Concept Testing Involves Placing A Product In A Place Where Consumers Will Buy It.

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Marketing and management keynotes The various activities of the marketing process are referred to as the marketing mix
Marketing

MARKETING AND MANAGEMENT

Keynotes

The various activities of the marketing process are referred to as the marketing mix and traditionally include the four Ps:

product (characteristics and features)

price (appropriate market price)

promotion (communicating the product's benefits)

place (distribution of the product in markets).

In order to gain a competitive advantage over rivals, companies create brands that represent aspirations and a desirable image of life that the customer would like to identify with.

What is marketing?

Marketing is in many ways the central activity in business management. In commercial organizations, marketing is 'everybody's business.'

Marketing is the term given to all the different activities intended to make and attract a profitable demand for a product. This involves:

identifying consumer needs and wants in order to develop the product
setting the price
deciding on the best place to sell the product
deciding on how best to promote the product

These four factors are often referred to as ' The four Ps' . These are special techniques used to market a brand.

Product (or service): what you sell, and the variety or range of product you sell. This includes the quality (how good it is), branding, and reputation (the opinion the consumers have) of the product. For a service, support for the client after the purchase is important. For example, travel insurance is often sold with access to a telephone helpline in case of emergency.

Price: how much the product or service costs.

Place: where you sell the product or service. This means the location of your shop, or outlet, or the accessibility of your service – how easy it is to access.

Promotion: how you tell consumers about the product or service.

Today some marketers talk about an additional four Ps:

People: how your staff (or employees), are different from those in a competitor's organization, and how your clients are different from your competitor's clients.

Physical presence: how your shop or website looks.

Process: how your product is built and delivered, or how your service is sold, delivered and accessed.

Physical evidence: how your service becomes tangible.

For example, tickets, policies and brochures create something the customers can touch and hold.

Reading 1

1 Before you start: What is marketing? Why is it important?

2 Read the article about marketing. Match the questions (1-6) with the paragraphs (a-f).

1-How do I meet my objectives?

2-What do I want to achieve?

3-What is marketing?

4-How do I communicate my message?

5-How do I find out this information?

6-What do I need to know?

Marketing

Marketing is finding out about your customers and competitors so that you can provide the right product at the right price.
Think about people you want to sell to: your target market. Different products have different target markets, for example, Swatch and Rolex watches. Questions to ask are:

~Who are my customers- age, sex, income?

~What is the size of the market?

~Is it possible for the market to get bigger?

~What about product awareness ? - do people know about my company's products?

You find out this information through market research . Market research uses interviews to find out about people's attitudes and questionnaires to find out about their shopping habits.

When you know who your customers are and how big your market is the next step is to set your objectives. Do you want to increase sales? To increase market share ? Or to make your product different from the competition?

Next, think about your strategy for meeting your objectives. If your objective is to increase market share, you could:

~ find new customers by making your product more attractive

~ take customers from your competitors

~ persuade your customers to use more your product.

How will you make your strategy work? What message do you want to send? There are many types of promotion and it is important to choose the right one,e.g.

~ advertising on TV, in newspapers, etc.

~ direct marketing by post (mail shots)

~ telesales- selling to customers on the phone

~ point-of –sail material in shop- free samples of special offers.

Now you are ready to launch your product in the market. Good luck!

Vocabulary

3. Match the highlighted words and phrases in the text with the definitions (1-8).

ways of telling people about your products _________________

the part of the total market that buys your product _________________

3 knowledge of your company's products _________________

4 other companies that sell similar products _________________

5 finding out about the market _________________

6 to introduce a new product to the market _________________

7 the kind of people you are interested in selling to _________________

8 a plan you use in order to achieve something _________________

4. Look at the text again. Find and underline:

two market research methods
three marketing objectives.

Speaking

5. Work in pairs. Take turns to describe the marketing process. Use these phrases:

~First you have to… ~Then… ~Next… ~After that… ~Finally

6. Work in groups. Think of a product you would like to produce and sell. It could be a new kind of snack or sweet or a new range of make- up. You decide. Give your product a name.

7. You are ready to market your product. Draw up a marketing report. Then present your report. Use the plan:

1 Product name, 2- Target market

3 Strategy, 4- Promotion , 5- Ob- ! Do some research. Think of a product you

jectives. know or buy regularly, and about a compa-

ny which produces it. Who is their target

market? Objectives? Market share? Who

are their competitors? Tell the class.

II. GLOBAL BRANDS

1 Work with a partner. Look at the logos of some multinational companies. What is the name of each company? What does it produce or sell?

1 2 3

4 5 6 7

2 Discuss the questions:

-Are these brand names well known in your country?

-Have you ever bought or used any of their products?

-Do you buy particular brands of food or clothes? Why/ Why not?

-What are brands for?

9 _®

3 Answer the questions:

- What are your favourite brands of the following products: soft drinks, clothes, cars, shampoo?

- Why do you prefer these to other similar brands?

4 Now choose one of the products you use and consider the marketing mix for that brand. Express your opinion. Think and speak about the following:

product - what are the product's features?

place - where can you buy the product?

price - in comparison with similar products

promotion - where and how is it advertised?

Reading 2

1 Read the text which describes how Shell Oil developed a new brand image, and see if it mentions any of the market research methods. What techniques did Shell Oil use?

Hello to the good buys

A new marketing campaign promising hassle*-free and faster fuel buying for customers is under way in America. Suzanne Peck reports on the 18-month research project which involves Shell Oil researchers 'moving in' with their customers to test their buying habits.

Three years ago when Sam Morasca asked his wife what could be done to exceed her expectations when buying gasoline, her answer 'that I would never have to think about it any more' made him pause and think.

The marketing people from Shell Oil Products, of which Sam is vice-president, were desperately seeking ways to increase the business, and to come up with a strategy which would put them clearly ahead of their competition by differentiating the Shell Oil brands in the eyes of consumers. 'We are big business for Shell Oil, contributing US $7 bn of revenue, and the leading retailer of gasoline, but it is a fragmented market and the mission was to profitably expand the business,' said Sam.

Today, after 18 months of cutting edge research, Shell Oil is on track to make buying fuel at their 8,900 service stations clearly different with a new brand initiative. Its aim is to deliver through facilities, systems upgrades*, and new operating practices, a hassle-free fueling experience targeted at specific customer segments.

Over the past few years, the company has been developing detailed knowledge of consumer needs and attitudes, which formed the basis for the new brand initiative. Team leader Dave Yard, manager of Strategy and Planning-Marketing, picks up the story. 'We began with a customer segment study of 55,000 people, who we stopped in shopping malls in six cities for a 45-minute interview into their attitudes, especially regarding driving and cars. The result was that everyone wanted three things from a service station: competitive price, a nearby location and good quality fuel- something they all believed was already being delivered by the industry'.

This meant their buying decisions were influenced by other factors – some wanted full-serve outlets like the old days, some chose a service station depending on whether it looked safe or not. 'There were ten different segments with different needs, and we wanted a better understanding of each of these audiences.'

A focus group was set up for each segment; an anthropological study was carried out, which involved team members spending waking hours with people from each segment, watching them at home and accompanying them on shopping trips to see their buying habits; and a clinical psychologist was hired to create a psychological profile of each segment.

The study indicated that three groups, which comprised 30% of the driving public, should be targeted:

- Premium Speeders – outgoing, ambitious, competitive and detail oriented. They drive upmarket cars which make a statement* about them. Efficiency rules, plus fast pumps, quick access and payment.

- Simplicity Seekers – loyal, caring and sensitive, frustrated with complexities of everyday life want simple and easy transactions.

- Safety Firsters – control oriented, confident people, like order and comfort. Higher value on relationships and go out of their way* to stations that make them feel comfortable. Prefer to stay close to cars.

'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 lunch began.'

* an upgrade : making something work better, and do more

* to make a statement about somebody : to show what kind of person somebody is

* to go out of one's way : to make an effort

*hassle: problems

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.'

*fueling (up) (US )= filling up (GB)

1 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. ( 1 )

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. ( )

2 Match the words from the text with their corresponding definitions.

1 to exceed a a part or section

2 a mission b a group of interested people

3 an initiative c an important new plan with a particular aim

4 a segment d an assignment or task

5 an audience e to find out / to discover

6 a profile f to check at regular intervals

7 to determine g to be more than

8 to monitor h a description of the characteristics of someone or

something

3 Find words and expressions in the text which correspond to the following definitions.

1 Many different types of consumer who buy the same product

f ragmented m arket __

2 The most advanced and up to date

c_________ e________

3 Conclusions people reach about which products to purchase

b_________ d________

4 An informal discussion group used for market research

f_________ g________

5 A shared characteristic

c_________ t_________

6 A method of evaluation

m________ s_________

4 Complete the passage using words from exercises 2 and 3. Change the form of the words where necessary.

As more and more industries are marketing products specifically adapted to particular (1) segments 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 czn then be targeted to appeal to the identified (6)__________. Finally, marketing people must (7)___________ the success of the campaign and modify it if necessary.

Discussion

Consumers allowed Shell marketing people to 'move in with them' in order to observe their habits and routine. In pairs, discuss the questions.

What are the advantages of this type of research over more conventional data collecting processes?
Would you agree to participate (as a potential consumer) in this type of research? Why (not)?
Why do you think some people do accept?

4 People's attitudes to brands and marketing can be very different. Which of these statements do you agree with?

a) " Marketing transforms brands, making them stand for things that they just don't stand for. They don't deliver. " Naomi Klein author of No Logo: Taking Aim at the Brand Bullies.

b) " Brands provide us with beliefs. They define who we are." Wally Olins, a corporate identity consultant.

Reading 3

1 Read the text and decide which of the above views is closest to that of the author.

Money can buy you love

Are we being manipulated into buying brands?

1 BRANDS are accused of all sorts of evils, from threatening our health and destroying our environment to corrupting our children. Brands are so powerful, it is said, that they force us to look alike, eat alike and be alike.

2 This grim picture has been made popular by many recent anti- branding books. The argument has been most forcefully stated in Naomi Klein's book ' No Logo: Taking Aim at the Brand Bullies" . Its argument runs something like this. In the new global economy, brands represent a huge portion of the value of a company and, increasingly, its source of profits. So companies are switching from showcasing product features to marketing aspirations and the dream of a more exciting lifestyle.

3 Historically, building a brand was rather simple. A logo was a straightforward guarantee of quality and consistency, or it was a signal that a product was something new.

For that, consumers were prepared to pay a premium. Building a brand nationally required little more than an occasional advertisement on TV or radio stations showing how the product tasted better or drove faster. There was little regulation. It was easy for brands such as Coca-Cola, Kodak and Marlboro to become hugely powerful. Because shopping was still a local business and competition limited, a successful brand could maintain its lead and high prices for years. A strong brand acted as an effective barrier to entry for competing products.

4 Consumers are now bombarded with choices. They are also harder to reach. They are busier, more distracted and have more media to choose from. They are "commercials veterans" experiencing up to 1,5000 pitches a day. They are more cynical than ever about marketing and less responsive to messages to buy. Jonathan Bond and Richard Kirshenbaum, authors of " Under The Radar- Talking To Today's Cynical Consumers, say "some of the most cynical consumers are the young". Nearly half of all US college students have taken courses and "know the enemy". For them, 'shooting down advertising has become a kind of sport".

5 Marketers have to take some of the blame. While consumers have changed beyond recognition, marketing has not. Even in the USA, home to nine of the world's ten most valuable brands, it can be a shockingly old- fashioned business.

Marketing theory is still largely based on the days when Procter & Gamble's brand dominated in the USA, and its advertising agencies wrote the rules. Those rules focused on the product and where to sell it, not the customer. The new marketing approach is to develop a brand not a product- to sell a lifestyle or a personality, to appeal to emotions. (It is a much harder task than describing the features and benefits of a product.) However, brands of the future will have to stand for all of this and more. Not only will they need to be a stamp of product quality and a promise of a more desirable lifestyle but they will also have to project an image of the social responsibility.

2 Read the text again and match the headings a-f with paragraphs 1-5. There is one extra heading.

a Brands past ___________

b Advertising brands ___________

c The new consumers ___________

d Guilty ___________

e The case against brands ___________

f The importance of brands ___________

3 Read paragraph three again. Are the statements true or false?

1 It was relatively easy in the past to create a new brand.

2 Buying a branded product did not cost customers more.

3 Brands were developed for the international market.

4 The government closely controlled the markets at home.

5 Brands deterred other companies from entering the market.

Speaking

1 The author suggests young people no longer believe advertisement. Do you agree?

2 What does influence young people's buying decisions?

III. ADVERTISING

Keynotes

"Advertising isn't a science. It's persuasion.

And persuasion is an art."

William Bernbach, advertising executive

Advertise-to tell the public about a product

or a service in order to encourage people to buy or to use it. Advertisement – ( also informal ad or advert) a notice, picture or

film telling people about a product, job or service. Commercial – an advertisement

on the radio or on television.

1 Look at these different ways of advertising and answer the questions:

~ newspaper ad

~ direct mail

~ TV ad

~ website ad

~ poster

1 Which do you think is best for contacting specific customers?

2 Which do you think is the most expensive?

2 Which way (or ways) of advertising do you think is most suitable

for these situations:

1 a travel company selling last–minute trip

2 a car company launching a new model

3 a bank telling customers about a new kind

of bank account

4 a local politician who wants people to vote for him

Reading 4

1 Read the business advice information.

2 Match the questions ( 1 - 4) with the paragraphs ( a - d).

1 Who does it say? 3 Where will you advertise?

2 Why are you advertising? 4 Who is it for?

Choosing the right advertising for your product

or service is really important.

Here are some tips.

Understand your customers. Find out who they are ( their age, interests, lifestyle,

income, buying habits). Find out what is the best way to reach them. Which newspaper

do they read? Which TV programmes do they watch?

What do you want your advertising to achieve? What is its purpose? Do you want

to inform people about your product or service? Do you want them to buy it, or see

it in a different way? What is its USP (unique selling point)?

c) Keep your message simple and clear. Say just one thing, e.g. "This is better,"

"This makes life easier." Make sure you have a headline that is eye-catching. Make

Sure the text tells the customer everything you want them to know.

d) Choose a method that will reach your target market. It's no good having a brilliant

advertisement if the right people don't see it. It's useless to tell five million people

about something that only 100,000 people need to know: banks don't use TV to tell

existing customers about a new kind of account.

Speaking

1 Work in pairs. Read the TALKABOUT advertisement.

GO THE DISTANCE

Stay totally in touch with Motorola's TALKABOUT two-way radio. Wherever

your sport takes you – on the ski slopes, in the forest, on the water or in the

air – you're in constant contact with your friends or your guide for up to three

kilometres. It's simple to use, light and water resistant. And with hands-free

and voice activation, it works wherever you choose to take it.

Stay in touch with TALKABOUT.

It's made for you.

2 Discuss the following questions:

1 What product is the advertisement for?

2 Who are the customers?

3 What is the purpose of the advertisement?

4 What is the message?

5 What is the method?

3 Get real:

1 Collect some advertisements from newspapers,

magazines, or direct mail.

2 Choose one you think is good and present it to the class.

3 Say why you think it is good.

4 Make a class display of good advertising material.

IV. GLOBALISATION

Keynotes

Globalisation is the rapid increase in international free trade, investment,

and technological exchange.

Globalisation is forcing business to make

cost savings by reducing operating costs.

One way to do this is by outsourcing – transferring business processes such as

order processing or call centre management

to outside suppliers and service providers.

Offshoring is a new form of outscoring where businesses relocate back-office operations in overseas facilities

where labour costs are lower.

Reading 5

1 Work with a partner. What do you understand by globalization and consumerism? What are their pros and cons?

2 Are these sentences facts (F) or opinion (O)?

1 There are severe environmental changes taking place in the world.

2 Globalization is the synonymous with Americanization.

3 Only 20% of the world's population lives in rich countries, but they

consume 86% of the world's resources.

4 The more people are in debt, the richer the banks become.

5 The United States is a target for the have-nots of globalization.

6 Debt repayments by developing countries are nine times as much as the aid they receive.

7 The global economy puts no value on morality, only profit.

8 Countries in the industrialized West exploit workers in poorer countries.

What is your reaction to the facts? Do you agree with the opinion? Compare with the class.

Read the article. Which of the topics in exercise 2 are mentioned?

4 The author holds strong views on these issues. Can you present some counter- arguments?

Multinational corporations keep price down.

Economic growth is the route to the global prosperity. Or is it?-

Jonathan Rowe examines the price we pay for this growth.

The Global Economy

I want to talk about the economy. Not 'the economy' we hear about endlessly in the news. 'The economy' is what men in suits play with to make vast personal wealth. The economy is where the rest of us live on a daily basis, earning our living, paying our taxes, and each day and in politicians' speeches. I want to talk about the real economy, the one we live in day by day. Most people aren't particularly interested in 'the economy'. 'Share prices are flying high, interest rates are soaring. The Dow Jones' index closed sixty-three points down on 8472.35.' We hear this and subconsciously switch off. Notice that 'the economy' is not the same as the economy. 'The economy' is what

men in suits play with to make vast personal wealth. The economy is where the rest of us live on a daily basis, earning our living, paying our taxes, and purchasing the necessities of life.

Something wrong

We are supposed to be benefiting from all the advantages of a prosperous society. So why do we feel

drained and stressed ? We have no time for anything other than work, which is ironic given the number of labour -saving devices in our lives. The kids are always hassling for the latest electronic gadgets. Our towns become more and more congested, we poison our air and seas, and our food is full of chemicals. There's something wrong here. If times were truly good, then you'd think we'd all feel optimistic about the future. Yet the majority of us are deeply worried. More than 90 per cent of us think we are too concerned about ourselves and not concerned enough about future generations.

Producing and consuming

The term 'economic expansion' suggests something desirable and benevolent, but expansion simply means spending more money. More spending doesn't mean that life is getting better. We all know it often means the opposite - greed, deprivation, crime, poverty, pollution. More spending merely feeds our whole economic system, which is based on production and consumption. Unless money keeps circulating, the economy collapses. Airlines go bust, taking plane manufacturers and travel agents with them. If we don't keep consuming, then manufacturers and retailers go out of business. People don't buy houses, clothes, washing machines, cars.

The whole system goes into stalemate.

Creating need

As a leading economist put it, consumer societies are 'in need of need'. We don't need the things the economy produces as much as the economy needs our sense of need for these things. Why, in our supermarkets, do we have to choose from sixty different kinds of toilet paper and a hundred different breakfast cereals?

Need is the miracle that keeps the engines of expansion turning relentlessly. In economics, there is no concept of enough, just a chronic yearning for more. It is a hunger that cannot be satiated. There is so much craziness in the world. There is an American company that manufactures a range of food with a high fat content. This causes obesity and high blood pressure. By coincidence, the same company also makes products that help people who are trying to diet. Not only that, it even produces pills for those with high blood pressure.

Nearly all of my mail consists of bills (of course), banks trying to lend me money, catalogues trying to make me spend it, and charity appeals for the losers in this

ecstasy of consumption — the refugees, the exploited, the starving. Why is it possible to buy strawberries from Ecuador and green beans from Kenya when these countries can hardly feed their own people? It is because these are cash crops, and the countries need the money to service their debts. Notice that servicing a debt does not mean paying it off. It means just paying the interest. Western banks make vast profits from third world debt.

Making changes

How do we

break the cycle ? We need to become far more aware of the results of our actions. We buy clothes that are manufactured in sweat shops by virtual slaves in poor parts of the world. We create mountains of waste. We demand cheap food, mindless of the fact that it is totally devoid of taste and is produced using chemicals that poison the land. We insist on our right to drive our own car wherever we want to go.

The evil of the consumption culture is the way it makes us

oblivious to the impact of our own behaviour . Our main problem is not that we don't know what to do about it. It is mustering the desire to do it.

6 According to the article, are these statements true or false?

1 'The economy' is not the same thing as the economy.

2 People feel optimistic because their lives are so prosperous.

3 The we spend, the better life is.

4 If people stop spending, the economy collapses.

5 Companies respond to the needs of consumers.

6 It's good that we can buy cheap goods from around the world.

7 Many developing countries export food to pay back their debts.

8 We know how to solve some of these problems, but we don't want to do it.

7 What do you understand by the words and phrases underlined in the text?

8 What do you think?

1 What are some of the examples of craziness in the world that Jonathan Rowe mentions? Can you add any more?

2 Is it economic colonialization to sell Kentucky Fried Chicken to the world, or is it just giving people what they want?

3 What do you think are Jonathan Rowe's attitudes to the following? What are your attitudes?

~ multinational corporations ~ pollution and the environment

~ anti- globalization protesters ~ supermarkets

~ economics ~ Western banks

~ public transport ~ companies who use cheap

Reading 6

1 Before reading the text below about Philips, decide whether you think these statements are true (T) or false (F).

1 It is the world's biggest electronics company.

2 It has produced over 100 million TV sets.

3 Its headquarters are in Amsterdam.

4 It was the first company to produce compact disks.

5 It is active in a small number of specialised businesses.

6 It provides the lights for famous landmarks such as London's Tower Bridge.

Read the text and check your answers.

The Philips Story

The foundations of the world's biggest electronics company were laid in 1891 when Gerard Philips established a company in Eindhoven, the Netherlands, to manufacture light bulbs and other electrical products. In the beginning, it concentrated on making carbon-filament lamps and by the turn of the century was one of the largest producers in Europe. Developments in new lighting technologies fuelled a steady programme of expansion and, in 1914, it established a research laboratory to stimulate product innovation.

In the 1920s, Philips decided to protect its innovations in X-ray radiation and radio reception with patents. This marked the beginning of the diversification of its product range. Since then, Philips has continued to develop new and exciting product ideas like the compact disc, which is launched in 1983. Other interesting landmarks include the production of Philips' 100-millionth TV set in 1984 and 250- millionth Phil shave electric shaver in 1989.

The Philips Company

Philips' headquarters are still in Eindhoven. It employs 256,400 people all over the world, and has sales and service outlets in 150 countries. Research laboratories are located in six countries, staffed by some 3,000 scientists. It also has an impressive global network of some 400 designers spread over twenty-five locations. Its shares are listed on sixteen stock exchanges in nine countries and it is active in about 100 businesses, including lighting, monitors, shavers and colour picture tubes; each day its factories turn out a total of 50 million integrated circuits.

The Philips People

Royal Philips Electronics is managed by the Board of Management, which looks after the general direction and long-term strategy of the Philips group as a whole. The Supervisory Board monitors the general course of business of the Philips group as well as advising the Board of Management and supervising its policies. These policies are implemented by the Group Management Committee, which consists of the members of the Board of Management, chairmen of most of the product divisions and some other key offices. The Group Management Committee also serves to ensure that business issues and practices are shared across the various activities in the group.

The company creed is "Let's make things better". It is committed to making better products and systems and contributing to improving the quality of people's work and life. One recent example of this is its "Genie" mobile phone. To dial a number you just have to say it aloud. Its Web TV Internet terminal brings the excitement of cyberspace into the living room. And on travels around the world, whether passing the Eiffel Tower in Paris, or witnessing the beauty of the ancient pyramids of Giza, you don't have to wonder any more who lit these world famous landmarks, it was Philips.

2 Read "The Philips Story" again. Why are these dates important?

a 1891 b 1914 c the 1920s d 1983 e 1984

3 Read "The Philips Company" again and find the figures that correspond to the following pieces of information.

Example: The approximate number of designers working for Philips: 400

1 The number of people working for Philips worldwide

2 The number of countries with sales and service outlets

3 The number of countries where Philips has research facilities

4 The approximate number of scientists working in Philips' research laboratories

5 The number of integrated circuits produced every day

4 Match the words from the text with their corresponding definitions.

1 an innovation a a planned series of actions

2 a patent b main offices

3 diversification c a place or address

4 a range d the introduction of a new idea

5 headquarters e a selection of series

6 a location f making different types of products

7 a strategy g an agreed course of action

8 a policy h the right to make or sell an invention

5 In pairs, replace the words in italics with the words used in the text.

1 Gerard Philips set up (

established) a company in Eindhoven.

2 The company initially specialised in (___________) making carbon-filament lamps.

3 Developments in new lighting technologies fuelled a steady plan for growth (________________).

4 In 1983 it introduced (_____________) the compact disc onto the market.

5 Each day its factories produce (___________) a total of 50 million integrated circuits.

6 Royal Philips Electronics is run (____________) by the Board of Management.

7 The Supervisory Board carefully watches (____________) the general course of business.

8 Policies are put into practice (______________) by the Group Management Committee.

9 The Group Management Committee consists or members of the Board of Management and chairmen of most of the product sectors (______________).

10 The Group Management Committee serves to ensure that important matters (_________________) and ways of doing business (_______________) are shared across the company.

Now check your answers with the text.

6 Complete the passage using words from exercises 4 and 5 in the correct form.

The key to Philips' success can be described by two words. The first is innovation ; the company designers are continually developing and creating new products. The second is ____________; Philips is active in about 100 businesses varying from consumer electronics to domestic appliances and from security systems to semiconductors. With such a wide ____________ of products the company needs a complex system of management. Each product ____________ has its own chairman; most of these chairmen are members of the Group Management Committee, which ____________ all company decisions and plans. The Supervisory Board ____________ the general business of the group and it also advises and supervises the Board of Management.

! NOW you have some

extra activities to get ready to participate in the round- table discussion "Modern society and global brands. My opinion ". You have some texts, which can be good sources of information to participate in the discussion. You could be divided into three groups and have different assignments. Just use the chance to express yourself, to create new ideas and to protect your point of view. V. EXTRA ACTIVITIES

Text I

1 Read Parts A and B of the text quickly. Does the text come from an e-mail,

a newspaper article or an advertisement?