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rules, plus fast pumps, quick access and payment. Simplicity Seekers - loyal, caring and sensitive, frustrated with complexities of everyday life. Want simple easy transactions. Safety Firsters - control orientated, confident people, like order and comfort of the familiar. Higher value on relationships and go out of their way to stations that make them feel comfortable. Prefer to stay close to cars.

7 ‘The common thread was that they all wanted a faster and easier service than anything already available,’ said Dave, ‘so the study ended and the launch began.’

8 The field organisation and Shell Oil retailers combined forces to determine how to eliminate the little hassles that customers sometimes face, such as improved equipment and clearer instructions at the pump. New innovations are currently being test marketed. A new advertising campaign was launched and a sophisticated measurement system introduced to monitor satisfaction, behavior and perception of the brand. ‘Fueling a car is a necessity of life and I believe we are ahead of the game - but we won't allow ourselves to stop and be caught up.’

2. Read the text again and number the different stages in the research project in the correct order.

a They analysed the results, which showed that there were 10 different consumer segments.

B Focus groups studied the 10 segments.

c Shell Oil's marketing team decided to differentiate the Shell brand from the other brands on the market.

d Shell launched a new advertising campaign.

e They interviewed 55,000 people about their attitudes to driving and cars in general.

f Work started on improving products and services.

g They carried out a detailed study of the market over 18 months. h Three groups were chosen as the target markets.

3. Find words and expressions in the text relating to ‘The Four Ps’ of the Shell marketing mix.

Example: Product - good quality

4. Match the words from the text with their corresponding

1. to exceed (para 1)

a) a part or section

2. a mission (para 1)

b) a group of interested people

3. an initiative (para 2)

c) an important new plan with a particular

4. a segment (para 2)

aim

5. an audience (para 4)

d) an assignment or task

6. a profile (para 5)

e) to find out / to discover

7. to determine (para 8)

f) to check at regular intervals

8. to monitor (para 8)

g) to be more than

 

h) a description of the characteristics of

someone or something

5. a) Find words and expressions in the text which correspond to the following definitions.

Many different types of consumer who buy the same product (para 1) fragmented market

The most advanced and up to date (para 2) c_______ e_____

Conclusions people reach about which products to purchase (para 4) b_____ d_____

An informal discussion group used for market research (para 5) f_____ g_____

A shared characteristic (para 7) c_____ t_____

A method of evaluation (para 8) m_____ s_____

b) Complete the passage using words from Vocabulary 4 and 5 a). Change the form of the words where necessary.

As more and more industries are making products specifically adapted to particular 1 ……… of the market, market researchers are being asked to conduct studies and to compile more detailed 2……… of consumer groups. Broad classifications based on sex, age and social class are not sufficient for companies operating in highly competitive and 3 ……… . Questionnaires are carefully designed to 4 ……… the exact needs and demands of consumers as well as establishing what affects consumer 5 ……… when they choose one product instead of another. Advertising campaigns can then be targeted to appeal to the identified 6 ……… . Finally, marketing people must 7 ……… the success of the campaign and modify it if necessary.

VOCABULARY

1. You are attending a marketing training seminar in English. The following practice is based upon your notes from the workshop. Underline the appropriate idea to complete this basic description of marketing.

In the past marketing was (customer-driven/product-driven) where business emphasized the product first and (considered/confronted) the customer last. Nowadays the reverse strategy is the key to successful marketing. Products and services are created (to mean/to meet) customer needs. Moreover, marketing must make use of its four basic components to be effective:

Sales

Promotion

Advertising

(Public Relations/Possible Requirements) or PR

In each aspect marketing aims for a solid customer base and increased (turnaround /turnover). Improving marketing performance is essential to be ahead of the competition/ concentration).

2. Circle the words that can be combined with ‘market’.

overseas

service

leader

survey

upscale

country

developing

competence

potential

business

share

 

Write the possible combinations, before or after ‘market’.

....................... market.....................

....................... market.....................

....................... market.....................

....................... market.....................

....................... market.....................

....................... market.....................

....................... market.....................

3. Match the marketing components to the right description.

The ‘Marketing Mix’ consists of the 4 P’s:

* Product

where the customers can buy it

* Promotion

one that meets the customer need

* Price

to encourage the customer to buy it

* Place

one that makes company profit and keeps the

 

customer satisfied

4. Place the following words and phrases under the right marketing heading. Some of the ideas might belong to more than one category.

media

to announce

 

press release

special offer

billboards

discounts

banners to call on (customers)

to sponsor free samples

reputation

coupons

campaign

to display

negotiation

 

internet

follow-up

to bargain

press conference

 

to endorse

commercials

SALES

PROMOTION

ADVERTISING

PR

…………..…………….. ………………… ……………..

…………. ………………

………………… ……………..

………….………………. ………………… ……………..

………….………………. ………………… ……………..

………….………………. ………………… ……………..

Complete these sentences to describe the marketing categories.

The sales department handles _______________________________________.

Promotion involves_______________________________________________.

Advertising includes______________________________________________.

PR deals with ___________________________________________________.

5. Finish the sentence pairs/ groups using the noun form of the highlighted corresponding verb.

*We will announce our marketing plans at the meeting tomorrow.

We will make an _____________________ about our marketing plans at the meeting tomorrow.

*He wants to bargain with the customer.

He wants to offer a ______________ to the customer.

*Rolex sponsors the Wimbledon Tennis Tournament. Rolex is a ____________ of Wimbledon.

Every year Rolex gives its _________________ to Wimbledon.

*Shops can display new products.

Shops can set up special ____________ for new products.

*Famous sports stars often endorse sports clothing and accessories.

________________ from famous sports stars helps to sell sports clothing and accessories.

Project work: Below is a list of links to top companies who have a variety of brands making up their business. Choose five products and services (ensure that at least two of your choices are services) and identify the relevance of the 4 Ps to the product/service of your choice.

Unilever - range of brands covering foodstuffs, perfumes, household cleaners, ice creams, etc. http://www.unilever.co.uk/ourbrands/

Nestlй - again, a range of brands covering food, cereals, confectionary, drinks and dairy products http://www.nestle.com/Brands/Brands.htm

The Mars directory http://www.mars.com/global/Who+We+Are/Who+We+Are.htm

A Mercedes dealership network http://www.mercedes-enzofcanterbury.co.uk/ Dell computer products http://www1.euro.dell.com/content/products/compare.aspx/dimen? c=uk&l=en&s=dhs

NatWest - banks provide 'products' which also double up as services in most cases! http://www.natwest.com/personal.ashx

South West Trains - an important service for thousands of people every day! http://www.southwesttrains.co.uk/SWTrains

BUPA private health care service http://www.bupa.co.uk/

These are just examples - you can of course select products or services of your own choosing.

Example: Stella Artois

Brief description - premium grade, relatively strong lager.

-Price is relatively high compared to other brands, suggesting it is not as important in the mix whereas the product itself is important - it relies on a reputation of quality to justify the higher price.

-Place is vital - the more places it is available, the higher sales are likely to be. The combination of bottles, cans, draught, etc. means it has a wider availability.

-This suggests, with the increased methods of selling recently introduced, that process is becoming more important.

-Promotion is high profile - using ‘upmarket’ events such as the summer tennis championships, sophisticated adverts highlighting its quality - emphasised by the phrase ‘reassuringly expensive’.

-People and physical environment play little part in the overall marketing mix of the product.

Part 8

COMPETITION AND COMPETITIVENESS

Definition of competition

1. Give the definition to the following words: to compete, competition, competitor, and competitiveness. Compare your definitions with definitions given by your group mates

VOCABULARY THROUGH THE CONTEXT

Companies and markets

You can talk about the people or organizations who buy particular goods or services as the market for them, as in the ‘car market’, ‘the market for financial services’, etc. Buyers and sellers of particular goods or services in a place, or those that might buy them, form a market.

If a company:

enters/penetrates

it starts selling there for the first time.

 

 

abandons/ gets out of/

it stops selling there.

leaves

 

 

 

dominates a market

it is the most important company selling there.

 

 

corners/ monopolizes

it is the only company selling there.

 

 

drives another company

it makes the other company leave the market,

out of

perhaps because it can no longer compete.

More word combinations with ‘market’. 'Market' is often used in these combinations:

growth segment

Market segmentation share

leader

Competitors and competition

Companies or products in the same market are competitors or rivals. Competitors compete with each other to sell more, be more successful, etc. The most important companies in a particular market are often referred to as key players.

Competition describes the activity of trying to sell more and be more successful. When competition is strong, you can say that it is intense, stiff, fierce or tough. If not, it may be described as low-key.

The competition refers to all the products, businesses, etc. competing in a particular situation, seen as a group.

‘Competing’ and ‘Competitive’

Competing and Competitive are adjectives related to competition. Two companies may produce competing products – products that compete with each other.

A competitive product is one that has real and specific benefits in relation to others of the same type.

position – where a company is in relation to its competitors in terms of size, growth, etc.

pressure – the force that one competitor can bring to bear in relations to another

prices – prices that are similar to or lower than those for similar products

Competitive threat – something that one competitor may do to weaken another’s position

advantage edge – superior products, performances, etc. that competitor can offer in relation to others

strategy – a plan or plans for success in relation to competitors, and the study of this in business schools

bids – price offers for a company in a takeover Competing offerings – products from different companies

suppliers – companies offering similar products or services technologies – technical ways of doing something

1.Use the correct form of the words in brackets to complete the sentences.

1European films do not export well: European movies barely ………

(abandon/corner/penetrate) the US market.

2 In the 1970s, Kodak ……… (corner/enter/leave) the instant photography market, until then ……… (abandon/dominate/penetrate) by Polaroid.

3 The Hunt brothers tried to fix silver prices and to……… (corner/enter/leave) the silver market, ……… (enter/drive out/monopolize) all competitors.

4 In the 1940s, MGM ……… (abandon/get out of/monopolize) the market on film musicals. But by the late 1950s, Warner Bros had also started buying film rights to musicals.

2.Replace the underlined expressions with expressions from vocabulary. You may need to add a verb in the correct form.

I’m Kalil and I'm marketing manager for CrazyCola in a country called Newmarket. In this market, we (1) sell more than any other cola. In fact, we

(2) have 55 per cent of the market. (3) Sales are increasing at seven to eight per cent per year. There are two main (4) groups of users: those who drink it in cafes, bars and restaurants, and those who buy it to drink at home. Of course, many users belong to both groups, but this is our (5) way of dividing our consumers.

3. a) Read this description of a language training market. Answer the questions.

In Paris, 500 organizations offer language training to companies. However, 90 per cent of sales are made by the top five language training organizations. The market is not growing in size overall. Organization A has 35 per cent of the market, and faces stiff competition from B, which has about 25 per cent of the market, and

from C, D and E, who each have 10 per cent, but who are trying to grow by charging less for their courses.

1.How many competitors are there in this market?

2.Is competition in the market strong?

3.Who is the market leader?

4.Who are the two key players?

5.Who mainly makes up the competition, from the market leader’s point of view?

6.If one competitor increases its market share, can the others keep their market share at the same level?

4. Match the two parts of these extracts containing expressions with ‘competing’.

1 What is to stop supposedly competing

2 Commtouch can position itself in the middle of the competing 3 Diamond Fields Resources Inc was the target of competing

4 The software is 25 per cent cheaper than competing

a bids from mining giants Inco Ltd and Falconbridge Ltd. b suppliers from secretly agreeing to keep prices high?

c offerings, with prices ranging from $300 to $450.

d technologies by offering ‘unified messaging solutions’

5. Complete sentences with words that can follow ‘competitive’

1.He was criticized for being Eurocentric and failing to pay sufficient attention to the competitive …………… from South east Asia.

2.Business can sustain their performances over the long term by having some competitive …………… to keep them ahead. (2 possibilities)

3.For the money-conscious consumer, alternative retail outlets can offer organic food at more competitive …………… .

4.First Chicago will enhance its competitive ………….. and boost its financial growth through the transaction, which is expected to add to earnings immediately.

5.Mall stores are under more competitive ……… than at any time in their 40year history, with new discounters and superstores increasingly moving in alongside traditional malls.

6.Decades of management theorizing around the world have produced mountains of books, many of which promise to deliver the secrets of success. But there is no consensus on competitive …………….. .

6. a) Choose the correct adjective from each pair to make word partnerships with ‘competition’.

strong/hard

fierce/aggressive

dirty/unfair competition heavy/tough

intense/deep

b) Match the verbs with the prepositions (where necessary) to make phrases with ‘competition’.

respond

 

 

cope

up to

competition

face

with

ignore

to

 

welcome

——

 

adapt

 

 

avoid

 

 

READING

1. There are different type of market players. We can usually find four main ones. Match a type of a market player to its definition.

1 market leader is

 

a) with the second largest market share

2 market challenger is

a company

b) with the largest market share

3 market follower is

or product

c) that focuses on a small segment of the

4 nicher is

 

market

 

 

d) that is not a threat to the leader

Operating in the market companies choose different marketing strategies. Read the text and

summarise the key points of these strategies,

point out the factors influencing the choice of a strategy.

Marketing Strategies

A company’s marketing strategies - sets of principles designed to achieve longterm objectives - obviously depend on its size and position in the market. Other determining factors are the extent of the company’s resources, the strategies of its competitors, the behaviour of the consumers in the target market, the stage in the product life-cycle of the products it markets, and the overall macro-economic environment.

The aim of a market leader is obviously to remain the leader. The best way to achieve this is to increase market share even further. If this is not possible, the leader will at least attempt to protect its current market share. A good idea is to try to find ways to increase the total market. This will benefit everyone in the field,

but the market leader more than its competitors. A market can be increased by finding new users for a product, by stimulating more usage of a product or by exploiting new uses which can sometimes be uncovered by carrying out market research with existing customers.

To protect a market share, a company can innovate in products, customer services, distribution channels, cost reductions, and so on; it can extend and stretch its product lines to leave less room for competitors; and it can confront competitors directly in expensive sales promotion campaigns.

Market challengers can either attempt to attack the leader, or to increase their market share by attacking various market followers. If they choose to attack the leader, market challengers can use most of the strategies also available to market leaders: product innovation, price reductions, cheaper or higher quality versions, improved services, distribution channel innovations, manufacturing cost reduction, intensive advertising, and so on.

Market followers are in a difficult position. They are usually the favourite target of market challengers. They can reduce prices, improve products or services' and so on, but the market leader and challenger will usually be able to retaliate successfully. A market follower that takes on a larger company in a price war is certain to lose, given its lesser resources.

In many markets, market followers fall in the middle of a V-shaped curve relating market share and profitability. Small companies focusing on specialised narrow segments can make big profits. So can the market leader, with a high market share and economies of scale. In between come the less profitable market followers, which are too big to focus on niches, but too small to benefit from economies of scale.

One possibility for followers is to imitate the leaders’ products. The innovator has borne the cost of developing the new product, distributing it, and making the market aware of its existence. The follower can clone this product (copy it completely), depending on patents and so on, or improve, adapt or differentiate it. Whatever happens, followers have to keep their manufacturing costs low and the quality of their products and services high.

Small companies that do not establish their own niche - a segment of a segment - are in a vulnerable position. If their product does not have a ‘unique selling proposition,’ there is no reason for anyone to buy it. Consequently, a good strategy is to concentrate on a niche that is large enough to be profitable and that is likely to grow, that doesn’t, seem to interest the leader, and which the firm can serve effectively. The niche could be a specialised product, a particular group of end-users, a geographical region, the top end of a market, and so on. Of course unless a nicher builds up immense-customer goodwill, it is vulnerable to an attack by the market leader or another larger company. Consequently, multiple niching — developing a position in two or more niches - is a much safer strategy.

2. Look through the text again and decide if the following statements are true or false.