- •1. Four basic factors necessary for any business. Give the arguments for (or against) the statement that business is essential for all economies.
- •2. Advantages and risks of entrepreneurship. How would you initiate the business if you were an entrepreneur?
- •3. Similarities and differences between a sole proprietor and a partnership.
- •4. Favorable and unfavorable points of a corporation. Which of the three businesses would you prefer to work for?
- •5. The difference between intermittent and continuous production.
- •6. Which method of production would you choose for a) custom-made goods and b) standard goods? What are the most important factors in these methods?
- •7. What two methods do employers use to select applicants for an interview? Suppose you are to employ a manager for your firm. Which method would you use?
- •8. The functions of the personnel department. Your first steps as the Head of the pd if you happen to be appointed to this post.
- •9. The general concept of marketing, its constituent parts. Types of markets.
- •10. Modern marketing – new principles.
- •11. The function of distribution from the view of a business manager. The role of a middleman in distribution.
- •12. The distribution system from the view of a customer. Different types of retail outlets.
- •13. The concept of promotion, its main activities. What type of advertising would you use for promoting a new kind of product your firm has just launched?
- •14. Personal selling – what way does it differ from other forms of promotion? Try to persuade a foreign firm to buy a new passenger airliner constructed in Russia.
- •15. Two types of sales promotion activities. What would you do to promote a new type of tea or coffee?
- •16. Interdependence of promotion and market situation. What would you do if the market turns out to be saturated with your goods?
- •17. Four aspects of international business. What is the main difference between Smith’s theory and Ricardo’s theory?
- •18. Discuss the activities of an exporting company and the reactions of the country importing products. How should the country protect its domestic industries?
- •19. The importance of computers. Your opinion about the advantages and disadvantages of using computers. The prospective ways of computer development.
- •20. Types of layout. Compare product layout and process layout.
14. Personal selling – what way does it differ from other forms of promotion? Try to persuade a foreign firm to buy a new passenger airliner constructed in Russia.
Three main promotional activities are advertising, personal selling, and sales promotion. Before speaking about personal selling, I would like to say few words about advertising and sales promotion, so that we could understand the differences between them.
Advertising is a nonpersonal presentation of goods, services, or ideas aimed at a mass audience. It is particularly suited for products that are widely distributed, such as convenience goods. There are several methods of advertising and several media, for example, television or newspaper advertisements. The purpose of advertising is to communicate information that convinces a customer to buy a specific product.
Sales promotion involves several activities. It is becoming increasingly important in the self-service environment where there is often no sales staff. Sales promotion activities are of two types: information and stimulation. Examples of information promotion are a pamphlet or booklet about the product, a demonstration, market research information telling about the nature of the customers, and so on. Stimulation promotion can be accomplished by the distribution of free samples, reduced price promotions, premiums, and coupons.
Personal selling involves a salesperson trying to convince customers directly to buy a product. Personal selling is very effective when there is a concentrated market for a product – in other words, the product is not for general consumption by the public. For example, airplanes are purchased, as usual, by airlines, not by the general public. There would be little point in advertising them on television. The same is true for many industrial goods. A sales representative usually gets a commission. If the product must be individually tailored to the purchaser, the salesperson must be able to sell exactly what the customer needs. Sales staff are also needed to demonstrate a product. This is particularly important for new products which may be unfamiliar to the customer. Finally, personal selling is necessary when there is negotiation about the price of the product, for example, when a trade-in is involved.
15. Two types of sales promotion activities. What would you do to promote a new type of tea or coffee?
Promotion is the aspect of marketing concerned with increasing sales. Promotion attempts to persuade and influence the customer’s attitude in various ways. Promotion attempts to increase demand for a product and thereby increase sales. Three main promotional activities are advertising, personal selling, and sales promotion.
Sales promotion involves several activities. It is becoming increasingly important in the self-service environment where there is often no sales staff. Sales promotion activities are of two types: information and stimulation. Examples of information promotion are a pamphlet or booklet about the product, a demonstration, market research information telling about the nature of the customers, and dealer training and managerial advice from producers. Stimulation promotion can be accomplished by the distribution of free samples, reduced price promotions, premiums, and coupons. A premium is something that the customer receives as a bonus when he purchases a product. For example, a customer purchasing a razor might receive a free package of razor blades. A coupon is a certificate which entitles the customer to purchase the product at a reduced price. Sales promotions also involve displays of the products. Displays can increase sales as well. A customer might make a decision to buy a particular product like a convenience item simply on the basis of a display that makes the item easy to see and reach.
To promote a new type of tea I would use advertising or sales promotion. I think, advertising, especially television advertising, is the most effective method of promotion for such product as tea, because tea is a consumer product, and advertising is particularly suited for products that are widely distributed, and besides, it reaches a large audience. Advertising would give the best results in the promotion of my tea, and sales would increase greatly, but this method is very expensive. So, if I hadn’t enough capital, I would use sales promotion both types - information and stimulation - to promote my tea, which would be effective too.