under individual brandnames, (2).........many customers are unaware of the name of the manufacturingcompany. (3)........., Unilever and Proctor & Gamble, the major producers of soappowders, famously have a multi-brand strategy which allows them to compete invarious market segments, and to fill shelf space in shops, (4).........leaving less roomfor competitors. (5).........also gives them a greater chance of getting some of thecustom of brand-switchers.

(6).........famous manufacturers' brands, there are also wholesalers' and retailers'brands.

(7)..........most large supermarket chains now offer their "own-label" brands,many of which are made by one of the better-known manufacturers.

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Brand names should (8).........be easy to recognize and remember. They shouldalso be easy to pronounce and, especially for international brands, should not meansomething embarrassing in a foreign language!

(9).........a name and a logo, many brands also have easily recognizablepackaging. Of course packaging should also be functional: (10)........ . , the containeror wrapper should protect the product inside, be informative, convenient to open,inexpensive to produce, and ecological (preferably biodegradable).

Exercise 2.Complete the following collocations

1. to augment.......2..........facilities3. after-sales........4. multi-brand.....5. to fill.........6. .......chains

Marketing and Merchandising Mix.Test.The Situation: Global Routes UK produces satellite navigation (sat-nav) systems foruse in cars. The company makes a number of different models, but none of them areselling as well as expected. Let's join Global Routes now as it takes a closer look atmarket opportunities and develops ways to improve its marketing strategy.

Exercise 1. USING AN AGENCY (8 points).Daniel Baker is the marketing manager of Global Routes. He asks the agency MarketSolutions to design a market study for his company's navigational instruments.Choose the correct option to complete the sentences.a) Global Routes wants to know about people's buying designs / patterns.b) To help Global Routes, Market Solutions will look in detail at the behaviour andopinions of consumers / sellers.c) The agency will carry out ad hoc/ad-lib research, focusing on the needs of GlobalRoutes.d) The agency will collect new data by using surveys /descriptions.e) The agency will use a large sample / example of the population.f) At least 2,000 recipients / respondents will take part.g) The agency will ask staying / existing customers what they think of the products.h) More importantly, it will try to identify potential / developing customers, too.

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Exercise 2. WHOSE PROFILE?(4 points).Market Solutions will identify market segments that might buy the in-car navigationalsystems. It will use classification models to create profiles of the customers.

Match each type of classification to the right group of characteristics.Geographic Demographic Behevioural PsychgraphicClassificationa)________b)________c)________d)________Main characteristicsage, occupation, gender, incomelifestyle, personality, values, social classproduct usage: when, why, how oftencountry, urban, rural, suburban

Exercise 3. NAME-CALLING (6 points).Like many marketers, Claire Williams, creative director at Market Solutions, finds ituseful — and fun — to give the customer profiles names.Choose the description that best matches these commonly used names:a)Woofies b) Dinkies1. well-off older folk 1. desirable, intelligent kids2. wild, outdoor freaks 2. digitally interested kids3. people who love dogs 3. double income, no kids

c) Grey pound (UK) d) Pink pound (UK)1. older buyers 1. lucky consumers2. big-city buyers 2. female consumers3. boring buyers 3. gay consumers

e) Boomers f ) Laggards1. people with unconventional taste 1. the last to buy a new type of product2. people born between 1946 and 1964 2. the last to arrive at the shops3. rich, handsome men 3. the last to complain

Exercise 4. WHERE ARE WE? (4points)Market Solutions also uses the Boston Matrix, a well-known tool developed by theBoston Consulting Group. The matrix provides a structure for looking at relativemarket share of products and their market growth.For the products described here, decide which areas of the matrix they belongin. (Star, Question mark, Cash cow or Dog).

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a) This product is in a market that is stagnant, shrinking or weak. Its market share issmall or going down. It's a_______b) This product is developing well in an expanding market. It's highly successful, soit's a__________________.c) This is a new product in a growing market. It has entered the market with a smallmarket share in relation to the market leader. It's a__________________.d) This product is in a mature market. It has a high market share and generates asteady cash flow. It's a_______________.

Exercise 5. P IS FOR (8 points)The marketers will have to decide on the best marketing mix. These are often calledthe four Ps, or, more recently, the seven Ps. We've added one more very important Pto this exercise.

Match each term with its definition.

Place Process ProductPeople Physical evidence Price

The four Ps for consumer goods and services:a) The cost:___________________________b) Where the product is sold:____________c) The goods:_________________________d) All the activities a company can use to publicize itsproduct:____________________________The three extra Ps, important for services in particular:e) Everyone involved in customer relationships:_____________________f) The visual presentation of your company, its employees andproducts:_____________________________________________________g) The methods of getting what the customer wants to thecustomer:_____________________________________________________The one P for all marketing:h) Emphasizing a brand's competitive advantage: _____________________

Exercise 6. A PLAN OF ACTION (6 points)

Claire Williams uses a lot of action verbs to talk about what Global Routes will haveto do.Complete her suggestions using the verbs in the box.

launch suit corner abandon target drive

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"First of all, we have to decide which market segments you want toa)_______________. Then, we have to find the right marketing mix that willb)_______________each segment. What about these two less profitable segments?We think you should c) _______________them altogether. Your competitors haveover 60 per cent of this market. It would cost too much to d)_______________themout. But you could be the best on the market for navigational systems for woofies. Ifyou e)_______________a new product this summer, you could f) ___________themarket by next spring!"

Exercise 7. DESCRIBE THE RIVALS (8 points)The agency also looks at the company's rivals — its competition. The news is notgood. Find the missing vowels to complete the adjectives. They are all in someway related to the attribute "strong"."Our rivals are very strong. We face some ______ competition!"a) s_gn_f_c_ntb) k_enc) t _ _ ghd) c _ t-thro_te) int _ ns _f) st _ ffg) f _ erceh) r _ thl _ ss

Exercize 8. ADVERTISE EVERYWHERE! ( 6 points)In one marketing meeting, the team brainstorms on different types of advertising.Create common expressions from the words in the two columns. Then, matchthe types of advertising to the short dialogues.

celebrity commercialsproduct placemente- of-sale advertisingtrade shotscinema endorsementpoint- fairs

· We don't want our message to look like spam, that's for sure.· Of course not. We'll only send to subscribers, and we'll have an unsubscribe

function, too.a)__________________________________________________· Our booth was terrible in London. I'm not surprised everyone was at the other

one.

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· I agree. But if we don't go, people will think we have financial problems.b)____________________________________________________· The new James Bond could use our in-car product to find his way around.· Great idea, but I think you'll find that someone else has already done that one.· We could have problems in the EU with it, anyway.c)______________________________________________________· We could get Pink to sign a licensing agreement.· No, she's too young. Sharon Stone would be better for our age group.d)_______________________________________________________· Why don't we show these before her new film? Does she have one, by the

way?· I'll check. Perhaps we could use them for internet videos, too.e)_______________________________________________________________· What about putting her picture on special displays in stores?· We don't sell that many in shops, so it would be a waste of money.f) ___________________________________________________________

Exercise 9. KNOW THE CODE (5 points)Claire and Frank use a lot of abbreviations in their presentations.Do you know what the following stand for?a) SWOT analysis _____________________________________b) ROI ______________________________________________c) USP_______________________________________________d) CRI_______________________________________________e) AIDA______________________________________________

Exercise 10. LESS ORDINARY METHODS (5 points)One member of the business development team, Frank Millar, suggests using non-traditional forms of marketing.

Read his statements and then choose the right option.a) We could send out fun e-mail messages that people will want to pass along tofriends. But the messages would have to be very funny, unusual or evencontroversial.1. viral marketing 2. virus marketing 3. variety marketingb) The more our customers recommend the product to other people, the better.Personal marketing messages are very powerful.1. mouth-to-mouth 2. word-to-word 3. word-of-mouthc) When people hear about a product from people they trust, they are more likely towant to buy it for themselves.1. boom marketing 2. buzz marketing 3. busy marketing

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d) We could give some navigational systems to taxi drivers and pay them to talkabout our product while driving around. The competition won't notice.1. secret marketing 2. sly marketing 3. stealth marketinge) If our marketing message includes children, they might want their parents to useour product in the car. You know how effective children can be at getting what theywant.1. pester power 2. kid factor 3. moan money

Exercise 11. FROM COMPANY TO CUSTOMER (5 points)Global Routes needs to think about how and where to sell the systems.Match up the sentence halves to create questions the members of the marketingteam ask themselves.a) How do we get our product to the endb) Do we know which distributionc) Could we increase our salesd) What about working more with chaine) Can we use direct

1. force by 10 per cent?2. stores that specialize in electronics?3. user more efficiently?4. marketing such as telephone campaigns?5. channels our competitors are using?

a)_; b)_;c)_; d) _;e)_

Exercise 12. MARKETING STRATEGY IDIOMS (5points)While talking about their plans, the teams at Market Solutions and Global Routes uselots of idiomatic expressions.In each sentence, one word is incorrect. Cross it out and replace it with a wordfrom the box.

money cakes killing ground buck

a) We have to get this product off the floor by the summer.________________b) We'll get more bang for our dollar if we advertise online.________________c) This range will sell like hot potatoes.________________________________d) You'll make a murder if you do this right!____________________________e) I think we could have a cash spinner here.____________________________

How did you do?

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55—70 points: Excellent. You're quite a marketing expert!40-54 points: Good. You have a solid understanding of this topic.20-30 points: Fair. You did OK, but your vocabulary is a little weak.Fewer than 20 points: Well, if you want a career in marketing, you'll have to workon our business English.

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UNIT 7.Business Communication

International foodExercise 1.Make a dialogue using the given information for two people.

Person A1.You work for a company that imports food products and you are looking to add anew product to your range. You have information on two potential products but needdata on another two. Ask B for this information. B will ask you for information ontwo other potential products.

Olivado, from Spain, is a paste made from black olives. It can be eaten as a snackwith toast or bread The olives are picked by hand and then pressed and mixed witha delicious Mend of oil and herbs.So far it has been well accepted all over the Mediterranean region, but in the rest ofEurope sales have been slow. We predict the product will be successful in the USAand Latin America.

Dashi is a range of products from the far East, specifically from Thailand,Indonesia, Vietnam, and Japan. Dashi provides sauces which can be added to freshingredients to create authentic-tasting meals. The sauces are mixed and packed inglass jars in their country of origin. The product has been well received by the UKand US markets. We hope that this product will be sold large cities all overEurope.

Product 1 Product 2What/ call?Where/produce?How/eat?How/ produce?Where/sell? (up to now)Where/sell?(future)

2. With your partner, decide which would be the best and the worst product for yourcompany to market and prepare a report for the rest of the class. Include thefollowing points in your report.■ Relevant food preferences in your country■ Recommended sales outlets for the chosen product■ Possible problems with distribution and/or sales■ Recommended advertising for the chosen product

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Person B1. You work for a company that imports food products and you are looking to add anew product to your range. You have information on two potential products but needdata on another two. Ask A for this information. A will ask you for information ontwo other potential products.Casa de mi abueta, from Mexico, is a range of ready-to-eat spicy sauces. It isperfect as a TV snack, with potato or corn chips, or with raw vegetables. Only thefinest chillies, peppers, and onions are selected. These are then cooked in oil andimmediately preserved. This is a new product so no sales figures are available, butwe expect that this product will be popular worldwide.

Taste of the country clotted cream comes from the UK. The milk is heated for onehour and then the cream is extracted. The result is a thick cream containing 55%milk fat. It is delicious eaten with fruit or cakes. Up to last year, it had only beensold in the UK, but last year it was also sold in northern Europe, in large cities only.This will be suitable for a European and US market.

Product 1 Product 2What/ call?Where/produce?How/eat?How/ produce?Where/sell? (up to now)Where/sell?(future)

2. With your partner, decide which would be the best and the worst product for yourcompany to market and prepare a report for the rest of the class. Include thefollowing points in your report.

■ Relevant food preferences in your country■ Recommended sales outlets for the chosen product■ Possible problems with distribution and/or sales■ Recommended advertising for the chosen product

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Game“Sell your object “Aim: to try to sell particular designs.Language needed: should, have to, must, can't do without etc.Persuasive language.

Instructions Step 1. Put on the board: Floating bed. Step 2. Try to sell this object to the other students, for example tell them that thisbed comes with waterproof sheets and pillows. It comes with a guarantee andtherefore, if anything goes wrong with the bed, it will be repaired free of charge. Tellthem that this bed will float in the sea, river, lake or pond and it comes with its ownemergency horn. If the person sleeping is getting too close to the edge of the bed andis becoming dangerously close to falling into the water, the horn will sound. Thisshould demonstrate to the students how they should go about selling their items. Step 3. Put the students into groups depending on the number of students in theclass. Step 4. Explain to the groups, that they have to try to sell the object that is on theircards. They must be persuasive and remember the language that the teacher used. Step 5. Initially, allow each student time to think about the language that he/sheneeds. Step 6. Tell the students to mingle and to try to sell the object. At the same time,they will buy an object that is explained appealingly to them.

Role-Play. “Local marketing”

Step 1. You work for an advertising agency.Read the information below about your new client.The company

Oster GmbH is a relatively new company based in Germany that produces ostrichmeat. The Oster brand is well known nationally and has a reputation as a healthyalternative to other meats, as well as the farms being 'ecological'.

The productOstrich meat is slightly more expensive than othermeat, but has no cholesterol and is high in protein.Oster has decided it is time to break into marketsoutside Germany.The promotionOster are selecting agencies who will create theiradvertising in each country. The fundamentalvalues of the Oster brand, ecology and health, mustform the basis of any campaign, but local marketingwill depend on local eating habits and differences

in attitudes towards the product.

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Step 2. In your agency, several groups have been given the job of creating a localpromotional campaign.The best one will be presented to Oster GmbH. Before working on your plan,consider the following points.

· What is the local attitude towards eating meat?· How will consumers react to the idea of eating ostrich?· What kind of reputation do German companies and products have in your

country? Step 3. Now plan your campaign, completing the checklist below.· Are health and / or ecology important factors when choosing food products?· Which food(s) would be the main competitor(s)?· Any other anticipated issues?

Reasons/CommentsBrand name OsterTarget consumersSexAgeSocial classGeographic locationMessageSloganStyle of advertisingPromotionTVRadioPostersIn-store promotionsMagazinesSponsorshipOtherOther information

Step 4. Present your plan to the rest of the agency and discuss their plans. You allhave to agree one final plan to present to Oster GmbH.

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Make up a dialogue. Product Presentation.

Exercise 1.

Work in two groups. Read the information about your product and complete thesummary.Group A: Look at the advertisement for the multi-lingual European interpreter. Readthe advertisement and complete the summary.“With the multi-lingual European interpreter you will never be lost for words.Make your business trips easier and more enjoyable.”Group B: Look at the advertisement for the Memo Recording Pen.

Communication ActivitiesGroup AYour multi-lingual European interpreterThis electronic interpreter is fluent in 7 languages(English, German, Spanish, French, Italian, Dutch and Swedish) with a workingknowledge of over 30,000 words in each language. It includes an automatic spellingcorrection so you can input foreign words phonetically, a 30-entry name/addressdatabank, full function calculator, metric and currency converters and word games.Batteries supplied.

Complete the summary chart.Appearance: stylish and compactBenefits:________________________________________________________________________________________________Price:

Special features: ____languages ____ words per language ____ entry word games

Group BLook at the advertisement for the Memo Recording Pen which Time magazine isoffering as a free gift. Complete the summary chart.

MEMO RECORDING PEN

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Appearance: slim and stylishSpecial features:• two functions:1 recorder2crisp, clear __________instantPrice:__________________Benefits:_________________

Exercise 2.In your groups prepare a sales presentation on your product. Find a partnerfrom the other group and give your presentation. Be enthusiastic and convinceyour partner to buy your product.

Exercise 3.Think of a product you would like to buy.· Describe the customer profile.· Describe its features and benefits.· Give reasons for the benefits (use linking words of cause and effect).Checklist for

Unit 7:

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SUPPLEMENTText 1.Product (business)The noun product is defined as a "thing produced by labor or effort" or the

"result of an act or a process", and stems from the verb produce from the Latinprōdūce(re), (to) lead or bring forth. Since 1575, the word "product" has referred toanything produced. Since 1695, the word has referred to "thing or things produced".The economic or commercial meaning of product was first used by politicaleconomist Adam Smith.

In marketing, a product is anything that can be offered to a market that mightsatisfy a want or need. In retailing, products are called merchandise. Inmanufacturing, products are purchased as raw materials and sold as finishedgoods. Commodities are usually raw materials such as metals and agriculturalproducts, but a commodity can also be anything widely available in the open market.In project management, products are the formal definition of the projectdeliverables that make up or contribute to delivering the objectives of the project.

In general usage, product may refer to a single item or unit, a group ofequivalent products, a grouping of goods or services, or an industrial classificationfor the goods or services.

Text 2.Equivalent or interchangeable productThe specific meaning of generic product names varies over time and location.

It can be defined as anything that can offer to a market for attention, acquisition.Some products such as bread, milk, and salt have been bartered or sold for centuries,but the meaning of "bread" or "milk" as a product varies. The technologies were notavailable for pasteurization and homogenization of milk until the 20th century, andthese food processing technologies are not used worldwide. Bread varies by type ofgrain, specific recipe, and size of loaf. In 1924, Morton Salt introduced iodized tablesalt, a product previously unavailable. Since 1961, pork bellies have traded on theChicago Mercantile Exchange, but due to selective breeding and changes in hogfeed, today's pork belly is not exactly equivalent to a 1960s pork belly. Certainproducts may be considered equivalent or interchangeable for the purposes of trade,record-keeping, and reporting, despite gradual changes in the product or variationsamong geographical locations.

The distinction between a new product and a minor modification to an existingproduct is not always clear. Certain products have a product life cycle in which thesupply and demand for the product increases then decreases over time. The demandfor certain food products such as bread will tend to increase with population, but thesupply and demand for a specific brand of bread may decline over time. In the UnitedStates, a patent for a product is recognition that the product is new in a legal sense."Utility patents may be granted to anyone who invents or discovers any new and

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useful process, machine, article of manufacture, or composition of matter, or any newand useful improvement thereof; design patents may be granted to anyone whoinvents a new, original, and ornamental design for an article of manufacture; and,plant patents may be granted to anyone who invents or discovers and asexuallyreproduces any distinct and new variety of plant." In business an equivalent,interchangeable or fungible product is defined by a company and its customers. Acompany's inventory is a set of physical products, or goods, that are usually recordedas counts of equivalent unique products, such as 50 8-oz cans of salsa. The equivalentunique products may be assigned a product code or item code, such that "50 8-ozcans of salsa" is recorded as "50 17766443" on the company's records. If thecompany carries two brands of 8-oz salsa, it may assign separate item codes to thebrands, or it may use a single item code for both brands.

Product numbers in many businesses clearly identify the product by linking toa full description.

Product identification codes such as Universal Product Code, Global TradeItem Number and International Standard Book Number allow multiplebusinesses to use a single product identification code to indicate one unit of a mass-produced product.

Lots or batchesLot numbers, batch numbers or control numbers are used in manufacturing to

sub-divide equivalent product by its manufacturing batch or run. The publishing pageof a book lists the printing run that produced that unique book. Industries such aspharmaceuticals, food processing, and petroleum use some form of control numberto sub-divide equivalent product for product testing or expiration dating. See alsoshelf life. Two separate lots may vary slightly, but they are not assigned separateproduct identification codes because the variation does not give them significantlydifferent features or uses as products.

Barcode labels on vaccines in the UK contain a product code but do notcurrently contain the batch number or expiry date. Inventory records of controlledsubstances in the United States must include a "batch number or other appropriateidentifying number".

Text 3.Product groupsCategoriesIn its online product catalogue, retailer Sears, Roebuck and Company divides

its products into departments, then presents products to shoppers according to (1)function or (2) brand. Each product has a Sears item number and a manufacturer'smodel number. The departments and product groupings that Sears uses are intendedto help customers browse products by function or brand within a traditionaldepartment store structure.

Sizes and colors

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A catalog number, especially for clothing, may group sizes and colors. Whenordering the product, the customer specifies size, color and other variables. Example:you walk into a store and see a group of shoes and in that group are sections of

different colors of that type of shoe and sizes for that shoe to satisfy your need.

Text 4.Product lineA product line is "a group of products that are closely related, either because

they function in a similar manner, are sold to the same customer groups, are marketedthrough the same types of outlets, or fall within given price ranges."

Many businesses offer a range of product lines which may be unique to a singleorganization or may be common across the business's industry. In 2002 the USCensus compiled revenue figures for the finance and insurance industry by variousproduct lines such as "accident, health and medical insurance premiums" and"income from secured consumer loans". Within the insurance industry, product linesare indicated by the type of risk coverage, such as auto insurance, commercialinsurance and life insurance.

Text 5.National and international product classificationsVarious classification systems for products have been developed for economic

statistical purposes. The North American Industry Classification System (NAICS)classifies companies by their primary product [this is not even close to true, NAICS isa production-oriented classification system, not a product-oriented classificationsystem --- the NAFTA signatories are working on a system that classifies productscalled NAPCS as a companion to NAICS. The European Union uses a "Classificationof Products by Activity" among other product classifications. The United Nationsalso classifies products for international economic activity reporting.

The Aspinwall Classification System (Leo Aspinwall, 1958) classifies andrates products based on five variables:

1. Replacement rate (How frequently is the product repurchased?)2. Gross margin (How much profit is obtained from each product?)3. Buyer goal adjustment (How flexible are the buyers' purchasing habits

with regard to this product?)4. Duration of product satisfaction (How long will the product produce

benefits for the user?)5. Duration of buyer search behaviour (How long will consumers shop for

the product?)The National Institute of Governmental Purchasing (NIGP) developed a

commodity and services classification system for use by state and local governments,the NIGP Code. The NIGP Code is used by 33 states within the United States as wellas thousands of cities, counties and political subdivisions. The NIGP Code is ahierarchical schema consisting of a 3 digit class, 5 digit class-item, 7 digit class-item-

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group and an 11 digit class-item-group-detail. Applications of the NIGP Code includevendor registration, inventory item identification, contract item management, spendanalysis and strategic sourcing.

Text 6.Product marketingProduct marketing deals with the first of the "4P"'s of marketing, which are

Product, Pricing, Place, and Promotion. Product marketing, as opposed to productmanagement, deals with more outbound marketing tasks. For example, productmanagement deals with the nuts and bolts of product development within a firm,whereas product marketing deals with marketing the product to prospects,customers, and others. Product marketing, as a job function within a firm, alsodiffers from other marketing jobs such as Marcom or marketing communications,online marketing, advertising, marketing strategy, etc.

A Product Market is something that is referred to when pitching a new productto the general public. The people you are trying to make your product appeal to isyour consumer market. For example: If you were pitching a new video game consolegame to the public, your consumer market would probably be the adult male VideoGame market (depending on the type of game). Thus you would carry out marketresearch to find out how best to release the game. Likewise, a massage chair wouldprobably not appeal to younger children, so you would market your product to anolder generation.

Text 7.Role of product marketingProduct marketing in a business addresses five important strategic questions:· What products will be offered (i.e., the breadth and depth of the product

line)?· Who will be the target customers (i.e., the boundaries of the market

segments to be served)?· How will the products reach those (i.e., the distribution channel)?· How much should the products be priced at?· How to introduce the products (i.e., the way to promote the products)?Product marketing vs. product managementProduct marketing frequently differs from product management in high-tech

companies. Whereas the product manager is required to take a product'srequirements from the sales and marketing personnel and create a productrequirements document (PRD), which will be used by the engineering team to buildthe product, the product marketing manager can be engaged in the task of creating amarketing requirements document (MRD), which is used as source for the productmanagement to develop the PRD.

In other companies the product manager creates both the MRDs and the PRDs,while the product marketing manager does outbound tasks like giving product

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demonstrations in trade shows, creating marketing collateral like hot-sheets, beat-sheets, cheat sheets, data sheets, and white papers. This requires the productmarketing manager to be skilled not only in competitor analysis, market research,and technical writing, but also in more business oriented activities like conductingROI and NPV analyses on technology investments, strategizing how the decisioncriteria of the prospects or customers can be changed so that they buy the company'sproduct vis-a-vis the competitor's product, etc.

In smaller high-tech firms or start-ups, product marketing and productmanagement functions can be blurred, and both tasks may be borne by oneindividual. However, as the company grows someone needs to focus on creating goodrequirements documents for the engineering team, whereas someone else needs tofocus on how to analyze the market, influence the "analysts", press, etc. When suchclear demarcation becomes visible, the former falls under the domain of productmanagement, and the latter, under product marketing. In Silicon Valley, in particular,product marketing professionals have considerable domain experience in a particularmarket or technology or both. Some Silicon Valley firms have titles such as ProductMarketing Engineer, who tend to be promoted to managers in due course.

The trend that is emerging in Silicon Valley is for companies to hire a team ofa product marketing manager with a technical marketing manager. The TechnicalMarketing role is becoming more valuable as companies become more competitiveand seek to reduce costs and time to market.

QualificationsTypical qualifications for this area of business are is a high level Marketing or

Business related degree, e.g. an MBA, not forgetting sufficient work experience inrelated areas. As a key skill is to be able to interact with technical staff, a backgroundin engineering is also an asset.

Text 8.Service Product ManagementService Product Management deals with managing a service product across

its complete life cycle. This organizational function is equally common betweenBusiness-to-business as well as Business-to-consumer businesses. A serviceproduct, unlike a hardware or software product, is intangible and manifests itself aspure professional services or as a combination of services with necessary softwareand/or hardware. The service product management practice ensures management of aprofitable service in the marketplace. Service Product manager identifies profitableservice space, packages services in a productized form and delivers the same to themarket. The function is a core service business management function and is a mix ofsales and marketing functions. The function interfaces with various organizationalgroups like Strategy, Planning, Financial Controls /Management Accounting, Sales,Marketing Communications etc.

Important functions of a Service Product ManagerService Ideal Generation/Management

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The function deals with capturing market's unmet and/or under-served needs,filtering the ideas based on business viability, business feasibility and potential,scalability, company strategy, and capital rate of return considerations. The end resultis a potential set of market feasibility and market features captured in a marketingrequirement document.

Service ProductizationPotentially saleable service features are captured and productized. That means

creation of necessary product documentation like executive materials, service productdocument, technical services document, service scope etc.

Service Sales SupportService product management supports service sales by providing accurate

resource estimate and in the right mix to provide an efficient product cost base onwhich to baseline the customer pricing.

Demand Supply PlanningServices profitability management by supporting balance between service

demand and supply of necessary service resources.Business Management System SupportEfficient management of service product cost and revenues according to

service contract and incurred costs. The same is generally needs a service productmanager to provide product data management for Enterprise resource planningsystems.

Marketing and Market CommunicationsIndustry event participation, press release, consensus building, delivering

service messaging through various available marketing channels.Knowledge ManagementManage the knowledge management process and best practices for the

service.Service Ramp DownManage the decision process of ramping down service product, and executing

the service ramp down thus ending the service product management process.

Text 9.Product managerA product manager researches, selects, develops, and places a company's

products.A product manager considers numerous factors such as target demographic,

the products offered by the competition, and how well the product fits in with thecompany's business model. Generally, a product manager manages one or moretangible products. However, the term may be used to describe a person who managesintangible products, such as music, information, and services.

A product manager's role in tangible goods industries is similar to a programdirector's role in service industries.

Diverse interpretations regarding the role of the product manager are the norm.The product manager title is often used in many ways to describe drastically different

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duties and responsibilities. Even within the high-tech industry where productmanagement is better defined, the product manager's job description varies widelyamong companies. This is due to tradition and intuitive interpretations by differentindividuals.

In the financial services industry (banking, insurance etc.), product managersmanage products (for example, credit card portfolios), their profit and loss, and alsodetermine the business development strategy.

In some companies, the product manager also acts as a:· Product marketing manager — may perform all outbound marketing

activities· Project manager — may perform all activities related to schedule and

resource management· Program manager — may perform activities related to schedule,

resource, and cross-functional execution

Text 10.Product differentiationIn marketing, product differentiation (also known simply as

"differentiation") is the process of distinguishing the differences of a product oroffering from others, to make it more attractive to a particular target market.Thisinvolves differentiating it from competitors' products as well as one's own productofferings.

Differentiation is a source of competitive advantage. Although research in aniche market may result in changing your product in order to improvedifferentiation, the changes themselves are not differentiation. Marketing or productdifferentiation is the process of describing the differences between products orservices, or the resulting list of differences. This is done in order to demonstrate theunique aspects of your product and create a sense of value. Marketing textbooks arefirm on the point that any differentiation must be valued by buyers (e.g.). The termunique selling proposition refers to advertising to communicate a product'sdifferentiation.

In economics, successful product differentiation leads to monopolisticcompetition and is inconsistent with the conditions for perfect competition, whichinclude the requirement that the products of competing firms should be perfectsubstitutes.

The brand differences are usually minor; they can be merely a difference inpackaging or an advertising theme. The physical product need not change, but itcould. Differentiation is due to buyers perceiving a difference, hence causes ofdifferentiation may be functional aspects of the product or service, how it isdistributed and marketed, or who buys it. The major sources of productdifferentiation are as follows.

· Differences in quality which are usually accompanied by differences inprice

· Differences in functional features or design

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· Ignorance of buyers regarding the essential characteristics and qualitiesof goods they are purchasing

· Sales promotion activities of sellers and, in particular, advertising· Differences in availability (e.g. timing and location).The objective of differentiation is to develop a position that potential

customers see as unique.Differentiation primarily impacts performance through reducing directness of

competition: As the product becomes more different, categorization becomes moredifficult and hence draws fewer comparisons with its competition. A successfulproduct differentiation strategy will move your product from competing basedprimarily on price to competing on non-price factors (such as product characteristics,distribution strategy, or promotional variables).

Most people would say that the implication of differentiation is the possibilityof charging a price premium; however, this is a gross simplification. If customersvalue the firm's offer, they will be less sensitive to aspects of competing offers; pricemay not be one of these aspects. Differentiation makes customers in a given segmenthave a lower sensitivity to other features (non-price) of the product.

Text 11.Product teardownA product teardown, or simply teardown, has an increasing interest in the

technical community to provide answers as to which semiconductor components areutilized in various consumer electronic products, such as the Wii video game consoleand Apple's iPhone (as well the myriad of other mobile phones). Seeing what isinside of these systems can help the technical community to better understand howeverything works, who has design wins, and can provide an estimate on the bill ofmaterials. The financial community has an interest in teardowns, as it can help themguide stock valuation, as often companies are not allowed to announce that they areused in a system due to non-disclosure agreements. Finally, consumers are interestedin finding out what makes their products "tick", but do not want to damage them bytearing them down.

Identifying semiconductor components in systems has become more difficultover the past years. The most notable change started with Apple's 8GB iPod nano,where they took readily available components, such as the Wolfson MicroelectonicsWM8750 and repackaged them with Apple branding. This makes it more difficult toidentify the actual device manufacturer and function of the component withoutperforming a decap – removing the outer packaging to analyze the die within.Typically there are markings on the die inside the package that can lead experiencedengineers to who actually created the device and what functionality it performs in thesystem.

Teardowns have also been performed in front of a live studio audience at theEmbedded Systems Conference. The first live teardown was performed on a ToyotaPrius at the Embedded Systems Conference in San Jose, April 2006. Since that time,

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additional live teardowns have been performed, most recently being the Sony OLEDTV, Gibson Self-Tuning Guitar, SuitSat space suit, and Sony Rolly MP3 player.

There seem to be two major companies that perform teardowns - Portelligentand Semiconductor Insights, both of which write featured articles in EETimes andTechOnline on their findings. Both companies were acquired by TechInsights, adivision of United Business Media in 2007. While Semiconductor Insights stillremains focused on their other business opportunities, their teardown services, as wellas Portelligent, are now a part of TechOnline, which is a subgroup of United BusinessMedia's TechInsights division. There also appear to be three main authors from thesecompanies that write the articles. David Carey, President for Portelligent, Jeff Brown,Senior Analyst for Portelligent, and Gregory A. Quirk, Technical Marketing Managerfor TechOnline.

Text 12.MerchandisingMerchandising is the methods, practices, and operations used to promote and

sustain certain categories of commercial activity.Promotional merchandisingIn retail commerce, merchandising means maximizing merchandise sales using

product design, selection, packaging, pricing, and display that stimulatesconsumers to spend more. This includes disciplines in pricing and discounting,physical presentation of products and displays, and the decisions about whichproducts should be presented to which customers at what time.

This annual cycle of merchandising differs between countries and even withinthem, particularly relating to cultural customs like holidays, and seasonal issueslike climate and local sporting and recreation.

In the United States for example, the basic retail cycle begins in early Januarywith merchandise for Valentine's Day, which is not until mid-February. Followingthis, Easter is the major holiday, while springtime clothing and garden-relatedmerchandise is already arriving at stores, often as early as mid-winter. Mothers Dayand Fathers Day are next, with graduation gifts (typically small consumer electronicslike digital cameras) often being marketed as "dads and grads" in June (though mostsemesters end in May). Summer merchandise is next, including patriotic-themedproducts with the American flag, out by Memorial Day in preparation forIndependence Day (with Flag Day in between).

By July, back-to-school is on the shelves and autumn merchandise is alreadyarriving, and at some arts and crafts stores, Christmas decorations. By September, thesummer merchandise is on final closeout and overstock of school supplies ismarked-down some as well, and Halloween (and often even more of the Christmas)merchandise is appearing. As the Halloween decorations and costumes dwindle inOctober, Christmas is already being pushed on consumers, and by the day afterwardretailers are going full-force with advertising, although the "official" season does notstart until the day after Thanksgiving. Christmas clearance sales now begin even

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before Christmas at most retailers, and continue on to as little as New Year's Day oras long as February.

Merchandising also varies within retail chains, where stores in places likeDenver, Minneapolis, or Buffalo might carry snowblowers, while stores in Floridaand southern California might instead carry beach clothing and barbecue grills allyear. Coastal-area stores might carry water skiing equipment, while ones nearmountain ranges would likely have snow skiing and snowboarding gear if there areski areas nearby.

Trading industryIn Eastern Europe, particularly in Russia, the term “merchandising” is

commonly used within the trading industry and denotes all marketing and salesstimulation activities around PoS (point of sale): design, creation, promotion, careand training of the sales staff. Basically a merchandiser is someone who iscontinuously involved in business promotion by buying and selling of goods.

Text 13.Retail supply chainIn the supply chain, merchandising is the practice of making products in retail

outlets available to consumers, primarily by stocking shelves and displays. While thisused to be done exclusively by the stores' employees, many retailers have foundsubstantial savings in requiring it to be done by the manufacturer, vendor, orwholesaler that provides the products to the retail store. In the United Kingdom thereare a number of organizations that supply merchandising services to support retailoutlets with general stock replenishment and merchandising support in new stores.By doing this, retail stores have been able to substantially reduce the number ofemployees needed to run the store.

While stocking shelves and building displays is often done when the product isdelivered, it is increasingly a separate activity from delivering the product. In grocerystores, for example, almost all products delivered directly to the store from amanufacturer or wholesaler will be stocked by the manufacturer's/wholesaler'semployee who is a full time merchandiser. Product categories where this is commonare Beverage (all types, alcoholic and non-alcoholic), packaged baked goods (breadand pastries), magazines and books, and health and beauty products. For major foodmanufacturers in the beverage and baked goods industries, their merchandisers areoften the single largest employee group within the company. For nationwide brandedgoods manufacturers such as The Coca-Cola Company and PepsiCo, their respectivemerchandiser work forces number in the thousands.

LicensingIn marketing, one of the definitions of merchandising is the practice in which

the brand or image from one product or service is used to sell another. Trademarkedbrand names, logos, or character images are licensed to manufacturers of productssuch as toys or clothing, which then make items in or emblazoned with the image ofthe license, hoping they'll sell better than the same item with no such image. For theowners of the intellectual property in question, merchandising is a very popular

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source of revenue, due to the low cost of letting a third party manufacture themerchandise, while the IP owners simply sit back and collect the merchandising fees.

Text 14.Merchandising for…ChildrenMerchandising for children is most prominently seen in connection with films

and games, usually those in current release, and with television shows orientedtowards children.

Merchandising, especially in connection with child-oriented films and TVshows, often consists of toys made in the likeness of the show's characters (actionfigures) or items which they use. However, sometimes it can be the other way around,with the show written to include the toys, as advertising for the merchandise. Thefirst major example of this was the TV show "He-man and the Masters of theUniverse," in the early 1980s, but this practice has been common in children'sbroadcasting ever since.

Sometimes merchandising from a television show can grow far beyond theoriginal show, even lasting decades after the show has largely disappeared frompopularity. In other cases, large amounts of merchandise can be generated from apitifully small amount of source material (Mashimaro).

AdultsExample of professional sports merchandising is A Boston Celtics cap

manufactured by Adidas.The most common adult-oriented merchandising is that related to professional

sports teams (and their players).A smaller niche in merchandising is the marketing of more adult-oriented

products in connection with similarly adult-oriented films and TV shows. This iscommon especially with the science fiction and horror genres. (Examples: Star Trek,McFarlane Toys) Occasionally shows which were intended more for children find afollowing among adults, and you can see a bit of a crossover, with products from thatshow oriented towards both adults and children. (Gundam model kits)

Sometimes a brand of non-media products can achieve enough recognitionand respect that simply putting its name or images on a completely unrelated item cansell that item. (An example would be Harley-Davidson branded clothing.)

Prop replicasYet another path official merchandising follows sometimes is the one so-called

prop replica market. Mainly focused on fan-made articles, prop replicas arebecoming more and more famous as users tend to collect those pieces of moviememorabilia that med/big companies do not mass-produce, reaching even higherlevels of quality than certain 'licensed' replicas.

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Text 15.Visual merchandisingA. Visual merchandising, until recently called simply merchandising, is the

activity of promoting the sale of goods, especially by their presentation in retailoutlets.(New Oxford Dictionary of English, 1999, Oxford University Press). Thisincludes combining product, environment, and space into a stimulating and engagingdisplay to encourage the sale of a product or service. It has become an importantelement in retailing that is a team effort involving senior management, architects,merchandising managers, buyers, the visual merchandising director, designers, andstaff. Visual merchandising starts with the store building itself. The managementdecides on the store design to reflect the products the store is going to sell and how tocreate a warm, friendly, and approachable atmosphere for its potential customers.

Many elements can be used by visual merchandisers in creating displays,including colour, lighting, space, product information, sensory inputs such as smell,touch, and sound as well as technologies such as digital displays and interactiveinstallations.

Visual merchandising is not a science; there are no absolute rules. It is morelike an art in the sense that there are implicit rules but that these also exist to bebroken for striking effects. The main principle of visual merchandising is that it isintended to increase sales, which is not the case with a "real" art.

Visual merchandising is one of the final stages in trying to set out a store in away that customers will find attractive and appealing and it should follow and reflectthe principles that underpin the store’s image. Visual merchandising is the way onedisplays 'goods for sale' in the most attractive manner with the end purpose of makinga sale. "If it does not sell, it is not visual merchandising."

Especially in today’s challenging economy, people may avoid designers/ visualmerchandisers because they fear unmanageable costs. But in reality, visualmerchandisers can help economise by avoiding costly mistakes. With guidance of aprofessional, retailer can eliminate errors, saving time and money. It is important tounderstand that the visual merchandiser is there, not to impose ideas, but to helpclients articulate their own personal style.

Visual merchandising is the art of implementing effective design ideas toincrease store traffic and sales volume. VM is an art and science of displayingmerchandise to enable maximum sale. VM is a tool to achieve sales and targets, atool to enhance merchandise on the floor, and a mechanism to communicate to acustomer and influence his decision to buy. VM uses season based displays tointroduce new arrivals to customers, and thus increase conversions through a plannedand systematic approach by displaying stocks available.

Recently visual merchandising has gained in importance as a quick and costeffective way to revamp retail stores.

A close sister to visual merchandising is "retail experience". "Customerexperience" looks at the same issues around product presentation but from thecustomer perspective, rather than the retailer perspective. In optimal retailenvironments such as the Apple Retail Stores, the visual merchandising, customer

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experience, and store design are all in synch creating amazing environments andunbelievable sales.

B. PurposeRetail professionals display to make the shopping experience more

comfortable, convenient and customer friendly by:· Making it easier for the shopper to locate the desired category and

merchandise.· Making it easier for the shopper to self-select.· Making it possible for the shopper to co-ordinate & accessorize.· Providing information on sizes, colours & prices.· Informing about the latest fashion trends by highlighting them at

strategic locations.Merchandise presentation refers to most basic ways of presenting merchandise

in an orderly, understandable, ’easy to shop’ and ‘find the product’ format. Thiseasier format is especially implemented in fast fashion retailers

VM helps in:· educating the customers about the product/service in an effective and

creative way.· establishing a creative medium to present merchandise in 3D

environment, thereby enabling long lasting impact and recall value.· setting the company apart in an exclusive position.· establishing linkage between fashion, product design and marketing by

keeping the product in prime focus.· combining the creative, technical and operational aspects of a product

and the business.drawing the attention of the customer to enable him to take purchase decision

within shortest possible time, and thus augmenting the selling process.C. HistoryEvery shopkeeper and merchant's primary objective is to sell merchandise.

When the giant nineteenth century dry goods establishments like Marshall Field &Co. shifted their business from wholesale to retail the visual display of goods becamenecessary to attract the retail customer. The store windows no longer simply allowednatural light to shine in the building or act as storage space for stock; they becameimportant venues to attractively display the store's merchandise. Gradually, thedesign aesthetic used in window displays moved indoors and became part of theoverall interior store design, eventually displacing the importance windows altogetherin suburban malls.

Museums and department stores in America have a shared history of displayingtheir products, both having come of age in the last quarter of the nineteenth century.Like world's fairs, department stores and museums crowded everything together onshelves or in display cases. Today displays in museums are referred to as exhibitions,while displays in stores are referred to as "Visual Merchandising. Essentially, visualmerchandising is the selling of a store's goods through visual means, incorporatingadvertising, and window displays, and interior sales floor design and display.Throughout the twentieth century, well-known artists such as Salvador Dalí and

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Andy Warhol created window displays, while other artists who are lesser known werecommissioned to design unique objects specifically for visual merchandisingpurposes.

1. Sell by showing and promoting.2. Create an emotional connect between the viewer and the display.3. Encourage the shopper to enter the store.4. Get the customer to pause and “shop” the selling floor.5. Establish, promote, and enhance the store’s visual image.6. Entertain customers and enhance their shopping experience.7. Introduce and explain new products.

D. VariancesPlanogramA Planogram allows planning of the arrangement of merchandise on a given

fixture configuration to support sales through proper placement of merchandise byStyle, Option, Size, Price points, etc. It also enables the chain of chairs to have thesame merchandise displayed in a coherent and similar manner across all the stores.

The main purpose is to support ease of applicability to the merchandiser whilealso increasing selection & enhancing the merchandise display in a neat andorganized manner.

Window DisplaysA window display is also a "visiting card" for the store. Windows are the most

important factor within the store/shop front as they can communicate style, content,and price point. They can be seductive and exciting, based on emotional stimulus, orprice-based (when they clearly emphasize value for money with easy and obviousticketing). For the retailer, the window is among the most controllable elements inrelation to image and to what is happening inside the store, and there are number ofdecisions to be made about a how these effects are achieved.

The best store windows can generate great excitement and talking point for anentire city. They contribute to the environment by entertaining pedestrians, whilesimultaneously communicating the products and services on offer.

For a retailer willing to exploit the full potential that a window gives, theimage-building process can be exciting and have enormous potential. A fashionretailer, for instance, will often change a window weekly to show the latest items onoffer. A glance into a shop's window by a passerby establishes the time of the yearand, very likely, a timely contemporary event. It might combine seasonal and festivepoints of the year such as Back-to-school, Spring, Summer, Easter, Christmas, NewYear approaching, Diwali, Valentine's Day, Mother's Day etc. At other times thepropping may be based on color schemes, materials or cultural themes - thepossibilities for innovative ideas around such themes are endless.

SummaryWhat is merchandising? It's as simple as taking the product (or

merchandise) from a company, and selling it to the customer. To make sure that

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the merchandise actually sells, companies take great pains to make sure theirproducts are visible in stores and presented in an appealing fashion.

Merchandising SpecialistThis person actually represents the company in retail stores. By seeing the store

layout, they make sure the product is located in an obvious and visible location, alsoknown as product placement. The merchandising specialist also insures that theproduct is presented in an appealing way. This person must have strong sales andnegotiating skills, as well as initiative and an eye for proper placement.

MerchandiserThe merchandiser coordinates with the design team to effectively present the

product or product line. He or she develops colors and specifications, and performsmarket research to determine the most effective ways to sell and promote the product.This person needs strong communication and negotiation skills and visual andanalytical abilities. He or she also needs to be a creative and innovative thinker.

MerchandisingElement of marketing concerned especially with the sale of goods and

services to customers. One aspect of merchandising is advertising, which aims tocapture the interest of the segment of the population most likely to buy the product.Merchandising also involves product display; companies provide retailers withdisplay and promotional materials and negotiate shelf space for their products. Thedevelopment of sales strategies includes the determination of pricing, discounts, andspecial offers; the invention of sales pitches; and the identification of avenues forsales, including store-based retailing and alternative means such as direct-mailmarketing, telemarketing, commercial Web sites, vending machines, and door-to-door sales.

Text 16.Brand managementA. Brand management is the application of marketing techniques to a specific

product, product line, or brand. It seeks to increase the product's perceived value tothe customer and thereby increase brand franchise and brand equity. Marketers see abrand as an implied promise that the level of quality people have come to expect froma brand will continue with future purchases of the same product. This may increasesales by making a comparison with competing products more favorable. It may alsoenable the manufacturer to charge more for the product. The value of the brand isdetermined by the amount of profit it generates for the manufacturer. This can resultfrom a combination of increased sales and increased price, and/or reduced COGS(cost of goods sold), and/or reduced or more efficient marketing investment. All ofthese enhancements may improve the profitability of a brand, and thus, "BrandManagers" often carry line-management accountability for a brand's P&L (Profit andLoss) profitability, in contrast to marketing staff manager roles, which are allocatedbudgets from above, to manage and execute. In this regard, Brand Management isoften viewed in organizations as a broader and more strategic role than Marketingalone.

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The annual list of the world’s most valuable brands, published by Interbrandand Business Week, indicates that the market value of companies often consistslargely of brand equity. Research by McKinsey & Company, a global consultingfirm, in 2000 suggested that strong, well-leveraged brands produce higher returns toshareholders than weaker, narrower brands. Taken together, this means that brandsseriously impact shareholder value, which ultimately makes branding a CEOresponsibility.

The discipline of brand management was started at Procter & Gamble PLC as aresult of a famous memo by Neil H. McElroy.

B. PrinciplesA good brand name should:· be protected (or at least protectable) under trademark law.· be easy to pronounce.· be easy to remember.· be easy to recognize.· be easy to translate into all languages in the markets where the brand will

be used.· attract attention.· suggest product benefits (e.g.: Easy-Off) or suggest usage (note the

tradeoff with strong trademark protection.)· suggest the company or product image.· distinguish the product's positioning relative to the competition.· be attractive.· stand out among a group of other brands.

Text 17.Types of brandsA number of different types of brands are recognized. A "premium brand"

typically costs more than other products in the same category. These are sometimesreferred to as 'top-shelf' products. An "economy brand" is a brand targeted to a highprice elasticity market segment. They generally position themselves as offering allthe same benefits as a premium product, for an 'economic' price. A "fighting brand" isa brand created specifically to counter a competitive threat. When a company's nameis used as a product brand name, this is referred to as corporate branding. When onebrand name is used for several related products, this is referred to as familybranding. When all a company's products are given different brand names, this isreferred to as individual branding. When a company uses the brand equityassociated with an existing brand name to introduce a new product or product line,this is referred to as "brand extension." When large retailers buy products in bulkfrom manufacturers and put their own brand name on them, this is called privatebranding, store brand, white labelling, private label or own brand (UK). Privatebrands can be differentiated from "manufacturers' brands" (also referred to as"national brands"). When different brands work together to market their products, thisis referred to as "co-branding". When a company sells the rights to use a brand name

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to another company for use on a non-competing product or in another geographicalarea, this is referred to as "brand licensing." An "employment brand" is created whena company wants to build awareness with potential candidates. In many cases, suchas Google, this brand is an integrated extension of their customer.

Text 18.Brand ArchitectureA. The different brands owned by a company are related to each other via

brand architecture. In "product brand architecture", the company supports manydifferent product brands with each having its own name and style of expression whilethe company itself remains invisible to consumers. Procter & Gamble, considered bymany to have created product branding, is a choice example with its many unrelatedconsumer brands such as Tide, Pampers, Abunda, Ivory and Pantene.

With "endorsed brand architecture", a mother brand is tied to product brands,such as The Courtyard Hotels (product brand name) by Marriott (mother brandname). Endorsed brands benefit from the standing of their mother brand and thussave a company some marketing expense by virtue promoting all the linked brandswhenever the mother brand is advertised.

The third model of brand architecture is most commonly referred to as"corporate branding". The mother brand is used and all products carry this name andall advertising speaks with the same voice. A good example of this brand architectureis the UK-based conglomerate Virgin. Virgin brands all its businesses with its name(e.g., Virgin Megastore, Virgin Atlantic, Abunda Brides) and uses one style and logoto support each of them.

B. TechniquesCompanies sometimes want to reduce the number of brands that they market.

This process is known as "Brand rationalization." Some companies tend to createmore brands and product variations within a brand than economies of scale wouldindicate. Sometimes, they will create a specific service or product brand for eachmarket that they target. In the case of product branding, this may be to gain retailshelf space (and reduce the amount of shelf space allocated to competing brands). Acompany may decide to rationalize their portfolio of brands from time to time to gainproduction and marketing efficiency, or to rationalize a brand portfolio as part ofcorporate restructuring.

A recurring challenge for brand managers is to build a consistent brand whilekeeping its message fresh and relevant. An older brand identity may be misaligned toa redefined target market, a restated corporate vision statement, revisited missionstatement or values of a company. Brand identities may also lose resonance with theirtarget market through demographic evolution. Repositioning a brand (sometimescalled rebranding), may cost some brand equity, and can confuse the target market,but ideally, a brand can be repositioned while retaining existing brand equity forleverage.

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C. Brand orientation is a deliberate approach to working with brands, bothinternally and externally. The most important driving force behind this increasedinterest in strong brands is the accelerating pace of globalization. This has resulted inan ever-tougher competitive situation on many markets. A product’s superiority is initself no longer sufficient to guarantee its success. The fast pace of technologicaldevelopment and the increased speed with which imitations turn up on the markethave dramatically shortened product lifecycles. The consequence is that product-related competitive advantages soon risk being transformed into competitiveprerequisites. For this reason, increasing numbers of companies are looking for other,more enduring, competitive tools – such as brands. Brand Orientation refers to "thedegree to which the organization values brands and its practices are oriented towardsbuilding brand capabilities” (Bridson & Evans, 2004).

D. Online Brand ManagementCompanies are embracing brand reputation management as a strategic

imperative and are increasingly turning to online monitoring in their efforts toprevent their public image from becoming tarnished. Online brand reputationprotection can mean monitoring for the misappropriation of a brand trademark byfraudsters intent on confusing consumers for monetary gain. It can also meanmonitoring for less malicious, although perhaps equally damaging, infractions, suchas the unauthorized use of a brand logo or even for negative brand information (andmisinformation) from online consumers that appears in online communities and othersocial media platforms. The red flag can be something as benign as a blog rant abouta bad hotel experience or an electronic gadget that functions below expectations.

Text 19.ChallengesThere are several challenges associated with setting objectives for a brand or

product category.· Brand managers sometimes limit themselves to setting financial and

market performance objectives. They may not question strategic objectives if theyfeel this is the responsibility of senior management.

· Most product level or brand managers limit themselves to setting short-term objectives because their compensation packages are designed to reward short-term behavior. Short-term objectives should be seen as milestones towards long-termobjectives.

· Often product level managers are not given enough information toconstruct strategic objectives.

· It is sometimes difficult to translate corporate level objectives intobrand- or product-level objectives. Changes in shareholders' equity are easy for acompany to calculate. It is not so easy to calculate the change in shareholders' equitythat can be attributed to a product or category. More complex metrics like changes inthe net present value of shareholders' equity are even more difficult for the productmanager to assess.

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· In a diversified company, the objectives of some brands may conflictwith those of other brands. Or worse, corporate objectives may conflict with thespecific needs of your brand. This is particularly true in regard to the trade-offbetween stability and riskiness. Corporate objectives must be broad enough thatbrands with high-risk products are not constrained by objectives set with cash cows inmind. The brand manager also needs to know senior management's harvestingstrategy. If corporate management intends to invest in brand equity and take a long-term position in the market (i.e. penetration and growth strategy), it would be amistake for the product manager to use short-term cash flow objectives (i.e. priceskimming strategy). Only when these conflicts and tradeoffs are made explicit, is itpossible for all levels of objectives to fit together in a coherent and mutuallysupportive manner.

· Brand managers sometimes set objectives that optimize the performanceof their unit rather than optimize overall corporate performance. This is particularlytrue where compensation is based primarily on unit performance. Managers tend toignore potential synergies and inter-unit joint processes.

· Brands are sometimes criticized within social media web sites and thismust be monitored and managed (if possible).

Text 20.Product life cycle managementProduct life cycle Management is the succession of strategies used by

management as a product goes through its product life cycle. The conditions in whicha product is sold changes over time and must be managed as it moves through itssuccession of stages.

A. Product life cycleThe product life cycle goes through many phases, involves many professional

disciplines, and requires many skills, tools and processes. Product life cycle (PLC)has to do with the life of a product in the market with respect to business/commercialcosts and sales measures; whereas product life cycle management (PLM) has more todo with managing descriptions and properties of a product through its developmentand useful life, mainly from a business/engineering point of view. To say that aproduct has a life cycle is to assert four things: 1) that products have a limited life, 2)product sales pass through distinct stages, each posing different challenges,opportunities, and problems to the seller, 3) profits rise and fall at different stages ofproduct life cycle, and 4) products require different marketing, financial,manufacturing, purchasing, and human resource strategies in each life cycle stage.

The different stages in a product life cycle are:1. Market introduction stageI:* costs are highII:* slow sales volumes to startIII:* little or no competition - competitive manufacturers watch for

acceptance/segment growth lossesIV:* demand has to be created

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V:* customers have to be prompted to try the productVI: makes no money at this stage2. Growth stageI:* costs reduced due to economies of scaleII:* sales volume increases significantlyIII:* profitability begins to riseIV:* public awareness increasesV:* competition begins to increase with a few new players in establishing

marketVI:* increased competition leads to price decreases3. Mature stageI:* Costs are lowered as a result of production volumes increasing and

experience curve effectsII:* sales volume peaks and market saturation is reachedIII:* increase in competitors entering the marketIV:* prices tend to drop due to the proliferation of competing productsV:* brand differentiation and feature diversification is emphasized to maintain

or increase market shareVI:* Industrial profits go down4.Saturation and decline stageI:* costs become counter-optimalII:* sales volume decline or stabilizeIII:* prices, profitability diminishIV:* profit becomes more a challenge of production/distribution efficiency

than increased salesRequest for DeviationIn the process of building a product following defined procedure, an RFD is a

request for authorization, granted prior to the manufacture of an item, to depart froma particular performance or design requirement of a specification, drawing or otherdocument, for a specific number of units or a specific period of time.

B. Market IdentificationA "micro-market" can be used to describe a Walkman, more portable, as well

as individually and privately recordable; and then Compact Discs ("CDs") broughtincreased capacity and CD-R offered individual private recording...and so the processgoes. The below section on the "technology lifecycle" is a most appropriate conceptin this context. Most of the context is not in English so you may need a translator.

In short, termination is not always the end of the cycle; it can be the end of amicro-entrant within the grander scope of a macro-environment. The auto industry,fast-food industry, petro-chemical industry, are just a few that demonstrate a macro-environment that overall has not terminated even while micro-entrants over time havecome and gone.

C. Lessons of the Product Life Cycle (PLC)It is claimed that every product has a life cycle. It is launched, it grows, and at

some point, may die. A fair comment is that - at least in the short term - not allproducts or services die. Jeans may die, but clothes probably will not. Legal services

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or medical services may die, but depending on the social and political climate,probably will not.

Even though its validity is questionable, it can offer a useful 'model' formanagers to keep at the back of their mind. Indeed, if their products are in theintroductory or growth phases, or in that of decline, it perhaps should be at the frontof their mind; for the predominant features of these phases may be those revolvingaround such life and death. Between these two extremes, it is salutary for them tohave that vision of mortality in front of them.

However, the most important aspect of product life-cycles is that, even undernormal conditions, to all practical intents and purposes they often do not exist (hence,there needs to be more emphasis on model/reality mappings). In most markets themajority of the major brands have held their position for at least two decades. Thedominant product life-cycle, that of the brand leaders which almost monopolize manymarkets, is therefore one of continuity.

In the criticism of the product life cycle, Dhalla & Yuspeh state:...clearly, the PLC is a dependent variable which is determined by market

actions; it is not an independent variable to which companies should adapt theirmarketing programs. Marketing management itself can alter the shape and duration ofa brand's life cycle.

Thus, the life cycle may be useful as a description, but not as a predictor; andusually should be firmly under the control of the marketer. The important point is thatin many markets the product or brand life cycle is significantly longer than theplanning cycle of the organisations involved. Thus, it offers little practical value formost marketers. Even if the PLC (and the related PLM support) exists for them, theirplans will be based just upon that piece of the curve where they currently reside (mostprobably in the 'mature' stage); and their view of that part of it will almost certainlybe 'linear' (and limited), and will not encompass the whole range from growth todecline.

Text 21.Types of products.Most people with hearing loss can benefit from hearing aids. Just as there are

different types and degrees of hearing loss, there are different types of instruments.And they offer a wide range of functions and features to address various needs.

Here is a brief summary of the most popular types and styles of hearing aidsavailable today:

Completely-In-the-Canal instruments (CIC)CICs are so small as to be virtually invisible in the ear. They can only be worn bypeople whose ear canals are large enough to accommodate them. And the very smallbattery requires good manual dexterity. CICs are not suitable for severe hearinglosses.

In-the-Canal instruments (ITC)A little bigger than the CIC, ITC instruments also fit far into the ear canal. They use a

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slightly larger battery than the CIC style. This style is ideal for mild to moderatehearing losses.

In-the-Ear instruments (ITE)These instruments can be used for a wider range of hearing losses. Due to their largersize, ITEs can accommodate larger sound amplifiers and more features such as atelephone switch. Their size also makes them easier to handle.

Behind-the-Ear instruments (BTE)BTEs are generally more powerful than smaller devices due to the stronger amplifierand larger battery. They are also very robust – making them perfect for children. Andthey come in a wide range of hair, skin-tone and fun colours. In BTE instruments theelectronics sit behind the ear and the sound is directed through a tube into the earcanal.

Receiver-In-The-Ear instruments (RITE)In RITE instruments the receiver sits comfortably inside the ear canal rather than inthe case behind the ear.This receiver is built into a soft and open dome or into a micromould. RITE technology ensures better sound quality and a high level of comfort.

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Укладачі:

Чередніченко Галина Анатоліївна

Мірочник Віра Вадимівна

Кияшко Оксана Василівна