(1) ………………. Through the study of marketing one can realize just how important marketing is and how much it affects our life and the lives of other consumers. Its impact is even more dramatic as it affects our economy and ….. of living. Let’s look at the economic ….. of marketing to the economy and to consumers.
(2) ………………. Marketing plays an important role in an ….. because it provides the means for competition to take place. Marketing generates competition, which in turn fosters new and ….. products. In a competitive marketplace, businesses try to ….. new or improved products at lower prices than their ….. . Businesses always look for ways to satisfy customers’ wants and needs and to keep customers interested. This creates a larger ….. of goods and services. For example, personal computers have gotten smaller, lighter, more powerful, and less expensive. As more people use computers, this market continues to grow. Those efforts force them to be efficient and responsive to consumers. In addition, businesses look for ways to add value to a consumer’s ….. experience.
(3) ………………. Marketing activities increase demand, and this helps ….. prices. When demand is high, manufacturers can produce products in larger ….. . This reduces the unit cost of each product. This is because the fixed ….. (such as the rent on a building) remain the same whether the company produces 10 units or 10,000 units. When a company produces a larger quantity of a product, it spends less per unit on fixed costs. The company can ….. a lower price per unit, sell more units, and make more money.
When products become popular, more competitors enter the ….. . To remain ….., marketers find ways to lower their prices. Look at the DVD market. DVD players were ….. in 1997. Since then, there has been an explosion in the sales of DVDs and DVD players. Combination DVD/CD/MP3 players were very ….. products when they were introduced on the market, but now they can be purchased for less than $100.
(4) ………………. The functions of marketing add ….. to a product. This added value in economic terms is called utility. Utilities are the ….. of a product or service that make it capable of satisfying consumers’ wants and needs. There are five economic utilities involved with all products: form, place, time, possession, and information.
So, marketing is a key part of our economy because it supports competition and offers benefits to consumers.
Choose the headings to summarize the parts of the text. There are 2 headings that you don’t have to use:
Lower Product Prices.
New and Improved Products and Competition.
The Importance of Fixed Costs in Manufacturing.
Marketing in Economy and Consumers’ Lives.
Marketing Supports Competition.
Added Value and Utility.i
Pay attention to the meanings:
1. ‘Competing’ and ‘competitive’ are adjectives related to ‘competition’. Two companies may produce competing products – products that compete with each other. A competitive product is one that has real and specific benefits in relation to others of the same type.
price offers for a company in a takeover
products from different companies
companies offering similar products or services
technical ways of doing something
where a company is in relation to its competitors in terms of size, growth, etc.
the force that one competitor can bring to bear in relation to another
prices that are similar to or lower than those for similar products
something that one competitor may do to weaken another’s position
advantage / edge
superior products, performance, etc. that a competitor can offer in relation to others
a plan or plans for success in relation to competitors, and the study of this in business schools
2. Complete the sentences with words that can follow ‘competitive’:
1)He did not pay enough attention to the competitive ………. from Asia.
2)Businesses can succeed in the market by having some competitive ………. to keep them ahead.
3)For the money-conscious consumer, alternative retail outlets can offer food at more competitive ………. .
4)The firm will enhance its competitive ………. and boost its financial growth through the transaction.
5)Mall stores are under competitive ………. as more new discounters and superstore appear alongside traditional malls.
6)There are many books on management theory that promise to deliver the secrets of success. But there is no consensus on competitive ………. .
3. Complete the sentences with ‘competing’ or ‘competitive’:
1)A … activity is one in which companies or teams are competing against each other.
2)What is to stop … suppliers from secretly agreeing to keep prices high?
3)The weakness of the pound should give manufacturers a … edge.
4)Many firms are struggling to survive in a highly … marketplace.
5)The company can position itself in the middle of the … technologies.
6)We offer a wide range of goods at very … prices.
7)Many airlines now offer discounts in an effort to remain … .
8)The firm was the target of … bids from mining giants.
9)She has a reputation for being a fiercely … player.
10)The software is 25 per cent cheaper than … offerings.
4. Choose one adjective from each pair to make word partnerships with ‘competition’. Then use them to comment on industries or companies.
For example: ‘There is strong competition between Coke and Pepsi.’
· dirty/unfair competition
Match the verbs with the prepositions (where necessary) to make phrases with ‘competition’. Then make sentences using some of the phrases.
For example, ‘Our company welcomes competition – it keeps us alert.’
· Face up to
· Ignore with competition
· Welcome _
5. Fill in the gaps with the most suitable words:
1. In large towns you have to … with other outlets.
a) compete b) competitor c) competition
2. Product quality falls if there is no … .
a) competition b) competitors c) competitiveness
3. The two major tabloid newspapers … with each other for the best stories.
a) contest b) compete c) battle
4. … is a rival organization competing and offering similar goods and services.
a) supplier b) manufacturer c) competitor
5. There was a long …. for control of the publishing company.
a) rat race b) battle c) war
6. Area which surrounds a company (both physically and commercially) is called … .
a) sphere b) field c) environment
7. A manager with the responsibility to make important decisions is … .
a) executor b) executive c) execution
8. His restaurant is now so good that it … itself against some of the best in London.
a) fights b) contests c) pits
9. If you want the job, you’ll have … for it.
a) to compete b) to fight c) to contest
10. The leadership election will be … by four candidates.
a) rat race b) cut-throat c) rivalry
11. Their company was our main … for that share of the market.
a) competitor b) enemy c) rivalry
1. Study some interesting words about competition in the market: