Ex. 17. Make up word combinations.

 

cultural	process
inevitable	impressions
ethnic	style
cross-cultural	environment
color	market
living	marketing
promotional	groups
different	connotations
targeted	task
primary	message

 

 

Ex. 18. Give English equivalents to the following words and phrases.

 

культурная среда ___________________________________________________________

неизбежный процесс ________________________________________________________

культурные различия ________________________________________________________

различия стираются _________________________________________________________

мир становится более однородным _____________________________________________

основной фактор успеха ______________________________________________________

социальные нормы и ценности ________________________________________________

образ жизни ________________________________________________________________

принимать во внимание различия в языке, значениях цветов и традициях ____________________________________________________________________________

создавать различное впечатление _______________________________________________

торговый агент ______________________________________________________________

модели поведения ____________________________________________________________

первоочередная задача ________________________________________________________

 

 

Ex. 19. Fill in the gaps with the words from the box.

 

subliminal	globalization	adjust	impressions	vary
sacred	targeted	unique	cultural environment	dialects

 

1. _________________ is an inevitable process in the 21st century.

2. The _______________ includes institutions and other forces that affect the basic values,

behaviors, and preferences of the society.

3. Because cultures can ______________ greatly from nation to nation, international marketers

must ______________ their marketing plans to each culture.

4. There are thousands of languages and _______________ in the world.

5. Color is a large, though often _________________ part of marketing effort.

6. Every nation has some ________________ behavior patterns.

7. McDonald’s and other hamburger restaurants would not have a chance in India, where the cow

is considered ________________.

8. Colors in advertisements, on packages, and the product itself may communicate different

___________________ to different cultures.

9. The primary task for marketers is to continuously adjust their behaviors and marketing

programs to fit into the ___________________ markets.

 

COMPREHENSION

 

Ex. 20. Complete the sentences according to the text.

 

1. To be aware of the cultural differences is...

2. Cross-cultural marketing is defined as...

3. Culture is the total of...

4. Because cultures can vary greatly from nation to nation,...

5. Language becomes a problem...

6. Colors in advertisements, on packages, and the product itself may communicate...

7. Blue is considered a warm color in Holland and...

8. Purple is associated with death in Brazil and...

9. Yellow flowers are a sign of infidelity in France, but...

10. A door-to-door salesman would find selling in Italy impossible, because...

11. The primary task for marketers is...

 

Ex. 21. Say if the sentences are true or false. Correct the false ones.

 

1. The basic values, behaviors and preferences of the society have an effect on consumer

marketing decisions.

2. The world is becoming less homogenous.

3. Differences among nations, regions and ethnic groups in terms of demographic factors become

more obvious.

4. To be aware ofthe cultural differences is a major factor for the success in the 21st century

marketplace.

5. Cross-cultural marketing is defined as the strategic process of marketing among consumers

whose culture is similar to that of the marketer's own culture.

6. Because cultures cannot vary from nation to nation, international marketers needn’t adjust

their marketing plans to each culture.

7. There are thousands of languages and dialects in the world.

8. Even in countries that use the same language as the international marketer communication

problems can exist.

9. Colors in advertisements, on packages, and the product itself may communicate similar

impressions to different cultures.

10. Every nation has some unique behavior patterns.

 

Ex. 22. Put questions to the words and word combinations in italics.

 

1. The cultural environment includes institutions and other forces that affect the basic values,

behaviors, and preferences of the society.

2. Globalization is an inevitable process in the 21st century.

3. To be aware of the cultural differences is a major factor for the success in the 21st century

marketplace.

4. Because cultures can vary greatly from nation to nation, international marketers must adjust

their marketing plans to each culture.

5. Marketers, especially in promotional messages, must understand and properly use the

language of the host country.

6. In India there are 203 dialects.

7. Colors in advertisements, on packages, and the product itself may communicate different

impressions to different cultures.

8. For example, a door-to-door salesman would find selling in Italy impossible, because it is

improper for a man to call on a woman if she is at home alone.

9. Maxwell House advertised itself as the “Great American Coffee” in West Germany.

10. The primary task for marketers is to continuously adjust their behaviors and marketing

programs to fit into the targeted markets.

 

 

DISCUSSION

 

 

1. Is it important for a firm to be international?

2. What factors can cause cultural misunderstanding?

3. What should manager know in order to avoid mistakes in international business?

4. What other examples of cultural differences can you provide?

5. What are the mores in your country?

6. What is the role of cultural factors in domestic marketing? Give your examples.

 

 

SUPPLEMENTARY READING

 

International differences

DISCUSSION

 

1. Is it important for a firm to be international?

2. What factors can cause cultural misunderstanding?

3. What should manager know in order to avoid mistakes in international business?

 

Here are some other areas of potential cultural misunderstanding:

 

a. distance when talking to people: what is comfortable?

b. eye contact: how much of the time do people look directly at each other?

c. gesture: do people make lots of facial gestures? How much do they move their arms and hands?

d. greetings /goodbyes: do people shake hands every time? Are there fixed phrases to say?

e. humour: is this a good way of relaxing people? Or is it out of place in some contexts?

f. physical contact: how much do people touch each other?

g. presents: when should you give them? When should you open them? What should you say when you receive one?

h. rules of conversation and the role of silence: how long can people be silent before they feel uncomfortable? Is it acceptable to interrupt when others are speaking?

 

 

COMPREHENSION

Ex. 8. Which points above are referred to in this story?

 

Sally, a student, is working for a company abroad for work experience. The company has employees from all over the world. The head of the company, Henrik, invites Sally to a barbecue for hisemployees at his home, at 3 pm on Saturday.

She is the first to arrive, at exactly 3 o'clock. When the others arrive, some shake hands with each other. Some kiss on one cheek, others on both cheeks. Others arrive and say hello without kissing or shaking hands. (1___) Some bring wine or flowers, which the host does not open and puts to one side. Others bring nothing. (2___)

In conversations, some people move their arms around a lot and seem to make signs with their hands, others keep their hands by their sides. (3___) Some people do not let others finish what they are saying, and others say almost nothing; the people with them seem upset and move away when they can. (4___) Some people look directly at the person they are talking to. Others look away more. (5___) Some touch the arm of the other person whenever they are speaking to them. (6___) She notices that some people seem to be slowly moving backwards across the garden as the conversation goes on, while the person with them is moving forward. (7___)

Later, somebody makes a joke but nobody laughs. Everyone goes quiet. (8___). People start saying goodbye and leaving.

 

 

Text 4

BUSINESS TRAVEL ABROAD

 

Business Executives who hope to profit from their travel abroad should learn about the history, culture, and customs of the countries they wish to visit. Business manners and methods, religious customs, humor, and acceptable dress vary widely from country to country. It is recommended that business travelers prepare for country visits by reading travel guides, which are located in the travel sections of most libraries and bookstores.

Some of the cultural distinctions include differences in business styles, attitudes toward punctuality, negotiating styles, gift-giving customs, greetings, significance of gestures, meanings of colors and numbers, and customs regarding titles. For example, consider the following:

· The number 7 is considered bad luck in Kenya and good luck in Czech Republic. The number 10 is bad luck in Korea, and 4 means death in Japan.

· In Bulgaria a nod means “no”, and shaking the head from side to side means “yes”.

· Red color is popular in China and Korea, but is not popular in Africa. Purple is associated with death in Brazil and in many Spanish-speaking countries. Yellow flowers are a sign of infidelity in France, but one of death in Mexico.

Any firm must pay close attention to different styles of doing business in different countries.

Attitudes to punctuality vary greatly from one culture to another and, if misunderstood, can cause confusion. Romanians, Japanese, and Germans are very punctual, whereas people in many of the Latin countries are more relaxed toward time. The Japanese consider it rude to be late for a business meeting, but acceptable, even fashionable, to be late for a social meeting.

Sometimes something as simple as greetings can be misunderstood. Traditional greeting may be a handshake, a hug, a nose rub, a kiss, placing the hands in praying position, or various other gestures.

Proper use of names and titles is often a source of confusion in international business relations. First names are seldom used when doing business in Germany. In France and Belgium it is important to address business people as “Monsieur” or “Madame”, while in English-speaking countries they should be addressed as “Mr.” or “Mrs.”

It is also important to understand customs concerning gift giving. In some countries gifts are expected, whereas in other countries offering a gift is considered offensive. Gift giving is an important part of doing business in Japan, but gifts are rarely exchanged in Germany. It is not a normal custom in Belgium or the United Kingdom either, although in both countries flowers are a suitable gift when invited in someone’s home.

Customs concerning the exchange of business cards also vary. Although this point seems of minor importance, card giving is a key part of business protocol. In Japan, for example, the Western practice of accepting a business card and pocketing in immediately is considered rude. You should carefully look at the card after accepting it, observe the title and organization, acknowledge with a nod that the information has been digested, and perhaps make a comment or ask a polite question.

As illustrated in the examples, it is very important to have knowledge of the business culture, business methods, and consumer habits before traveling abroad. This is very likely to have a positive impact on overseas travel.

 

 

_____________________________________________________________________________

FINAL QUESTIONNAIRE

_____________________________________________________________________________

 

1. What is international marketing?

2. Is international marketing a revolutionary shift?

3. What has fostered an increase in trade between nations?

4. What is the main reason for companies to do international marketing?

5. Why do many companies have little chance for growth in the domestic market?

6. Why may the economic environment in the home country be undesirable?

7. How can barriers to trade be avoided?

8. What may happen if sales are falling in one country?

9. Do businesses benefit from becoming multinational?

10. What will increase output of goods and services?

11. What jobs are usually created in the countries receiving the multinationals?

12. What may force local firms out of business?

13. Where are profits made by the multinationals sent to?

14. What do multinational businesses have a lot of influence on?

15. What do multinationals ask the government for to keep them operating in the country?

16. Why do companies do international marketing?

 

17. What do companies that want to be successful in foreign markets have to be aware of?

18. What step needs to be taken prior to beginning international marketing?

19.Is globalization an inevitable process?

20. What is a major factor for the success in the 21^st century marketplace?

21. What is culture?

22. What differences in culture must marketers consider?

23. Give examples of differences in languages.

24. Give examples when colors may communicate different impressions to different

cultures.

25. How traditions and customs differ in some countries?

26. Why would McDonald’s and other hamburger restaurants have no chance in India?

27. Why should marketers study the nation’s behavior patterns?

 

28. What do means of entry to the international market depend on?

29. What are the host countries interested in?

30. What is exporting?

31. What is indirect exporting?

32. What is direct exporting?

33. What are the advantages and disadvantages of direct exporting?

34. What is a joint venture?

35. What are the advantages a joint venture?

36. What does direct ownership mean?

 

UNIT 5 COMPETITION

 

Text 1

TYPES OF COMPETITION

VOCABULARY

 

competition -конкуренция

acceptance – одобрение, признание

loyalty –доверие, преданность

perfect (pure) competition – совершенная (чистая) конкуренция

monopolistic competition – монополистическая конкуренция

monopoly – монополия

oligopoly – олигополия

participant – участник

perceived – воспринимаемый

perception – восприятие, ощущение

product differentiation – дифференциация (индивидуализация) продукции (физические

или иные различия между товарами различных фирм)

to avoid – избегать, остерегаться

to be willing – быть готовым (сделать что-л.)

utility company – коммунальное предприятие

to approve – одобрять, утверждать

 

Competition is the battle between businesses to win consumer acceptance and loyalty. Competition can generally be classified into four main categories: perfect competition, monopolistic competition, monopoly and oligopoly.

Perfect competition (also known as pure competition) exists when there is a large number of sellers producing identical products or services (grains, milk, steel, oil, gas, coil, etc.) and a large number of buyers. Participants have no control over the selling price of their product because neither a seller nor a buyer is large enough to dictate the market price of the product. Instead, the price of the product is set by the market. There are many competitors in a perfect competition industry, and it is fairly easy to enter or leave the industry. While there are no ideal examples of perfect competition, agricultural products, stock market and foreign exchange market are considered to be the closest example in today's economy.

Monopolistic (imperfect) competition exists when a large number of sellers produce a quite similar (non-identical) product or service that is perceived by consumers as being different from that of a competitor. This perception of difference is the result of product differentiation, which is the key to success in a monopolistic industry. Products can be differentiated based on price, quality, image, advertising or some other feature, depending on the product. Each participant in this market structure has some control over pricing, which means it can change the selling price as long as consumers are still willing to buy its product at the new price. If one product costs twice as much as similar products on the market, chances are that most consumers will avoid buying the more expensive product and buy the competitors' products instead. There can be few or many competitors (typically many) in a monopolistic industry. The entry into the market is fairly easy because you need a relatively small start-up capital. Monopolistic products are typically found in retailing businesses. Some examples of monopolistic products are shampoo products, washing powder, toothpaste, automobile service centers, and fast-food restaurants.

A monopoly (от греч. monos – один, poleo – продаю) exists when a single seller controls the supply of a good or service and prevents other businesses from entering the field. Being the only supplier of a certain good or service the seller has complete control over price and all output. A monopolist can fix its own price as there are no other competitors on the market. Complete control of all output is not necessary to exercise monopoly power. Any combination of firms, which control at least 80 per cent of an industry’s production, can dictate the prices of the remaining 20 per cent. Yet monopoly situation, in which one firm completely controls a broad product-market, are rare in market-directed economies. Governments usually regulate monopolies. Examples of monopolies are utility companies that provide services such as gas-, water-, electricity supply as well as telephone and cabel TV companies. In most parts of the world prices set by utility companies must be approved by a government agency.

An oligopoly (греч. oligos – немногий, poleo – продаю) exists when there are few sellers in a certain industry. This occurs because a large investment is required to enter the industry, which makes it difficult to enter or leave. The businesses involved in an oligopoly type of industry are typically very large because they have the financial ability to make the needed investment. The type of products sold in an oligopoly can be similar (steel, spirit, sugar, etc) or different (automobiles of different models, washing machines, cigarettes, drinks, etc), and each seller has some control over price and level of production.

 

 

TYPES OF MARKET STRUCTURES

 

Type of a market structure	Amount and a size of a company	Type of product	Entering the market	Price control	Spreading (распростра- нение)
Perfect competition	a large number of small firms	identical	easy entry	no control	non-spread
Monopolistic competition	a large number of firms (of different size)	differentiated	fairly easy	insignificant	wide-spread
Monopoly	one (usually a very big company)	unique	impossible to enter	significant	very rare
Oligopoly	several large companies	similar or different	some barriers are possible	there is but not big	wide-spread

 

 

WORD STUDY