What’s Business? COMPREHENSION A P4 1. Production, distribution and sale of goods and services for profit. 2. The new definition involves three processes (production, distribution and sale) whereas the old definition only involves sale. The old definition only involves goods whereas the new one involves goods and services. Part two: Possible answer: developments in life, modern technology, appearance of new markets, open economy, e- commenrce…etc 3. Production involves changing materials into goods and creating services. 4. A car is moved from a factory in Detroit to a car dealership in Miami. 5. Goods are materials whereas services are not. 6. Profit. 7. Profit is the money that remains after all expenses are paid. B Page 5 2. F, the concepts and activities in business gave increased across time. 3. F, this is an example of distribution 4. T Vocabulary Exercises P5 Exercise B: 1. Good: Products 2. Conversion: change 3. For instance: for example 4. Distribution: Moving or transporting 5. Exchange: trade 6. On the other hand: however 7. Examine: look at Exercise C: 2. a. distribution b. distribute 3. a. produces b. production 4. a. are classified b. classification 5. a. convert b. conversion Page 6 Exercise 1 1. Line 4 It refers to business 2. Line 20, This factor: profit Exercise 2 Next: Summarization On the other hand: contrasting Therefore: summarizing Careers in Business Comprehension A P 12 & 13 1. Management, marketing, accounting, finance, Computers and data processing 2. Banker, financial analyst, stockbroker 3. General manager, personnel manager, production manager 4. Computer and data processing 5. Computer operator, computer programmer, system analyst 6. Marketing, researcher, advertiser, buyer, seller, distributer 7. Does the work interest you? Are there any areas of business for which you have aptitude or special capability? What are the opportunities involves, such as salary, chance for advancement and demand for the job? 8. Yes, the country supports business, the Saudi business is improving, business brings employment … etc Exercise B Page 13 1. B 2. D 3. A 4. D Vocabulary Exercises P 13 & 14 Exercise A 1. Advancement 2. Variety 3. Salary 4. Field 5. Suitable 6. Careers 7. Aptitude 8. Specialize in Exercise C Page 15: 1. Field 2. Specialize in 3. Various 4. Suitable 5. Aptitude 6. Salary 7. Demand 8. Advancement Exercise 5 P16 a. Management: the series of activities… b. Marketing: the movement of goods …. c. Accounting: the measurement and communication … d. Finance: the acquisition and utilization of capital e. Data processing: the handling of large amount of information… Answers The Four P’s COMPREHENSION A. P 29 1. What is marketing? marketing means the movement of goods and services from manufacturer to customer in order to satisfy the customer and to achieve the company's objectives. 2. Personal Answer 3. What are the four main elements of marketing? product, price, placement, and promotion 4. What’s involved in the product element of marketing? It involves a. research and development (R&D) of a new product, b. research of the potential market, c. testing of the product to insure quality, d. and then introduction to the market 5. What are the three pricing options that a company may take? a. Below the average price b. With the average price c. Above the average price 6. Answers vary 7. What does placement involve? Placement involves getting the product to the customer. 8. Do you think McDonald’s provide food on a wholesale or retail basis? McDonald’s provide food on a retail basis 9. Answers vary 10. Personal question B. p 29 1. The four main elements of marketing are popularly known as b. the Four P’s 2. The product element refers to d. the good or service that a company wants to sell. 3. Most companies price a. with the market 4. A common channel of distribution is e. Manufacturer→ wholesaler→ retailer →customer 5. The two major forms of promotion are b. Personal selling and advertising VOCABULARY B. P 30 Term Synonym/ definition Insure Guarantee Retailer One who sells small amounts to customers Price with the market Charge an average price. Option Choice Competitor Rival; opponent Personal Private; relating to an individual Objective Goal Satisfy Please Take place Occur, happen Channel of distribution The path goods take when moving from manufacturer to customer Charge Set a price Achieve Accomplish C. P 30 The most common channel of distribution is Manufacturer→ wholesaler→ retailer →customer. Distributions can, however, take place through slightly modified channels. For example, products are sometimes sold directly by the wholesaler or the manufacturer, rather than by the retailer. Generally, wholesalers charge lower prices than retailers and sell in large quantities. Together, these channels of distribution play a vital role in the placement element of marketing. The Target Market Vocabulary Nouns Strategy Verbs Determine Adjectives Potential Isolation Focus on correct Combination Marketing mix Direct Appeal to Target market Market research Habit Identification Attempt Match Mold Depend on Blend Reach Others In order to Comprehension A 1. What is the market mix? The combination of price, product, placement and production. 2. What do the elements of marketing focus on? The elements of marketing focus on the consumer. 3. What is the group of customers who will probably buy the product known as? The group of customers who will probably buy the product known as is known as the target market. 4. Why are the customers who make up the target market for a product known as “potential” customers? Probably because they are not known yet. Comprehension A Cont. 5. What does successful marketing mix depend on? A successful marketing mix depends on knowledge about consumers and their buying habits, gained through market research as well as correct identification of the target market. Comprehension A Cont. 6. Elements of marketing mix Price Promotion Consume r Placment Product Comprehension A Cont. 7. Why are the arrows two-way rather than just one way? Because the relation is two way. 8. Why are consumers in the center of the diagram? Because they are the most important factor that affects all other factors. Ex B p37 2.The company focuses on production in its marketing strategy. F: The company focuses on the four elements of product, price, placement and promotion in its marketing strategy. 3. Product and promotion combine to form the complete marketing mix. F: Marketing mix contains the elements of product, price, placement and promotion. 4.The company directs its marketing efforts towards the target market. T 5. The marketing strategies of product, price, placement and promotion are planned separately. F: Strategies of product, price, placement and promotion are blended to reach a chosen group of customers. Vocabulary A p 37 2. A successful company relies on good promotion to communicate with customers, _______ Answer: depends on 3. Comes into the homes Answer: reaches 4. Concentrate on Answer: focus on 5. Try to Answer” attempt Vocabulary A p 37 Cont. 6. Puts together Answer: Matches 7. Pans of action Answer: Strategies 8. To Answer: in order to Vocabulary B p 38 1b. When an employee joins a large company, he or she is given an ______card. Identification 2a. Advertising agencies are concerned with the _____ of a product. promotion 2b. Last week, the boss ________John because of his outstanding work in the accounting department. promoted 3a. In the market place, businesses _______ with each other. compete 3b. Sony is a major ______ of General electric. competitor 4a. The combination of the four Ps __________ the marketing mix. determines Vocabulary B p 38 4b. An accountant makes an accurate _________ of the expenses of the company. determination 5a. Strategies of product, price, placement and promotion are not planned in __________ . isolation 5b. The company doctor ______ the sick employee in the room at the end of the hall. isolated Exercise 1 P 39 Pronoun Line (in text) Referent This combination 3 Price, product, placement and promotion This group 11 The group of customers who will buy the product (Target Market) Who 11 Potential customers They 12 Market researchers