Unit 6 PRODUCTS AND STRATEGIES

1. Unit 6 PRODUCTS AND STRATEGIES

2. Skills focus • Reading • locating key information in complex sentences • Writing • reporting findings from other sources: paraphrasing • writing complex sentences • Vocabulary focus • synonyms, replacement subjects, etc. for sentence-level paraphrasing

4. 6.1 Vocabulary A Study the words in the box. 1 Copy and complete the table. Put the words in one or more boxes, in each case. 2 Add affixes to make words for the empty boxes. (Some will not be possible.) 3 What is the special meaning of each word in marketing and business? 4 Find a synonym for each word.

5. 6.1 Vocabulary A Study the words in the box. cost (n) expense, overhead costly (n) money needed to make a product copy copied (v) a competitor may make a similar product (v) duplicate (n) the life of a product from its beginning to its end cycle cyclical (n) life-span design designed (v) create a product (v) develop extension extensive (v) try to make sales of a product last longer (v) prolong launch launched (v) put a product on the market (v) introduce marginalize marginal (n) money received for a product after expenses (n) profit (adj) a mature market is where the product is well known and sales are good maturity mature (adj) established

6. 6.1 Vocabulary A Study the words in the box. (n) a type of product; (n) an example of a new product which can be tested (n) version (n) prototype model modelled (v) decide what market segment a product is suitable for position positioned (v) locate (n) a point in the cycle where there are too many competitors in the market saturated saturation (n) oversupply stable (v) become stable stabilize (v) level off (n) the different sales periods through which a product goes stage (n) phase (v) the product is tried out to see if it works properly trial (v) test (v) remove (from the market) withdrawn (v) take a product off the market withdrawal

7. 6.1 Vocabulary A Study the words in the box. 5 Group the words in the box according to their stress pattern. cost, launch, stage copy, cycle, margin, model, stable, trial design, extend, mature, withdraw position saturate

8. B Study Figure 1 on the opposite page. Discuss these questions using words from Exercise A. 1 What does the diagram show? 6.1 Vocabulary The diagram shows the concept of the product life cycle. The vertical axis represents money and the horizontal axis represents time. As can be seen, a product goes through a series of stages over time and the unit cost, cash flow and sales vary with each stage. Development phase: ideas for a product are developed. A model may be designed and tested. Introduction phase: the new product is launched. Growth phase: people become aware of the product and start to buy it. So sales grow.

9. B Study Figure 1 on the opposite page. Discuss these questions using words from Exercise A. 1 What does the diagram show? 6.1 Vocabulary Maturity phase: the product is selling well, so competitors may copy it and start to sell their own version. The product has now become established and market has stabilized. Saturation phase: as more and more companies enter the market, a saturation point may be reached where there are too many companies competing for a share. Some companies leave the market because the margins are too small. Decline phase: in the final phase, fewer and fewer people buy the product until eventually it is withdrawn.

10. B Study Figure 1 on the opposite page. Discuss these questions using words from Exercise A. 2 What happens in each stage of the life cycle to: sales? unit costs? cash flow? 6.1 Vocabulary Sales: in the development phase there are no sales, obviously. After introduction, sales are few. Then they start to increase until the market is mature, when they level off. When the product is in the decline phase, sales fall.

11. B Study Figure 1 on the opposite page. Discuss these questions using words from Exercise A. 2 What happens in each stage of the life cycle to: sales? unit costs? cash flow? 6.1 Vocabulary Unit costs: to begin with, the company may have a lot of expenses (for promotion, distribution, adapting or buying production machinery, etc.) so the unit costs are high. As sales increase, the unit costs start to fall.

12. B Study Figure 1 on the opposite page. Discuss these questions using words from Exercise A. 2 What happens in each stage of the life cycle to: sales? unit costs? cash flow? 6.1 Vocabulary Cash flow: in the beginning cash flow is negative, which means that the company is spending more than it is earning. Although cash comes in from the introduction phase onwards, it takes some time before money from sales means that the company is earning more than it is spending and cash flow becomes positive. This happens during the maturity stage.

13. C Student A has written about the life cycle, but there are some mistakes. Change the red words, so the sentences are true. 6.1 Vocabulary 1 Cash flow is positive during the development phase. 2 In the development phase, unit costs are high. 3 Cash flow becomes positive in the growth phase. 4 Decreasing sales mean that unit costs are reduced. 5 Sales are at their peak once the market has declined. 6 Sales may start to rise when the market reaches saturation. negative introduction maturity Increasing stabilized/matured fall/drop/decline

14. D Student B has also written about the product life cycle. Match each sentence with a corrected sentence from Exercise C. 6.1 Vocabulary a It is not until the maturity phase is reached that cash flow is no longer negative. 1 Cash flow is negative during the development phase. b Peak sales figures are achieved at the maturity phase. 2 In the introduction phase, unit costs are high. 3 Cash flow becomes positive in the maturity phase. c While the product is being designed and trialled, there are many expenses but no income. 4 Increasing sales mean that unit costs are reduced. d There may be a reduction in business if there are too many competitors. e It costs a lot to produce each unit early in the cycle. 5 Sales are at their peak once the market has stabilized. f Once the products start to sell, the company can make them more cheaply. 6 Sales may start to fall when the market reaches saturation.

15. 6.1 Vocabulary E Look at Figures 2 and 3 on the opposite page. Which of the two product life cycles are most likely for these products? Why? ▪Diet Coke ▪ a DVD of a popular film

16. E Look at Figures 2 and 3 on the opposite page. Which of the two product life cycles are most likely for these products? Why? ▪Diet Coke ▪ a DVD of a popular film 6.1 Vocabulary These two graphs show extremes of product life cycle. Figure 2 shows a two-year development phase, a rapid increase in sales following introduction and an extremely rapid decline, but a low level of sales for a longish period – the likely product is a DVD of a popular film. Figure 3 shows a development phase of around three years, a rapid introduction and growth phase. The product is still selling well in a mature market. The likely product is Diet Coke.

17. F Choose one of these products. ▪ a child’s toy based on a film ▪ the iPod ▪ a new drug to treat obesity ▪ a CD of a popular song 6.1 Vocabulary 1 Draw its probable product life cycle. 2 Write some sentences to describe the life cycle of your product. 3 Give your sentences to your partner. Your partner should try to guess which product you have described. 4 Rewrite your partner’s sentences with the same meaning.

18. A Discuss these questions. 6.2 Reading 1 In the marketing mix, what is the most important element? 2 What do companies need to know about their products?

19. B Study Figure 1. 6.2 Reading 1 What type of product is represented by ‘cash cow’? A cash cow is a product which has a large market share in a stable market (i.e., one that is no longer growing). 2 Is a cash cow a good product to have in a portfolio of products? Why (not)? See text. 3 Suggest names for the other pictures. Star, problem child, dog. 4 What can companies use the Boston Matrix for? See text.

20. C Look at the illustration, the title, the introduction and the first sentence of each paragraph on the opposite page. What will the text be about? 6.2 Reading

21. D Using your ideas from Exercises A, B and C above, write some research questions. 6.2 Reading

22. E Read the text. Does it answer your questions? 6.2 Reading

23. F Study the highlighted sentences in the text. Find and underline the subject, verb and object or complement in each sentence. 6.2 Reading See Skills bank.

24. Skills bank Finding the main information Sentences in academic and technical texts are often very long. Example: Following the publication by Elton Mayo of the results of the Hawthorne experiments which took place between 1927 and 1932, some theorists looking at motivation in the workplace partly changed their ideas concerning the driving forces behind productivity in factories. You often don’t have to understand every word, but you must identify the subject, the verb and the object, if there is one. For example, in the sentence above, we find: subject = theorists verb = changed object = ideas

25. Skills bank Finding the main information Remember! You can remove any leading prepositional phrases at this point to help you find the subject, e.g., Following the publication … You must then find the main words which modify the subject, the verb and the object or complement. In the sentence above we find: Which theorists? =some of those looking at motivation in the workplace How changed? = partly What ideas? = ones concerned with driving forces behind productivity in factories

26. Skills bank Finding the main information Ellipsis Sometimes, if the meaning is clear, words are implied rather than actually given in the text. Examples: There were many strategies (which were) considered by such companies. Vodafone’s name was displayed on the football shirts and (Vodafone’s name was displayed) at the football grounds.

27. F Study the highlighted sentences in the text. Find and underline the subject, verb and object or complement in each sentence. 6.2 Reading an important part of what a company must do before it can draw up a marketing strategy to assess the potential success of its merchandise is to look at it on three different levels is One way to define a product intangible benefits which are an important part of what you buy the tangible product includes will also need to be aware of its probable life cycle (PLC). the company a company to plan its finance and manage its cash flow… Understanding the likely life cycle helps The best thing to do with dogs is to sell them off

28. G Two students paraphrased part of the text. 1 Which part of the text is it? 2 Which paraphrase is better? Why? 6.2 Reading Student B Having launched the product, it is important to monitor its progress through the life cycle. Have sales levelled off, for instance? It is possible that a reduction in sales means that the market has started to shrink. In this case, there could be a need for extension strategies to prolong the product’s life cycle. Student A A business needs to know where an item is in its life-span after it has been launched. For instance, when will sales fall? If sales drop, does this mean a decline phase? If so, the company should try to extend the life-span of the item. See Vocabulary bank.

29. Reporting findings Vocabulary bank You cannot use another writer’s words unless you directly quote. Instead, you must restate or paraphrase. There are several useful ways to do this:

30. Reporting findings Vocabulary bank When reporting findings from one source, you should use all the methods above. Example:

31. Reporting findings Vocabulary bank Important When paraphrasing, you should aim to make sure that 90% of the words you use are different from the original. It is not enough to change only a few vocabulary items: this will result in plagiarism. Example:

32. G Two students paraphrased part of the text. 6.2 Reading 1 Which part of the text is it? The first part of paragraph 4. 2 Which paraphrase is better? Why? Student B’s paraphrase is better, because it uses fewer of the words from the original text.

33. H Work in groups. Each group should write a paraphrase of a different part of the text. 6.2 Reading

34. A Study the words in box a from the text in Lesson 2. 1 What part of speech are they in the text? 2 Find one or more words in the text with a similar meaning to each word. 6.3 Extending skills adj likely, probable (3) n (U) products, goods, (2,3) adj physical (2) come with (2) v (T) n rate (5) usually n (U); here part of compounds cash flow and cash cow, so in adjectival position funds (3)

35. A Study the words in box a from the text in Lesson 2. 1 What part of speech are they in the text? 2 Find one or more words in the text with a similar meaning to each word. 6.3 Extending skills v (T) be aware of (3) n (U) income (3) v (T) assess, analyse (1) position (5) n (C)

36. B Complete the summary with words from Exercise A. Companies need to _________ their products. All ____________ comes with different types of benefits from the ____________ to the intangible. In addition, use of the product life cycle will help companies to ________ when they might need to invest_________ and when _________ will rise. Finally, portfolio analysis helps companies to __________ products with ________ market problems as well as those in a desirable ________. evaluate merchandise 6.3 Extending skills tangible identify cash revenue identify potential situation

37. 6.3 Extending skills C Study the words in box b. 1 What is each base word and its business meaning? 2 How does the affix change the part of speech? 3 What is the meaning in the text in Lesson 2? most important centre (n, C) – the middle ~al = adjective ending benefit 1. (n, C) – something good or useful that a product has; 2. (v, T) – have a good effect on; be useful helpful, useful, good ~(ci)al = adjective ending something extra added to a core product augment (v, T) – make something bigger ~ed = past participle ending, makes an adjective re~ = do something again ~ing = gerund form indicating the process of creating a brand brand (n, C) – the name which a business uses to identify a product as theirs. making a new brand

38. 6.3 Extending skills C Study the words in box b. 1 What is each base word and its business meaning? 2 How does the affix change the part of speech? 3 What is the meaning in the text in Lesson 2? putting the products in new packaging so that they seem to be a new version of the product package 1. (n, C) – parcel 2. (v, T) – make into a package for selling re~ = do something again ~ing 1. = noun ending: the materials used to make the package 2. = gerund ending: the process of making a package started to sell Omo again as if it was a new product launch (v, T) – put a new product on the market; begin selling a product re~ = do something again ~ed = past simple ending minimum (adj) – the smallest possible; can only be used in front of the noun, i.e., The minimum amount not The amount is minimum; sometimes a noun with of: a minimum of … ~al = adjective ending; difference from minimum: only an adjective, and can be used after be: The amount is minimal. very little

39. 6.3 Extending skills C Study the words in box b. 1 What is each base word and its business meaning? 2 How does the affix change the part of speech? 3 What is the meaning in the text in Lesson 2? produce profits profit (n, C/U) – money from business activity ~able = adjective ending advantage (n, C) – something that helps to bring a good result, especially compared to other people/companies ~ous = adjective ending desirable, beneficial

40. D Study sentences A–E on the opposite page. 1 Copy and complete Table 1. Put the parts of each sentence in the correct box. D As well as understanding its target markets, a company must be fully aware of the qualities of its products. A In the UK the name of the cleaning product which was previously known as Jif was changed to Cif. 6.3 Extending skills E Having taken these steps as part of an integrated marketing approach, the company saw a satisfactory increase in revenue. B Three of the many ways in which a product can be analysed will be described here. C You can also send text messages which are so useful that this benefit has played an important part in the speed at which the mobile phone market developed.

41. D Study sentences A–E on the opposite page. 1 Copy and complete Table 1. Put the parts of each sentence in the correct box. 6.3 Extending skills here Three of the many ways will be described in which a product can be analysed can also send You text messages 1. … which are so useful 2. … that this benefit has played an important part in the speed 3. … at which the mobile phone market developed.

42. D Study sentences A–E on the opposite page. 1 Copy and complete Table 1. Put the parts of each sentence in the correct box. 6.3 Extending skills As well as understanding its target markets, … a company must be fully aware (of the qualities of its products) a satisfactory increase in revenue. Having taken these steps as part of an integrated marketing approach, … the company saw

43. D Study sentences A–E on the opposite page. 2 Rewrite the main part of each sentence, changing the verb from active to passive or vice versa. Unilever/The company changed the name of the cleaning product to Cif. 6.3 Extending skills I/the author will describe three (of the many) ways (to analyse products). Text messages can also be sent. The qualities of (its) products must be fully understood (by a company/companies). A satisfactory increase in revenue was seen (by the company).

44. E Look at the ‘Other verbs’ column in Table 1. 1 How are the clauses linked to the main part of the sentence? Sentences A–C use relative clauses. D and E use participle clauses. 2 In sentences A–C, what does each relative pronoun refer to? A which = the cleaning product B which = ways C (1) which = text messages; (2) which = speed 6.3 Extending skills

45. E Look at the ‘Other verbs’ column in Table 1. 3 Make the clauses into complete sentences. A The cleaning product was previously known as Jif. B A product can be analysed in many ways. C (1) Text messages are (so) useful. (2) The text message benefit played an important part in the speed of development of the mobile phone market. (3) The speed of development of the mobile phone market was due to text messages. D A company must (also) understand its target markets. E The company took these steps as part of an integrated marketing approach. 6.3 Extending skills

46. A Make one sentence for each box on the right, using the method given in bold. Include the words in red. Write the sentences as one paragraph. Vodafone made a deal with Manchester United football club. Vodafone sponsored the team. relative, passive In 2000 6.4 Extending skills The football shirts displayed Vodafone’s name. The football grounds displayed Vodafone’s name. passive, ellipsis In the deal The fans had access to special mobile phone services. These services gave information about the footballers. These services gave information about the latest scores. relative, passive, ellipsis In addition Vodafone created new added value. Vodafone attracted a new range of customers. participle As a result

47. A Make one sentence for each box on the right, using the method given in bold. Include the words in red. Write the sentences as one paragraph. Possible answer: In 2000, a deal was made by Vodafone with Manchester United football club in which the team was sponsored/the company sponsored the team. In the deal, Vodafone’s name was displayed on the football shirts and at the football grounds. In addition, the fans had access to special mobile phone services through which they were given information about the footballers and the latest scores. As a result, having created new added value, Vodafone attracted a new range of customers. 6.4 Extending skills

48. B Study the notes on the opposite page which a student made about a case study. Write up the case study. Include the ideas from Exercise A. 1 Divide the notes into sections to make suitable paragraphs. Where should the paragraph in Exercise A go? 2 Decide which ideas are suitable topic sentences for the paragraphs. Which idea can you use as a topic sentence for the paragraph in Exercise A? 6.4 Extending skills

49. B Study the notes on the opposite page which a student made about a case study. Write up the case study. Include the ideas from Exercise A. mature market – maintain a competitive edge – how? ▪good e.g. of this situation = mobile phone market ▪ in UK mob. market: reached maturity v. quickly ▪ young people saw benefits of mob. phones v. quickly ▪ young people →do careful research to find best product ∴ hard to sell phones to ▪ ∴ new customers = challenge 6.4 Extending skills ∴ market leaders → v.careful planning of marketing strategies to retain market shares e.g.s of strategies used: – attract new customers – keep existing customers – increase brand awareness – + new services & technology = v. important for product-led mobile companies

50. B Study the notes on the opposite page which a student made about a case study. Write up the case study. Include the ideas from Exercise A. ▪ Vodafone = good example of product-led mobile phone company ▪ to keep ahead Vodafone had to: – continually update its phones before competitors – look at augmented product, i.e., what possible extra benefits or services to attract existing & new customers? 6.4 Extending skills answer → v. successful strategy = sponsorship (= controlling idea for the paragraph from Exercise A)