Ermolaeva_L_D_Ekonomika_i_biznes_1

to advertise a product without spending too much money? 5. Which is the most expensive kind of advertising? 6. What would you do if you wanted your advertisement to bе seen all over the country? Give examples of at least three methods.

 XV. Read the dialogue and render the main contents in a monologue form.

A.: We need to define our strategy in two directions. Firstly, the market and, secondly, manufacturing. Do you agree that increased market share is the objective?

C.: No, I don‟t agree. I think we should go for higher profitability. If we can upgrade the product, we'll get better prices and therefore higher profits.

B.: Look, the market is already very competitive and getting more so. If we increase the prices whatever the quality, sales will drop rapidly.

A.: Right. Let‟s look at it from the other point of view – manufacturing.

C.: Well, if we can reduce costs in manufacturing, that must put us in a strong position to adapt to the market. The only way can be flexible enough is to subcontract more of the production.

В.: But it‟ll mean job losses if we do that.

A.: Yes, the jobs that remain will be more secure.

 XVI. Marketing Research is a systematic, objective way of getting information needed to solve specific marketing problems. Following the six steps presented in figure four describe the whole marketing research process.

 XVII. Solving problems through group discussion.

Before a manufacturer makes goods he will carry out a market survey. In pairs or small groups discuss and then give a careful description of what information is most essential for market research, where he gets this information, how he solves the questions of sale promotion of goods.

TEXT В

 I. Read the text В and find the definition of the following terms:

a) target market b) marketing mix c) channels of distribution.

MARKETING STRATEGY

Marketing strategy means finding attractive opportunities and developing profitable marketing strategies. A marketing strategy specifies a target market and a related marketing mix.

A target market is a fairly homogeneous (similar) group of customers to whom a company wishes to appeal.

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A marketing mix is the controllable variables which the company puts together to satisfy this target group.

It is useful to reduce all the variables in the marketing mix to four basic ones:

C

It helps to think of the four major parts of a marketing mix as „four Ps‟.

The customer is not the part of the marketing mix. The C stands for some specific customer – the target market.

The product area is concerned with the developing the right “product” for the target market. This offering may involve a physical good, a service, or a blend of both that should satisfy some customers‟ needs.

Place is concerned with getting the “right” product to the target market‟s place. A product isn‟t much good to a customer if it isn't available when and where it is wanted.

A product reaches customers through a Channel of Distribution. A channel of distribution is any series of firms (or individuals) from producer to final user or consumer.

The third P – Promotion – is concerned with telling the target market about the “right product”. Promotion includes personal selling, mass selling, and sales promotion. Personal selling involves direct face-to-face communication between sellers and potential customers. Mass selling is communicating with large numbers of customers at the same time. Advertising is any paid form of non-personal presentation of ideas, goods, or services by an identified sponsor. It is the main form of mass selling. Publicity is any unpaid form of non-personal presentation of ideas, goods, or services. Sales promotion may involve use of coupons, samples, catalogues, novelties, and circulars.

In addition to developing the right Product, Place, and Promotion, a marketing manager must also decide the right Price. In setting a price he must consider the kind of competition in the target market. Besides this, he also must know current practices as to markups, discounts and other terms of sale.

All four Ps are needed in a market mix. In fact, they should all be tied together.

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 II. Try to complete the table.

Definition

Purpose

 III. Study the figure presenting the marketing mix variables and try to explain why the customer is placed in the centre of four Ps in the diagram of the marketing mix.

 IV. Explain in your own words what each of four Ps involves.

TEXT C

 I. Study additional information about advertisements and do the exercise that follows it.

Advertisements play a very important part in our lives. Even in our homes, we cannot escape from them. They appear on television and in newspaper; commercial radio stations broadcast them; the postman brings leaflets.

Advertisements often pretend to be presenting facts about a product, i.e. making people think about it, while what they are really trying to do is make people feel a certain way about it. They use emotive language to do this. Why do advertisers try to affect our emotions instead of presenting facts and appealing to our reason?

Consider, for example, this short advertisement.

All the top people have HOTROD HEATING in their homes. It’s so elegant, so luxurious. Is your home in the same class?

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This conveys you no factual information about HOTROD HEATING. Its sole purpose is to persuade readers to buy the product. To do this it appeals to the “snob” in them and uses emotive words such as “elegant”.

 II. Study the advertisements below in a similar way and then pair up each one with the correct answer from this list.

This advertisement plays upon: (a) fear; (b) vanity; (c) greed; (d) our desire to be different; (e) our desire to be conventional; (f) our faith in science; (g) our admiration for famous people.

1.Every day more and more people are changing to WAXO HAIR CREAM.

2.Only beautiful girls (like you) should buy PUFFY FACE POUDER. It adds that final touch of loveliness to perfect complexions. Get your pack today.

3.Would you like to win £5000? All you have to do is buy ten bottles of SQUISH and you can enter our big-money, easy-to-win competition.

UNIT V

Grammar: Participle I, Participle II, their forms and functions

 1. Read and memorize the following words and word combinations.

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II. Make nouns bу adding the suffix – “ence/ance” and translate them: to accept, to conduct, to insure, to assure, to refer, to occur, to reluct, to differ.

III. Translate the following pairs of words paying attention to the suffix of

the noun - th:

long – length, wide – width, deep – depth, strong – strength, true – truth, grow – growth

 IV. Read and translate the following pairs of words paying attention to the suffix of the verb "-fy":

indemnity – to indemnify, class – to classify, intense – to intensify, identity – to identify, simple – to simplify, specific – to specify.

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V. Read and translate the following sentences paying attention to the meaning of the underlined words.

1.The contents of the factory may bе insured against burglary.

2.The risk involved in any insurance can bе calculated statistically.

3.The insurance company and the insured person undertake the contract for an agreed length of time.

4.The insured person must fill in a proposal form and be issued with a policy.

5.The insurance company estimates the premium the insured person will pay.

6.The insurance company will only indemnify the amount lost to the insured person.

VI. Choose in the right column Russian word combinations corresponding to English word combinations in the left one.

1. Insuring the factory against burglary а) заполнив предложенную форму

2.Having insured the factory against б) назначая сумму страхового взноса burglary

3.Calculating statistically the risk в) выплатив компенсацию по общей

VII. Replace attributive and adverbial clauses bу present or past participles.

Pattern: The policy sets down in full detail all the conditions which are agreed between two parties.

The policy sets down in full detail all the conditions agreed between two parties.

1. The house which was completely destroyed bу fire appeared to have been insured. 2. Large companies, which invest millions each day, make large profits for their shareholders. 3. If we upgrade the product, we‟ll get better prices and therefore higher profits. 4. The customers‟ premiums, which are received by insurance company, are invested in the best possible ways. 5. People, who accept risks at Lloyds the marine insurance centre, are called underwriters. 6. When a person wills to become insured he fills in a proposal form. 7. Insurance companies can calculate statistically the risk, which is involved in any insurance contract.

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 VIII. Imagine that you are planning to insure your property. Think of all the actions you undertake before you do it. Complete the following sentences with appropriate past or present participles.

1.I‟ll get a reference book … by some insurance companies (compile).

2.I‟ll get the information of the insurance services … by some insurance companies (offer).

3.I‟ll choose the company … more favourable terms of insurance (provide).

4.I‟ll call the insurance agent ... the desired insurance company (represent).

5.I‟ll discuss with the insurance agent the contract … the conditions … between the parties involved (concern, agree).

6.I‟ll fill in the proposal form and I'll be issued with a policy … the conditions between the parties ... (set down, involve).

 IX. Translate the sentences paying attention to the forms and functions of Participle I and Participle II.

1.The business being transacted bу this insurance/assurance company is about 60% insurance and 40% assurance.

2.If fixed by an insurance firm a premium can‟t bе changed bу an insured person.

3.Having calculated the risk involved in this contract the company estimated how much premium the insured person would have to pay.

4.While using the car in a city a motorist has to pay a higher premium.

5.Having completely settled for a damage in the home an insurance company paid an insured person £ 5000.

TEXT A

INSURANCE

Insurance is a financial protection against an event which may happen. Assurance is a financial protection against an event which must happen.

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Examples:

1.A factory owner may insure his factory against fire, his machinery against damage and the contents of the factory against burglary.

2.A private individual should insure his house against damage, the contents of the house, such as the furniture, against fire and theft and the members of his family against accident and ill health.

Death insurance is called assurance, because everybody has to die, and one can be assured that death is not usually an accident.

Life (or death) assurance means that a sum of money will be paid to the next of kin of the assured person when that assured person dies or after the premium payments have been paid for an agreed length of time, say 10 years or 25 years.

Companies are able to calculate statistically the risk involved in any insurance or assurance contract which they undertake. Generally if the risk is high then the premium that has to be paid will also be high. For example, some areas are more liable to have burglaries than others, so in these higher risk areas the premium for insurance against burglary will be higher. Some city areas have a high accident rate for motor vehicles, so the premiums charged to motorists who drive mainly in these areas will be high.

The large companies invest many millions each day and. make very large profits for their shareholders.

When a person or company wishes to insure or assure they will fill in a proposal form, then, if the company is willing to accept the risk involved, they will pay a premium (weekly, monthly, quarterly or annually) and be issued with a policy. The policy sets down in full detail the conditions agreed between the

Utmost good faith means that both the insurance company and the insured person must bе absolutely honest with each other when they are completing the proposal form and agreeing the contract between them.

Insurable interest refers to the fact that you can only insure yourself or your property against the possibility of loss. For example, you can assure your life or lives of your family for financial compensation in the event of death but you cannot do the same on the life of a friend or neighbour.

The pooling of risks means that the company is able to calculate statistically the risk involved. The company then estimates how much premium each insured person will have to pay and will pay out when the event insured against occurs.

Indemnity means that the insurance company will only indemnify (pay out) the amount lost to the insured person, should that loss occur.

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There are some risks, which the actuaries (people employed by the insurance companies to calculate the risks involved in the contract) will not insure against or they may be unable to calculate. They may not have enough statistical information to help them calculate the risk, or they may, as in cases of insuring a shopkeeper against „shoplifting‟, or against loss of profits, be unwilling to accept the risk. This is called uninsurable risk.

 X. Say as simply and directly as you can what is meant by the following expressions in the text:

High risk areas; a proposal form; the premiums charged to motorists; utmost good faith; in the event of death; to refer to the fact; the pooling of risks; to set down in full detail; high accident rate.

 XI. Find in the text words and phrases of similar meaning to the following: to value, relatives, to wish, period of time, to be subjected to, to make out a form to give out a policy, compensation, honesty, in the case of, incident, sum total.

 XII. Complete the following statements.

1.Insurance is a f... protection against an event which m... happen.

2.As... is a f... protection against an event which m... happen.

3.A factory owner may insure his property against f... and b... .

4.A private person may insure himself against a...

5.When a person wishes to become insured he fills in a p... f... and gives it to the company for acceptance.

6.He pays a regular sum of money known as a p... .

7.He is issued with a document known as a p... .

 XIII. Complete the following questions.

company must not fail to be completely honest with each other. Is this

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XIV. Solving problems through group discussions. Discuss in pairs or small groups:

1.Why it is possible for a trader to insure against fire, theft or damage to his property but not possible for him to insure against loss of profits and shoplifting by thieves.

2.How an assurance company will decide how much premium to charge a particular person who wishes to assure his life.

TEXT В

 1. Take three minutes to skim the entire selection. Then write three important questions about the topic that you think will be answered in the reading.

INSURANCE OF GOODS

The export trade is subject to many risks. Ships may sink or collide, consignments may be lost or damaged. All sensible businessmen now insure goods for full value. The idea of insurance is to obtain indemnity in case of damage or loss. Insurance is against risk.

While the goods are in a warehouse, the insurance covers the risk of fire, burglary, etc.

As soon as the goods are in transit they are insured against pilferage, damage by water, breakage or leakage. Other risks may also be covered.

The insured is better protected if his goods are insured against all risks. The goods may also be covered against general and particular average.

In the insurance business the word average means loss. Particular average refers to risks affecting only one shipper‟s consignment.

General average refers to a loss incurred by one consignor but shared by all the other consignors who use the same vessel on the same voyage.

Russian foreign trade organizations in most cases take out insurance with Ingosstrakh. Goods may be insured as well with some other insurance companies which have recently appeared in Russia.

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