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

2 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 unit, with some of its staff hot-desking, particularly those who are homeworking, teleworking or telecommuting and only need to come into the office occasionally. A third type of flexibility is where employees are recruited on short contracts to work on specific projects, maybe part-time. Perhaps the organisation only has a core staff, and outsources or contracts out work from outside as and when required. Some management experts say that this is the future, with self-employment as the norm, and portfolio workers who have a number of different clients.

3. What is meant by "teleworking"?

Teleworking, also known as telecommuting, means using information technology and

telecommunications to replace work-related travel. Simple put, it means working at home or closer to home. With teleworking, employees work at home or perhaps at a local telework center one or more days per week. Communication is accomplished by phone, fax, modem, and teleconferencing. Nationwide, more than 20 million workers are going to work simply by picking up the phone or turning on their computers.

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

SOL is a Finland's Cleaning Service company which combines radical innovation with disciplined execution – a winning formula that mops up the competition. Located in a renovated film studio in the heart of Helsinki, the office explodes with color, creativity, and chaos. The walls are bright red, white, and yellow; the employees wander the halls talking on portable phones (also yellow). Few people dream about becoming a cleaner. But that doesn't mean cleaners can't find satisfaction in their work. The keys to

atisfaction, Joronen believes, are fun and individual freedom. SOL's culture is built relentlessly -- almost excessively -- around optimism and good cheer. Its cleaners wear red-and-yellow jumpsuits that reinforce the company's upbeat image. SOL's logo, a yellow happy face, is plastered on everything from her blazer to the company's stationery to its most important budget reports. Freedom means abolishing all the rules and regulations of conventional corporate life. There are no titles or secretaries at SOL, no individual offices or set working hours. The company has eliminated all perks and status symbols.

Unit 4. Change.

1. What changes have taken place in organizations recently?

2. Explain the meaning of BPR.

3. How do you understand the term 'company culture'? What issues should be included into it?

4. Speak about the changes the US and UK department stores have gone through.

1. What changes have taken place in organizations recently?

Recent years have seen massive restructuring. Companies downsized and delayered, getting rid of levels of middle-management in order to become leaner, flatter, supposedly more efficient organisations. Often the reasoning was that computer networks allow top managers instant access to information that was previously gathered and transmitted upwards by middle managers, whose other main function was to communicate executives' key messages downwards to the workforce and in this they were accused of diluting or confusing the messages, or worse. With fewer organisational layers, top managers say they can communicate more directly with front-line employees, the people who actually produce the goods or services, and deal with customers. With less direct supervision, employees have often been encouraged to make more decisions for themselves in a process of empowerment.

Another trend was re-engineering, the idea that an organisation should not change incrementally,

but should start again from scratch with no preconceptions about how things-should be done, not just in manufacturing but in all the processes that contribute to what an organization does, hence business process re-engineering, or BPR.

The human side of this, again, was that there would probably be redundancies. The people

remaining would probably feel demoralized, wondering when the next wave of change was going to come and whether it would be their turn to be thrown out.

2. Explain the meaning of BPR.

Business process reengineering (BPR) is a management approach aiming at improvements by means of elevating efficiency and effectiveness of the processes that exist within and across organizations. BPR is a restructuring an organization by means of a radical reconsideration of its core processes. The key benefits of BPR are:

· optimization of business processes:

· integration of IT systems;

· structuring and guiding of reorganization;

· business continuity planning;

· management knowledge.

3. How do you understand the term 'company culture'? What issues should be included into it?

A culture is the values and practices shared by the members of the group. Company Culture, therefore, is the shared values and practices of the company's employees.

Company culture is important because it can make or break your company. Companies with an adaptive culture that is aligned to their business goals routinely outperform their competitors. Company cultures evolve and they change over time. As employee leave the company and replacements are hired the company culture will change. If it is a strong culture, it may not change much.

Here are some characteristics of company cultures that others have used successfully.

· Mission clarity

· Employee commitment

· Fully empowered employees

· High integrity workplace

· Strong trust relationships

· Highly effective leadership

· Effective systems and processes

· Performance-based compensation and reward programs

· Customer-focused

· Effective 360-degree communications

· Emphasis on recruiting and retaining outstanding employees

· High degree of adaptability

· High accountability standards

· Demonstrated support for innovation and development

4. Speak about the changes the US and UK department stores have gone through.

The US and UK department stores faced with decline in popularity. It can be explained by consumers demanding better value and a more interesting and stimulating experience while shopping. Department stores faced strong competition from speciality retailers and discounters. Their steady loss of market share may be partly because the concept was born in a different era, a time when, for families, a trip to the stores combined shopping with entertainment. And now, what is needed is a new approach. A typical example of this approach working is seen at Selfridges. This UK group has recast itself from a sleepy 70s-style department store into a retailing good-structured modern department store. One of the main changes is that more floor space is rented to vendors, in what is sometimes referred to as the showcase business model: vendors design their own booths and are encouraged to be creative. The problem is that all department stores look the same.

Unit 5. Money.

1. How does money work?

2. What money institutions can you mention?

3. Describe different kinds of securities and different kinds of markets.

4. What can you say about the attitude to money in our culture? Has it changed in recent years?

5. How have Wal-Mart and Target stores performed lately?

1. How does money work.

Money makes the world go round, they say. Perhaps it is even truer that the world makes money go round, especially in an era of globalization when capital can flow freely to and from almost everywhere. Money is always looking for places where it will be most profitable and earn the greatest return on investment.

As an individual, you can put your money on deposit in a bank, and as long as the bank doesn't fail and the economy keeps functioning, you will get interest. Your money is lent out to people, businesses and governments who need it to finance their own projects, and the bank will make its money on the difference between what it pays out in interest on deposits and what it gets in interest from its loans.

If you want to live more dangerously you could buy some bonds, and as long as the organization or country you've invested in by lending it money doesn't default, you will get your interest payments, and later your bonds will eventually be repaid. To live even more dangerously, buy some shares and share in the profitability of your chosen company. In good times, the dividends will be more than what you would get from bonds, and the shares themselves will increase in value, giving you a capital gain if you sell them. But if the company runs into trouble and goes bankrupt, you will be among the last to be paid back, and you may get only part of what you put in, or you may lose all your money.

2.What money institutions can you mention?

This is for example banks, insurance companies, mutual funds (unit trusts in the UK) and pension funds who may, of course, be investing the money of private individuals indirectly.

The markets they invest in include the money and currency markets, stock markets for shares (also known as equities), commodities markets for anything from gold to pork bellies (used for making bacon), and property (buildings and land).

Let’s stop on several institutions.

The most famous money institution in every country is bank. Bank is a financial institution that acts as a payment agent for customers, and borrows and lends money. Banks borrow money by accepting funds deposited on current account, accepting term deposits and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current account, by making installment loans, and by investing in marketable debt securities and other forms of lending.

A mutual fund is a professionally-managed firm of collective investments that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, or other securities. In a mutual fund, the fund manager, trades the fund's underlying securities, realizing capital gains or losses, and collects the dividend or interest income.

3. Describe different kinds of securities and different kinds of markets.

From the point of view of investors, the world's financial markets exist in order to channel money toprofitable investment activities and projects. From the point of view of borrowers such as companies andgovernments, financial centres exist so that they can find capital on the best terms.

Most investors are not private individuals but institutions like banks, insurance companies, mutual fundsand pension funds who may, of course, be investing the money of private individuals indirectly. Themarkets they invest in include the money and currency markets, stock markets for shares (also known as equities), commodities markets for anything from gold to pork bellies (used for making bacon), and property (buildings and land).

There are also markets for futures in currencies, equities, bonds and commodities: a future is a fixed-price contract to buy a certain amount of something for delivery at a fixed future date.

There are markets for options in currencies, equities, and bonds. Here, an investor buys the right tobuy or sell a certain amount of these things at a certain price and particular date in the future. This is aform of betting on how prices will move.

Some of these markets, like stock markets, are based in particular buildings, some with trading floors, but most trading is now screen and telephone based. Others, like bond and currency markets, are 'virtual', in the sense that selling and trading takes place by phone and computer between the premises of issuers, brokers and traders.

Securities constitute the objects which investments are made of. There are various kinds of securities.

They are traded in markets, each one with specific rules.

Stocks are the most popular security for investment. They actually represent ownership in a specific company. The most common way stocks appear in the market is by operations called initial public offerings (IPO). These happen when a company decides to issue stocks, but giving away part of it to the public, in return for money paid by the new shareholders. The public gains a part of the company, by the cost of paying money for it, while the company obtains a massive amount of money, by the cost of having to give away part of its ownership, as well as part of its profits in the form of dividends.

Outside IPO's, stock can be bought and sold in stock exchanges. These are places (physical or virtual) where stocks are assigned a selling price and a buying price. Anyone can buy or sell stocks with the help of brokers.

Companies often need money for various ends, such as improving itself, expanding, buying other

companies, and so on. There are many forms of doing this. One of it is using a bond. A bond is a contract between an issuing company and a buyer. In this contract, the buyer lends a certain amount of money to the company, for a certain number of years. In return, the company is obliged to pay interest to the buyer, periodically, at a specified rate.

Funds become an interesting investment tool for everyone who is not interested in wasting time with stock or bond picking, trading, and so on. Investment companies manage one or more funds, where money from many investors is managed by professionals. One investment fund usually holds a portfolio of securities. The decisions to buy or sell those securities are taken by the investment company behind the fund.

4. What can you say about the attitude to money in our culture? Has it changed in recent years?

Money can be a curse or a blessing in our lives. If we deal with it according to the world’s standards, it can be a curse. Money is the number one source of stress and the primary cause for divorce.

People's attitudes towards money vary enormously and are largely influenced by the values they were brought up with and how much money they have now.

Assuming there's enough money to keep a roof over your head and buy basic food stuffs, what you do with the rest of your money will depend on your particular attitude. The following three statements broadly sum up the most common attitudes to money in today's culture:

1. Money is for enjoying - money is for spending on the things that make you happy. No one knows what the future may hold or what can happen tomorrow, so you should enjoy what you have when you have it. Money's no use when you're dead, so live for today.

2. Money is for security - money should be spent on making life comfortable. Once you have the basic home comforts, it's important to have money put aside for a rainy day. No one knows what the future may hold, so it's sensible to be prepared.

3. Money is for sharing - money should be shared generously with those you love and those less

fortunate than yourself. Buying presents, entertaining others and giving money to charity creates feelings in yourself and others that are priceless. No one knows what the future may hold, and some day you may

need the favour returned.

So here are the main attitudes to money in our culture to my mind and I don’t think that my opinion differs from most people, so the attitude to money doesn’t change through years.

5. How have Wal-Mart and Target stores performed lately?

Wal-Mart Stores is an American public corporation that runs a chain of large, discount department stores. It is the world's largest public corporation by revenue. It is the largest private employer in the world and the fourth largest utility or commercial employer. Wal-Mart is the largest grocery retailer in the United States.

On September 12, 2007, Wal-Mart introduced new advertising with the slogan, "Save Money Live Better," replacing the "Always Low Prices, Always" slogan, which it had used for the previous 19 years.

Global Insight, which conducted the research that supported the ads, found that Wal-Mart's price level reduction resulted in savings for consumers.

Saving people money to help them live better is the goal of Wal-Mart. It’s the focus that underlies everything at Wal-Mart. And for the millions of customers who shop in these stores it means a lot. By offering the best possible prices on the products customers need, Wal-Mart can help them afford something a little extra.

Target Corporation's main retailing subsidiary, Target Stores, is a United States discount retail chain consisting of 1,591(more than 1500) stores. It has units in all states except for Alaska, Hawaii, and Vermont, operating under the heads of Target, Target Greatland, and SuperTarget. Target Corporation has aggressive plans to have 2,000 stores open by the year 2010, including expanding to Alaska and Hawaii.

Target stores tend to attract younger and more educated and affluent customers than its competitors.

Target has cultivated a more upmarket and style-conscious image than other discount retailers. It is the third-largest general retailer in the US by revenues.

Unit 6. Advertising.

1. What forms of advertising do you know?

2. Explain the meaning of 'direct marketing'. Why is it considered targeted means of advertising?

3. What is the difference between 'product placement' and 'product endorsement'?

4. What makes Mike's advertising tick?

5. How should you plan an advertising campaign?

6. Give examples of good and bad advertisements.

1. What forms of advertising do you know?

The main form of advertising is media. It can include wall paintings, billboards, street furniture

components, printed flyers, radio, cinema and television ads, web banners, mobile telephone screens, magazines, newspapers, sides of buses or cars, and so on. Any place an "identified" sponsor pays to deliver their message through a medium is advertising. So you can see a lot of advertising in the streets.

Another famous type of advertising nowadays is product placement. It is when a product or brand is noticed in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand. It is very popular nowadays for cars, watches, clothes. For example, product placement for Ford, BMW and Aston-Martin cars are featured in recent James Bond films, most notably Casino Royale.

The TV commercial is generally considered the most effective mass-market advertising format, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events. For example, football. Increasingly, other media are overtaking television because of more consumer's usage of the internet.

Advertising on the World Wide Web is a recent phenomenon. Prices of Web-based advertising space are dependent on the "relevance" of the surrounding web content and the traffic that the website receives.

E-mail advertising is another recent phenomenon. Unsolicited bulk E-mail advertising is known as "spam". So these are the most famous forms of advertising nowadays to my mind.

2. Explain the meaning of 'direct marketing'. Why is it considered targeted means of advertising?

Direct marketing is one of the type of marketing. There are two main characteristics which differs it from other types of marketing or advertising. The first is that it attempts to send its messages directly to consumers, without the use of other media. This involves unsolicited commercial communication (spam, junk mail, etc.) with consumers or businesses. The second characteristic is that it is focused on driving

purchases that can be attributed to a specific "call-to-action." If the advert asks the prospect to take a specific action, for example call a free phone number or visit a website, then the effort is considered to be direct response advertising.

Direct marketing is attractive to many marketers, because in many cases its positive effect (but not negative results) can be measured directly. For example, if a marketer sends out one million solicitations by mail, and ten thousand customers can be tracked as having responded to the promotion, the marketer can say with some confidence that the campaign led directly to the responses. The number of recipients who are offended by the junk mail/spam, however, is not easily measured. By contrast, measurement of other media must often be indirect, as there is no direct response from a consumer.

3. What is the difference between 'product placement' and 'product endorsement'?

Product placement advertisements are promotional ads placed by marketers using real commercial products and services in media, where the presence of a particular brand is the result of an economic exchange. When featuring a product is not part of an economic exchange, it is called a product plug.

Product placement appears in plays, film, television series, music videos, video games and books.

Product placement is linked with the inclusion of a brand's logo in shot, or just appearance of a product in shot. This is done without any special mention, it is done so that it looks like a natural part of work. Most movies today contain product placements. So the most common form is movie and television placements and more recently computer and video games.

In promotion and of advertising, a recomendation or endorsement consists of a written or spoken

statement, sometimes from a public figure, sometimes from a private citizen. So product endorsement it is when a well-known person says how good a product is in advertisements. And people will buy the product because they like or trust the person.

Today endorsements appear mostly in television advertising. For example, a smiling star may

demonstrate and describe the benefits that she receives from using this or that product. In the case of celebrity endorsements advertisers aim to use the recognition-factor to draw on the halo effect. In theory, this source transfers from the celebrity to the advertised product, brand, and manufacturer. A problem with using celebrity endorsements involves any negative publicity that the celebrity might get: it will also transfer back to the product, thereby reducing brand equity.

4. What makes Nike's advertising tick?

Phil Knight, the co-founder and former Chief Executive of Nike, has an absolutely clear and committed strategy to use celebrity athlete endorsement. He has built Nike’s expansion into sport after sport from its athletics roots on the back of sporting masters. From the beginning Nike has been prepared to take a gamble on sporting bad boys others would not touch. It was a strategy that began with Ilie Nastase, the original tennis bad boy. The Romanian had the quality that has come to represent Nike and its advertising: attitude. After extraordinary growth, Nike became number one trainer manufacturer in the US. But then it experimented unsuccessfully with expansion into non-athletic shoes, and lost its number one position to Reebok.

Knight bet the future of the company on a new feature: a new air technology inside the trainer. Sales took off and the rest is history. This brings to globalization and the question of how American the brand can be. Nike uses a mix of global ad campaigns such as ‘good v evil’ and local advertising such as its famous poster campaigns in the UK. Marketing directors at Nike do not rely on market research pre-testing which often reduces the impact of more experimental commercials. There is also the long relationship with one of the world’s best ad agencies. Things only happen in Nike ads that sportsmen and women can really do.

5. How should you plan an advertising campaign?

An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC). Advertising campaigns appear in different media across a specific time frame.

The critical part of making an advertising campaign is determining a campaign theme, as it sets the tone for the individual advertisements and other forms of marketing communications that will be used. The campaign theme is the central message that will be communicated in the promotional activities. Taking on your own advertising campaign is no easy task. You can do it on your own but you should be ready to roll up your sleeves and get to work. Your Marketing Plan

Nothing can help you identify your goals more than your marketing plan. You learn a lot about your company, your competitors and your long-term goals by creating and following your marketing plan. This is crucial to knowing what type of advertising is best for you.

Create a Plan of Action

Once you have your marketing plan, you must create a plan of action. Your plan of action also gives you crucial info you can use in executing your ad strategy.

Define Your Advertising Budget

How you advertise depends on your ad budget. You need to strategically use your advertising money. If you're only allowing a small portion of money to advertising, you wouldn't want to throw it all into the production of one commercial that runs at 2 a.m. Know exactly how much you will spend on your advertising first so you can make wise decisions in the creation and placement of all ad mediums.

Hunt for Affordable Opportunities

Running your own ad campaign means you have to be your own media director. You've got to find the best ad placement and the most affordable opportunities to fit into your budget. If you're limited to a very small budget, you can find many ways to bypass high advertising costs.

Know Your Target Audience

You can't advertise effectively if you don't hit your target audience. Know who they are before you start creating your ads. If your company sells scooters to seniors, you don't want to invest in cable ads to run on MTV.

Advertise in Appropriate Mediums

Of all the different advertising mediums you can use, you have to be able to use these mediums to your benefit. Spending all of your money on a direct mail campaign when your ad dollars would be better spent on print ads is going to limit how many customers you could've gained. Take a look at each medium, think about your target audience, take a look at your marketing plan and your plan of action and decide which medium(s) will be best for your ad dollars.

Don't Be Afraid to Hire Freelancers

If you can't turn your advertising over to an agency, still consider hiring a freelance copywriter and/or graphic designer. These professionals know what makes a good advertisement.

Many freelancers have worked in advertising agencies so you get the benefit of their expertise. Plus, freelancers can give you professional copy and materials at an affordable cost.

Consistency is Key If you're running TV and radio commercials, print ads and a direct mail campaign, keep them consistent.

Use the same announcer and music for your commercials. Print materials should use the same colors and fonts. Use the same tag line. You want to keep everything consistent so your potential customers start identifying your tag line, your colors, your font, your announcer, jingle - everything - that relates to your company's ad campaign.

Frequency

Buying space for one radio commercial that airs once at 4:30 in the morning isn't going to get much of a response. You want commercials to have a larger frequency so you can increase your chances of hitting hat target audience. If you're running a direct mail campaign, decide the frequency of your materials up front. Once you send your initial materials out, how many times will you send out follow up materials?

Know the answers before you begin to help maximize your strategy's success.

Books

When all else fails and you still run into questions, there are plenty of books you can use to give you guidance. Also be on the lookout for titles that have just been released so you can keep on top of current advertising trends.

6. Give examples of good and bad advertisements.

An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC). Advertising campaigns appear in different media across a specific time frame.

The critical part of making an advertising campaign is determining a campaign theme, as it sets the tone for the individual advertisements and other forms of marketing communications that will be used. The campaign theme is the central message that will be communicated in the promotional activities.

Good or bad will be this advertisement it’s another question. It is difficult to identify which

advertisement is good and which not, because even in the surroundings of pitchmen there are disputes about it. One people consider the most important in advertisement is that it could sell the product, the others more creative persons make useless from the point of sales but interesting for people advertisements.

From my point of view the good examples of advertisements it’s the advertising of almost all perfumes.

It is always stylish, charming trailer with good selected music. For example the advertisement of Channel №5 with Nicole Kidman. It is short, fascinated, low-pressured advertising.

Another good example of advertisement is classic advertising of New Year Coca-Cola. It is good looking advertisement, funny which helps you to feel the approaching of holiday.

As for bad examples, to my mind each advertisement in its trailer should contain the short message of the theme of this or that advertising. But this message should be on theme, it should contain the right sense of the advertising subject. For example the trailer of Vanish. At the end of advertisement there is a phrase: “Pink color, trust it and there will be no spots”. Whom should we trust? The color or the feature in the pink pot? It’s not correct message of the product.

Unit 7. Cultures

1. Give examples of cross-cultural issues.

2. In what way should cultural stereotypes be handled?

3. Is there a difference between cultures and subcultures?

4. Explain the meaning of the term ‘cultural awareness’. Why is it important?

5. What advice would you give to a business visitor coming to Italy, the UAE, to Russia?

1. Give examples of cross-cultural issues.

An individual's cultural background will affect the specific way in which he or she sees the environment and also how the individual might show his or her feelings, emotion, distress, or conflict in behavior, thought or action. Therefore, culture will influence the experience of mental disorders and how they might present.

Miscommunication is the most popular example of cross-cultural issues.

Miscommunication across cultural lines is usually the most important cause of cross-cultural problems.

Miscommunication can be caused by several problems:

• differences in body language or gestures. The same gesture can have different meanings in different parts of the world. For example, Bulgarians shake their heads up and down to mean no. In addition, the way people count on their fingers is not universal: The Chinese count from one to ten on one hand, and eight is displayed by extending the thumb and the finger next to it. The same gesture is interpreted as meaning two in France and as pointing a gun in North America.

• different meanings for the same word. Like gestures, words can have different meanings or

connotations in different parts of the world. The French word "char" means Army tank in France and car in Quebec. The word "exciting" has different connotations in British English and in North American English. While North American executives talk about "exciting challenges" repeatedly, British executives use this word to describe only children’s activities (children do exciting things in England, not executives).

• different assumptions made in the same situation. The same event can be interpreted many different ways depending on where one comes from. For example, although the sight of a black cat is considered a lucky event in Britain, it is considered unlucky in many other countries particularly in Russia.

So in extreme cases, miscommunication can lead to casualties.

2. In what way should cultural stereotypes be handled?

We use stereotypes in part because it’s so hard to take in all of the complicated information about other people in the world. It’s difficult to spend the amount of time necessary to understand why or in what different ways people behave. So instead, we learn early in our lives to accept stereotypes of groups, or individuals. We develop stereotypes not just for large cultures, but smaller ones.

Stereotypes eliminate the challenges of understanding people who are different from ourselves; they supposedly give us a general overview of whole groups of people so we know what to expect and how to act. Unfortunately, so many stereotypes are inaccurate(неточный) and are used as a method of scapegoating(козел отпущения), or to separate "their" behavior from "my" behavior. We don’t always

agree with, or like the way another cultures behave because it is different, and we therefore perceive it as wrong, and develop negative/ugly descriptions (stereotypes). When we have problems with someone of a different group, we tend to identify the problem as having to do with the group, rather than ourselves or the specific person. So stereotypes do get in the way of how we think and feel. It makes us very judgmental about others and unfortunately often erroneously so. Stereotypes prevent us from identifying the feelings that are really go on inside of us. With stereotypes, the belief will remain that someone did something to us, rather than the problem, fear, or rigidity/closed thinking being within ourselves. When

we’re stereotyping we get caught up in the issue of that’s what "they do", that’s how "those people" are, instead of being in touch with our actual feelings of hurt, confusion, being slighted, left-out, anger, etc.

3. Is there a difference between cultures and subcultures?

Culture can be defined as all the ways of life including arts, beliefs and institutions of a population that are passed down from generation to generation. Culture has been called "the way of life for an entire society." As such, it includes codes of manners, dress, language, religion, rituals, norms of behavior such as law and morality, and systems of belief as well as the art.

Various definitions of culture reflect differing theories for understanding, or criteria for evaluating, human activity.

A subculture is a set of people with a set of behaviors and beliefs, culture, which could be distinct or hidden, that differentiate them from the larger culture to which they belong. If the subculture is characterized by a systematic opposition to the dominant culture, then it may be described as a counterculture.

Subcultures can be distinctive because of the age, race, ethnicity, class, and/or gender of the members.

The qualities that determine a subculture as distinct may be aesthetic, religious, political, sexual or a combination of factors. Members of a subculture often signal their membership through a distinctive and symbolic use of style, which includes fashions, mannerisms, and argot.

The study of subcultures often consists of the study of symbolism attached to clothing, music and other visible affectations by members of subcultures, and also the ways in which these same symbols are interpreted by members of the dominant culture.

So subculture it is the stream inside the main culture and they are connected with each other in so or that way.

4. Explain the meaning of the term ‘cultural awareness’. Why is it important?

Cultural Awareness is developing sensitivity and understanding of another ethnic group. Awareness extends to special foods, manners of dress, language, religious preferences and observances, and differences in communication styles. (For example, in some cultures it is impolite to make eye contact, especially with someone you do not know well.) To enhance the quality of the visit, it is helpful to be aware of cultural differences and be sensitive to those differences.

Cultural awareness recognises that we are all shaped by our cultural background, which influences how we interpret the world around us, perceive ourselves and relate to other people. You don’t need to be an expert in every culture or have all the answers to be culturally aware; rather, cultural awareness helps you to explore cultural issues with your recipients more sensitively.

Information about specific cultural practices will help to increase your cultural knowledge by providing an overview of cultural characteristics and issues. However, it is always important to identify individual needs and preferences and remember that no individual can be reduced to a set of cultural norms.

Within any culture, peoples’ values, behaviour and beliefs can vary enormously. Differences may occur due to time of arrival in Australia, length of settlement, socio-economic background, level of education,

way of life, identification with cultural and religious background, and different life experiences.

Key Considerations

· Be aware of your own cultural influences.

· Be aware of judging other people's behaviour and beliefs according to the standards of your own

culture.

· Be aware of making assumptions about cultural influences and applying generalisations to

individuals.

· Understand that the behaviour and beliefs of people within each culture can vary considerably.

· Understand that the extent to which people adopt practices of their new country and retain those

from their cultural background can vary within communities, even within families.

· Understand that not all people identify with their cultural or religious background.

· Increase your knowledge about different cultural practices and issues through cultural background information sessions and/or resources and cultural awareness training.

· Understand the importance of appropriate communication.

5. What advice would you give to a business visitor coming to Italy, the UAE, to Russia?

Italy

Lively conversation is common in Italy. Welcome topics of conversation include Italian architecture, art and films, sports (especially football), opera and praising the hospitality of the country. It is best to avoid criticizing Italian culture, even if your Italian counterparts are doing so. Don’t give a business gift until you receive one. Your gift should be a well known brand name. gifts of alcohol or crafts from your country are often good choices. Other possible gifts are fine pens, a framed print or picture, silver key rings or calculators. Avoid giving gifts showing your company’s logo. Hospitality plays a key role in Italian business culture. Regardless of how you feel, refusing an invitation of any kind may give offence.

The business breakfast is almost unheard of. Rare exceptions may be found in the major cities. Business dinners involve only a small, exclusive group. If you are the host, check with your Italian contact before making any invitations. Lunch is still the main meal of the day in most areas of the country. It is usually served after 12:30 p.m. and often has many courses.

United Arab Emirates

The hosts usually set the subject of conversation. They will normally begin with polite enquiries (How are you? How are you enjoying your visit? etc.). If others arrived before you, your hosts will often tell you the subject of the previous conversation and invite you to contribute. Giving gifts in the UAE is more complex than in other countries. This is partly because of the mixture of nationalities: each nationality has different tastes and customs. Also, nearly everything can be purchased in the UAE less expensively than elsewhere in the world. As a gesture of respect, your host is likely to open and carefully examine your gift in your presence. It is important that your gift is the best you can afford to avoid embarrassment. Sharing a meal is considered the best way for people to get to know one another. Locals often entertain at home but they will accept a foreigner's invitation to a hotel or restaurant. Hospitality in the UAE is very important but should not be interpreted as future commercial success. There are local customs to be aware of, for example, it is considered bad manners to either eat or offer something with the left hand.

Russia

Obtaining an appointment can be a tremendous challenge, so persistence and patience are essential. Once your appointment is scheduled, do everything you can to avoid cancellation.

When making appointments, be sure to schedule them far in advance. It will also be in your best interests to confirm any appointment several times, as the scheduled date approaches.

The Russian day begins early, but it can be difficult to foresee when all other daily activities will begin and end. Schedules are constantly subject to change, often at the last minute. Any visitor should strive to be punctual, but at the same time flexible.

Always be punctual, but do not be surprised if your Russian contacts are not. It is not unusual for a Russian to be one or two hours late for an appointment. Generally, the more important the meeting is for your Russian counterparts, the more punctual they will be. Allow plenty of time for each appointment.

Not only may appointments start late, they may last far longer than originally planned.

Business hours are generally from 9:00 a.m. to 5:00 p.m., Monday through Friday.

There is an old Russian proverb--"they meet you depending on how you're dressed and they say good bye depending on how wise you seem."

Nowadays, Russian businesspeople pay a lot of attention to how they are dressed. Russian people in general probably spend more money from their family budget on clothing then any other nation in the world.

Those who can't afford to buy top fashion brand clothing (such as Versace, Armani, Gucci, Calvin Klein or Hugo Boss) prefer to be dressed in cheaper but still well made suits rather than wear the fake products widely available in numerous markets across the country.

If you're a man, your best bet will be to wear a suit and tie (make sure not to wear the same ones every day) for all your meetings, whether it's in an office or restaurant. Dark colours and white shirts are only for special ocasions. Otherwise, choose tones in light blue, gray, or brown.

Visitors should try to speak in a calm, moderate, tone of voice at all times.

Usually, your Russian colleagues will be delighted if you make the effort to speak even a few sentences of their language. Nevertheless, if your Russian party speaks your languge, your decision to speak Russian may cause confusion (e.g.--they might think that their English is not good enough).

Russians are sometimes very careful about what they say, and may revert to speaking metaphorically,

symbolically, and perhaps even cryptically. Consequently, there is a great deal of reliance on nonverbal

communication. At other times, however, they can be extremely frank; it all depends on the situation.

When a Russian touches another person during conversation, it is usually a sign of confidence.

You will sometimes find the Russians to be enthusiastic about discussing politics and the challenges of living in Russia. Participating in this kind of discussion and expressing your views (even if they are opposite) is more welcome than just being an active listener.

Bringing up the subject of Russian culture and history can be an appreciated gesture. Russians are extremely educated--so don't be surprised if they start to talk about the history (more likely than culture) of your own country. Be prepared.

Personal questions are best avoided, although you may be subject to these inquiries. Make the effort to answer these questions as best as you are willing to allow, since your Russian companions may press you for details.

There is tremendous affection for children in this culture; if you are a parent, showing photographs of your children can be an effective way of building good will.

In conversation, it can be permissible to discuss your feelings and hopes for the future. Sometimes, your Russian companions will be far more interested in the personal side of your character than your business agenda.

Welcome Topics of Conversation

the changes taking place in Russia current events World War II economic difficulties positive contrasts and comparisons between Russia and your country [let your Russian companions bring

up this subject first] books films

Topics to Avoid

complaints about Russia the Holocaust the Czar and the monarchy ethnic minorities

religion comparing/contrasting Russia to other developing countries

comparing/contrasting Moscow and Saint Petersburg Generally speaking, Russians take pleasure in giving and receiving gifts. Be sure to bring an assortment of gifts, so that you will always have something appropriate to give. Cheaper gifts do not have to be wrapped, while more expensive ones should be. Gifts for children are usually opened in private, while gifts for adults are generally opened in the presence of others. If your gift was a hit, you will hear many 'thank-yous.' Russians spend a lot of money on gifts. Avoid giving gifts such as pencils, pens, lighters (unless they are expensive ones), cheap wine or vodka, notebooks, etc.

When invited to a Russian home, bring a gift of chocolates, dessert items, good wine, or other alcohol [try to select something other than vodka, which is widely available]. Bringing a bouquet of flowers (not too expensive though) for women you are visiting (doesn't really

matter how many of them are in the family you're visiting) is a good idea. Make sure you have an odd number of flowers. Even numbers usually are for funerals.

Appreciated Gifts

wine or other alcohol [try to select something other than vodka]

fine chocolates [when invited to a home]

a food item that is scarce towels cameras watches

perfume, cologne [as a thank-you for an overnight stay]

clothing [as a thank-you for an overnight stay]