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UNIT 5 - NGUYỄN TRÚC QUỲNH - 2011510053
UNIT 5 - NGUYỄN TRÚC QUỲNH - 2011510053
UNIT 5 - NGUYỄN TRÚC QUỲNH - 2011510053
Vocabulary
Match the terms with their definition:
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:
Place:
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.
5. Synchromarketing involves altering the times pattern of irregular demand, eg. for
public transport between rush hours, or for ski resorts in the summer.
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.
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
oldfashioned 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:
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 price Price fixing/
maintenance