- •Череповецкий государственный университет
- •Кафедра экономики
- •Современный бизнес
- •Contents
- •Введение
- •Unit 1. The effects of demand and supply on business
- •1.1. Markets
- •Test Questions
- •Case study ‘Understanding the Market’
- •1.2. The Operation of Markets
- •If social costs exceed social benefits, the decision to produce a good or service makes society worse off even if the producers make a profit.
- •If social costs are less than social benefits, the decision to produce a good or service will make society better off. Test Questions
- •Case study ‘Record Industry’
- •1.3. The Effects of Government Policy on Markets
- •Indirect taxes
- •Test Questions
- •Unit 2. The competitiveness of a firm
- •2.1. The Performance of an Industry
- •International Trade
- •International comparisons
- •2.2. Government Action to Improve Competitiveness
- •2.3. Government Action and International Trade
- •2.4. Business Competitive Strategies
- •Test questions
- •Case Study
- •Unit 3. Business Organisations
- •3.1. Types of Business Organization
- •3.2. Organizational Structures
- •3.3. Factors Influencing the Organisational Structure
- •Internal factors
- •Test Questions
- •Case Study ‘Business Organisation & Structure’
- •Unit 4. Administrative systems
- •4.1. The Purpose of Administrative System
- •4.2. Administration Functions in Business
- •4.3. Evaluating Administrative Systems
- •4.4. Information Technology in Administration
- •Test Questions
- •Case Study ‘Satellite Supplies’
- •Unit 5. Communications Systems
- •5.1. Why Do Businesses Need Communications System?
- •5.2. The Objectives of Communication
- •5.3. Verbal Communication
- •Internal communications
- •5.5. Evaluating Communication Systems in Business
- •Test Questions
- •Case Study ‘Can You Communicate?’
- •Unit 6. Information Processing
- •6.1. The Purposes of Information Processing
- •6.2. Types of Information Processing Systems
- •Information Technology: positive and negative effects
- •6.3. Evaluating Information Processing Systems
- •Test Questions
- •Case Study “Information Technologies in Business”
- •Unit 7. The principles and functions of marketing
- •7.1. What is Marketing?
- •7.2. The Objectives of Marketing
- •7.3. Implementing the Marketing Mix
- •Test Questions
- •Unit 8. Market Research
- •8.1. What is Market Research?
- •8.2. Sources of Marketing Information
- •Information requirements
- •Internal sources
- •8.3. Primary Research
- •8.4. Market Changes
- •Information on sales
- •Test Questions
- •Case Study ‘Sun Rush’
- •4M Brits shrug off gloom in sun rush
- •Unit 9. Marketing Communications
- •9.1. Targeting an Audience
- •9.2. How to Reach a Target Audience
- •9.3. Product Performance
- •9.4. Guidelines and Controls on Marketing Communications
- •Test Questions
- •Case Study ‘Marketing Communication’
- •Unit 10. Customer Service and Sales Methods
- •10.1. ‘The Customer Is Always Right’
- •10.2. Placing the Product – Distribution
- •Indirect distribution via intermediaries
- •10.3. Closing the Sale
- •Test Questions
- •Case Study ‘Company Handbook’
- •Unit 11. Production
- •11.1. What is Production?
- •11.2. Just in Time Production and Total Quality Management
- •11.3. Improving the Productivity of Labour
- •11.4. Health and Safety at Work
- •11.5. Reducing Pollution from Production
- •In the working environment
- •In the natural environment
- •Test Questions
- •Case Study ‘Production and Productivity Consulting’
- •11.6. The Costs of Production
- •Identifying business costs
- •Indirect costs
- •Insurance
- •Variable costs
- •Test Questions
- •Case study ‘Waterhouse Waffles’
- •Unit 12. Pricing decisions and strategies
- •12.1. The Pricing Decision
- •12.2. Cost-Based Pricing
- •12.3. Market-Based Pricing
- •12.4. Competition-Based Pricing
- •12.5. Problems with Demand- and Competition-Based Pricing
- •Test Questions
- •Case Study ‘What Price Promotion?’
- •Unit 13. Monitoring business performance
- •13.1. Accounting for Business Control
- •13.2. Budgetary Control
- •Variance analysis
- •13.3. Ratio analysis
- •Test Questions
- •Case Study ‘Business Performance’
- •Unit 14. Preparing a business plan
- •14.1. What Is a Business Plan?
- •14.2. The Purposes of a Business Plan
- •14.3. Legal and Insurance Implications
- •Insurance
- •14.4. Business Resources
- •14.5. Potential Support for a Business Plan
- •Some review questions
- •Unit 15. Producing a Business Plan
- •15.1. Business Objectives and Timescales
- •15.2. The Marketing Plan
- •15.3. The Production Plan
- •15.4. The Financial Plan
- •15.5. Conclusion
- •Some Review Questions
- •Case Study ‘Business Plan’
9.4. Guidelines and Controls on Marketing Communications
Marketing ethics
Ethics are the values, or moral code, of individuals and society, which govern behaviour and business conduct. In marketing there can be a temptation to make exaggerated or misleading claims about products and business practices in order to boost sales and make larger profits. Sometimes profits may be more important to a firm than ethics.
Standards and codes of practice
Keen to assure consumers of their concern for product quality and ethical marketing, some industries in the UK have drawn up voluntary codes of practice which member firms are encouraged to follow. In many ways these are useful additions to the marketing strategies of firms.
British Standards Institution (BSI): the BSI sets quality and safety standards for a wide range of products. Products meeting the BSI standards are awarded the kitemark to indicate that they have reached the necessary standards. Products awarded the kitemark will have a competitive advantage over rival products which fail to display the symbol to the consumer.
Professional and trade associations: Members of trades often set up professional associations in order to protect their interests and improve their reputation with consumers. Examples include the Federation of Master Builders and Association of British Travel Agents (ABTA). These organisations usually specify a code of practice governing the behaviour of members, and consumers can appeal to the associations if they feel that a particular code of practice has been breached.
Independent Television Commission (ITC): the ITC regulates advertisements appearing on television and cable and has its own Code of Advertising Standards and Practice. Certain products and services, including cigarettes, spirits, private investigation agencies, and gambling, may not be advertised on TV. There are also strict rules about advertising aimed at children and about the use of child actors or models in adverts.
Advertising Standards Authority (ASA): the ASA was set up in 1962 to monitor the standard of advertisements in the UK. It covers all advertisements in newspapers, magazines, posters, direct marketing sales promotions, cinema, video cassettes, and Teletext. The ASA safeguards the consumer by ensuring that the rules contained in the British Code of Advertising Practice are followed by any organisation that prepares and publishes advertisements.
The essence of good advertising
The British Code of Advertising Practice states that all advertisements should be:
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Legal, decent, honest and truthful.
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Prepared with a sense of responsibility to the consumer and to society.
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In line with the principles of fair competition generally accepted in business.
As well as receiving and investigating complaints from consumers, the ASA advises advertisers, agencies, and publishers how to avoid misleading advertising. If an advertisement is found to be misleading or offensive, the ASA will act to have it changed or withdrawn. Failure to comply with its rulings may lead to adverse publicity in the ASA’s monthly report of judgements.
The work of the ASA is financed by a levy of 0.1% on UK advertising expenditures. One criticism, therefore, of the ASA is that it is funded by the very people it is attempting to police, namely the advertising industry.
Advertising on radio is regulated by the Radio Authority.