Unit 1.Brands.
1. Whatarevisiblepartsofmarketing?Whatarebrandmanagers andsalesteamsresponsible for?
2. Whotakespartindistributionchannels?
3. Whydosomecompaniesmakeluxuryproductsabroadratherthanathome?Giveexamples.4. SomepeoplebelievethatluxuryfashionproductsshouldalwaysbemadeinEurope. What's youropinion?Giveexamples.
1.Whatarevisiblepartsofmarketing?Whatarebrandmanagersandsalesteamsresponsiblefor? AsthemarketingexpertPhilipKotlerhas said, 'Themost distinctiveskillofprofessionalmarketersistheir abilityto create,maintain, protect andenhancebrands.'Thereareanawfullotofmisunderstandingsabout
‘marketing’. Manypeopleseeit purelyasthevariousways in whichabusinessororganisationadvertises
and promotesitself-awebsite,abrochure,corporatehospitality,advertisementsandsalesliterature...But theseareonlythevisiblepartsofmarketing.
Professionalliteraturedefinesmarketingas'themanagementprocessresponsibleforidentifying,anticipating and satisfying customerrequirementsprofitably'.Inotherwords, it is not just about producinga pieceof
promotionalmaterialto support a salesactivity, it'sabouta systematicand carefulprocessofensuringthateverythingthatthe business developsand provides,whetheritbea productoraservice,is done withthe
customerinmind.
Thinkofthe processofmarketingratherlikeaniceberg.The topeighthisthe part thatisvisible-seven
eighthsareunseen!Whatgoesonbelowthesurfaceisawholerangeofactivitiesandprocessesdesignedto ensurethatanymarketingcommunicationsaredesignedanddeliveredinthebestwaytoachievethedesired results,usuallythat's profitable sales.
Themain brandmanager’sand salesteams’responsibilitiesinclude:
- Developingandmanagingbrandmarketingplan
- Understandingandexpressingbrand’spositioning,designingappropriatemarketingmixtools
- Brief&agreeannualmediaplan, superviseworkwithadvertisingagencies
- Generateandanalyzeconsumerinsights,integratefindings intobrandactivities
- Managepricing
- Enliststrongsalessupportforallbrandmarketingactivities
2.Whotakespartindistributionchannels?
Distribution(orplacement)isoneofthefour aspectsofmarketing. A distributoristhemiddlemanbetween
the manufacturerandretailer. Afteraproduct ismanufactured it maybe warehousedorshippedto the next echeloninthesupplychain,typicallyeitheradistributor,retailerorconsumer.
Anumberofalternate'channels'ofdistributionmaybeavailable:
·Sellingdirect,suchasviamailorder,Internetandtelephonesales
·Agent,whotypicallysells directon behalfoftheproducer
·Distributor(alsocalledwholesaler),whosells toretailers
·Retailer(alsocalleddealerorreseller),whosellstoendcustomers
·Advertisementtypicallyusedforconsumergoods
Distribution channels canthushave anumberof levels.Kotlerdefinedthe simplestlevel,thatofdirectcontactwithnointermediariesinvolved,asthe'zero-level'channel.
Thenextlevel,the'one-level'channel,featuresjustoneintermediarybetweenproducerandcustomer-a retailer.Insmallmarkets(suchassmallcountries)itis practicaltoreachthewholemarketusingjust
one-andzero-levelchannels.
Inlargemarkets(suchaslargercountries)asecondlevel,awholesalerforexample,isnowmainlyused
toextenddistributiontothelargenumberofsmall,neighborhoodretailers.
3.Whydosomecompaniesmakeluxuryproductsabroadratherthanathome?Giveexamples.
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leathergoods maker,whichoutsourcesallitsproductsto Asia,andBurberry,whichalsohasmanyAsian
licensingarrangements.
4.SomepeoplebelievethatluxuryfashionproductsshouldalwaysbemadeinEurope. What's youropinion?Giveexamples.
Althoughoutsourcingisawidespreadpracticenowadaysconsumershavedualattitudetoit.Thereisa strongpublicopinionregardingoutsourcing(especiallywhencombinedwithoffshoring-thepracticeof
movingacompany'soperatingbasetoaforeigncountrywherelabourcostsarecheaper)thatoutsourcing damagesaproductqualitydramatically.Tobehonest,Isupportthispointofview.Forexample,about
tenyearsagoallproductsofBritishcosmeticscompanyAvonweremadeinEurope.Butnowabout70%
ofitsproductionis outsourcedin Russiaandnearabroad.Ofcourcethepriceof Avon cosmeticsbecame
muchcheaperbutit’snotasecretthatthequalitychangeddramaticallytoo.
Unit 2. Travel
1.Whattypes ofairlinesdoyouknow?
2.Howdoyouunderstandtheterm“code-sharing”?
3.Whatformsofcooperationbetweencompaniesarethere?
4.Whydopeoplesometimesbehavebadlyonplanes?Whatcausessuchbehaviour?
1.Whattypesofairlinesdoyouknow?
Formerlyairlineswereclassifiedintolocal,regional,national andinternational.Todaytheyareclassified accordingtotheirannualturnover.Thebiggestcompanieshavetheturnoverfrom$100millionto$1
billion,thebigregional-$10-$100million,theaverage–lessthan$10million.
It’s very important to remember that there are two kinds ofairline operations-scheduled and
nonscheduled.Ascheduledairlineoperatesonfixedroutsatfixedtimesaccordingtoatimetablethatis availabletopublic.
Anonscheduledairlineoperateson routsatatimewhenthereis a demandfortheservice.The nonscheduledairlineisinotherwordsacharteroperationthatrentsanaircraft.
2.Howdoyouunderstandtheterm“code-sharing”?
Codesharingisabusinesstermwhichwasfirstoriginatedintheairlineindustryin1990whenthe
Australianairline,Qantas Airways andtheUS'sAmerican Airlinescombinedservicesbetweenanarray
ofUS domesticcitiesandAustraliancities.Thecodesharewaspartofa"cooperativeservices" agreementbetweenthetwocarriersbeforethevariousairlineallianceswereformed.Codesharingisa commercial agreementbetweentwoairlinesthatallows passengers to useaticketfromoneairlinetotravelon another.Mostmajorairlines todayhave code sharingpartnershipswith otherairlines,andcode sharingisakeyfeature ofthemajorairlinealliances.
Lotsofairlines,includingallthebiglegacylines,areinvolvedwithcodesharingarrangements.Those
arrangementspermityoutobuythroughtickets on routsthat nosingleairlinecanserve.Theymayalso provideopportunitiestocutthecostofyourairfare.
3.Whatformsofcooperationbetweencompaniesarethere?
Therearedifferenttypesofcooperationbetweenairlines:associations(likeInternationalAssociationof
AirTransport(IATA)whichdeals withtheairnavigation,thesecurityofairtransportandthe
coordinationofflightservices),particularglobalairlinealliancesandcodeshareagreementsthathave multiplied over the pastyears.
4.Whydopeoplesometimesbehavebadlyonplanes?Whatcausessuchbehaviour?
The psychologyofairrageis anewareaofstudy,andthere are almostasmanyexplanations as
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isincreasingconcernaboutanothercost-cutting exercise,which couldseriouslyharmpassengers’health:
cabinventilation.
Unit3.Organisation.
1.Whattypesofcompaniesdoyouknow?
2.Speakaboutflexibilityanditstypes.
3.Whatismeantby"teleworking"?
4.WhatdoyouknowaboutSOL company?Whyisitunusual?
1.Whattypesofcompaniesdoyouknow?
Historicallytherewereonly soleproprietorships. Thencamepartnershipsandthencorporations.
Corporations areaseveralcenturiesoldphenomena. Partnershipswerearrangementsbetweentwoormoreindividualsinwhichtheypooledresources,andsplitexpenses andprofits. Atfirstcorporations werecharteredbymonarchies. Historicallycorporationsofferedlimitedliabilityandpartnershipsdid not. Inotherwords,iftheventurefailed,theorganizersandpromotersofacorporation retainedtheir personalassets,whiletheowners andorganizers ofapartnershipcouldlosetheirpersonal assets tothe creditors ofthe business venture.
Wecannowdefinesoleproprietorshipas abusiness enterprise exclusivelyowned,managedand controlledbyasingleperson with allauthority,responsibilityandrisk.
Supposeyouwanttoopenarestaurantinyourlocality.Youwillneedtoorganizealotofthings.You mayfind thatitis notpossible toarrangethemoneyrequiredtostartandrunthebusiness alone. You
maythentalktoyourfriendsandallofyouagreeto runtherestaurantbycontributingacertainamount
ofmoneyandtheotherthingsrequired.Soallofyou jointobecometheowners andsharetheprofitsand
losses.Thisisanotherformofbusinessorganization–partnership.
Acompanyformof business organizationis knownasaJointStockCompany.Itis avoluntary
association ofpersons whogenerallycontributecapitaltocarryon a particulartypeofbusiness,whichis establishedby lawand canbedissolvedonly bylaw.Persons whocontribute capitalbecomemembersofthecompany.Thisformofbusinesshas alegalexistenceseparatefromitsmembers,whichmeanseven
ifitsmembersdie,thecompanyremainsinexistence.Thisformofbusinessorganizationsgenerally
requireshugecapitalinvestment,whichiscontributedbyitsmembers. Thetotalcapitalofajointstock companyis calledsharecapitalanditis dividedintoanumberofunitscalledshares.Thus,everymemberhassomesharesinthebusinessdependingupontheamountofcapitalcontributedbyhim. PrivateLimitedCompany.Thesecompanies canbeformedbyatleasttwoindividualshavingminimum fixedpaid–upcapital(theamountofmoneyisdeterminedbylegislationofthecountry).Thetotal membership ofthesecompaniescannotexceedacertainnumberofpeople(thisnumbercanbedifferent indifferentcountries).Thesharesallottedto itsmembers arealsonotfreelytransferablebetweenthem.
Thesecompaniesarenotallowedtoraisemoneyfromthepublicthroughopeninvitationandarerequired
touse“PrivateLimited”aftertheirnames.
PublicLimitedCompany.Aminimumofsevenmembersarerequiredtoformapubliclimitedcompany.
Itmusthaveminimum paid–up capital.Thereis norestriction onmaximum numberof members.The sharesallottedtothemembersarefreelytransferable.Thesecompaniescanraisefundsfromgeneral publicthroughopeninvitationsbysellingitssharesoracceptingfixeddeposits.Thesecompaniesare requiredtowriteeither‘publiclimited’or‘limited’aftertheirnames.These are themain,butnot the onlytypesofbusinessorganization.
2.Speakaboutflexibilityanditstypes.
Flexibilityisthecurrentbuzzwordtoday.Flexibilityisunderstoodastheabilitytochangeorbechanged
easilytosuitadifferentsituation.This hasanumberofrelatedmeanings.One typeofflexibilityhas
existedforsometimeintheformofflexitimeorflextime,wherepeoplecanchoosewhentheyworkwithincertain limits.Thenthereis theflexibleworking oftheBritishAirways officeinthemaincourse
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3.Whatismeantby"teleworking"?
Teleworking,alsoknownastelecommuting,meansusinginformationtechnologyand
telecommunications to replace work-relatedtravel. Simpleput, itmeans workingathomeorclosertohome. Withteleworking,employeesworkathomeorperhaps at alocalteleworkcenteroneormore daysperweek.Communicationisaccomplished byphone,fax,modem,andteleconferencing. Nationwide,morethan20millionworkersaregoingtoworksimplybypickingupthephoneorturning ontheir computers.
4.WhatdoyouknowaboutSOLcompany?Whyisitunusual?
SOL isaFinland'sCleaningServicecompanywhichcombinesradicalinnovationwithdisciplined
execution–awinningformulathatmopsupthecompetition.Locatedinarenovatedfilmstudiointhe heartofHelsinki,theofficeexplodeswithcolor,creativity,andchaos.Thewalls arebrightred,white,andyellow;theemployees wanderthehalls talking on portablephones(alsoyellow).Fewpeopledream
aboutbecomingacleaner.Butthatdoesn'tmeancleanerscan'tfindsatisfactionintheirwork.Thekeysto
satisfaction,Joronenbelieves,arefun andindividual freedom.SOL's cultureisbuiltrelentlessly--almost excessively--aroundoptimismandgoodcheer.Itscleanerswearred-and-yellowjumpsuitsthatreinforce thecompany'supbeatimage.SOL'slogo,ayellowhappyface,isplasteredoneverythingfromherblazer tothecompany'sstationerytoitsmostimportantbudgetreports.
Freedommeans abolishing alltherulesandregulations ofconventional corporatelife.TherearenotitlesorsecretariesatSOL,noindividualofficesorsetworkinghours.Thecompanyhaseliminatedallperks and status symbols.
Unit4.Change.
1. Whatchangeshavetakenplaceinorganizationsrecently?
2. Explainthemeaning ofBPR.
3. Howdoyouunderstand theterm'companyculture'?Whatissuesshouldbeincludedinto it?
4. SpeakaboutthechangestheUSandUKdepartmentstoreshavegonethrough.
1.Whatchangeshavetakenplaceinorganizationsrecently?
Recent yearshaveseenmassiverestructuring.Companiesdownsizedanddelayered, gettingridoflevels ofmiddle-managementinordertobecomeleaner,flatter,supposedlymoreefficientorganisations.Often thereasoningwasthatcomputernetworksallowtopmanagersinstantaccesstoinformationthatwas previouslygatheredandtransmittedupwardsbymiddlemanagers,whoseothermainfunctionwasto communicateexecutives'keymessagesdownwardstotheworkforceandinthistheywereaccusedof dilutingorconfusing themessages,orworse.Withfewerorganisational layers,topmanagers saytheycancommunicatemoredirectlywithfront-lineemployees,thepeoplewhoactuallyproducethegoods or
services,anddealwithcustomers.Withlessdirectsupervision,employeeshaveoftenbeenencouragedto makemoredecisionsforthemselvesinaprocessofempowerment.
Another trendwasre-engineering, theideathatanorganisationshouldnotchangeincrementally, butshouldstartagain fromscratchwithnopreconceptionsabouthowthings-shouldbedone,notjustin manufacturingbutinalltheprocessesthatcontribute to whatanorganization does,hencebusinessprocessre-engineering,orBPR.
The humansideofthis,again,wasthattherewouldprobablyberedundancies.Thepeople remainingwouldprobablyfeeldemoralized,wonderingwhenthenextwaveofchangewasgoingto
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2.ExplainthemeaningofBPR.
Businessprocessreengineering(BPR)isamanagementapproachaimingatimprovementsbymeansof
elevatingefficiencyandeffectivenessofthe processesthatexistwithinandacrossorganizations.BPRis arestructuringanorganizationby meansofaradicalreconsiderationofitscoreprocesses.ThekeybenefitsofBPRare:
·optimizationofbusinessprocesses:
·integration ofITsystems;
· structuringandguidingofreorganization;
·businesscontinuityplanning;
·managementknowledge.
3.Howdoyouunderstandtheterm'companyculture'?Whatissuesshouldbeincludedintoit?
Acultureis thevaluesandpracticessharedbythemembers ofthe group. CompanyCulture,therefore,is thesharedvaluesandpracticesofthecompany'semployees.
Companycultureisimportantbecauseitcanmake orbreakyourcompany.Companieswithanadaptive culturethatis alignedto theirbusiness goals routinelyoutperformtheircompetitors. Companycultures
evolveandtheychangeovertime.Asemployeeleavethecompanyandreplacementsarehired the companyculturewillchange.Ifitis astrong culture,itmaynotchangemuch.
Herearesomecharacteristicsofcompanyculturesthatothershaveusedsuccessfully.
·Missionclarity
·Employeecommitment
·Fullyempoweredemployees
·Highintegrity workplace
·Strongtrustrelationships
·Highly effectiveleadership
·Effectivesystemsandprocesses
·Performance-basedcompensationandrewardprograms
·Customer-focused
·Effective360-degreecommunications
·Emphasisonrecruitingandretainingoutstandingemployees
·Highdegreeofadaptability
·Highaccountabilitystandards
·Demonstratedsupportforinnovationanddevelopment
4. SpeakaboutthechangestheUSandUKdepartmentstoreshavegonethrough.
TheUS andUKdepartmentstores facedwith declineinpopularity.Itcanbeexplainedbyconsumers
demandingbettervalueandamoreinterestingandstimulatingexperiencewhileshopping.Department storesfacedstrongcompetitionfromspecialityretailers anddiscounters.Theirsteady lossofmarket sharemaybepartlybecausetheconceptwasborninadifferentera,atimewhen,forfamilies,atriptothestores combinedshoppingwithentertainment.Andnow,what is neededis anewapproach.Atypicalexample ofthis approachworkingis seenatSelfridges.This UKgrouphasrecastitselffroma sleepy