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Unit 1. Brands.

1. What are visible parts of marketing? What are brand managers and sales teams responsible for?

2. Who takes part in distribution channels?

3. Why do some companies make luxury products abroad rather than at home? Give examples.

4. Some people believe that luxury fashion products should always be made in Europe. What's your opinion? Give examples.

1. What are visible parts of marketing? What are brand managers and sales teams responsible for? As the marketing expert Philip Kotler has said, 'The most distinctive skill of professional marketers is their ability to create, maintain, protect and enhance brands.' There are an awful lot of misunderstandings about

‘marketing’. Many people see it purely as the various ways in which a business or organisation advertises

and promotes itself - a website, a brochure, corporate hospitality, advertisements and sales literature... But these are only the visible parts of marketing.

Professional literature defines marketing as 'the management process responsible for identifying, anticipating and satisfying customer requirements profitably'. In other words, it is not just about producing a piece of

promotional material to support a sales activity, it's about a systematic and careful process of ensuring that everything that the business develops and provides, whether it be a product or a service, is done with the

customer in mind.

Think of the process of marketing rather like an iceberg. The top eighth is the part that is visible - seven

eighths are unseen! What goes on below the surface is a whole range of activities and processes designed to ensure that any marketing communications are designed and delivered in the best way to achieve the desired results, usually that's profitable sales.

The main brand manager’s and sales teams’ responsibilities include:

- Developing and managing brand marketing plan

- Understanding and expressing brand’s positioning, designing appropriate marketing mix tools

- Brief & agree annual media plan, supervise work with advertising agencies

- Generate and analyze consumer insights, integrate findings into brand activities

- Manage pricing

- Enlist strong sales support for all brand marketing activities

2. Who takes part in distribution channels?

Distribution (or placement) is one of the four aspects of marketing. A distributor is the middleman between

the manufacturer and retailer. After a product is manufactured it may be warehoused or shipped to the next echelon in the supply chain, typically either a distributor, retailer or consumer.

A number of alternate 'channels' of distribution may be available:

· Selling direct, such as via mail order, Internet and telephone sales

· Agent, who typically sells direct on behalf of the producer

· Distributor (also called wholesaler), who sells to retailers

· Retailer (also called dealer or reseller), who sells to end customers

· Advertisement typically used for consumer goods

Distribution channels can thus have a number of levels. Kotler defined the simplest level, that of direct contact with no intermediaries involved, as the 'zero-level' channel.

The next level, the 'one-level' channel, features just one intermediary between producer and customer - a retailer. In small markets (such as small countries) it is practical to reach the whole market using just

one- and zero-level channels.

In large markets (such as larger countries) a second level, a wholesaler for example, is now mainly used

to extend distribution to the large number of small, neighborhood retailers.

3. Why do some companies make luxury products abroad rather than at home? Give examples.


Some companies prefer to make luxury products abroad rather than at home because they want to lower the firm costs. The process of subcontracting to a third-party company is named outsourcing. The reasons for outsourcing are many and varied, such as cost saving, cost restructuring, improving quality, knowledge and many others. The classical examples of companies making their products abroad are Coach, the US

leather goods maker, which outsources all its products to Asia, and Burberry, which also has many Asian

licensing arrangements.

4. Some people believe that luxury fashion products should always be made in Europe. What's your opinion? Give examples.

Although outsourcing is a widespread practice nowadays consumers have dual attitude to it. There is a strong public opinion regarding outsourcing (especially when combined with offshoring- the practice of

moving a company's operating base to a foreign country where labour costs are cheaper) that outsourcing damages a product quality dramatically. To be honest, I support this point of view. For example, about

ten years ago all products of British cosmetics company Avon were made in Europe. But now about 70%

of its production is outsourced in Russia and near abroad. Of cource the price of Avon cosmetics became

much cheaper but it’s not a secret that the quality changed dramatically too.

Unit 2. Travel

1. What types of airlines do you know?

2. How do you understand the term “code-sharing”?

3. What forms of cooperation between companies are there?

4. Why do people sometimes behave badly on planes? What causes such behaviour?

1. What types of airlines do you know?

Formerly airlines were classified into local, regional, national and international. Today they are classified according to their annual turnover. The biggest companies have the turnover from $100 million to $1

billion, the big regional - $10-$100 million, the average – less than $10 million.

It’s very important to remember that there are two kinds of airline operations-scheduled and

nonscheduled. A scheduled airline operates on fixed routs at fixed times according to a timetable that is available to public.

A nonscheduled airline operates on routs at a time when there is a demand for the service. The nonscheduled airline is in other words a charter operation that rents an aircraft.

2. How do you understand the term code-sharing”?

Code sharing is a business term which was first originated in the airline industry in 1990 when the

Australian airline, Qantas Airways and the US's American Airlines combined services between an array

of US domestic cities and Australian cities. The code share was part of a "cooperative services" agreement between the two carriers before the various airline alliances were formed. Code sharing is a commercial agreement between two airlines that allows passengers to use a ticket from one airline to travel on another. Most major airlines today have code sharing partnerships with other airlines, and code sharing is a key feature of the major airline alliances.

Lots of airlines, including all the big legacy lines, are involved with codesharing arrangements. Those

arrangements permit you to buy through tickets on routs that no single airline can serve. They may also provide opportunities to cut the cost of your airfare.

3. What forms of cooperation between companies are there?

There are different types of cooperation between airlines: associations (like International Association of

Air Transport (IATA) which deals with the air navigation, the security of air transport and the

coordination of flight services), particular global airline alliances and code share agreements that have multiplied over the past years.

4. Why do people sometimes behave badly on planes? What causes such behaviour?

The psychology of air rage is a new area of study, and there are almost as many explanations as


examples. Most analysts of the phenomenon blame alcohol, but many people now think that the airlines are at fault. To cut costs, they are cramming ever more passengers into their aircraft, while reducing cabin crew, training and quality of service, all of which increase passenger frustration. In addition, there

is increasing concern about another cost-cutting exercise, which could seriously harm passengers’ health:

cabin ventilation.

Unit 3. Organisation.

1. What types of companies do you know?

2. Speak about flexibility and its types.

3. What is meant by "teleworking"?

4. What do you know about SOL company? Why is it unusual?

1. What types of companies do you know?

Historically there were only sole proprietorships. Then came partnerships and then corporations.

Corporations are a several centuries old phenomena. Partnerships were arrangements between two or more individuals in which they pooled resources, and split expenses and profits. At first corporations were chartered by monarchies. Historically corporations offered limited liability and partnerships did not. In other words, if the venture failed, the organizers and promoters of a corporation retained their personal assets, while the owners and organizers of a partnership could lose their personal assets to the creditors of the business venture.

We can now define sole proprietorship as a business enterprise exclusively owned, managed and controlled by a single person with all authority, responsibility and risk.

Suppose you want to open a restaurant in your locality. You will need to organize a lot of things. You may find that it is not possible to arrange the money required to start and run the business alone. You

may then talk to your friends and all of you agree to run the restaurant by contributing a certain amount

of money and the other things required. So all of you join to become the owners and share the profits and

losses. This is another form of business organization – partnership.

A company form of business organization is known as a Joint Stock Company. It is a voluntary

association of persons who generally contribute capital to carry on a particular type of business, which is established by law and can be dissolved only by law. Persons who contribute capital become members of the company. This form of business has a legal existence separate from its members, which means even

if its members die, the company remains in existence. This form of business organizations generally

requires huge capital investment, which is contributed by its members. The total capital of a joint stock company is called share capital and it is divided into a number of units called shares. Thus, every member has some shares in the business depending upon the amount of capital contributed by him. Private Limited Company. These companies can be formed by at least two individuals having minimum fixed paid–up capital (the amount of money is determined by legislation of the country). The total membership of these companies cannot exceed a certain number of people (this number can be different in different countries). The shares allotted to its members are also not freely transferable between them.

These companies are not allowed to raise money from the public through open invitation and are required

to use “Private Limited” after their names.

Public Limited Company. A minimum of seven members are required to form a public limited company.

It must have minimum paid–up capital. There is no restriction on maximum number of members. The shares allotted to the members are freely transferable. These companies can raise funds from general public through open invitations by selling its shares or accepting fixed deposits. These companies are required to write either ‘public limited’ or ‘limited’ after their names. These are the main, but not the only types of business organization.

2. Speak about flexibility and its types.

Flexibility is the current buzzword today. Flexibility is understood as the ability to change or be changed

easily to suit a different situation. This has a number of related meanings. One type of flexibility has

existed for some time in the form of flexitime or flextime, where people can choose when they work within certain limits. Then there is the flexible working of the British Airways office in the main course

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