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UNIVERSITATEA SPIRU HARET

DEPARTAMENTUL DE LIMBAJE SPECIALIZATE

SARA MOLDOVEANU

ECONOMIC DISCOURSE
Applications

Descrierea CIP a Bibliotecii Naionale a Romniei


MOLDOVEANU, SARA
Economic discourse: applications / Sara Moldoveanu.
Bucureti, Editura Fundaiei Romnia de Mine, 2006
140 p.; 23,5 cm
ISBN
811.111:33(075.8)

Editura Fundaiei Romnia de Mine, 2006

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Contents
Lesson One
The Employment File Application Letters and CVs ...6
Debate ..
Vocabulary Useful Phrases ..
Grammar Review Sequence of Tenses The Relation of
Simultaneity .
Lesson Two
What Is Marketing? .18
Debate ..
Vocabulary Useful Words and Phrases .
Grammar Review Sequence of Tenses The Relation of
Anteriority
Lesson Three
Using the Direct Marketing Strategy Framework Acquire with
Product. Retain with Service . .28
Debate ..
Vocabulary Useful Words and Phrases
Grammar Review Sequence of Tenses The Relation of
Posteriority .
Lesson Four
Company Structure Types of Managers ..38
Debate ..
Vocabulary Useful Terms and Phrases .
Grammar Review Sequence of Tenses Expressing Future Time
Lesson Five

Do You Have the Traits to Be a Manager? 46.


Debate ..
Vocabulary Useful Terms and Phrases .
Grammar Review The Subjunctive Mood
Synthetic Subjunctive the Old Form .
Lesson Six
Advertising What Is Creative? .56
Debate ..
Vocabulary Useful Words and Phrases .
Grammar Review The Synthetic Subjunctive Present
Subjunctive .
Lesson Seven
Advertising The Importance of Being Creative 67
Debate ..
Vocabulary Useful Words and Phrases .
Grammar Review The Synthetic Subjunctive Past Subjunctive
Lesson Eight
Internet Sites Sell, Service and Inform 76
Debate ..
Vocabulary Useful Words and Phrases
Grammar Review The Analytic (Periphrastic) Subjunctive
Lesson Nine
Digitalization and Connectivity ..84
Debate ..
Vocabulary Useful Words and Phrases .
Grammar Review Conditional Clause Type 1 ...
Lesson Ten
International Trade ..92
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Debate ..
Vocabulary Useful Words and Phrases .
Grammar Review Conditional Clause Type 2 ..
Lesson Eleven
International Banking ..99.
Debate ..
Vocabulary Useful Words and Phrases .
Grammar Review Conditional Clause Type 3
Lesson Twelve
Intrapersonal Variables that Influence Consumer Behaviour
Debate .. 107
Vocabulary Useful Words and Phrases .
Grammar Review Reported/Indirect Speech (1) ...
A) Reporting Verbs, B) Tenses Transformations
Lesson Thirteen
Gender Discrimination 118
Debate ..
Vocabulary Useful Words and Phrases .
Grammar Review Reported/Indirect Speech (2)
C) Time/ Place Signifiers, D) Pronouns Changes
Lesson Fourteen
Case Study: Vodafone ..125
Debate ..
Vocabulary Useful Words and Phrases .
Grammar Review Phrasal Verbs ...
Bibliography 135

1. Lesson One
THE EMPLOYMENT FILE APPLICATION
LETTERS AND CVs

One should take great care when writing a letter of


application for a job. If there are a lot of applicants, a good letter
can get you an interview whereas a bad letter will simply be
ignored.
Some applicants make the mistake of phrasing their
letter in an unusual way. Others write on purple paper, thinking
that this will make their application stand out. A straightforward
letter on good quality notepaper will give a much more
favourable impression. Unless your handwriting is quite
illegible an application should usually be handwritten. Do not
use coloured ink. Black or dark blue is best and a fountain pen
looks better than Biro.
Many advertisements ask applicants to write a brief letter
and send a curriculum vitae (CV) or personal data sheet (as the
Americans call it). This should set out neatly, on one sheet of
paper, details about the applicant, his or her education, training
and experience. Unless otherwise stated, a CV or personal data
sheet should be typed. When submitting a CV try to bring one or
two relevant skills or qualifications into your covering letter.
In many EC countries and in the United States it is the
custom to enclose a recent photograph with the application letter.
Here are some suggestions that you may use when
replying to an advertisement for a position:
write from your home address;
say where you saw the advertisement or heard about the
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position;

say why you are applying for that particular post;

state your qualifications and offer copies of relevant


certificates;

if you are working, describe what you are doing now


and give reasons why you want to change your job.
If no post has been advertised but you know of a
vacancy, or think you may have a chance of employment
sometime in the future. you can write an unsolicited
application:
When writing an unsolicited application you should:

address the person responsible for the position by


name when possible;

mention the mutual contact or acquaintance who told


you that there might be a vacancy;

include any other points mentioned above which may


be relevant.
(after Isobel E. Williams Manual de Coresponden, published by
Taracart srl by copyright arrangement with Chambers Harrap
Publishers Ltd, 1998)

Curriculum Vitae Sample Form


CURRICULUM VITAE
Personal details:
Date of birth:
Place of birth:
Marital status:

David Brown. 21 South Road, Richmond.


Surrey RD7 6AJ
16 March 1986
Richmond. Surrey
Single

Education:

Sept. 1993 June 1997 Richmond


Primary School
Sept 1997 June 2001 Richmond
Secondary School
Oct. 2001 Present I attend the Faculty
of Marketing and Foreign Trade, the
University of Richmond

Work experience:

June 1999 Sept 2000 Kia Motors As


a promoter for Kia Motors 2000 Car
Showroom, I advertised the Kia cars and
discussed about their advantages with
customers, marketers and sales personnel
from around the world.
Sept. 2001 Present Hyundai My
main responsibilities include promoting
Hyundai cars, researching and writing
reports on new product development as
well as to compile information on car
industry trends.

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Foreign
Languages:

English advanced level


French intermediate level

Computer
Literacy:

Word, Windows, Excel

Other Interests:

Im also interested in football, fitness,


cinema, travelling and reading

References:

Available on request

Application Letter in reply to an advertisement


Lucy Nguyen
62 Staghorn Drive
BALMORAL Q 4171
Tel 07 3341 4333
10 March 2003
Ms Mary Graham
Human Resources Manager
XYZ Consulting
PO Box 123
BRISBANE Q 4001
Dear Ms Graham,
I wish to apply for the position of Marketing Officer as
advertised in the Courier Mail, Saturday 9 March, 2002
reference No: KL23 (or through the QUT Careers &
Employment Service).
This year I will complete a Bachelor of Business at Queensland
University of Technology (QUT) with a major in Marketing and
secondary major in Management. I have achieved an overall
Grade Point Average of 5.3 (on a 7 point scale) and have a
special interest in Strategic Planning and Principles of
Marketing.
As part of my studies, I participated in two industry-based
project groups. One involved undertaking a detailed analysis of
the consumer markets for a major clothing retailer and the other
developing a market plan and campaign for a relatively small,
energetic and upcoming sports clothing manufacturer and
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distributor. Both projects provided me with an opportunity to


work closely with industry personnel and strengthen my interest
in this area. The two companies regarded the outcome of the
projects as highly productive and successful.
I have undertaken direct promotional work as part of my
Billabong Family Bistro work in Gympie and have consolidated
my basic communication skills through my work at Myers and
my vacation placement with a Queensland Government
Department.
I bring to any job a strong work ethic and desire to succeed, a
willingness to cooperate with others, and a need to produce
quality work. As a result of the knowledge and skills gained
through my studies at QUT and my industry-based experiences,
I will be able to meet more than adequately the requirements of
the Marketing Officer position at XYZ Consulting.
Thank you for considering my application. Enclosed is a copy of
my resume and academic record. I would appreciate an
interview and I am available at short notice. If I am not
contactable on my home phone: 07 3333 4444, a message could
be left with my neighbour, Mrs Reid on 07 3434 3434 (or my
parents on 07 5555 4444).
Yours sincerely,
Lucy Nguyen
Debate
1. In your opinion, whats more important, the layout or the
content of a CV? Bring arguments.
2. Could you explain what is the role of an application letter?
3. Why should a job applicant be neat and appropriately
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dressed?
4. Have you ever applied for a job? Share your experience with
your mates.
Vocabulary Useful Phrases
Opening Phrases
In reply to/ With reference to your advertisement in . . . of . . .
I would like to apply for the position of. . . in your company;
I see from your advertisement in . . . that you are looking for a...;
I recently heard from. . . that there is a vacancy in your
marketing department;
Mr Brown of the accounting department has informed me that
some time in May there will be a vacancy/an opening for. . . in
your office.
Education/ Work Experience
I attendedschool foryears;
In 19.I graduated from;
I have a degree in.from the University of;
I speak French and German fluently;
My proficiency in English means that I would be able to
handle all the English correspondence on my own, to answer
phone calls as well as to make appointments and arrangements
for my manager if necessary.
Reasons for Wanting a Change
I would like the opportunity to work more with people, to
travel and to promote products;
My reason for applying for the post is that I would like to be
part of a creative team of professionals such as the one from
your advertising agency;
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My present employer is closing down the business.


Closing Phrases
Im looking forward to hearing from you soon;
Please, find my CV enclosed;
I would really appreciate the opportunity of an interview,
when I could enlarge upon my qualifications.
1. Read the following terms and phrases and match each
term from the right column (numbered from 1-10) to their
definition from the left column (marked from a-j)
1. covering letter
2. curriculum vitae

a) written by hand
b) an available job or position

3. to type

c) to be much better or more important than


somebody/something else

4. handwritten

d) to give something to somebody so


that it may be formally considered or so
that a decision about it may be made
e) to promote something
f) personal data sheet
g) to be eager for something that one
expects to be enjoyable to happen
h) application letter
i) to put something in an envelope
j) to write using a typewriter or
calculator

5. to enclose
6. to stand out
7. to submit
8. vacancy
9. to look forward
10. to advertise

2. Rearrange the following paragraphs into the right order


so as to make up a covering letter
1. Since the age of fifteen I have been a keen student of
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antiques, learning more and more through the years. I am also an


enthusiastic collector of Meissen and Hutchenreuter porcelain.
2. I enclose a curriculum vitae and a recent photograph. I hope
to hear from you soon.
3. Trainee Auctioneer
4. Yours faithfully
5. Encs: Curriculum vitae and Photograph
6. I would be very pleased if I could find employment in such a
famous house as yours.
7. My present position is in an antiques market where I have
special responsibility for Victorian furniture and paintings. I
feel, however, that I would like to specialize in porcelain and
china.
8. Dear Sir/Madam
9. With reference to your advertisement in todays Times, I
would like to be considered for the above mentioned post.
3. Complete the following statements by choosing the right
alternative a, b or c:
1. Im looking forward to.news from you.
a) receiving
b) receive
c) get
2. Mr. Brown, the marketing manager has informed me that
there will be .in his department next month.
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a) a spare room
b) a opportunity
c) a vacancy
3. Tom .the Richmond Secondary School in 2005.
a) has been
b) attended
c) graduated
4. Please, find my CV
a) attached
b) enclosed
c) sent
5. Dont you think that this handwriting is.?
a) clear
b) illegible
c) eligible
6. I would like the ..to work in such a big company as
yours.
a) occasion
b) vacancy
c) opportunity
7. My present employer..his business.
a) lets
b) is closing down
c) leaves
8. Some think that if they write on purple paper their application
will
a) be funny
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b) be accepted
c) stand out
_______________________________________________
Grammar Review: SEQUENCE OF TENSES
___________________________________________________
In English, the tense of the verb in the subordinate clause
is determined by the tense of the verb in the main clause: the
dependent verb shows time relation to the main verb this
phenomenon is known as sequence of tenses
the relation between the main verb and the one in the
dependent clause may be one of simultaneity if both actions
take place at the same time.
___________________________________________________
4. Use Present Tense Simple to rewrite the following
sentences change either the verb in the main clause or the
one in the dependent clause, as the situation requests:
Model:
main clause
Present Tense Simple

subordinate clause
Present Tense Simple

The students know that many of them want to get a scholarship.


1. The human resources manager (to think) that many
candidates dont know how to write a CV.
2. The teacher considers that your handwriting (to be) illegible.
3. One has to use only black or dark blue ink when he/she
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(write) an application form.

4. Alice knows how to behave when she (to go) to a job


interview.
5. Some make a big mistake because they (to write) their
covering letters on purple paper.
5. Use Past Tense Simple to rewrite the following sentences
change either the verb in the main clause or the one in the
dependent clause, as the situation requests:
main clause
Past Tense Simple

subordinate clause
Past Tense Simple

Model:
The applicants knew that they had to submit the
materials in due time.
1. Tom knew that he (to have) to type his CV as fast as he
could.
2. The girl understood that many ads (to request) the applicants
to be at least 18.
3. Bill forgot to enclose an application letter when he (to post)
his CV.
4. You (not write) too many details about your education so
your CV was rejected.
5. The students (not apply) for a scholarship abroad when they
had the chance to do so.
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2. Lesson Two
WHAT IS MARKETING?

What does the term marketing mean? Many people think


of marketing only as selling and advertising. And no wonder, for
every day we are bombarded with television commercials
newspaper ads, direct mail campaigns, Internet pitches and sales
calls. Although they are important, they are only two of many
marketing functions and are often not the most important ones.
Today, marketing must be understood not in the old sense
of making a sale telling and selling but in the new sense of
satisfying customer needs. Selling occurs only after a product is
produced. By contrast, marketing starts long before a company
has a product. Marketing the homework that managers
undertake to assess needs, measure their extent and intensity and
determine whether a profitable opportunity exists. Marketing
continues throughout the products life, trying to find new
customers and keep current customers by improving product
appeal and performance, learning from product sales results and
managing repeat performance.
Everyone knows something about hot products. When
Sony designed PlayStation, when Nokia introduced fashionable
mobile phones, when The Body Shop introduced animal-crueltyfree cosmetics and toiletries, these manufacturers were swamped
with orders. Like Swatch and Smart Car, they were 'right'
products offering new benefits; not 'me-too products.
Peter Drucker, a leading management thinker, has put it
this way: 'The aim of marketing is to make selling superfluous.
The aim is to know and understand the customer so well that the
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product or service fits. . . and sells itself. If the marketer does a


good job of identifying customer needs, develops products that
provide superior value, distributes and promotes them
effectively, these goods will sell very easily. This does not mean
that selling and advertising are unimportant. Rather, it means
that they are part of a larger marketing mix a set of marketing
tools that work together to affect the marketplace.
We define marketing as a social and managerial process
by which individuals and groups obtain what they need and
want through creating and exchanging products and value
others. To explain this definition, we examine the following
important terms: needs, wants and demands; products and
services; value, satisfaction and quality; exchange, transactions
and relationships; and markets.
Each part of the marketing definition defines what
marketing is and how it is practised. In business-to-business
marketing, where professional organisations exchange products
of value to each other, marketing can be an exchange between
similar individuals and groups.
This contrasts with consumer markets where marketing is
not an exchange between similar individuals and groups. In
consumer markets, for one group marketing is a managerial
process pursued to fulfil their needs and wants, while the other
group is just going through life fulfiling their needs and wants.
With this difference identified, the definition of marketing
identifies marketings unique contribution to an organisation and
the demands it imposes.
The essence of marketing is a very simple idea that extends
to all walks of life. Success comes from understanding the needs
and wants of others and creating ideas, services or products that
fulfil those needs and wants. Most organisations, from Boo.com
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to WorldCom, fail because they fail to fulfil the wants and needs
of others.
(Philip Kotler, Veronica Wong, John Saunders, Gary Armstrong,
Principles of Marketing, fourth edition, Pearson Education Limited,
London, 2005)

Debate
1. In your opinion, how would you define the term
marketing?
2. What do you understand by a marketing mix?
3. In what way does marketing satisfy customer needs?
4. Explain in your own words what is a hot product and
give examples from your own experience.
Vocabulary Useful Words and Phrases
Advertising making known, calling public attention to a
product, service or company by means of paid announcements
so as to affect perception or arouse consumer desire to make a
purchase or take a particular action.
Direct mail campaign form of advertising by means of
which marketing communications are sent to customers using
the postal service
Marketplace the system of buying and selling goods
under competitive conditions
Customer needs customer expectations of a product or
service.
Product life cycle The life cycle of a new product, which
first can be produced only in the country where it was
developed, then as it becomes standardized and more familiar,
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can be produced in other countries and exported back to where it


started.
Superfluous more than very easy
B2B marketing is a short from Business to Business and
is used to designate those aspects of ecommerce that involve
the exchange of goods and services between companies over the
Internet.
B2C marketing is a form of electronic commerce in
which products and services are sold from a firm to a consumer
who this way doesnt have to buy from a traditional shop.
C2C marketing customer to customer is the oldest form
of e-business facilitating people to deal directly to each other.
1. Read the following terms and phrases and match
each term from the right column (numbered from 110) to
their definition from the left column (marked from aj)
1. Advertising

a) attractive to buyers, consumers, etc.

2. Marketing

b) the proportion that a company has of


the total volume of trading in one type
of goods and services

3. Direct mail
campaigns

c) a business that makes or processes


raw materials into a finished product

4. Market leader

d) making known, calling public


attention to a product, service or
company
by
means
of
paid
announcements so as to affect perception
or arouse consumer desire to make a
purchase or take a particular action.
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5. Marketable

e) the life cycle of a new product, which


first can be produced only in the
country where it was developed, then as
it becomes standardized and more
familiar, can be produced in other
countries and exported back to where it
started.

6. Customer needs

f) form of advertising by means of


which marketing communications are
sent to customers using the postal
service.

7. Marketplace

g) the company that sells the largest


quantity of a particular product and thus
emerges as a leader.

8. Product life
cycle

h) the system of buying and selling


goods under competitive conditions.

9. Market share

i) customer expectations of a product or


service.

10. Manufacturer

j) the theory and practice of presenting,


advertising and selling things.

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2. Complete the following statements by choosing the


right alternative a, b or c:
1. A products market value represents the.at which
that product would be sold if offered publicly.
a) value
b) capital
c) price
2. B2B is a short from Business to Business and is used
those aspects of e-commerce that involve the
exchange of goods and services between companies over the
Internet.
a) to define
b) to designate
c) to determine
3. The direct marketing is a..of marketing that
attempts to send the messages directly to consumers using
addressable media such as mail and email.
a) way
b) form
c) means
4. C2C consumer to consumer is the oldest form of
facilitating people to deal directly to each other.
a) commerce
b) trade
c) ebusiness

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5. The market research represents the study of what people


buy and why and it is usually .by a company before it
develops a new product.
a) driven
b) offered
c) conducted
6. of a new product, means that it can first be
produced only in the country where it was developed, then as it
becomes standardized and more familiar, it can be produced in
other countries and exported back to where it started.
a) The Marketing strategy
b) The Marketing
c) The life cycle
7. A market leader is the company that .the largest
quantity of a particular product and thus emerges as a leader.
a) advertises
b) promotes
c) sells
8. The aim of marketing is to make selling
a) nicer
b) superfluous
c) mare expensive
9. B2C, businesstoconsumer electronic commerce is a
form of electronic commerce in which products and are
sold from a firm to a consumer who this way doesnt have to
buy from a traditional shop.
a) goods
b) things
c) services
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10. Marketing is a social and managerial .by which


individuals and groups obtain what they need and want through
creating and exchanging products and value others.
a) fact
b) process
c) phenomenon
3. Read the following sentences and decide if they are
true or false. Mark them with T or F
1. B2C marketing designates a set of transactions between
two companies.
2. The price at which a product is offered for sale to the
public represents its market price.
3. Only the market leaders are quoted at the Stock
Exchange.
4. The direct mail campaigns are a form of electronic
advertising.
5. To market a product means to advertise and offer it for
sale.
6. To satisfy the customer needs is to have the best prices
on the market.
7. A hot product is a brand new product that appeals very
much to the public.
8. A marketplace is a square such as Victoria Square.
9. Marketing deals exclusively with advertising products.
10. A market leader is one who sponsors the most advertising
campaigns.
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_______________________________________________
Grammar Review: SEQUENCE OF TENSES
_______________________________________________
Sometimes the relation between the verb in the main clause
and the one in the dependent clause is one of anteriority (the
action shown by the verb in the subordinate clause happens
before prior to the one in the main clause)
_______________________________________________
4. Rewrite the following sentences change either the
verb in the main clause or the one in the dependent clause,
as the situation requests:
main clause
Present Tense Simple

subordinate clause
Present Perfect Tense Simple

Model:
The teacher knows that all students have understood the
lesson.
1. All marketers know that P. Kotler (to write) the best
books on marketing.
2. The manager appreciates the fact that his products (to
be promoted) using the best marketing strategies.
3. The customers (to admit) that their expectations have
been satisfied.
4. It (to be) very good that the telemarketing officers have
made a lot of calls.
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5. Everybody knows that Procter and Gamble products (to


be) advertised a lot lately.
5. Rewrite the following sentences change either the
verb in the main clause or the one in the dependent clause,
as the situation requests:
main clause
Past Tense Simple

subordinate clause
Past Perfect Tense Simple

Model:
Everybody knew that the hot products had been sold a week
before.
1. The board admitted that the advertising campaign (to be)
a successful one.
2. The students had been explained all the subjects before
they (to sit) the exam.
3. The new product had already offered a lot of benefits
when the company (to consider) the possibility of a merger.
4. The girl confessed that she (not know) anything about
marketing before attending this faculty.
5. The company had created the most suitable marketing
mix before they (to order) the launching of the new product.

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3. Lesson Three
USING THE DIRECT MARKETING STRATEGY
FRAMEWORK
ACQUIRE WITH PRODUCT. RETAIN WITH SERVICE
The most important strategic decision is to understand in
what conditions it is favourable for direct marketing to be used
by the marketing strategist.
A marketing strategist could consider direct marketing
within the strategy if one or more of the following apply: the
profitability of the company is heavily dependent on the loyalty
of existing customers, the target audience is relatively small and/
or tightly defined as well as if there is scope to gather individual
customers' details and hold them on a database.
It may also be important to state if products in the sector
are primarily sold on 'logic' rather than 'emotion' since the
control over the customer relationship is extremely important.
The marketing strategist should also consider if there is an
opportunity to distribute direct.
It is worth emphasizing that the above should not be taken
as 'rules'. There will be business situations where few or none of
the above apply but direct marketing is still used successfully.
For instance, few would have expected Heinz to place
over half of its marketing budget into direct marketing in 1995
(or to subsequently move it back to advertising).
Testing and control are internal management issues that
have a bearing on strategic decision making. If your company is
risk averse, then it would want to test any initiative carefully
before committing significant resources to it. If your company
wants to allocate resources carefully to resulting income, the
control offered by direct marketing will be attractive.
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Another important marketing decision is to allocate


resources between the existing customers and the new ones.
If you are just starting up a business, you obviously don't
have any existing customers. Clearly then, in the first year of
operation, the vast majority of your budget is allocated to new
customer acquisition. Or perhaps you have a large database of
existing customers but you have depressingly high levels of
defection. Here, your priority is customer retention: stemming
the flow.
Companies which sell credit, such as American Express,
know they have to strike a balance between encouraging loyal
behaviour from existing customers and allocating resources to
attracting prospects from competitors or new markets. To
achieve these aims they may use commercial partners to attract
new custom (affinity marketing).
They may create a reward scheme, like Amexs
Membership Miles, which rewards card spend by giving some
value back to loyal customers. Inevitably, some existing
customers are lost, through bad debt, defection to competitors,
or just no longer needing credit. In order to keep its customer
base at the same level, Amex will have to allocate resources to
replace these people.
It is all a question of balance.
Assuming that you are dealing with a mature business in a
mature market, your primary focus should be on keeping
existing customers rather than obtaining new customers
(Reichheld, 1996).
A vital marketing decision has to do with the strategy about
how to keep customers. The obvious question to ask here is:
which customers do we want to keep? First, it is important to
identify who are the customers that are really vital for the
company.
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Tesco, a large supermarket retailer in the UK and Europe,


has been testing a programme of preferential treatment to high
spending consumers, identified from data gathered via its loyalty
card. Invitations are sent offering the chance to participate in
tempting new product launches of expensive wines,
complimentary visits to golf ranges or the opportunity to see top
hair designers. To keep customers who may spend, say, 10 000
per year with the store, this reallocation of some value back by
the store represents good business sense.
What can the company offer customers in order to keep as
much of their spend with the firm as possible?
To achieve greater retention, direct marketers have
switched the emphasis from product to service. In particular, the
importance of delivering superior service has become apparent
in many markets.
The biggest strategic decisions is probably how to attract
new customers. In order to attract new markets is often
necessary to create attractive brands, distinctive products or
innovative distribution systems.
For any marketer, the core strength of direct marketing for
acquiring new customers is targeting. This strategy implies both
the companys strengths (does it have a database; does it have a
clear idea of precisely who its new customers are likely to be?)
as wellas the marketing environment (the need to go for new
types of customers, competitive activity, whether its markets are
niche or mass, and so on).
In the acquisition of new customers, the formal product
seems to be more important in attracting prospects than addon
service.
A customer seeking to buy from a supplier for the first
time will seek lots of things, but some benefits may be more
important on first purchase. These may include trust,
reassurance about the quality of their purchase, being able to
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buy conveniently, or having an extra incentive as a temptation to


purchase.
General marketers look to imbue feelings of trust and
reassurance through building brands which prospects will be
familiar with and like, even though they have yet to purchase
from that firm.
Direct marketers can either support brands built through
general marketing or take a lead role in building different types
of brand values themselves.
The use of direct distribution mail order or direct
delivery of service, say telephone banking is a powerful
weapon in the direct marketers' armoury when it comes to
attracting new customers.
The benefit they are offering is convenience. The growth
of electronic media heralds the possibility of new modes of
shopping online shopping, for instance by consumers who
value convenience over the tangible shopping experience itself.
Finally, a decision must be made whether or not to use
incentives to stimulate purchase. This decision may rest on
branding, pricing, competitive usage or targeting decisions, and it
is with the latter that incentives used through direct marketing may
well provide a huge advantage (Rapp and Collins, 1987). Instead of
most of your incentives to attract new users being taken advantage
of by existing customers, as happens in retail situations, incentives
can be directed to the intended audience prospects.
(Alan Tapp, Principles of Direct and Database Marketing,
third edition, Pearson Education Limited, Great Britain, 2005)

Debate
31

1. According to the text, what is the job of a marketing


strategist?
2. How can a company retain its customers by means of the
services it offers?
3. What are some means of attracting new customers?
4. If you were a marketing manager for which of these
strategies would you opt?
5. Which are some incentives used to stimulate purchase?
Vocabulary Useful Words and Phrases
Risk averse an investor who has a low level of tolerance
to possible loss.
Defection desertion, abandonment, opting for another
seller.
Customer retention the marketing goal of keeping your
customers from going to the competition.
To acquire to get, to gain possession of.
Retailer the seller of goods or commodities directly to the
consumers at a retail price.
Targeting the process of identifying the specific needs of
segments, selecting one or more of these segments as a target,
and developing marketing programmes and ad campaigns
directed towards each.
Incentives benefits, or reduced costs, that motivate a
decision maker in favor of a particular choice to purchase to obtain
in exchange for money or its equivalent; buy.
Branding a traditional advertising method used to create
an acquired response from a target audience based on
cumulative impressions and positive reinforcement.

32

[Type text]

1. Read the following statements and complete them


using the suitable word or phrase:
1. A marketing strategist should decide if products in the
sector are primarily sold on logic on emotion.
a) eitheror
b) neithernor
c) rather than
2. The marketing strategies that were successful in some
cases shouldnt be taken as .
a) codes
b) guidelines
c) rules
3. In 1995 Heinzover half of its marketing budget into
direct marketing and then moved it back to advertising.
a) put
b) placed
c) sold
4. A very important marketing decision is .resources
between the existing customers and the new ones.
a) to give
b) to share
c) to allocate

33

5. If you are just..a business you obviously dont have


any existing customers.
a) beginning
b) ending
c) starting up
6. It seems that some companies have high levels of
a) abandonment
b) defection
c) leaving
7. Companies that sell credit know that they must
strikebetween keeping the old customers and attracting new
ones.
a) a problem
b) a crisis
c) a balance
8. A well known marketing strategy is to create a
..scheme for the loyal customers.
a) profitable
b) beneficial
c) reward
9. is a strategy meaning that a company uses
commercial partners to attract new customers
a) The marketing mix
b) Targeting
c) The affinity marketing

34

[Type text]

10. One of the most important decisions a marketing


strategist should take is whether or not to useto stimulate
purchase
a) rewards
b) gifts
c) incentives

2. Read the following sentences and decide if they are


true or false. Mark them with T or F
1. The process of identifying the specific needs of
segments and selecting one or more of these segments as a target
is called branding.
2. A company that is risk averse is one that doesnt test
the market before taking its marketing decisions.
3. Some companies reward their customers by giving
some of their money back.
4. If a company wants to keep its highspending
customers, it must sell only expensive stuff.
5. To achieve greater customer retention direct marketers
have switched the emphasis from product to service.
6. A company that looses its customers is a company that
doesnt have a high degree of defection.
7. The use of direct distribution mail order or direct
delivery of services is one of the direct marketers most
powerful weapons.

35

3. Read the following words and put them into the right
order
1. important, another, marketing, is, resources, to allocate,
between, and, the existing, customers, the, decision, new ones.
2. a, marketing, with, has, to do, the, strategy, decision,
how, to keep, vital, customers, about.
3. the, of, is, direct, a, powerful, distribution, use, armoury,
weapon, the, direct, in, marketers'.
4. a, must, decision, made, whether, or, to, use, be,
incentives, to, not, purchase, stimulate.
_______________________________________________
Grammar Review: SEQUENCE OF TENSES
Sometimes the relation between the verb in the main clause
and the one in the dependent clause is one of posteriority (the
action shown by the verb in the main clause precedes the one in
the subordinate clause)
_______________________________________________
4. Rewrite the following sentences change either the
verb in the main clause or the one in the dependent clause,
as the situation requests:
main clause
subordinate clause
Present Tense Simple
Future Tense Simple
Model:
They hope that their competitors will not launch a similar
product.
36

[Type text]

1. When you start up a business you (not have) any


existing customers.
2. A company (to manage) to attract new customers when
they allocate enough money for this.
3. The manager hopes that his competitors (not have) better
advertising means.
4. The marketing strategist knows that good service (to
help) the company to preserve the existing customers.
5. Direct marketers assume that people (to appreciate) the
direct delivery of services.
5. Rewrite the following sentences change either the
verb in the main clause or the one in the dependent clause,
as the situation requests:
main clause
Past Tense Simple

subordinate clause
Future in the Past

Model:
They were sure that other companies would not have such
an interesting promoting strategy.
1. Amex Membership Miles created a reward scheme that
(to give) some value back to its loyal customers.
2. Direct marketers understood that they (to achieve)
greater customer retention by switching the emphasis from
product to service.
3. General marketers wanted to build brands the prospects
(to feel) familiar with.
4. Companies (to know) that the incentives they (to offer)
would attract more and more customers.
5. The customer that (to buy) from a supplier for the first
time (to look) for a lot of benefits.
37

4. Lesson Four
COMPANY STRUCTURE TYPES OF MANAGERS

You already know that there are different types of


managers. In your college, for instance, there are presidents,
vice presidents, provosts, deans, and department chairs. There
are also administrators, such as human resource managers and
the head of public safety.
In practice, we can differentiate managers in three ways:
based on their organization level (top, middle, firstline), position
(manager, director, or vice president, for instance) and functional
title (such as sales manager or vice president for finance).
The managers at the top, of course, are the firms top
management. These are the managers we call executives.
Typical positions here are: president, senior vice president, and
executive vice president (in a university, you might also add
provost). Functional titles here include chief executive officer
(CEO), vice president for sales, general manager, and chief
financial officer (CFO).
Beneath the top management level (and reporting to it)
may be one or more levels of middle managers. The positions
here usually include the terms manager or director in the titles.
(Particularly in larger companies like IBM, managers report to
directors, who in turn report to top managers like vice
presidents.) Examples of functional titles here include
production manager, sales director, HR manager, and
finance manager.
Firstline managers are at the lowest rank of the
management ladder. Positions here might include supervisor or
38

[Type text]

assistant manager. Functional titles might include production


supervisor and assistant marketing manager.
All managers have a lot in common. They all plan,
organize, lead and control.
All managers at all levels and with every functional title
also spend an enormous amount of their time with people
talking, listening, influencing, motivating, and attending
meetings. In fact, even chief executives (whom you might
expect to be somewhat insolated from other people, up there in
their executive suites) reportedly spend about threefourths of
their time dealing directly with other people.
However, there are two big differences among the
management levels. First, both top and middle managers have
other managers for subordinates.
Supervisors have workers-nonmanagers as subordinates.
Managers at different levels also use their time somewhat
differently.
Top managers tend to spend more time planning and
setting goals (like double sales in the next two years").
Middle managers then translate these goals into specific
projects (like hire two new salespeople and introduce three new
products") for their subordinates to execute.
Firstline supervisors then concentrate on directing and
controlling the employees who actually do the work on these
projects.
MANAGING AND THE SPEED OF THOUGHT THE E-CEO
What is it like being an e-CEO, the chief executive of an
e-commerce company? To hear the executives themselves tell it,
speed is the word that sums up their experience best. For
example, Roger Siboni, e-CEO of E.piphany, a company that
creates the software that helps e-corporations get the most from
39

their customer data, says, Youre driving too fast you feel the
exhilaration you must turn left and right at death-defying speed
without blinking never blink if you go up and down with the
news, you'll never make it. e-CEOs must also be brutally
honest with themselves and others, because if they let a problem
fester a day or two, they'll see someone in their rearview mirror
coming after them, says Siboni.
With their markets changing so fast, e-CEOs must also
constantly focus their companies' and their employees' attention
on the companys mission. These companies are deluged with
competitive information and new ideas, so its relatively easy for
the employees to become distracted. Its the e-CEOs job to keep
everyone focused.
One of the differences between traditional and e-CEOs is
that, for example, e-CEOs tend to be more comfortable with
ambiguity and speed, and concerned with monitoring market
trends and competitors' moves to ensure that their companies
aren't blindsided by unanticipated events. Operating with a great
deal of uncertainty, e-CEOs need a new set of qualities to thrive.
On 24 May 1999 the Fortune magazine published a set of
differentiating qualities between the traditional managers and
the e-CEO-s. According to this study an e-CEO has to have
certain qualities such as: to be evangelizing, obsessed, brutally
frank, infotech literate (at least), intensely focused, faster
moving, to like ambiguity and to be a paragon of good
judgment. The study also highlights that usually the e-CEO is a
young man about 38, suffers from bandwidthseparation
anxiety and he is really rich.
As compared to this type, the study states that the
traditional manager has to be encouraging, fast moving and a
paragon of good judgment. Still, he is usually not a very
young man he is about 57, is gearly focused, hates
ambiguity, is an infotech semiliterate (at best), suffers from
40

[Type text]

technology confrontation anxiety and he is a rich man. (Source


Fortune, 24 May 1999, p. 107. @ 1999 Time Inc. Reprinted by
permission).
(Gary Dessler, Management Principles and Practices for
Tomorrows Leaders, Florida International University, Upper
Saddle River, New Jersey, third edition, 2004)
Debate
1. What is the difference between top, middle and firstline
managers?
2. Generally speaking, which are the main responsabilities
of a manager?
3. In your opinion, what is more difficult, to be a manager
or an employer?
4. If you were to create the ideal manager profile, which
qualities would you choose?
Vocabulary Useful Terms and Phrases
Dean head of a university
Provost senior administrative officer in certain
universities
Department chairs department positions
Human resource managers person in charge with hiring
people and solving the employees legal problems
Executive person or group of persons who has the power
to put important plans, decisions, etc into effect
CEO chief executive officer
e-CEO chief executive officer
CFO chief financial officer
HR manager human resources manager
41

1. Read the following terms and phrases and match


each term from the right column (numbered from 111) to
their definition from the left column (marked from ak)
1. provost
2. dean

a) CFO
b) a person in charge with checking the
others
3.chief financial c) person who is responsible for the
officer
manufacturing of a large quantity of
products
4. HR manager
d) senior administrative officer in certain
universities
5. chief
e) manager responsible with the staff
executive officer recruitment
6. supervisor
f) a person or company that employs
people
7. employee
g) the head of an institution
8. president
h) a person who controls the selling of a
companys products
9. sales manager i) the head of a faculty
10.production
j) a person who works for somebody or for
manager
a company in return for wages
11. employer
k) CEO
2. Read the following sentences and decide if they are
true or false. Mark them with T or F
1. A director is one that writes screenplays for movies.
2. A CEO manager deals with the accounting department of
a company.
3. All managers spend most of their time talking to people.
42

[Type text]

4. The firstline managers are the top managers of a big


company
5. The head of a university is called dean.
6. An employer is one who works for a monthly subsidiary.
7. In a big company, such as IBM, for instance, the general
manager is the one who hires people.
8. The marketing department of a company deals with
advertising, market research as well as selling.
9. All employees are checked by their supervisors.
10. The manager is the owner of a company.
_______________________________________________
Grammar Review SEQUENCE OF TENSES
Expressing Future Time
_______________________________________________
Remember ! Going to Future is used for planned
intention Future Tense Simple is used for unplanned intention
Examples: Im going to read the book you gave me on this
weekend.
Could you help me with this luggage?
Why not? Ill come and give you a hand!
3. Read the following statements and decide if they are
grammatically correct or not. Mark them with Yes and No
1. Will you join us at this training course?
2. They have made arrangements to meet the general manager.
They will have lunch together.
3. Tom has decided to get only high marks. He is going to learn
a lot for his exams.
4. My car wont start. Are you going to give me a lift?
43

5. Its late in the evening the e-CEO is going to write a final


report.
6. The top manager says: I must have left my keys on the
desk!. His secretary replies: Dont worry, Sir! I will go and
fetch them for you.
7. Tom has to speak English fluently if he wants to apply for
the position of HR manager. He is going to improve his
English as fast as he can.
4. Fill in the following statements by choosing the right
alternative a, b or c:
1.
a)
b)
c)

After youthis faculty will you attend an MA course?


will graduate
will finish
graduate

2. By the time you finish the project I be back at the


office.
a) would be
b) will be
c) am
3. They wont make any forecasts before theyall the
information they need.
a)
receive
b)
will receive
c)
wont receive
4. I will send you a message as soon as I..the novel.
a) will finish reading
b) shall finish reading
44

[Type text]

c) finish reading
5. Will you keep on learning until youthe lesson?
a) will have understood
b) understand
c) are going to understand
6. Please, stop the car before you.my house
a) would reach
b) will reach
c) reach
7. When I .. sure about the result, I will let everybody know it.
a) am
b) shall be
c) am going to be

45

5. Lesson Five
DO YOU HAVE THE TRAITS TO BE A MANAGER?

If youre thinking of becoming a manager, theres a wealth


of research to help you to decide whether thats the occupation
for you.
Career counseling expert John Holland says that
personality (including values, motives, and needs) is an
important determinant of career choice. Specifically, he says that
six basic personal orientations determine the sorts of careers
to which people are drawn. Research with his Vocational
Preference Test (VPT) suggests that almost all successful
managers fit into at least one of two personality types or
orientations:
Social orientation. Social people are attracted to careers that
involve working with others in a helpful or facilitative way
(managers as well as others, like clinical managerial competence,
psychologists and social workers, would exhibit this orientation).
Generally speaking, socially oriented people find it easy to talk
with all kinds of people; are good at helping people who are upset
or troubled; are skilled at explaining things to others; and enjoy
doing social things like helping others with their personal
problems, teaching, and meeting new people. Its hard to be a
manager if you're not comfortable dealing with people.
Enterprising orientation. Enterprising people tend to
like working with people in a supervisory or persuasive way in
order to achieve some goal. They especially enjoy verbal
activities aimed at influencing others (lawyers and public
46

[Type text]

relations executives would also exhibit this orientation).


Enterprising people often characterize themselves as being good
public speakers, as having reputations for being able to deal with
difficult people, as successfully organizing the work of others,
and as being ambitious and assertive. They enjoy influencing
others, selling things, serving as officers of groups, and
supervising the work of others.
Comptencies Expert Edgar Schein says career planning is a
continuing process of discovery. He says each person slowly
develops a clearer occupational selfconcept, in terms of what
his or her talents, abilities, motives, and values are. Based on his
study of MIT graduates, Schein concluded that managers have a
strong managerial competence career anchor. These people show
a strong motivation to become managers, and their career
experience enables them to believe that they have the skills and
values necessary to rise to such general management positions.
A management position with high responsibility is their ultimate
goal.
THE MANAGERIAL SKILLS
Successful managers don't just have the right traits and
competencies; they also have the right skills. In management (as
in most other human endeavors), personality gets you only so
far. At some point, the person must prove that he or she can
actually get the job done. Skills like writing, making forecasts,
or communicating effectively, reflect how the person acts and
what he or she can actually do. Managers need three sets of
skills: technical, interpersonal, and conceptual.
The present text shows some of the skills managers need in
order to succeed, such as how to write business plans, how to
47

discipline subordinates, and how to make better decisions.


Youll see below what these skills are.
TECHNICAL SKILLS
Managers have to be technically competent. First, they
need to know how to plan, organize, lead, and control. For
example, they should know both how to develop a plan and how
to write a job description.
Managers also should be technically competent in their
area of expertise. For example, accounting managers need
accounting skills, and sales managers should know what works
(and does not work) when it comes to selling.
INTERPERSONAL SKILLS
Researchers at the Center for Creative Leadership in
Greensboro, North Carolina, studied why managers fail, and
came to some interesting conclusions. Some managers simply
didn't do their jobs, and thought more about being promoted
than about the jobs they had!
However, the other failures were more interpersonal.
Managers failed because they had abusive or insensitive styles,
disagreed with upper management about how the business
should be run, left a trail of bruised feelings, failed to adapt to
the management culture, or didn't resolve conflicts among
subordinates.
Managers, therefore, need good interpersonal skills.
Interpersonal skills include knowledge about human behavior
and group processes, ability to understand the feelings, attitudes,
and motives of others, and ability to communicate clearly and
persuasively. They include tact and diplomacy, empathy,
persuasiveness, and oral communications ability. Managers with
these skills have more cooperative relationships and can better
accomplish a wide range of daily managerial chores, such as
48

[Type text]

listening attentively and sympathetically when a subordinate has


a problem.
CONCEPTUAL SKILLS
Studies also show that effective leaders tend to have more
cognitive ability, and that their intelligence (and subordinates'
perception of that intelligence) tend to be highly rated.
Conceptual (or cognitive") skills include analytical ability,
logical thinking, concept formation, and inductive reasoning.
Conceptual skills manifest themselves in things like good
judgment, creativity, and the ability to see the big picture
when confronted with information.
Of course, intelligence is one thing, good judgment is
another. As Lawrence Bossidy puts it, If you have to choose
between someone with a staggering IQ and elite education who
is gliding along, and someone with a lower IQ but who is
absolutely determined to succeed, you'll always do better with
the second person.
(Garry Dessler, Management Principles and Practices for
Tomorrows Leaders, third edition, Florida International University,
Pearson Education, New Jersey, 2004)

Debate
1. In your opinion, are there such things as native
managerial traits? Explain.
2. Which are some managerial skills that can be learned
and improved? Support your opinions with arguments.
3. Describe in your own words the interpersonal skills of a
good manager. What can you tell about the technical or
conceptual ones?
49

Vocabulary Useful Terms and Phrases


Social orientation ones personal characteristic of being
attracted to people; to communicate and socialize with them, etc.
Enterprising orientation the ability, imagination and
desire to create and carry out new projects and perform difficult
activities
Occupational self concept career orientation
Managerial traits managerial characteristics
Daily managerial chores daily managerial duties or
responsibilities
To make forecasts to predict future events by making use
of some given information
To leave a trail of bruised feelings to make a bad
impression, to offend or abuse people
Inductive reasoning logical reasoning
To glide along to move along smoothly and
continuously for instance like a snake on the ground
1. Read the following terms and phrases and match
each term from the right column (numbered from 110) to
their definition from the left column (marked from aj)
1. Assertive

a) to be able to get the meaning of the


whole situation
2. Diplomacy
b) to predict future events by making
use of some given information
3. Empathy
c) amazing native intelligence
4. Persuasiveness d) to be suitable for a particular role or
task
5. To accomplish e) the ability to imagine and share
another persons feelings
50

[Type text]

6. To make forecasts
7. To see the
big picture
8. Staggering IQ
9. To fit into
10. To deal with

f) showing a strong and confident


personality
g) to succeed in doing
smth, to complete smth
h) the capacity to be convincing
i) the art of tactfully dealing
with people
j) to attend to a problem,
to manage

2. Read the following statements and decide whether


they are true or false. Mark them with T or F
1. A manager who is technically competent is one who
knows how to plan, lead, organize and control his own work as
well as that of the other employees.
2. To have an enterprising orientation means to be a good
entrepreneur.
3. Someone who makes forecasts is one who predicts the
weather.
4. When you flatter someone means that you bruise that
persons feelings.
5. A managers daily chores include resolving conflicts
among subordinates.
6. An assertive person is one who always speaks very
loud.
7. The charismatic managers are also the most persuasive.
8. If you have good interpersonal skills, it means that you
have a lot of friends.

51

9. The persons who have a staggering IQ are always very


determined to succeed.
10. You cant become a successful manager if you dont
have some inborn managerial traits.
_______________________________________________
Grammar Review THE SUBJUNCTIVE MOOD
_______________________________________________
The Synthetic Subjunctive has three forms:
The old form: Suffice is to say..
Grammar be hanged.
The present subjunctive: Its time we were off.
The past subjunctive: If I had visited Sighioara I would
have taken pictures all the time.

Remember: The old form of the synthetic subjunctive is


identical with the form of the short infinitive the infinitive
without to
Use of the old form of the synthetic subjunctive in order to
express some formulas:
Example: God bless you!
So be it!
_______________________________________________

52

[Type text]

3. Read the following sentences and choose the right


alternative a, b or c in order to create valid statements:
1.......what may, if you are decided to become a manager,
you'll do it in the end.
a) came
b) come
c) will come
2........what you want, I strongly believe that our HR
manager knows how to deal with people.
a) do
b) say
c) make
3. ....... to say that a good manager should have more than
technical skills.
a) its worth
b) its enough
c) suffice it
4. Heaven.......for you to leave the country!
a) forbid
b) forbade
c) shall forbid
Remember: You can also use the old form of the synthetic
subjunctive in imperative sentences or for making requests.
_______________________________________________

53

4. Read the following sentences and choose the right


alternative a, b or c in order to create valid statements:
1. Somebody.........the board on whats happening here.
a) informs
b) will inform
c) inform
2. You........my advice: leave those files for tommorrow!
a) may take
b) take
c) have taken
3. Hurry up! You......the reports ASAP.
a) could send
b) sent
c) send
4. The boss required that everybody.......the meeting on
Monday.
a) attend
b) will attend
c) would attend
5. The marketing manager has ordered that the new
strategies.....by tommorrow at noon.
a) will be ready
b) are ready
c) be ready
Remember: Use of the old form of the synthetic
subjunctive in formal language.
_______________________________________________

54

[Type text]

5. Read the following sentences and choose the right


alternative a, b or c in order to create valid statements:
1. The chairman suggested that all employees ........ him
what they don't understand
a) can ask
b) ask
c) have to ask
2. The bank owner ordered that the wages ........... his stuff.
a) will motivate
b) must motivate
c) motivate
3. The Board recommended that the projects .......... handed
in two weeks' time.
a) are
b) be
c) will be
4. The manager suggested that prices .......... kept low so as
to attract new customers.
a) be
b) would be
c) could be
5. The executives ............ that the companys policy be
well known by the public.
a) have desired
b) would desire
c) desire

55

6. Lesson Six
ADVERTISING WHAT IS CREATIVE?
Trying to answer the question, David Ogilvy comes up
with a strong riposte:
I have to invent a Big Idea for an advertising campaign
before Tuesday. Creativity strikes me as a highfalutin word for
the work I have to do between now and Tuesday. The Benton
and Bowles agency holds that if it doesn't sell, it isn't creative.
Amen.
Direct marketers tend to pay a lot of attention to the art of
creativity. There are a lot of books dedicated to this subject. One
reason for this fascination is the sexiness of the subject even
hard-bitten business managers can be seduced by the glamour of
thinking about their product in the bright lights of a Californian
blockbuster advert. Advertising has been described (Martin,
1989) as the poetry or the artistry of marketing, even if, as
Ogilvy (1983) strongly argued, the only job of advertising is to
sell.
Different Types of Creative People
According to American commentators on advertising
(Bovee et al., 1995; Martin, 1989; Rapp and Collins, 1987),
people can be divided into two camps.
If you are interested in a career as a creative in an
advertising agency, the chances are you are a rightbrain
thinker.
If, however, you see yourself in business, perhaps managing a marketing department, you will be a leftbrain dominated
person. Leftbrain people are logical, persuaded by words and
argument, and take a stepbystep approach to solving
problems.
56

[Type text]

Rightbrain people are different. If you are rightbrain


dominated, you use intuition rather than logic, use emotion not
reason, and are more interested in romance than rationality.
This split of thinking lies at the heart of the creative debate,
and to understand direct marketing creativity, we need to understand how it fits into the wider context of this fascinating
creative debate that has been rumbling on now for about 100
years.
This argument can be summed up as left brain logical
advertising versus right brain emotional advertising (Rapp and
Collins, 1987).
In 1904, John E. Kennedy said that the best advertising
contained a logical approach, leading prospects through reasons
why they should buy the product.
The opposing camp was epitomized by Cyrus Curtis, who,
in 1911, talked about the atmosphere in adverts as the key
ingredient. He was backed up by Dunn, in 1918, who said, The
psychoanalysts have found that nearly all important decisions
are made in the subconscious.
This argument has essentially carried on the same way to
the present day. Major figures such as Rosser Reeves, the
inventor of the USP concept, and advertising giant David Ogilvy
have passionately, sometimes provocatively, advocated the
logical approach, appealing to reason:
1 have never admired the belles lettres school of
advertising. I have always thought them absurd. They did not
give the reader a single fact.
(David Ogilvy, Confessions of an Advertising Man, 1964)

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Whereas other, equally eminent practitioners have


advocated the opposite approach: It is not what is said but how
it is said that influences us the most.
(Pierre Martineau, Chicago Tribune, 1957)

We are in the age of the eye. We have less time to read ...
only the lightning strike of a picture can hit home.
(Margot Sherman, President, McCann Erickson, 1959)

In summary, the leftbrain enthusiasts would argue that


advertising focuses on selling by leading the prospect through a
series of reasoned, logical arguments. Words tend to be more
powerful than visual images. Functional brands, such as Intel,
are built up in these ways. The rightbrain advocates will claim
that people make purchase decisions on emotional grounds.
Although they will justify their purchases on logical grounds in
research, in fact people are ruled by their emotional
subconscious, and it is this which advertising needs to play to. In
this case, visual imagery is more important than words.
Symbolic brands, for example CocaCola, are based on this
premise.
Direct marketing creative practice has traditionally been
dominated by the left-brain approach. Rapp and Collins (1987)
showed why direct marketing has historically been left-brain
dominated: mailorder products had to have an element of
uniqueness about them to overcome the inertia of people at
home; this led to a USPdriven approach. Also, the items were
often intangibles, or services, which were traditionally sold in a
logical way. Direct marketing products and services are usually
relatively high-priced items, and it is felt that items of such
value cannot be sold through emotion. Reasoned arguments are
required if you want a consumer to buy a pension off you.
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In contrast, brandbuilding creative has predominantly


been rightbrain led. If we consider products such as Marlboro
cigarettes, CocaCola, or Levi Jeans, their advertising is pure
emotional symbolism. One reason for this is that when you
advertise a product that is similar to others you need brand
building through imagery and association with attractive
symbols. Also, brandbuilding is similarly important for low
involvement, low price-ticket products, such as FMCGs where
consumers make impulsive, subconscious decisions brand
building has traditionally been used to sell tangible items such
as food and clothes.
Direct marketings stance on entertainment has been even
more clear: there is no room for it in direct communications. The
argument has been that even if it were required, there is simply
no room for deflecting the prospect from the crux of the advert
to get a response.
(after Allan Tapp Principles of Direct and Database Marketing,
third edition, Pearson Education Limited, England, 2005)

Debate
1. In your opinion, what is the job of an advertising
agency?
2. How would you define a leftbrain dominated person?
What is the leftbrain advertising?
3. What is a rightbrain person? Which are the
characteristics of the rightbrain advertising?
4. Personally, for which of the two approaches would you
opt?
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Vocabulary Useful Words and Phrases


leftbrain dominated person a logical person who focuses
on reason and usually takes a stepbystep approach to solving
problems.
rightbrain dominated person one who uses intuition
rather than logic, focuses on feelings rather than on reason
to be epitomized to be symbolized, best represented by, etc.
the debate has been rumbling on it has been being argued
for and against
belles lettres school creative writing valued for esthetic
content
prospect a potential buyer
to overcome to prevail over, to be victorious
1. Read the following sentences and decide if they are
true or false. Mark them with T or F
1. To overcome a problem means to fail solving it.
2. Leftbrain dominated people tend to focus more on
their feelings.
3. To be creative implies to be a very organized person.
4. Famous brands such as Marlboro, CocaCola or Levi
Jeans base their advertising mainly on pure emotional
symbolism.
5. The rightbrain dominated people are smarter than
the leftbrain dominated ones.

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6. If a company advertises products that are similar to


others, it must make ample use of imagery in association with
attractive symbols.
7. Creative people have a lot of fantasy, inspiration and
intuition but they dont have logic at all.
2. Read the following words and put them into the right
order:
1. a, who, reason, person, logical, focuses on, person, and,
usually, is,takes, a, stepbystep, a, leftbrain, approach, to,
problems, solving.
2. direct, tend, the art, a lot, attention, to, of, of, creativity,
marketers, to, pay.
3. the, psychoanalysts, that, found, all, important, have,
nearly, decisions, are, made, the, in, subconscious.
4. it, not, is, is, said, but, how, it, is, what, that, said,
influences, the, us, most.
5. reasoned, are, off, required, if, you, arguments, a,
consumer, a, want, to, buy, pension, you.
6. if, consider, pure, such, we, as, Marlboro, emotional,
Jeans, products, cigarettes, CocaCola, or Levi, their, advertising, is, symbolism.

61

3. Read the following statements and complete them


using the suitable word or phrase:
1. ..have found that nearly all important decisions are
made in the subconscious.
a) The scientists
b) The engineers
c) The psychoanalysts
2. The direct marketings .on entertainment is clear:
there is no room for it in direct communications.
a) opinion
b) question
c) stance
3. The rightbrain dominated advertisers use..rather
than logic.
a) reason
b) intelligence
c) intuition
4. A famous advertiser called Cyrus Curtis considers that
the key ingredient of an ad is its..
a) brand
b) atmosphere
c) story
5. Sometimes consumers make impulsive,..decisions.
a) unconscious
b) irresponsible
c) subconscious

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6. If an advertising agency doesnt sell then it isnt .


a) aggressive
b) profitable
c) creative
7. A consumer must take a..decision if he wants to buy
a pension.
a) smart
b) logical
c) inspired

Grammar Review THE SYNTHETIC SUBJUNCTIVE


_______________________________________________
Remember: The form of the present subjunctive is
identical with the form of the past tense indicative
Use present subjunctive in order to express actions that are
contrary to present facts.
_______________________________________________
Exception!: the present subjunctive form of the verb to
be is were for all persons, (especially in the written style)

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4. Read the following statements and decide whether


they are grammatically correct or not. Mark them with T or
F
1. If he were an imaginative person he would be a good
advertiser.
2. If the marketing manager wasn't so strict, people would
dare to express their new ideas.
3. If she was our employee she would be highly
appreciated by everybody.
4. If our advertising strategy weren't good, people wouldn't
buy our products any more.
5. If I wasn't fit for this job, I would resign immediatelly.
6. Hes such an intelligent person: I wish he were part of
our team!
_______________________________________________
Remember!: Use the present subjunctive after the
following words and phrases:
_______________________________________________
Its high time/ its about time
To wish
If only
If
Unless
To suppose
Even if/even though
As if/ as though
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_________
5. Read the following sentences and choose the right
alternative a, b or c in order to create valid statements:
1. Its high time our company .a new product.
a) would launch
b) launched
c) had launched
2. I wish Imore imagination.
a) to have
b) have had
c) had
3. He spoke as if he something about our advertising
campaign.
a) knew
b) had known
c) could know
4. They adopted a new shape for the Pepsi bottle in case
people ..it more.
a) will like
b) liked
c) like
5. The advertisers idea enchanted everybody as if
they.under a spell.
a) have been
b) are
c) were
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6. The new manager behaved as if he ..everyone


around him.
a) could know
b) have known
c) knew
7. Its about time you ..us your suggestions.
a) present
b) will present
c) presented
8. I wish he.the importance of being up-to-date with
everything.
a) will understand
b) understand
c) understood
9. If we only .what our competitors plan we could
avoid launching a similar product.
a) were knowing
b) had known
c) knew
10. The famous advertiser looked awkward as if
he.everyone staring at him .
a) would hate
b) hated
c) had hated
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7. Lesson Seven
ADVERTISING THE IMPORTANCE
OF BEING CREATIVE
Bird (1989) describes the creative contribution as the
moment of truth for the direct response communications. This
refers to the moment when prospects or customers engage with
the advert. In his view, therefore, the importance of the creative
element lies in its visibility and tangibility for consumers.
Using Creative as a Form of Research
Bill Bernbach, one of the giants of advertising history (the
B in DDB, the advertising agency), was asked what he thought
would change in the future (Ogilvy, 1983). Referring to
marketers obsession with changing trends, he said:
Its fashionable to talk about changing man. A
communicator must be concerned about unchanging man
what compulsions drive him, what instincts dominate his every
action, even though his language too often camouflages what
really motivates him. For if you know these things about a man,
you can touch him at the core of his being.
Bill Bernbach stressed that understanding customers was
critical to good advertising. In direct marketing this is just as
true.
The purpose of advertising is to persuade. Still Should
Advertising be entertainment as well as selling?
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The following quotes summarise some of the arguments


for and against the need for advertising to be entertaining:
The people who know what they are doing are the direct
marketing people. They know exactly what they've sold. And you
don't. You don't have the faintest idea whether the advertising
sells anything or not. And you don't really care. You just want to
win an award at Cannes, or one of those rackets.
Our job is to kill the cleverness that makes us shine
instead of the product.
Bill Bernbach, Managing Director of DDB

We sell: or else.
O&M advertising agency company motto
Ad writers forget they are salesmen and try to be
performers. Instead of sales, they seek applause.
Claude Hopkins, 1927

Advertising began as an art, and too many people want it


to remain that way: a never-never land where they can say this
is right because we feel its right".
Rosser Reeves, Reality in Advertising, 1961

Martin (1989) advocated that advertisers should match


entertainment with selling:
Each message must indelibly lodge the brand in the
viewers memory and seed the mind with emotional reasons to
buy, as well as providing entertainment.
David Martin, Romancing the Brand, 1989
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Broadbent (1997) said:


There is no genuine clash between selling and being
creative'. It is only that the criteria differ. Even when brand
sales get the benefit of effective advertising, this can still be
done entertainingly. We cannot intrude on the public without
repaying them. We must not put at risk the media audiences.
Effective creativity I can understand and admire. Unconnected
creativity frightens me.
Simon Broadbent, Accountability the flaming sword,
Admap, June, 1997

So, where does direct marketing fit into the arguments for
left versus rightbrain advertising, and the need for
entertainment?
(after Allan Tapp Principles of Direct and Database Marketing,
third edition, Pearson Education Limited, England, 2005)

Debate
1. What is the purpose of advertising?
2. Which are some of the most famous philosophies on this
controversial issue?
3. Which is your favourite advertising strategy? Why?

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Vocabulary Useful Words and Phrases


To be engaged with the advert to get in touch with the
advert
Changing trends tendencies, tastes
To persuade to convince
To be entartaining to be fun
Performer actor
A never-never land an unreal territory
To match (here), to combine
Indelibly that cannot be erased
To lodge (here) to mark
Clash (here) great discrepancy
To intrude To put or force in inappropriately, especially
without invitation or permission
1. Read the following sentences and decide if they are
true or false. Mark them with T or F
1. It is impossible for advertising to be a form of research.
2. Advertisers job is to sell.
3. The purpose of advertising is to persuade.
4. There is a genuine clash between selling and being
creative.
5. Advertising doesnt have to be entertaining.

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2. Read the following statements and complete them


using a suitable word or phrase:
1. Some experts consider that the moment of truth is when
the prospects or customers .with the advert.
a) perceive
b) see
c) engage
2. Language much too often what people feel.
a) complicates
b) explain
c) camouflages
3. Do you think that advertising should be?
a) funny
b) playful
c) entertaining
4. The purpose of advertising is to
a) display
b) persuade
c) advertise
5. There is no genuine between selling and being
creative.
a) misunderstanding
b) difference
c) clash
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6. We cannot ..on the public without repaying them.


a) intrude
b) disturb
c) upset
7. If you really understand the customer needs you can
touch him atof his being.
a) the heart
b) the sole
c) the core
8. Advertisers should..entertainment with selling.
a) add
b) match
c) mix
9. Ad writers forget they are salesmen; instead of sales they
seek
a) money
b) power
c) applause
10. The advertisers job is to make the product.
a) smarter
b) better
c) look better
3. Read the following words and put them into the right
order:
1. the, people, know, marketing, they, who, what, are, are,
the, doing, direct, people.
2. ad, forget, they, salesmen, writers, and, try, are, be,
performers, to.
3. frightens, understand, can, Effective creativity I,
admire; unconnected, and, creativity, me.
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4. a, must, dominate, compulsions, be, peoples, concerned,


the, unchanging, and, instincts, that, the, communicator, about,
behaviour.
5. each, must, the, lodge, brand, in, message, the, memory,
viewers.
Grammar Review THE SYNTHETIC SUBJUNCTIVE
_______________________________________________
____
Remember: The form of the past subjunctive is identical
with the form of the past perfect tense indicative
Use past subjunctive in order to express past unreality,
that is, actions that are contrary to past facts.
_______________________________________________
Remember!: Use the past subjunctive after the following
words and phrases:
_______________________________________________
Its high time/ its about time
To wish
If only
If
Unless
To suppose
Even if/even though
As if/ as though
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4. Read the following sentences and choose the right


alternative a, b or c in order to create grammatically valid
statements:
1. The marketer wished he more last month.
a) would have sold
b) sold
c) had sold
2. If only we ..to work in advertising ten years ago!
a) start
b) had started
a) have started
3. The advertisers wished their product .no 1 on the
market.
a) will be
b) was
c) had been
4. If only they to understand the customers
expectations, they would have been much more successful with
their recently launched product.
a) had managed
b) manage
c) will manage
5. If only their commercial .. in the viewers memory
their brand could have been famous!
a) had been lodged
b) had lodged
c) could have been lodged
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5. Read the following words and put them into the right
order so as to form correct statements:
1. even if /we /couldnt have won/ had had/ from/ more
time/ we/ a more/ award /important/ for advertising/ than/ that/
Cannes!
2. if /our/ that/ much/ commercials/ entertaining/ products/
hadnt been/ so/ people/ wouldnt have bought/ our/.
3. if/ to be/ competitors/ more/ money/ the Board/ had
invested/ we/ would have managed/ better/ in advertising/ than
our/.
4. we/ better/ would have managed/ the new/ to promote/
the market/ product/ if/ we/ had studied./
5. if/ everybody/ an art/ advertising/ ads/ hadnt been/
could have created/ brilliant./

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8. Lesson Eight
INTERNET SITES SELL, SERVICE AND INFORM
Like any well-designed promotional campaign, a welldesigned Web site should have the prospective customer in
mind. This means that the site should attract the prospect to it
and do a persuasive job of interacting with the prospect once he
or she arrives there.
Creating a desire to visit a particular site can be aided by
marketing the site through other media-print advertising, TV
commercials, newsletters, and the like and by giving the site a
brand name and image that creates its own promotion (for
example, the Won.com site that offers a lottery prize of up to
$1 million for visiting it).
Good site design avoids the tendency to copycat other
sites, or to give the site an obscure, irrelevant name. The site
name should be registered with more than one browser (or
portal) and should be promoted thereon.
Once attracted to the site, the prospect should be encouraged
to interact in a mutually productive manner. This means the site
should pique the customer's interest by providing information of
interest for different visitors such as traders, mystery lovers,
sports enthusiasts, and word game players all over the world.
This interesting information should be updated regularly, to
prevent staleness and encourage return visits.
Most Internet activity relating to strategic marketing planning
objectives and activities is implemented on company/ brand,
information, selling and service sites.
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COMPANY/BRAND SITES
These sites are directly informational, and indirectly
promotional. The Coca-Cola Web site is an illustrative example.
This site consists of twelve sections, including three
international sites, that explain the company's history, mission,
and products; allow visitors to interact with company
spokespeople; provide information to Coke memorabilia
collectors; provide links to sports and entertainment providers;
and offer puzzles and word games. None of these sites actively
sell Coke products, but, collectively, enhance brand equity and
promote purchases of Coke products through other outlets.
INFORMATION SITES
This type of site relies on member loyalty to generate
revenue through advertising or subscription rates. An example of
such a site is the Wall Street Journal interactive site
(www.WSJ.com) which generates fees from subscribers who
read up-to-the-minute financial information and WSJ articles
and advertisers whose banner headlines promote related
financial products, allow subscribers to track markets and investments, and research financial products and markets.
Another type of information site, represented by the Yahoo!
search engine, helps Internet surfers find information they seek.
Search engines like this generate revenue by selling banner
advertising, which is segmented according to the type of search
being conducted.
For example, a request for information on corporate training
programs might bring up a banner advertisement for Merton
Electronics. In addition to the search feature on the Yahoo! site,
users can bid on products at auction, get up-to-date news, build a
virtual store online, or join a virtual community that shares
information among members.
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SELLING SITES
Amazon.com is a good example of a selling site (virtual stores
that allow customers to buy products over the internet). The
Amazon.com site sells more than five million books, CDs,
audiobooks, DVDs, computer games, and related products to
customers in more than 160 countries worldwide.
Like Amazon.com, most selling sites are designed to move
consumers through multiple stages of the decision-making
process.
The Daimler Chrysler site, for example: (1) asks questions,
the answers to which help prospects screen themselves to
identify individual needs relating to ownership of an automobile
(problem recognition); (2) provides information on Daimler
Chrysler offerings (for example, the Jeep Grand Cherokee)
relating to these identified needs (information search); and
(3) compares features and benefits of different makes and
models in the buyer's choice set (alternative evaluation). After
the shopper chooses make and model, he or she can get a quote
on the price of the car from dealers participating in the site
(purchase). Post-purchase evaluation is manifest in the service
site, discussed next.
SERVICE SITES
The Wells Fargo service site is a good example of characteristics
and benefits of these sites. On a basic level, their ATMs
(Automated Teller Machines), which simplify financial
transactions with customers, allow banks to extend banking hours
to twenty-four hours a day without the need for additional
personnel and, by including ATMs in retail establishments, to
expand geographically without having to build additional branches.
On the Internet level, Wells Fargo's interactive online
service site allows customers to access account balances, review
transaction histories, buy and sell securities, transfer funds
between accounts, pay bills, and apply for lines of credit and
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home equity loans. Savings on telephone and personnel charges


from customers requesting balance information was sufficient to
subsidize their entire Web site.
Federal Express is another excellent example of savings
possible through a welI-designed service Web site. The FedEx
Web site, which helps customers interactively track packages
from initial shipping to destination, saves the company about
$125,000 a month in telephone charges and support personnel
who were previously required to answer customer questions
about the whereabouts of packages.
(Richard L. Sandhusen Marketing, third edition, Barrons
Educational Series, New York, 2000)
Debate
1. What are some of the characteristics of a welldesigned
website?
2. What is a brand site?
3. Is Amazon.com a selling site?
4. Could you give some examples of informational and
services sites?
Vocabulary Useful Words and Phrases
to copycat unauthorized duplicate of a certain fashion
design; they are usually made of lesser quality imitations of the
original
to pique one's interest to provoke; arouse, to stir
staleness triteness, unoriginality as a result of being dull
memorabilia a souvenir (from the French for memory); an
object that is treasured for the memories associated with it.
brand equity the added value a brand name identity brings to
a product or service beyond the functional benefits provided.
revenue gross, the entire amount of income before any
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deductions are made


fee a fixed sum charged, as by an institution or by law,
for a privilege
subscriber someone who contributes a sum of money in
exchange of a certain service
account balance the amount of money in an account,
equal to the net of credits and debits at that point in time for that
account. also called balance
home equity loans a loan based on the equity in ones
home, typically used for large expenditures such as major home
improvement, buying another home, college education, etc.
1. Read the following sentences and decide if they are
true or false. Mark them with T or F
1. Most selling sites are designed to move consumers
through multiple stages of the decisionmaking process.
2. An ATM is an Automated Teller Machine that simplifies
financial transactions with customers.
3. Federal Express is an excellent example of how
expensive a welIdesigned service Web site can be.
4. Won.com site that offers a lottery prize of up to
$1000 million for visiting it.
5. The CocaCola Web site consists of twelve different
sections.
2. Read the following statements and complete them
using a suitable word or phrase:
1. In order to make online customers visit a particular web
site, marketers can use other mediaprint.
a) banners
b
b) letters
c) advertising
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2. The Wall Street Journal is an information. site


a) highly used
b) important
c) interactive
3. Search engines
advertising.
a) profits
b) revenue
c) money

generate.

by

selling

banner

4. Interactive online services allow customers to access


account..
a) money
b) situation
c) balances
__________________________________________________
Grammar Review THE ANALYTIC (PERIPHRASTIC)
SUBJUNCTIVE
__________________________________________________
Remember: The analytic subjunctive is formed of :
modal auxiliaries
shall/should
may/might
would
Use: it also expresses unreality
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plus

infinitives

+
+
+

infinitive
infinitive
infinitive

Remember!: Use the analytic subjunctive after:


the following words and phrases:
it is/was necessary, advisable, essential, important, right,
strange, odd, surprising, annoying, ridiculous, absurd, etc.
the following verbs:
suggest, propose, insist, recommend, command, demand, etc.
___________________________________________________
3. Read the following sentences and put the verbs in
brackets at the correct form:
1. It is essential that an Internet web site (be) . well
designed.
2. It is amazing that many famous brands (sell) both
online and in traditional shops.
3. It is incredible that one (find).. information on the
Internet about practically everything.
4. It is unbelievable that so many teenagers (use)..
the Internet to make their homework.
5. Its unlikely that an unknown site (sell) so many
advertising spaces.
6. Its remarkable that the same Internet portal (offer)
. so many different sections.

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4. Read the following utterances and match each one of


them from the first column (numbered from 15) to their
logical halves from the second column (marked from ae)
1. Its advisable that you should not save
2. Dont you think it unbelievable that one should communicate online
3. I told her it was natural that FedEx
4. The Manager suggested that
5. Isnt it strange that some sites should sell
a.
b.
c.
d.
e.

the meeting should be postponed


so fast with people from all over the world?
too many movies in your computer!
all the time while others are not even known of?
should have delivered her the shopping so soon.

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9. Lesson Nine
DIGITALIZATION AND CONNECTIVITY

Many appliances and systems in the past ranging from


telephone systems, wrist watches and musical recordings to
industrial gauges and controls operated on analogue
information. Analogue information is continuously variable in
response to physical stimuli.
Today a growing number of appliances and systems
operate on digital information, which comes as streams of zeros
and ones, or bits. Text, data, sound and images can be converted
into bitstreams. A laptop computer manipulates bits in its
thousands of applications. Software consists of digital content
for operating systems, games, information storage and other
applications.
For bits to flow from one appliance or location to another
requires connectivity, a telecommunications network. Much of
the world's business today is carried out over networks that
connect people and companies.
With the creation of the World Wide Web and Web
browsers in the 1990s, the Internet was transformed from a mere
communication tool into a certifiably revolutionary technology.
By 2003, Internet penetration in the United States had
exceeded 66 per cent. Although the dot-com crash in 2000 led to
cutbacks in technology spending, research suggests that the
growth of Internet access among the world's population will
continue to explode.
Internet use in the old IS-nation EU has grown 97.2 per
cent between 2000 and 2004, while the new EU members report
a whopping increase of 155.1 per cent over the same period.
There are now over 184 million Internet users in the expanded
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EU, representing an overall growth of 102.3 per cent between


2000 and 2004.
This explosive worldwide growth in Internet usage forms
the heart of the so-called New Economy. The Internet enables
consumers and companies to access and share huge amounts of
information with just a few mouse clicks.
Recent studies have shown that consumers are accessing
information on the Internet before making major life decisions.
One in three consumers relies heavily on the Internet to gather
information about choosing a school, buying a car, finding a job,
dealing with a major illness or making investment decisions. As
a result, to be competitive in today's new marketplace,
companies must adopt Internet technology or risk being left
behind.
When people think of the typical Internet user, some still
mistakenly envisage a pasty-faced computer nerd or
cyberhead, others a young, techy, up-market male professional.
Such stereotypes are sadly outdated. As more and more people
find their way onto the Internet, the cyberspace population is
becoming more mainstream and diverse.
The Internet was, at first, an elitist country club reserved
only for individuals with select financial abilities and technical
skills', says an e-commerce analyst. 'Now, nearly every
socioeconomic group is aggressively adopting the Web.
The Internet provides e-marketers with access to a broad
range of demographic segments.
In recent research conducted among 3,600 individuals who
play online games, the US Digital Marketing Services found that
American females over 40 years old spend about 9.1 hours per
week playing online games (e.g., word and puzzle, casino, trivia
and arcade games).
By, contrast, female teenagers spend 7.4 hours per week
playing games, while females under 40 years log 6.2 hours.
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America Online offers a Kids Only area featuring


homework help and online magazines along with the usual
games, software and chatrooms. The Microsoft Network site
carries Disney's Daily Blast, which offers kids games, stories,
comic strips with old and new Disney characters.
BeingGirl.com is a site for teens, offering information on
relationships, boys, periods and much more. Leading girls'
entertainment software publishers also joined forces to offer a
special website (just4girls.com) that promotes stories, games,
dolls and accessories targeted at 8-12-year-old girls.
Although Internet users are still younger on average than the
population as a whole, consumers aged 50 and older make up
almost 20 per cent of the online population.
Whereas younger groups are more likely to use the Internet for
entertainment and socialising, older Internet surfers go online
for more serious matters.
Internet consumers differ from traditional offline consumers
in their approaches to buying and in their responses to
marketing. People who use the Internet place greater value on
information and tend to respond negatively to messages aimed
only at selling. Internet directories, such as Yahoo! NodeWorks
and Lycos, and search engines, such as Google, AltaVista,
Excite, AlltheWeb and many others, give consumers access to
vast and varied information sources, making them better
informed and more discerning shoppers.
Traditional marketing targets a somewhat passive audience. In
contrast, e-marketing targets people who actively select which
websites they will visit and what marketing information they
will receive about which products and under what conditions.
Thus, the new world of e-commerce will require new
marketing approaches.
(Philip Kotler, Veronica Wong, John Saunders, Gary Armstrong
Principles of Marketing fourth edition, Pearson Education
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Limited, London, 2005)


Debate
1. In your own words, explain what is connectivity.
2. What do you know about the explosive growth of the
internet usage?
3. What is the New Economy?
4. What is the online customers profile? What can you
tell about the traditional buyer?
Vocabulary Useful Words and Phrases
information storage the holding of data in an electromagnetic
form for access by a computer processor
appliance a device operated by use of electricity, gas, etc.
crash 1.a sudden, usually drastic failure; 2. a sudden large
decline of business or the prices of stocks (especially one that
causes additional failures)
to cutback to cut down ; to make a reduction in; to place
restrictions on
a whopping increase an increase above average in size or
number or quantity or magnitude or extent
overall growth - regarded as a whole; general, total, complete
growth
to envisage to imagine, to form a mental image of something
that is not present or that is not the case
pasty-faced pale and dull of complexion
up-market appealing to or designed for high-income
consumers; upscale

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1. Read the following statements and complete them


using the correct word or phrase; choose the most suitable
alternative a, b or c:
1. The Internet enables consumers and companies ..
huge amounts of information
a) to divide
b) to send
c) to share
2. By means of the Internet people can be connected with
just a few .
a) mice clicks
b) mouse clicks
c) mouse click
3. The Internet provides emarketers with access to a broad
range of segments.
a) people
b) users
c) demographic
4. Kids Only area offers homework help and online
magazines along with the usual games, .and chatrooms.
a) hardware
b) software
c) CDs
5. Younger groups are more likely to use the Internet for
entertainment and..
a) having a good time
b) having fun
c) socializing
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2. Read the following sentences and decide if you agree


or not to what they state. Mark them with T or F
1. Today a growing number of appliances and systems
operate on analogue information.
2. Connectivity makes bits to flow from one appliance or
location to another.
3. Recent studies show that consumers dont access
information on the Internet before making major life decisions.
4. The typical Internet user is a young, techy, upmarket
male professional.
5. Consumers aged 50 and older never use the Internet.
3. Read the following words and put them into the right
order so as to form coherent sentences:
1. teens, is, beinggirl.com, information, a site, offering, for,
on, relationships.
2. per week, teenagers, female, 7.4 hours, playing, spend,
games.
3. traditional, differ, consumers, consumers, Internet, from,
offline.
4. text, bitstreams, sound, be, images, can, data, converted
into, and.
6. people, use, place, greater, the Internet, value, on, who,
information.

__________________________________________________
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Grammar Review : CONDITIONAL CLAUSE TYPE 1


___________________________________________________
Remember: The first condition, also called possible, shows a
wish, a desired action, an event, a state of facts, etc, that are very
likely to come true.
Model:
if clause
Present Tense Simple

main clause
Future Tense Simple

If you want to be well informed you will have to read the


newspapers.
__________________________________________________
4. Read the following sentences and put the verbs in
brackets at the correct tense in order to create
grammatically valid statements:
1. The Internet ( help) you a lot if you (know)
how to use it.
2. Little Alan (use).. the computer to play games if
you (buy) him one.
3. If you (access) America Online you (find).. a lot
of information.
4. Usually young people (use).. the computer if they
(want).. to have fun .
5. If a message has been aimed only at selling, the Internet
users .. probably (react) ..negatively.

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5. Read the following utterances and match each one of


them from the first column (numbered from 15) to their
logical halves from the second column (marked from ae)
1. If you like it you can spend many hours chatting
2. If Walter doesnt know how to use the computer
3. Studies have revealed that if consumers intend to make
a major life decision
4. If one needs a job he/she
5. If you want to buy a car on the Internet
a)
b)
c)
d)
e)

youll be able to do it very quickly.


with your friends from all over the world.
they will access the Internet.
he wont be able to find a well paid job.
can find it online.

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10. Lesson Ten


INTERNATIONAL TRADE
This section examines reasons for the burgeoning growth
of world trade, the general lack of US participation in this
growth, the benefits and drawbacks of participating in world
trade, the trends that will shape global market threats and
opportunities, and where in the world these threats and
opportunities exist.
WHY INTERNATIONAL TRADE GROWS
Beginning in the second half of the twentieth century,
international trade the exchange of goods and services among
countries became the fastest growing sector of the world
economy, increasing from less than $200 billion to more than
$5 trillion between 1975 and 1999. The following interrelated
conditions facilitated this growth:
LONG PERIODS OF GLOBAL PEACE
In contrast to the first half of the twentieth century, when
much of the substance of advanced countries was diverted
toward military adventures, the second half was largely
characterized by localized conflicts among less developed
countries, leaving a stable foundation for healthy, rapid growth
of the global economy.
Global economic growth, in turn, is a potent imperative
to peace, as countries, through open trading relationships, create
the wealth, productivity, and living standards that substitute for
the goals of aggression.

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TECHNOLOGICAL BREAKTHROUGHS
Ironically, the wars that diverted resources from peaceful
trading pursuits before mid-century were largely responsible for
technological breakthroughs that fueled trade after mid-century.
Particularly in the fields of power, communication, and
transportation (for example, jet aircraft, electronic data
transmission, television), these breakthroughs created products
to trade, processes to make them, and the means to market them
in geographically dispersed areas. To quote Levitt:
Technology has created a new commercial reality. . . the
emergence of global markets for standardized consumer
products on a previously unimagined scale. . . . Almost
everyone, everywhere, wants all the things they've heard about,
seen, or experienced via the new technology.
INTERNATIONAL TRADING AGREEMENTS
If peace and technology were largely responsible for
creating an environment in which international trade could
flourish, a common commitment among nations to avoid
restrictive trade practices and foster global economic growth
was largely responsible for creating agreements to enhance the
free flow of goods and services among nations.
Examples of these agreements include the General
Agreement on Tariffs and Trade (GATT), replaced in 1995 by
the World Trade Organization (WTO), the International
Monetary Fund (IMF), and the World Bank. WTO provides
principles and procedures for reducing tariffs and liberalizing
trade, such as the Most-Favored-Nation principle, whereby each
signatory country extends to all countries its most favorable
trade terms. The IMF creates multinational reserve assets that
member nations can draw upon for financial support. These
assets are usually drawn upon by developing countries with
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severe balance-of-payments problems, in return for which they


are usually expected to make politically unpopular concessions.
For example, when the exchange value of the Mexican peso fell
by almost half in 1995-reducing living standards and leaving
many businesses near ruin the price of a new line of credit
from the U.S. Treasury and the IMF was a draconian economic
program guaranteed to ensure recessive conditions.
The World Bank, initially formed in 1944 to aid
countries suffering from the destruction of war, tends to take a
more active role than the IMF in helping countries modify basic
economic policies in return for aid. This aid usually focuses on
infrastructure development, such as transportation, communication, and power. More recently, the World Bank has worked
with the IMF to resolve debt problems in the developing world,
including taking an active role in bringing market economies to
former communist-bloc countries.
(Richard L. Sandhusen Marketing, third edition, Barrons
Educational Series, New York, 2000)
Debate
1. Could you enumerate some reasons why the international trade is in a constant growth?
2. What is the connection between war technology and
midcentury trade?
3. Could you name at least 3 International Agreements?
Vocabulary Useful Words and Phrases
burgeoning growth flourishing growth
drawback a disadvantage or inconvenience
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trading pursuits course of business or occupation; mercantile


pursuits; a literary pursuit
to foster to promote the growth of
emergence the gradual beginning or coming forth;
to divert to deviate, turn aside; turn away from
GATT General Agreement on Tariffs and Trade
WTO World Trade Organization
IMF the International Monetary Fund

1. Read the following words and put them into the right
order so as to form coherent sentences:
1. has been, growth, the, periods, international, favoured, by, of,
peace, long, trade.
2. after, were, largely, breakthroughs, fueled, trade, wars, midcentury, that, responsible for, technological.
3. things, everyone, heard about, almost, everywhere, all,
they've, wants, the.
4. 1995, almost, standards, exchange, value, the, the, peso, fell,
by, Mexican, half, of, in, reducing, living.
5. the, World Banks, usually, such as transportation,
infrastructure, communication, development, and, power,
focuses on, aid.
2. Read the following sentences and decide if you agree
or not to what they state. Mark them with T or F
1. GATT is an international organization that creates
multinational reserve assets that member nations can draw upon
for financial support.
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2. The World Trade Organization is the international forum


that provides the MostFavouredNation principle.
3. Technology has created a new commercial reality that
led to the emergence of global markets for standardized
consumer products.
4. The World Bank was initially formed in 1944 to aid
countries suffering from the destructions of the war.
5. The international trade growth has been favoured by
long periods of war.
Grammar Review : CONDITIONAL CLAUSE TYPE 2
Remember: The second condition, is also called probable and it
can express a desire, a suggestion, a piece of advice, etc.
this condition may be realized; still there is a
stronger doubt;
there is something that obstacles the fulfillment
of this condition
Model:
if clause
Present Subjunctive

main clause
Present Conditional

If you wanted to be well informed you would read the


newspapers daily.
__________________________________________________
Remember!: Present Conditional is formed of
The modal auxiliaries would + infinitive
should
+ infinitive
might
+ infinitive
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could

+ infinitive

3. Read the following sentences and choose the right


alternative a, b or c in order to create grammatically valid
statements:
1. Global economy .a rapid growth if funds werent
directed toward military adventures.
a) registers
b) will register
c) would register
2. They agreements if they werent necessary.
a) didnt conclude
b) wouldnt conclude
c) would conclude
3. If international organizations ..they wouldnt donate
money for people suffering from the war destruction.
a) dont care
b) didnt care
c) dont matter
4. They wouldnt reduce tariffs and liberalize trade for the
MostFavouredNation if they that those people are in
need.
a) will not know
b) hadnt known
c) didnt know
5. We wouldnt desire to buy so many things if we
their commercials before.
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a) didnt see
b) saw
c) wouldnt see
4. Read the following sentences and put the verbs in
brackets at the correct tense in order to create
grammatically valid statements:
1. Tom (worry)if his online shopping werent delivered
in due time.
2. If I (know).how to get an IMF sponsorship I would
tell it to you.
3. What would you do if your country (not become)a
member of the European Union?
4. What strategy would you opt for if your company (go)
.bankrupt?
5. If the national currency (fall).. by almost more than
half this year the living standards would be radically reduced.

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11. Lesson Eleven


INTERNATIONAL BANKING
Only thirty years ago, United States banks, with few
exceptions, stayed within their own national borders. The field
of international banking was dominated by British banks. But
things have changed dramatically. Now many large U.S. banks
do a significant part of their business overseas, lending to
foreigners. Correspondingly, foreign banks do a lot of business
in this country, lending to Americans.
AMERICAN BANKS ABROAD
In 1960, only eight U.S. banks had branches abroad, and
the assets of those branches totaled less than $4 billion. Now
about 130 American banks have foreign branches, and the assets
of those branches approach $300 billion. What accounts for this
remarkable expansion of U.S. banks into foreign countries?
One reason is the rapid growth of foreign trade and of U.S.
multinational corporations that took place during the sixties and
seventies. American firms engaged in importing or exporting,
and American multinationals with subsidiaries and affiliates
abroad, often need banking services overseas. Foreign banks can
do the job if necessary, but a branch of an American bank abroad
can be even more convenient: there are no language problems;
the firm and the branch share common business customs and
practices; and in the case of multinationals the parent firm and
parent bank may already have longstanding ties with each other.
In addition to branches abroad, U.S. banks also
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participate in international financing through Edge Act


corporations, which are domestic subsidiaries engaged strictly in
international banking operations. In 1919 Congress passed the
Edge Act (named after Senator Walter Edge of New Jersey) to
allow U.S. banks to establish special subsidiaries to facilitate
their involvement in international finance. Edge Act
corporations are located in the United States, but they are
exempt from the McFadden Act's prohibition against interstate
branching, so that a bank can have Edge Act subsidiaries in
several different states one in Florida, for example, specializing
in financing trade with Latin America, one in New York, one on
the West Coast, and so on.
FOREIGN BANKS IN THE UNITED STATES
Just as U.S. banks have a major presence abroad, so foreign
banks play a significant role in this country. For example, in a
typical year about 28 percent of the dollar volume of all
commercial bank business loans in the United States is made by
branches or subsidiaries of foreign-owned banks.
Many large and well-known banks are foreign-owned:
Marine Midland of Buffalo is owned by the Hong Kong and
Shanghai Banking Corporation; Union Bank of Los Angeles is
British-owned; California First Bank of San Francisco is
Japanese-owned; Harris Trust of Chicago is owned by the Bank
of Montreal; and the European-American Bank (New York),
successor to the failed Franklin National Bank, is owned by a
consortium of six foreign banks whose home bases are Austria,
Belgium, England, France, Germany, and the Netherlands. All in
all, more than 900 offices of foreign banks are currently
operating in the United States.
Foreign banks do business here through four main
organizational forms: they may open a branch of the parent
bank, open or buy a subsidiary bank, establish an agency, or
open a representative office. A branch is an integral part of the
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foreign bank and usually carries that bank's name. A subsidiary


is legally separate from the foreign bank that owns its stock; the
subsidiary usually has its own charter and mayor may not carry
the name of its foreign owner. Both branches and subsidiaries
are full-service banking institutions. Agencies have more limited
powers than either branches or subsidiaries; they can make loans
but cannot accept deposits. Representative offices cannot accept
deposits or make loans; they mostly make contacts with
potential customers of the parent organization (by holding
dinner parties) and perform public relations functions (by sponsoring rock or philharmonic concerts). Foreign banks can also
complicate matters further by having Edge Act corporations in
the United States.
Until 1978, foreign banks operating in the United States
were largely unregulated. They did not have to hold reserves
with the Fed, they were able to branch across state lines, and
they had numerous other rights and privileges denied to
domestic banks. This was changed by the International Banking
Act of 1978, which brought foreign banks under essentially the
same federal regulations that apply to domestic banks.
(Lawrence S. Ritter, William L. Silber, Principles of Money,
Banking and Financial Markets, seventh edition, BasicBooks,
USA, 1991)
Debate
1. Why do you think that many U.S. banks do a significant part
of their business overseas?
2. What is the impact of the Edge Act on the American banking
system?
3. What is the role of the foreign banks in US?
4. What about the foreign banks in Romania?
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Vocabulary Useful Words and Phrases


assets economic resources that are owned or controlled by an
entity; what a firm or individual owns
branch an administrative division of some larger or more
complex organization; a branch of Congress
subsidiary subsidiary company: a company that is completely
controlled by another company
domestic of concern to or concerning the internal affairs of a
nation
business customs usual business or individual practice;
habitual tendency followed as a matter of course; traditional
policy example: a firm that is closed for business on Sunday
parent company a company that owns enough voting stock in
another firm to control management and operations by
influencing or electing its board of directors; also called holding
company
parent bank a bank in one country that has a subsidiary in
another country
exempt from to free from an obligation, a duty, or a liability to
which others are subject
stock the capital raised by a corporation through the issue of
shares entitling holders to an ownership interest (equity)
1. Read the following words and put them into the right
order so as to form coherent sentences:
1. are, foreign-owned, large, and, many, well-known, banks.
2. about, branches, American, have, banks, foreign, 130, now.
3. corporations, banks, participate in, may, financing, U.S.,
international, through, Edge Act.
4. perform, usually, philharmonic, representative offices, by
sponsoring, functions, public relations, rock, or, concerts.
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2. Read the following sentences and decide if they are true or


false. Mark them with T or F
1. A domestic bank is one that operates exclusively with the
national currency.
2. A parent bank is a bank in one country that has a subsidiary in
another country.
3. The Edge Act corporations are located in Canada and they are
exempt from the McFadden Acts prohibition against interstate
branching.
4.Both branches and subsidiaries are full-service banking
institutions.
3. Read the sentences written below and fill in the blanks by
using the following words: branch, subsidiary, agencies,
representative offices
1.cannot accept deposits or make loans; they mostly
make contacts with potential customers of the parent
organization .
2. is legally separate from the foreign bank that owns
its stock; the subsidiary usually has its own charter and may or
may not carry the name of its foreign owner.
3. is an integral part of the foreign bank and usually
carries that banks name.
4.have more limited powers than either branches or
subsidiaries; they can make loans but cannot accept deposits.
GRAMMAR REVIEW:
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Remember: The third condition, also known as the impossible


one, shows the speakers feelings (of content, of regret, of
nostalgia, etc) about something that happened or could have
happened in the past
this condition cant be fulfilled anymore; time has elapsed and
nothing can be changed anymore
Model:
if clause
Past Subjunctive

main clause
Past Conditional

If you had wanted to be well informed you would have read


the newspapers daily.
___________________________________________________
Remember!: Past Conditional is formed of
The modal auxiliaries would + have + infinitive
should +have + infinitive
might + have + infinitive
could + have + infinitive

4. Read the following sentences and choose the right


alternative a, b or c in order to create grammatically valid
statements:
1. British Banks international banking if they
hadnt had branches abroad.
a) will have dominated
b) wouldnt have dominated
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c) wont have dominated


2. The foreign banks so effective if they hadnt
spoken English fluently.
a) wont be
b) cant have been
c) couldnt have been
3. The US banks that much in international
financing if it hadnt been for the Edge Act.
a) would have participated
b) wouldnt have participated
c) would participate
4. If you .well informed you wouldnt have
known that many US banks are foreign owned.
a) werent
b) havent been
c) hadnt been
5. If it ..for the International Banking Act of 1978,
foreign banks couldnt have been under the same federal
regulations as the domestic banks.
a) wouldnt have been
b) wasnt
c) hadnt been

105

5. Read the following utterances and match each one of


them from the first column (numbered from 15) to their
logical halves from the second column (marked from ae)
1. If US banks hadnt been exempt from McFadden Acts
prohibition
2. If the trade hadnt grown so rapidly in America
3. They couldnt have opened a new branch of the bank
4. American banks wouldnt have been a major presence
abroad
5. If it hadnt been for the US multinational corporations
during 60s and 70s
a) they wouldnt have needed so many new branches.
b) if there hadnt been a parent bank.
c) the American banks wouldnt have represented such a
big influential factor abroad.
d) they wouldnt have been allowed to have interstate
subsidiaries.
e) if it hadnt been for the expansive US policy concerning
banks.

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12. Lesson Twelve


INTRAPERSONAL VARIABLES THAT INFLUENCE
CONSUMER BEHAVIOUR
GENDER-BASED GROUPS
Country-specific attitudes toward males and females are of
interest to global markets in that they help define the nature and
size of markets, and marketing mixes that best meet the needs of
these markets.
To varying degrees, for example, most Asian and Islamic
countries exhibit male preference, manifested in China by the
widespread practice of aborting female fetuses, and in Saudi
Arabia by the separated, downgraded socioeconomic status of
women, who must attend separate schools, are generally
restricted from working outside the home (mostly in professions
with no male contact), and are legally prohibited from driving
cars or riding in a taxi without a male escort.
Even when women constitute a large portion of the
working population, there are dramatic differences in types of
jobs regarded as male or female. In Sweden, for example,
more than 45 percent of administrative and managerial positions
are held by women, compared to less than 5 percent in Spain.
Thus, for a company like Merton, an understanding of the
relative socioeconomic status of the sexes can help answer a
number of questions pertaining to consumer behavior, such as
how large each market is, what products each needs, who makes
purchasing decisions, and how each market can best be reached.

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HOW INTRAPERSONAL VARIABLES INFLUENCE


CONSUMER BEHAVIOUR
Having identified significant interpersonal variables - such as
cultural and social values that defined target market
characteristics and needs as well as marketing mix strategies for
reaching target market members, Merton planners next focused
on intrapersonal variables predisposing individual target market
members toward the purchase of MM systems. For example,
what would be the effect of a respondent's age and economic
condition on a decision to purchase an MM system? What
personal motivations would such a purchase satisfy? How would
lifestyle and personality characteristics predispose purchase?
In exploring the nature and impact of these variables on
consumer behavior. the planners began with demographic
intrapersonal variables including age, occupation, and economic circumstances-and then explored psychographic intrapersonal variables, induding motivation, learning, perception,
attitudes, personality, and lifestyle.
DEMOGRAPHIC INTRAPERSONAL VARIABLES
Information on demographic variables, which pertain to such
state-of-being characteristics of human populations as size,
density, location, age, sex, and race, are relatively easy to come
by and frequently correlate well with buyer behavior. Thus, in
every market studied, Merton planners found significant
relationships among three demographic variables age, occupation, and income and interest in purchasing MM systems. They
found, for example, that middle management in accounting,
banking, and insurance fields, primarily in the 30-50 age group,
had the strongest interest in purchasing MM systems and
sufficient discretionary income and borrowing power to fulfill
this interest.
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PSYCHOGRAPHIC INTRAPERSONAL VARIABLES


Unlike demographic variables, significant psychographic
variables motives, attitudes, perceptions, and the like are
generally difficult to identify and measure. Often it's worth the
effort, however, since these variables can be the most useful of
all for segmenting markets and building persuasive marketing
mix offerings that relate to potent emotive responses.
Following are brief definitions of motives, perceptions,
attitudes, and lifestyles and the Merton planners' conclusions
pertaining to the effect of each on consumer responses to MM
marketing mix variables.
MOTIVATION
A motive, or drive, is a stimulated need that an individual
seeks to satisfy.
Until it is satisfied or otherwise eliminated it will
continue to generate an uncomfortable tension. Stimulated needs
can be classified as primary buying motives (associated with
such broad product categories as computers) or selective buying
motives (associated with such specific product brands as MM
computers). Marketing activities can be viewed as a way to both
stimulate motives (to feel a need for a computer system) and to
satisfy motives (to make an offer that meets this need that the
buyer can't refuse).
Maslow identifies a hierarchy of five levels of needs,
arrayed in the order in which an individual is motivated to
gratify them, starting with physiological needs and working up
through safety, social, and esteem needs to self-actualization
needs atop the hierarchy. Accepting Maslow's hierarchy, Moore
would then attempt to identify the need hierarchy level occupied
by prospective MM systems buyers, then plan a promotional
campaign to reach this target market, based largely on a
researched understanding of the nature and needs of this
109

segment.
PERCEPTION
Perception is the process by which people derive
meaning from the selection, organization, and interpretation of
stimuli from within themselves (such as a feeling of frustration)
or from the external environment (such as an advertisement for
MM computer systems). Three perception-related concepts are of
particular interest to marketing managers. Here is how each
might influence a promotional campaign for the Merton MM:
Selective exposure means that people only have the
mental capacity to process a small percentage of the millions of
stimuli competing to get through to our cognitive centers.
Stimuli (such as an advertisement or sales presentation) that
relate to an anticipated event, show how the audience can satisfy
needs, or represent a significant change in intensity from other
stimuli have been found more likely to be selected. Thus, a fullpage advertisement (intensity change) might announce a free
special seminar to learn about MM systems (anticipated event)
and explain how this seminar can satisfy needs for increased
income and an improved lifestyle (need satisfaction).
Selective distortion means that people change the
meaning of dissonant stimuli so that they become consistent
with their feelings and beliefs. For the marketer, this means that
the offering should be consistent with these feelings and beliefs,
or the intended meaning will be lost.
Selective retention means that people are more likely to
remember stimuli that support preconceived feelings and beliefs
and to forget stimuli that do not. In general, people tend to
ignore, or quickly forget, stimuli that they perceive as a
functional risk (the product will not perform as claimed) or a
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psychological risk (the product will not enhance the prospects


self-concept or well-being). For stimuli promoting the MM, this
suggests appeals stressing proofs of performance.
ATTlTUDES
Attitudes are relatively stable tendencies to perceive or
act in a consistent way toward products or classes of products.
They are formed or adjusted by what is learned from families,
peers, and other social groups; from information received; and
from previous behavior. Although attitudes are second only to
intentions as predictors of behavior, they are difficult to define,
measure, and relate to product classes (computers) or specific
brands (Merton).
To mitigate this difficulty, Merton marketers found it
useful to define and measure the influence of attitudes toward
product purchases in terms of four product-related functional
areas:
Utilitarian, or the ability of the product to help achieve
desired goals (a productive career path, for example);
Ego-defensive, or the capability of the product to defend
the buyer's self-image against internal or external threats;
Value expressive, or the degree of consistency of the
product with the buyer's central values or self-image;
Knowledge, or the ability of the product to give meaning
to the individual's beliefs and experiences.
For example, a measurement of these attitudinal
dimensions (using rating scales discussed in Chapter 5) among
middle managers might show confusion as to how the MM
could achieve utilitarian or ego-defensive goals, which could be
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addressed in MM promotional literature.


LIFESTYLE
Distinguishing combinations of activities, interests, and
opinions that lead to relatively consistent and enduring
responses to the environment comprise an individual's lifestyle.
The usual technique for defining an individual's lifestyle, called
psychographics, involves measuring attitudes, interests, and
opinions (AlO) in diverse areas (work, politics, recreation, and
the like) by soliciting agree-disagree responses on lengthy
survey instruments. Once distinctive lifestyle groups are
revealed through similar AlO response patterns, an attempt is
made to relate these groups to demographic and marketing mix
variables. Although problems involved in generating and interpreting lifestyle data can be formidable, they often provide
multidimensional views of target market segments that suggest
new product and product positioning opportunities, improved
communications, and generally improved marketing strategies.
(Richard L. Sandhusen Marketing, third edition, Barrons
Educational Series, New York, 2000)
Debate
1. How does gender influence the consumer behaviour?
2. In what way do intrapersonal variables influence consumer
behaviour?
3.What do you understand by the pshychographic intrapersonal
variable?
4.What is the impact of motivation, perception, lifestyle and
other attitudes on consumer behaviour?
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Vocabulary Useful Words and Phrases


to downgrade to change in negative way
drive a physiological state corresponding to a strong need or
desire
discretionary an action which requires the exercise of
judgment or deliberation during the decision-making process
to array to set out for display or use; place in an orderly
arrangement
dissonant discordant: lacking in harmony
distortion unpleasant change
to forge to move or act with a sudden increase in speed or
energy
to enhance to increase; make better or more attractive
peer a person who has equal standing with another or others,
as in rank, class, or age
to mitigate to moderate (a quality or condition) in force or
intensity
1. Read the following sentences and decide if they are true or
false. Mark them with T or F
1. Most Asian and Islamic countries exhibit female preference,
manifested in China by the widespread practice of aborting male
fetuses.
2. In Sweden, more than 45 percent of administrative and
managerial positions are held by women.

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3. Perception is the process by which people derive meaning


from within themselves (such as a feeling of frustration) or from
the external environment.
4. Perception doesnt have anything to do with consumer
behaviour.
5. The usual technique for defining an individuals lifestyle is
called psychographics and it involves measuring attitudes and
interests in diverse areas such as work, politics, recreation, and
the like.
2. Complete the following statements by choosing the right
alternative a, b or c:
1. In order to define the target market characteristics and needs
as well as the marketing mix for reaching target
market members, it is important to identify significant
interpersonal variables-such as cultural and social values
a) procedures
b) techniques
c) strategies
2. Stimuli, such as an advertisement or sales presentation, that
relate to an anticipated event, show how the audience can
.their needs
a) please
b) fulfil
c) satisfy
3. Attitudes are formed or adjusted by what is learned from
families, peers, other social groups, from information
and from previous behavior.

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a) acknowledged
b) learnt
c) received
4. Maslow identifies a hierarchy of five levels of needs,
.in the order in which an individual is motivated to gratify
them.
a) arrayed
b) ordered
c) seen
5. Interpreting ..data provides information about target
market segments that suggest new product and productpositioning opportunities, improved communications, and
generally improved marketing strategies
a) computer
b) lifestyle
d) accounting
_________________________________________________
Grammar Review: REPORTED/ INDIRECT SPEECH (1)
Remember: it represents the grammatical transformation by
means of which direct speech (spoken language a piece of
dialogue, etc) is turned into indirect or reported speech.
when reporting what someone has said, you have to pay
attention to four main changes, concerning:
A) Tenses
B) Reporting Verbs
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C) Time/Place Signifiers
D) Pronouns
___________________________________________________
A) Tenses
___________________________________________________
Direct Speech

Reported Speech

Present Tense Simple

Past Tense Simple

Present Perfect Simple Past Perfect Simple


Past Tense Simple
Past Perfect Simple
Past Perfect Simple
Past Perfect Simple
Future Tense Simple

Future in the Past


B) Reporting Verbs

to say
to tell
to ask
to accuse
to admit
to advise
to agree
to apologize
to beg
to complain
to deny
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to explain
to imply
to invite
to inquire
to offer
to order
to promise
to reply
to request
to suggest
to think

[Type text]

________________________________________
3. Read the sentences below and turn them into
reported speech:
1. Have you ever thought that people buy depending on the
place they live?
2. I am studying consumer behaviour, Mario said.
3. Do you have any idea about how intrapersonal variables
influence consumer behaviour?
4. I must understand what is the significance of the phrase
selective exposure! , the student exclaimed.
5. Sylvia confessed: I was going to attend a course about
the gender influence on the consumers behaviour
6. The marketing manager announced: We will make an
indepth market research this month.
7. Wilma asked: Have you ever been made to buy
something you dont really needed?
8. The teacher asked the students: How can you define the
term customers expectations?
9. The expert made it clear: One of the most important
things is the buyers attitude.
10. What are the intrapersonal variables?, the student
inquired.

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13. Lesson Thirteen


GENDER DISCRIMINATION
Tradition is a guide, not a jailer!, wrote W. Somerset
Maugham. Could it be that some traditions, however rooted in
great histories and cultures are now trapping countries into
poverty? This certainly appears to be the case when it comes to
the influence of social and cultural norms on the status of
women.
For many people, especially in the developed countries,
discrimination is mostly a moral issue and must be resisted as a
matter of principle. What is often overlooked, however, is the
economic impact of preventing women from participating
actively in the economy.
The Gender, Institutions and Development Database
(GID) shows that deeply rooted social norms and traditions
continue to harm womens economic opportunities in many
countries around the world.
Practices that discriminate against women, from forced
marriages and genital mutilation to restrictions on inheritance
and ownership rights, stand in the way of gender equality and
economic development.
Almost universally, women have failed to reach leading
positions in major corporations and private sector organizations,
irrespective of their abilities.
Women are better educated and hold more jobs
worldwide than ever before. They represent almost 40 per cent
of the worlds labour force. Yet, most women continue to suffer
from occupational segregation in the workplace and rarely break
through the so-called glass ceiling separating them from
top-level management and professional positions. The term
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glass ceiling was coined in 1970s in the United States to


describe the invisible artificial barriers created by attitudinal and
organizational prejudices, barring women from top executive
jobs.
For women with family responsibilities, their upward
movement may be hampered as they juggle time to devote to
both career and family. An important feature of professional and
especially managerial work, are the long working hours that
seem to be required to gain recognition and eventual promotion.
Part-time managers are a rare breed and yet it seems
virtually impossible to reconcile long hours with the demands of
running a home and caring for children. As a result, in certain
countries there are indications that women, more than men,
forgo marriage and children for the sake of their careers.
Still, what can be done to make things better?
Some strategies meant to promote women in
management cover areas such as training, networking,
mentoring, review of recruitment and promotion systems, family
friendly policies, awareness-raising, evolving enterprise culture,
recognition of womens increasing economic role and contribution and improved data collection. Finally, governments,
employers, workers organizations and womens organizations
play an important part in promoting gender equality and women
in management.
Another important aspect is that fighting against gender
discrimination must involve men too. Engaging men in reform,
providing incentives and perhaps even financial compensation
are important.
Yet, even if generally speaking the situation is far from
being pleasing, there are few exceptions. Such is for instance the
case of the world famous company Hewlett-Packard Co. (HP).
On Monday, Hewlett-Packard named Carly Fiorina its
new president and chief executive.
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Although acknowledged for her sales skills and ability to


build consensus, Fiorina was not a financial expert. She learned
by doing, thought about thing from her own unique perspective,
and was bright enough to pull it off.
Her career path was non-traditional, being governed
more by chance rather than by design. She started in law school,
but dropped out after a year.
She worked as a receptionist and a teacher before
moving into sales at AT&T in 1980. She moved up through the
AT&T organization and has said, I've never foreseen a path for
myself, but I've always seized whatever opportunities presented
themselves.
Frequently moved around the world while growing up,
she had the opportunity to learn from many cultures. Fiorina's
father, an intellectually rigorous law professor, raised, her and
her brother.. to speak their minds and to accept no limits. That
may exp1ain her career decision.
Her mother, a painter, taught Carly the power of positive
attitude and gave her a zest for life.
In a recent interview, Lew Platt, current HP CEO,
explained some of the reasons for selecting Fiorina: She is able
to impart HP speed and a sense of urgency; the Internet age
implies Internet speed so we had to invigorate things here.
(OECD Observer No.254, March 2006)
Debate
1. What do you know about gender discrimination?
2. Using the information from the text can you give any
examples of gender discrimination?
3. Do you think that this is a serious problem?
4. If you had the power, what would you do to change the
existing situation?
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Vocabulary Useful Words and Phrases


to be trapped here to get stuck, to be caught
to engage here, to involve
ownership possession, the act of having and controlling
property
irrespective regardless, in spite of everything
to bar the act of excluding someone
to hamper to hinder or inhibit the progress or movement of
someone or something
to juggle to deal with simultaneously
rare breed here, rara avis
to forgo to abandon, lose, refrain from consuming
to pull off to perform in spite of difficulties or obstacles
zest gusto, vigorous and enthusiastic enjoyment
1. Read the following sentences and decide if they are true or
false. Mark them with T or F
1. Women havent failed to reach leading positions in major
corporations and private sector organizations, irrespective of
their abilities.
2. Part-time managers are a rare breed.
3. Procter and Gamble named Carly Fiorina its new president
and chief executive.
4. At present, women are better educated and hold more jobs
worldwide than ever before.
5. Lew Platt, current HP CEO was a former painter.

121

2. Read the following words and put them into the right
order so as to form coherent sentences:
1. a, a, guide, is, jailer, not, tradition.
2. economic, the main, participating, of discrimination,
actively, is, it, prevents, women, from, that, in, impact, the
economy.
3. segregation, women, most, to suffer, continue, from,
occupational, in, the workplace.
4. against, fighting, discrimination, too, involve, gender, must,
men.
5. represent, 40, labour, women, of, the worlds, force, almost,
per cent.
3. Read the following terms and phrases and match each
term from the right column (numbered from 1-11) to their
definition from the left column (marked from a-k)
1. The Gender, Institutions and Development Database (GID)
shows that discrimination continues
2. Engaging men in reform, providing incentives
3. In certain countries there are indications that women, more
than men
4. The term glass ceiling describes the invisible artificial
barriers created by prejudices
5. For women with family responsibilities, their upward
movement may be hampered
a) and perhaps even financial compensation are important.
b) that prevent women from top executive jobs.
c) as they juggle time to devote to both career and family
d) to harm womens economic opportunities all over the world.
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e) forgo marriage and children for the sake of their careers.


Grammar Review : REPORTED/ INDIRECT SPEECH (2)
__________________________________________________
C) Time/Place Signifiers
Direct Speech

Reported Speech

here
this
these
now
today
tomorrow

there
that
those
then
that day
the next day/ the
following day
the day before
the week before/ the
previous week
the year before/ the
previous year
the next year/ the
following year

Yesterday
Last week
Last year
Next year

___________________________________________________
D) Pronouns
___________________________________________________
Direct Speech

Reported Speech
singular

I
you
he/ she

he/ she
he/ she
he/ she
plural
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We
they
you
they
they
they
___________________________________________________
4. Read attentively the sentences below and turn them
into reported speech:
1. The CEO declared: Everybody must handle the reports
till tomorrow at 10 am.
2. The expert stated: The surveys reveal that at present
women are better educated than ever before.
3. Sophia confessed: For women with families it will
always be difficult to break the glass ceiling .
4. The journalist inquired: How many women have
reached in the companys top management positions this year?
5. Have you heard anything about the 50 most powerful
women in American business?, asked Paul.
6. The chairman informed the audience Next year the
government will allocate twice as much money to sponsor
educational programmes on gender equality.
7. The successful woman admitted: My mother taught me
to think positive and gave me a zest for life.
8. Bill said: Yesterday I read an article on gender
discrimination.
9. Did you know that last month HP named Fiorina Carly
as new president and chief executive?
10. The sociologist explained: Now women must
understand that they can win only if they make men their allies.

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14. Lesson Fourteen


CASE-STUDY: VODAFONE
Mobile phones have been a worldwide phenomenon. This
is a story of how technological breakthroughs have driven
enormous social changes: mobile phones impact on every aspect
of life, being indispensable items for teenagers and their social
lives, for anxious parents ensuring their kids can get in touch,
for small and big business alike to check on messages, and for
hosts of, as yet undiscovered, applications.
We all take for granted now the benefit of instant
communicability anywhere, but ten years ago this was a luxury.
The early handsets were large and cumbersome, and this
was a significant factor in slow early growth. But by the mid to
late-1990s the handsets were small and attractive, and the
network operators had achieved nearly 100 per cent coverage of
the land.
Since their introduction as a consumer item in the
mid-1980s, mobile phone sales have followed a classic S
shaped curve, which reached its peak in the late 1990s to early
2000s.
In the late 1990s the onset of pre-pay options triggered a
dramatic upturn in sales in what Geoffrey Moore, an IT guru,
calls a tornado of demand. By 2003 over 77 per cent of the UK
were signed up to a network.
On 1 January 1985 Vodafone made the UK's first mobile
call.
Vodafone is the world's biggest mobile network operator.
It has over 13 million customers in the UK, this being a market
share of approximately 32 per cent by revenue. It now has a
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customer base of over 100 million and interests in network


operators across 28 countries. It is said that about 1 in
100 people worldwide have a Vodafone mobile, making over
100 million calls daily.
Vodafone has a strong visual identity based on the colour
red and the Vodafone red and-white quotation mark logo. With
a turnover of over 4 billion, and a healthy operating margin of
typically over 20 per cent, Vodafone UK is in strong financial
shape to face the challenges of the next few years.
Even if Orange, its greatest competitor, won a host of
awards for its early brand-building efforts with its famous strap
line The futures bright, the futures Orange, it has done rather
less well since.
Vodafone has continued its business line that has been
aggressively focused on acquisition, since its very beginnings.
In 2003 Vodafones extensive products and services
included:
an extensive array of value handsets, including Sony
Ericsson T68I and Samsung A-300, sold in conjunction with
original equipment manufacturers.
ringtones;
a range of answering and messaging services, including
voicemail an automatic answering machine service;
very successful3G services offer to customers high
quality video services, this not to talk about gaming capability,
access to e-mail, news and entertainment services; the services
also include football highlights on a pay-per-view basis offering
video highlights of goals and interviews from top premier league
clubs.
new WAP services. Vodafones website describes
wireless application protocol as the technology that enables a
slimmed-down version of the Internet to appear on the screen of
a mobile phone. Its useful for travel information, sports
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headlines and e-mail.


GPRS services a new way of sending and receiving
information using a mobile phone. With a GPRS phone you can
be always connected to Internet services, whereas with
non-GPRS phones you have to log-in every time you want to
access information. The introduction of GPRS means that
accessing services like the Internet, WAP or your companys
Intranet, is quicker, easier and represents better value for money.
personal digital assistants: PDAs, or handheld PCs,
offer pocket-sized computing to anyone who needs their diary,
address book, e-mail and important files wherever they go.
texting services or SMS: Text messaging is the best
way to keep in touch when it's difficult to talk. Whether youre
in a noisy bar, on a crowded train, in a meeting or just don t
want to be overheard
a great variety of payment options and methods. For
example M-Pay. 'Vodafone M-Pay bill is a new way to buy low
cost items online by charging them to your mobile phone.
Anyone can use it all you need is a Vodafone mobile phone.
Whatever you want to buy, from games and ringtones to
business news and birthday e-cards, you can pay quickly and
easily using Vodafone m-pay bill.
(after Allan Tapp Principles of Direct and Database
Marketing, third edition, Pearson Education Limited, England,
2005)
Debate
1. Why do people use mobile phones?
2. Which is the world's biggest mobile network operator? Give
arguments to support your answer.
3. Which are some of the most important services offered by the
mobile network operators?
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Vocabulary Useful Words and Phrases


breakthrough a major achievement or success that permits
further progress, as in technology
host in computing, a host file, stored on the computer's
filesystem, is used to look up the Internet Protocol address of a
device connected to a computer network
cumbersome difficult to handle or use especially because of
size or weight
onset the beginning or early stages
to trigger to set off; initiate, provoke
WAP wireless application protocol
PDAs handheld PCs personal digital assistants
SMS' text messaging
3G services third generation wireless is digital and includes
but is not limited to such enhanced features as high-speed
transmission, global roaming and advanced multimedia access
GPRS services General Packet Radio Services and is one of
the latest advancements in mobile data. It is a GSM Packet
Based bearer for the delivery of data services. With GPRS you
only pay for the amount of information you download rather
than the duration of the connection.
1. Read the following sentences and decide if you agree
or not to what they state. Mark them with T or F
1. Vodafone has a strong visual identity based on the colour
red.
2. The WAP services represent the possibility to send
messages whenever you cant talk.
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3. Vodafone is the worlds biggest mobile network


operator.
4. On January 1999, Vodafone made the UKs first mobile
call.
5. Since its very beginnings, Vodafone has aggressively
focused on sales.
2. Read the following words and put them into the right
order so as to form coherent sentences:
1. Mobile, shaped, sales, followed, a classics, phone,
have, curve.
2. mobile, worldwide, have, phenomenon, been, a, phones.
3. the, were, cumbersome, handsets, early, large, and.
4. the, 3g, whether, with, to pay, was, people, could,
question, be, for, them, convinced.
5. it, said, mobile, that, a, worldwide, Vodafone, about,
100, 1, in, people, is, have.
3. Read the following statements and complete them
using the correct word or phrase; choose the most suitable
alternative a, b or c:
1. Mobile phones .have followed a classic sshaped
curve.
a) shopping
b) selling
c) sales
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2. In the late 1990s the onset of prepay options triggered


a dramatic ..in sales.
a) lift
b) raising
c) upturn
3. On 1 January 1985 Vodafone made the UKs first
mobile..
a) pager
b) calling
c) call
4. The company has a..of over 4 billion pounds.
a) number
b) business figure
c) turnover
5. Orange won a lot of .for its early brand building
efforts.
a) gifts
b) awards
c) benefits
6. Since its beginnings the company has aggressively
focused on
a) retention
b) acquisition
c) selling
7. Orange has always been Vodafones greatest .
a) enemy
b) adversary
c) competitor
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8. Oranges famous ...is: The futures bright; the


futures Orange!.
a) belief
b) strapline
c) verse
9. Text messaging is the best way to keep in touch when
its difficult to talk and you dont want to be
a) seen
b) discovered
c) overheard
10. Everyone can use the MPay: all you .is a
Vodafone mobile phone.
a) want
b) need
c) can get

Grammar Review: PHRASAL VERBS


__________________________________________________

Remember: A phrasal verb is a verb followed by a preposition,


an adverb, or an adverbial particle plus a preposition
or adverb that creates a different meaning from the
original verb.
Some of the most commonly used phrasal verbs are:
to bring about
to cause
to call back
to return a telephone call
to catch up (with) to reach the same position or level as someone
131

to drop by
to figure out
to find out
to give up
to hand in
to keep out (of)
to look after
to look up
to make up
to put off
to put up with
to run into
to run out (of)
to show up
to shut off
t to ake after
to take over
to take up
to turn off
to turn on

to visit informally
to find the answer by logic
to discover information
to stop doing something
to submit an assignment
not to enter
to take care of
to look for information in a reference book
to 1) invent 2) do past work
to postpone
to tolerate
to meet by chance
to finish a supply of something
to appear, come to
to stop a machine, equipment, light etc
to resemble
to take control
to begin a new activity
to stop a machine, equipment, light etc.
to start a machine, equipment, light etc.

____________________________________________
4. Read the following sentences and choose the right
alternative a, b or c in order to create grammatically valid
statements:
1. Everybody is amused seeing their advertising.
a) because of
b) about
c) at
2. Virginia is very satisfied her new mobile phone.
a) about
b) with
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c) of
3. The manager is very pleased the result of the
latest market survey.
a) of
b) at
c) with
4. Walter is extremely delighted his new mobile
phone.
a) with
b) of
c) about
5. Roger seems disappointed ..the services the new
mobile network operator offers.
a) by
b) with
c) of
6. Christine cant remember where she has put her glasses.
She looks very worried .it.
a) of
b) with
c) about
5. Read the following words and put them into the right
order so as to form correct statements:
1. annoyed/ the services/ people/ the constant/ GSM/ are/
with/ rises/ in the price/ of.
2. all/ James/ is/ very/ learning/ what/ he/ about/ the latest/
ICT/ can/ interested in/ technology.
133

3. the/ has/ appeared/ about/ Swedish/ screen/ is puzzled/


the/ new/ foreign/ language/ that/ on/ his/ computer/ scientist.
4. the complexity/ mother/ Wilmas/ is/ very/ by/ of the
wireless/ disconcerted/ technology.

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Bibliography
1.

Georgiana Gleanu-Frnoag, Sinteze de Gramatic


Englez, Lucman, 2000.

2.

B. D. Graver, Advanced English Practice, third edition,


Oxford University Press, New York, 1996.

3.

Michael Vince, Peter Sunderland, English Grammar and


Vocabulary with Key, Macmillan, 2003.

4.

A.S. Hornby, Oxford Advanced Learners Dictionary,


Oxford University Press, England, 1995.

5.

Isobel E. Williams, Manual de Coresponden, published


by TARACART SRL by copyright arrangement with
Chambers Harrap Publishers Ltd, 1998.

6.

Philip Kotler, Veronica Wong, John Saunders, Gary


Armstrong Principles of Marketing fourth edition, Pearson
Education Limited, London, 2005.

7.

Alan Tapp, Principles of Direct and Database Marketing,


third edition Pearson Education Limited, Great Britain, 2005.

8.

Gary Dessler, Management Principles and Practices for


Tomorrows Leaders Florida International University,
Upper Saddle River, New Jersey, third edition, 2004.

9.

Richard L. Sandhusen, Marketing, third edition, Barrons


Educational Series, New York, 2000.

10.
11.

OECD Observer No.254, March 2006.


Lawrence S. Ritter, William L. Silber, Principles of
Money, Banking and Financial Markets, seventh edition,
BasicBooks, USA, 1991.
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