Lesson 3: political and technological environment

Reading:

As life is becoming more and more complex, in terms of products and technologies, public concern about its safety increases. The 1960s witnessed the emergence of a great number of public-interest groups trying to protect natural resources, water, earth, and air damaged by industrial and business activities. Societal Marketing Concept insists that of all forces of marketing environment the political factors (state legislation, government agencies, and pressure groups that limit industrial and business activities) must have priority over all other. Legislation affecting business has been enacted for three reasons. First, it protects companies from each other. While most businesses praise competition in general, they try to neutralize it when it affects them. In the United States it is the job of the Federal Trade Commission and the Antitrust Division of the Justice Department to define and prevent unfair competition. Cases often emerge in which one company lodges a complaint that another is guilty of deceptive advertising and pricing which may injure its business. Second, government legislation and regulation also aim at protecting consumers from unfair business practices. If unregulated, firms might make unsafe or low-quality products, be untruthful in their advertising, or deceive through packaging and pricing. Various government units define unfair practices and offer remedies. Businesses, of course, can minimize government intervention through active self-regulation. Such associations as the American Hotel and Lodging Association and the National Restaurant Association

define and encourage good trade practices. These associations have developed

guidelines for truth in menu presentation, alcoholic drink service, and sanitation.

Third, government regulation also aims to protect society's interests against unrestrained business behavior. Profitable business activity does not always improve the quality of life. Thus regulations are passed to discourage smoking, littering, polluting, and the like, all in the name of protecting society's interests. Regulation aims to make firms responsible for the social as well as private costs of their production and distribution activities.

 

 

Exercises:

1. Find in the text the following topical words and phrases, make sure hat you are able to explain in English what they mean, and add hem to your working vocabulary:

public-interest groups, pressure groups, unfair competition, deceptive advertising, to deceive through packages, unrestrained business behavior.

 

2. Write out of the text the parts of sentences which contain the following words and phrases and translate them into Russian:

the Antitrust Division, to lodge a complaint, to offer a remedy, government intervention, to define trade practices, guidelines, sanitation, polluting.

 

3. Answer the following questions using the topical words and expressions:

1. What are the pressure groups trying to protect?

2. What does Societal Marketing Concept insist on?

3. What is the first reason for Government business regulating legislation?

4. How can unfair competition practices be prevented?

5. What sort of unfair business practices can happen in hospitality industries?

6. How does government legislation protect consumers from unfair business companies?

7. How can business companies minimize government intervention?

8. How does government legislation protect society's interests from both consumers and business companies?

9. Why is it necessary for managers to know the government legislation affecting business?

 

LESSON 4: REVIEW EXERCISES

Exercises:

1. Using the given Recall Pattern, explain the meanings and interrelations of the key notions which are arranged in it:

Natural Technological Environment

2. Discuss the following concepts and notions:

marketing environment, micro- and macro environments, the environmental analysis, spending patterns, consumerism, the demographic situation, public-interest groups, a leisure package, a spending splurge, recession, time-saving products, unrestrained business behavior, a birthrate, deceptive advertising, business meals, unfair competition.

 

3. Give your definitions of the following topical words and phrases:

suppliers, intermediaries, a competitor, public, seniors, household income, a dual-income family, a shipment, an airline fare, a media firm, real income, interest rate, continuous education, college tuition, adult-only pastime, day-care services, takeout food, a room opener, seamless connectivity, a smart card, a conventional procedure.

 

4. Choose a topic for Project Work from those given below:

1. What environmental trends will affect the life of Moscow restaurants at the beginning of the new century? If you were the manager of a small restaurant, what plans would you make to deal with these trends? Arrange a talk show on this issue.

2. How have environmental trends affected the design of hotels throughout the 20^th century?

3. If we have little control over the macro environment, why should we bother about it? Arrange a talk show on this issue.

UNIT 7.

MARKETING INFORMATION SYSTEMS