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Архитектура Аудит Военная наука Иностранные языки Медицина Металлургия Метрология Образование Политология Производство Психология Стандартизация Технологии |
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Архитектура Аудит Военная наука Иностранные языки Медицина Металлургия Метрология Образование Политология Производство Психология Стандартизация Технологии |
Text 16. Pricing in the Airline Industry
Companies that market their products internationally must decide what prices to charge in the different countries in which they operate. In some cases, a company can set a uniform worldwide price. For example, Airbus sells its jetliners at about the same price everywhere, whether in the United States, Europe or a Third World country. However, most companies adjust their prices to reflect local market conditions. The price that a company should charge in a specific country depends on many factors, including economic conditions, competitive situations, laws and regulations, and development of the wholesaling and retailing system. Consumer perceptions and preferences may also vary from country to country, calling for different prices. Or the company may have different marketing objectives in various world markets, which require changes in pricing strategy. For example, Sony might introduce a new product into mature markets in highly developed countries with the goal of quickly gaining mass-market share — this would call for a penetration pricing strategy. In contrast, it might enter a less developed market by targeting smaller, less price-sensitive segments - in this case, market-skimming pricing makes sense. Critics also charge that companies' marketing practices can harm other companies and reduce competition. Three problems are involved here: acquisition of competitors, marketing practices that create barriers to entry, and unfair competitive marketing practices. Critics claim that firms are harmed and competition reduced when companies expand by acquiring competitors rather than by developing their own new products. Acquisition is a complex subject. Acquisitions can sometimes be good for society. The acquiring company may gain economies of scale that lead to lower costs and lower prices. A well-managed company may take over a poorly managed company and improve its efficiency. An industry that was not very competitive might become more competitive after the acquisition. But acquisitions can also be harmful and are therefore closely regulated by the government. Critics have also claimed that marketing practices bar new companies from entering an industry. The use of patents and heavy promotion spending can tie up suppliers or dealers to keep out or drive out competitors. Finally, some firms have in fact used unfair competitive marketing practices with the intention of hurting or destroying other firms. Various laws work to prevent such predatory competition. It is difficult, however, to prove that the intent or action was really predatory. When Laker Airlines first attacked British Airways' most profitable routes, the latter delayed its counterattack. Laker began to borrow huge sums of money to expand its fleet. It was in vast debt and had interest obligations on its huge dollar loans when the American dollar appreciated against other currencies. British Airways then aggressively cut prices on Laker's most lucrative routes, restoring these to normal levels only after driving Laker into bankruptcy and out of the competitive arena altogether. The question is whether this was unfair competition or the healthy competition of a more efficient carrier against the less efficient.
Exercise 121. Answer the question. 1. What prices can companies set to market their products internationally? 2. What factors does the price that a company should charge in a specific country depend on? 3. What do critics also charge companies' marketing practices with? 4. What are advantages of acquisitions? 5. Why is it difficult to prove that the company’s intent or action was really predatory?
Exercise 122 . Give Ukrainian equivalents. To set a uniform worldwide price, jetliner, Third World country, to reflect local market conditions, competitive situations, laws and regulations, to introduce a new product into mature market, in contrast, to require changes in pricing strategy, to call for different prices, to acquire competitors, to take over a poorly managed company, to be regulated by the government, to borrow huge sums of money, to have interest obligations, to drive into bankruptcy.
Exercise 123 . Give English equivalents. Система оптової та роздрібної торгівлі, високорозвинені країни, стратегія ціноутворення з метою проникнення на ринок, зменшити конкуренцію, отримати долю на ринку товарів масового виробництва, захоплення конкурентів, розробляти новий продукт, економія за рахунок масштабів виробництва, добре керована компанія, підвищити ефективність, мати великий борг, позика, знизити ціну. Exercise 124 . Find and translate grammar structures with “must”, “can”, ”should”, “may, “might”. Exercise 125. Learn the following words and word combinations.
Exercise 126. Read, translate and give the gist of text 17. Text 17. Place Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer. It can include any physical store as well as virtual stores on the Internet. Frequently there may be a chain of intermediaries; each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user. A number of distribution channels may be available: 1) Direct selling, such as through catalogues or via mail order, Internet and telephone sales. 2) Agent, who typically sells direct on behalf of the producer. 3) Distributor (also called wholesaler), who sells to retailers. 4) Retailer (also called dealer or reseller), who sells to end customers. While direct marketing through traditional channels is growing rapidly, online marketing is growing explosively. Early direct marketers - catalogue companies, direct mailers and telemarketers - gathered customer names and sold their goods mainly through the post and by telephone. Today, improved database technologies and new media - computers, modems, fax machines, e-mail, the Internet and online services - permit more sophisticated direct marketing. Their availability and reasonable costs have greatly enlarged direct marketing opportunities. Agents and brokers do not take possession of the goods, but are paid a commission for facilitating buying and selling. Wholesaling includes all the activities involved in selling goods or services to those who are buying for the purpose of resale or for business use. Wholesalers perform many functions, including selling and promoting, buying and assortment building, transporting, financing, risk taking, supplying market information and providing management services and advice. Retailers perform activities involved in selling goods and services directly to final consumers for their personal use. More business firms are now paying attention to physical distribution or marketing logistics. Logistics is an area of potentially high cost savings and improved customer satisfaction. Better logistics management can provide a significant source of competitive advantage for companies. Marketing logistics involves coordinating the activities of the entire supply chain to deliver maximum value to customers. The primary logistics functions include order processing, warehousing, inventory management and transportation. Exercise 127. Answer the questions. 1. What is place? 2. What is a function of a chain of intermediaries? 3. What distribution channels may be available? 4. Through what traditional channels did early direct marketers sell their goods? 5. What do improved database technologies and new media permit today? 6. What are the duties of agents and brokers? 7. What do wholesalers perform? 8. What activities do retailers perform? 8. What can better logistics management provide? 9. What does marketing logistics involve?
Exercise 128 . Give Ukrainian equivalents. Intermediary, manufacturer, service provider, virtual store, to take into account, via mail order, to sell direct on behalf of the producer, wholesaler, retailer, to sell the goods through the post and by telephone, improved database technologies, sophisticated direct marketing, to take possession of the goods, to buy for the purpose of resale, to provide management services and advice, competitive advantage, marketing logistics, supply chain, order processing, warehousing.
Exercise 129 . Find in the text the synonyms to the following. T ake into consideration , be on hand, quickly, advanced, allow, increase, own, focus attention, competitive edge, cost reduction, purchase.
Exercise 130. Analyze all ing-forms in the text.
Exercise 131. Learn the following words and word combinations.
Exercise 132. Read, translate and give the gist of text 18. Text 18. People Staff For most organizations, staff are the key to success - the most important tool for the organization's success - and they can be motivated to promote their company’s product or service. Motivation marketing engages staff and gets them interested by using incentives. It also aims to recognize and reward staff efforts by offering prizes or rewards for good performance - for example, with a monthly incentive. The benefits of motivation marketing include: - increased job satisfaction: happier people at work; - improved productivity: more work done in less time; - improved performance: the work is done better; - encouraging behavior changes: for example, introducing new work practices; - increased sales force effectiveness: for example, to achieve higher sales figures; - improved product launches: boost market penetration and gain market share more quickly. Staff incentive schemes, also known as incentive programmes - formal schemes designed to encourage staff to act in a certain way - are used by a wide range of companies in order to improve staff and distributor performance. Incentives such as prizes, rewards or gifts can boost morale (make staff feel more positive about their job and their employer). Building staff loyalty will result in lower staff turnover - that is, fewer people leaving the company. Another benefit is reduced staff absenteeism, a reduction in the number of days when employees are not at work through sickness. Measuring staff reaction and getting feedback – finding out what staff think about the programme - are essential to getting it right. In order to motivate staff, a company may choose to use cash or noncash awards such as a travel incentive - sending staff on a short trip or holiday. Big ticket giveaways, such as cars or very expensive holidays, are effective sales incentives – they can help motivate staff to sell more. During the qualifying period for an award or prize, teams are usually more motivated. Nominations for awards can come from colleagues. Sometimes an employee may be nominated by a manager, perhaps because of high sales figures. Events, such as parties, weekends away, games and competitions, can be very successful for team building - increasing effective teamwork within a company or department. Buyers Market segmentation identifies groups of buyers within a market who share similar needs and demonstrate similar purchasing behaviour. Market segments are described by demographics and psychographics. Demographics - Age group or age bracket: their age, for example 21-25. - Sex: male / female split - for example, 75% of Cosmopolitan readers are women. - Religion or ethnicity: Hispanic, Asian, American, white, black, Muslim, Jewish, etc. - Income: how much money a person earns; how affluent, or rich, they are. - Life cycle: single, married, with children. Psychographics - Education: the highest qualification that a person has, such as a diploma or a degree. - Attitudes and opinions: how a person feels or thinks about issues, people, brands, etc. - Lifestyle: a way of life that reflects a person's values and attitudes. - Market segments may also be divided according to professions, lifestyles or age groups. Demographics and psychographics are used to target a segment by using data to build up a customer profile - the image of a typical consumer. People can be targeted as individuals or as a family group that lives together and makes up a household. Marketers use the ABC socio-economic categories to target groups. Customer loyalty is critical to business success and profitability. Loyal customers buy more, and so improve sales and profit margins. However, customers are becoming increasingly disloyal - they no longer hesitate to switch, or change, retailers and brands. Marketers implement loyalty programmes, such as frequent flyer programmes, to maximize customer loyalty and to minimize customer dissatisfaction. The purpose of a loyalty programme is to allow marketers to identify and retain, or keep, preferred customers and to reward them with discounts and special offers. Most supermarkets and department stores have a retail loyalty programme in the form of a store card or loyalty card. Customers complete an application form with demographic data and receive a plastic card which is used to record information about what the customer buys on their transaction record, and to reward them with points, which can all be used, to get gifts or money off future purchases. Exercise 1 3 3. Answer the questions. 1. What is the key to success for most organizations? 2. What does motivation marketing aim? 3. What are the benefits of motivation marketing? 4. What are staff incentive schemes, also known as incentive programmes? 5. What can boost morale? 6. What are the benefits of staff loyalty? 7. What cash or noncash awards can help motivate staff? 8. What demographic and psychographic factors are used to describe market segments? 9. Why is customer loyalty critical to business success and profitability? 10. What is the purpose of a loyalty programme? 11. How is a retail loyalty programme in the form of a store card or loyalty card used in most supermarkets and department stores? Exercise 134 . Give Ukrainian equivalents. Staff, sales force effectiveness, to boost market penetration, to gain market share, staff incentive scheme, reduced staff absenteeism, not to be at work through sickness, to motivate staff, qualifying period, effective teamwork, to identifyy groups of buyers.
Exercise 135 . Give English equivalents. Гарна продуктивність праці, визнавати та заохочувати роботу персоналу, підняти моральний дух, текучість кадрів, мати зворотній зв’язок, готівкові та безготівкові винагороди, співвідношення чоловіків та жінок, максимізувати прихильність покупців, мінімізувати незадоволеність, кредитна картка магазину, дисконтна картка.
Exercise 136. Complete the sentences using words from the box.
1. Motivation marketing is a good way to … staff loyalty. 2. It can increase motivation levels by … staff efforts. 3. A good incentive scheme means that people want to stay with the company, there is lower staff … 4. Travel is an effective … incentive. 5. People working inside the company, the … staff, benefit from incentive schemes. 6. A good incentive scheme measures staff … to make sure everything is going well.
Exercise 137 . Choose the correct words from the brackets to complete the sentences. 1. Market research shows that a satisfied customer does not automatically become a (loyalty / loyal) customer. 2. All retailers want customers to (repurchase / reward). 3. Loyalty programmes (reward / revisit) preferred customers. 4. Loyalty cards should maximize customer (defection / loyalty). 5. Customers (earn / burn) points when they pay using their credit card. 6. A great number of retailers (identify / implement) loyalty programmes. 7. (Transaction records / Special offers) track what customers buy. 8. To get a loyalty card, customers complete the (application form / demographic data). 9. Customers can (redeem / reward) their points at any of our partner stores. 10 Electronic goods are popular (reward purchases / redemption options). Exercise 138. Complete the descriptions of incentive schemes using words from the box.
1. Incentives are a knowledge-based staff training and incentive (1) … that rewards staff or learning. Every member of staff receives a (2)… card and a (3)… pack. When enough points have been (4) .., staff can exchange their points for gifts. 2. A large employer is concerned when absenteeism climbs above the national average. The company launches an incentive scheme to (5)… behavior changes. All employees who have taken no days off each quarter are entered into a draw to win prizes, including holidays. During the (6)… period staff attendance rose dramatically. 3. The Australian Tourist Commission has launched an incentive scheme to increase sales (7)… effectiveness. Sales staff who sell a luxury holiday can enter to win a new car. Initial reactions suggest that it will really help to energize the team and make them more dynamic. Exercise 139. Learn the following words and word combinations.
Exercise 140. Read, translate and give the gist of text 19. Text 19. Promotion The term 'promotion' is very broad. Promotion involves disseminating information about a product, product line, brand, or company. It is one of the four key aspects of the marketing mix. Promotion is generally subdivided into two parts: - Above the line promotion: Promotion in the media (e.g. TV, radio, newspapers, Internet and Mobile Phones) in which the advertiser pays an advertising agency to place the ad. - Below the line promotion: All other promotion. Much of this is intended to be subtle enough for the consumer to be unaware that promotion is taking place. E.g. sponsorship, product placement, endorsements, sales promotion, merchandising, direct mail, personal selling, public relations, trade shows. There are eight main aspects of a promotional mix. These are: 1) Personal selling (=sales): this is the direct face-to-face communication between salesperson and customer. The sales process has various stages: - Prospecting: identifying a potential customer (= a prospect) who has the ability and authority to buy. - Approach: contacting the prospect and preparing for the sales interview. - Presentation: describing the features of the product, highlighting the advantages over competing products, and giving examples of satisfied customers. - Demonstration: if possible, the customer is given a chance to see the product in use. - Answering objections: customers should be given a chance to express their doubts, as they are unlikely to buy unless these are dealt with. At this stage the salesperson stresses benefits rather than features. - Closing: the salesperson asks the prospect to buy. If the customer still has doubts then options include offering an alternative product, offering a special incentive, or restating the product benefits. - Follow-up: processing the order quickly and efficiently, and reassuring the customer about their purchase decision during further conversation. - Long-term relationship: going on to establish regular contact with the customer. 2) Advertising: the use of different media such as television commercials, advertisements in newspapers and magazines, direct mail, outdoor advertising (billboards, posters on bus-stops), flyers given to people on the street, Internet. 3) Public relations: managing 'publicity' (information that makes people notice a company). The PR function in a company needs to establish good relations with the news media in order to control this information, and PR people issue press releases and hold press conferences. 4) Events: memorable occasions (in-store, on the street, in an unusual location). 5) Sponsorship of sports teams, music groups theatre / opera / ballet etc. 6) Endorsements by celebrities. 7) Trade promotions to retailers, e.g. financial incentives to stock a new product or to give more space/visibility to existing products (e.g. shelf height and aisle position). 8) Other: product placement in films, word-of-mouth (= personal recommendations), viral marketing (online through social networking websites and friends emailing video clips). The term 'guerrilla marketing' covers all unconventional techniques - from viral marketing to the distribution of free products on the beach. Exercise 141. Answer the questions. 1.What is promotion? 2. What two parts is promotion generally subdivided into? 3. What are the main aspects of a promotional mix? Comment on each element.
Exercise 142 . Give Ukrainian equivalents. To disseminate information, product line, key aspects, to place the ad, to be subtle, sponsorship, face-to-face communication, prospect, to have the ability and authority to buy, to establish regular contact, endorsements by celebrities.
Exercise 1 4 3 . Give English equivalents. Реклама за участю „зірок”, зв’язки із громадськістю, комплекс стимулювання збуту, конкуруючий продукт, висловити сумніви, телевізійний рекламний ролик, заново сформулювати переваги продукту, швидка та ефективна обробка замовлень, нетрадиційні технології. Exercise 144 . Complete each explanation with a pair of words from the box. The words may not be in the right order.
1. To refer to a buyer, the word (1) … is more common where there is a standard product, and in shops and restaurants. The word (2) … is more common in the service sector and where there is a degree of personalization. 2. A list of everything that a company sells is called a (3) … If it has lots of colour pictures and looks like a small magazine it is more likely to be called a (4) ... The former may have prices as well, the latter would not. 3. A general word that means 'the process of attracting people's attention to a product' is (5) … One specific example of this is (6) … which refers to text and images and sound in media such as television, newspapers, billboards and the Internet. 4. An advertisement on television, radio or film is called a (7) … An informal word with the same meaning is (8) … 5. (9) …is when a celebrity uses a certain product as a way of promoting it. (10) … is the activity of giving financial support to a sports or cultural event. 6. Both words mean a person who does business on behalf of another company. The word (11) … is used where there is a long-term relationship, whereas the word (12) … is more common for individual transactions ( e.g. stocks). Exercise 145 . Fill in the missing letters. 1. Making sure that the customer gets the right goods at the right time is called 'order fu_ _ _ _ment'. 2. A place where goods are sold to consumers is called a 'retail ou_ _ _ '. 3. A potential customer is a 'pro_ _ect'. 4. A large outdoor sign used for advertising is called a 'bi_ _ _ oard'. 5. It is important to develop long-term relationships with customers so that they make 'rep_ _t pur_ _ _ses', and are open to 'c_ _ ss-selling' of other related products. 6. A synonym for 'intermediary' is 'the mi_ _ _ _man'. 7. A retailer has a shop (AmE store), while a wholesaler has a 'w _ _ _ _ouse'. The process of selling products connected with a popular film, person or event is called 'mer_ _ _ _ _sing'. In American English this word is also used for 'selling goods' in general. Exercise 146 . Match each stage in the sales process with explanation below.
1. ______ - identifying a potential customer. 2. ______- contacting the prospect and preparing for the sales interview. 3. ______ - describing the feature of the product. 4. ______ - giving the customer a chance to sees the product. 5. ______ - asking the prospect to buy. 6. ______ - dealing with any doubts that the customer has. 7. ______- processing the order quickly and maintaining long-term contact.
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