BE1 – Vocabulary exercisesBE1 – Vocabulary exercises UPLOADANO NA: Translate the words into english: 1. ECONOMIES (gospodarstva) of the transition countries have undergone major

BE1 – Vocabulary exercises UPLOADANO NA: www.referada.hr

ECONOMIC ECONOMISE ECONOMICAL ECONOMICS ECONOMIST ECONOMY (ekonomski) (ekonomizirati) (štedljiv) (ekonomija) (ekonomist) (gosp.)

1. ECONOMIC

a) Relating to or involving economics,money,finance b) Which produces enough profit to make it worth counting with

2. ECONOMIST -someone who studies the way in which wealth is produced and used in area 3. ECONOMISE -to reduce the amount of time,money,goods etc.that you use,to save money 4. ECONOMY

a) The system by which a countr's goods and services are produced and used,or a country

b) A way of spending less money

5. ECONOMICAL

-using money,time,goods etc. carefully and without wasting any

6. ECONOMICS

-the study of the way in which wealth is produced and used


Sort out the words by coping them in the right column:

International theoretical keynesian booming healthy Black classical fragile Applied global -international

-booming

-healthy ECONOMY

-black

-fragile

-global

-theoretical

-keynesian ECONOMICS

-classical

-applied


Translate the words into english:

1. ECONOMIES (gospodarstva) of the transition countries have undergone major changes recently

2. ECONOMY (ekonomija) is the system by which a country's goods and services are produced and used

3. The ECONOMIC (ekonomska) situation in Croatia is very serious

4. ECONOMICS (ekonomija) is a fascinating subject to study

5. This production process is very ECONOMICAL (ekonomičan)

6. The Italian ECONOMY (ekonomija) is in big problems

7. A decrease in the ECONOMIC (gospodarski) growth was recorded last month

8. Some students study ECONOMICS (ekonomija), while others do bussines study


ekonomija ECONOMY

poslovna ekonomija BUSINESS ECONOMY

nadnice (plaće) WAGES

oskudni resursi SCARCE RESOURCES

obilje AFFLUENCE

znanstveni pristup ZNANSTVENI PRISTUP

ekonomski rast ECONOMIC GROSE

distribucija dohotka INCOME DISTRIBUTION

vanjska trgovina FOREIGN TRADE

ekonomska analiza ECONOMICS ANALYSIS

zanimanje OCUPATION

vjerojatnost PROBABILITY

ekonometrija ECONOMETRICS

radna snaga WORK FORCE

kućanstva HOUSEHOLD


Areas of interest to economist are: -politics -the stock market (burza) -business and label markets -international trade (mađunarodna trgovina) -demography -tehnological advance (tehnološki napredak)

Economists look for solutions to problems arising from the

movement of PEOPLE, PRODUCTS and CAPITAL.

They use economic MODELING and FORECASTING

techniques to research issues such as energy COSTS, INFLATION,

interests RATES, IMPORT and EXPORT volumes and EMPLOYMENT

trends.

Economists need to be able to collect DATA, to write up

their FINDINGS and RECOMMENDATIONS.


Economics

THE STUDY OF HOW INDIVIDUALS AND

GOVERNMENTS ALLOCATE SCARCE RESOURCES

IN AN ATTEMPT, TO SATISFY UNLIMITED

WANTS.

-People's wants are UNLIMITED!!

-The resources to satisfy these wants are LIMITED!!!

People and governments are willing to

exchange to satisfy the wants.


- I think that everybody should have some knowledge of

economics. Because, without this knowledge the dice of life are

simply loaded against you.

- Firstly, choosing my life's ocupation is the most important

economic decision I have made.

- Then, as a voter, I will make decisions on issues (on the

government budget,taxes and foreign trade)

That cannot be understand until I have mastered the

basic of economics.

- Economics covers all kind of topics.

But the core is devoted to understanding how ssociety allocates

its scarce resources.

- Economists study the way goods are produced and consumed

because people wants to consume far more than an economy can

produce.

- So, economics is the science of choice.

- It studies how people choose to use limited resources,to

produce various goods,and to distribue these goods for

consumption.


SECTORS OF THE

ECONOMY

EECCOONNOOMMYY iiss tthhee ssyysstteemm bbyy wwhhiicchh::

Wealth is produced and used

Money, industry and trade are organised

Goods and services are produced and used

1. PRIMARY SECTOR -extracting raw materials

2. SECONDARY SECTOR -manufacturing,turning raw materials into finished products


3. TERTIARY SECTOR -providing services

PRIMARY SECTOR it is based on:

Raw materials (sirovine) or natural resources

They can be:

o EXTRACTED (mining-rudarstvo, quarrying-kamenolom)

o GROWN (forestry,farming,breeding animals-uzg.životinja)

o COLLECTED (fishing)

SECONDARY SECTOR it is based on:

MANUFACTURING (turning raw materials into finished goods)

-there are:

CAPITAL GOODS- which help to make other goods

- help provide service

CONSUMER GOODS-straight to the final consumer

-consumables(potrošni materijal)-get used up (pencils,cans)

-consumer durables (trajna potrošna roba)-last longer

(TV,cars,fridges)

BUILDING & CONSTRUCTION

-utilities (komunalije)- water supply, gas, electricity

TERTIARY SECTOR includes services for:


BUSINESS (distribution of goods, warehousing, advertising)

CONSUMERS (hairdressing, restaurants)

BUSINESS + CONSUMERS

(banking,insurance,communication,post)

Which sector do they work in??

-business consultant- TERTIARY

-doctor- TERTIARY

-waiter- TERTIARY

-farmer- PRIMARY

-shipbuilder- SECONDARY

-fisherman- PRIMARY

-blue-collar worker- SECONDARY

-real estate agent(agent za nekretnine)- TERTIARY Raw materials are TAKEN from the ground and then either USED or TURNED into finished goods.


Before finished goods are sold, they often have to be DISTRIBUTED, TRANSPORTED, ADVERTISMENT, etc.

- Actually, there are 5 sectors of the economy which defined a

nation's economy. This are:

1. PRIMARY

2. SECONDARY

3. TERTIARY

4. QUATERNARY

5. QUINARY

PRIMARY – extract or harvest product form the earth

- Includes the production of raw materials and basic foods

- Includes activities such as:

Agriculture, mining, forestry, farming, grazing, hunting

and gathering, fishing and quarrying

- The packaging and the processing of the raw materials

associated with the sector is also considered to be part of this

sector

SECONDARY SECTOR of the economy manufactured

finished goods


- Activities that are included:

-metal working and smelting

-automobile production

-textile production

-chemical and engineering industries

-construction and shipbuilding

TERTIARY SECTOR of the economy is the service industry

- This sector provides services to the general population and to

business

- Activities:

Retail and wholesale sales

Transportation and distribution

Restaurants

Media

Tourism

Insurance and Banking

Healthcare and Law

QUATERNARY SECTOR consist of intelectual activities:

- Government

- Culture

- Libraries

- Scinetific research

- Education

- Information techonology


QUINARY SECTOR branch of the quaternary sector

- Includes the highest level of decision making in a society or

economy

- Activities:

Government

Science

Universities

Non profit

Health care

Culture

Media

ECONOMIC SYSTEM What every economic system must address??

WHAT to produce?

HOW to produce it?

(which resource combination to use?)

HOW to distribute it among the system's members?

EFFICIENCY (efikasnost,učinkovitost)

o The quality of doing something well and without wasting

time,money,or energy)


1. COMMAND OR PLANED

2. MIXED

3. FREE MARKET

PLANNED ECONOMY – government has a vital role

It plans and organises the whole production process

- Resources belongs to the state, and goods and services are

distributed by the state

- More equal distribution of wealth and income

- Production is for need rather than profit

- People are less motivated to work

- Standard of living is often lower compared with countries

which use other types of economic system

MIXED ECONOMY – economic system which have elements of

market and planned economy

- Some resources are allocated by the government (in the public

sector) and the rest by the market forces DEMAND and

SUPPLY (in the private sector)


- Role of government provides a minimum standard of living,

and ensure a fair competition

- Pruduction of public goods paid by taxes,but in private sector

production is for profit

MARKET ECONOMY

- Resources are allocated automatically by the forces of demand

and supply

- The role of government is limited (ensure a fair competition,

pass laws, the judiciary)

- Production is only for profit

- Unequal distribution of income

ECONOMIC ECONOMICAL ECONOMICS

TO ECONOMISE ECONOMY

ECONOMICS is the oldest in social sciences Strikes were damaging the country's ECONOMY It is usually more ECONOMIC to buy large quantities A decrease in the ECONOMICAL growth was recorded last month Many countries tried to ECONOMISE on fuel


off free market economy:

a) BETTER CHOICE

b) BETTER QUALLITY

c) LOWER PRICES

d) LOWER COSTS

LAWS LIMITED QUALITY DEMAND GOODS SUPPLY

MOTIVATED SERVICIES ALLOCATED STANDARD PRICES

COMPETITION VITAL RANGE NEEDS

- In market economies resources are ALLOCATED automatically by the forces of DEMAND and SUPPLY.

- Competition leads to lower PRICES, a wider RANGE of goods, goods and servicies are better QUALITY.

- The role of government is LIMITED: to pass LAWS, to provide certain GOODS and SERVICES and ensure fair COMPETITION.


- In planned economies government has VITAL role.

- Production is for NEEDS rather than profit, people are less MOTIVATED to work efficiency and the STANDARD of living is lower.

ALLOCATE RESOURCES

PAS LAWS

PROVIDE GOOD,SERVICIES

ENSURE A LEVEL PLAYING FIELD

PLAN PRODUCTION PROCES

ORGANIZE PRODUCTION

CO-ORDINATE PROCES


DISTRIBUTE GOODS

SUPPLY GOODS

MAKE PROFIT

Central/local – government

Unlimited – wants

Basic – economic problem

Free market/planned – economy

Market – mechanism

Level – playing field

Fair – competition

Public/private – sector

Income – distribution

Supply – and demand

Resource - allocation

CAPITALISM is based on private ownership and profit

TRADITIONAL ECONOMY early civilization has

it. It was based on farming and exchangive goods.

MANORALISM economic system in Western Europe

during the middle ages. The economy was based on lord manors

and state.


MERCANTILISM economic policy by which a

nations starts to export more than import

LAISSEZ FAIRE CAPITALISM Adam Smith

first describe Laissez faire capitalism in his book ''The wealth of

nations.''

COMMAND ECONOMY the opposite of supply and

demand economy. Government makes all economic decisions

(how much was something is going to be made, and for what price

is going to be sold)

TAXATION

-to tax is to impose a financial charge to a taxpayer by a state, such that failure to pay is punishable by law

TYPES OF TAXES


INCOME TAX (porez na dohodak)

CORPORATE TAX (porez na dobit)

TAXES ON PAYROLL AND WORKFORCE

TAXES ON PROPERTY (porez na imovinu)

TRANSFER TAX (porez na prijenos)

TAXES ON GOODS AND SERVICES

A TAX HAVEN is a state or a

country or teritory where certain taxes are levied at a low rate or not

at all, while offering good governance and a low corruption rate.

DIFFERENCES BETWEEN TAX EVASION

AND TAX AVODIANCE

- The difference between TAX EVASION and TAX AVODIANCE is very important


TAX AVOIDANCE includes different methods and strategies to lower the price of taxes

It is a perfectly legal method, which is used by a tax professionals to save their clients money

This method provides a lower tax liability It is much better option then tax evasion

On the other hand, there is a TAX EVASION, which is illegal practice

It involveds intentionally avoiding paying taxes that were owed, and provide higher tax liability

It will leave the taxpayer subject to fines in prison

PUBLIC SECTOR

COMPANIES are run & owned by the state. (central/local government) PUBLIC SERVICES – are financed from taxation

- It includes: national health


defence (the police,the army) education

PUBLIC ENTERPRISES – sold at a price, for profit

- it includes: utilities (electricity,water,gas) BBC, Bank of England, HNB British rail

ADVANTAGES DISADVANTAGES

-Natural monopoly in public -Bosses are politicians

ownership

-National security -Taxpayers pay for losses

-Profits benefits the whole -Local issues may be

Nation disregarded in favour of policies

MERIT GOODS

- Goods or services (such as education and vaccination) provided free for the benefit if the entire society, by a government, because they would be uderprovided if left to the market forces or private enterprise

PUBLIC GOODS

- Goods or services whose consumption is not decided by the individual consumer,


but by the society as a whole, and which is financed by taxation

- Public goods includes: Economic statistic National defense Parks (and other things for use and benefits)

- They are also provided to everyone by governments

MUNICIPAL ENTERPRISES (Komnualna poduzeća)

- Cemeteries

- Street cleaning

- Car parks, street lighting

- Recreation centers, stadiums

- Theatres, museums, airports

PRIVATISATION

Transfer of GOVERNMENT-CONTROLLED companies into PRIVATE OWNERSHIP

ADVANTAGES


Competition – which leads to LOWER PRICES

More choice, better quality

More new innovative products

Managers make decision freely

Growing number of shareholders

DISADVANTAGES

Laying off workers (otpuštanje radnika)

Concentrating only on PROFIT

Trade unions are not able to protect workers

State owned firms can only be sold once

ENTERPRENEURSHIP

ORGANISATION of production

- Aim of production – provide with the goods/services that people:

a) NEED (essential for survival) b) WANT (not necessary, make the quality of live

better)


FACTORS of production

LAND – fixed in supply

Geographical area

Natural resources

LABOUR – man's physical and mental contribution

(skills/knowledge)

CAPITAL –

a) Fixed – buildings,machinery, equipment

b) Working – stocks of raw materials, cash, bank

balance

ENTRERPRENEURS Start a business

Discover a profitable way of satisfying needs

Make choises. They are alert (oprezan)

They use imagination, which means that they are


Creative.

They see the possibility of:

NEW PRODUCTS

TECHNOLOGIES

PRODUCTION PROCESSES

FORMS OF ORGANIZATION

MARKETING

REASONS FOR START – UP :

INDEPENDENCE

KEEPING ALL THE PROFIT

CREATIVITY

USING REDUNDANCY(suvišan) MONEY


PROBLEMS:

SMALL INCOME

TAKING RESPONSIBILITY

WORKING LONG HOURS

DELEGATING RESPONSIBILITY WHEN GROWING

PERSONAL CHARACTERISTICS:

Hard working Resourceful Independent Willing to take risks Self-motivated Desire to succeed

MANAGERS -come from fairly conventional backgrounds (prilično konvencionalno podrijetlo)

-they are THE BRIGHT KIDS EVERYONE KNEW WOULD DO

WELL

-born ORGANIZERS

-rise through the RANKS to the top


ENTREPRENEURS

-likely to be AN AOUTSIDER A TROUBLEMAKER A REBEL (pobunjenik)

-drop out of COLLEGE TO GET A JOB -discover a FLAIR for business -get BORED quickly -masters of RISK-managment

ECONOMIC AGENT / BUDDING ENTREPRENEURS/ FLAIR

MARKET OPPORTUNITY / MARKET PENETRATION


- When you want to provide a new product or service MARKET OPPORTUNITY

- The attempt to increase sales, and get a large number of costumers MARKET PENETRATION

- Consumers, households, companies, organizations are ECONOMIC AGENTS

- Starting and promising entrepreneurs BUDDING ENTREPRENEURS

- He has a real FLAIR for investing on the stock market

PRIVATE SECTOR


The private sector companies are owned by

INDIVIDUALS or GROUP OF INDIVIDUALS or the

GOVERNMENT has a shareholding

-private sector includes business that are run for the benefit of the people who own them -contains almost all business

LIABILITY = responsibility to settle a debt

a) LIMITED LIABILITY -responsibility for debts to the values of the investment

b) UNLIMITED LIABILITY -the risk to sell personal assets/property to pay for business

debts

ASSETS


- Items of value:

Cash Land Buildings Machines Shares Jewelry

TYPES OF BUSINESS

ORGANISATIONS SOLE PRIPRIETOR / SOLE TRADER(unincorporated) PARTNERSHIP X & Y

(unincorporated)

PRIVATE LIMITED COMPANY ( LTD ) (incorporated)

PUBLIC LIMITED COMPANY ( PLC ) (incorporated)

SOLE PROPRIETOR


- The simplest form of business, because it needs a few legal requirements to set up

- One person is owner, and one person control and make all decisions

ADVANTAGES DISADVANTAGES -easily established -owner must bear all cost -no partners or shareholders of set up -tax profit stays with -unlimited liabilitiy for debts the owner -no opportunity to specialise -minimal governement -business ends on death regulation

PARTNERSHIP

- Type of business with partners as a owners - They control and make all decisions - It is financed by the CAPITAL OF OWNERS

ADVANTAGES DISADVANTAGES -more finance than the -unlimited liability for debts sole owner -partnership ends on death -each partner can specialize of any partner -easy communication

PRIVATE LIMITED COMPANY (LTD)


- Type of business in private sector with shareholders as a owners

- The Board of directors elected by shareholders control and make all decisions

ADVANTAGES DISADVANTAGES -limited liability for debts -more formalities to observe -opportunities for larger when setting up scale organisations -possible conflict between owners and management

PUBLIC LIMTED COMPANY (PLC)

- Type of business in private sector with shareholders as a owners

- The Board of directors elected by shareholders control and make all decisions

ADVANTAGES DISADVANTAGES -limited liabiltiy for debts -formalities and regulations -access to large amount of establishment of capital -increased separation of ownership and management -posibility of takeovers


DOCUMENTS FOR LIMITED

COMPANIES

1. THE MEMORANDUM OF ASSOCIATION (ugovor o osnivanju)

- A document with a NAME

TYPE OF BUSINESS

PREMISES

TOTAL SHARE CAPITAL

2. THE ARTICLES OF ASSOCIATION (statut-prava i dužnosti)

- a document with a POWERS AND DUTIES

ISSUE OF SHARES

SALARY AND APPOINTMENT


MANAGEMENT MANAGEMENT FUNCTIONS

1. PLANNING – which means making decisions and methods to achieve the objectives

2. CO-ORDINATING – integrating activities in order to form a united strategy

3. MOTIVATING – encouraging

4. CONTROLLING – supervising and checking

- Set objectives, leading, organising


TWO-TIER CORPORATE

HIERARCHY

1) Board of director -managers at the top, elected by shareholders -they look after shareholders' interests -CEO, COO, CFO -they make strategic decision:

Which markets to enter How to finance expansion Develop new products Take over new products by buying other

companies

2) Management team -the Chieff executive officer – the top manager -they are involved in day – to day operations -management team includes:

DEPARTMENTAL MANAGERS (Finance, Production, Marketing, Distribution,


Research & Development)

MANAGERS Set objectives

Analyse the activities

Select people

Form effective teams

Motivate

Train and develop their staff

''FAT CATS'' - A bad C.E.O. can ruin a company whit his

greed(pohlepa) and negligence(nemar)

- For them is all about the money.

- They are so focus on receiving proudction bonuses, that they will drag the company DOWN.

- They take the money and run, leaving to the next company before the damage is understood


COMPANY STRUCTURE Internal organisation of business, different ways of oragnizing work. INTERNAL ORGANIZATION DEPENDS ON: Type of business activity

(insurance, factory, hospital, college, supermarket...)

Size of business (small / medium sized / large)

BUSINESS PURPOSE: To maximise – PRODUCTIVITY CREATIVITY INNOVATION WEALTH


2 TYPES OF ENTERPRISES:

(SMS- small/medium sized)

1. SMALL FIRMS

- No departments

- No specialisation

- A wider range of skills

- Work more interesting and satisfying

2. MEDIUM-SIZED ENTERPRISES

- Company with less than 250 employees

- Annual turnover less than €50 million

- 2/3 (two thirds) of all private sector jobs


A COMPANY:

Consist of departments

Contains departments

Includes departments

Is made up of departments

Is composed of departments

Is divided into departments

PEOPLE ARE:

In charge of something Accountable to somebody Responsible to somebody Responsible for something


Supported by somebody Report to somebody

TYPES OF STRUCTURES HIERARCHY FUNCTIONAL MATRIX TEAM

HIERARCHY - Consist of CLEAR CHAIN OF COMMAND - In this type of structure, there are SUPERIORS and

SUBORDINATES - Responsibility passed on bosses - People at lower level (subordinates) can't take

important decisions - TREND:


Reducing the chain of command FLATTENING

FUNCTIONAL STRUCTURE (large manufacturing companies) -it includes:

PRODUCITON FINANCE MARKETING SALES HUMAN RESOURCES

MATRIX MANAGEMENT - People from different departments work together - People report to more than one superior


Project

Marketing

R&DSales

Finance

HRProduction

Matrix Structure

TEAM is - Wholly autonomous and temporary groups of people - Each person in team is responsible for the entire

project - They split up sfter successful completion

WIKINOMICS – the Internet

- Is the term originated from the words WIKI = QUICK (Hawaiian)


WIKI + economics Operations outside the company

RECRUITMENT Recruit=employ=take on=give a job=hire

SEARCH FOR EMPLOYEES


RECRUTIMENT PROCESS

Human resources department advertises the job in the appointment page of newspaper


Applicants apply for the job by sending a letter of applications and CV

The company draws a shortlist of candidates

Candidates are invited to attend on an interview

They must prepare themselves, research about the

company and arrive on time

After the interview, they wait for an answer

FRINGE BENEFITS (PERKS)

- Means BONUS (additional payment) - They consist of:

Free meals Use a car / mobile phone / house Free insurance Profit sharing Social facilities (sports clubs)

WORK & MOTIVATION


To motivate means to enspire, to give a reason to someone to do something

FACTOR THAT AFFECT WORK & MOTIVATION Individual differences

Job characteristics

Organisational practises

STRATEGIES FOR RAISING JOB SATISFACTION AND QUALITY OF WORK LIFE

- Improving work conditions and security


- Increasing the worker's responsibility

- Providing financial stability

- Enhancing the worker's sense of self – worth

- Providing opportunities for social relationship within the organisation

GOOD MOTIVATION RESULTS IN:

More productive enviroment

Higher competitiveness

Higher profitability

MANAGERS MOTIVATE:

- Good remuneration:


(salary, commission, bonuses perks)

- Sick pay / pension

- Good working relations and conditions

- Job security / job safety (enough light & space, clean, quiet and safe work place, and so on...)

- Promotion

- Challenging job

- Responsibility

- Contact with people

- Opportunities to travel

- Long holidays / vacations

1. MASLOW'S HIERARCHY OF NEEDS


- Motivation theories

2. Mc GREGOR – outlined 2 opposing theories of work and motivation Theory X assumes that people are lazy and

dislike work - and that they need discipline and control - managers are authoritarian

Theory Y assumes that people are motivated, they like work, and they can take responsibility -managers should trust them and help them do their best

3. HERZBERG'S HYGIENE FACTORS


- To keep workers contended, employers must provide: Clean, quiet and safe working conditions Adequate rest breaks Good labour relations Good wages and benefits Job security

- Motivators - encourage to do their best Praise from managers Career advancement More responsibility


LABOUR RELATIONS WORK RELATIONS AT THE PLACE OF WORK

- Job satisfaction comes form GETTING ON WITH others AT WORK:

a. WITH fellow employees (colleagues) b. WITH management

PEOPLE – the most important resource

-the most costly resource

THE MOST COMMON CONFLICTS:

The employers want to minimse wage costs

The employees want to achieve higher pay


TRADE UNIONS

REPRESENT PEOPLE AT WORK

- trade unions regulate the RELATIONS between employers and employees

- they protect the interest of their members

TRADE UNIONS AIMS: improve wages / working conditions reduce working hours protect full employment FIGHT FOR job security Provide benfits for those who are sick, retired,

on strike

TRADE UNIONS PROVIDE:

a. COLLECTIVE NEGOTIATING (pregovaranje) -talks between representatives of employees and employers

b. RESTRICTIVE METHODS -industrial action


TYPES OF INDUSTRIAL ACTION

1. STRIKE a) Official – with union approval (odobrenje) – strike is paid from members founds b) Unofficial

-WILDCAT – without union support (bez dozvole,rizican divlji)

2. OVERTIME BAN (zabrana) -workers refuse to work additional hours

3. WORK TO RULE -work according to the company rules, work is slowed

4. GO SLOW – reduction in the rate of production

5. PICKET -protest outside a factory, try to persude workers and delivery drivers not to enter

6. BLACKING – refuse to move machines


PRODUCTS Things / services that are produced for sale

PRODUCT CAN BE: Physical objects Services Leisure activities (slobodne aktivnosti)

People (politicans,sportsmen,actors) Places (holiday resources) Organisations (hospitals, colleges)

FOR SALE !!

PRODUCT LINES

- Groups of related products made by the same company

- In different sizes, models

PRODUCT MIX


- Combination of all products by the same company

BRAND

- Includes: NAME SYMBOL LOGO of the PRODUCTS DESIGN PACKAGING

BRAND NAME

- Type of product manufactured by a particular company

1) CORPORATE BRANDING -the name of the company on all products

2) INDIVIDUAL BRANDING -various products under individual brand names

ADVANTAGES OF BUILDING UP A BRAND

Costumers are willing to pay HIGHER PRICES Good brands are worth a lot of money You can do brand stretching

(extend to a new type of product)


COSTUMERS

There are:

LOYAL COSTUMERS (vjerni)

BRAND SWITCHERS


MARKETING

Presenting, advertising and selling a company's Products in the best possible way

GIVE THE COSTUMER WHAT THEY

WANT AND MAKE A PROFIT !!!

MARKET COMBINES:

- Market research

- New product development

- Distribution

- Advertising

- Promotion


- Product improvement

TYPES OF MARKET

1. B2C (Business – to – Costumer) -people buy for direct consupmtion

2. B2B (Business – to – Business) -organisations buy goods and services needed for the production of other goods or services Raw materials Manufactured components Capital equipment (buildings, machines, energy)


THE MARKET CONCEPT

- Make what you can sell - Find wants and fill them - Create new needs

THE SELLING CONCEPT

- Sell what you make

THE RIGHT PRODUCT:

IN THE RIGHT PLACE AT THE RIGHT PRICE AT THE RIGHT TIME


MARKETING MIX (elements of a market programme)

THE FOUR Ps:

1. PRODUCT 2. PRICE 3. PLACE 4. PROMOTION

If a firm gets them right, it will be easy to

sell the product !!


PRODUCT - Must fulfil some of the costumer's needs or wants

QUALITY FEATURES / FUNCTIONALITY STYLE / APPEARANCE BRAND NAME SIZE PACKAGING SERVICE / SUPPORT GUARANTEE / WARRANTY


PRICE - The price must be good value for money / not cheap

BASIC LIST PRICE DISCOUNTS LENGTH OF THE PAYMENT PERIOD CREDIT TERMS

-Market – skimming pricing – a high price for a new product before competition -Price elasticity – which people want to buy a product When its price changes -MARKET PENETRATION – a low price to sell larger Quantities

PLACE - The product must be available for sale in a

convenient place DISTRIBUTION CHANNELS


LOCATIONS OF POINTS OF SALE

TRANSPORT

INVENTORY SIZE

PROMOTION - Potential costumers must be aware that the product

exists ADVERTISING PUBLIC RELATIONS SALES PROMOTION PERSONAL SELLING

MARKET SEGMENTATION

- Means, who will buy and use the product - It refers to:


AGE – as an example, the teenage market SOCIAL CLASS

-class A (proffesionals -down to E (the unemployed)

LOCATIONS -as an example cities

CULTURE OR RELIGION -own unique products

ADVERTISING

Informs consumers about the existence and Benefits of PRODUCT / SERVICES

PURCHASES – INFLUENCED BY

ADVERTISING???

TO ADVERTISE = to inform in order to encourage People to buy or use the product ADVERTISER = a company or a person that advertises ADVERTISEMENT = a particular piece of advertising


ADVERTISING DEPENDS ON THE: MONEY –size of your advertising budget

SIZE – of your market – locally, nationwide, worlwide

TYPE – of the target market

FIRMS ADVERTISE FOR 4 REASONS: MAKE AWARE of new products

REMIND about existing product

PERSUADE to switch from rival products

IMPROVE the image of the business

HIRING AN ADVERTISING AGENCY

- The client company gives: 1. BUDGET – an amount of money

2. BRIEF – objectives of the advertising campaign


3. ADVERTISING STRATEGY – message / media

ADVERTISING MEDIA PRINT MEDIA – newspapers, magazines, brochures, journals BROADCAST MEDIA – TV, radio, cinema ENDORSEMENT – famous people speak on behalf of a product OUTDOOR ADVERTISING – posters, billboards DISPLAYS OF LOGOS – at stadiums, on chlotes, bags... WEBSITES – e-comerce, video games TRANSPORTATION – public transport, vehicles, stations stops POINT OF BALE – window displays,


product demonstration SKYWRITING SPONSORSHIPS – racing cars, championships, Sports events VIRAL MARKETING – information about products is Spread by people telling other People or sending on emails (BUZZ MARKETING)

Documents

BE1 – Vocabulary exercisesBE1 – Vocabulary exercises UPLOADANO NA: Translate the words into english: 1. ECONOMIES (gospodarstva) of the transition countries have undergone major