U
n
i
t
1
. B
r
a
n
d
s.

1. What are visible parts of marketing? What are brand managers and sales teams responsible for?

2. Who takes part in distribution channels?

3. Why do some companies make luxury products abroad rather than at home? Give examples.

4. Some people believe that luxury fashion products should always be made in Europe. What's your opinion? Give examples.
1. What a
r
e visib
l
e pa
r
t
s of mark
e
ting? What a
r
e b
r
and managers and sa
l
e
s tea
m
s r
e
sponsib
l
e f
o
r
? As the marketing expert Philip Kotler has said, 'The most distinctive skill of professional marketers is their ability to create, maintain, protect and enhance brands.' There are an awful lot of misunderstandings about

‘marketing’. Many people see it purely as the various ways in which a business or organisation advertises

and promotes itself - a website, a brochure, corporate hospitality, advertisements and sales literature... But these are only the visible parts of marketing.

Professional literature defines marketing as 'the management process responsible for identifying, anticipating and satisfying customer requirements profitably'. In other words, it is not just about producing a piece of

promotional material to support a sales activity, it's about a systematic and careful process of ensuring that everything that the business develops and provides, whether it be a product or a service, is done with the

customer in mind.

Think of the process of marketing rather like an iceberg. The top eighth is the part that is visible - seven

eighths are unseen! What goes on below the surface is a whole range of activities and processes designed to ensure that any marketing communications are designed and delivered in the best way to achieve the desired results, usually that's profitable sales.
The main brand manager’s and sales teams’ responsibilities include:

- Developing and managing brand marketing plan

- Understanding and expressing brand’s positioning, designing appropriate marketing mix tools

- Brief & agree annual media plan, supervise work with advertising agencies

- Generate and analyze consumer insights, integrate findings into brand activities

- Manage pricing

- Enlist strong sales support for all brand marketing activities


2
. Wh
o ta
k
e
s p
a
r
t i
n dist
r
ibutio
n ch
a
nne
l
s?

Distribution (or placement) is one of the four aspects of marketing. A distributor is the middleman between

the manufacturer and retailer. After a product is manufactured it may be warehoused or shipped to the next echelon in the supply chain, typically either a distributor, retailer or consumer.


A number of alternate 'channels' of distribution may be available:
· Selling direct, such as via mail order, Internet and telephone sales

· Agent, who typically sells direct on behalf of the producer

· Distributor (also called wholesaler), who sells to retailers

· Retailer (also called dealer or reseller), who sells to end customers

· Advertisement typically used for consumer goods


Distribution channels can thus have a number of levels. Kotler defined the simplest level, that of direct contact with no intermediaries involved, as the 'zero-level' channel.

The next level, the 'one-level' channel, features just one intermediary between producer and customer - a retailer. In small markets (such as small countries) it is practical to reach the whole market using just

one- and zero-level channels.

In large markets (such as larger countries) a second level, a wholesaler for example, is now mainly used

to extend distribution to the large number of small, neighborhood retailers.


3
. Why do some c
ompanies m
ake l
u
x
u
r
y p
r
odu
c
ts ab
r
oad r
ath
e
r than at ho
m
e? Give e
x
ample
s
.

1

Some companies prefer to make luxury products abroad rather than at home because they want to lower the firm costs. The process of subcontracting to a third-party company is named outsourcing. The reasons for outsourcing are many and varied, such as cost saving, cost restructuring, improving quality, knowledge and many others. The classical examples of companies making their products abroad are Coach, the US

leather goods maker, which outsources all its products to Asia, and Burberry, which also has many Asian

licensing arrangements.


4. Some peop
l
e be
l
ieve that lu
x
u
r
y fa
s
hion prod
u
cts s
hould a
l
ways be m
ade in Eu
r
ope. Wha
t
's your opinion? Give e
x
a
m
p
l
es.

Although outsourcing is a widespread practice nowadays consumers have dual attitude to it. There is a strong public opinion regarding outsourcing (especially when combined with offshoring- the practice of

moving a company's operating base to a foreign country where labour costs are cheaper) that outsourcing damages a product quality dramatically. To be honest, I support this point of view. For example, about

ten years ago all products of British cosmetics company Avon were made in Europe. But now about 70%

of its production is outsourced in Russia and near abroad. Of cource the price of Avon cosmetics became

much cheaper but it’s not a secret that the quality changed dramatically too.


U
n
it 2. Trav
e
l

1. What types of airlines do you know?

2. How do you understand the term “code-sharing”?

3. What forms of cooperation between companies are there?

_{4. Why do people sometimes behave badly on planes? What causes such behaviour?}
1. Wh
a
t typ
e
s of air
l
ines do y
ou k
now?

Formerly airlines were classified into local, regional, national and international. Today they are classified according to their annual turnover. The biggest companies have the turnover from $100 million to $1

billion, the big regional - $10-$100 million, the average – less than $10 million.

It’s very important to remember that there are two kinds of airline operations-scheduled and

nonscheduled. A scheduled airline operates on fixed routs at fixed times according to a timetable that is available to public.

A nonscheduled airline operates on routs at a time when there is a demand for the service. The nonscheduled airline is in other words a charter operation that rents an aircraft.
2. How do you u
n
de
r
stand the te
r
m “
code-
s
h
a
r
i
ng”?

Code sharing is a business term which was first originated in the airline industry in 1990 when the

Australian airline, Qantas Airways and the US's American Airlines combined services between an array

of US domestic cities and Australian cities. The code share was part of a "cooperative services" agreement between the two carriers before the various airline alliances were formed. Code sharing is a commercial agreement between two airlines that allows passengers to use a ticket from one airline to travel on another. Most major airlines today have code sharing partnerships with other airlines, and code sharing is a key feature of the major airline alliances.

Lots of airlines, including all the big legacy lines, are involved with codesharing arrangements. Those

arrangements permit you to buy through tickets on routs that no single airline can serve. They may also provide opportunities to cut the cost of your airfare.
3. What fo
r
ms of coop
e
r
ati
o
n be
t
ween companies are there?

There are different types of cooperation between airlines: associations (like International Association of

Air Transport (IATA) which deals with the air navigation, the security of air transport and the

coordination of flight services), particular global airline alliances and code share agreements that have multiplied over the past years.
4. Why do peop
l
e s
o
m
e
times behave bad
l
y on pl
a
nes? W
hat causes such behaviou
r
?

The psychology of air rage is a new area of study, and there are almost as many explanations as

2

examples. Most analysts of the phenomenon blame alcohol, but many people now think that the airlines are at fault. To cut costs, they are cramming ever more passengers into their aircraft, while reducing cabin crew, training and quality of service, all of which increase passenger frustration. In addition, there

is increasing concern about another cost-cutting exercise, which could seriously harm passengers’ health:

cabin ventilation.


U
n
it 3. O
r
g
a
n
i
s
a
t
i
o
n.

1. What types of companies do you know?

2. Speak about flexibility and its types.

3. What is meant by "teleworking"?

_{4. What do you know about SOL company? Why is it unusual?}


1. Wh
a
t typ
e
s of co
m
panies do y
ou k
now?

Historically there were only sole proprietorships. Then came partnerships and then corporations.

Corporations are a several centuries old phenomena. Partnerships were arrangements between two or more individuals in which they pooled resources, and split expenses and profits. At first corporations were chartered by monarchies. Historically corporations offered limited liability and partnerships did not. In other words, if the venture failed, the organizers and promoters of a corporation retained their personal assets, while the owners and organizers of a partnership could lose their personal assets to the creditors of the business venture.

We can now define s
o
l
e

pr
o
pr
i
e
to
rsh
i
p as a business enterprise exclusively owned, managed and controlled by a single person with all authority, responsibility and risk.

Suppose you want to open a restaurant in your locality. You will need to organize a lot of things. You may find that it is not possible to arrange the money required to start and run the business alone. You

may then talk to your friends and all of you agree to run the restaurant by contributing a certain amount

of money and the other things required. So all of you join to become the owners and share the profits and

losses. This is another form of business organization – pa
r
t
n
ersh
i
p.

A company form of business organization is known as a J
o
i
n
t

S
tock

C
o
m
pan
y. It is a voluntary

association of persons who generally contribute capital to carry on a particular type of business, which is established by law and can be dissolved only by law. Persons who contribute capital become members of the company. This form of business has a legal existence separate from its members, which means even

if its members die, the company remains in existence. This form of business organizations generally

requires huge capital investment, which is contributed by its members. The total capital of a joint stock company is called share capital and it is divided into a number of units called shares. Thus, every member has some shares in the business depending upon the amount of capital contributed by him. Priva
t
e

Li
m
i
t
ed

C
o
m
p
a
n
y. These companies can be formed by at least two individuals having minimum fixed paid–up capital (the amount of money is determined by legislation of the country). The total membership of these companies cannot exceed a certain number of people (this number can be different in different countries). The shares allotted to its members are also not freely transferable between them.

These companies are not allowed to raise money from the public through open invitation and are required

to use “Private Limited” after their names.

Public Lim
i
t
ed

Co
m
p
a
n
y
. A minimum of seven members are required to form a public limited company.

It must have minimum paid–up capital. There is no restriction on maximum number of members. The shares allotted to the members are freely transferable. These companies can raise funds from general public through open invitations by selling its shares or accepting fixed deposits. These companies are required to write either ‘public limited’ or ‘limited’ after their names. These are the main, but not the only types of business organization.


2. Speak abo
u
t f
l
exibi
l
ity and i
t
s types.

Flexibility is the current buzzword today. Flexibility is understood as the ability to change or be changed

easily to suit a different situation. This has a number of related meanings. One type of flexibility has

existed for some time in the form of flexitime or flextime, where people can choose when they work within certain limits. Then there is the flexible working of the British Airways office in the main course

3

unit, with some of its staff hot-desking, particularly those who are homeworking, teleworking or telecommuting and only need to come into the office occasionally. A third type of flexibility is where employees are recruited on short contracts to work on specific projects, maybe part-time. Perhaps the organisation only has a core staff, and outsources or contracts out work from outside as and when required. Some management experts say that this is the future, with self-employment as the norm, and portfolio workers who have a number of different clients.


3. Wh
a
t is m
e
ant by "
te
l
eworking"?

Teleworking, also known as telecommuting, means using information technology and

telecommunications to replace work-related travel. Simple put, it means working at home or closer to home. With teleworking, employees work at home or perhaps at a local telework center one or more days per week. Communication is accomplished by phone, fax, modem, and teleconferencing. Nationwide, more than 20 million workers are going to work simply by picking up the phone or turning on their computers.


4. Wh
a
t do y
ou k
now ab
o
ut SOL co
m
pany? W
hy is it unusua
l
?

SOL is a Finland's Cleaning Service company which combines radical innovation with disciplined

execution – a winning formula that mops up the competition. Located in a renovated film studio in the heart of Helsinki, the office explodes with color, creativity, and chaos. The walls are bright red, white, and yellow; the employees wander the halls talking on portable phones (also yellow). Few people dream

about becoming a cleaner. But that doesn't mean cleaners can't find satisfaction in their work. The keys to

satisfaction, Joronen believes, are fun and individual freedom. SOL's culture is built relentlessly -- almost excessively -- around optimism and good cheer. Its cleaners wear red-and-yellow jumpsuits that reinforce the company's upbeat image. SOL's logo, a yellow happy face, is plastered on everything from her blazer to the company's stationery to its most important budget reports.

Freedom means abolishing all the rules and regulations of conventional corporate life. There are no titles or secretaries at SOL, no individual offices or set working hours. The company has eliminated all perks and status symbols.


U
n
it 4. C
h
a
n
g
e
.

1. What changes have taken place in organizations recently?

2. Explain the meaning of BPR.

3. How do you understand the term 'company culture'? What issues should be included into it?

_{4. Speak about the changes the US and UK department stores have gone through.}


1. Wh
a
t changes have tak
e
n pl
a
ce in o
r
gani
z
at
i
ons r
ecently?
Recent years have seen massive restructuring. Companies downsized and delayered, getting rid of levels of middle-management in order to become leaner, flatter, supposedly more efficient organisations. Often the reasoning was that computer networks allow top managers instant access to information that was previously gathered and transmitted upwards by middle managers, whose other main function was to communicate executives' key messages downwards to the workforce and in this they were accused of diluting or confusing the messages, or worse. With fewer organisational layers, top managers say they can communicate more directly with front-line employees, the people who actually produce the goods or

services, and deal with customers. With less direct supervision, employees have often been encouraged to make more decisions for themselves in a process of empowerment.

Another trend was re-engineering, the idea that an organisation should not change incrementally, but should start again from scratch with no preconceptions about how things-should be done, not just in manufacturing but in all the processes that contribute to what an organization does, hence business process re-engineering, or BPR.

The human side of this, again, was that there would probably be redundancies. The people remaining would probably feel demoralized, wondering when the next wave of change was going to

4

come and whether it would be their turn to be thrown out.
2. E
x
p
l
ai
n th
e m
eanin
g
o
f BPR.

Business process reengineering (BPR) is a management approach aiming at improvements by means of

elevating efficiency and effectiveness of the processes that exist within and across organizations. BPR is a restructuring an organization by means of a radical reconsideration of its core processes. The key benefits of BPR are:

· optimization of business processes:

· integration of IT systems;

· structuring and guiding of reorganization;

· business continuity planning;

· management knowledge.
3. Ho
w d
o yo
u u
n
de
r
stan
d th
e
te
r
m
'co
m
pan
y c
u
l
ture'
?
Wha
t i
s
su
e
s s
hou
l
d b
e in
c
l
ude
d int
o it?

A culture is the values and practices shared by the members of the group. Company Culture, therefore, is the shared values and practices of the company's employees.

Company culture is important because it can make or break your company. Companies with an adaptive culture that is aligned to their business goals routinely outperform their competitors. Company cultures

evolve and they change over time. As employee leave the company and replacements are hired the company culture will change. If it is a strong culture, it may not change much.

Here are some characteristics of company cultures that others have used successfully.

^· Mission clarity

^· Employee commitment

^· Fully empowered employees

^· High integrity workplace

^· Strong trust relationships

^· Highly effective leadership

^· Effective systems and processes

^· Performance-based compensation and reward programs

^· Customer-focused

^· Effective 360-degree communications

^· Emphasis on recruiting and retaining outstanding employees

^· High degree of adaptability

^· High accountability standards

^· Demonstrated support for innovation and development


4
. Speak about the c
h
anges the U
S and U
K de
p
a
r
tment sto
r
es have gone t
h
r
ough.

The US and UK department stores faced with decline in popularity. It can be explained by consumers

demanding better value and a more interesting and stimulating experience while shopping. Department stores faced strong competition from speciality retailers and discounters. Their steady loss of market share may be partly because the concept was born in a different era, a time when, for families, a trip to the stores combined shopping with entertainment. And now, what is needed is a new approach. A typical example of this approach working is seen at Selfridges. This UK group has recast itself from a sleepy

70s-style department store into a retailing good-structured modern department store.

One of the main changes is that more floor space is rented to vendors, in what is sometimes referred to as the showcase business model: vendors design their own booths and are encouraged to be creative. The problem is that all department stores look the same.


U
n
it 5.
M
o
n
ey.

1. How does money work?

2. What money institutions can you mention?

3. Describe different kinds of securities and different kinds of markets.

4. What can you say about the attitude to money in our culture? Has it changed in recent years?

5

_{5. How have Wal-Mart and Target stores performed lately?}
1. How does money w
or
k
.

Money makes the world go round, they say. Perhaps it is even truer that the world makes money go

round, especially in an era of globalization when capital can flow freely to and from almost everywhere. Money is always looking for places where it will be most profitable and earn the greatest return on investment.

As an individual, you can put your money on deposit in a bank, and as long as the bank doesn't fail and

the economy keeps functioning, you will get interest. Your money is lent out to people, businesses and governments who need it to finance their own projects, and the bank will make its money on the difference between what it pays out in interest on deposits and what it gets in interest from its loans.

If you want to live more dangerously you could buy some bonds, and as long as the organization or

country you've invested in by lending it money doesn't default, you will get your interest payments, and later your bonds will eventually be repaid. To live even more dangerously, buy some shares and share in the profitability of your chosen company. In good times, the dividends will be more than what you would get from bonds, and the shares themselves will increase in value, giving you a capital gain if you sell them. But if the company runs into trouble and goes bankrupt, you will be among the last to be paid back, and you may get only part of what you put in, or you may lose all your money.


2.What m
oney instit
u
tions can you m
e
ntion?

This is for example banks, insurance companies, mutual funds (unit trusts in the UK) and pension funds who may, of course, be investing the money of private individuals indirectly.

The markets they invest in include the money and currency markets, stock markets for shares (also

known as equities), commodities markets for anything from gold to pork bellies (used for making bacon),

and property (buildings and land). Let’s stop on several institutions.

The

most

f
a
m
ous

m
oney

institution

in

e
ve
r
y

country

is

b
a
nk.

Bank
is a financial institution that acts as a payment agent for customers, and borrows and lends money. Banks borrow money by accepting funds

deposited on current account, accepting term deposits and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current account, by making

installment loans, and by investing in marketable debt securities and other forms of lending.

A m
utua
l

fun
d is a professionally-managed firm of collective investments that pools money from many

investors and invests it in stocks, bonds, short-term money market instruments, or other securities. In a mutual fund, the fund manager, trades the fund's underlying securities, realizing capital gains or losses, and collects the dividend or interest income.
3
. De
s
crib
e d
i
ffe
r
e
n
t kind
s o
f se
c
u
r
i
t
ie
s
a
n
d d
i
ffe
r
e
n
t kind
s o
f ma
r
ket
s
.

From the point of view of investors, the world's financial markets exist in order to channel money to profitable investment activities and projects. From the point of view of borrowers such as companies and governments, financial centres exist so that they can find capital on the best terms.

Most investors are not private individuals but institutions like banks, insurance companies, mutual funds and pension funds who may, of course, be investing the money of private individuals indirectly. The markets they invest in include the m
oney

and

c
u
rr
e
ncy

m
arket
s, stock

m
arkets for shares (also known as equities), com
m
odities

markets
for anything from gold to pork bellies (used for making bacon), and property (buildings and land).

There are also m
ar
k
e
t
s

f
o
r

f
u
t
u
re
s
in currencies, equities, bonds and commodities: a future is a fixed- price contract to buy a certain amount of something for delivery at a fixed future date.

There are m
arkets

for

options
in currencies, equities, and bonds. Here, an investor buys the right to buy or sell a certain amount of these things at a certain price and particular date in the future. This is a form of betting on how prices will move.

Some of these markets, like stock markets, are based in particular buildings, some with trading floors, but

most trading is now screen and telephone based. Others, like bond and currency markets, are 'virtual', in the sense that selling and trading takes place by phone and computer between the premises of issuers, brokers and traders.

Securities
constitute the objects which investments are made of. There are various kinds of securities.

_{They are traded in markets, each one with specific rules.}
6

St
o
cks are the most popular security for investment. They actually represent ownership in a specific company. The most common way stocks appear in the market is by operations called initia
l pub
l
ic off
e
r
i
n
g
s
(
IPO
). These happen when a company decides to issue stocks, but giving away part of it to the public, in return for money paid by the new shareholders. The public gains a part of the company, by the cost of paying money for it, while the company obtains a massive amount of money, by the cost of having to give away part of its ownership, as well as part of its profits in the form of dividends.

Outside IPO's, stock can be bought and sold in st
o
ck e
x
change
s. These are places (physical or virtual)

where stocks are assigned a selling price and a buying price. Anyone can buy or sell stocks with the help of brokers.

Companies often need money for various ends, such as improving itself, expanding, buying other companies, and so on. There are many forms of doing this. One of it is using a

b
o
n
d. A bond is a contract

between an issuing company and a buyer. In this contract, the buyer lends a certain amount of money to the company, for a certain number of years. In return, the company is obliged to pay interest to the buyer,

periodically, at a specified rate.

F
u
n
ds become an interesting investment tool for everyone who is not interested in wasting time with

stock or bond picking, trading, and so on. Investment companies manage one or more funds, where money from many investors is managed by professionals. One investment fund usually holds a portfolio of securities. The decisions to buy or sell those securities are taken by the investment company behind the fund.


4
. W
h
a
t ca
n yo
u s
a
y a
b
ou
t t
h
e a
t
t
i
t
u
d
e
t
o m
on
e
y i
n
o
u
r c
u
l
t
ure
? H
a
s i
t c
h
a
n
ge
d i
n r
ec
e
n
t ye
a
r
s?

Money can be a curse or a blessing in our lives. If we deal with it according to the world’s standards, it can be a curse. Money is the number one source of stress and the primary cause for divorce.

People's attitudes towards money vary enormously and are largely influenced by the values they were

brought up with and how much money they have now.

Assuming there's enough money to keep a roof over your head and buy basic food stuffs, what you do

with the rest of your money will depend on your particular attitude. The following three statements broadly sum up the most common attitudes to money in today's culture:

1. M
oney is f
or enjoying - money is for spending on the things that make you happy. No one knows what the future may hold or what can happen tomorrow, so you should enjoy what you have when you

have it. Money's no use when you're dead, so live for today.

2. M
oney is for security - money should be spent on making life comfortable. Once you have the basic

home comforts, it's important to have money put aside for a rainy day. No one knows what the future may hold, so it's sensible to be prepared.

3. Money is f
or sha
r
ing - money should be shared generously with those you love and those less fortunate than yourself. Buying presents, entertaining others and giving money to charity creates feelings

in yourself and others that are priceless. No one knows what the future may hold, and some day you may need the favour returned.

So here are the main attitudes to money in our culture to my mind and I don’t think that my opinion differs from most people, so the attitude to money doesn’t change through years.
5
. H
o
w h
a
v
e Wa
l
-
M
a
r
t a
n
d T
a
r
g
e
t s
to
r
e
s pe
r
fo
r
m
e
d l
at
el
y?

Wa
l
-
M
a
r
t S
t
o
r
es is an American public corporation that runs a chain of large, discount department stores. It is the world's largest public corporation by revenue. It is the largest private employer in the

world and the fourth largest utility or commercial employer. Wal-Mart is the largest grocery retailer in the United States.

On September 12, 2007, Wal-Mart introduced new advertising with the slogan, "Save
Money Live

Bet
ter," replacing the "Al
w
a
y
s
Lo
w

P
r
i
c
e
s
,

Al
w
ays" slogan, which it had used for the previous 19 years.

Global Insight, which conducted the research that supported the ads, found that Wal-Mart's price level reduction resulted in savings for consumers.

Saving people money to help them live better is the goal of Wal-Mart. It’s the focus that underlies everything at Wal-Mart. And for the millions of customers who shop in these stores it means a lot. By

offering the best possible prices on the products customers need, Wal-Mart can help them afford something a little extra.
7

Target Corporation's main retailing subsidiary, Target Sto
r
e
s, is a United States discount retail chain consisting of 1,591(mo
r
e

than

1500)
stores. It has units in all states except for Alaska, Hawaii, and Vermont, operating under the heads of Target, Target Greatland, and SuperTarget. Target Corporation has aggressive plans to have 2,000 stores open by the year 2010, including expanding to Alaska and Hawaii.

Target stores tend to attract younger and more educated and affluent customers than its competitors. Target has cultivated a more upmarket and style-conscious image than other discount retailers. It is the third-largest general retailer in the US by revenues.


U
n
it 6. Advertis
i
ng.

1. What forms of advertising do you know?

2. Explain the meaning of 'direct marketing'. Why is it considered targeted means of advertising?

3. What is the difference between 'product placement' and 'product endorsement'?

4. What makes Mike's advertising tick?

5. How should you plan an advertising campaign?

_{6. Give examples of good and bad advertisements.}


1. What f
o
r
ms of adv
e
r
tising do you k
now?

The main form of advertising is m
edia.
It can include wall paintings, billboards, street furniture

components, printed flyers, radio, cinema and television ads, web banners, mobile telephone screens, magazines, newspapers, sides of buses or cars, and so on. Any place an "identified" sponsor pays to deliver their message through a medium is advertising. So you can see a lot of advertising in the streets. Another famous type of advertising nowadays is p
roduct

place
m
en
t. It is when a product or brand is noticed in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand. It is very popular nowadays for cars, watches, clothes. For example, product placement for Ford, BMW and Aston-Martin cars are featured in recent James Bond films, most notably Ca
s
ino

Royale.

The TV

com
mercial is generally considered the most effective mass-market advertising format, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events. For example, football.

Increasingly, other media are overtaking television because of more consumer's usage of the internet.

Adv
e
rtising

on

the

Wo
r
ld

Wide

W
eb
is a recent phenomenon. Prices of Web-based advertising space are dependent on the "relevance" of the surrounding web content and the traffic that the website receives.

E-
m
ail

adve
r
tising
is another recent phenomenon. Unsolicited bulk E-mail advertising is known as

"spam". So these are the most famous forms of advertising nowadays to my mind.
2. Explain the m
e
aning of 'di
r
ect ma
rk
eting'. Why is it c
onside
r
ed ta
r
geted means o
f adve
r
tisi
n
g?
Di
r
ec
t ma
r
ketin
g is one of the type of marketing. There are two main characteristics which differs it from other types of marketing or advertising. The first is that it attempts to send its messages directly to consumers, without the use of other media. This involves unsolicited commercial communication (spam, junk mail, etc.) with consumers or businesses. The second characteristic is that it is focused on driving purchases that can be attributed to a specific "call-to-action." If the advert asks the prospect to take a specific action, for example call a free phone number or visit a website, then the effort is considered to be direct response advertising.

Direct marketing is attractive to many marketers, because in many cases its positive effect (but not

negative results) can be measured directly. For example, if a marketer sends out one million solicitations by mail, and ten thousand customers can be tracked as having responded to the promotion, the marketer can say with some confidence that the campaign led directly to the responses. The number of recipients who are offended by the junk mail/spam, however, is not easily measured. By contrast, measurement of other media must often be indirect, as there is no direct response from a consumer.


_{3. What is the difference between 'product placement' and 'product endorsement'?}


8

P
r
oduc
t p
l
ac
e
men
t advertisements are promotional ads placed by marketers using real commercial products and services in media, where the presence of a particular brand is the result of an economic exchange. When featuring a product is not part of an economic exchange, it is called a p
r
oduc
t p
l
u
g. Product placement appears in plays, film, television series, music videos, video games and books.

Product placement is linked with the inclusion of a brand's logo in shot, or just appearance of a product in

shot. This is done without any special mention, it is done so that it looks like a natural part of work. Most movies today contain product placements. So the most common form is movie and television placements and more recently computer and video games.

In promotion and of advertising, a recomendati
on or e
n
do
r
se
m
en
t consists of a written or spoken

statement, sometimes from a public figure, sometimes from a private citizen. So product endorsement it is when a well-known person says how good a product is in advertisements. And people will buy the product because they like or trust the person.

Today endorsements appear mostly in television advertising. For example, a smiling star may

demonstrate and describe the benefits that she receives from using this or that product. In the case of celebrity endorsements advertisers aim to use the recognition-factor to draw on the halo effect. In theory, this source transfers from the celebrity to the advertised product, brand, and manufacturer. A problem with using celebrity endorsements involves any negative publicity that the celebrity might get: it will also transfer back to the product, thereby reducing brand equity.


4
. Wh
a
t m
ak
e
s
Ni
ke
'
s adv
e
r
t
is
i
n
g ti
c
k?

Phil Knight, the co-founder and former Chief Executive of Nike, has an absolutely clear and committed

strategy to use celebrity athlete endorsement. He has built Nike’s expansion into sport after sport from its athletics roots on the back of sporting masters. From the beginning Nike has been prepared to take a gamble on sporting bad boys others would not touch. It was a strategy that began with Ilie Nastase, the original tennis bad boy. The Romanian had the quality that has come to represent Nike and its

advertising: attitude. After extraordinary growth, Nike became number one trainer manufacturer in the US. But then it experimented unsuccessfully with expansion into non-athletic shoes, and lost its number one position to Reebok.

Knight bet the future of the company on a new feature: a new air technology inside the trainer. Sales took

off and the rest is history. This brings to globalization and the question of how American the brand can be. Nike uses a mix of global ad campaigns such as ‘good v evil’ and local advertising such as its famous poster campaigns in the UK. Marketing directors at Nike do not rely on market research pre-testing

which often reduces the impact of more experimental commercials. There is also the long relationship

with one of the world’s best ad agencies. Things only happen in Nike ads that sportsmen and women can really do.


5. How s
h
o
u
ld you plan an
a
dvertis
i
n
g ca
m
paig
n
?

An adv
e
r
tising ca
m
paign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC). Advertising campaigns appear in different

media across a specific time frame.

The critical part of making an advertising campaign is determining a campaign

theme, as it sets the tone

for the individual advertisements and other forms of marketing communications that will be used. The campaign theme is the central message that will be communicated in the promotional activities.

Taking on your own advertising campaign is no easy task. You can do it on your own but you should be ready to roll up your sleeves and get to work.

Your M
ar
k
eting P
l
an

Nothing can help you identify your goals more than your marketing plan. You learn a lot about your

company, your competitors and your long-term goals by creating and following your marketing plan. This is crucial to knowing what type of advertising is best for you.

C
r
eate a P
l
an of Action

Once you have your marketing plan, you must create a plan of action. Your plan of action also gives you

crucial info you can use in executing your ad strategy.

De
f
in
e You
r Adve
r
tisin
g Budget

How you advertise depends on your ad budget. You need to strategically use your advertising money. If you're only allowing a small portion of money to advertising, you wouldn't want to throw it all into the


9

production of one commercial that runs at 2 a.m. Know exactly how much you will spend on your advertising first so you can make wise decisions in the creation and placement of all ad mediums. Hun
t fo
r A
f
f
o
r
da
b
l
e Oppo
r
tunities

Running your own ad campaign means you have to be your own media director. You've got to find the best ad placement and the most affordable opportunities to fit into your budget. If you're limited to a very

small budget, you can find many ways to bypass high advertising costs.

K
no
w You
r Ta
r
g
e
t Audi
e
nce

You can't advertise effectively if you don't hit your target audience. Know who they are before you start creating your ads. If your company sells scooters to seniors, you don't want to invest in cable ads to run

on MTV.

Adv
e
r
tis
e
i
n App
r
o
p
r
iat
e Mediu
m
s

Of all the different advertising mediums you can use, you have to be able to use these mediums to your benefit. Spending all of your money on a direct mail campaign when your ad dollars would be better

spent on print ads is going to limit how many customers you could've gained. Take a look at each medium, think about your target audience, take a look at your marketing plan and your plan of action and

decide which medium(s) will be best for your ad dollars.

Don't B
e Af
r
aid to Hire F
r
e
e
l
anc
e
rs

If you can't turn your advertising over to an agency, still consider hiring a freelance copywriter and/or graphic designer. These professionals know what makes a good advertisement.

Many freelancers have worked in advertising agencies so you get the benefit of their expertise. Plus, freelancers can give you professional copy and materials at an affordable cost.

Co
n
sist
e
ncy is K
ey

If you're running TV and radio commercials, print ads and a direct mail campaign, keep them consistent.

Use the same announcer and music for your commercials. Print materials should use the same colors and fonts. Use the same tag line. You want to keep everything consistent so your potential customers start identifying your tag line, your colors, your font, your announcer, jingle - everything - that relates to your company's ad campaign.

Freque
n
cy

Buying space for one radio commercial that airs once at 4:30 in the morning isn't going to get much of a

response. You want commercials to have a larger frequency so you can increase your chances of hitting that target audience. If you're running a direct mail campaign, decide the frequency of your materials up front. Once you send your initial materials out, how many times will you send out follow up materials? Know the answers before you begin to help maximize your strategy's success.

Books

When all else fails and you still run into questions, there are plenty of books you can use to give you

guidance. Also be on the lookout for titles that have just been released so you can keep on top of current advertising trends.
6. Give e
x
a
m
p
l
es of good and bad adve
r
tise
m
e
n
ts.

An adv
e
r
tising ca
m
paign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC). Advertising campaigns appear in different

media across a specific time frame.

The critical part of making an advertising campaign is determining a campaign

theme, as it sets the tone

for the individual advertisements and other forms of marketing communications that will be used. The campaign theme is the central message that will be communicated in the promotional activities.

Good or bad will be this advertisement it’s another question. It is difficult to identify which advertisement is good and which not, because even in the surroundings of pitchmen there are disputes

about it. One people consider the most important in advertisement is that it could sell the product, the others more creative persons make useless from the point of sales but interesting for people

advertisements.

From my point of view the good examples of advertisements it’s the advertising of almost all perfumes.

It is always stylish, charming trailer with good selected music. For example the advertisement of Channel

№5 with Nicole Kidman. It is short, fascinated, low-pressured advertising.

Another good example of advertisement is classic advertising of New Year Coca-Cola. It is good looking advertisement, funny which helps you to feel the approaching of holiday.


10

As for bad examples, to my mind each advertisement in its trailer should contain the short message of the theme of this or that advertising. But this message should be on theme, it should contain the right sense

of the advertising subject. For example the trailer of Vanish. At the end of advertisement there is a

phrase: “Pink color, trust it and there will be no spots”. Whom should we trust? The color or the feature in the pink pot? It’s not correct message of the product.

U
n
i
t 7
. C
u
lt
u
res

1. Give examples of cross-cultural issues.

2. In what way should cultural stereotypes be handled?

3. Is there a difference between cultures and subcultures?

4. Explain the meaning of the term ‘cultural awareness’. Why is it important?

_{5. What advice would you give to a business visitor coming to Italy, the UAE, to Russia?}


1. G
i
ve exa
m
ples of c
ross-
c
u
l
tural i
s
s
u
es.

An individual's cultural background will affect the specific way in which he or she sees the environment and also how the individual might show his or her feelings, emotion, distress, or conflict in behavior,

thought or action. Therefore, culture will influence the experience of mental disorders and how they might present.

Miscommunication is the most popular example of cross-cultural issues.

Miscommunication across cultural lines is usually the most important cause of cross-cultural problems.

Miscommunication can be caused by several problems:

• dif
f
erences

in

body

l
anguage

or

ge
s
ture
s. The same gesture can have different meanings in different

parts of the world. For example, Bulgarians shake their heads up and down to mean no. In addition, the way people count on their fingers is not universal: The Chinese count from one to ten on one hand, and eight is displayed by extending the thumb and the finger next to it. The same gesture is interpreted as meaning two in France and as pointing a gun in North America.

• d
i
ff
ere
n
t

m
ea
n
i
n
g
s
f
o
r

t
h
e

sa
m
e

w
or
d. Like gestures, words can have different meanings or connotations in different parts of the world. The French word "char" means Army tank in France and car in Quebec. The word "exciting" has different connotations in British English and in North American English. While North American executives talk about "exciting challenges" repeatedly, British

executives use this word to describe only children’s activities (children do exciting things in England, not executives).

• dif
f
er
e
nt

assu
m
pti
o
ns

m
ade

in

the

same

s
ituation. The same event can be interpreted many different ways depending on where one comes from. For example, although the sight of a black cat is considered a

lucky event in Britain, it is considered unlucky in many other countries particularly in Russia. So in extreme cases, miscommunication can lead to casualties.


2
. I
n
wha
t
w
a
y
s
h
o
ul
d
c
ul
t
u
r
a
l
s
ter
e
o
t
y
pe
s b
e han
d
l
ed?

We use stereotypes in part because it’s so hard to take in all of the complicated information about other people in the world. It’s difficult to spend the amount of time necessary to understand why or in what

different ways people behave. So instead, we learn early in our lives to accept stereotypes of groups, or individuals. We develop stereotypes not just for large cultures, but smaller ones.

Stereotypes eliminate the challenges of understanding people who are different from ourselves; they supposedly give us a general overview of whole groups of people so we know what to expect and how to

act. Unfortunately, so many stereotypes are inaccurate(неточный) and are used as a method of scapegoating(козел отпущения), or to separate "their" behavior from "my" behavior. We don’t always

agree with, or like the way another cultures behave because it is different, and we therefore perceive it as wrong, and develop negative/ugly descriptions (stereotypes). When we have problems with someone of a

different group, we tend to identify the problem as having to do with the group, rather than ourselves or the specific person. So stereotypes do get in the way of how we think and feel. It makes us very

judgmental about others and unfortunately often erroneously so. Stereotypes prevent us from identifying the feelings that are really go on inside of us. With stereotypes, the belief will remain that someone did

something to us, rather than the problem, fear, or rigidity/closed thinking being within ourselves. When
11

we’re stereotyping we get caught up in the issue of that’s what "they do", that’s how "those people" are, instead of being in touch with our actual feelings of hurt, confusion, being slighted, left-out, anger, etc.


3
. I
s
t
h
e
r
e a d
i
ffer
e
nc
e
b
etw
e
e
n c
ul
t
u
r
e
s a
n
d
s
u
b
c
ul
t
ures?

Culture can be defined as all the ways of life including arts, beliefs and institutions of a population that are passed down from generation to generation. Culture has been called "the way of life for an entire

society." As such, it includes codes of manners, dress, language, religion, rituals, norms of behavior such as law and morality, and systems of belief as well as the art.

Various definitions of culture reflect differing theories for understanding, or criteria for evaluating, human activity.

A sub
c
u
l
tu
r
e is a set of people with a set of behaviors and beliefs, culture, which could be distinct or hidden, that differentiate them from the larger culture to which they belong. If the subculture is

characterized by a systematic opposition to the dominant culture, then it may be described as a counterculture.

Subcultures can be distinctive because of the age, race, ethnicity, class, and/or gender of the members. The qualities that determine a subculture as distinct may be aesthetic, religious, political, sexual or a

combination of factors. Members of a subculture often signal their membership through a distinctive and symbolic use of style, which includes fashions, mannerisms, and argot.

The study of subcultures often consists of the study of symbolism attached to clothing, music and other visible affectations by members of subcultures, and also the ways in which these same symbols are interpreted by members of the dominant culture.

So subculture it is the stream inside the main culture and they are connected with each other in so or that way.


4
. E
x
p
l
a
in t
h
e m
ea
n
i
n
g o
f t
h
e te
r
m ‘
c
u
lt
u
r
a
l a
w
a
re
ne
s
s
’
. W
h
y i
s i
t i
m
po
r
ta
n
t
?

Cu
l
tu
r
a
l Awar
e
n
e
ss is developing sensitivity and understanding of another ethnic group. Awareness

extends to special foods, manners of dress, language, religious preferences and observances, and differences in communication styles. (For example, in some cultures it is impolite to make eye contact, especially with someone you do not know well.) To enhance the quality of the visit, it is helpful to be aware of cultural differences and be sensitive to those differences.

Cultural awareness recognises that we are all shaped by our cultural background, which influences how we interpret the world around us, perceive ourselves and relate to other people. You don’t need to be an expert in every culture or have all the answers to be culturally aware; rather, cultural awareness helps you to explore cultural issues with your recipients more sensitively.

Information about specific cultural practices will help to increase your cultural knowledge by providing an overview of cultural characteristics and issues. However, it is always important to identify individual needs and preferences and remember that no individual can be reduced to a set of cultural norms.

Within any culture, peoples’ values, behaviour and beliefs can vary enormously. Differences may occur due to time of arrival in Australia, length of settlement, socio-economic background, level of education,

way of life, identification with cultural and religious background, and different life experiences. K
e
y

Con
s
i
d
era
t
i
o
ns

· Be aware of your own cultural influences.

· Be aware of judging other people's behaviour and beliefs according to the standards of your own

culture.

· Be aware of making assumptions about cultural influences and applying generalisations to

individuals.

· Understand that the behaviour and beliefs of people within each culture can vary considerably.

· Understand that the extent to which people adopt practices of their new country and retain those from their cultural background can vary within communities, even within families.

· Understand that not all people identify with their cultural or religious background.

· Increase your knowledge about different cultural practices and issues through cultural background

information sessions and/or resources and cultural awareness training.

<sub>· Understand the importance of appropriate communication.


5. What advice would you give to a business visitor coming to Italy, the UAE, to Russia?</sub>
12

Italy

Lively conversation is common in Italy. Welcome topics of conversation include Italian architecture, art

and films, sports (especially football), opera and praising the hospitality of the country. It is best to avoid

criticizing Italian culture, even if your Italian counterparts are doing so. Don’t give a business gift until you receive one. Your gift should be a well known brand name. gifts of alcohol or crafts from your country are often good choices. Other possible gifts are fine pens, a framed print or picture, silver key rings or calculators. Avoid giving gifts showing your company’s logo. Hospitality plays a key role in Italian business culture. Regardless of how you feel, refusing an invitation of any kind may give offence. The business breakfast is almost unheard of. Rare exceptions may be found in the major cities. Business dinners involve only a small, exclusive group. If you are the host, check with your Italian contact before making any invitations. Lunch is still the main meal of the day in most areas of the country. It is usually served after 12:30 p.m. and often has many courses.

United Arab Emirates

The hosts usually set the subject of conversation. They will normally begin with polite enquiries (How are you? How are you enjoying your visit? etc.). If others arrived before you, your hosts will often tell

you the subject of the previous conversation and invite you to contribute. Giving gifts in the UAE is more complex than in other countries. This is partly because of the mixture of nationalities: each nationality

has different tastes and customs. Also, nearly everything can be purchased in the UAE less expensively than elsewhere in the world. As a gesture of respect, your host is likely to open and carefully examine

your gift in your presence. It is important that your gift is the best you can afford to avoid embarrassment. Sharing a meal is considered the best way for people to get to know one another. Locals

often entertain at home but they will accept a foreigner's invitation to a hotel or restaurant. Hospitality in the UAE is very important but should not be interpreted as future commercial success. There are local

customs to be aware of, for example, it is considered bad manners to either eat or offer something with the left hand.

Russia

Obtaining
an appointment can be a tremendous challenge, so persistence and patience are essential. Once

your appointment is scheduled, do everything you can to avoid cancellation.

When making appointments, be sure to schedule them far in advance. It will also be in your best interests

to confirm any appointment several times, as the scheduled date approaches.

The Russian day begins early, but it can be difficult to foresee when all other daily activities will begin

and end. Schedules are constantly subject to change, often at the last minute. Any visitor should strive to be punctual, but at the same time flexible.

Always be punctual, but do not be surprised if your Russian contacts are not. It is not unusual for a

Russian to be one or two hours late for an appointment. Generally, the more important the meeting is for

your Russian counterparts, the more punctual they will be. Allow plenty of time for each appointment. Not only may appointments start late, they may last far longer than originally planned.

Business hours are generally from 9:00 a.m. to 5:00 p.m., Monday through Friday.

There

is

an

old

Russian

pro
v
er
b--"they meet you depending on how you're dressed and they say good

bye depending on how wise you seem."

Nowadays, Russian businesspeople pay a lot of attention to how they are dressed. Russian people in

general probably spend more money from their family budget on clothing then any other nation in the world.

Those who can't afford to buy top fashion brand clothing (such as Versace, Armani, Gucci, Calvin Klein or Hugo Boss) prefer to be dressed in cheaper but still well made suits rather than wear the fake products

widely available in numerous markets across the country.

If you're a man, your best bet will be to wear a suit and tie (make sure not to wear the same ones every

day) for all your meetings, whether it's in an office or restaurant. Dark colours and white shirts are only for special ocasions. Otherwise, choose tones in light blue, gray, or brown.


Vi
s
itors

should try to speak in a calm, moderate, tone of voice at all times.

Usually, your Russian colleagues will be delighted if you make the effort to speak even a few sentences

of their language. Nevertheless, if your Russian party speaks your languge, your decision to speak

Russian may cause confusion (e.g.--they might think that their English is not good enough).


13

Russians are sometimes very careful about what they say, and may revert to speaking metaphorically, symbolically, and perhaps even cryptically. Consequently, there is a great deal of reliance on nonverbal communication. At other times, however, they can be extremely frank; it all depends on the situation. When a Russian touches another person during conversation, it is usually a sign of confidence.

You will sometimes find the Russians to be enthusiastic about discussing politics and the challenges of

living in Russia. Participating in this kind of discussion and expressing your views (even if they are opposite) is more welcome than just being an active listener.

Bringing up the subject of Russian culture and history can be an appreciated gesture. Russians are extremely educated--so don't be surprised if they start to talk about the history (more likely than culture)

of your own country. Be prepared.

Personal questions are best avoided, although you may be subject to these inquiries. Make the effort to

answer these questions as best as you are willing to allow, since your Russian companions may press you for details.

There is tremendous affection for children in this culture; if you are a parent, showing photographs of your children can be an effective way of building good will.

In conversation, it can be permissible to discuss your feelings and hopes for the future. Sometimes, your

Russian companions will be far more interested in the personal side of your character than your business

agenda.

We
l
c
o
me T
opics of Conv
e
rsation the changes taking place in Russia current events

World War II

economic difficulties

positive contrasts and comparisons between Russia and your country [let your Russian companions bring up this subject first]

books films

Topics to Avoid complaints about Russia the Holocaust

the Czar and the monarchy

ethnic minorities religion

comparing/contrasting Russia to other developing countries comparing/contrasting Moscow and Saint Petersburg

Generally

speaking, Russians take pleasure in giving and receiving gifts. Be sure to bring an assortment of gifts, so that you will always have something appropriate to give.

Cheaper gifts do not have to be wrapped, while more expensive ones should be.

Gifts for children are usually opened in private, while gifts for adults are generally opened in the

presence of others. If your gift was a hit, you will hear many 'thank-yous.'

Russians spend a lot of money on gifts. Avoid giving gifts such as pencils, pens, lighters (unless they are

expensive ones), cheap wine or vodka, notebooks, etc.
When invited to a Russian home, bring a gift of chocolates, dessert items, good wine, or other alcohol

[try to select something other than vodka, which is widely available].

Bringing a bouquet of flowers (not too expensive though) for women you are visiting (doesn't really matter how many of them are in the family you're visiting) is a good idea. Make sure you have an odd number of flowers. Even numbers usually are for funerals.

Ap
p
r
ecia
t
ed G
i
fts

wine or other alcohol [try to select something other than vodka]

fine chocolates [when invited to a home]

a food item that is scarce towels

cameras watches


14

perfume, cologne [as a thank-you for an overnight stay]

clothing [as a thank-you for an overnight stay]


U
n
it 8.
E
mpl
o
ym
e
nt

1. How do personnel managers act in their companies? What are their responsibilities?

2. What is the way the professional people can make a living if they were made redundant?

3. How can organizations retain high-performers?

_{4. What should you remember about while attending a job interview?}


1. How do pe
r
sonnel managers act in their companies? What are their r
esponsibilities?

They act more as facilitators for other departments: they deal with recruitment in conjunction with

department managers, they administer payment systems in tandem with accounts. They may be responsible for providing training, in industrial relations they are involved in complaints and disputes procedures. They have to break the news when people are dismissed.

Personnel managers may be involved in actions to eliminate racial and sexual discrimination in hiring

and promotion and to fight harassment in the workplace: bullying and sexual harassment. They create remuneration systems (schemes of rewards) in order to increase motivation.
2. W
h
a
t is the way the p
r
ofes
s
ion
a
l peop
l
e can make a l
iving if t
h
ey we
r
e made r
edunda
n
t? People who are made redundant should try to find another job. Organization which makes redundancy often try to help their ex-employees and sometimes HR specialists offer outplacement services. They organize meetings for job-seekers with potential employers.

Professional people who are made redundant can make a living as freelancers, or portfolio workers,

working for a number of clients.


3. How can o
r
gani
z
ations r
e
tain high-pe
r
form
e
r
s
?

Money remains an important motivator but in practice high performers tend to think that it goes without

saying that they must get a good financial package.

Empowerment is another important motivating force. A high performer wants to feel that he or she

“owns” a project.

High performers try to develop their skills so that’s why work needs to be varied and time should be

available for creative thinking and developing new skills.

Above all, high performers – especially if they are young – want to feel that organization they work for

regards them as special. If they find that company isn’t interested in them as people but only as high- performing commodities they will leave their position.
4. Wh
a
t shou
l
d you r
eme
m
b
e
r about whi
l
e attending a job inte
r
view?

Interview is a good opportunity for you to evaluate the company. Good preparation for interview is a key to success. It’s very important to bring extra copies of your CV and typed list of references. To my mind

it is very important to find out as much as you can about your employers and the business they are in. Also preparing for the interview think about your arriving at least 15 minutes early. It is very important

to think about your appearance and dress before interview. Of course we prefer to be hired because of our skills and abilities, not because of our dress. But like it or not appearance is important and it creates

image. Your appearance can express motivation and professionalism.

I think that it’s very important not to criticize your previous employers. It’s possible to explain your

leaving saying that you didn’t think that you could use all of your abilities and skills. During the interview it’s important to explain why you would like to work for this company emphasizing all the things in your previous experience that you think will be useful in the new job. It’s important to relax and be yourself, look at the interviewer when he or she asks you questions and show great interest in the job.

U
n
i
t 9
. T
r
a
d
e

1. What are the latest trends in international trade?

15

2. Why do many countries argue for protectionist measures for their industries? How do they do that?

3. What is the major concern in international trade and how to deal with it?

_{4. What do you know about “fair trade”?}
1. What are the latest trends in inte
r
na
t
io
n
al trade?

Industrialization, globalization, multinational corporations, and outsourcing are the latest trends in

international trade. Globalization is the process enabling financial and investment markets to operate internationally, largely as a result of deregulation and improved communications. It is the emergence since the 1980s of a single world market dominated by multinational companies, leading to a diminishing capacity for national governments to control their economies. Consequences of globalization: globalization increases competition among companies, globalization improves international communication and understanding, trade liberalization-trade barriers become lower, shipping costs decrease (costs on sending or delivery goods), globalization damages local goods, services and cultures, ecological problems.


2. Why do many c
o
u
ntries a
r
gue for p
r
otectionist measures f
o
r their indust
r
i
e
s? How do t
hey d
o
that?

P
r
otectionism is no longer the order of the day in most places; even if some developing countries argue

that protectionist measures are the way to get their economies going, they avoid using the term. Trade negotiations are well-known for their epic eleventh-hour negotiating sessions, where individual nations argue for what they see as their specific interests. Countries argue for protection of their strategic industries, ones they consider vital to future prosperity such as the electronics industry in the developed world. A less developed country beginning car assembly might want to protect it as an infant industry. European farmers argue for their subsidies, where governments guarantee farmers a higher price than they would normally gel, making it hard for developing nations to compete in agricultural products. The French argue for cultural protection, pointing out the uniqueness of their film industry and winning restrictions, or quotas, on the number of Hollywood products that Europe imports.


3. W
h
a
t is the m
ajor c
once
r
n in inte
r
natio
n
al trade and how to deal with it?

One m
a
j
o
r co
n
c
e
r
n in international trade between smaller companies is payment. The exporter wants to

be sure about getting paid and the importer wants to be sure of getting the goods. A common solution is the letter of credit, where a bank guarantees payment to the exporter's bank once it receives the related shipping documents, including the clean bills of lading, showing the goods have been shipped without damage or other problems. Shipping terms like CIF, or Carriage insurance freight, where the exporter pays for insurance of goods while they are being transported, are part of the standard incoterms defined by the International Chamber of Commerce. These terms are used in standard contracts that form the basis, with adaptations, for most international trade contracts.


4. What do you k
now ab
o
ut “
f
air t
r
ade”?

Fair t
r
ade is an organized social movement and market-based approach to alleviating global poverty and

promoting sustainability. The movement advocates the payment of a fair price as well as social and environmental standards in areas related to the production of a wide variety of goods. It focuses in particular on exports from developing countries to developed countries, most notably handicrafts, coffee, cocoa, sugar, tea, bananas, honey, cotton, wine, fresh fruit, and so on. Fair trade's strategic intent is to deliberately work with marginalized producers and workers in order to help them move from a position of vulnerability to security and economic self-sufficiency. It also aims at empowering them to become stakeholders in their own organizations and actively play a wider role in the global arena to achieve greater equity in international trade.


U
n
it 10.
Q
u
a
l
ity

1. What is TQM? What does it involve? (kanban, just in time manufacturing, kaizen)

16

2. What is BPR? What is its concept? What is benchmarking?

3. Which features express the idea of quality in the best way? Why?

_{4. How can manufacturers guarantee product quality?}
1. Wh
a
t is TQM? What does it invo
l
ve? (kanban, j
u
st in time m
anufactu
r
ing, k
a
i
z
en)

Total quality management or TQM was a watchword of the 1980s. This often involved employee

participation, with quality circles of workers encouraged to suggest ways of making things in better ways, It was associated with an influx of other Japanese ideas, such as the kanban system of just-in-time manufacturing or lean manufacturing, where parts are only made and supplied when they are needed, so that inventories (stocks) of parts and the need to finance and store them are eliminated. A related objective is that of zero defects, where things are made right first time, eliminating the need for inspection and reworking. All this is part of kaizen: striving for continuous improvement.


2. W
h
a
t is BPR? What is its conce
p
t? What is b
enchmarking?

TQM gave way in the 19905 to business process re-engineering or BPR, when companies were told by their consultants not just to tinker in a piecemeal way with how goods or services are produced but to

abolish everything and to start again from scratch. The concept of leanness was now also applied to reducing the number of management layers, and a lot of middle managers lost their jobs.

It was also in the nineties that benchmarking emerged: the idea that a firm should see which company performed a particular task best, and model their performance on this best practice.
3. W
h
ich f
e
atur
e
s express the idea of qua
l
ity in the best way? Why?

To my mind such features of products (or services) as value for money, reliability, durability express the idea of quality in the best way. It’s very important for customer to be sure that he pays money not only for brand but for quality of product (or service). When I buy something I pay much attention to such features as after-sales service and guarantee. If producer can provide its customers with long-continued guarantee and good after-sales service it can make no doubt that it has a good competitive advantage.
4. How can m
anufa
c
tu
r
ers gua
r
antee p
r
oduct quality?

They apply for the certification of the International Organization for Standardization in order to reassure their customers. They provide customers with long-continued guarantee in order to reassure them in product’s durability. And of course good companies which take care of their customers provide them with good after-sales service.


U
n
i
t 1
1
. Et
h
i
c
s

1. What is the purpose of any business? Is it just to make money?

2. Why is corruption more common in some countries than in others? What are the consequences of it?

3. Which areas of business do not give enough information about social and environmental matters?

_{4. How do companies deal with different ethical issues?}
1. Wh
a
t i
s th
e pu
r
pos
e
o
f
an
y busine
s
s
? I
s i
t j
us
t t
o m
a
k
e m
oney?

From my point of view “moneymaking” is not the only one purpose of the commercial companies. Any

business would like to obtain the recognition of their customers and even their competitors. So, the main function of any organization is to make lives of its customers easier. In other words, organizations should clearly defined responsibilities towards its "clients".

All the issues mentioned above are contained in organisation’s mission statement. So that mission

statement is a brief statement of the purpose of the company. Companies sometimes use their mission statement as an advertising slogan, but the intention of a mission statement is to keep members and users


17

aware of the organization's purpose. (Example-"Organize the world's information and make it universally accessible and useful."—Google)


2. Why is c
or
r
up
t
ion mo
r
e common in so
m
e count
r
ies than in othe
r
s? What a
r
e the conseque
n
ces
o
f it?

To my mind it depends on two factors: the growth of international trade and the business and the economic changes that have taken place in many countries and especially in the economies in transition.

Thus, countries where is high concentration of money and opportunities are prone to different forms of corruption. Representative example of such country can be Russia.

Consequences:

-Reducing public sector wages

-Dissatisfaction with standard of living

-high level of bureaucracy


3. Which a
r
eas of busine
s
s do not give e
nou
g
h i
nfo
r
m
a
tion about social and envi
r
onm
e
ntal
mat
t
ers?

Every year more and more companies are blamed for giving a lack of information about social and environmental issues. In other words, when we talk about how to make a profit, only minority thinking

about pollution, social environment, ethic etc. For example, factories, producing manufactured goods, don’t pay enough attention to harm they cause to environment and save money on filters. The food

industry is blamed for obesity. Mobile phone operators are challenged to protect teenagers from online pornography. Record companies are attacked when they sue music-lovers for sharing illegal files on the

Internet. Fortunately, now more companies take into consideration environmental and social issues and take action as they regularly face real or potential threat to their reputation. Now 100 of the FTSE 250

cover environmental, social and ethical issues.


4. How do co
m
panies deal with dif
f
e
r
ent et
h
ical issue
s
?

All businesses increasingly want to be perceived as good citizens. Different types of business face

different ethical issues:

• Financial institutions try to prevent insider trading by erecting notional barriers called Chinese walls

between different departments (for example, to prevent someone in share trading from discovering from the mergers department that a particular company is involved in merger talks and that its share price will soon rise).

• Companies selling personal finance promise to ensure that clients are sold appropriate products for their

needs, and thus avoid misselling.

• Manufacturers claim that their products are green or environmentally friendly in all stages of their

production, use and disposal.

• Cosmetics companies say that their products are not tested on animals.

• Clothing companies claim to trade fairly and that their products are not made in sweatshops paying subsistence wages and using child labour.

U
n
i
t
1
2
. Leader
s
h
ip

1. Why do companies increasingly nurture their potential leaders?

2. What makes a good leader? What are the differences between men and women leaders?

3. What is the difference between a manager and a leader?

_{4. Are the leaders born ore made?}
1. Why do co
m
panies in
c
r
ea
s
ing
l
y n
u
r
tu
r
e the
i
r poten
t
ial l
eaders?

Companies are increasingly thinking about how to nurture their leaders. For example, in US corporate

governance has become a key issue with shareholders. The have rejected the previous cosy arrangments, where directors appointed people they knew, to the board, and now demand much geater scrutiny over who is chosen and how. It means that leader should have the empowerment and charisma to motivate to

18

others in the achievement of the goals, but their qualities cannot be seen in isolation. There must be the right chemistry between the leader and other top people, and they must have the right mix of complementary skills. If your CEO leaves after six months in the job, perhaps, after what the papers describes as “irreconcilable differences”, or as a boardroom battle, the company and the perception of it will suffer, and so, probably, will its share price. By the time you find another one, two or three years may have been lost, an eternity in strategic terms. That’s why nurturing leaders is an extremly sensitive task.


2. What ma
k
es a good l
ead
e
r
? What a
r
e the dif
f
e
r
ences between men and wo
m
en l
eader
s
? a)An effective leader is by nature a self-confident person who has the courage to overcome doubts, uncertainties and fears while being upbeat even beyond of him/her personal limitations, business constraints, odd appreciations and envy of co-workers. Leader should be charismatic, humble, decisive, motivating, opportunistic, sometimes unpredictable.

b)There are lot of stereotypes about differences in how men and women work. Most people do not accept women as bosses because they think they have a weak character. Women are more relationship oriented

at work than men. They are also using an easier and a more straightforward language compared with men. The language of women is also more emotional and flowery. So, when a woman is a head of the

company it’s more likely that in the organization there’ll be the feeling of “togetherness” and even informality and the lack of hierarchy. It makes the employees feel protected and work in

cosy/comfortable conditions which will stimulate their efficiency.

As far as men concerned, they are, as a rule, are physically and emotionally stronger than women.

Usually it helps to keep situation under control. Most of the time, men are the breadwinners. They work really seriously and see the world as it really is- it is perfect leadership quality; therefore, men make correct decisions quickly.

But we shouldn’t forget that it is our personality that makes us competent, not our gender.


3. What is the dif
f
e
r
ence between a m
anager a
nd a leade
r
?

1) First of all, leadership is a personality trait whereas manager is a job title.

2) A leader is an inspirational, passionate and proactive professional who due to his/her talent is a

benchmark to other co-workers, who want succeed like them and learn to be influential in the enterprise’s framework. A leader has the willingness to feel him/her encouraged and face proactively any kind of situation nevertheless of the risk and cost involved. Additionally, a true leader has no matter how challenging and tough these could be.

A manager is an operational and/or functional driven professional whose focus is oriented to ensure operational excellence in those operational issues, financial performance, talent management and marketing strategies relevant to his/her managerial function.

Managers tend to be reactive, blend in with the environment, keep the future the same as the present,

maintain image, keep what they have, and not always comfortable being accountable for the responsibilities they wield.

3) Some differences:

- Managers working in the system and leaders working on the system;

- Managers reduce weaknesses and leaders amplify strengths;


But, both of them working on progress, on company’s prosperity. So, you need both. Both are required for effective corporate growth.
4. A
r
e t
h
e leaders bo
r
n o
r
e made?

I believe that nothing in our life comes easily. If you want to achieve smth significant, become a

founder of an organization, leader not only of your company, but of the public opinion, you should make

great efforts. So, from my point of view, leaders are made rather than born. But it’s undoubtfully that leadership is a matter of personality. To become leader you should possess charisma and other above mentioned characteristics.


U
n
it 13. Innovat
i
on
19

1. What is the main role of R&D?

2. Why do different industries have different lead-times?

3. What may the launch of a new product involve?

_{4. How is Procter & Gambler better than its competitors in terms of innovation?}


1. W
h
a
t is the m
ain r
o
l
e of R&D?

The main role of Research and Development department is provision of results of scientific research in

order to develop new products and improve existing ones. For example the initial idea for a car will be

turned into a series of prototypes and tested. In software development, the final 'prototype' is the beta version, which is beta-tested. Pharmaceutical go through a series of trials.
2
. Wh
y d
o dif
f
er
e
n
t indust
r
ie
s
hav
e di
f
f
eren
t lead-time
s
?

Different industries have different lead-times, the time between conception and product launch; a new drug might take 10 or 15 years to develop. In consumer goods, market research will be a key part of the development process, with focus groups: small groups representing cross-sections of consumers talking

about their reactions to proposed designs, and consumer surveys. After market research there can be trial run of products. After that there can be researches of consumer’s reactions on this product, researches of sales. So all researches require different period of time for different products.
3. Wh
a
t may the l
aunch of a new p
r
oduct invo
l
ve?

The launch of a new product might involve a national, international or global rollout. A well-oiled public

relations machine will have prepared the way for the new product by getting the required media

coverage, where the terms leading edge and state of the art will perhaps appear. Any teething problems will hopefully be ironed out during development rather than after the launch. The ultimate nightmare is when a company has to recall products because of design defects. The coverage this might get is the least welcome imaginable.
4. How is P
r
oct
e
r & Gamb
l
e
r bett
e
r than its co
m
peti
t
o
r
s in ter
m
s of innova
t
ion?

According to Lafley, the CEO of P&G, organic growth strengthens a company’s ability to innovate.

Organic growth – meaning growth from core businesses. Lafley has a model for innovating in a big company:

1. One-on-one consumer research – marketers must spend lots of time with consumers in their homes, watching the ways they wear their clothes and asking them about their habits and frustration.

2. Get employees to exchange ideas – employees from nine countries post problems on an internal website. CEO evaluates the ideas of employees and presents the best findings each year.

3. Stop testing so much – One can not but agree with fact that putting out a product can't be without test- marketing. But it’s necessary to reduce product launch time from laboratory to roll-out.

4. Give designers more power – it’s necessary that designers would be involved in all aspects of product development.

5. Know what not to do – according to Lafley, it’s impossible to offer fat bonuses for innovation or to hire stars from outside. Managers who fail to share ideas simply do not get promoted.

U
n
it 14.
C
o
mpeti
ti
on

1. What are the most common competition practices?

2. What is Michael Porter’s model of competitors’ types?

3. Why is Nokia no longer the leader in the mobile phone market?

_{4. Why are some products unsuitable for foreign markets?}


1. W
h
a
t are the mo
s
t com
m
on competi
t
ion p
r
actices?

Competition between companies can be tough, aggressive, even ferocious or cut-throat. Firms may

accuse each other of using unfair methods such as dumping, where a competitor (usually foreign) sells

products for less than what they cost to produce, or at less than the price charged in the home market. Firms dump in order to build market share and recoup their losses later when, having established
20

themselves to benefit from economies of scale (producing in larger quantities so that the cost of each unit goes down), they are able to charge market prices with a healthy profit margin on each unit sold. Competition can also be gentlemanly or even cosy, so cosy that companies may be accused of forming a cartel to agree on prices in a price fixing arrangement. They may then be investigated by a government department that looks into unfair trading practices.

Competitors may also enter into other perfectly legitimate forms of cooperation, such as joint ventures for specific projects. They may even talk about strategic alliances. But like mergers, these can go awry and lead to recrimination between the erstwhile partners.
2. W
h
a
t is Michael Po
r
t
e
r
’s model of c
o
mpetitors’ types?

Michael Porter's model containing:

• cost-leaders, who are low-cost producers with a broad scope and cost advantage, appealing to many

industry segments (many groups of buyers with different needs)

• differentiators, who appeal to buyers who are looking for particular product attributes

(characteristics) and position themselves as the most able to meet those needs

• focussers, who concentrate on one particular segment and try to find competitive advantage by

satisfying the needs of buyers in that segment better than anyone else. Focussers are, in effect, nichers. These are the available choices, according to Porter, that a commercial organisation has if it wants to compete effectively, and not get 'stuck in the middle'.


3. Why is No
k
ia no longer the l
e
ad
e
r in t
h
e mobi
l
e phone mar
k
et?

Although Nokia's share of the global market for mobile handsets is more than competitor’s share, but

Samsung has momentum. Samsung's camera phones, with twisting flip-up screens that allow users to take, send and display photos quickly and easily, are hot; Nokia's are not. The high end of the market - phones that retail for $300 or more in the US - is no longer Nokia's. Samsung makes the expensive camera phone that a young consumer wants to have. Design should be Nokia's strength, since it overtook Motorola by turning handsets into handsome and desirable consumer goods, rather than technological objects. But in its recent models, Nokia forgot the first rule of modernist design - that form follows function. Instead, it has placed most emphasis on making its handsets colourful and zappy, with snap-on covers. And of course the main Nokia’s disadvantage is size of handsets. It is rather big in comparison with Samsung.

Samsung has main advantage – it is the fact that it is willing to pay high prices for development new

electronic devices.
4
. Wh
y
a
r
e s
o
m
e p
r
oduct
s un
s
uitabl
e f
o
r
f
o
r
eig
n mar
k
ets?

Nowadays many new high tech products appear on world market. Producers of these products try to

distribute them into different countries in order to increase profits but they do not take foreign conditions

and traditions into account. For example Japanese robot-toys. In the Russian market such toys haven’t great demand. Maybe because of rather high price. But also maybe because of Russian mentality, habits

_{– we like to communicate not with robot pets but with alive pets.}


21