Contents1Unit 1Marketing1Passage 1The Marketing Mix: The Four Ps5Passage 2International MarketingUnit 2E-commerce1414Passage 1Amazon'sWholesaleSlaughter16What Is E-business?Passage 219Unit3Corporate Culture19Passage 1A Strong and Living Corporate Culture20Passage 2Not to be Taken for GrantedUnit 4Advertising2323Passage 1 Advertising Media25Passage 2 Advertising28Unit 5Globalization28Passage1Making Brands Work around the WorldPassage 2The Challenger from China Why Huawei is Making the Telecoms World29Take NoticeUnit 6Investment3434 Passage 1 Aspects of Investment36Passage 2InvestmentUnit 7Management39Passage 1The Man Who Invented Management: Why Peter Drucker's Ideas Still39Matter41Passage 2Doing the Business44UnitsInsuranceandInflation44Passage 1HowtoGetPeopletoSaveMore47Passage 2Value of Money51Unit9Currency and Banking51Three Legendary Financial DisastersPassage1
Contents Unit 1 Marketing 1 Passage 1 The Marketing Mix: The Four Ps 1 Passage 2 International Marketing 5 Unit 2 E-commerce 14 Passage 1 Amazon’s Wholesale Slaughter 14 Passage 2 What Is E-business? 16 Unit 3 Corporate Culture 19 Passage 1 A Strong and Living Corporate Culture 19 Passage 2 Not to be Taken for Granted 20 Unit 4 Advertising 23 Passage 1 Advertising Media 23 Passage 2 Advertising 25 Unit 5 Globalization 28 Passage 1 Making Brands Work around the World 28 Passage 2 The Challenger from China Why Huawei is Making the Telecoms World Take Notice 29 Unit 6 Investment 34 Passage 1 Aspects of Investment 34 Passage 2 Investment 36 Unit 7 Management 39 Passage 1 The Man Who Invented Management: Why Peter Drucker’s Ideas Still Matter 39 Passage 2 Doing the Business 41 Unit 8 Insurance and Inflation 44 Passage 1 How to Get People to Save More 44 Passage 2 Value of Money 47 Unit 9 Currency and Banking 51 Passage 1 Three Legendary Financial Disasters 51
53Passage 2Barclays ad Deutsche Bank: Surviving, Not ThrivingUnit 1057Securities57Passage 1 Companies59Passage 2BondsUnit llBusiness Laws6363Passage 1Contracts67Passage 2SmartphonesAretheLatest Patent Battleground72Unit 12Multinational Companies72 Passage1 The Benefits of Multinational Companies75Steps in Entering Business in ChinaPassage 281Unit 13Logistics81Passage1Physical Distribution85Passage2TheImportanceof TransportationKey89
Passage 2 Barclays ad Deutsche Bank: Surviving, Not Thriving 53 Unit 10 Securities 57 Passage 1 Companies 57 Passage 2 Bonds 59 Unit 11 Business Laws 63 Passage 1 Contracts 63 Passage 2 Smartphones Are the Latest Patent Battleground 67 Unit 12 Multinational Companies 72 Passage 1 The Benefits of Multinational Companies 72 Passage 2 Steps in Entering Business in China 75 Unit 13 Logistics 81 Passage 1 Physical Distribution 81 Passage 2 The Importance of Transportation 85 Key 89
UnitlMarketingSupplementary ReadingPassage1TheMarketingMix:TheFourPsThe variety of smaller market segments within the consumer and business market is enormous, and thefirm that isgood at targetmarketing will haveavaluableedge over its competitors.But identifyingthe marketis only part ofthe task.The other basic element in any total marketing program is the marketing mixThe marketing mix can be defined as the blend of product, price, promotion, and placement (ordistribution)that satisfies the demands ofthe chosen market segment. The four Ps have to fit closely together.And, as we shall see, the key to effective marketing is the ability to adjust each of thefour factors in responsetothedemands ofthetargetmarket.ProductA businessperson's first marketing decision concerns the products or services that will attractcustomers in thetargetmarket.Thekeyis todetermine consumers'needs and wants and translatethem intodesirableproducts and services.Rising crime rates,forexample, have created atarget market among smallbusinesses for a growing number of security services. Similarly,the rapid increase in the number of workingwomen has inspired clothing manufacturers to include more high-priced ladies'suits in their overall productmix, many women have discovered they need to “dress for success" just the way men do.Changingconditionsrequirethecontinuousreevaluationof product lines.AtProcter&Gamble,alertexecutives saw rising detergent costs as a threat to continued high-volume usage oftheir products in the homeand added to theirlistof products a numberofcloth-substitute paper products, including Pampers disposablebaby diapers. Pampers now outsell P &G Tide detergent. In addition, P&G has responded to the rising costsofrawmaterials,suchas coconutoil,byreformulatingbarsoapsand otherproductswithmuchlessexpensiveoils. In the steel industry, increased imports have convinced U.S. Steel, Armco, and National Steel, amongothers, to begin entirely new business in chemicals, insurance, and banking.Afterpickingtheproductstobedevelopedbusinesspeoplemakeothermarketingdecisionsabouteachone. These include selecting a brand name, designing a package and establishing a product guarantee.PriceHavingmadethebasic decisions about theproduct line,themarketingmanagermust decidehowthecompany should price its products. Perhaps a policy based on low prices will increase profits to the greatestpossible amount. Supermarkets have used this tactic successfully on two levels. Most offer unbranded,so-called generic products at the lowest price and offer their own brand, usually at a slight higher price, in
Unit 1 Marketing Supplementary Reading Passage 1 The Marketing Mix: The Four Ps The variety of smaller market segments within the consumer and business market is enormous, and the firm that is good at target marketing will have a valuable edge over its competitors. But identifying the market is only part of the task. The other basic element in any total marketing program is the marketing mix. The marketing mix can be defined as the blend of product, price, promotion, and placement (or distribution) that satisfies the demands of the chosen market segment. The four Ps have to fit closely together. And, as we shall see, the key to effective marketing is the ability to adjust each of the four factors in response to the demands of the target market. Product A businessperson’s first marketing decision concerns the products or services that will attract customers in the target market. The key is to determine consumers’ needs and wants and translate them into desirable products and services. Rising crime rates, for example, have created a target market among small businesses for a growing number of security services. Similarly, the rapid increase in the number of working women has inspired clothing manufacturers to include more high-priced ladies’ suits in their overall product mix; many women have discovered they need to “dress for success” just the way men do. Changing conditions require the continuous reevaluation of product lines. At Procter& Gamble, alert executives saw rising detergent costs as a threat to continued high-volume usage of their products in the home and added to their list of products a number of cloth-substitute paper products, including Pampers disposable baby diapers. Pampers now outsell P &G Tide detergent. In addition, P&G has responded to the rising costs of raw materials, such as coconut oil, by reformulating bar soaps and other products with much less expensive oils. In the steel industry, increased imports have convinced U.S. Steel, Armco, and National Steel, among others, to begin entirely new business in chemicals, insurance, and banking. After picking the products to be developed businesspeople make other marketing decisions about each one. These include selecting a brand name, designing a package and establishing a product guarantee. Price Having made the basic decisions about the product line, the marketing manager must decide how the company should price its products. Perhaps a policy based on low prices will increase profits to the greatest possible amount. Supermarkets have used this tactic successfully on two levels. Most offer unbranded, socalled generic products at the lowest price and offer their own brand, usually at a slight higher price, in
addition to the highest-price commercial brands. On the other hand, the desirability of some products dependson a high-quality image, which a highprice helps to confer.Curtis Mathes brand televisions are advertisedas“themost expensivetelevision setI America and worth it",and comewithafour-year limited warrantyPromotionVeryoften themost importantdecision amarketingmanager makes ishowthemanufacturer shouldinform prospective customers about its products. This involves promotion, which includes the sales approach.Some marketing strategists, like those at Avon Products, may decide to emphasizedirect selling and spendmostof theirpromotiondollarstotrainandpay salespeople.Others,likeproducersof soap and headacheremedies, promote their products through advertising, primarily on television. Department stores also spendheavily on advertising,but theychoose newspapers asthemost effectivemedium.Thealternatives aremanyandthechoicemaydeterminethesuccessofamarketingeffort.PlacementThe fourth element is the marketing mix is placement (or distribution): how the manufacturer gets itsproducts to the customers. Transportation is the major factor here, but placement also entails decisions aboutdistributionoutlets.Tupperware,forexample,distributes directlytotheconsumerthrough its partyapproachMostapparel companies,ontheotherhand,sell toretailers,whoresell to consumers.Somemanufacturersemploy multiple placement systems. Thus the Whirlpool Corp. Sells the Whirlpool brand of appliance todealers fordistributionto sales outlets and it alsomakes theKenmorebrand, which it ships directlyto Sears,Roebuck& Co. Sears itself sells through its stores and by catalog.Hart Schaffner Marx makes suits andsportswear for independent retailers butalso makes them availableto consumers throughits own retail stores,including Wallach's and Baskin. In short, there are many ways of distributing goods.The Right CombinationFindingthebestmixofproduct,price,promotion,andplacementhasbecomeanincreasinglycomplextask for most businesses. Marketing directors have found that even the most subtle changes— in the shapeor colorof packaging,for instance,or the way theproduct is displayed in a storecan have a decisive impacton a product's success, quite apart from its actual quality. In effect, you may have built a better mousetrap,but unless you package it well, set up good distribution, target your advertising appropriately, and offer agood Warranty, theworld won't necessarily takenotice.Indeed, it hasbecomemorecommontoreverse theprocess andgotothe market for new ideas ratherthan going into production with an untested idea and then attempting to find a market for it. ConsolidatedFoods Sara Lee Subsidiary took careful note of the fact that one-and two-member households had come tomake up52percentofall American homes by1979.Knowing this marketexisted spurred SaraLeeto developa line of individual Danish pastry products, which quickly became the sales runner-up to Sara Lee's best-selling all-butter pound cake.EacercisesI.Discussion
addition to the highest-price commercial brands. On the other hand, the desirability of some products depends on a high-quality image, which a high price helps to confer. Curtis Mathes brand televisions are advertised as “the most expensive television set I America and worth it”, and come with a four-year limited warranty. Promotion Very often the most important decision a marketing manager makes is how the manufacturer should inform prospective customers about its products. This involves promotion, which includes the sales approach. Some marketing strategists, like those at Avon Products, may decide to emphasize direct selling and spend most of their promotion dollars to train and pay salespeople. Others, like producers of soap and headache remedies, promote their products through advertising, primarily on television. Department stores also spend heavily on advertising, but they choose newspapers as the most effective medium. The alternatives are many and the choice may determine the success of a marketing effort. Placement The fourth element is the marketing mix is placement (or distribution): how the manufacturer gets its products to the customers. Transportation is the major factor here, but placement also entails decisions about distribution outlets. Tupperware, for example, distributes directly to the consumer through its party approach. Most apparel companies, on the other hand, sell to retailers, who resell to consumers. Some manufacturers employ multiple placement systems. Thus the Whirlpool Corp. Sells the Whirlpool brand of appliance to dealers for distribution to sales outlets and it also makes the Kenmore brand, which it ships directly to Sears, Roebuck& Co. Sears itself sells through its stores and by catalog. Hart Schaffner Marx makes suits and sportswear for independent retailers but also makes them available to consumers through its own retail stores, including Wallach’s and Baskin. In short, there are many ways of distributing goods. The Right Combination Finding the best mix of product, price, promotion, and placement has become an increasingly complex task for most businesses. Marketing directors have found that even the most subtle changes— in the shape or color of packaging, for instance, or the way the product is displayed in a store can have a decisive impact on a product’s success, quite apart from its actual quality. In effect, you may have built a better mousetrap, but unless you package it well, set up good distribution, target your advertising appropriately, and offer a good Warranty, the world won’t necessarily take notice. Indeed, it has become more common to reverse the process and go to the market for new ideas rather than going into production with an untested idea and then attempting to find a market for it. Consolidated Foods’ Sara Lee Subsidiary took careful note of the fact that one-and two-member households had come to make up 52 percent of all American homes by 1979. Knowing this market existed spurred Sara Lee to develop a line of individual Danish pastry products, which quickly became the sales runner-up to Sara Lee’s bestselling all-butter pound cake. Exercises I. Discussion
1.Trytodefineeach componentofthemarketingmix in just one sentence.For example,product"meanstoget the right product to the market.2.Describebrieflyall youknowabout ways of distributinggoods.3.Should the component elements of themarketingmixbe alwaysgiven equal importance?And why?4.What isthekey to effectivemarketing?5. Why should a business person concern consumers'needs and wants first?6. How does a company promote its products in the common ways?7. How should a company price its product?8. How does the manufacturer get its products to the customers?9.How can we design the market mix?II. Choose the right answer.1.Atotal marketing programA is another term for marketing mixB.consistsoftwobasicelements-identifyingthemarketandmarketingmixC. refers to identifying the marketD. is to satisfy the demands of the target market2. What is the marketing mix? It'sA.a combination ofproduct andpriceB.ablendofpromotionandplacementC.a combination ofproduct,price,promotionanddistributionD. a blend of product, price and promotion3.Inmaking thefirst marketingdecision, the most important thingbusinesspeople should do isA. to find out consumersneeds and wantsB. to find out the costs of raw materials of a new productC.toreducethepriceoftheirproductsD.to create a target marketamong small businesses4.In Para.4, the author uses facts to support the idea thatA.alert executives are essential to a businessB. disposable products sell wellC.American steel industry isbeing replaced bynewbusinesses in chemicals, insurance andbankingD.changing conditions require the continuous reevaluation of product lines5.According to Para.6,which of the following is not true?A.ThemarketingmanagerofacompanyisresponsibleforpricingitsproductsB. Only high-price policy is profitable.C.Unbranded products are usually much cheaper than products of commercial brands.D. Products of very high prices may also succeed in market.6.In order tomake a new product well known to the public,A. a company should try the most effective waydirect selling
1. Try to define each component of the marketing mix in just one sentence. For example, “product” means to get the right product to the market. 2. Describe briefly all you know about ways of distributing goods. 3. Should the component elements of the marketing mix be always given equal importance? And why? 4. What is the key to effective marketing? 5. Why should a business person concern consumers’ needs and wants first? 6. How does a company promote its products in the common ways? 7. How should a company price its product? 8. How does the manufacturer get its products to the customers? 9. How can we design the market mix? II. Choose the right answer. 1. A total marketing program _. A. is another term for marketing mix B. consists of two basic elements—identifying the market and marketing mix C. refers to identifying the market D. is to satisfy the demands of the target market 2. What is the marketing mix? It’s _. A. a combination of product and price B. a blend of promotion and placement C. a combination of product, price, promotion and distribution D. a blend of product, price and promotion 3. In making the first marketing decision, the most important thing businesspeople should do is _. A. to find out consumers’ needs and wants B. to find out the costs of raw materials of a new product C. to reduce the price of their products D. to create a target market among small businesses 4. In Para.4, the author uses facts to support the idea that _. A. alert executives are essential to a business B. disposable products sell well C. American steel industry is being replaced by new businesses in chemicals, insurance and banking D. changing conditions require the continuous reevaluation of product lines 5. According to Para.6, which of the following is not true? A. The marketing manager of a company is responsible for pricing its products. B. Only high-price policy is profitable. C. Unbranded products are usually much cheaper than products of commercial brands. D. Products of very high prices may also succeed in market. 6. In order to make a new product well known to the public, _. A. a company should try the most effective way—direct selling