B.

Vocabulary
Match the terms with their definition:

1. Distribution channel A. All the companies or individuals involved in

2. To launch a product moving a particular good or service from the
3. Market opportunities producer to the consumer
4. Market research B. An idea for a new product, which is tested with
5. Market segmentation target consumers before the actual product is
6. Packaging developed
7. Points of sale C. Attributes or characteristics of a product:
8. Product concept quality, price, reliability, etc.
9. Product feature D. Dividing a market into instinct group of buyers
10. Sales representative who have different requirements or buying habit
E. Places where goods are sold to the public-
shops, stores, kioshks, market, stalls, etc.
F. Possibilities of filling unsatisfied needs in
sectors in which a company can profitably
produce goods or services

G. Someone who contacts existing and potential

customers and tries to persuade them to buy
goods or services
H. Collecting, analysing and reporting data
relevant to a specific market situation ( such
as a proposed new product)
I. To intro duce a new product onto the market
J. Wrappers and containers in which product
are sold

Write your answer here:

1. A 2. I 3. F 4. H 5. D

6. J 7. E 8. B 9. C 10. G
Exercise 1: Categorize the following aspects of marketing according to the well-
known “4P’s” classification of the marketing mix – product, price, promotion and
place.
Adverising After-sale service Brand name Cash discount
Commercials Credit terms Characteristics Distribution
Franchising Free sample going-rate channels
Inventory Line-filling List price Guarantee
Market coverage Market Market skimming Mailings
Optional features penetration Payment period Media plan
Point of sales Packaging Prestige pricing Personal selling
Public relations Poster Quality Production costs
retailing Publicity Sponsorship Quantity discounts
transportation Sizes Warehousing Style
Vending machines Wholesaling
Product:Optional features, after-sale service, line – filling, packaging, brand
name, sizes, characteristics, quality, guarantee, style.

Price:Inventory, credit terms, market penetrations, going – rate, list price,

market skimming, payment period, prestige pricing, cash discount, production
costs, quantity discounts.

Promotion:Advertising, commercials, franchising, public relations, free sample,

poster, publicity, sponsorship, mailing, media plan, personal selling.

Place:Point of sales, transportation, rending machines, ware housing

distribution channels, wholesaling.

Exercise 2: Complete the eight sentences below, by adding an example from the
second box:
1. Conversional marketing is the difficult task of reversing negative demand, eg. for
dental work, or hiring disable people.
2. Stimulational marketing is necessary where there’s no demand, which often
happens with new products and services.
 3. Developmental marketing involves developing a product or service for which
there is clearly a talent demand, eg. a non-polluting and fuel-efficient car.
4. Remarketing involves revitalizing falling demand, in the face of competition or
changing tastes.
5. Synchromarketing involves altering the times pattern of irregular demand, eg. for
public transport between rush hours, or for ski resorts in the summer.
6. Maintenance marketing is a matter of retaining a current (may be full) level of
demand, eg. for churches, inner city areas, or ageing film stars.
7. Demarketing is the attempt (by governments rather than private businesses) to
reduce overfull demand, permanently or temporarily, eg. for some roads and
bridges during rush hours.
8. Countermarkeing is the attempt to destroy unwholesome demand for products that
are considered undesirable, eg. cigarettes, drugs, handguns, or extremist political
parties.
a. eg. a non-polluting and fuel-efficient car.
b. eg. cigarettes, drugs, handguns, or extremist political parties.
c. eg. for churches, inner city areas, or ageing film stars.
d. eg. for some roads and bridges during rush hours.
e. eg. for public transport between rush hours, or for ski resorts in the summer.
f. eg. for dental work, or hiring disable people.
g. in the face of competition or changing tastes.
h. which often happens with new products and services.

Write your answer here:

1. f 2.h 3.a 4.g 5.e 6.c 7.d 8.b

Exercise 3: Match up these marketing actions with the eight tasks described
above:
i. Alter the pattern of demand through flexible pricing, promotion, and other
incentives.

j. Connect the benefits of the product with people’s needs and interests.

k. Find new target markets, change product features, develop more effective
communication.
 l. Find out why people dislike the product, and redesign it, lower prices, and use more
positive promotion.

m. Increase prices, reduce availability, make people scared.

n. Keep up or improve quality and continually measure consumer satisfaction.

o. Measure the size of the potential market and develop the goods and services that
will satisfy it.

p. Raise prices, reduce promotion and the level of service.

Write your answer here:

i. 5 j. 2 k. 4 l. 1 m. 9 n. 6 o. 3 p. 7

Exercise 4: Complete the text with the words in the box:

Advertising budgets consumer tastes differentiate products

Early adopters making a loss reaches saturation
Similar offerings withdrawn from the market

The classic product life cycle is Introduction, Growth, Maturity and Decline. In
the introduction stage the product is promoted to create awareness. It has low sales and
will still be (1). making a loss. If the product has few competitors, a skimming price
strategy can be used (a high price for (2) Early adopters which is then gradually lowered).
In the Growth phase sales are rising rapidly and profits are high. However, competitors
are attracted to the market with (3)Similar offerings. The market is characterized by
alliances, joint ventures and takeovers. (4). Advertising budgets are large and focus on
building the brand.
In the Maturity phase sales growth slows and then stabilizes. Producers attempt to
(5).. differentiate products and brands are key to this. Price wars and competition occur as
the market (6).. reaches saturation. In the Decline phase there is a downturn in the
market. The product is starting to look old-fashioned or (7) consumer tastes have
changed. There is intense price-cutting and many products are (8) withdrawn from the
market.
Exercise 5: Match up the remarks below with the names of different pricing
strategies in the box:
 1. market penetration
pricing =
2. market skimming =
3. current –revenue pricing
=
4. loss-leader pricing =
5. mark-up or cost-plus
pricing =
6. going-rate pricing =
7. demand- deferential
pricing ( or price
discrimination) =
8. perceived-value pricing =

a. Firstly we need cash, and secondly, we don’t think the product will last very
long – it’s really just a gimmick – so we’re trying to maximize our sales
income now.
b. Like all supermarkets, we offer half a dozen or more different items at a really
low price each week. We lose on those, but customers come in and buy lots of
other stuff as well.
c. Since our product is indistinguishable from those of all our competitors, and
we’ve only got a tiny park of the market, we charge the same as the rest of
them.
d. They just worked out the unit cost and added a percentage, without even
considering demand elasticity or anything like that.
e. We charge an extremely high price because we know people will pay it. Our
brand name is so famous for quality – we can make huge profits.
f. We charge lots of different prices for what is really almost the same thing. Of
course, in First Class you get better food, and in Economy there’s hardly any
legroom, but it’s still a flight from A to B
g. We decided to launch the product at a very low price, almost at direct cost,
hoping to get a big market share. Then we can make profits later because of
economies of scale.
h. We’re going to charge a really high price to start with. We can always lower it
later to reach price-elastic market segments.

1 G 2 H 3 A 4 B 5 D 6 C 7 F 8 E
Exercise 6: Which of these two-word nouns refers to?
1. A basic price before discounts and special offers are made? List price
2. A price at which retailers buy goods? Wholesale price
3. A price recorded in a company’s accounts? Historical price
4. The government’s measure of inflation? Price index
5. The price at which a producer makes no profit? Cost price
6. The relationship between a product’s price and the quantity bought? Price
Elasticity
Which two of these two- word nouns refer to
7. A price-limit imposed by government? Price control + Price freeze
8. Arrangements between competitors not to lower prices? Price fixing/
maintenance