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Marketing, Advertising, Promotion - The centrality of marketing
Production and products - Just-in-time production


Check your knowledge: What is marketing?

creative processdesigndistributionend-users

firsthire /purchaseimage

labelsmail orderneedopportunitiesoutlets




1.       What is marketing? Marketing is the ……of satisfying customer needs……

2.       What is the marketing mix? It consists of the four P’s: providing the customer with the right P…… at the right P……., presented in the most attractive way (P………….) and available in the easiest way (P…….)

3.       What is a product? A product is not just an assembled set of components: it is something customers buy to ………a ……… they feel they have. The ……. and the ………. of the product are as important as its specification.

4.       What is price? The product must be priced so that it competes effectively with ……… products in the same market.

5.       What is promotion? The product is presented to customers through advertising (TV commercials, …….etc.) packaging (design, ……., etc) publicity, P.R and personal selling.

6.       What is place? Your product must be available to customers through the most cost-effective channels of ………. A consumer product must be offered to ……. in suitable retail …….., or available on ………or by……..

7.       What is meant by SWOT? A firm should be aware of its S……..and W……. and the O…….. and T…….. it faces in the market place.

8.       Why are firms becoming more customer-oriented and less………? Because new products must be created to meet the changing……..of customers’ needs – a frim can’t rely on the success of its existing ………. of products. The customer and his or her needs must come.

Marketing is the process of identifying customers’ needs and satisfying those needs with appropriate products. There are several aspects to good marketing. The first is market research: finding out what people want. Secondly the company must provide consumers with suitable products, which means selling existing products, and when necessary, creating new ones through new product development. The company must regularly examine its product range in relation to the actual and potential market. It has to promote the products so customers know about them, and then organise distribution so the products actually reach the customers. Last but not least, it must make sure that profit is generated for shareholders.

Market research is a part of a customer-based approach, which tries to find out what customers want and makes products which match those requirements. A product-based approach tries to persuade customers to buy what the company produces.

The marketing mix is all the things a company does to market its products, including:

a)       product offering, i.e. the product range, the style of product and the abilityto provide new products when needed.

b)      The pricing structure, including bulk discounts.

c)       Promotion, including advertising, introductory offers, loss leaders, packaging, sales promotion, merchandising and public relations.

d)      Distribution

e)       Customer services, especially after sales service and guarantees.

Advertising is the business of informing customers about the existence and qualities of products or services, principally hrough written and visual presentation in the media or on hoardings. The advert is successful if customers buy the advertiser’s product rather than products of competitors. Advertising also aims to encourage brand loyalty in order to increase or maintain market share.

Integrated marketing is an approach to business which sees attracting and retainingcustomers as the most important fucntion. It emphasises that all the activities of a company have marketing implications, from the way the telephone is answered, to the time it takes to make a delivery. All other functions (production, finance and personnel) are therefore subordinate to the marketing function.

Consider these products. Which methods are used to promote them? Which methods would probably not be suitable?

new housesa conference centrecheesean airline

a magazinecomputersbicyclescigarettes

rail travelmedicinespetrola zoo


The name is the game

Interbrand earns up to £5 milion by dreaming up names such as Fruit Jaspers for a new McVitie’s biscuit and Fruit Burst for an orange juice.There were some 350 such naming projects which, according to simple arithmetic, means that Interbrand names average out at £14,000 each. Or, in the case of Fruit Jaspers, at £7,000 a word; £1,116 a letter. That’s a lot of biscuits.

Interbrand’s managing director Michael Birkin explains how Interbrand’s staff of market researchers, linguists, psychologists and trademark lawyersgather to create new names.

To stress the value of a name, he says that if hw were to put an unmarked glass of Coca-Cola among 10 unlabelled rivals he very much doubts whether we’d be able to select the Real Thing. The moral is that we don’t buy the brown fizzy stuff itself but the name and the packaging.That is why the Coca Cola Corporation spends millions of pounds every year attacking anyone who dares to plagiarise its precious identity. „The brand name can be a company’s most precious asset” says Mr.Birkin.

Brand names can also be an international liability. Among banal products with names unfit to mention in a family publication are Super Piss antifreeze from Finland and Krapp toilet rolls from Sweden. In the annals of unintentional scatology are also the Vauxhall Nova – which hasn’t done too well in Spain, where Nova translates as „no go” ; The Rolls-Royce Silver Mist seemed a fine successor to the Silver Shadow and Ghost, but a driver would feel foolish in such a car, because of the significance of the name in colloquial German. That these international misunderstandings can be avoided is an important part of Interbrand’s sales.

The company was founded in the early seventies and now bills itself as the „world’s leading brand specialists”.

Typically the naming of a product takes a couple of months and it combines three approaches: in-house consultants, brainstorming sessions and plundering a computer database. At brainstorming sessions, products are unlocked from a special cupboard and given to„creation groups”. For £15, free alcoholic refreshments and travel expenses, panels of six or seven housewives, young people or other likely representatives of consumer groups shout out suggestions for the name of Brand X. The most imaginative people get asked back more times a year. Suggestions are written on a flip chart and subsequently mulled over by consultants and copywriters. Finally comes the registration. While it takes six months to launcha name, it can take two years to register it.

It may seem bizzare that peopledraw a wage to do this sort of thing but the money at stake is staggering.

1.How important can a brand name be?

2. What is scatology? Give examplex of (other) brand names which may be suitable in one country but unsuitable in another.

3. Explain how a brand name is created. Describe a brainstorming session.


Manufacturers of sports goods often use sports personalities to help sell their products. Sportsmen and women who agree to endorse a company’s range of products usually sign a contract outlining the exact terms of their agreement.

Contracts vary depending on how well-known the personality is and the nature of the endorsement. Typically, a company might expect a personality to:

-          make promotional appearances in person e.g. in-store, at trade fairs or other events

-          wear a company’s product or logo when ‘in action’ in their sport

-          appear in advertising and/or mail-order catalogues

-          personalise products with their signature or photograph.

In return a company may offer:

-          fees in the form of e.g. lump sums, stage payments

-          free products

-          bonuses, e.g. for winning, setting a new record

-          royalties on product sales.

Endorsements can be very profitable, both for the sporting personalities and for the companies which sign them. Take the case of the famous American basketball player, Michael Jordan, one of the most graceful and charismatic players ever to appear on a basketball court. In one year alone, his endorsement of Nike helped sell one and a half million pairs of shoes – and earned him an estimated 20m dollars.

1.Which sports personalities do you associate with different sports manufacturers?

Complete the following sentences with an appropriate word from the list in the correct form:

develop1.Three US companies……….a need for more stylish sports shoes.

dictate2. Sports shoe manufacturers do a lot of market research before they……a new product.

dominate3. The multinationals have lost control of the market – it is the consumerwho………which styles will sell.

identify4. By………..a system of sub-contracting in the Far East, the multinationals have been able to reduce their manufacturing costs.

launch5. It is in the inner cities that new trends are ………..

place6. Because sports shoe manufacturers………then orders so far in advance, they cannot always……….quickly to changes in demand.

set7. Slow-selling shoes wil probably be………..from the market and

replaced by new styles.

respond8. The market for sports shoes is ……… a handful of multinationals.



1. nationwide campaign

a. urmarire

2. gift voucher

b. targ comercial

3. leaflet

c. incercare gratuita

4. PR man

d. sigla

5. to commission a survey

e. pliant

6. outlet

f. campanie la scara nationala

7. canvasser

g. panou publicitar

8. sample

h. ora de maxima audienta

9. on display

i. debuseu

10. trial offer

j. atasat de presa

11. brand leader

k. stand de prezentare

12. target

l. a comanda un studiu

13. brand image

m. bon de cumparaturi

14. follow-up

n. cap de serie

15. display stand


16. logo

p. imagine de marca


q. prospector de piata

18. trade fair

r. tinta

19. peak viewing time

s. mostra


1. Pagina de reclame in culori se adreseaza unui public tanarsi dinamic, caruia ii place sa se amuze.

2. Un ambalaj bine gandit contribuie enorm la succesul unui produs recent lansat

3. Din ce in ce mai multe panouri publicitare de buna calitate apar si la noi.

4. Publicitatea la locul vanzarii este o strategie veche si moderna in acelasi timp.

5. Studiul de piata trebuie sa-l informeze pe producator asupra clientelei susceptibile de a-i cumpara produsul.

6. Pragul de rentabilitate nu trebuie confundat cu rata rentabilitatii

7. Cat de rentabil ar fi pentru dumneavoastradaca vi s-ar deschide piata spaniola si reteaua de distributie a acesteia?

8. Rezultatele sondajului sunt surprinzatoare: se credea camarca e mult mai bine cunoscuta.

9. Vom contracta spatiu publicitar in mai multe reviste si poate chiar o reclama TV difuzata la ore de maxima audienta.



Year ended 27th February, 1999 Łm

Turnover 1,688.7

Operating costs less other income(1,470.4

Interest( 31.1)


Profit on ordinary activities before taxation187.2


Profit on ordinary activities after taxation131.9

Allocation to Share Ownership Scheme(2.9)

Minority interests(2.0)

Preference dividends(0.4)

Profit before extraordinary items126.6

Extraordinary items (after taxation)2.7

Profit earned for ordinary shareholders129.3

Ordinary dividends(44.7)

Retained profit for the year84.6

Earnings per share


Fully diluted28.91


Investment income

Dividends and interest receivable

Staff costs and numbers

Wages and salaries, social security costs, other pension costs


Interest payable and similar charges: debenture stocks and loans repayable.

TaxationCurrent taxation: current taxation on profits for the year. U.K.Corporation tax; Overseas tax.

·         FIND translations for the following:

venituri pe actiunedobanda

profit nedistribuitactiune ordinara

costuri socialesalarii


cont de profituri si pierdericosturi de exploatare

profit inaintea impozitariidividend preferential

cifra de afaceripensie

impozit pe firma



Match up these words with the definitions below

assetsdepreciationliabilitiesturnovercreditors (GB)accounts payable(US) debtors(GB) or accounts receivable (US)overheads revenue (earnings, income)shareholders/stockholdersstock (GB)/inventory(US)

Types of accounting

Match up the terms on the left with the definitions on the right:

1. bookkeeping

A. calculating an individual’s or a company’s liability for tax

2. accounting

B. writing down the details of transactions (debits and credits)

3. managerial accounting

C. keeping financial records, recording income and expenditure, valuing assets and liabilities, and so on

4. cost accounting

D. preparing budgets and other financial reports necessary for management

5. tax accounting

E. inspection and evaluation of accounts by a second set of accountants

6. auditing

F using all available procedures and tricks to disguise the true financial position of a company

7. creative accounting

G. working out the unit cost of products, including materials, labour and all other expenses

·         Now read the figures given and complete the graph:








I’m sure that before we talk about the possibility of a joint venture, you would like to know something about the financial background of our firm over the last few years. From 1982 to 1984, profits rose from £300million at a steady rate of 10% a year to reach £363 million in 1984. This figure was maintained in 1985 but, in the following year, because of the nationwide recession, profits fell sharply to 1982’s figure. Increased production costs and a rise in the price of raw materials gave us some problems between 1987 and 1989, profits inching up very slowly to £340 million in 1987, £354.8 million in 1988 and £360.7 million in 1989. Since then, however, the rise has been substantial - £413.8 million in 1990 to a record figure of £590.6 million in 1991.

·         Read the given figures and complete the table:




Pre-tax profit

Earnings per share

Total dividend

Last year’s figures reflect the healthy state of the company and explain oru desire to launch our product on the European market. In the financial year ended last February, turnover increased by 7.3% to £680.7 million. Pre-tax profit improved by 13.4% from £65.3 million to £74.05 million and earnings per share rose from 19.98p. The Board is recommending a final dividend of 6.9p per share. If this is approved in the annual meeting in July, the total dividend for the year, including the interim dividend of 3.2p per share paid last January, will be 10.1p per share, an increase of 17.9% over last year.

Exercise. MATCHeach term with the appropriate definition:

1.acceleratedA. a document that shows how much a company

depreciationmakes or loses over a given period. It does not

include such features as land, goodwill, etc.

2. balance sheetB. The amount of money a company has availa-

ble to reinvest in its business.

3. breakeven pointC.An intangible asset which includes the value

of a firm’s clientelle, trademark, patents, experi-

ence of its staff.

4. cash flowD.The profits of a company divided by the num-

ber of shares issued. consolidateE.A system of calculating depreciation that

attributes higher amounts to the wear and tear of

an item in the years immediately following its

purchase than it does in subsequent years.

6.earnings per shareF.The value of a share on the Stock Exchange

divided by net profit per share

7.goodwillG.A document showing the value of a company

at a set date expressed in terms of assets and


8.fixed assetsH. A system of calculating depreciation whereby

the price of an item is divided by the number of

years it is expected to last

9.straight line depreciationI. The point at which the firm covers all its ex-

penses and begins to make a profit

10.price-earnings ratioJ.Items that figure on a balance sheet such as

land and machinery, lorries, etc.

11. profit and loss accountK. To present the financial documesns of several

separate legal entities together.


When goods are exchanged for goods, the transaction is called barter. But when some commodity is used both as a medium of exchange and as a measure of value, it is called money.

Money. Coins and notes are almost entirely used in direct payments. However, most financial transactions are not conducted in money but through methods provided by banks or Post Office.

The payments through Post Office can be made by means of stamps, postal orders, money orders, including telegraphic money orders and Giro. The last profides a low-cost current account banking and transfer services.

Payments through Banks. The cheque is a written order to a bank, given and signed by the person having money deposited there, to pay the amount mentioned on the cheque, to the person named on it. The person who writes out the cheque is called the drawer, the one to whom the payment is made is the payee,while the bank on which it is drawn is the drawee.

The bearer cheque needs no endorsement and is paid to anyone presenting it to the bank.

The Bill of Exchange – is an unconditional order in writing addressed byone person to another. It requires the person to whom it is addressed to pay on demand or at a fixed date a sum of money to, or to the order of a specified person, or the bearer. It is used only in special cases such as hire purchase transactions or as a security for a loan. Through it, usually a buyer wants credit extension for his supplier..

The Promisory Note differs from the B/E as it is not an order but a promise to pay. It is an unconditional promise in writing signed by the maker engaged to pay on demand or at a fixed date a certain amount of money to, or to the order of a specified person or to bearer.

The Current Account is the most usual type of account into which a person can pay money and cheques received, and from which he can make payments by drawing cheques. The banks pay no interest on the credit balance of a current account.

The Deposit Account. For larger amounts of money, a customer may open a deposit account.He can only draw on his account by giving a certain number of days’ notice to the bank (usually 7 days) and the bank in turn pays him a small amount of interest. At regular intervals or on demand, the bank gives the customer a statement of account showing the balance of his account.

Loans. A businessman can make arrangements for either an overdraft, if the money is needed for a short period, or a loan. When arrangements are made fro a loan, a loan account is opened. This is debited while the current account is credited with the amount granted by the bank. Before a bank grants an overdraft or a loan, it may ask for security. The borrower may thus transfer tothe bank as security:

·         Bonds

·         Titles of goods

·         A debenture, which is a first charge on a company’s assets

·         Mortgages on land or houses.


1.       Fondul de rulment se calculeaza scazand obligatiile curente din activele curente.

2.       Activele imobilizate sunt formate in principal din terenuri, constructii si utilaje.

3.       Ni s-a spus ca avem dreptul la niste scutiri fiscale considerabile.

4.       Profiturile inaintea impozitarii obtinute de companiile americane au crescut cu 15% in primulsemestru al anului 1989.

5.       Costurile de exploatare din acest an sunt in crestere fata de anul 1990.

6.       Angajatilor li s-a oferit posibilitatea de a investi in propria lor companie.

7.       Filiala franceza a inregistrat o crestere a venitului net de 132%fata de 1989, iar profitul inaintea impozitarii s-a triplat.

8.       Firma constata o crestere cu 12% a cifrei de afaceri la sfarsitul lunii iunie

9.       Profitul pe anul 1991 a fost raportat si va fi impozitat in urmatorulan financiar.

10.   Contributia la asigurarile sociale se calculeaza asupra totalului brut al salariilor.

11.   In activul bilantului, contul stocurilor se imparte in trei grupe: materii prime, semifabricate si produse finite.

12.   Fondul de rulment nu va mai fi de ajuns pentru a acoperi cheltuielile generale.

13.   De cat timp este descoperit contul dumneavoastra?

14.   In Anglia conturile curente purtatoare de dobada exista doar din 1990.

15.   Banca va va acorda un imprumut doar daca aveti un loc de munca stabil.

16.   Mai mult de30% din personal lucreaza cu jumatate de norma.

17.   Am verificat bilantul si contul de rezultate fara sa gasesc nici cea mai mica eroare. As dori sa verific din nou cifrele activului imobilizat.


A substantial riseto level off

A steady fallto soar/ro rocket

to topto plummet/nosedive

Match the description with their Romanian equivalents:

1.Preturile s-au redresat spre sfarsitul anului.

A. An all time high was reached in 1990

2.Preturile au atins un nivel constant la sfarsitul anului

B. Prices held steady between 1988 and 1990

3. In 1989 s-a inregistrat o usoara crestere a vanzarilor

C. Sales topped the 2 million mark at the end of the year

4.Preturile au crescut vertiginos spre sfarsitul anului.

D. Prices picked up towards the end of the year

5. Vanzarile s-au prabusit spre sfarsitul anului.

E. Prices rose steadily between 1988 and 1990

6. In 1990 am asistat la o cadere spectaculoasa a vanzarilor

F. Sales plummetted towards the end of the year

7.In 1990 a fost atins un record absolut

G. Prices levelled off at the end of the year

8. Preturile au ramas neschimbate intre 1988 si 1990

H. 1989 saw a slight rise in sales

9. Preturile au inregistrat o crestere continua intre 1988 si 1990

I. 1990 witnessed a dramatic fall in sales

10. Vanzarile au depasit nivelul de doua milioane la sfarsitul anului.

J. Prices rocketed at the end.

DRAW graphs according to the following descriptions:

1.       Stock market prices fell slightly in the first quarter of the year before levelling off at what was widely believed to be an unrealistically high rate. However, rising US interest rates forced prices down again, somewhat more sharply, with a slight upturn appearing only at the end of the quarter.

2.       An upswing at the beginning of the year sent stock market prices rocketing to an all-time high before plummetting again following the poor midterm results. Prices then levelled off before declining steadily throughout the third quarter. Fortunately the fall in interest rates inOctober encouraged more stock market activity and prices have been rising sharply ever since.

3.       Stock market prices fell sharply in the first quarter of the year after the intense activity of last year. However, with the upsurge in aggressive take-overs in the third quarter, prices soared before entering another period of steady decline.

4.       The early downturn in stock market prices following last year’s record activity continued steadily throughout the first two quarters, reaching a low towards the end of June. Prices then picked up sharply to reach a peak in mid-November.

·         Write a description of one of the graphs below:



Match the following definitions with the terms:

1. bull2.gilts3. closing price4.par5.redemption date6.equity7.preferential form8.yield9.P/E


The current share price divided by the last published earnings (expressed as pence per share). It is used as a measure of whether a share should be considered “expensive” – thus a share selling at 50p with a P/E ratio of 10 would be dearer than one selling at 100p with a P/E ratio of 5.


The price of shares at 5.00:pm.

C. The nominal value of a security (always taken as Ł100 in fixed interest stocks) A company must set a PAR value on its Ordinary Shares. In some countries shares can have no par value (abbreviated NPV)


The annual return on your money based on the current price of the security, on the assumption that the next dividend paid will be the same as the last one.


Security whose interest and capital are guaranteed by the UK Government. Long gilts, of Longs: those without aredemption date within 15 years. Medium Gilts, or Medium: those with a redemption date between 5 and 15 years ahead.


One who has bought a security in the hope of selling it at a higher price. Bull Market: One in which bulls would prosper, that is, a rising market.


The risk-sharing part of a company’s capital. The term Equities is often used instead of Ordinary Shares.

H. The Stock Exchange allows companies offering shares to the public to set aside up to 10% of the issue for applications from employees. Special differently coloured application forms, usually pink (hence the nickname pink forms, are used for this.


The date on shich a security is due to be redeemed by the issuer at its full face value. The year is included in the title of the security; the actual redemption date is that on which the last interest payment is due.

2. Choose the most suitable word for each space:

Someone once described the age we live in as that of a vanishing world, one in which the familiar is constantly disappearing for ever and technological change is often difficult to (1). with. So it should come as no surprise to most of us to hear that yet another part of every day life is (2). to go for ever. Still, when I read recently that within the next decade money as we (3).. it will probably cease to exist in technologically advanced countries, I had to read the article twice to make sure it wasn’t April 1st. (4). to Professor Gerry Montague of the Institute for Economic Reform, the familiar (5)..and banknotes will soon be replaced entirely by credit cards of various kinds. And the shop of the future (’the retail outlet’ as Prof.Montague puts it) will be (6) directly to the network of banking computers. The assistant will simply key in your bank account code number and the (7) you have spent, and thank you politely. You won’t have to dig deep in your (8) for change or pretend at the pub that you have left your money at home. You may not even have a number for your (9). as such, as the computer may by then be able to read your handprint. So no more credit card frauds (10). But I am afraid that I shall (11). money. I have felt strongly attached to it, ever since I received my first pocket money when I was five, and kept it in a money-box.Even if my credit card of the future will be able to tell me exactly how much (12) power I have left in the computer files, even if it lights up and plays a happy (or sad) tune at the same time, nothing will be able to replace the sheer pleasure I gained from(13). the coins in my money-box. Not to (14).. the other obvious problems which will be caused by (15).. of real money – like how to start a football match, for example!

1)A keepB. ManageC.copeD.survive














15) absenceD.a replacement

3. In each sentence choose one or more appropriate words:



·         John became rich by playing the stock.

·         We have decided to turn our business into a limited.

·         This government believes firmly in the value of free.

·         I am interested in buying the property, but I find the .. too high.

·         I am saving money to make the down.. on a new car.

·         We put in an insurance.. after our house was damaged in a storm.

·         Everyone was impressed with the sales.. for the new product.

·         Margaret lost a lot of money in an unwise business

·         I keep most of my money in a savings.

·         Our company receives a lot of payments in foreign

5. Match the following:

a) We have to haggle

1) We spend a lot

b) We have a nice little nest-egg

2) We don’t waste money

c) We have high expenditure

3) We let people borrow from us

d)We get in free

4) We earn according to what we sell

e) We are in debt

5) We argue about the price

f) We are very thrifty

6) We earn alot

g)We are paid on commission

7) We don’t have to pay

h)We want a rise

8)We need higher wages

i) We lend money

9)We owe money

j) We have a high income

10) We have some savings.

6. Choose the most suitable word or phrase:

a)       I inherited £10,000 in my uncle’s ..


b)      The price is always lower than the retail price.


c)       I still have three more.. to pay on my motorbike

a) sharesb)donationsc)instalmentsd)contributions

d)      We had to give the customs officials a not to inspect our suitcase

a) feeb)rewardc)bonusd)bribe

e)       After my business failed, I was declared.. by the court.


f)        As soon as you buy a car, it starts falling in


g)      A multinational company has made a/an . to take over our firm.


h)       We demanded pay rises to take account of the . of inflation.


i)         Things are going well. In fact, business is..


j)         I.. you don’t make as much profit this year!


7. Replace the words underlined by one of the words given:



challenged the figuresfinancial meanson easy terms

make a wise investmentcome into a fortunefree of charge

commercially viablein crediton expenseson the market

1.       We’vedecided to put our house up for sale.

2.       Jean has inherited a lot of money.

3.       At the meeting Peter said he thought the amounts were wrong.

4.       No one believes that the shop will ever be a business success.

5.       I am the possessor of a healthy balance at the bank.

6.       Sue and Jane went to America with everything paid for by their company

7.       We don’t believe you have the money to take over this company

8.       All employees can stay at the hotel without paying.

9.       We bought our new electric cooker by instalments.

10.   Harry became rich after he managed to put his money in the right place.

9. In each sentence, replace one or more words with one of the words given, so that the sentence has an opposite meaning:

appreciatehard upprosperousrisewasteful


a.       The precious stones our company mines are now known to be priceless.

b.      Nigel cannot get used to being an unsuccessful businessman

c.       The company has decided to sell the premises in East Road

d.      I like living in this part of town. Of course, it’s very cheap.

e.       Jim inherited £20,000 and managed to save it all.

f.        We were poor when I was young and my father was very thrifty.

g.      At he moment house values tend to go down in this area.

h.       The workers were given a cut in wages when the takeover was announced

i.         Nobody thought that the company would lose a lot of money.

j.         Richard’s family is incredibly well-off.

Politica de confidentialitate



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