I. Before reading the text learn the following the words.

Мы поможем в написании ваших работ!

Мы поможем в написании ваших работ!

Мы поможем в написании ваших работ!


I. Before reading the text learn the following the words.



I. Before reading the text learn the following the words.

effective to speak slоwly and clearly to use simple language   to look for confirmation ask for way of using language   to mean to put over   politeness a tendency to avoid small talk unfriendly to be keen on   эффективный говорить медленно и ясно использовать простой язык   искать подтверждения просить способ использования языка   иметь в виду объяснить, довести до сведения   вежливость тенденция избегать ч-л светский разговор недружелюбно увлекаться



Many people are not very confident about using the telephone in English. However, good preparation can make telephoning much easier and more effective. Then, once the call begins, speak slowly and clearly and use simple language.

Check that you understand what has been said. Repeat the most important information, look for confirmation. Ask for repetition if you think it is necessary.

Remember too that different cultures have different ways of using language. Some speak in a very literal way so it is always quite clear what they mean. Others are more indirect, using hints, suggestions and understatement (for example 'not very good results' = 'absolutely disastrous') to put over their message. North America, Scandinavia, Germany and France are 'explicit' countries, while the British have a reputation for not making clear exactly what they mean. One reason for this seems to be that the British use language in a more abstract way than most Americans and continental Europeans. In Britain there are also conventions of politeness and a tendency to avoid showing one's true feelings. For example if a Dutchman says an idea is 'interesting he means that it is interesting. If an Englishman says that an idea is 'interesting' you have to deduce from the way he says it whether he means it is a good idea or a bad idea.

Meanwhile, for similar reasons Japanese, Russians and Arabs - 'subtle' countries -sometimes seem vague and devious to the British. If they say an idea is interesting it may be out of politeness.

The opposite of this is that plain speakers can seem rude and dominating to subtle speakers, as Americans can sound to the British - or the British to the Japanese. The British have a tendency to engage in small talk at the beginning and end of a telephone conversation. Questions about the weather, health, business in general and what one has been doing recently are all part of telephoning, laying a foundation for the true purpose of the call. At the end of the call there may well be various pleasantries: Nice talking to you, Say hello to the family (if you have met them) and Looking forward to seeing you again soon. A sharp, brief style of talking on the phone may appear unfriendly to a British partner. Not all nationalities are as keen on small talk as the British!

Being aware of these differences can help in understanding people with different cultural traditions. The difficulty on the telephone is that you cannot see the body language to help you.

II. Answer the following questions.

1) What important things should you know before telephoning?

2) Give advice on how to use your voice and to check your understanding.

3) What does the term ‘explicit cultures’ mean? What about ‘subtle cultures’?

4) What is a small talk?

5) Which countries are considered to be ‘explicit cultures’ and ‘subtle cultures’?

6) Is it always important to be face - to - face? Can there be any difficulties on the telephone because of this?

III.Sort out the most important information from the text and retell it.




1. How often do you meet your friends? In what way do you usually greet them?

2. Have you ever made a business call? What words did you use to begin the talk?

3. Have you ever dialed from abroad? Do you know the rules of making telephone calls?

I. Meeting people



1. You say "How do you do" to a person when formally introduced or when you meet him for the first time. This formula may be used almost anytime of day. You say this without expecting any answer but "How do you do," and do not offer to shake hands. “Pleased to meet you” or “Glad to meet you” is also a possible variant when you meet a person for the first time.

2. You say "Good morning" to people you know little or when your greeting is more formal. This formula is used before lunch. To those you know well you may say simply "Morning".

3. You say "Good afternoon" to people you do not know well between lunch time and tea-time.

4. You say "Good evening" to people you do not know very well after 6 p.m. To those you know well you may just say "Evening".

5. The proper universal informal greeting is "Hello". This formula is usually used with the first name. You can say “Hi!” to your close friends.

After an informal or a friendly greeting often comes the question: "How are you?" The answer is: “I’m all right, thank you” or “I’m fine, thanks”.


The usual phrase to use when you leave is "Good bye," but there are a number of other less formal ways of parting, such as:


Cheerio! (Br.)

See you later!

See you tomorrow!

(I'll) be seeing you (soon).

So long.

Farewell. (When parting for long.)

Say "Good night" only when you leave and it is after eight o'clock at night.

Thanks and possible answers

Thank you very much. Thank you. Thanks.   My pleasure. Anytime. You are welcome. Don’t mention it. It’s nothing. Not at all


First words

Often the first words are the most difficult. Bellow are some suggestions for “breaking the ice” (either could be said by a visitor or by the person receiving the visitor)

Would you like a cup of coffee? Sorry to keep you waiting. I was rather tied up just now. Is it your first visit? What do you think of the city? Isn’t it cold today? You found us without too much difficulty, I hope? Did you have a good trip? Have you been to New York before?   Sorry I’m a little early. I hope it is not inconvenient. I’m pleased to be here, after a trip like that. I like your office. People are very helpful here. On my way to meet you….  

Ending the small talk

If this small talk continues too long, you may want to change the subject to business matters. Here are some ways of doing it.

With someone you know well:

Let’s get down to business.

Let’s get started.

With someone you don’t know well:

Perhaps we could talk about the subject of our meeting.

Shall we talk about the reason I’m here.

II. Phoning your contacts


I. Making a call.

A few common expressions are enough for most telephone conversations. Practise these telephone expressions by completing the following dialogue using the words listed below.

Switchboard: Continental Equipment. Can I help you?

You: Could I_________ __________ Mr. Wilson, please?

Switchboard: Putting you __________

Secretary: Hello, Mr. Wilson’s secretary. __________ I help you?

You: __________, can you hear me? It’s a __________ line. Could you __________ up, please?

Secretary: IS THAT BETTER? Who’s __________, please?

You: (your name) from (your company)

Secretary: Oh, hello. How nice to hear from you again. We haven’t seen you for ages. How are you?

You: Fine, thanks. Could you__________ me___________ to Mr. Wilson, please?

Secretary: __________the line a moment. I’ll see if he’s in. I’m so sorry, I’m afraid he isn’t in the__________ at the__________. Could you give me your __________, and I’ll ask him to__________you__________?

You: I’m__________ 495 3840. That’s London.

Secretary: Would you like to leave any__________ for him?

You: No, thanks. Just tell him I__________.

Secretary: Certainly. Nice to hear from you again.

You: I’ll expect him to__________me this afternoon, then. Thanks.


Secretary: You’re welcome. Goodbye. on number office rang speak to call back hello   speak hold message ring speaking moment   bad secretary can through put through through  


Note:If you do not hear or understand the other person, say: I’m sorry? or I’m sorry, I don’t understand, could you repeat that, please? It is not polite to say: Please repeat?


III. The telephone

The phone book.

Look up their number in the phone book (or directory)

The number is unlisted.

I’ll ring Directory Enquiries for the number. (UK)

I’ll call information. (US)

The line.

He’s on the other line.

Would you like to hold the line?

The line is engaged. (UK)

The line is busy. (US)

The receiver.

Can I help you?

Putting you through.

I’m afraid he is not available at the moment.

You’re welcome.


A message pad.

Can I tell him who called?

Can I give her a message?

Could I take her number?

The dial.

Dial 123 for the correct time.

Listen for the dialling tone.

All line you have dialled are engaged. Please try later.






Every year a magazine called Executive Travel organizes a competition to find the Airline of the Year. Travellers from all over the world are invited to vote for the most efficient, the most punctual, the safest and the friendliest airline. The winner in 1985 was British Airways. The competition asked travellers what for them was most important from an airline, and the results were as follows:

Punctual departures and arrivals Attentive cabin staff Comfort Safety Good food and wine 35 % 35 % 18 % 9 % 3 %

The competition also invited travellers to tell their most horrific stories of the nightmare side to international travel. Replies included six hijacks, fifty-three cases of engine failure or trouble with the landing gear, eleven lightning strikes, twenty-three bomb scares, thirteen cases of food poisoning and two collisions with airport trucks.

Bad flying experiences begin on the ground, naturally. One American airline managed to double-book an entire 747, but this is nothing compared to what happened on an internal flight on a certain African airline. The flight had been overbooked three times. The local military sorted the problem out by insisting that all passengers with boarding cards should run round the plane twice, the fastest getting the seats. An overbooked flight that was going from Heathrow to America gave one traveller a bit of a shock. Dressed only in trousers, shirt and socks, he had been allowed by the stewardess to leave the aircraft to see if he could get a colleague aboard. He returned a few minutes later to find the 747 closed up and about to start moving — with his shoes, wallet, passport and luggage inside. Banging frantically on the door got him back inside. A similar event was seen by a businessman on a flight from Bangladesh. Passengers were waiting for take-off when there was sudden hysterical hammering on the door. At first the cabin crew paid no attention. The hammering continued. When the door was finally opened, the pilot got in.

One frequent flier lost a certain amount of confidence when the cabin staff asked him to sit in the lavatory during take-off, so that they could occupy the seats nearest the emergency exit. Another lost faith in the pilot's navigational skills when passengers were given lifeboat drill on a flight between London and Vanchester.

For nervous fliers, a journey to be avoided was one between Gatwick and Montpellier, where the in-flight entertainment consisted of watching pieces of the engine falling off. Another passenger was asked to hold the aircraft door closed at take-off and landing.

Baggage is a rich source of horror stories. There was the unlucky traveller who left Chicago in minus-23 weather. He was going to an important meeting in Dallas, where the temperature was 80-plus. Unfortunately his suitcase had gone to LA, where it spent the next two days. The customers he was trying to impress were more than a little surprised to see him going round in a thick suit, heavy overcoat and fur hat.



1. How often do you travel by air, rail, underground, road and sea?

2. What do you enjoy about travelling? What don’t you enjoy?

3. What is the best/worst travel you have ever had?


II. On the plane.


I. If you want something or want to stop someone, say: Excuse me, . . To ask for something, say: May I . . . ? (very polite) Could I . . . ? (polite). Ask for the things on the plane using the picture.



III. At the airport.



Starting out as places that would guard your money, banks became the main source of credit creation. Increasingly, however, borrowers are turning to the financial markets and to non-savings institutions, such as credit-card companies and consumer-finance firms, when they need a loan. This is reducing the profitability of traditional bank lending and has led many banks to enter new areas of business, such as selling insurance policies and mutual funds.

What the most efficient split between bank lending and other sorts of lending is debatable. Economists argue endlessly about whether an economy such as the United States, in which firms rely more heavily on debt markets than on banks to fund their investment, is better than one such as, say, Germany, in which banks have traditionally been the main source of corporate finance.

Banks come in many different forms. Commercial banks, also known as retail banks, cater directly for the general public and lend to mostly small and medium-sized firms. In the past, they did so largely through a network of bank branches, although increasingly these are giving way to ATM machines, the telephone and the Internet. Wholesale banks largely transact with other banks and financial institutions. Investment banks, also known as merchant banks, concentrate on raising money for companies from private. Universal banks do most or all of the above including, through bank assurance, selling insurance. These banks have long been a feature of continental European economies. However, in the United States financial laws such as the Glass-Steagall Act have separated different forms of banking from each other and kept banks out of the insurance business. These laws were abolished in 1999, although during the preceding couple of decades regulators effectively dismantled them by changing the way they were applied. Even so, because of these and other laws, which for many years stopped banks from operating across state borders, the United States has far more lending institutions than other countries. In 2003 there were over four lending institutions per 100,000 people in the United States, compared with less than one per 100,000 in the UK and France.



I. Arranging a meeting

Look at this telephone call from the sales representative to a potential new customer. Try to guess the words missing from the conversation. If you cannot guess, select the missing word from the list that follows the dialogue.

Jackson: Gray: Jackson: Gray: Jackson: Gray: Jackson: Gray: Jackson: Gray: Jackson: Hello, Jackson is speaking. Good morning, Mr Jackson, this is Mike Gray from Multiscan Industries . Er, yes, what can I____________for you? Well, as you probably know, we are____________a new____________of high-performance microprocessors. I am going to be visiting your__________ next week and I wondered if you would be__________in discussing these new____________and perhaps having a____________? M-m-m, yes, I would certainly be interested . .. Good, would Wednesday morning be____________? Ah, Wednesday is a bit____________; I'm tied up all day. How about Thursday? Thursday would be fine. Can you let me have an hour or so ___________ in the afternoon? Yes, I think that would be possible. Say, four o'clock? Excellent, well, I'll look__________ to seeing you on Thursday then. Goodbye. Goodbye.  


convenient models interested do office   introducing sometime difficult demonstration range forward  

III. Negotiations


I'msure/confident we can reach agreement. (optimistic)

I'm sure there's room for negotiation.

We have a lot to discuss.

Let's see how we get on. (cautious)

Presenting your position

This is our position.

This is how we see it.

We think the following is reasonable/appropriate.

Our approach is this.

Refusing to accept

I'm sorry, I can't accept 2%.

You'll have to do better than that, I'm afraid.

I'm afraid it's not enough.

Other firms offer more than 2°/o.

Refusing to move

I'm afraid I can't agree to that.

increase the rate.

lower the price.

shorten delivery.

We've done our best for you.

We have to maintain a policy.

I have my instructions.


Suggesting a compromise

May I make a suggestion?

If you . . . then we may be able to ...

We may be able to ... but only if you . . .

Unless you ... there is no question of our being able to . . .

Reaching agreement

Let's just go through the terms.

Let's summarize the conditions.


Mostly a’s

You are not making much of an effort, are you? If you don’t at least try to negotiate, you’ll get nowhere – the people you are dealing with aren’t going to give anything away if they don’t have to.

Mostly b’s

You are not aggressive and you don’t make ridiculous demands, so you can consider yourself an extremely good negotiator. Remember always to be flexible and to keep an eye open for every possible opportunity.

Mostly c’s.

Do you like being punched on the nose? You had better calm down and start being realistic now or you might as well give up. You’ll only succeed if you’re extremely lucky or in the unlikely event that people you deal with are easily intimidated.

IV. Deals

I. The words below show some of the most common uses of the word deal.

a fair deal (= an equitable agreement)

to deal with (= to handle enquiries or take action to solve problems)

to deal a blow to (=to damage)

to deal in (= to do business, usually by buying and selling)

it's a deal (= I agree.)

a raw deal (= unfair treatment)

a good deal (= good value for the price paid)

to make a deal, to do a deal (= to come to an agreement)

a great deal (formal expression)

it's no big deal (= It's not important)






Organizing structure is considered by many to be “the anatomy of the organization”, providing a foundation within which the organization functions”.

There can be different kinds of organization structure, and firms can change their organization structure by becoming more or less centralized.

Most organization have a hierarchical or pyramidal structure, with one person or a group of people at the top, and increasing number of people below them at each successive level. All the people in the organization know what decision they are able to make, who their superior (or boss) is (to whom they report), and who their immediate subordinates are (to whom they can give instructions). This structure is one of the simplest and it’s also called a line structure.

Yet the activities of most companies are too complicated to be organized in a single hierarchy. Shortly before the First World War, the French industrialist Henry Fayol organized his coal-mining business according to the functions that it had to carry out. He is generally credited with inventing functional organization, including (among others) production, finance, marketing, sales, and personnel or staff departments. The functional type of organization structure reflects an arrangement based on the nature of the activities that must be performed. Related activities are grouped together in the functional areas with which they are most clearly identified. The chief executive of each area occupies a position on the second level of the organization and generally has the title Vice-President. This means, for example, that the production and marketing departments cannot take financial decisions without consulting the finance department. The functional structure is efficient, but there are two standard criticisms. Firstly, people are usually more concerned with the success of their department than that of the company, so there are permanent battles between, for example, finance and marketing, or marketing and production, which have incompatible goals. Secondly, separating functions is unlikely to encourage innovation.

A problem of hierarchies is that people at lower level are unable to make important decision, but have to pass on responsibility to their boss. One solution to this is matrix management, in which people report to more than one superior. For example, a product manager with an idea might be able to deal directly with managers responsible for a certain market segment and for a geographical region, as well as managers responsible for the traditional functions of finance, sales and production.



Board of directors




Managing Director



Senior management



Middle management

At the top of the company hierarchy is the Board of Directors, headed by the Chairperson or President. The Board is responsible for policy decisions and strategy. It will usually appoint a Managing Director or Chief Executive, who has overall responsibility for the running of the business. Senior managers or company officers head the various departments or functions within the company, which may include the following.

a. Marketing

b. Public relations

c. Information Technology or IT

d. Personnel or Human Resources

e. Finance

f. Production

g. Research and Development or R and D


Below the text.

My name’s Bernard Levesque and I’m the Technical and Quality Manager at MTS in Paris and I work within the MTD the Materials Testing Division, which makes equipment used by industrial firms to test the strength and durability of materials like plastic, metals and so forth. We’re a subsidiary of MTS Systems Corporation, an American firm based in Minneapolis. MTS employs roughly 2,200 people worldwide and is a leading supplier of mechanical testing and simulation equipment. Our major development and manufacturing operations are located in the US, France and Germany, and we have sales and service offices around the world.

Before I describe the organisation of my department, I’ll outline the structure from the top, starting with Werner Ongyert, our CEO, who oversees all aspects of our activities here. Just below him is the General Manager, Jucques Mardelet, who is my immediate superior. Then there’s Sylviane Villaret, the Human Resources Director, and Genevieve Cornetti, the GM’s Secretary, who also report directly to him. We have a management team that includes myself, Dominique Faurieux, the Sales Manager, Jean-Fracois Reinauld, the Finance Manager, and of course, Jacques Mardelet, who is also the marketing manager There are also two new departments – Customer Service and NVD, the Noise and Vibration Division – headed by Luise Regnier and Patrick Dhammee respectively.

Now, getting back to the way my department is organised, I’m responsible for operations, so I’m in charge of Purchasing and Planning, R&D and Quality. The purchasing and planning Department schedules production based on orders provided by the sales team and forecasts from the Marketing Department. In R&D, there are three sub-departments – Mechanical-Engineering, Electronics and Software-Engineering – which are involved in developing new products and modifying existing products to meet customer demands. They receive technical specification from the Marketing Department and provide drawings and assembly instructions. Nathalie Launay works closely with me on Quality – an area that takes up nearly a third of my time. And finally there’s the need of Shipping, as well as the person in charge of Assembly, who also report to me.

Mechanical Engineering

VI. Circle the word that does not belong in each horizontal group.

1. firm 2. salary 3. finance 4. ship 5. plant company manager product assemble facility society engineer planning customer patent subsidiary employee marketing purchase factory  


Identified above.

a. manufacturing sites ______________

b. stages in the manufacturing process_______________

c. people who work in a company ________________

d. types of business organization ________________

e. different departments in a company ______________








Marketing is the term given to all the different activities intended to make and attract a profitable demand for a product. The practice of marketing is almost as old as humanity itself. A market was originally simply a gathering place where people with a supply of items or capacity to perform a service could meet with those who might desire the items or services. Such meetings embodied many aspects of today's marketing methods, although sometimes in an informal way. Sellers and buyers sought to understand each other's needs, capacities, and psychology, all with the goal of getting the exchange of items or services to take place.

The rise of agriculture undoubtedly influenced markets as the earliest means of 'mass production' of an item, namely foodstuffs. As agriculture allowed one to grow more food than could be eaten by the grower alone, there was likely motivation to seek out others who could use the excess food, before it spoiled, in exchange for other items.

Two major factors of marketing are the recruitment of new customers and the expansion of relationships with existing customers.

Marketing methods are informed by many of the social sciences, particularly psychology, sociology, and economics. Anthropology is also a small, but growing, influence. Market research underpins these activities. Through advertising, it is also related to many of the creative arts.

For a marketing plan to be successful, the mix of the four "Ps" must reflect the wants and desires of the consumers in the target market. Marketers depend on marketing research, both formal and informal, to determine what consumers want and what they are willing to pay for it. Marketers hope that this process will give them a competitive advantage.

The four Ps are:

  • Product: Identifying consumer needs and wants in order to develop the product. The Product management and Product marketing aspects of marketing deal with the specifications of the actual good or service, and how it relates to the end-user's needs and wants.
  • Pricing: This refers to the process of setting a price for a product, including discounts. The price need not be monetary - it can simply be what is exchanged for the product or service, e.g. time, or attention.
  • Promotion: This includes advertising, sales promotion, publicity, and personal selling, and refers to the various methods of promoting the product, brand, or company.
  • Placement or distribution refers to how the product gets to the customer; for example, point of sale placement or retailing. This fourth P has also sometimes been called Place, referring to the channel by which a product or service is sold, which geographic region or industry, to which segment (young adults, families, business people), etc.

These four elements are often referred to as the marketing mix. A marketer can use these variables to make a marketing plan. The four Ps model is most useful when marketing low-value consumer products. Industrial products, services, high-value consumer products require adjustments to this model. Services marketing must account for the unique nature of services. Industrial marketing must account for the long term contractual agreements that are typical in supply chain transactions.

A relatively new form of marketing uses the Internet and is called internet marketing or more generally e-marketing. It typically tries to perfect the segmentation strategy used in traditional marketing. It targets its audience more precisely, and is sometimes called personalized marketing or one-to-one marketing.




I. The marketing director has made a marketing strategy for the company’s latest product; he is presenting the strategy to the area sales managers and sales representatives. Read the sentences below and try to guess the meaning of the underlined words.

a) Before the product launch, market research and test marketing are carried out.

b) The marketing department is also responsible for pricing policy.

c) The advertising agency is responsible for the advertising campaign.

d) There are two main types of advertising; above-the-line, or media advertising and below-the-line or non-media advertising.

e) Non-media advertising includes promotions, public relations and special offers.

f) The sales department is responsible for sending the sales force to contact customers, consumers and end-users.

g) Wholesalers sell to retailers, who sell direct to the public.

h) The place where the customer buys the product is called an outlet or a point of sale.

i) The sales department is responsible for selling and for after-sales service.

II. Mr. Lopez is going to give a presentation of a new product to his colleagues. He has drawn up a rough plan of the presentation. The plan shows the sequence of his talk and some of the phrases he intends to use.


Good morning, Ladies and Gentlemen.



We haven’t all met before. So I’d better introduce myself, I’m_________



I hope you’ll excuse my English. I’m a little out of practice.



I’m going to be talking about_________



I’ll start with________and_________



Then move on to__________



Finally, I’m going to_________


I think, if you don’t mind we’ll leave questions to the end.






This brings me to my next point________



I must emphasize________



At this point we must consider________



Now, to digress for a moment_________



To go back to my earlier point________






Before closing I’d like to summarize the main points again.



That’s all I have to say for the moment_______



Thank you for listening.



Now if there are any questions, I’ll be happy to answer them.






Advertising is any paid form of nonpersonal presentation and promotion of products, services, or ideas' by an identifiable individual or organization. It flourishes mainly in free-market, profit-oriented countries. It is one of the most important factors in accelerating the distribution of products and helping to raise the standard of living. Advertising cannot turn a poor product or service into a good one. But what it can do — and does — is to create awareness about both old and new products and services. So there are three main objectives of advertising:

(1) to produce knowledge about the product or service;

(2) to create preference for it;

(3) to stimulate thought and action about it.

Many firms advertise their goods or services, but are they wasting economic resources? Some economists reckon that advertising merely manipulates consumer tastes and creates desires that would not otherwise exist. By increasing product differentiation and encouraging brand loyalty advertising may make consumers less price sensitive, moving the market further from perfect competition towards imperfect competition and increasing the ability of firms to charge more than marginal cost. Heavy spending on advertising may also create a barrier to entry, as a firm entering the market would have to spend a lot on advertising too.

However, some economists argue that advertising is economically valuable because it increases the flow of information in the economy and reduces the asymmetric information between the seller and the consumer. This intensifies competition, as consumers can be made aware quickly when there is a better deal on offer.

Product advertising is an important part of the marketing mix. Its aim is to increase sales by making a product or service known to a wider audience, and by emphasizing its positive qualities. A company can advertise in a variety of ways, depending on how much it wishes to spend and the size and type of audience it wishes to target. The different media for advertising include television, radio, newspapers, magazines, the Internet and direct mail. The design and organization of advertising campaigns is usually the job of an advertising agency.

Corporate advertising is not directly concerned with increasing sales of a particular product or service, but more with the brand image, or picture, a company wants to present to the public. Public relations (PR) experts specialize in organizing activities and events which generate positive publicity for companies. Unusual advertising campaigns sometimes get extra publicity for the company by way of media reports about the campaign.


By Stephan Armstrong

1 Is Volkswagen bold or stupid? Across France, workmen have been busy scraping off 10,000 billboard advertisements for its new Golf following furious complaints from the Catholic Church. In a series of posters, the German carmaker's model was likened to a religious revelation; one that showed Jesus at the last supper recommending the car to his disciples.

2 VW’s agency DDB Needham doubtless thought its advertising was ironic and extremely up-to-date. After all, the admen presumably figured, if outrageous* advertising worked for the likes of Benetton, it could work to revive the image of the Golf, which is frankly rather old-fashioned.

3 After the Catholic Church threatened to sue* for Ffr 3.3 m ($550,000) to obtain reparation for the damage suffered by Christians, the agency and the carmaker confessed to their sins and agreed to remove the ads. We have no disrespect for the fundamental values of society or for the beliefs of the faithful,” said a spokesperson for DDB Needham. 'We decided to retract the posters immediately in order to show our respect for the faith and the feelings expressed by certain believers.' The agency's penance* has included making a substantial donation to a Catholic charity.

4 European consumers are exposed to hundreds of commercial messages a day, but the vast majority of these are ignored, so ads which shock have become more popular with advertisers. It is believed that these ads force consumers to listen to their message. But some adland thinkers argue that it's a little more complicated than that.

5 Virginia Valentine, director of advertising's foremost cultural analysis company.Semiotic Solutions, argues that brands can no longer expect consumers to take sales messages at face value*. Consumers challenge everything they are told, she believes, and will prefer brands that give them something back, rather than the old-style 'here's our product ain't it great!' philosophy which has dominated advertising since its inception. Thus ads can deal with social issues and refer to the news agenda these days. Inevitably, though, it can go horribly wrong. The risk is, and I think this is true in the case of Volkswagen, that if you use images of faith and prostitute them, people will take offence. It's all very well if you give them something back, but it is clear that Jesus could not have benefited from that poster campaign.'

6 The ad agency, however, may well have done. The VW campaign might look like a marketing disaster, but increasingly ad agencies are selling to clients not simply their ability to write ads but their ability to write ads that generate PR. Some clients ask all agencies pitching for their business to demonstrate their ability to garner* extra publicity.

7 A deliberately shocking ad is the simplest way to get additional media coverage, and even if the media coverage is negative, it can still help to sell the product as advertisers like Benetton have already proved.

8 One supporter of Benetton's work is Leon Jaume, Deputy Creative Director of ad agency Ogilvy & Mather, who believes its success lies in knowing its target. 'In marketing terms the only real taboo is upsetting the people you want to buy your product,’ he says. 'As long as it's legal and the client is OK with it, you can offend anyone else and in many ways you should. I'd normally see outrageous advertising as a youth proposition though, and I think VW's mistake may have been in selling a. product that isn't a youth product with this kind of style. Young people are receptive to taboo-breaking as they are more open-minded than older people. I think they positively welcome advertising that annoys their parents.' Some agency creatives argue that young people today are fundamentally different from previous generations in their internationalism, and young consumers in Tel Aviv are closer to their counterparts* in Paris, New York and Sydney than they are to their parents.

9 As this generation grows up, the argument goes; they will continue to be more broad-minded than their parents and will see the shattering of taboos as the norm. So outrageous advertising will no longer be limited to those products which target youth.

10 Perhaps Volkswagen was just ahead of its time, advertising to a marker that wasn't broad-minded enough in a country that still gets nervous when Church and State are challenged. Or perhaps VW's collision with Catholics shows that for all their claimed acumen*, ad agencies are less in touch* with the public mood than they claim.

The European

*outrageous: very shocking

*to sue: to claim money because you have been harmed

*penance: suffering to show you are sorry

*to take smth. at face value: to accept smth. without thinking

*to garner: to collect

*a counterpart: a similar person in a different place

*acumen: the ability to make good judgments

*to be in touch with: to understand



1. What is your favorite advertisement? Why do you like it?

2. What kind of advertisement do you like?

3. Which of the following statements do you agree with?

1. People remember advertisements not products.

2. Advertising raises prices.

3. Advertising has a bad influence on children

4. Newspapers and TV are two advertising media. Can you think of others?


Focus Advertising


Focus, a large advertising agency based in Paris, has a reputation for creating imaginative and effective campaigns. Recently however, Focus's reputation was damaged when two major clients changed to rival agencies. Focus now needs to convince potential clients that it still has plenty of creative ideas to offer.

At present, Focus is competing against some well-known agencies for several contracts. It has been asked to present ideas for advertising campaigns to the managements of the companies concerned. Concepts are required for the following advertising campaigns:

A sports car A high-priced, hand-finished model with a classic design. The car was popular in the 1950s and 60s. An American firm now wants to re-launch it. (Target consumers will be high-income executives with a sense of fun and style.) Aim: An international campaign, with advertising adapted to local markets.

A perfume A unisex perfume, with bio-degradable packaging. Produced by a well-known up-market manufacturer. The company now wishes to enter the lower end of the market.

Aim: Launch the perfume in an English- speaking country.

• A chain of eight London restaurants The restaurants (specialising in your national cuisine) are in prime positions and offer extensive menus. They are reasonably priced, but are not attracting enough customers.

Aim: A creative campaign to improve sales.

• A major bank The bank (in an English- speaking country) wants to advertise the following new services:

1 Competitive low-interest mortgages

2 Direct telephone banking

3 A foreign travel service

It has also asked your agency to suggest others.

Aim: Develop loyalty among existing customers and attract new ones.


You are members of an advertising team at Focus. Prepare an advertising campaign for one of the products or services. Use the Key questions below to help you. Then present your campaign to the management of the company concerned. (At this stage, you have not been asked to prepare a budget.) When you are not presenting your campaign, play the role of the company's management. Listen and ask questions. Use the Assessment sheet below to choose:

a) the best campaign concept

b) the most effective presentation.



What is the campaign's key message?

What special features does the product or service have?

What are its USPs (Unique Selling Points)?

Who is your target audience?

What media will you use? Several, or just one or two?

If you use:

an advertisement - write the text and do rough art work.

a TV commercial - use a story board to illustrate your idea.

a radio spot - write the script, including sound effects and music.

other media - indicate what pictures, text, slogans, etc. will be used.

What special promotions will you use at the start of the campaign?



Give a score of 1-5 for each category: 5 = outstanding 1 = poor


Campaign concept Presentation  
1 Will it get the target audience's attention? 2 Will it capture their imagination? 3 Does it have a clear, effective message? 4 Will it differentiate the product or service? 5 Will it persuade the target audience to buy the product or service? 6 Will the target audience remember the campaign? TOTAL: 30 1 Was it interesting? Did it impress you? 2 Was it clear? 3 Was there enough eye contact? 4 Was the pace too quick, too slow, or just right? 5 Was the language fluent, accurate and appropriate? 6 Was the voice clear enough? Was it varied in pitch or monotonous? TOTAL: 30  


As leader of one of Focus's advertising teams, prepare a summary of your concept for your Managing Director. The summary will be used as a discussion document at a forthcoming board meeting.






1. Do you spend more than you earn?

2. What do you most enjoy spending money on?

3. What do you least enjoy spending money on?

4. What do you think is good value for money?

5. What do you think is a waste of money?

6. What can you afford that you most appreciate?

7. What can’t you afford that you would most like to have?

Part I



Part II


The South Sea Bubble is the name given to a speculation in 1720, and associated with the South Sea Company in London. People bought shares in the 5 company expecting to make a huge profit, but the boom in shares collapsed and many investors lost all their money.

The South Sea Company was founded in 1711 to trade with Spanish America. The in company’s stock offered a guaranteed interest of 6% and it sold well. Unfortunately, however, Spain allowed the company to send only one ship a year to trade in the area.

The first voyage in 1717 was a success. Then 15 King George I became governor of the company in antiques and paintings a new business venture 1719. This created confidence in the business, and soon it was paying 100% interest.

In 1720, there was a boom in the South Sea Company's shares because it agreed to take over the 20 country's national debt. It expected to get back its money by increased trade and a rise in the value of its shares.

The shares did, in fact, rise dramatically. The stock of the company, which had been around £128 by September the market, had collapsed, and the price fell back to £124. Eventually, with the support of the Government, the shares levelled off at around £140.

The South Sea Bubble had burst and it led to 30 an economic depression in the country.



The first modern stock market appeared in Amsterdam at the beginning of the 17th century. In Holland in the 1630s, there was one of the first and most extraordinary speculative explosions in history. It was not in stocks and shares, in real estate or in fine painting as you might expect, but in tulip bulbs. It has become known by the name Tulipomania.

People from all classes invested in the bulbs. Many sold their property so that they could pay for the bulbs they had bought in the tulip market. Foreigners joined in the rush to buy the flowers and money poured into Holland from other countries.

In 1637, the boom in the market ended. No one knows why, but people began to sell. Others followed suit. Soon there was a panic among investors and the tulip market collapsed. Many people who had offered their property as security for credit went bankrupt. People who had agreed to 15 buy tulips at inflated prices were unable to pay their debts. When sellers took legal action to recover their money, the courts were not helpful because they saw such investment as a kind of gambling.

It is not surprising that the collapse in prices led to a severe 20 economic recessions in Holland.



The stock market crash in the United States in 1929 was huge and it led to a severe and lasting economic crisis in the world. Many bankers and industrialists lost their money and reputations. Some went to prison and others committed suicide.

Share prices on the New York stock exchange had begun rising in 1924, and in 1928 and 1929 they rocketed to unbelievable levels. In spring 1929 there was a break in the rising prices when the Federal Reserve Bank said it might raise interest rates to slow down the boom. However, a major bank, the National City Bank, assured investors that it would continue to lend money to them at affordable rates.

Soon the market took off again. People could buy stock for 10% of its value and borrow the remaining 90%. The lending rate varied from 7% to 12%. Almost everyone was optimistic. One economist, at the peak of the boom, said that people generally agreed 'stocks are not at present overvalued'.

It all ended on 21 October, 1929. The market opened badly and there was heavy selling. 25 Confidence in the market disappeared. There was a rumour that the big bankers were getting out of the market. Share prices fell dramatically and kept on falling. The boom was over. But its consequences would last for years to come.

Part III



Angel Investments plc (AI) is based in Warsaw, Poland. It provides finance for start-up or young companies which need capital to develop their businesses. AI is run by a group of extremely rich people of various nationalities who made their fortunes in the computer and financial services industries. They enjoy the excitement of working with start-ups and small companies, and believe that Central and Eastern Europe offers outstanding opportunities for investment. They are willing to take risks and back projects which seem unusual or extraordinary. However they also expect to make money, usually by taking a stake in the business or a share of the profits.

A team of AI investors is currently considering several proposals. After hearing presentations from individuals and companies, AI will decide which projects it will invest in, and how much money it will give to each one. They have £5.5 million to invest in the projects.



You are either:

an AI investor; or

an entrepreneur who needs finance for a new project.


Briefing notes:

AI Investors

Before the meeting

1 Study the proposals that the entrepreneurs have chosen and discuss which appeal to you most. Consider which are the most risky and which have the greatest potential profits.

2 Prepare questions which you wish to ask each person/company

1 Listen to the presentation of each person/company. Ask questions to help you decide which projects to invest in.

2 Discuss the projects. Decide which to invest in, and how much money you will give to each.

Remember: You have a maximum limit of £5.5 million to invest, but can invest less.


Before the meeting

Choose one of the proposals or present your own idea for a product or service.

1 Prepare a presentation of your product/service. Use the Key Points as a guide for structuring the presentation.

2 Your aim will be to persuade AI to give you the money you need. Try to predict what questions they will ask you.

During the meeting

1 Give your presentation and answer the AI team’s questions.

2 While waiting to hear AI’s decision concerning your request for finance, discuss these questions:

a) Was your presentation effective?

b) Do you think you will be successful?

c) How well did you answer their questions?

d) What problems did you have, if any?


The Business

A description of the business -What does it do? Who is it for?

Brief details about the team (age, education, experience, etc.).


The Product or Service

A brief description - including artwork, if possible.

What are the advantages of the product or service? What need does it fill?

What are its unique features?


Who are the existing or target customers?

Who are the competitors or possible future competitors?

What are the competing products, if any?

What about pricing policy?

How will the product or service be launched and promoted?

What are the selling and distribution methods?


How much finance is required and for what purposes?



New magazine

You need to finance the first edition and launch of a new magazine. Amount required: £2.5 million, to finance production, editorial, office administration, distribution costs and promotion.


Flotation tank centres

At these centres, stressed business people can float in tanks and forget about their problems. Other services will include advice about diet and skin care, a solarium, and sunbeds, etc. Amount required: £2 million, to finance premises, equipment, staff and promotion.


High-tech products

Your company is developing two products. The PX15 prevents people from using mobile phones in enclosed spaces, for example in restaurants or trains. Sweep-Safe is a device for clearing mines. It can also find other objects buried underground. Amou

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