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China? Discuss which emerging countries in Asia may repeat Japan’s economic Experience. Make a list of what you consider to be advantages and disadvantages for Investors to pour their money into the country. 4. Explain the following terms found in the case study: Japan Inc; keiretsu. State the reasons that lead to a financial bubble. Is too much regulation bad or good for business and what do you think is or Should be the role of government. VOCABULARY REVISION – UNIT 3 Замедление темпов экономического роста; цены резко упали; цены слегка выросли; крах; крушение; цены снизились ненамного; устойчивый экономический рост; экономический спад; подъем; цикл деловой активности; экономический бум; спрос; цены взлетели; вызывать дeпрессию; экономический кризис; умеренное оживление (после спада); низшая точка (экономического) цикла; стагнация; ожидаемая инфляция; безработица; длительная инфляция; с поправкой на инфляцию; торговый баланс; положительное сальдо торгового баланса; дефицит баланса по текущим операциям; дефицит платежного баланса; структурная безработица; валовый внутренний продукт; платежный баланс; валовый национальный продукт; видимые статьи торгового баланса; жесткая кредитно-денежная политика; установление границ изменения денежной массы; бюджетно-налоговая политика ФРС; денежная масса; рост денежной массы; основные экономические показатели.
Part 1 Unit 4 PRODUCTS, MARKETING, ADVERTISING
UNIT 4 PRODUCTS, MARKETINg, advertising
SECTION 1 SELLERS, BUYERS, CONSUMERS, AND KEY PLAYERS LEAD-IN Traditionally, marketing has been a term applied to the process or act of bringing together buyers and sellers. Despite the common misconception, marketing is more than advertising and promotion. In the past, companies were product focused, and employed a team of salespersons to push their products into or onto the market, regardless of market desire. A market focused, or customer focused, organization first determines what its potential customers desire, and then builds the product. The essence of marketing is the realization that customers use a product or service because they have a need, or because of perceived value, not because they want to spend their hard earned money. Companies quick to respond to the needs of a market are market-driven, market-led, or market-oriented. These terms show approval, especially when used by organizations about themselves. People and organizations who market a product make decisions as to how, when, and to whom it is to be sold: for example on its design, price, and distribution. People and organizations making these decisions are marketers or marketeers and work in marketing. A firm may depend on their own sales team and/or on the salesmanship of their distributors, wholesalers or retailers. A retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells individual items or small quantities to the general public or end user customers, usually in a shop, also called store. Retailers are at the end of the supply chain. Marketers see retailing as part of their overall distribution strategy. A wholesaler buys and stores goods in large quantities from their manufacturers or importers, and then sells smaller quantities to retailers, who in turn sell to the general public. An agent who supplies goods to retailers is distributor. The channel of distribution is the route that a product takes in reaching its end users. Outlets must be created which enable the product and the customer to be physically brought together, and which enable the customer to buy.
There are a number of ways to talk about people who buy things. An individual who buys products or services for personal use and not for manufacture or resale is a consumer. Customers are individuals or organizations who buy things from shops or other organizations. Clients are individuals or organizations who pay for services provided by a professional person or organization such as lawyer or advertising agency. A business may refer to its customers as its customer base or client base. Competitors are organizations selling products or services in the same market, and they can also be products or services themselves. Competitors compete with each other. An advantage enjoyed by a company with lower costs than a rival, enabling it to sell for less or make greater profits at the same price as its rival is competitive advantage or competitive edge. Competitors in a market are players, and the most important ones are key players. Companies without competitors are monopolies.
VOCABULARY
COMPREHENSION QUESTIONS: 1) What is the essence of marketing? 2) What was the concept of marketing in the past? 3) What is the difference between a product-focused and a market-oriented company? 4) What decisions must companies and people make if they want to market a product? 5) Why is it so important for a company to have competitive advantages over others? 6) What is the role of an outlet? 7) What do we call the companies which are the most important in the market?
VOCABULARY PRACTICE Many market-led growth businesses, such as Microsoft and Sony, are in several markets at once. The customer is king. There is increased emphasis on the importance of the customer and meeting the customer’s needs. Analysts suggest that while Digital has a strong customer base for mini-computers, many of these users went to other companies when shopping for personal computers. As manufacturers, distributors, resellers and retailers suffer, it is good news for consumers. There has never been a better time to buy a personal computer. Like most businesses, British Airways would rather be rid of its competitors. Fisons has suffered a setback in its ambitions to become a key player in the pharmaceuticals industry. American TV is a market-driven industry, and the audience decides the direction it takes. Competition describes the activity of trying to sell more and be more successful. When competition is strong, you can say that it is intense, stiff, fierce or tough. If not, it may be described as low-key.
TEXTS TO TRANSLATE: 41. From Market Driven to Market Driving Firms are constantly exhorted to become more market driven. However, our study of 25 pioneering companies (e.g. Body Shop, IKEA, Tetra Pak) whose success has been based on radical business innovation indicates that such companies are better described as market driving. Market driving companies, who are generally new entrants into an industry, gain a more sustainable competitive advantage by delivering a leap in customer value through a unique business system. Market driving strategies entail high risk, but also offer a firm the potential to revolutionise an industry and reap vast rewards. The value of being market driven is unquestioned in companies today. Current practice dictates that success starts with careful market research, investigating the customers' needs, and developing differentiated products or services for a well-defined segment. Various excellent companies such as Nestle, Procter & Gamble, and Unilever effectively employ this market driven approach. However, many successful pioneering companies, who have created new markets and revolutionised existing industries through radical business innovation like Amazon.com, Body Shop, CNN, IKEA, Starbucks, and Swatch, are better described as market driving. Market driving can be distinguished from three other orientations that a company can have towards the marketplace: sales driven, market driven, and customer driven. These four categories represent ideal types, no large organisation adopts a single orientation throughout all of its business units. A sales-driven orientation characterises those firms who view marketing as a tool to sell whatever their factory produces. Marketing and selling are interchangeable in such companies. Public utilities, monopolies and some large manufacturing firms often display a sales orientation. Market driven companies instead place the customers at the start of the process and through careful market research build appropriate products for, and develop the desired image for their target segments. Most successful consumer packaged goods companies such as L'Oreal fall in this category. Customer driven companies, on the other hand, target 'segments of one' and deliver customised value configurations to each customer. This is sometimes referred to as relationship marketing. The Swiss private banking industry, which serves high net worth individuals, is populated with several such customer driven firms. Consumers and organisation buyers are excellent at motivating and evaluating incremental innovation. However, customers are usually unable to conceptualise or readily visualise the benefits of revolutionary products, concepts, and technologies. Consider the experience of Swatch. The Swatch models that received the highest intention to purchase in consumer research were those that looked the most like traditional watches. Those watches, however, ultimately generated very few sales. Instead, the more radically different Swatch models, which were rated in traditional pre-launch consumer research as the least likely to be bought, were subsequently the best selling ones. Had Swatch been guided by that market research, it would not have been a runaway success. Similarly, customers weren't clamoring for Starbucks coffee, CNN, or overnight small package delivery prior to their introduction. Market driving firms instead coalesce around visionaries who saw opportunity where others did not — an opportunity to fill latent, unmet needs or to offer an unprecedented level of customer value. In our research, we discovered that generation and development of 'the idea' was a combination of serendipity, inexperience, and persistence. VOCABULARY: coalesce - объединяться, образовывать единое целое visionary – мечтатель serendipity - особая способность делать случайные изобретения
42. Cadbury Shakes up Its US Drinks
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