KEY TERM DEFINITIONS
Task 1: Match the following terms (A-J) with their corresponding definitions (1-10)
1 the knowledge about the people or organizations who buy or will buy a product or service of a company
2 a group of buyers with special needs, which may be profitable to sell to
3 customer’s opinion of a business or a product and how they feel about a brand including every direct or indirect experience
4 the process that companies can best design their website by making it fast and easy to navigate so that the website can become easy to find via search engines
5 one of the 4Cs of marketing which discusses how much the customer has to pay for the product
6 a type of marketing strategy which a company promotes its business web page in order to bring in more visitors
7 the feelings when the customers get what they hope for and their expectations are met
8 a business process in which client relationships, customer loyalty and brand value are built through marketing strategies and activities
9 a marketing strategy for setting a low price to sell a large volume of products and increase the market share
10 the people sent by companies to shops, who pretend to be real consumers to see how the company’s products are displayed, how sales people behave, etc
Task 1: Identify types of marketing and advertising activities based on the given definitions
1 a type of marketing which encourages people to buy a product or service in a way that people are not aware of this marketing strategy
2 the process of advertising and selling products on the
Internet, on a company website, or by email
3 a company which only has online stores E
4 a form of marketing where companies pay to increase the visibility of their websites in search engine result pages
5 a company which has both online and high-street stores B AND
6 a computer program which helps consumers find information about a company on the internet
7 an advertising strategy which is used when a customer buys one product, and that customer is recommended to buy another product that may go with it
8 the process of gathering information about a market, analysing it, and interpreting it
9 a method of advertising which encourages web users to pass on a marketing message to others, so that the message spreads like a virus to many users
10 printed or electronic information used to help encourage people to buy a product
11 a type of supplier exchange when firms receive order from suppliers over the Internet, which is known as business-to- business e-commerce
12 a form of direct marketing which uses information of customers to generate personalised communication in order to promote a product or service for marketing purpose
VOCABULARY PRACTICE ON E-MARKETING AND ADVERTISING
Task 3: Choose the correct words with suitable verb forms to fill in the blanks
1 Many insurance firms have configured their e-commerce platforms to support online searching, online claim processing, and online _, as well as online sales for some products
2 The company plans to roll out an online advertising campaign _ their range of health foods
3 The extraordinary expansion of social media has brought about radical shift in the way companies _ with their customers
4 Producing video advertising offers higher response rates, so it will be more successful in raising and _ brand awareness
5 Television advertising is the best way _ the image of the brand to our target audience
6 Some marketing theorists believe that the 4Ps model is able _ to the changing face of marketing in the digital world
7 The Board of Directors are aware of the company’s challenge which is to _ Internet technologies into the company’s marketing processes
8 By _ discount alerts on Twitter, Dell has generated more than $1m in sales
Task 4: Fill in the blanks with the correct word forms
1 Web _ allows companies to present visitors with unique experiences tailored to their needs and desires (person)
2 For cost and efficiency reasons, personal selling is giving the way to telemarketing, call centers, and _ (market)
3 E-commerce _ are usually developed by large firms whose size enables them to achieve greater cost savings and efficiency gains (apply)
4 ‘Convenience’ also includes key aspects of website design such as _, layout, and ease of purchase (navigate)
5 Texas Instruments was able to cut its customer waiting time, which improved customer _ of poor service (perceive)
6 We see our brands as _ of our new range of products – they represent our company in the marketplace (extent)
7 From a customer’s point of view, brand gives us fast recognition but also an _ of quality and performance (sure)
8 It’s important to develop a deep understanding of consumer _ for each intended foreign market (behave)
Task 5: Choose the correct option for each sentence related to e-marketing and advertising
1 There are many _ of online marketing including better brand engagement, more cost and time effectiveness, real-time results, etc
2 Online retailers try to lure customers away from their _-and-mortar competitors
3 As opposed to _, micro-finance is a distinctly low technology business
4 The Internet service provider has introduced flat-race prices in an attempt to _ customer defections
5 A lot of people are not happy to receive emails about _ as they just clutter up the inbox
6 has radically changed marketing because it means you can have a much closer relationship with the customer
A Conventional marketing B Traditional marketing C E-marketing D Word of mouth
7 The company’s plan involves choosing their target customers and designing a persuasive _ to get them to buy their products and services
A marketing channel B marketing research C marketing concept D marketing mix
8 The marketing concept of _ answers the question “How are you telling consumers in your target group about your product?”
9 The retailer generates _ by selling their advertising space on their website
10 The clicks-and-bricks retailer has a(n) _ store for consumer shopping and also conducts Web-based retail operations through the Internet
11 The _ retailer enables Internet users to participate in retailing activities previously restricted to store – based retailers
12 Retailing through the Internet requires more sophistication than setting up a website and offering _ for sale
13 Such advertisement makes a number of _ for the products which have little basis in reality
14 A _ has become an essential part of doing business with consumers on the Internet
A cyberstore B website C viral marketing D mall
15 For several years, many _ companies didn’t make any money from their online activities
16 The promotion variable can be further broken down into advertising, sales promotion, personal selling, publicity, direct marketing and _
17 _ programs introduce products or companies to social networking services like Twitter, Facebook, Google+, Youtube, and blogs
A Multi-channel B Social media marketing C Computerized D Penetration
18 Most web advertising companies provide extensive data which give a _ of all Internet users who have clicked on their adverts
19 Social networking sites provide marketers with an opportunity to _ a huge market of specific consumer groups
A run into B get into C take into D tap into
20 The two main activities that make up _ are mailings and telemarketing
A direct marketing B one-to-one marketing C personal selling D select group
21 Both public and private exchanges are referred to as e-marketplaces, trading hubs, or _
A trading forexes B trading forums C trading platforms D trading houses
22 On the Internet, companies advertise themselves using _ which appear on the web pages and links which link one website to another
23 Using a(n) _ will help a company reach new customers and get them onto their website
A online channel B e-procurement C image advertising D mass advertising
24 It’s relatively cheap to produce an exciting well-constructed _ campaign to target a niche audience of web users
A mouth-to-mouth B viral video C viral broadband D viral marketing
25 Social networking sites are often used by companies to communicate with their customers, to solve problems or to defuse a brewing _
26 Some companies have used social media such as Twitter to put out public relations _ before they spread
27 Staff of a company should be familiar with social media, which enables them to be attuned to the needs and _ of their customers
28 Understanding the different motivations and usage _ for a company’s products is vital to getting its marketing right in the digital age
29 E-marketing is different from conventional marketing because it uses _ to create powerful messages to engage consumers, build brands and drive sales
A digital technologies B social technologies C broadband pages D cartoon images
30 Companies can use pop-ups or banners which are _ used on websites to advertise products or services
A graphic science B technology images C graphic images D photos
31 With over 1 billion websites in existence, it is getting harder for companies to break into the _ of the 20,000 most visited sites
A select group B segmented group C portfolio D objective
32 On the Internet, advertisers can track consumers by following their trail of activities and _
33 In the last ten years, the Internet has helped companies to improve the quality and quantity of the work they do in carrying out market _ for their clients
34 Consumers visiting online stores expect to be able to log on easily and complete transactions at the first _
35 Today’s more demanding shoppers are looking for higher quality and _ products from all e-tailers
A good range B specific quantity C highest value D better value
36 The company website will offer their customers _ that are informative to help them make informed purchasing decisions
A market survey B quality product C product reviews D result pages
37 _ and pop-up advertisements are more traditional forms of Internet advertising
38 From a _ point of view, the fact that things are branded allows us to recognize the
39 Our latest marketing _ aims to go beyond the basic features and emphasize the real lifestyle benefits of the product
40 One of the biggest assets is the _ a company has built up through marketing campaigns
A customer thought B customer inspiration C customer behavior D customer base
SECTION 2 LANGUAGE USE IN A WIDER CONTEXT
PASSAGE COMPLETION
Read the passage and choose the correct words to fill in the blanks
Best Buy, the leading electronics retailer, has implemented a groundbreaking marketing strategy by partnering with Shopkick to deploy a location-based marketing solution in its San Francisco store This innovative approach enables Best Buy to send exclusive offers and deals directly to customers' smartphones as they enter the store, creating a highly targeted and personalized shopping experience.
Customers who (3) _ the Shopkick application on their phones will automatically receive “kickbucks” credits just for entering the store that can be traded for benefits including gift cards, computer gaming credits or music downloads Best Buy will also use the system to send participants in its (4) _ promotional offers that can be customized to reflect their shopping (5) _ and interests
Richard Rommel of Best Buy said that “the convergence of location technology and rewards to (6) _.” shopping was at the heart of their business strategy Price (7) _ are then automatically deducted from the bill at the store’s checkouts The Shopkick application responds to an audio signal transmitted in the store It is far more accurate than GPS-based (8) _ which can be off by a few hundred yards, and which raise potential privacy concerns because they are automatically activated
Recent years have seen the emergence of a number of location-based systems with marketing (9) _ for social networks They allow (10) _ to offer credits or local promotions to phone users who actively “check in” to locations such as coffee shops Instore mobile shopping applications are likely to become increasingly important to retailers as they seek to close deals with shoppers equipped with smartphones that can search and compare prices at rival stores and online (Dubicka & O’Keefle, 2011)
4 A consumer group B membership fee C customer service D loyalty scheme
Read the passage and choose the correct words to fill in the blanks
Most retailers cling to product-focused and promotion-centric models However, there is increased consumer resistance to (1) _ marketing, such as unsolicited email and (2) _ mail In response, some retailers are beginning to pay more attention to the customer (3) _ and have adjusted their marketing practices so that they are delivering fewer, more relevant messages that reflect the multichannel (4) They have with the customer, for example, retail stores website, and catalogs, or;’ brick, click, and flip” Switching to a customer- centric marketing approach helps to increase customer (5) _ and as a result, customers will buy more from you over a longer period of time Research by Bain and Harvard Business School shows that the longer a customer stays with you, the greater the (6) _ profit generated from that customer These increased profits come from a combination of increased purchases, cost (7) _ in marketing, and word-of-mouth (8) _.
The majority of multichannel retailer do not design their marketing programs around acquiring new customers that have the best potential to become (9) _ customers and rewarding existing high-value use loyal customers with special treatment in order to retain them Instead, they wrongly focus on market (10) _ as the key measure of success
9 A temporary B permanent C long-term D lengthy
Read the passage and choose the correct words to fill in the blanks
The Marketing Mix has been the golden rule used by marketing managers everywhere to engage customer attention and (1) _ this interest to sales The four Ps of Product, Price, Place and Promotion date back nearly 50 years But this approach to marketing does have its critics, who argue that the true success of sales is completely down to the customer, and what he or she wants is an important decision factor The Product, for example, is not just the (2) _ product or service itself, but a whole host of associated warranties that one attaches to it These are society based and driven Price is usually associated with cost (3) _, and therefore
‘how low can you go’ is the dilemma But cheapest is not necessarily best, as the price should reflect the value for benefits it offers Something that increases social status or sexual magnetism can be considered by some worth more than the literal financial value placed on it
The concept of Place in the Marketing Mix, often referred to as the distribution (4) _, usually represents the locations where the product can be purchased, physical or virtual However, place should refer also to timing, ensuring that the product is there in the right place, supplying customers’ needs to their own personal schedule With e-business this includes visibility in search (5) _, visibility in consumer keywords and knowledge of the search behavior of your (6) _ market Promotion is essential and is typically associated with advertising, but also includes PR, word of mouth and (7) _ of sale Others have suggested that within the knowledge of the benefits of the product and brand awareness comes customer (8) _, which is invaluable as part of the business base
A key element often overlooked is "P for People." Individuals embodying a brand become its representation While satisfactory service may go unnoticed, exceptionally poor service leaves a lasting impression Satisfied customers often remain silent, as they expect positive treatment However, negative experiences are widely shared, highlighting the significance of customer staff in shaping a company's image Their demeanor and professionalism hold immense power in establishing a reputation, making them invaluable assets.
Read the passage and choose the correct words to fill in the blanks
People still enjoy the ads that are creative and entertaining But it raises an awkward question: does it actually sell any more chocolates or cars? Although TV viewers tend to be able to (1) _ a particularly good commercial, many cannot remember the product it featured And for the most (2) _, they try to avoid the rising barrage of ads Getting their attention is becoming increasingly difficult, because audiences are splintering as people use different kinds of media, such as cable television and the Internet The choice of products and services available is multiplying, but at the same time, consumers have become more skeptical about (3) _ made for products In today’s marketplace, consumers have the power (4) _ and choose as never before
Consumer empowerment has revolutionized shopping patterns, granting shoppers unprecedented information access and transforming them into powerful market forces In transparent price environments, consumers reign supreme This shift presents immense opportunities for businesses: increased choice and brand recognition, as well as the potential to expand into new sectors For example, Apple's iPod challenged Sony's dominance in portable music, while Starbucks and Dell have ventured into music and electronics, respectively Mike George of Dell highlights the remarkable sophistication of today's consumers, who respond swiftly to pricing adjustments on the company's website.
READING COMPREHENSION
Read the passage and do the tasks below
When Unilever wanted to launch its AXE deodorant spray for men in the United States, it combined young men’s natural interest in pretty girls with the attraction of a great house party The idea was simple: boys buy AXE, boy meets girl, boy smells nice, girl likes boy
The product, which was already popular in other parts of the world, was launched in the Unites States with a powerful promotional plan to make it appeal to American male youth culture Using the slogan “the AXE effect”, the company used a number of marketing ploys to bring the product to the attention of the public These included an online game, free samples of deodorant, often given by attractive female models, in retail stores, point-of-sales displays, media advertising and public relations (PR), all of which hyped the centerpiece of the promotion: a once-in-a-lifetime party at a Florida mansion
Unilever began the December before by direct-mailing millions of college students and young males aged between 11 and 24, who received free samples and information about the event, which was advertised as the AXE House Party: lots of girls, rock stars and a beach house
A radio advertising campaign and online publicity called for young men to log on to the Internet to play a video game on the AXE website Participants had to apply their dating skills to score points If the player reached a certain level, he entered a lottery to win a trip to the party
AXE focused on the intrigue and discovery of the party Leaflets similar to ones made for a party by a group of college students were posted in relevant locations such as men’s toilets at nightclubs There were also print ads in Rolling Stone and Spin magazines
“It was all about getting into the mind of the 20-something guy”, says Mary Drapp, manager for strategic alliances and sponsorships for Unilever And they succeeded in doing that Their website received more than 943,000 hits, 20% more than the goal Some 100 lucky young man were flown in to attend the party Girls were invited to dance and enjoy musical acts from their favorite singers
The party was filmed and edited into an hour-long show broadcast on TNN in April “To our knowledge, nobody has ever taken a consumer promotion and turned it into a television show,” says Steve Jarvis, the marketing consultant for AXE
Following the promotion, results included a 22% increase in general brand awareness among males aged 11 and 24 and a 3% to 3.7% increase in antiperspirant and deodorant market share
(Cambridge Certificate in Advanced English 3, 2009)
Choose the correct answer for each case
1 Who were the target audience in Unilever’s promotional campaign?
A Young women B Young men C Men off all ages D Men and women
2 How did people get an invitation to the house party?
A By receiving direct email B By answering an advertisement
C By applying through an Internet site D By participating in a game
3 What was the aim of the publicity for the house party?
A To show an exotic location B To improve men’s dating skills
C To excite people’s curiosity D To show people they needed AXE
4 According to May Drapp, what was the aim of the promotional campaign?
B To encourage people to visit the website
C To encourage a different type of customer to buy the product
D To show the effectiveness of the product
5 What was unique about the promotion of AXE?
A The house party B The television programme
C The free disc D The use of the Internet
Do the following statements agree with the information given in Passage 1? Write:
TRUE if the statement agrees with the information
FALSE if the statement contradicts the information
NOT GIVEN if there is no information on this
6 Nichols considers working with management consulting firms from day one to be her role
7 When it comes to choosing the type of consultation, there should be right or wrong in the absolute sense
8 According to Paul Eden, customers may not know the process well when buying from larger firms
9 Carol Nichols thinks she doesn't need to form partnerships to grow the department and the company
10 The option between large and small consultancies is becoming increasingly mutually incompatible
Read the passage and do the tasks below
Not long ago, innovation was The Big Idea in marketing circles Now, however, it's hard to see the benefits of this rush to innovate Indeed, if anything, companies seem to be drawing back from innovation, not charging ahead But just a few years ago many companies were combining a commitment to create entirely new product categories through innovative technologies - working to hugely ambitious growth targets - with a root-and-branch organizational overhaul designed to free up creativity and speed new product roll-outs
Amidst resource reallocation, organizations that shifted focus away from core operations faced a decline in sales, profits, and stock prices, prompting CEO replacements Consequently, a prudent strategy emerged, emphasizing a concentration on prominent brands, key retail partners, and lucrative markets This approach has proven successful in several instances, resulting in improved stock performance By terminating underperforming brands and channeling marketing efforts into established frontrunners, businesses have realized a positive impact on their bottom line.
So, were we wrong to pinpoint key innovation as key to long-term market success? Surely not But we might have underestimated the enormous complexity of this beast The term
‘innovation’ may be simple enough but it spans a vast landscape, including the type and degree of innovation, marketing purpose, management process and market circumstance - not all of which are well understood
Take ‘type’ of innovation Are we talking about new products only? Or new processes, new channels, underlying technologies, organizational structures and business models? When should the innovation involve a new brand? Or take 'degree' Are we aiming for blue-sky inventions that will transform markets and create new categories? Or marginal tweaks in, say, formulation or packaging that give us an excuse to advertise something ‘New! Improved!’? Likewise, is the marketing purpose of the project to steal a march on competitors and drive incremental growth, or to update an obsolete product line and play catch-up to competitors? As one business news editorial complained, innovation’ is often just ‘simple proliferation of similar products' Then there's process What is the best way to manage this particular innovation? Is it to employ creative revolutionaries and set them free, or is disciplined risk management, requiring the careful testing and sifting of options to pick winners, a better approach? In larger organizations, has senior management really made time spent in cross-functional teams a recognized element of successful career paths? What time frames (e.g., payback periods) and degrees of risk is senior management comfortable with? And does the organization have a culture that fits the chosen approach? Does it ‘celebrate failure’, for example, or is it actually a risk-averse blame culture (despite what the CEO says in the annual report)?
Innovation demands the alignment of suitable projects, appropriate innovation levels, marketing objectives, processes, culture, and market conditions Senior management's comprehension of these interconnections is crucial to orchestrate their interplay purposefully, catering to diverse circumstances, rather than relying solely on serendipitous alignment.
(Gore, 2010) Choose the correct answer for each case
1 According to the first paragraph, a few years ago companies _
A trusted in technology to improve existing products
B chose to focus heavily on marketing activities
C expected that growth would increase steadily
D believed they needed to produce new goods
2 What problem is indicated in the second paragraph?
A Insufficient attention to brand identity damages company profits
B A lack of product diversity reduces a company's appeal
C Business leaders are not attracted to slow-performing companies
D Slow reactions to business trends reduce investors' interest
3 According to the third paragraph, it would be a mistake to _
A rely on future benefits in business planning
B deny the benefits of pursuing innovation
C neglect the importance of strategic issues
D predict the outcomes of innovations
4 According to the fourth paragraph, companies should ensure that _
A their approach to risk management is fully new
B the progress of an innovation is as speedy as possible
C their new products are radically different from competitors’
D the benefits of participating in teamwork are fully acknowledged
5 Which statement could be best summarized the fifth paragraph?
A The steps involved in innovation must be tackled in sequence
B Market forces should be a company's primary consideration
C The types of innovation sought must be appropriate to a company
D Elements of chance should be assumed in decision-making
Fill in the summary with ONE WORD taken from Passage 2 for each blank
Innovation has shifted from being the focus of marketing to a concentrated approach on top brands, customers, and markets This shift has led to a re-evaluation of resources and priorities, including the nature and extent of innovation The purpose of innovation projects must be clearly defined, whether for competitive advantage or product line updates The choice of innovation approach (creative freedom or risk management) should align with the project's objectives and the company's culture Successful innovation demands a strategic alignment of project, innovation process, corporate culture, and market conditions Senior managers must recognize the interplay between these elements and actively facilitate their integration to address varying circumstances.
Read the passage and do the tasks below
How will advertiser reach us?
The commercials on screen are far better than they are now Directors make sure they are moving, exciting, entertaining and technicians make sure the effects are breathtaking It's not the commercials on screen that are the most interesting part, though: the really crucial advertising is hiding in plain sight on the field Brand names blaze from each player's shirt Corporations will pay big money for the right to digitize logos onto the T-shirts of the fans in the stands Logos of sponsors won't be painted on stadium signs or on the field any more Thanks to technology that is already emerging, logos of sponsors will be digitally embedded in the image on your screen Advertising will change profoundly over the next couple of decades, although there's a good chance you won't notice the difference, since the most meaningful changes won't be visible to the casual observer Advertising in the future will be stealthily and eerily targeted, disturbingly omnipresent and inescapable
BRANDING 23 2.1 KEY TERM DEFINITIONS
VOCABULARY PRACTICE ON BRANDING
Task 3: Choose the correct words with suitable verb forms to fill in the blanks
1 In the late 90s, Nike faced criticism about poor working conditions in its supplier factories in Asia which severely _ its brand
2 Google has _ to brand itself as the search engine of choice for the Internet
3 The best way to develop and sustain brand commitment among consumers is to _ your brand from others through quality and reliability
4 We managed to _ the product on the market within six months of identifying consumer demand
5 Many companies may _ or even completely destroy a brand by overusing its logo on unsuitable products
6 A company should be _ to build its brand and image among its clients
7 The successful branding and marketing of the new product has already _ sales and increased profits
8 A brand extension which is developed in response to real consumer demand can strengthen the _ brand
Task 4: Fill in the blanks with the correct word forms
1 _ is the process of pointing out advantages of a product by highlighting how it is different (different)
2 Consumers usually expect to pay less for products that are _ (brand)
3 For many companies, the relationship between brand awareness and sales is so acute that they follow consumers' purchasing _ and brand loyalty levels via surveys (intend)
4 It is not always easy to set yourself apart from a(n) _ brand (compete)
5 Although they buy the supermarket’s own brand of coffee, their brand _ is always Starbucks (prefer)
6 The company decided that the objective was to develop positive attitudes and build brand _ among the consumers in order to induce them to purchase (aware)
7 Brand value is the _ worth of your brand, if you have to sell it (money)
8 Such _ brands as Levi and Harley-Davidson have a timeless and mythical status (icon)
Task 5: Choose the correct answer for each sentence
1 _ describes the exposure and interaction that a consumer has with the brand
A Brand experience B Brand memory C Brand knowledge D Brand identity
2 _ is the application of marketing techniques to a brand to increase the perceived value of a product line
A Brand extension B Brand management C Brand enhancement D Brand dilution
3 _ occurs when consumers consider buying your brand
A Brand corporation B Brand consideration C Brand extension D Brand behavior
4 _ refers to a high-quality brand which is usually more expensive than its competitors
A Diluted brand B Flagship brand C Economy brand D Premium brand
5 _ is one that is leased to a manufacturer, who then makes the product under that name
A Targeted brand B Diluted brand C Licensed brand D Own brand
6 The brand that is used by the company that developed and produced the product is called _
A licensed brand B manufacturer’s brand C own-label brand D local brand
7 _ is something which is very famous or popular and represents particular opinions, cultures or a particular time
A An item B A label C An icon D A heritage
8 _ refers to a measurement of the number of people who know the brand
A Brand awareness B Brand license C Brand value D Brand leader
9 The brand’s _ can be attributed to the traditional values and luxury lifestyle that it presents
10 One of the biggest challenges that pharmaceutical brands face is the competition from _ products
11 Brands are a mark of quality, and it is the brand name that distinguishes a product from other similar products and give it a brand _
12 _ brands have the ability to cross both geographical and cultural boundaries, building international reputations of quality
13 We can consider a brand as the idea or _ people have in mind when thinking about specific products, services and activities of a company
14 Fun, style, and simplicity are some of Apple’s brand _
15 Such _ brands as Levi and Harley-Davidson have a timeless and mythical status
A own-label B private C enhanced D iconic
16 The study of consumer behaviors is a social science discipline that attempts to model and understand the behavior of humans in the _
17 Although our handling of complaints has improved greatly, it continues to be a significant problem in terms of public _
18 If all consumers were to have a sudden lapse of memory and forget everything related to a company, the company would go _
A into business B under business C out of business D on business
19 It is estimated that about 85% of all sporting goods are sold under a(n) _ brand
20 If you consistently meet or exceed customer expectations, you will develop strong _
A brand awareness B consumer perception C customer loyalty D brand extension
21 Our local supermarkets have made a lot of profit on their _ products
A trademark B own-label brand C generic brand D logo
22 From a _ point of view, obviously the branding process increases profitability quite substantially
23 Although products are manufactured, brands are sold and constitute important elements that guide _
A customer profile B customer point of view C consumer behavior D retailer behavior
24 Brands are at the center of being perceived by the customer as better or more relevant and are a company's most strategic _
25 Consumers are often prepared to pay a high price for a(n) _ brand which they believe represents high quality
26 Brands allow companies to influence the _ for a product by manipulating factors other than price
27 When referring to a brand, _ would be seen as a part of its identity defined by its track record, longevity, and core values
28 If you want to make sure that your brand is seen as being different from your competitor’s brand, you need to make sure that the positioning strategy you are using is the _ one
29 There are consumers who buy _ products in order to make a statement about who they are
A long-life B long-term C lifestyle D fast-growing
30 The report claims that more than 20 percent of typical “British” brands are owned by foreign _
SECTION 2 LANGUAGE USE IN A WIDER CONTEXT
PASSAGE COMPLETION
Read the passage and choose the correct words to fill in the blanks
Building a luxury brand is a journey
Indeed, building a luxury brand today amidst other (1) _ brands in the current market landscape may seem daunting However, with a clear plan to identify a niche customer (2) _ and emphasize the brand’s symbolic value, there is huge potential for brand managers in Asia to differentiate and position new, (3) _ luxury brands in the market Some recent examples are Shang Xia, a Chinese luxury fashion brand offering high-quality products with a contemporary (4) _ on traditional Chinese aesthetics and crafts In addition, another challenge that luxury brand managers need to deeply consider is how to make digital and technology a key business enabler The purchase (5) _ of luxury consumers go much more beyond just financial extravagance; but instead allows them to pursue a passion or associate themselves with the brand’s (6) _ and aspiration In such a digitalized and commoditized world, brands need to be able to express the same (7) _ that can resonate with luxury consumers Digital disruption and emotional engagement, although seemingly opposite, can actually be combined to enable companies to reap the most out of their luxury branding (8) _
Aspirational CEOs and brand managers seeking to create luxury brands should make the above elements (9) _ to their corporate strategies With digital disruption being the (10) _ in the industry, it will be exciting to see what new luxury brands will be discovered in the coming 5 years and how they will find new ways to engage consumers
Read the passage and choose the correct words to fill in the blanks
Branding often seems something in which large companies invest huge amounts of time and money but which is (1) _to small companies who have to focus on the day-to-day task of keeping the revenue coming in Even if a small company accepts the (2) _ of branding, it is still often something which is not given a high priority The truth is, however, that branding is not just something which carried out through high profile (3) _ Rather, it is about the customer (4) _ and overall image of the company In this sense, it is not possible for a company not to have a brand
Indeed, it could be argued that branding is easier for small companies Big names have to invest heavily in (5) in order to create and maintain their relationship with customers Smaller brands that are physically closer to them can do this via personal (6) _ Of course, a customer who approaches the local brand of a large company will have dealings with the staff there, but how (7) _ of the brand will they be? Finding ways to push the brand experience down to local branches is a continual headache Just how difficult this is to achieve can be seen by the array of checks that large companies have to carry out (8) _ shoppers, customer feedback forms, and continual staff training, are all strategies to keep the brand on track from a distance
Branding for small companies can take place through inexpensive means, most obviously by creating a company (9) _ and using it on all business cards and written communications Likewise, these should be a user-friendly website displaying it Consistent use of such visuals as these gives an impression of consistency of service They are not just frills but convey the message that the customers are (10) _ with a professional company On top of this, there are more intangible aspects of branding such as how phones are answered or how reputation Indeed, these day-to-day dealings with customers are especially important because brands are more affected by what customers say than by top-down management
(Cambridge English Business Benchmark Progress Tests, 2016)
Read the passage and choose the correct words to fill in the blanks
Companies spend large amounts of money researching (1) _ markets and developing their brand image but once the product has entered the marketplace, the (2) _ can happen The company’s advertising may target one type of user, but this might not (3) _ the people actually seen with the brand A recent example of this occurred with Burberry, the clothing label It was marketed as a luxury brand but became (4) _ with working class Britons ‘
Clashes of this kind are not easy to (5) _ Occasionally the company may try to welcome the unexpected customers by changing the brand’s image However, this can have far reaching (6) _ on everything the company sells Most companies are not willing to risk their whole product range like this Another strategy is to raise the price in order to (7) _ unwanted users Or they may even decide to discontinue product lines where there is this clash This last solution was (8) _ by Burberry when they stopped selling their baseball caps
Globalization is likely to both help and exacerbate the problem On the one hand, a local clash might not matter much if you are selling in many different markets But at the same time, (9) _ like these are likely to become more common when a product is marketed across different societies
To mitigate potential risks, companies should conduct thorough brand segmentation to cater to diverse target groups This approach, as exemplified by Armani's segmentation strategy, ensures that products and marketing efforts align with the desired brand perception Furthermore, maintaining harmony between the product image and retail outlets is crucial Companies should evaluate stockists to ensure alignment with the brand and eliminate any that detract from its image.
(Cambridge English Business Benchmark Progress Tests, 2016)
Read the passage and choose the correct words to fill in the blanks
Due to a vast client base and readily available copies from fast-fashion retailers, profits from custom-made clothing have dwindled Major luxury brands such as Givenchy, Yves Saint Laurent, Versace, and Valentino are facing financial losses, while only Chanel remains profitable Ungaro, after years of struggling to turn a profit, is now up for sale LVMH recently sold Christian Lacroix, a notable luxury brand, for a nominal fee to American duty-free retailers Prada has also ended its partnership with Helmut Lang following significant losses In Paris, the number of fashion houses showcasing collections has declined significantly in recent years, with only a few now able to sustain the costs.
Europe's rag trade has been in (7) _ now for more than five years Luxury-goods groups (8) _ on glamorous name keep high fashion alive Valentino, for example, is owned by Marzotto, Italy's biggest clothing and textile group; Yves Saint Laurent belongs to Pinault-Printemps-Redoute, a French rival to LVMH
Further down the fashion chain things are equally dire (9) _ producers cannot afford sustained losses Medium-sized and small companies in France, Italy and Spain are cutting production or moving it abroad Some have merged or tried to cut costs by lowering the quality of their products Dozens have already gone under Many more are streamlining operations and fighting for survival
The main cause of the mass market’s troubles is competition from overseas Producers the Federation Francaise de la Couture, France’s main fashion association And it can only get worse
5 A loss-consuming B loss-making C loss-effective D loss-saving
9 A Huge-market B Large-market C Mass-market D Minimize-market
READING COMPREHENSION
Read the passage and do the tasks below
A manufacturer of sports shoes starts selling consumer electronics A soft drink lends its name to a range of urban clothing What’s going on? In simpler times, you knew where you were with brands One brand name meant good- quality sports shoes, another a soft drink No confusion Today, however, big companies try to redefine brands as not so much a product, more a way of life, and stretch them into new areas In the early years of the consumer society, a brand name on a box simply identified what was inside People were looking for products that would improve their quality of life, and chose brands most likely to achieve that purpose But as people in industrialised nations became more affluent and fulfilled their basic needs, brands acquired other attributes The functionality of the product was still important, but people also started using brands to say something about themselves, for example, choosing a brand of cosmetics which would suggest that they were sophisticated jetsetters
Now, we have entered a third age of branding, in which so many companies are making roughly the same product at roughly the same price that functionality rarely succeeds as a point of differentiation Instead, companies are trying to make their brands stand out by emphasizing their emotional aspects, hoping consumers will identify with the set of values the brand represents
Product-based brands face the risk of decline if their products become outdated, unlike emotional brands This poses a significant challenge for breakfast cereal manufacturers who are witnessing declining demand Despite marketing efforts, product-based brands remain vulnerable to the lifecycle of their products Conversely, emotional brands possess the advantage of leveraging their brand strength into new areas, thereby diversifying their revenue streams and mitigating the risks associated with single products.
The elasticity of brands is influenced by their position on a spectrum from tangible assets to intangible emotional qualities Brandsrooted in infrastructure and functionality (e.g., train companies) have limited stretch potential Conversely, brands centered around dreams and emotional experiences (e.g., leisure brands) possess high elasticity, because they connect with consumers on a deeper level and evoke aspirations.
Despite their emotional appeal, brands have limitations on their adaptability Products must align with brand values, and simply slapping a logo on merchandise is a shortsighted strategy Nike's expansion into consumer electronics, including sports-oriented items like two-way radios, demonstrates this principle While such products may find use in other contexts, their core alignment with the brand's sports focus ensures relevance to Nike's core customer base.
(Cambridge BEC 4 Higher, 2016) Choose the correct answer for each case
1 What led to a change in attitudes to brands?
A The influence of consumers on each other
B The personal circumstances of consumers
2 According to the writer, an attribute of the third age of branding is that _
A competing products may serve their purpose equally well
B the range of products available is too large for all to survive
C consumers are becoming confused about the products available
D price has become a key factor in consumers’ choice of products
3 What can be inferred about Form 12?
A Competition can have an impact on a product
B A brand can lose its popularity despite a strong market for the product
C Advertising can affect sales of a product
D Changes in the popularity of products can cause difficulties
4 The writer refers to railways to show that brands like this _
A do not recognize the value of stretching
B suffer from having an unattractive image
D are notoriously difficult to advertise
5 The writer argues that the stretch from sports shoes into consumer electronics is likely to be successful because _
A existing customers have demanded the new products
B they will be sold in the same outlets
C the new lines will expand the manufacturer’s market
D there is a connection in the way that the goods can be used
Do the following statements agree with the information given in Passage 1? Write:
TRUE if the statement agrees with the information
FALSE if the statement contradicts the information
NOT GIVEN if there is no information on this
6 In the past, a brand name meant only a product
7 Now customers choose a brand because it improves their quality of life
8 Now a product’s functionality is less important than the feelings its brand gives to customers
9 Companies attempt to differentiate their brands by focusing on emotional aspects
10 Breakfast cereals manufacturers have difficulty competing with emotional brands
11 Emotional brands can draw customers’ attention to their products’ lifespan
12 Customers may spend more money on emotional brands if their products meet their demands
13 Train companies have more risk of breakdown than leisure brands
14 Other products of a brand should always be related to its premise
15 Customers of a shoe brand may quickly buy a two-way radio for hikers
Read the passage and do the tasks below
Big brands turning to Big Brother
Innovation is the norm in our fast-moving consumer culture But launching new products or repositioning faded brands is increasingly the subject of scientific scrutiny Global brands want to make sure their products succeed across national boundaries and are turning for help to a new kind of market testing – ethnographic research
In less than a decade ethnographic research – detailed observations of the day-to-day behaviors of a small sample from a target group of consumers to shed light on how they use, choose or buy products – has established itself alongside consumer surveys and focus groups as a leading tool of market research
Siamack Salari is a boss of one firm specializing in this field Salari’s researchers follow paid volunteers for days filming their every move with a hand-held camcorder to uncover hidden truths about the way they lead their lives Usually towards the end of the first day, the novelty of being filmed will wear off and unselfconscious behaviors will start to emerge The best insights come when people are feeling relaxed and off their guard Hours and hours of video are analyzed for key behaviors before being finally edited down to around an hour of film that can be played back to the subject and shared with the client
Key insight: Film surpasses questionnaires in capturing authentic behaviors due to its unbiased nature Salari emphasizes the rigorous process of analyzing and interpreting behavior observed through film recordings, highlighting the ability to observe subtle cues and unconscious actions that may escape self-awareness.
Salari's unique ethnographic approach, characterized by observation, common sense, and lateral thinking, emphasizes the value of qualitative research for unlocking unexpected insights Unlike data analysis from loyalty cards, which focuses on segmentation and targeting, Salari's method reveals the broader context of product selection and improvement opportunities.
Salari points out: “Ethnographic research is totally opposed to other forms of research and its big benefit is that it generates insights.” Sometimes ethnographic research suggests small changes that can make the difference between a product succeeding in its market or falling flat
(Cambridge BEC 1 Higher, 2012) Choose the correct answer for each case
1 What does the writer say about new products in the first paragraph?
A Detailed research will ensure that new products are successful
B New products have to be available worldwide nowadays
C Companies are more reluctant to take risks than previously
D Consumers will stop buying brands that fail to innovate
2 In the second paragraph we learn that the advantage of ethnographic research is that _
A other people can watch participants' behaviours
B people are unaware that they are being filmed
C it is easy to gather large amounts of data
D it can capture previously unknown information
3 What does Solari say is the advantage of using a camera?
A It allows for more accurate data to be collected
B Participants don't need to complete any paperwork
C Several people can be filmed at the same time
D Data can be collected over a short period
4 In the fifth paragraph, Solari says the disadvantage of supermarket loyalty cards is that _
A the data they deliver is predictable
B they are only useful for certain specific purposes
C they don't allow for human interpretation of data
D they need to be improved to deliver more information
5 In the sixth paragraph, how does Solari say ethnographic research can improve products?
A Although expensive to begin with, it can reduce costs in the long term
B It offers objective information on how a product will perform
C It selects a small range of participants that are likely to buy the product
D It can highlight a key issue before the product is launched
Fill in the summary with ONE WORD taken from Passage 2 for each blank
In less than a decade, ethnographic research - thorough (6) _ of a small sample of a target set of customers' day-to-day activities to throw light on how they (7) _ or buy items
- has established itself as a key instrument of (8) _, alongside consumer surveys and focus groups Salari defines (9) _ as "observational study with a dash of common sense and lateral thinking tossed in," pointing out that only this sort of yields unexpected results
Ethnographic research, distinct from other research methods, offers valuable insights into consumer behavior Global companies are embracing this approach for market testing, enabling them to understand the wider context of product selection and identify opportunities for improvement Insights from ethnographic research, such as those gathered from supermarket loyalty cards, can help businesses refine their products, as subtle changes can significantly impact a product's success or failure in the marketplace.
Read the passage and do the tasks below
In the heart of Florence in 1921, Guccio Gucci laid the foundation of the iconic empire with his exclusive leather shop Recognizing the significance of brand recognition, he meticulously crafted each piece, ensuring exceptional quality and an exclusive identity Gucci's unwavering dedication to excellence elevated his creations into coveted status symbols, synonymous with the pinnacle of luxury and desirability.
After Gucci died, his sons Aldo and Rodolfo took over the management and led the brand to iconic status in the 1950s They succeeded extremely well in promoting the brand to the rich and famous Fashionable celebrities such as Grace Kelly and Audrey Hepburn were counted among the enthusiastic collectors The Gucci took note of this popularity and expanded aggressively, opening stores in glamorous locations such as London, Paris and Palm Beach However, for all the glamour Gucci represented externally, there were increasing disagreements within the family Aldo and Rodolfo each had two sons who began pulling the brand in different directions in the eighties, and decisions made about product distribution affected the brand's reputation A strategy to increase distribution expanded the market to thousands of retailers, detracting from the brand's essence of exclusivity Eventually, retailers were selected more judiciously and the brand's reputation returned However, during this period of disagreement over distribution the brand went from headlines to sidelines, perceived as an old standard in the fashion world
MICROFINANCE 41 3.1 KEY TERM DEFINITIONS
VOCABULARY PRACTICE ON MICROFINANCE
Task 3: Choose the correct words with suitable verb forms to fill in the blanks
A protect B transfer C charge D access E float
F encounter G possess H grant I disclose J assess
1 Our local branch managers are encouraged to help local businesses and are authorized _ loans and overdraft
2 With standardized products, all customers are _ the same interest rate
3 Banks usually carefully study the financial situation of a company _ the risk involved in lending it money
4 These days many loans are made with _ or variable interest rates that change according to the supply and demand for money
5 With internet banking, it is possible _ money online from one account to another
6 Customers don’t have to worry about security; the bank uses sophisticated encryption technology _ their assets
7 Fines are being introduced to penalize people who do not _ their earnings from investments
8 Microfinance organisations often _ difficulties when lending larger sums as they have to conduct due diligence more thoroughly than the major banks
9 A current bank account pays little or no interest to the holders It allows the customer _ their money at any time
10 When the bank takes back the property that has not been completely paid for, it _ the house or flat
Task 4: Complete each sentence with correct form of the word in brackets
1 Banks always need liquidity, so they can’t lend all their money in loans with long _
2 The interest rate on a loan depends on how _ it is for the bank to lend the money (risk)
3 Electronic money provides more _ than cash because the lock function makes it difficult to steal (secure)
4 The small loans that are given under microfinance schemes often have a very high _ rate – most the borrowers pay the money back in full (pay)
5 It is a big responsibility to act as a _ for a loan; i.e., you are responsible if the loan is not paid back (guarantee)
6 Microfinance is hoped to help low-income people out of _ (poor)
7 The _ on who was eligible for a mortgage made it impossible for many low-income families to borrow money (restrict)
8 The bank will _ the customer for cutting short their loan (penalty)
Task 5: Choose the correct answer for each sentence
1 A _ refers to a small business which sells goods and/or services to a local area or a local market
A micro-store B micro-enterprise C microcredit D micro-business
2 _ is the properties or assets providing security to the lender in case the borrower fails to pay back the loan
3 All the restrictions that the bank places on their borrowers are known as _
4 _ refer to the products of banking, insurance, and investments that are provided by banks or financial institutions
A Investment portfolios B Financial services C Financial funds D Electronic transfers
5 _ is what customers pay the bank in return for its services
A Bank charge B Earnings C Revenue D Interest
6 A _ is an amount of money borrowed from a bank for a certain length of time, usually for a specific purpose
7 An _ is an arrangement to withdraw more money from a bank account than you have placed in it
8 When you make a private _, you make an arrangement for saving money to give you an income when you stop working
A pension plan B money transfer C statement D loan size
9 Microfinance is considered a tool for development and is not part of the charitable network
A socio-payable B socio-environmental C socio-cultural D socio-economic
10 There is less risk for a bank with a mortgage than with unsecured loans without _
11 The majority of customers prefer to do their _ banking at the bank
12 We offer standardized loans: you can be sure you won’t get less favorable terms and _ than our other personal customers
13 Banks generally know from experience how much cash to keep in their _ for customers who want to withdraw it
14 Borrowers can usually get a _ interest rate if the loan is guaranteed by securities or other collateral
A higher B long-term C riskier D lower
15 The Mondex system offers _ because the wallet and reader are easy to use
16 Mondex is used to transfer money between personal cardholders as well as from consumers to _
A retailers B depositors C POS device D the wallet
17 If you have poor _, it’s often difficult to get a loan unless you have a personal guarantor
A credit belief B debit trustworthiness C credit limit D credit rating
18 Grameen Bank is different from conventional banks because it does not charge a _ if you do not pay the loan back on time
19 A _ helps the customers to increase their income when they get retired
A switch plan B pension plan C retirement plan D maturity plan
20 It is increasingly common for companies to look at alternative ways to _ because banks are refusing credits
A support finance B collect credit C raise finance D earn finance
21 Despite sitting on a large number of orders, companies may still have _ problems if they have been unable to produce due to a period of downtime
22 Microfinance organizations who want to meet the growing demand for credit sometimes find it difficult because of _ on the amount they can lend
23 Age restrictions, identification requirements, and relatively low profitability of small _ accounts can make it difficult for providers to meet the needs of young people
24 Microfinance is the provision of financial services to _ people
A self-employed B low-income C wealthy D expiring
25 The original strategy of microfinance was _ oriented and anticipated eliminating poverty
A unbeneficial B non-profit C non-revenue D unprofitable
26 is a kind of a short-term bank loan offering money for household appliances
A Short credit B Consuming credit C Consumer credit D Long credit
27 As a rule, microcredit loans are not backed by collateral leaving no means of financial _ for the lenders if they are not repaid
28 The goal of microfinance is to ultimately give impoverished people an opportunity to become _
A self-disciplined B self-confident C self-esteem D self-sufficient
29 In terms of return, as a provider of debt _, the return for us is merely the interest that we are paid on the loan
30 Banks would start taking too many _ if they could always be sure of rescue by the central bank
31 Organizations use the money markets as an _ to borrowing from banks
32 A long-term bank loan has a _ of more than 5 years and it is a(n) secured loan
33 A person is a 'known risk' when he/she has a _ of previous borrowings, and so will be categorized as a low risk compared to people with no assets or credit history
A historical credit B credit limit C credit history D credit loan
34 The reasons why low- income people lack access to traditional banks mainly because they do not have the assets served as _
35 _ banking services include current accounts, savings accounts, credit facilities, insurance and the ability to transfer funds across borders
A Luxurious B Low-income C Traditional D High
SECTION 2 LANGUAGE USE IN A WIDER CONTEXT
PASSAGE COMPLETION
Read the passage and choose the correct words to fill in the blanks
What is equity finance and is it right for your business?
Raising capital for a start-up or to expand your existing business is always challenging If bank (1) _ are not the answer, or not the whole answer, seeking equity finance can be another possible option Unlike lenders, such as banks, equity finance (2) _ don’t usually have the legal right either to charge interest or to be repaid by a particular date They invest capital in a business on a medium- or long-term (3) _ in return for a share of the ownership of the business, and perhaps also some element of control Return on the investment comes in the form of (4) _ payments and will depend on the growth and profitability of the business The two main providers of equity finance for private businesses are venture capitalists (VCs) and business (5) _ (BAs)
Venture capitalists are likely to be interested in high-growth business which are destined eventually for sale or flotation on the (6) _ market They can supply large sums of equity finance and may also provide considerable added value in the form of advice on strategy and management (7) _ However, securing a deal with a VC is invariably a demanding and time-consuming process and to compensate for their (8) , VCs also often drive a very hard bargain You might find yourself having to give up a greater share of the company than you originally expected in order to secure a VC deal This may ultimately be to your (9) in cash terms: for example, you could end up owning 65% of your company instead of 100%; but if the VC investment has resulted in significant growth, then your new stake will soon be (10) considerably more than the old On the other hand, VC investors are not generally interested in micro-managing your company and the help, advice and contacts they will bring as much as the investment capital itself, could, to a great extent, define your future
Read the passage and choose the correct words to fill in the blanks
In New York, people are always asking me the same question," Alexandre de Lesseps says: ‘Why do you want to (1) _ money to poor people in developing countries?’ Mr de Lesseps, an international investment banker, has a ready answer, "The only way to solve the problems of (2) _ and terrorism in the world today," he says, " is though investment." As a co-owner of BlueOrchard Finance, a (3) _ bank in Geneva, he is one of the leading figures in the world of microfinance His firm manages a fund that currently makes about $50 million in short-term (4) _ to microcredit lending institutions in more than 20 developing countries around the world, and BlueOrchard and its investors make a profit in the form of (5) _ payments on the loans that they make to such institutions Micro-finance institutions typically make loans in (6) _ of $1,000 or less to poor people in developing countries who are ignored by commercial banks As a rule, microcredit loans are not (7) _ by collateral, leaving no means of financial recovery for the lender if they are not repaid But leading microcredit (8) _ claim that only five per cent of the loans they make are never repaid This compares with five to ten per cent in the consumer finance industry for borrowers with bad credit (9) _ Just less than $500 million is committed to microcredit loans worldwide, according to BlueOrchard's estimates But Mr de Lesseps says he believes that today the total (10) _ for such loans may be nearly $3 billion
Read the passage and choose the correct words to fill in the blanks
The 1990s saw accelerated growth in the number of microfinance institutions created and an increased emphasis on reaching scale In Bolivia, BancoSol pioneered the (1) _ of microfinance institutions to domestic and international financial markets and to for-profit investors Internationally, a microfinance (2) began to develop Attention was given to developing appropriate regulation and supervision for formal sector microfinance institutions Regulated nonbank microfinance (3) _ were developed in some countries Rating agencies for t microfinance institutions began operation Channels for disseminating information about best practices in (4) _ microfinance proliferated Teaching programs on commercial microfinance were instituted, drawing participants from around the world And worldwide (5) _ of microfinance practitioners were formed
By the late 1990s, commercial microfinance had evolved into a burgeoning industry, with BRI's microbanking system and BancoSol emerging as pioneers in sustainable, large-scale operations These institutions established innovative management, organizational structures, and knowledge systems, enabling them to achieve self-sufficiency and provide profitable microfinance services on a national scale Their success inspired both emulation and competition within their own markets, as well as the adaptation and extension of their methods in other developing countries.
Read the passage and choose the correct words to fill in the blanks
Micro finance refers to the provision of (1) _ financial services such as small loans, small savings, micro insurance and funds transfer facilities extended to socially and economically poor and disadvantaged (2) _ of the society to enable them to increase their income levels and improve standard of living The main aim of microfinance is to provide small loans to poor people particularly living below (3) _ line, who are not able to raise loan for productive purposes from other sources and to improve their standard of living by increasing their (4) _ and saving covering associated risks
The poor people need minimum financial services They need to open saving bank account in the bank to keep and multiply their small savings by carrying out (5) _ activities and getting small loans from banks to purchase the assets and increase the level of their activities In order to cover the life and activities (6) _, they require micro-insurance facilities They also require funds deposit and transfer facilities at their nearby places In order to improve the quality and earning, they need some basic training (7) _ The provision of these minimum financial services is covered in microfinance Thus, Microfinance refers to the movement in the entire world where in low income households have some (8) _ to the basic affordable financial services from banks or financial institutions to finance their productive economic activities, create assets, (9) _ income after meeting expenses to save some net surplus and also to protect their life and activities against various hazards and risks
According to International Labour Organization, “Microfinance is an economic development (10) _ that involves providing financial services through institutions to low income clients”
READING COMPREHENSION
Read the passage and do the tasks below
Today, with a Noble Prize to its credit, Grameen is one of the largest microfinance organizations in the world It started out lending small sums to poor entrepreneurs in Bangladesh to help them grow from a subsistence living to a livelihood Grameen's approach, unlike other micro-financers, uses the group-lending model Costs are kept down by having borrowers vet one another, tying together their financial fates and eliminating expensive loan offices entirely The ultimate promise of Grameen is to use business lending as a way for people to lift themselves out of poverty Recently, Grameen has taken on a different challenge by setting up operations in the US Money may be tight in the waning recession, but it is still a nation of
Globally, the working microfinance equation consists of borrowing funds cheaply and keeping loan defaults and overhead expenses sufficiently low Microlenders, including Grameen, do this by charging colossal interest rates-as high as 60% or 70% which is necessary to compensate for the risk and attract bank funding But loans at rates much above the standard 15% would most likely be attacked as in America Grameen America believes that in a few years it will be successful and turn a profit, thanks to 9 million US households untouched by mainstream banks and 21 million using the likes of payday loans and pawn shops for financing But enticing the unbanked won't be easy After all, profit has long eluded US microfinanciers and if it is not lucrative, it is not microlending, but charity When Grameen first went to the US, in the late 1980s, it tripped up Under Grameen's tutelage, banks started micro loans to entrepreneurs with a shocking 30% loss But Grameen America says that this time results will be different because Grameen employees themselves will be making the loans, not training an American bank to do it More often than not, the borrowers, Grameen finds, in the US already have jobs or side businesses selling toys, cleaning houses, etc
The loans from Grameen, by and large, provide a steadier source of funding, but they don't create businesses out of nothing More importantly for many entrepreneurs, group members are tremendous sources of support to one another
Choose the correct answer for each case
1 What has adversely affected the success of microfinance institutions in the US?
A The focus of these institutions is on making a profit at any cost instead of being charitable to the needy
B American banks engaged in microlending were the most severely hit during the recession
C Widespread perception among bankers that these institutions are better suited to developing countries
D Their failure to attract those outside the formal banking system as customers
2 Why has Grameen made a second attempt to launch itself in the US?
A The realization that a large percentage of the American population not reached by mainstream banks can be tapped
B The willingness of US banks to provide the necessary staff and funds to facilitate the spread of microfinance
C The rates of interest on loans in the US are exorbitant making it easier to recover capital
D Recognition of the fact that disbursing credit in developing countries doing the recession is too risky
3 Which of the following can be inferred from the passage?
A Microfinance has been successful only in Asian
B There is scope for microfinance institutions to be profitable in developed countries
C Microfinance makes individual borrowers dependent rather than independent
D America has the largest number of banks in the world
4 What has enhanced the likelihood of success for Grameen America at present?
A Its success in Bangladesh and other developing counties
B Absence of other microfinance institutions for competition
C The fact that America is currently in the midst of recession
5 Which of the following can be said about Grameen?
A Its success in developing countries will ensure its success in developed countries
B It ensures that the poor in developing countries enjoy a subsistence standard of living
C It has demonstrated that the poor are far more likely to repay loans than the affluent
D The loans from Grameen can be used for funding are not necessarily the only mean to create businesses
Do the following statements agree with the information given in Passage 1? Write:
TRUE if the statement agrees with the information
FALSE if the statement contradicts the information
NOT GIVEN if there is no information on this
6 Microfinance institutions in the US succeed to attract those outside the formal banking system as customers
7 Although recognizing the fact that disbursing credit in countries experiencing the recession is too risky, Grameen has made a second attempt to launch itself in the US
8 There is a scope for microfinance institutions to be profitable in developed countries
9 In the late 1980s, banks that under Grameen's tutelage started to turn a profit after that shocking loss
10 The loans from Grameen can be used for funding are not necessarily the only mean to create businesses
Read the passage and do the tasks below
Hedge funds are private investment funds which are only open to a limited range of investors, the number of which is determined by its regulators, but is restricted by law to no more than 100 investors per fund They are special in that they are exempt from many of the rules and regulations governing other mutual funds, and this allows them to undertake a wider range of trading activities and employ more aggressive strategies than are normally permitted As a consequence of the restricted number of investors, most hedge funds set an extremely high minimum investment amount, ranging from $250,000 to as much as $1 million Investors also have to pay an annual performance fee to the Investment Manager, as is standard practice for mutual funds; however, hedge funds also collect a percentage of the profits (usually 20%) The underlying philosophy of hedge funds which originated on Wall Street in the 1940s as an investment option for the extremely wealthy, is wealth preservation They operate on the principle of absolute return, of making money on an ongoing basis, regardless of market fluctuations This is an attractive proposition for investors and hedge fund activity has increased greatly over the last 15 years
Short selling was one of the strategies employed by billionaire businessman and hedge fund manager George Soros which generated an estimated $1.1 billion for his hedge fund, the
‘Quantum Fund’, in 1992, forcing the pound out of the European exchange mechanism in the process It is a technique for profiting from the falling price of stock and involves borrowing a security from a broker and selling it with the understanding that it must later be bought back (hopefully when the market has dropped and at a lower price) and returned to the broker
Derivatives serve as financial instruments used by fund managers for hedging purposes These contracts speculate on the future prices of assets through agreements for future trading at predetermined prices The parties involved (buyer and seller) assume varying levels of risk, relying on market fluctuations to determine whether they will gain or lose based on the asset's value movement relative to the agreed-upon price.
‘Options’ and ‘futures’ are common currency in derivatives trading A ‘future’, or forward contract, is formed when both the buyer and the seller are committed and legally obliged to exchange the asset when the contract matures An ‘option’, on the other hand, is a contract that gives its owner the right, but not the obligation, to buy or sell the asset on or before a given date at the agreed-upon price Leveraging, that is borrowing money to increase the fund’s trading capacity, is also common practice for hedge funds There are obvious associated risks; however, leveraging can increase the shareholders’ return on their investment and often there are additional tax advantages associated with borrowing
(Business English Review,2010) Choose the correct answer for each case
1 Why does the minimum investment for a hedge fund tend to be high?
A They are an investment mechanism only for the very wealthy
B The amount is determined by the fund’s regulators
C This includes the Fund Manager’s fee
D The number of investors is restricted
2 According to paragraph one, what is the principal characteristic that distinguishes hedge funds from other types of mutual fund?
A Investors have to pay the Fund Manager an annual performance fee
B Hedge funds are less regulated and can engage in a broad range of trading activities
C There is a minimum investment amount on trading activities
D Hedge funds tend to employ a less aggressive investment strategy
3 According to paragraph two, what does the principle of ‘absolute return’ entail?
A Maximizing profit as the market fluctuates
B Setting the losses off against the profits as the market fluctuates
C Always making a profit whether the markets move up or down
D Accepting heavy losses for the sake of even more substantial future gains
4 What does the technique of short selling depend on in order to make a profit?
A The fund’s borrowed securities have to increase in value before the fund sells them on
B The fund’s borrowed securities have to fall in value before the fund buys them back
C The fund must only buy securities that have fallen in value
D The fund has to sell securities as soon as they rise in value
5 When hedge funds buy or sell derivatives, what are they gambling on?
A Only the market that will definitely rise in the future
B Only the market that will definitely fall in the future
C International exchange rates that will definitely fall
D The price of certain commodities or assets in the future
Fill in the summary with ONE WORD taken from Passage 2 for each blank
Hedge funds originated on Wall Street in the 1940s as an investment option for the extremely wealthy They operate on the principle of absolute return, of making money on an ongoing basis, regardless of (6) Most (7) set an extremely high minimum investment amount, ranging from $250,000 to as much as $1 million
Short selling was one of the (8) employed by billionaire businessman and hedge fund manager George Soros which (9) an estimated $1.1 billion for his hedge fund
Leveraging, that is borrowing money to increase the fund's trading capacity, is also common practice for hedge funds They are essentially contracting that gamble on the future prices of assets by making a contract for future trading at a (10) price
Read the passage and do the tasks below
An understanding of the degree of poverty in a country helps in estimating the size and needs of the potential market for microfinance services and may also help to clarify or establish an MFI’s or donor’s objectives An important consideration when providing microfinance services is the existence of adequate infrastructure (roads, communications facilities, water and sewer systems) and of affordable social services such as health, education, and nutrition
“Improving rural roads and electricity, or providing matching grants for village- determined investments such as watershed management, to increase the earnings capacity of poor households is often more cost-effective than providing financial services, particularly where infrastructure is underdeveloped Similarly, providing or upgrading rural primary education and health facilities can achieve longer-term benefits for the rural poor, especially for the poorest of the poor, by increasing the productivity of labor, the main asset of the poor.” (Yaron, Benjamin, and Piprek 1997, 42)
A lack of roads, electricity, communication facilities, and other infrastructure will affect the means by which an MFI and the micro enterprises it supports operate and should be taken into consideration by both donors and practitioners Identifying the availability of and access to social services for an MFI’s client base helps to determine whether clients’ needs for services are being met and whether the objectives of the MFI are suitable (that is, whether the MFI can provide only financial services while other governmental organizations and NGOs provide other needed services) For example, the availability of education and health services greatly influences the capacity of micro entrepreneurs to increase their enterprise activities Any provision of financial services to the poor should consider the availability of other non-financial services and the environment in which the MFI and the clients operate
Some MFIs form relationships with other service organizations to coordinate the provision of financial services, non-financial services, or social services, taking advantage of the comparative strengths of each organization However, it should be noted that the provision of social services such as health, education, and family planning should not be directly combined with the provision of financial services
(Ledgerwood, 2011) Choose the correct answer for each case
1 What is necessary for MFIs to do when estimating the size and needs of the potential market?
A To comprehend the depth of poverty in the country in which they are operating
B To conduct research on the degree of a country in which they are operating
C To clarify the prospective objectives which they are operating
D To provide an adequate infrastructure (roads, communications facilities, and so on)
2 What is not considered more cost-effective than providing microfinance services?
A Upgrading rural primary education and health facilities
B Providing matching grants for village-determined investments
C Increasing the earnings capacity of poor households
D Improving the quality of service for accounts, home mortgages, and other types of loans
3 What has a significant impact on microentrepreneurs' ability to expand their business activities?
A The availability of education and health services
B A lack of communication facilities and other infrastructure
C The availability of and access to financial services
D The client’s needs for services
4 What is not the purpose of creating relationships between some MFIs and other service organizations?
A To consider the availability of other non-financial services and the environment
B To coordinate the supply of financial services or social services
C To cut down on the administrative costs
D To capitalize on each organization’s comparative strengths
5 According to the final paragraph, what services should not be directly combined with the provision of financial services?
A Health, education, and family planning
B Roads, communications facilities, and sewer systems
D Research and development, and legal services
Do the following statements agree with the information given in Passage 3? Write:
TRUE if the statement agrees with the information
FALSE if the statement contradicts the information
NOT GIVEN if there is no information on this
6 A nation should take into account social services if they wish to provide microfinance services
7 According to Yaron, Benjamin, and Piprek, there is no need to upgrade primary education in rural areas
8 Insufficient infrastructure can influence the operation of an MFI and micro enterprises
9 The relationships between some MFIs and other service organisations are considered to be useless
10 There is no direct relation between the provision of social services and that of financial services
Read the passage and do the tasks below
Microfinance, once considered an unconventional business model for supporting marginalized communities, has experienced a dramatic transformation Driven by substantial investments from major financial institutions, private equity firms, and pension funds, the industry has witnessed unprecedented growth, reaching annual rates of 30-40% This surge in funding has fueled the expansion of microfinance as a viable means of empowering impoverished women through income-generating activities like ceramics production and farmers through livestock acquisition.
1998, a non-profit microfinance organisation in Peru, converted into bank (called Mibanco) This demonstrated that the poor Eire good risks who repay lotions on time and getting them together, not only chips away at poverty but also turns a profit The success of Mibanco has piqued the interest of commercial banks, which had previously shunned the countries poor Now big banks are going after Milbank's clients with low-rate loans and realising it likes special know how to work with the unbanked Eire hiring away Milbank's staff But with the emergence of players who are only out for profit, microfinance schemes could end up milking the poor
This could happen in countries where lenders don't have to disclose interest rates When a Mexican micro financer went public, revealing its loans had rates of about 86% annually, the
CORPORATE SOCIAL RESPONSIBILITY (CSR) 59 4.1 KEY TERM DEFINITIONS
VOCABULARY PRACTICE ON CSR
Task 3: Choose the correct words with suitable verb forms to fill in the blanks
1 Organisations have benefited by _ strategic approaches to environment and social issues
2 The introduction of stringent rules and heavy fines has led to less waste being _ into the sea
3 Why should these giant corporations, whose primary purpose for existence is profits for their shareholders, be concerned with becoming good global citizens?
4 Governments can legally limit the amount of carbon a company can emit by _ it
5 CSR can seem to have ownership of a vast number of issues, from work-life balance to procurement policies for suppliers and contractors to customer service
6 Many companies develop community projects _ negative impact or ‘give back’ to the community and local workforce
7 Companies are often requested _ their stance on environmental issues
8 Greenwashing is marketing or promotion that falsely claims that the product, service or company is environmentally friendly
Task 4: Complete each sentence with correct form of the word in brackets
1 CSR lays the _ of companies’ ethics, principles, and values (found)
2 Minimizing the company’s _ impact, particularly around highly visible aspects of its operations, is a particularly popular tactic (environment)
3 If the CEO had not admitted _ at the last minute, our manager would have come under suspicion (wrong)
4 The company has been making every effort to get rid of age and gender _ (crime)
5 It faces the most serious charges of professional _ yet brought against a big accountancy firm, with claims that it deliberately concealed evidence of fraud (conduct)
6 Some people argue that companies have to be careful never to cheat customers, but for purely business reasons, rather than ones: disappointed customers will not buy any more of your products in future (ethic)
7 Shell views openness and transparency as an essential part of the long-term energy _ for the global business environment (solve)
8 For a company to be socially responsible, it first needs to be _ to itself and its shareholders (account)
9 The EU’s Electronic Equipment Directive makes manufacturers responsible for the collection and _ of electronic products (dispose)
10 People are going to want, and be able, to find out about the _ of a brand, whether it is doing the right things socially, economically, and environmentally (citizen)
Task 5: Choose the correct answer for each sentence
1 CSR is about conducting business in a way that meets or goes above the _ that any one society has of a business
2 Corporate codes of conduct are explicit _ of a company’s values and standards of behavior
3 CSR helps to reduce the environmental _ of business activities and improves overall working conditions
4 The four key to the BBC's CSR policy focus on the impact the organization has on the community, the physical environment, the marketplace, and the workplace
5 Community investment covers a whole range of _, including running health programmes, sponsoring schools, employee volunteering schemes, etc
6 Corporate giving is more easily dismissed as a _ than other forms of corporate social responsibility
A PR promotion B PR commercial C PR exercise D PR betrayal
7 We need to examine how much packaging _ we produce
8 Our new green _ can be included as part of our re-branding exercise
9 CSR is nothing more than a PR (Public Relations) exercise, designed to communicate a positive image of the company to the world
10 He argues that corporate _ transforms the culture of the firm concerned
11 Accountability reports are standard practice nowadays but a business can always find ways to hide _ activities
12 People who make _ insurance claim are liable to procurement
13 The business of business should not be about money, it should be about _, i.e., it should be about public good, not private greed
14 CSR has built-in incentives for hypocrisy because when businesses face a(n) _ between making money and social responsibility, making money tends to prevail
15 We are committed to the highest ethical _ and to promoting our medications only for approved uses
16 There were questionable ethical _, including whether he helped a company that hired his brother as a lobbyist
17 They tightened the city’s ethics _ after a string of ethical lapse came to light, including city managers hiring their relatives
18 The code of professional conduct requires directors to act with _ and probity, and to accept that failure to comply carries the threat of fines
19 We are totally _ about the methods that we use, so it would be hard for us to hide the fact if we were not giving the correct numbers in our findings
20 The Social Venture Network applies capital to enterprises that reduce poverty and advance social _
21 Different individual self-interests can have a negative effect on corporate profits and hence reduce overall social _
22 The federal government is facing a harder time obtaining resources to fund social _
23 The federal government is facing a harder time obtaining resources to fund social _
A bear-eat-bear B bull-eat-bull C dog-eat-dog D cat-eat-cat
24 CSR lays the foundations of companies' ethics, principles and _, helps to reduce the environmental impact of business activities and improves overall working conditions
25 Some CSR professionals argue that the measurement of the _ relative to the efficient provision of customer service is the correct definition of the role of CSR
A life-work balance B work-life comparison C work-life balance D life-work statement
26 Business should avoid participating in _ that are not related to their core business focus or that violate the company’s ethical standards in any way
A charitable issues B charity behaviors C charitable efforts D donation issues
27 With the 24/7 media world, more companies are being brought to account for how they do their business, especially those involved in any _ scandals
28 Businesses are increasingly aware of the importance of social and environmental issues for their _
29 Individuals and companies are increasingly aware of their carbon _ and take measures to reduce it
30 The reality of CSR for most organizations is that it is only and consequently almost meaningless
A face-deep B skin-deep C finger-deep D bone-deep
SECTION 2 LANGUAGE USE IN A WIDER CONTEXT
PASSAGE COMPLETION
Read the passage and choose the correct words to fill in the blanks
How to be good in all areas
Designing and implementing effective corporate social responsibility (CSR) programs requires clarity and alignment within organizations Embedding integrity and accountability across company culture, strategy, and operations is crucial BSR, a US non-profit advisory organization, provides guidance for businesses to create a comprehensive CSR management framework, outlining the process for developing and executing these initiatives.
Implementing a comprehensive CSR management system is a complex and long-term endeavor that requires a fundamental shift in a company's operations, akin to implementing other large-scale change initiatives such as total quality management Despite the efforts of organizations like the one referenced in the article, which advises its members on integrating responsibility into their strategies, only a few companies have fully established such systems The recent scandals in the US have highlighted the limitations of taskforces and codes of conduct, which are insufficient on their own and can even serve as a smokescreen for questionable practices.
The guide runs through basics such as who currently has responsibility for CSR in the company, why a better management (8) _ might improve things and what hot-button" issues (child labor, drug pricing) face different sectors It encourages companies to think hard about their (9) _, what their concerns are, how credible and influential they are and whether they are a potential (10) _ partner or a liability
3 A successive B one-to-one C followable D step-by-step
10 A interval B long-term C unsustainable D accountable
Read the passage and choose the correct words to fill in the blanks
Eco-efficiency was a phrase coined by the Business Council for Sustainable Development to describe the need for companies to improve their (1) _ as well as economic performance Minimizing the company’s environmental impact, particularly around highly (2) _ aspects of its operations or in areas where it makes financial savings, is a particularly popular tactic amongst companies whose products are inherently (3) _ to the environment For example, an oil company installing (4) _ panels on the roofs of its petrol stations and reducing the carbon emissions of its operations whilst remaining committed to a continual increase in oil and gas production
(5) _ to charities is a simple and reputation-enhancing way for a company to put a numerical value on its CSR ‘commitment’ McDonald’s network of Ronald McDonald Houses to
‘improve the health and (6) _ of children’, and BP’s sponsorship of the National Portrait Award are two high-profile examples Because it’s easy and very PR friendly, corporate giving is more easily dismissed as a PR (7) _ than other forms of CSR In an effort to respond to this criticism companies are shifting to making larger donations to a smaller number of charity partners and combining giving with other activities
(8) _ marketing, such as Tesco’s highly successful ‘computers for schools’ promotion, is a partnership between a company and a charity, where the charity’s logo is used in a marketing campaign or (9) _ promotion Companies choose charities which will attract target consumers The charity gains money and profile, and the company benefits by associating itself with a good cause as well as increasing product sales
Corporate-sponsored award schemes such as the Reebok Human Rights Awards and Nestle's Social Commitment Prize serve as high-profile examples These schemes enable companies to establish their expertise on a particular issue and position themselves as leaders in corporate social responsibility By making substantial donations, they effectively leverage the award platform to enhance their reputation without necessarily engaging in tangible sustainability efforts.
8 A Sponsoring-related B Community-related C Cause-related D Corporate-related
Read the passage and choose the correct words to fill in the blanks
Ethicality should permeate every aspect of a company, exceeding mere policies It should be deeply ingrained in the company's culture, ensuring ethical conduct regardless of consequences Establishing a robust system of accountability, through checks and balances and effective reporting mechanisms, is crucial for upholding ethical principles and defining the consequences of violations.
The (4) _ to effectively establishing an ethical culture, and to every element of developing a good corporate image, is good communication This part of image development (5) _ not only to a company’s management and lower level employees, but also to external stakeholders (such as customers, vendors, shareholders, etc.) and the public in general Strong consideration should be given to developing a separate strategic communication plan to (6) _ out this task However, in order for communication to be successful, your corporate image must be clear and consistent with the products and services you have to offer, the benefits you provide to your target audience and how you (7) _ them If your positioning statement indicates that your products are aimed at retirees, for example, then you must make sure you are communicating with retirees: your corporate image must (8) _ on this audience
It is essential at all costs to maintain your credibility in the market and in the minds of your customers by (9) _ that you do what you say you will do If you are a charitable organization, for example, then spending thousands of dollars on elaborate conferences and high- end salaries will end up (10) _ your image Similarly, if you are trying to create an image of environmental concern, you will need to invest in ensuring that your products or services have impeccable environmental credentials
Read the passage and choose the correct words to fill in the blanks
Due to international (1) _ on the need to reduce carbon emissions and fossil fuel (2) _, businesses have been forced to consider ways to reduce them The ultimate aim is for all businesses to operate out of (3) _ buildings These days designers have to come up with different ways of incorporating energy (4) _ into the fabric of a building, using only clean energy such as solar or wind power These green buildings should then be easier and cheaper to operate and (5) _
Despite earlier reservations due to high costs, companies have become more receptive to green energy and buildings Advancements have made these buildings comparable to conventional ones in terms of efficiency Furthermore, green buildings offer significant returns on investment, improving employee well-being and productivity, resulting in lower staff turnover Moreover, they attract tenants and command higher rents, demonstrating their financial viability as an investment.
If a company is not in line for purchasing a new building, then older buildings can be retrofitted with (10) _ technologies However, the misconception that this investment is not financially viable has meant that once again, the take-up has not been as successful as governments might have hoped it would be
(Cambridge BEC 5 Higher Students’ Books, 2016)
8 A cost-consuming B cost-effective C cost-related D cost-resulting
READING COMPREHENSION
Read the passage and do the tasks below
The corporate conscience: Sherron Watkins, Enron whistleblower by Lesley Curwen
Sherron Watkins, one of the world's best-known whistleblowers, made global headlines in 2001 for telling her boss, Ken Lay, that Enron was mired in accounting fraud
Back in 1996, Watkins was working with Andrew Fastow, the Chief Financial Officer later convicted of fraud, when she began to witness aggressive accounting “I was starting to see Andy Fastow cross the line”, she says, claiming he asked her to lie to one of Enron's partners about an investment “It should have been a huge warning flag”, she admits It merely prompted her to move to a different part of the empire, Enron International, where she later became a vice- president All this time, Harvard graduate Jeffrey Skilling had been growing in influence at Enron, reinventing what it did for a living to include power trading, selling retail electricity and even the provision of broadband internet services In 2001, he became Chief Executive Officer
By mid-2001, Watkins was working for Fastow again This time, she stumbled across evidence of massive accounting fraud "I thought, I have got to get out of here I can't work for a company that is doing this I'm gonna work up the guts, if I can, to confront Jeffrey Skilling on my last day” But soon after, Skilling resigned unexpectedly, for what he said were personal reasons
So Watkins sent an anonymous memo to the man who'd taken the helm, the founder and Chairman, Kenneth Lay Later, she met Lay to convey her fears face to face, Enron began an inquiry, but it failed to use independent investigators, and her claims were largely dismissed Shortly after Enron, the world's biggest energy trader and once the seventh-biggest company in America, filed one of the biggest US bankruptcy cases to date Thousands of workers lost their jobs and their pensions invested in its shares, and other investors lost billions of dollars Watkins never took her concerns outside the company, to the financial regulator or a third party Why not? 'When a company cooks the books, it rarely has a chance of surviving, but to do that, it has to come clean itself, to admit its problems and re-state its financials I felt here was Enron's chance to come clean’ Watkins now gives lectures about corporate ethics
(Dubicka & O’Keefle, 2011) Choose the correct answer for each case
1 According to the passage, who is a whistle-blower?
A Someone who behaves illegally or immorally in order to get promotion
B Someone who sells company secrets and commercial information to rival organizations
C Someone who reveals dishonest or illegal practices at the place where they work
D Someone who gives advice to act unethically in their business
2 What type of wrongdoing did Sherron Watkins expose?
B She exposed illegal and fraudulent marketing of a drug
C She exposed the nepotism of the company
D She took the company to court
A She supervised the marketing department
B Via a memo and a talk to the founder and Chairman
C She took the company to court
D She took the Chairman and the Board of Director to court
4 What did Enron’s bankrupt cause?
A Thousands of workers lost their jobs and their pensions invested in its shares
B Other investors lost billions of dollars
D None of these is correct
5 What does Watkins give lectures about now?
A Financial strategic planning B Corporate ethics
Do the following statements agree with the information given in Passage 1? Write:
TRUE if the statement agrees with the information
FALSE if the statement contradicts the information
NOT GIVEN if there is no information on this
6 Ken Lay asked Sherron Watkins to lie to one of Enron's partners about an investment
7 Sherron Watkins became a vice-president of another company after she recognized what Andy Fastow did
8 Sherron Watkins’s allegations about Jeffrey Skilling were approved by the chairman of Enron
9 According to Eron's vice president, a corporation that falsifies its books has a slim chance of surviving
10 Watkins never addressed her concerns to a third party or the financial authority outside of the corporation
Read the passage and do the tasks below
Corporate social responsibility and sustainability are ethical choices that companies make about how they do business There must be limits to our consumption of natural resources, and that business activities must take greater account of this impact on society and economies, as well as the environment in which we live The corporate sector is in a position of unparalleled dominance and that the global resources of a rising number of multinational companies dwarf many of the national economies in which they operate
Market liberalization and privatization have created new global markets, and extended the role of the private sector As a result, businesses are now heavily involved in public policy issues throughout the world For these reasons, businesses must be accountable - not just to shareholders but to consumers, employees and other stakeholders As corporations continue to grow in power, their responsibility grows too, increasing the number of ethical considerations they must face
These issues present major challenges for the role of marketing A more holistic, inclusive approach across the business is required to safeguard the brand’s intangible assets Marketers may aim to establish whether they can connect with customers in a way that extends the marketer’s role beyond merely communicating the offer to prospective buyers
In a world where intangible assets and corporate reputation are critical components of corporate success, it is inevitable that these newer approaches to marketing are becoming involved with ethics and sustainability issues There are tangible benefits to be gained in product development, innovation and competitive advantage when broader sustainability and ethical considerations are taken into account But if marketing is about selling more and sustainability is about consuming fewer resources and producing less pollution, how on earth are marketers supposed to pursue both goals at the same time?
Perhaps it’s easy to overestimate the depth and scale of the opposition between these goals - and to underestimate the degree to which marketers can align traditional corporate objectives with those of ethics and sustainability Marketing’s core role is to align what the business produces to what the market wants - the route to increased sales
It all means that the firm must invest money, people and resources only in the things that add value for customers It requires the business not to waste any effort, money or resources doing things that don’t add value for users Responsible marketing, in other words, ia actually all about helping business avoid and eliminate waste, as well as continuing to manage natural or man-made resources It is an important role for marketers and one that has not been fully recognized or appreciated in terms of potential to create innovative solutions
Choose the correct answer for each case
1 What change does the first paragraph mention?
A A decrease in the size of certain economies
B A growth in knowledge of how resources affect economies
C A decrease in the resources available to companies
D A growth in the number of choices available to companies
2 According to the second paragraph, businesses are now encountering _
A a wider range of obligations B greater public criticism
C problems they should have foreseen D an increase in internal disagreement
3 In the third paragraph, it is suggested that marketers _
A should devise stricter social and financial categories
B need to attract new categories of customers
C should have a greater input in the design of products
D need to expand their areas of activity
4 What development is mentioned in the fourth paragraph?
A Product design is becoming secondary to ethical considerations
B A company's reputation is growing in importance over its brands
C Ethical considerations can lead to effective innovation
D Competitiveness is becoming harder to maintain over time
5 What comment is made in the fifth paragraph?
A The challenge facing marketing may be impossible in the long term
B Marketing activity should move away from traditional goals
C Conflicts confronting marketing may be less extreme than expected
D Marketing should focus on promoting goods which last longer
Fill in the summary with ONE WORD taken from Passage 2 for each blank
Companies' ethical decisions regarding how they do business are referred to as corporate social responsibility and (6) Our consumption of natural resources must be limited, and economic operations must consider the influence on society and the economy, as well as the environment in which we live The involvement of the private sector has grown as a result of the market (7) and privatization As a result, firms are more interested in global public policy concerns Businesses must be accountable for these reasons, not just to shareholders, but also to consumers, employees, and other stakeholders As companies get more powerful, so do their responsibilities Newer marketing approaches are becoming involved with ethics and sustainability issues There are (8) to be gained in product sustainability is about consuming fewer resources, how on earth are marketers supposed to pursue both? Marketing's core role is to align what the business produces to what the market wants - the route to (9) Perhaps it's easy to overestimate the depth and scale of the opposition between these goals and those of ethics, sustainability, and good corporate governance for society at large Responsible marketing is all about managing and (10) , as well as managing natural and man-made resources It requires the business not to waste any effort, money, or resources doing things that don't add value for users The role of marketers is one that has not been fully recognized or appreciated in terms of the potential to create innovative solutions
Read the passage and do the tasks below
The Social Responsibility of The Corporate Sector
Nowadays, governments and companies need to account for the social consequences of their actions As a result, corporate social responsibility (CSR) has become a priority for business leaders around the world When a well-run business applies its vast resources and expertise to social problems that it understands and in which it has a stake, it can have a greater impact than any other organization The notion of license to operate derives from the fact that every company needs tacit or explicit permission from governments, communities, and numerous other stakeholders to justify CSR initiatives to improve a company's image, strengthen its brand, enliven morale and even raise the value of its stock
To advance CSR, we must root it in a broad understanding of the interrelationship between a corporation and society Successful corporations need a healthy society A healthy society creates expanding demand for business as more human needs are met and aspirations grow At the same time, a healthy society needs successful companies No social program can rival the business sector when it comes to creating the jobs, wealth, and innovation that improve standards of living and social conditions over time
Consider Whole Foods Market, whose value proposition is to sell organic, natural, and healthy food products to customers who are passionate about food and the environment The company's sourcing emphasizes purchases from local farmers Buyers screen out foods containing any of nearly 100 common ingredients that the company considers unhealthy or environmentally damaging Whole Foods' commitment to natural and environmentally friendly operating practices extends well beyond sourcing Stores are constructed using a minimum of virgin raw materials Spoiled produce and biodegradable waste are trucked to regional centers for composting Whole Foods' vehicles are being converted to run on biofuels Even the cleaning products used in its stores are environmentally friendly And through its philanthropy, the company has created the Animal Compassion Foundation to develop more natural humane ways of raising farm animals In short, nearly every aspect of the company's value chain reinforces the social dimensions of its value proposition, distinguishing Whole Foods from its competitors
(IELTS Recent Actual Tests and Suggested Answers, 2020) Choose the correct answer for each case
1 What has business leaders around the world prioritized first?
2 Why does every company need a license to operate or tacit or explicit permission from governments, communities, and numerous other stakeholders?
A To justify CSR initiatives to improve a company's image
B To make CSR activities apparent
C To decrease the external disagreement
D To decrease the internal disagreement
3 Why do successful corporations need a healthy society?
A Drives of pressure motivate companies to address CSR
B It boosts the need to attract new categories of customers
C It is easier to implement CSR activities
D It creates expanding demand for business as more human needs are met
4 What can successful companies do for society that no social program can?
A Make CSR unique initiatives B Upgrade living standards
C Create the jobs and innovation D Cope with social evils
5 How does Whole Foods Market handle with spoiled produce and biodegradable waste?
A They are poured over the sea
B They are trucked to dumping ground
C They are trucked to regional centers for composting
D They are reproduced and sold with lower price
Do the following statements agree with the information given in Passage 3? Write:
TRUE if the statement agrees with the information
FALSE if the statement contradicts the information
NOT GIVEN if there is no information on this
6 Whatever the company does should have an ethical; therefore, only right thing can be done if there are positive consequences
7 Good communication is the key to efficiently establishing an ethical culture, as well as to
8 To build a positive business image, a separate strategic communication plan should be significantly considered
9 The product you offer just needs to be relatively relevant to the benefits you offer your target audience and how you position them
10 Prove that ‘you do what you say’ will do nothing to change the customer's mind
Read the passage and do the tasks below
“The British brand of corporate responsibility is seen as the gold standard”, says Julia Cleverdon, Chief Executive of Business in the Community, which for 25 years has been championing the cause in Britain And it is true that Britain, especially London, has been a hive of innovation in CSR since the mid-1990s, thanks to a creative cluster of think-tanks, NGOs, consultancies and incentive bosses But according to Simon Zadek of Accountability, a think- tank that has been part of the cluster, this is also a repeat of a familiar British business story: superb innovation, poor implementation
By contrast, when American firms get serious about CSR – Wal-Mart on sustainability, for example – the execution is generally impressive The Japanese, for their part, see the roots of CSR in the traditions of Japanese business, such as shobaido (the way of doing business) and shonindo (the way of the merchant), and Japanese firms pay a lot of attention to the environment and to relations with local communities The lead on CSR could even shift from the rich world to the big emerging markets, each with its own traditions and priorities
STRATEGIC PLANNING 76 5.1 KEY TERM DEFINITIONS
VOCABULARY PRACTICE ON STRATEGIC PLANNING
Task 3: Choose the correct words with suitable verb forms to fill in the blanks
1 The Federal Trade Competition rejected the idea that the combined companies would _ competition, noting that the two parties weren’t direct competitors
2 Consumers should welcome new entrants to the credit market because it widens their choices and lowers the cost of credit by _ competition
3 When one company _ a successful business, competition inevitably intensifies
4 Organizations face constant pressures for _ from both outside the organisation and from within
5 A mission statement is meant _ an organisation’s aims to customers, employees, and shareholders
6 In the process of _ a strategy, a company will first assess its current situation by performing an internal and external audit
7 The company needs to establish specific targets or goals related to putting the strategy into action, and _ resources for the strategy’s execution
8 The good thing about the licensing agreement is that we can _ the risk
Task 4: Complete each sentence with correct form of the word in brackets
1 The manager was criticized for being too Eurocentric and failing to pay sufficient attention to the competitive _ from Southeast Asia (threaten)
2 A company may also own or buy its suppliers and customer companies in a situation or process of vertical _ (integrate)
3 Yahoo has been shouldered aside by Google, a(n) _ in online advertising and strategic planning (innovate)
4 A large number of companies have been _ so far, as they have been making things invented elsewhere more cheaply (follow)
5 Resource allocation is central management activity for strategy _ (implement)
6 In formulating a strategy, a company should look at its strengths and _ in relation to its competitors (weak)
7 There is an increasing demand for chocolate that is produced and sold through Fairtrade _, particularly in Europe (agree)
8 A corporate strategy is _ the highest strategic plan of the organization (hierarchy)
Task 5: Choose the correct answer for each sentence
1 His lawyers have argued that the transactions were completely above _ and approved by the other directors
2 As large chains such as J.C Penny make _ moves to stand-alone stores, what should traditional shopping malls do?
3 The company set up the new office in Shanghai just two years ago and it’s already our most successful _
4 We try to get our _ across to the customer at every opportunity
5 The organisation’s _ statement is a useful starting point for setting realistic objectives
6 The company bought out one of its biggest rivals because it was part of their strategy to broaden their _
A customer content B customer basis C customer base D buyer base
7 An important part of their strategic planning process is ensuring their _ are used more effectively
8 The company is closing one of the plants because they want to concentrate investments on the most _ models
A cost-consuming B profitable C beneficial D decisive
9 You can read about the company’s goals and _ in the company’s mission statement
10 Mall stores are under the most competitive _ that they’ve been under in their 40-year history, with new discounters and superstores moving in alongside traditional malls
11 BankOne will enhance its competitive _ and boost its financial growth through the transactions
12 If an industry has low entry barriers and is attractive because of its high profitability, there may be new entrants
13 The company’s acquisition of its rival led to customer defections, due to a _ in service quality
14 The benefits of strategic planning include ensuring that all members of the organization are working towards fulfilling _ and that a company's resources are allocated as efficiently as possible
A private objectives B common objectives C common deals D private deals
15 We work closely with our client to establish the research _, gathering information about a product’s history and competitive position, the scale of the project and its likely timescale and costs
16 Our _ is to be earth’s most customer-centric company: to build a place where people can come to find and discover anything they might want to buy
17 Observers say Indian companies are ready to accept a lower _ of return than western companies in order to secure a strategic asset
18 Corporate strategic planning is how an organization defines its _ directions over a year, three to five years or even longer
19 As their strategy is going nowhere, they decided to change their _
20 The Chief Executive of Google is adamant that the _, which allows engineers freedom to create new products and services, will not change
A company dress code B operation communication C company culture D operation habit
21 High-trust organizations benefit from better communications, higher efficiency, greater employee commitment, and lower staff _
22 Companies do need a strategy for growth in order to ensure a healthy recovery and gain a competitive _ over their rivals
23 We need a new strategy because the world has changed, markets are unpredictable, and the _ is uncertain
A economic outlook B strategic goal C market leader D market defence
24 The company needs to exploit their _ by making the most of their distribution network and loyalty programme
25 By the end of the strategic planning process, they should have a clear _ of where they want the business to go in the future
26 A company should try to have _ plans for all the potential risks they can think of
SECTION 2 LANGUAGE USE IN A WIDER CONTEXT
PASSAGE COMPLETION
Read the passage and choose the correct words to fill in the blanks
Corporate planning entails a meticulous approach to strategic decision-making, prioritizing long-term objectives and designing strategies to attain desired outcomes Unlike budget plans, which focus on short-term resource allocation, corporate plans encompass a broader perspective, considering future developments and establishing a framework for achieving strategic goals To ensure a structured and effective planning process, many large-scale organizations emphasize the adoption of formal planning methodologies.
'scenarios' or forecasts of future developments in the environment in which they wish to operate, in order to (4) _ whether decisions taken in the present will result in success in the future
In recent years, companies have been developing more (5) _ techniques with which to analyze the risks involved in such decisions
Consider, for example, an oil company deciding if it should invest in a new refinery Faced with this decision, involving the (6) of millions of pounds on something which might have a life of 15 years or more, the company must have a sound basis for its decision In this case, it needs to know whether it can be assured of a market for the extra volume of its (7) _ products, and it needs to know whether they can be produced profitably In addition, it is necessary to study the (8) _ of crude oil and other supplies needed in the process
Corporate planning, therefore, involves three main areas: determining the long-term (9) _ of an organization, deciding what market potential there may be and (10) _ a product policy to satisfy them
7 A high-quality B refined C defective D horizontal
Read the passage and choose the correct words to fill in the blanks
Mobile phones are changing the way we communicate forever Today’s mobile phone users are not using their devices just to talk Now, the mobile phone is a (1) for news, views and entertainment, a window into the world Alongside the Internet, mobile phones have become the great communication (2) _ of modern times and, as such, are threatening to revolutionize the world of marketing Industry experts believe that the most successful players in the (3) _ marketing era will be those that best connect the power of the Internet with the flexibility of mobile phone communication
The fact is that mobile phones have a number of (4) _ advantages over traditional media in advertising, and other marketing activities, which, if leveraged, have the potential to make mobile marketing the most (5) _ tool in the modern marketers’ arsenal
The extensive and increasingly data-rich subscriber profiles that mobile operators have at their disposal are the sort of resource that marketers would be willing to pay good money to (6) _ One of these is the broad subscriber base that mobile operators often have at their disposal Such a resource is both a valuable (7) for the mobile operator and a powerful and exciting tool in itself One of the reasons is that phone operators have a much better understanding of their customers’ (8) _ patterns than traditional media owners They can even identify the personal hobbies and character traits of subscribers through their use of content-rich data (9) _ This kind of resource makes possible the kind of precise customer segmentation and niche market identification that most marketers can only dream of
Teamed with this customer (10) precision is the ability of mobile phone operators to use location-based advertising to hit their target audience right at the spot of the first sales opportunity On-site advertising can also be combined with information on the customer’s personal interests and consumption preferences to create a truly precise real-time marketing tool
Read the passage and choose the correct words to fill in the blanks
Mind the gap: Managing customer expectations
The cause of most customer complaints can be seen as a (1) _ between what they were expecting and what they in fact received Phrases such as “I’m disappointed” or “I did not expect” abound in official letters of (2) _ This means that much of a company’s promotional activity needs to (3) _ the management of customers’ expectations
Managing customer expectations is crucial, particularly if businesses cannot offer low prices Emphasizing product value and quality elevates expectations, while acknowledging limitations and fostering realistic expectations may enhance customer satisfaction Budget airlines demonstrate the effectiveness of this approach, managing expectations through their "no frills" label and offering cheap fares in exchange for reduced services.
Mismatch can also exist within a company between the (8) _ set by management for dealing with customers and what customers actually receive from staff In this case, it is often due to poor training or inappropriate technology The whole issue has been investigated by Parasuraman et.al, who identify a total of four possible gaps between expectations and (9) _, and the causes of each one
Another issue is that customers’ expectations are not only created by the company in question People have natural tendency to make (10) _ and feel aggrieved if others have obtained more for their money This means that when new products enter the market, they set a new benchmark for customer expectations
(Cambridge English Business Benchmark Progress Tests, 2016)
Read the passage and choose the correct words to fill in the blanks
Faced with a bewildering choice of coffee brands, today’s (1) _ would do well to investigate a little deeper in order to make their choice more informed The cup of coffee they are enjoying in any one of a chain of high street coffee (2) _ has almost certainly been imported – most of the world’s coffee is grown by a small number of countries, such as Brazil, or in Africa: Burundi, Kenya and Ethiopia At each step of the way, despite being a single (3) _ commodity, its value has increased dramatically Involving different (4) _ of surprisingly complex supply chain The person responsible for (5) _ each stage in the supply chain process is the Logistics Manager, who needs to handle the entire process This manager’s job involves overseeing the transportation of the coffee from a major (6) _ distribution center to a port, from where the commodity is shipped abroad for processing, packaging and local distribution by one of the large roasting companies Here the product is sorted and redirected to the next place in the supply chain The key point is that the industry is largely vertically (7) _; in other words, a small number of powerful operators control each stage in the supply chain process after the coffee is initially (8) _ from the grower And the most likely to receive the least money in the chain are those at the (9) _: the growers and harvesters These include in particular those smallholder producers who grow 70% of the world’s coffee, which they do on tiny farms of less than 25 acres If the coffee is (10) _ fair trade, however, minimum standards of personal and environmental welfare apply, meaning those powerful operators are less welcome Buyer beware!
READING COMPREHENSION
Read the passage and do the tasks below
What is strategic marketing planning?
Strategic marketing planning addresses the company’s long-term goals and objectives rather than just tactics for marketing products and services Of course, tactical marketing planning is just as essential, but it comes at a later stage in the overall process The strategic planning stage comes first and involves taking a comprehensive overview of all the company’s sales and marketing activity It starts with three questions Where is the company now? Where does management want the company to go? What should the company do to improve its objectives? A good approach to take to the strategic planning process is to separate it from the distractions of the day-to-day decisions about marketing and sales activities, and to perform an annual comprehensive review of markets and opportunities, matching this against the overall direction of the company and its long-term strategic goals
Strategic marketing planning involves looking at the company from the customer’s point of view You need to keep coming back to the particular needs or problems which cause customers to purchase the company’s goods and services You can then set this against the improvements or benefits to the customer’s personal or business life the company’s products can bring Can these benefits be enhanced or improved? You need to make a detailed study of those segments of the market which are attracted to your company’s products and services In order to get as much information as possible, this should involve segmenting the market in different ways: for example, geographically, demographically and psychologically To build up a psychological profile of your customers in consumer markets factors such as their overall lifestyles and attitudes need to be considered What are the values and motivations that lead people to decide to purchase your products?
Obviously, it is not enough just to gather information; you need to know how to interpret it and to understand its possible implications For example, if you see and understand the trend for business process outsourcing early enough, you can decide what the consequences for you might be as a provider of certain types of services and make decisions accordingly To take another example, the aging population bubble creates a general increase in demand for a wide range of products for this age group and profile It creates market niches for specialized products that are large enough to make new product development and marketing worthwhile The same shifts can also reduce demand for other products These long-term shifts in markets are frequently misinterpreted as short-term competitive pressures or fluctuations in the economy Without a strategic marketing plan a company could waste resources or miss an opportunity It’s difficult to estimate the cost of missing an opportunity at the time it happens; it usually only emerges several years later when a competitor opens a new factory or enters a new market and their revenue starts to accelerate and overtake that of its competitors In such situations it is easy to conclude that the annual cost of a strategic marketing plan review is minuscule compared to the revenue, market share and profitability it can generate
(Allison, Townend, & Emmerson, 2013) Choose the correct answer for each case
1 What is the relationship between strategic and tactical marketing planning described in the first paragraph?
A Tactical marketing planning occurs before the strategic planning process
B Tactical planning is less concerned with detail than strategic planning
C Strategic planning comes before tactical planning and involves taking a comprehensive overview
D Strategic planning is more important than planning tactics in business
2 What is the most effective way to undertake a strategic marketing plan?
A You shouldn’t separate strategic marketing planning from decision-making related to sales
B You should undertake your annual view from day-to-day sales and marketing decision- making
C You shouldn’t let the annual review distract you from day-to-day sales and marketing activity
D You should link your annual review to the day-to-day decision-making process
3 How should companies construct a psychological profile of their customers?
A By segmenting the market geographically and demographically
B By considering the particular need or problem of the customers
C By analysing the particular benefits the company’s products and services
D By looking at customers’ lifestyles and attitudes, their values and motivations
4 In what ways are long-term shifts in markets frequently misinterpreted?
A There is so much competitive pressure that people don’t notice them
B People believe they are caused by short-term fluctuations in the economy
C People always believe that they will create new markets for niche products
D People are worried about missing opportunities as they don’t analyze them properly
5 What does the author suggest might be the secondary effect of the ageing population bubble?
A To create new markets for niche products for other sectors
B To increase the demand for niche products globally
C To reduce demand for certain other types of products
D To make new product development more worthwhile
Read the passage and do the tasks below
Strategy is about developing competitive capabilities and finding a competitive position within the marketplace In international markets, the competitive capabilities that the firm has in one country may not be the same as those it has in another country: equally, the competitive position a firm adopts in one country may be different from that held in another For example, McDonald’s is regarded as a standard fast-food brand in its native USA, but in India and other emerging markets it is marketed as a premium brand Interestingly, India is one of the only countries in the world where McDonald’s doesn't sell hamburgers, Big Macs or any other beef products Being a predominantly Hindu country where the cow is sacred, this would offend cultural sensitivities
Firms wishing to enter a given overseas market will need to consider the same environmental factors as they would consider periodically within their home markets, but a key issue in global marketing is the degree to which the company is prepared to standardize its products and marketing approach
Firms might decide on a globalization strategy by which the company's products, attitudes, brands and promotion are standardized throughout the world, with global segments being identified, or conversely might decide on a differentiation strategy whereby the company adapts its thinking (and marketing) to each new market The companies which are most likely to seek a globalization policy are those whose products are not culturally specific, and whose promotions can be readily understood throughout the world
Research shows that relatively few companies standardize their advertising Of 38 multinational companies surveyed, 26 said that they used standard advertising, but only 4 of these were completely standardized The others varied from limited standardization (perhaps only the corporate logo retaining the same) through limited standardization of key elements (such as packaging), through to standard methodologies and approaches with minor adaptations
(Cotton, Falvey, & Kent, 2022) Choose the correct answer for each case
1 What two aspects of a company's strategy can change depending on the country market it is operating in?
A Competitive capabilities and globalization strategy
B Competitive capabilities and competitive position
C Competitive position and globalization strategy
D Globalization strategy and global marketing
2 What is unusual about McDonald’s India compared to McDonald’s elsewhere?
A McDonald’s India is regarded as a standard fast-food brand
B It is marketed as a premium brand
C They don’t sell any beef products such as hamburgers or Big Macs
D India is one of the countries in the world where the cow is sacred
3 What two types of broad strategy can firms follow across different country markets?
A Globalization strategy and differentiation strategy
B Globalization strategy and globalization policy
C Differentiation strategy and globalization policy
D Globalization policy and environmental factors
4 Which companies have more chance of success by taking a standardized approach to strategy across different country markets?
A Companies whose promotions are easily understood
B Companies whose products are not culturally specific
D None of these is correct
5 How common is it for firms to completely standardize their advertising across different country markets?
A Not common B Common C Quite common D Very uncommon
Do the following statements agree with the information given in Passage 2? Write:
TRUE if the statement agrees with the information
FALSE if the statement contradicts the information
NOT GIVEN if there is no information on this
6 McDonald's is a premium brand in the US, India and other emerging markets
7 McDonald's doesn't sell beef in India because of religious issues
8 Not all companies wishing to enter foreign markets have to consider environmental factors
9 A globalization strategy can help standardize company characteristics around the world
10 There are 26 companies that have standardized their advertising
Read the passage and do the tasks below
The right business name is important If you choose the wrong one, you might end up with something that sends all the wrong messages To be successful, your business name needs to define your identity and say what's special about what you are offering Think about the market you want to sell into, and why your customer will prefer to buy your R product or service rather than someone else's A good business name is one that tells customers what to expect
Illiterate names have caught on everywhere; that is names that involve deliberately misspelled words Kwik-Fit, the company that promises to fit car parts speedily, was one of the first in the UK The name was the brainchild of Kwik-Fit's chief executive, who, as a schoolboy, earned extra pocket money cleaning ovens He advertised himself as Kookers Kleaned! Some people grumble about these misspellings, arguing, for example, that children will copy them, but even these purists don't hesitate to buy an ice cream from Phun Phlavours! These misspellings work because they catch the eye The trouble is, as more and more are invented, they lose their impact
But unusual names are not always the most effective, Names like Tie Rack or Body Shop which just say what your company is about can work just as well They are short, and they have an honest no-nonsense ring to them Sometimes using a personal name can achieve the same effect: Laura Ashley projects a gentle and elegant image that makes the customer feel comfortable about buying that company's products
If you are providing a service, decide whether your company name should describe your customer's problem or your unique solution to the problem For example, a vehicle breakdown service could call itself Panic Breakdowns, which only serves to emphasize the negative state of mind of the customer, or Instant Rescue, which sends out a reassuring message that help is at hand Which name would you select if you had a burst water pipe: Flood Warning or Peace of Mind?
Consider too the impact your name will have when people hear it or read it What effect does it have when spoken over the telephone? Snappy Happy Snaps may describe your photographic agency, but it sounds ridiculous over the phone When your name appears in Yellow Pages or similar directories, usually amongst a hundred others offering a similar service, you want yours to be the one that catches the eye One trick is to ensure that the first letter of your name appears early in the alphabet A business in Finland Called itself by the meaningless name Quello, simply because there is no letter Q in Finnish, so Quello was the only entry in the directory under that letter!
(Gore, 2010) Choose the correct answer for each case
1 According to the writer, a business name is a good one if it _
B avoids confusion with other companies
C creates different kinds of image
D persuades people to use your company
2 What is the writer's attitude to the use of illiterate names?
A They have been used so much that people no longer notice them
B They are bad because children will learn wrong spellings
C They are good because people find them amusing
D They fail to describe the service or product accurately
3 What does the writer like about simple company names?
A They accurately describe the product B They inspire confidence
C They give a personal touch D They are easy to remember
4 Which name, Flood Warning or Peace of Mind, would the writer probably prefer?
B Peace of Mind because Flood Warning sounds more serious than a burst pipe
C Peace of Mind because it is designed to comfort the customer
D Flood Warning, because few people know the expression “Peace of Mind”
5 According to the writer, you can help to make your company name stand out by
A using an initial letter that gets your name into the front of directories
B making sure the name of your company has an unusual letter in it
C choosing a short name that people can say easily over the phone
D putting your advertisement in several different directories
Fill in the summary with ONE WORD taken from Passage 3 for each blank
It is critical to choose the right business name You can end up with something that sends all the (6) if you choose the wrong one To be successful, your company name must describe your brand and express what makes your product unique Consider the (7) you wish to sell into and why your customer would choose your product or service over someone else's A good business name informs customers about what to expect Illiterate names, or names with intentionally (8) , have become quite popular However, (69) aren't always the best, such as Tie Rack or Body Shop, might give your company an honest, no-nonsense ring if you merely convey what matters to you Decide if your company name should express your (10) or your unique solution to the problem if you're delivering a service Consider the impact your name will have on people when they hear or read it When said that over the phone, what effect does it have?
Read the passage and do the tasks below
When it comes to global communications and advertising, multinational companies want to opt for a standardized approach because of the obvious benefits of economies of scale However, what they gain by economies of scale, they lose in effectiveness For a long time, international advertising strategists believed that emotional or feelings-based appeals would travel better than thinking based appeals, because of the assumed universality of human values such as love and happiness Analysis of advertisements in international media such as Newsweek, Business Week and CNN shows that this is the approach that has been taken by U.S companies in particular In reality, however, the messages being communicated are less universal than is commonly assumed, more a reflection of the home country's own value system As with a company's identity and its brand strategies, advertising must also communicate values that match those of the receiver rather than the culture of the producer Advertising is most effective when it succeeds in reflecting the culture of the consumer it is trying to reach
A communications and advertising strategy that is defined according to each and every distinct market may make Western marketers nervous, but in the end, it earns money by being more effective than taking a one-size-fits-all approach If you want to reach consumers in different parts of the world, my advice is always the same: Speak to them in a way they understand, that fits their communication style The new paradigm is cultural segmentation: defining markets based on their cultural specifics, and then developing cultural strategies A strong corporate identity needs to go hand in hand with cultural sensitivity Instead of being
`consistent', companies should be pragmatic and adapt to the cultural mindset of consumers This is the future of global strategy
Choose the correct answer for each case
1 Why do multinational companies want to standardize their marketing approach across different country markets?
A For economies of scale benefits B For a loss in effectiveness
C For certain scale benefits D For fear of losing
2 Why do international advertising experts use messages based on emotions and feelings?
A They want to communicate via feeling-based messages
B They think that thinking-based practices are better
C They think that these messages are universal
D They think that consumers will appreciate the messages
3 According to the author, how universal are feelings and emotions such as love and happiness?
A This is the approach that has been taken by U.S companies
B They are not very universal
C They reflect the value system of the home country
4 According to the author, how can companies best communicate their message in international markets?
A Try to be more universal for international acceptance
B Speak to consumers in each country in a way they understand
C Communicate the values to the producers
D Try to reflect the culture of the producers
5 What marketing strategy does the author propose for international companies?
Do the following statements agree with the information given in Passage 4? Write:
TRUE if the statement agrees with the information
FALSE if the statement contradicts the information
NOT GIVEN if there is no information on this
6 For worldwide international advertising tactics, global companies prefer to approach all nations in the same way
7 It is believed that appeals based on reasoning tend to be more effortless to approach than an emotional one
8 Consumer values and culture should be prioritized in advertising initiatives
9 To get into the local market, as many localization efforts as feasible must be conducted
10 To reach clients in numerous regions of the world, businesses must thoroughly grasp and analyze each region's infrastructure and economics