Language learning | English » Julia Fischer - EBC1, Keywords, Vocabulary, Collocations, Synonyms

Source: http://www.doksinet EBC1 Keywords, Vocabulary, Collocations, Synonyms Julia Fischer Source: http://www.doksinet Julia Fischer EBC1 Table of contents Unit 1 – Business Organisations: Aims and Activities . 2 Unit 2 – Business Organisations: Legal Framework . 4 Unit 3 – Corporate Management and Culture. 7 Unit 4 – Human Resources I: Personnel Management . 9 Unit 5 – Human Resources II: Industrial Relations . 13 Unit 6 – Business Transactions I: Inquiries & Offers . 16 Unit 7 – Business Transaction II: Orders & Contracts . 20 Unit 8 – Marketing I: Introduction and product policy . 26 Unit 9 – Marketing II: Price & Promotion . 29 Unit 10 – Marketing III: Distribution . 34 Dieses Dokument stellt eine Zusammenfassung der Keywords des „NEW Handbook of Business English“ sowie Vokabeln, Collocations und Synonyme die im Kurs EBC1 und auf learn@WU bearbeitet wurden, dar. Das gesamte Dokument besteht aus indirekten Übernahmen der Inhalte aus dem

Buch „NEW Handbook of Business English“. Direkt übernommene Inhalte sind durch „Anführungszeichen“ gekennzeichnet. Die Zusammenfassung deckt alle relevanten Keywords für den Lehrstoff EBC1 vom Sommersemester 2018 in zusammengefasster Form ab, jedoch wird keine Garantie für Richtigkeit inhaltlicher und grammatikalischer Art, sowie entsprechender Rechtschreibung übernommen. Obenaus, Wolfgang/Weidacher, Josef (2006): NEW Handbook of Business English. Keyword in Context. Wien: Linde Verlag Page 1 of 37 Source: http://www.doksinet Julia Fischer EBC1 Unit 1 – Business Organisations: Aims and Activities Business organisation – general Synonyms for business organisation are firms, businesses, business firms, companies. Concerns and enterprises are units with legal, financial and organisational framework. Don’t confuse business organisation with the word business establishment which are physical facilities like plants, factories, mills, offices and shops. Business

organisation – objectives (Unternehmensziele) The basic objectives are to produce output by combining and transforming and to sell this output at prices that covers cost (in the long term) to generate income for providers of risk capital. The difference to voluntary sector and non-profit organisations is that they are not purposed to make any profit. Important goal of a business enterprise is satisfying customer needs but also a growth rate/rate of return on capital invested. Subsidiary targets are sales volume, efficiency, employee welfare and prestige. Specific goals are the result of the balancing act between shareholders and stakeholders. Business communication (Wirtschaftskommunikation) Its an exchange of messages between customers, suppliers, banks, insurances, advertisement agencies, shareholders, trade unions, environmental organisations (all of them are counted to the external communication such as inquiries, offers, orders and complaints) and corporate communication as

internal one (e.g memos) It means the exchange of messages, to receive them but also the media to convey the messages. Media could be letters, postcards, telephone but also e-mails, fax and face-to-face communication. B2B – business-to-business B2C – business-to-consumer B2E – business-to-employees B2G – business-to-government F2F – face-to-face Stakeholder (Interessensgruppe) Former on its been stockholders but now stakeholders are the social group that are affected by the company’s activities. It includes employees, suppliers, costumers, the community and the general public. They don´t have to be financially staked in the business It’s the social responsibility of a firm sometimes even incorporated into management philosophies. Page 2 of 37 Source: http://www.doksinet Julia Fischer EBC1 Staff (Belegschaft, Personal) Synonym: personnel It means a group of people carrying out work normally used for employees in service businesses. By contrast, workforce is used

for blue-collar-jobs Supplier (Lieferant, Anbieter) Is a firm which is selling goods/services to other businesses. Sales1 (Gesamtumsatz) The total revenue derived by a firm in a specific period of time. Gross sales include returns, discounts and taxes. (also value sales to differ to volume sales) Sales² (Gesamtabsatz) Means the total quantity of products sold by a firm. (also volume sales to differ to value sales) Turnover² (Umsatz) Synonyms: total revenue derived by a firm, value sales Return² (Ertrag, Rendite) It is a ratio to measure profitability of economic operations. It enables to compare economic units of different sizes to make appropriate investment decisions. Other return concepts are return on sales or return on equity. Synonym in financial investments: yield, which is the total return to shareholders (relates the dividend and capital gain/loss to the price of the share) Law of diminishing returns – (Gesetz des Grenzertrags) means that additional units of a

variable input factor to a fixed input factor generates lower and lower outputs. Collocations: to achieve an objective to generate income to produce output, to sell output to cover costs to satisfy consumer needs to measure profitability to make a profit to take investment decisions to generate output(s) to calculate a percentage Page 3 of 37 Source: http://www.doksinet Julia Fischer EBC1 to be dismissed without notice to provide a wide range of services to appoint sb as head of a department to specialise in sth to raise funds to compete with someone to deal in sth to derive from a combination of inputs Synonyms: goals, targets, aims, objectives owners, members to add to, to supplement to define, to pin down Unit 2 – Business Organisations: Legal Framework business organisation – general Synonyms for business organisation are firms, businesses, business firms, companies. Concerns and enterprises are units with legal, financial and organisational framework. Don’t confuse

business organisation with the word business establishment which are physical facilities like plants, factories, mills, offices and shops. sole trader (Einzelkaufmann, Einzelunternehmen) A firm run by one person, so it is suitable for small businesses in retailing and particular trades. Also called one-man firm or sole proprietorship (AE). All capital is provided on the sole trader, he makes all the decisions and bears all the risks (unlimited liability). Advantages: flexibility, quick decisions, initiative in management, relative lack of legal formalities Disadvantages: difficult to raise additional capital, to expand business, responsible for everything In Austria and Germany this business form is more restricted by law because you have to own a Handelsgewerbe on your own account. partnership (Personengesellschaft) It is an association between two or more persons, who carry on a business to make a profit. It has no legal existence, but partnership is formed by tacit agreement

(stillschweigende Page 4 of 37 Source: http://www.doksinet Julia Fischer EBC1 Übereinkunft), formal partnership agreement (articles of partnership) which sets out the rights, powers and duties of the partners. Contents could be: “1. The name of the firm and the names and addresses of the partners 2. The nature of the business 3. The capital of the enterprise and the contribution to be made by each partner 4. The extent to which the partners are to take part in managing the business 5. The proportion in which profits or losses are to be shared 6. The amounts that the partners may withdraw for their personal use 7. The interest payable on loans and drawings 8. The duration of the partnership and the conditions under which it may be brought to an end. 9. Provisions for its dissolution” (Obenaus, Weidenauer 2006: 522) General partnerships – all members have unlimited liability, for active (managing) partners but also silent (sleeping) partners. It is possible that partners have

to meet more than just their own shares. An exception from that would be the joint and several liability In Austrian form a stiller Gesellschafter would be in a British partnership an undisclosed partner with limited liability. Limited partnership – two different types of partners: general partners with unlimited liability and some with limited (restricted to the amount of their contribution). There must be at least one general partner. LLP – limited liability partnership – all partners have limited liability but can take an active part in the firm. Advantages: ability to raise additional capital, duties and burdens of losses can be shared Disadvantages: the general partners` unlimited liability, to share profits company1 – general aspects (Kapitalgesellschaften) main form of businesses, in the US called corporations The capital is divided into shares and profits are normally made in the sectors of manufacturing, trading or provision of services. Members (shareholders UK,

stockholders US) share profits in accordance to their size of their holdings. The cash dividend is normally a percentage of the nominal value of a share. The company has a legal existence and is responsible for business assets and liable for debts and obligations. The shareholder is just liable in the height of the value of his shares. The company is controlled by the shareholders through voting particularly at the AGM (annual general meeting). The board of directors is elected by and accountable to Page 5 of 37 Source: http://www.doksinet Julia Fischer EBC1 the shareholders. There can be two types of companies some which are permitted to issue shares to the general public (like public limited companies (UK), open corporations (US) and Aktiengesellschaften (D, A). company4 – advantages and disadvantages advantages: continuous existence, independent of members free transferable shares easily sold without affecting capital or existence liability is limited to the issue price of

the shares, encouraged individual and institutional investors to put money into corporate equities, gives possibility to raise huge amounts for large-scale operations disadvantages: books must be available for general public, difficult to conceal business affairs directors/managers who control affairs aren’t accountable to real “owners” different kinds of interests between shareholders, directors/managers and workers lack of personal contact with customers/employees slow and inflexible decision-making corporation² (Kapitalgesellschaft, Aktiengesellschaft, Konzern) equivalent to British private/public limited company, is a publicly held corporation but also denoted as a group of companies corporation³ (wirtschaftliches Unternehmen der öffentlichen Hand) a public corporation created by an Act of Parliament, owned and controlled by the government share (Aktie) equal parts that divide a company’s capital, entitling the owner to a proportion of profits and giving him certain

rights like voting at the AGM equity shares/equities/ordinary shares issuing a company’s risk capital preference shares carry privileges deferred shares – dividends can be paid after all other shares class A shares – ordinary shares without the competence of voting The nominal value of a share is the amount shown on the certificate. Shares can be at par (zum Nennwert) or above par (in Austria its not allowed below par). bearer shares – not issued to a named person (bearer=Inhaber, Inhaberpapiere), passed on simply by delivery Page 6 of 37 Source: http://www.doksinet Julia Fischer EBC1 registered shares – recorded on the owners’ name in the companies’ book (Namenspapiere), transferable by indorsement (Indossament), by assignment (Übertragung) bonus shares – additional shares for shareholders, free of charge quoted/unquoted shares, fully-paid/partly-paid shares, industrial shares, property shares AE stock, BE share Collocations: to establish a firm to go bankrupt

to make a profit to meet debts to transfer shares to vote at general meetings to dissolve a partnership to raise funds Synonyms: to hide, to conceal to suffer from, to be prone to to reinvest, to plough back Unit 3 – Corporate Management and Culture management² (Unternehmensführung) It means all activities in running a firm. Particularly, preparing and making decisions and carrying them out. “1. Identifying, formulating and setting objectives 2. Planning – in long- and short-terms 3. Establishing and maintaining a suitable organisation with organisational structures and procedures. 4. Implementing – also compromises delegating, motivating, commanding 5. Controlling – means measuring performance, comparing results, taking corrective action 6. Communication with others 7. Establishing and maintaining external contacts, representing the organisation” Page 7 of 37 Source: http://www.doksinet Julia Fischer EBC1 There are some different management techniques such as

qualitative methods which includes management by objectives, management by results and management by exception. Quantitative methods are network analysis, simulation, linear programming, risk analysis and decision trees. A management style or style of leadership can vary from authoritarian to co-operative. Authoritarian means little confidence in subordinates, no employee participation in goalsetting/decision-making, motivation by fear, threats, punishment. Co-operatives motivate subordinates by participation, involvement and trust. It has more likely a continuous report of high productivity. management1 (Management, Geschäftsleitung, Führungskräfte) It refers to the group of people who control especially a public limited company or corporation. Managers are not like normal employees but rather represent the company’s owner’s interests. They are rarely members of trade unions. Senior management is led by the chief executive officer and his deputy working closely with the

directors’ board. Middle management many responsibilities are delegated to them Junior or lower management include bookkeepers and collection managers. organisation Here is meant the organisational structure. It describes the organisational units into which a business organisation is divided. A functional organisation means that every unit is responsible for a specific activity. A divisional organisation means that units are responsible for a group of products, a sub-group or a certain territory. line management (Linienmanagement) Managers (line managers, superiors) who are directly responsible for functional activities. Have authority over people working under them. Those report to them Staff managers aren’t line managers because they have the responsibility provide advice and assistant to line managers. staff² (Stab) People in a larger company who are not in the direct line of command but provide advice and assistance to line units e.g public relations, marketing research

departments Former is frequently reporting to CEO and latter to the marketing manager. corporate culture (Unternehmenskultur) Corporate culture is a new buzzword in management. Experts have realised that such organisations are living social organisms with individuals and groups with emotional needs, beliefs and attitudes. It describes the soft elements in a business organisation i e a set of basic values and beliefs. They determine its goals, structures, management style and interaction of people. It breaks the mould of traditional enterprises and leads to an entirely new era of business life. Page 8 of 37 Source: http://www.doksinet Julia Fischer EBC1 intrapreneurship (Unternehmertum im Unternehmen) Also, a new technique of management. Establishing venture groups with own development, production and marketing units with specific tasks within a large enterprise. Those units report to top management and are kept on a long leash, bypassing the complex corporate hierarchy.

telecommuting/teleworking (Telependeln) Regular employees working primarily off-site, either from home or from a satellite office but with a computer hooked up with the firm’s computer system. Has direct access to relevant company data and can transfer worked-up data back to the central office. Obviates the need to spend hours on travelling to and from work but also reduces opportunity for social contacts. That telecommuting makes it easier to square work-life-balance is a moot point. collocations: establishing and maintaining organisational structures and procedures motivating and commanding subordinates drawing up strategic and tactical plans communicating with members of the business organisation setting goals delegating responsibilities measuring performance representing the organisation to the outside to head a venture group – eine autonome Projektgruppe leiten to report to a superior – einem Vorgesetzten unterstehen to flatten the corporate hierarchy – die

Unternehmenshierarchie verflachen to appoint a CEO – einen Generaldirektor ernennen Unit 4 – Human Resources I: Personnel Management personnel management, HRM, PA (Personalwirtschaft) Management function which is responsible for recruiting, selecting, training, placing, promoting, rewarding, motivating, dismissing employees with an overall view. Personnel Management is an all-pervasive function performed by specialists but also other managing people like executives or foremen who are assisted, advised and guided by personnel managers in doing this. Taylorism/scientific management: purely monetary incentives, mechanistic view of human behaviour, emphasises on work measurement, employees are regarded as a form of input Page 9 of 37 Source: http://www.doksinet Julia Fischer EBC1 Human Relations Movement/Social Systems Model: setting store by motivation, job satisfaction, conflict solution, cooperation, worker participation, employees respected as human beings personnel

consulting (Personalberatung) Finding someone for a vacancy is a time-consuming and difficult task. Therefore, companies are availing themselves of outsourcing party of HRM to free internal management capacities. They use personnel consulting agencies particularly to enter a foreign market and hire local staff. The locally-based personnel consulting agency or office of an international agency knows how to word an appropriate job advertisement, what criteria apply in screening the received applications, interviewing the candidates or organising assessment centres. As recruiting i e an CEO is more complex, headhunters are used instead. Personnel agencies also may offer services like personnel development, training Because of exorbitant sums for top-notch consultants, some agencies recently switched to a contingency fee system (you pay if the agency succeeds in filling the vacant position. recruiting (Personalbeschaffung) internal recruiting – to find sb inside the company filling a

vancant position, may involves promotion of staff members shown promise (vielversprechend) external recruiting – means running job advertisements, enlisting help of governmentsponsored employment offices (AMS), private personnel consulting agencies, headhunters Selection process: 1. applications will be screened to eliminate obvious misfits 2. shortlist of candidates can be drawn up 3. shortlisted candidates are invited to an interview 4. candidates may undergo aptitude tests (Eignungstest), assessment centres 5. identify the ideal candidate by comparing the company’s requirements with the skills, attitudes and records of the candidates Recruiting activities conducted via the Net have grown by leaps and bounds (sprunghaft ansteigen). The reason, therefore, is mostly paperless job-hunting promotion² (Vorrückung, Beförderung) Describes the advancement of an employee to a higher position making an upward move on the career ladder. redundancy (Abbau von Arbeitskräften) The

dismissal of employees because there is no longer work for them caused by falling demand or rationalisation. Page 10 of 37 Source: http://www.doksinet Julia Fischer EBC1 contract of employment (Arbeitnehmervertrag, Dienstvertrag) It establishes a employee-employer relationship. A contract of employment includes the following terms: rate/basis of remuneration, hours of work, holidays, holiday pay, sickness, sickness pay, occupational pension, length of notice to terminate employment, rights in respect of trade unions matters and activities. Possible work schedules: full-time employment, parttime employment, flex(i)time, telecommuting, job-sharing Employers duties: pay agreed remuneration, reimburse employee for incurred expenditures (für angefallene Aufwände entschädigen), to indemnify him against any liabilities arising in the proper performance of his duties. (Schadenersatz für jegliche Haftungen die ihm aus seinen angemessen verrichteten Tätigkeiten entstehen). Employees

duties: to obey lawful instructions of his employer (gesetzmäßigen Anweisungen des Arbeitgebers folge leisten), to exercise care and skill in performing his tasks (sorgfälltig und fachmännisch die Tätigkeiten ausführen), to conduct himself properly (angemessene Durchführung) employee benefits (betriebliche Nebenleistungen/Sozialleistungen) Payments in cash or in kind additionally to the normal salary/wage. • • • statutory benefits – based on legal provisions, stipulated by law, e.g holiday with pay, pensions contractual benefits – given in your contract, e.g stock options voluntary benefits – can be easily withdrawn, e.g subsidised canteen, medical services, childcare labour turnover (Fluktuation, Fluktuationsziffer, Mitarbeiterfluktuation) Measures the stability or instability of a firm’s workforce. Method of calculation: Number of workers leaving the business in percentage of the average workforce in a period. High rate of labour turnover means unstable

workforce, low rate means stable. Businesses try to keep their labour turnover low because hiring and training new employees causes high costs. flexitime (flexible Arbeitszeit, Gleitzeit) Employees choose their daily arrival and departure times according to their needs. Flexitime can mean by the week, month or year which offers more flexibility for employees through credit hours. There are core periods during which attendance is mandatory and flexibands (employees can be present or not). Staff benefits: increases job satisfaction, quality of life, easier to square working life and personal needs Employer benefits: fewer short-term employee absences, higher productivity, more intracompany interaction Disadvantages: difficult co-ordination, complicates time-recording, overheads (Betriebskosten) may increase, reduction of overtime Page 11 of 37 Source: http://www.doksinet Julia Fischer EBC1 worker participation (Arbeitnehmermitbestimmung) Working people should be involved in

decisions affecting their working lives. Can be implemented at various levels: Shop-floor participation: workers engaged in production/distribution of goods to allow them greater freedom in organising their work Boardroom participation: Workers take part in consultations and decision-making through representatives called worker directors. Worker directors (Betriebsräte) are in Germany/Austria required by law as members of the supervisory boards of large companies. Worker participation is also seen as wider movement of industrial democracy. Vocabulary from course: job rotation – to get to know with different departments line unit – who advise sb staff unit – workers, get advise from sb recruiting – finding the right person for a position training/staff development – to develop staff’s expertise to promote – to give sb a higher position to dismiss – to fire sb, dismissal motivation/rewarding schemes – to ensure that employees like their work bonuses – typically with

money benefits – also social benefits instead of money (like a canteen, kindergarten) labour turnover – percentage how many employees leave a company and how many new come (G: Fluktuation) flexitime – there are core hours when everybody needs to be in the office and flexibands -> flexible hours redundancy – means there is no longer any work for this employee/not the fault of the employee/worker to be made redundant – to be fired but not the workers fault to be dismissed/to be given notice – to be fired cause of the workers default to leave/to give notice/to hand in your resignation/to resign – employee leaves on his own to act in good faith – to be sure that everything is right collocations: to work overtime Page 12 of 37 Source: http://www.doksinet Julia Fischer EBC1 to sign a contract of employment to pay in cash or in kind to square private and working life to increase job satisfaction to climb up the career ladder to enlist specialist help to pass down a

command synonyms: benefits – fringe benefits – employee benefits contract of employment – contract of service Unit 5 – Human Resources II: Industrial Relations industrial relations (institutionalisierte Arbeitgeber-Arbeitnehmer Beziehungen) It refers to the relationship between labour and management within the framework provided by government. It is concerned with collective bargaining, national or industrial wage rates, trade union recognition, incomes policy and related matters. In GB industrial relations are characterised by conflict and industrial action instead in Austria still puts a premium on negotiations and compromise. trade association (Fachverband) Organisation set up by firms in a particular industry for protecting the interests of its members and representing them in negotiations with government, trade unions or other trade associations. trade union (Gewerkschaft) These are voluntary associations of employees to protect interests in areas as wage rates,

working hours, working conditions, redundancies by negotiating with employers’ organisations or taking industrial action. They could also provide educational and welfare services but also support politicians and parties to motivate them to further the cause of labour on parliamentary level. Nowadays its granted to establish and join trade unions This right had been fought and was prohibited until 1824. craft union – combining workers in a craft industrial union – for particular industries according to other principles – i.e white-collar union Such individual unions can be affiliated in a national federation or umbrella organisation. Page 13 of 37 Source: http://www.doksinet Julia Fischer EBC1 Many basic rights enjoyed by workers wouldn’t exist without trade unions. Become more and more rigid, inflexible and undemocratic, therefore, they should be reformed and change their strategy, such as insisting on creating new jobs and on retraining (umschulen) or removal grants

(Zuschüsse) for their members. strike (Streik) Concerted stoppage of work as protest by workers against low wages, poor working conditions, redundancies, plant closures. It’s the most powerful weapon in industrial dispute It continues till workers demands are met or party to the dispute agrees on formal discussions/negotiations. Strike condoned by trade union is an official strike, not ordered by trade union is an unofficial strike or wildcat. Picketing – workers stationed outside a firm during an industrial dispute informing the public and dissuading workers from entering. work-to-rule (Dienst nach Vorschrift, Aktion „Vorschrift) A form of industrial action by workers slowing down operations by observing related regulations strictly and literally. Doesn’t constitute a breach of contract and is therefore a efficient measure of putting pressure on an employer. lock-out (Ausperrung von Arbeitern) Employers closing down their firms and preventing employees from performing

their work and earning money. Not usual in Austria but not unusual in Germany so that employers retaliate (sich rächen) against a partial strike. wage (Lohn) wider sense: refers to income derived from dependent employment narrower sense: applies to the income of blue-collar employees salary: not to distinguish with wage, derived frim white-collar employees wage – restricted to remuneration received for a standard working week earnings – include wages in addition, overtime pay, employee benefits nominal wages – expressed in monetary terms real wages – denote the amount of goods and services bought for a given nominal wage Wages represent the main source of income for the majority of working population and an important cost element for business organisations. It effects the standard of living of employees but also that of employers and the volume of investment. It’s a tug-of-war between employees and employers to push wages up or keep them down. Height of wages is decided by

demand for and supply of labour, the economic situation, profit margins, trade union power and policy, negotiation skills. Government is also a force to be reckoned with in setting minimum wages, imposing wage freezes (Lohnstopps einführen), mandating compulsory arbitration (Schiedsgerichte anordnen) Page 14 of 37 Source: http://www.doksinet Julia Fischer EBC1 wage systems (Lohnformen) time rates – hourly, shift or weekly rates, suitable for precision work and dangerous work, where speed would lead to lower quality, higher rejection rate or accidents, or where output is difficult to measure, time rates should induce employees to work carefully but may encourage loitering and idleness. piece rates – remuneration depends on the output produced within a given period task system of pay – based on a standard time allowance for a particular job, if he works quicker he gets paid better, bonus is paid for saved time, referred to as payment by results or incentive payments, purpose

is to induce employees to work harder, may become a dehumanising form of exploitation collocations: to take industrial action synonyms: strike – walk out unofficial strike – wildcat labor unions – trade unions Vocabulary from the course: industrial relations: relationship between employees and employers in a firm collective bargaining: negotiating contracts for employees industrial actions: strike, work-to-rule, go-slow trade association: (employer side) are set up by firms in a industry with the purpose of protecting the interests of its member. They represent members in negotiations with government & trade union (employee side). trade unions: the latter are set up by employees to protect the interest of its members, especially in areas such as wage rates, working hours, working conditions or redundancies. To achieve these goals, trade unions take industrial action. If necessary, they might be involved in organising strikes. piece rates: paid per quantity time rates: paid

per hours, could encourage loitering/idleness, suitable for precision and dangerous work work-to-rule – slowing the production down, working as the contract states, safe and efficient measure go-slow – working really slow, to stage a go-slow Page 15 of 37 Source: http://www.doksinet Julia Fischer EBC1 lock-out – action from the employers so that the employees can’t go to work/earn their wages, to lock workers out strike/walk out – not working at all, wildcat strike – not supported by trade union, to go on strike picketing – pickets are stationed outside a business to inform the public outside about the dispute Unit 6 – Business Transactions I: Inquiries & Offers inquiry (Anfrage) It is usually a letter which sends the prospective customer to a supplier, in which he simply, clearly and concisely states what he wants (e.g sales literature, price lists, samples) Firms adopted the practice of sending printed inquiry forms to eliminate the need for letters.

Businesspeople send inquiries to several likely suppliers to find best quality/price. There is no legal obligation for the inquirer. general inquiries: prospective buyer asks for general information specific inquiries: prospect asks for a detailed offer (includes prices, terms of payment and delivery), special requests for being granted a concessional price or exclusive selling rights should specify full details of requirements offer² (of goods) (Angebot, Warenofferte) The offerer declares his willingness (orally or written) to sell certain specific goods (on a specific price/terms). Offers are prepared on a printed form, submitted in response to an inquiry (solicited offer) or without one (unsolicited/voluntary offer). Content of an offer: price, quality, quantity, discounts, delivery period, terms of payment and delivery terms of delivery (Lieferbedingungen) Provisions in a contract for stipulating time, place and mode of delivering the purchased goods. These terms are normally

specified in standardised trade terms like INCOTERMS. INCOTERMS “INCOTERMS are a set of international rules for the interpretation of specified trade terms used in export sales. () The main purpose is () to help the parties to an international contract of sale o define the contract price more accurately. This is achieved by specifying the method of delivery, the duties of both seller and buyer, and the point(s) where these costs and risks pass from one party to the other. () Costs of the goods in this context means all costs incurred in getting them to the place of destination (). INCOTERMS do not determine the passing of title to the goods involved. () It is also important to note that the application of INCOTERM clauses is completely voluntary. () Contracting parties may adopt INCOTERM clauses as a general basis for their contracts, but they may also agree on particular variations of, or additions to, them.” Page 16 of 37 Source: http://www.doksinet Julia Fischer EBC1

Further details and examples S. 392ff C.IF – Cost Insurance Freight (named port of destination) “If an international contract of sale is based on this clause the seller must bear all costs and freight charges necessary to bring the goods to the named port of destination, and he must, at his own expense, procure marine insurance against the risk of loss or damage during carriage. The seller’s responsibility for the item sends when he delivers them on board ship into the shipowner’s custody at the port of shipment.” Further details S. 121ff DDP – Delivered Duty Paid (geliefert verzollt) The contract goods have to be brought to the buyer’s disposal at the named place of destination at the seller’s costs and risks. It’s the maximum obligation for the seller compared to ex works. He also obtains any important licence and import duties including the cost of customs clearance must be paid. The buyer’s primary duty is the acceptance of goods Ex works (ab Werk) The

sellers’ responsibility is to make the contract goods available at his premises but not to load them on a transport which represents a minimum obligation for him. The buyer must bear all risks and costs transporting the goods to the desired destination. F.OB1 – Free on Board (named port of shipment) “If an international contract of sale is based on f.ob terms, the seller undertakes to place the contract goods on board a vessel at the port of shipment named in the contract. The risk of loss of, or damage to, the goods passes from the seller to the buyer when they cross the ship’s rail.” Further details S. 325f terms of payment (Zahlungsbedingungen) Its purpose is to define the price, discounts, time, place and method of payment. The terms are negotiable and there are “quasistandardised” terms like payment in advance or cash with order which provides information on time of payment. 3/7 net 21 means that a discount of 3% is deductible on payment within 7 days. D/P means

documents against payment The buyer must pay when specified documents are handed over. discount1 (Preisnachlass, wie Skonto, Rabatt) Its defined as a reduction in a list or invoice price. Types of discounts: cash discounts, quantity discounts, trade discounts, seasonal discounts. cash discount (Skonto) When goods or services are sold on credit it should be an incentive for early payment. The cash discount may be deducted from the invoice price. Terms 2/10 net 30 means 2% discount within payment in 10 days and period of payment for full amount is 30 days. Page 17 of 37 Source: http://www.doksinet Julia Fischer EBC1 If a cash discount is offered but not taken it indicates a trade credit. Trade credits can be a very expensive form of short-term financing and it could be more profitable to take out a bank loan to effect early payment. quantity discount (Mengenrabatt) The more you buy the less you pay. seasonal discount (Saisonrabatt) It’s a price reduction to customers who order

during the slack season. Eg lower prices in tourism during the off-season, manufacturers enable better use of production facilities, retailers grant discounts to clear residual stocks of seasonal goods. trade discount (Handelsrabatt, Wiederverkäuferrabatt) It’s a discount granted to a specific class of buyers (wholesalers, retailers) for the performance in reselling the item concerned. Each percentage is remained on the amount after deducting the one before. This enables manufacturers to use only one price list and exercise control over pricing throughout the channel of distribution. cash² (prompte Bezahlung, sofortige Bezahlung) It indicates that settlement is effected within a few business days of delivery no matter which method of payment is chosen. cash with order (Zahlung bei Auftragserteilung) It’s a condition of payment which indicates that payment is settled before the seller parts with his goods and therefore eliminates the credit risk, so it’s a variation of paying

in advance. C.OD – Cash on Delivery (per Nachnahme) Payment has to be effected on the delivery of the contract goods. The carrier involved is entrusted to collect the invoice amount. The supplier can be sure that he receives payment for the items but he runs the risk of non-acceptance (costumer refuses to accept goods). sale on deferred terms (Zielkauf) It means that a supplier grants a credit to the buyer. The buyer is then able to pay a period of time after he got the goods. Clauses, therefore, would be our terms are net 30 The seller may also grant a cash discount if the buyer settles the invoice during the early part of the credit period. open account (offene Rechnung) It’s for customers who make regular purchases and settle the related invoices monthly or at another predetermined interval on agreed terms. The credit amount is usually limited and depends on the customer’s creditworthiness. The supplier provides with a statement of account the payable amount at the end of

the period. Payment is made by credit transfer, by cheque, by banker’s draft or by SWIFT transfer. Page 18 of 37 Source: http://www.doksinet Julia Fischer EBC1 The buyers’ obligation to pay is not evidenced by a negotiable instrument. This causes serious collection problems if the buyer defaults. That’s why it is a term offered to long time business partners with favourable business relations. down payment (Anzahlung) Means that a certain percentage of the purchase is paid on delivery, the balance being payable in instalments. In international trade transaction, it is a portion of the contract price paid to the exporter before delivery of the goods. instalment (Rate) This are mostly equal parts of a parted amount which are paid in regular intervals. Its especially used in connection with instalment plans or is applied to part payments on a debt. (interests can be included in the payments) instalment sale (Ratenkauf) Normally a percentage of the purchase price is paid as a

deposit while the rest of the price must be paid as instalments at stipulated intervals. creditworthiness (Kreditwürdigkeit, Bonität) It’s a person’s, company’s or country’s ability and willingness to pay debts in due course. It also measures financial strength and influences the amount of credit suppliers/lenders are prepared to grant. Credit rating is a formal scale where the debtor’s creditworthiness is assessed Collocations: to indicate interest to submit an offer to stipulate the port of destination to procure marine insurance Synonyms: offer – quotation creditworthiness – credit standing down payment - deposit quantity discount – bulk discount down payment - deposit sale on deferred terms – credit sale credit period – discount period Page 19 of 37 Source: http://www.doksinet Julia Fischer EBC1 Unit 7 – Business Transaction II: Orders & Contracts contract of sale Is a contractual agreement between a seller and a buyer for transferring the

property in goods for a consideration in cash. Property = rights of ownership Contracts of sale are just payable in money not as barter transaction (payment is made in kind). Contracts of sale needn’t be written but can be also made via telephone, exchange of letters or implicit. Normally a contract of sale starts with an inquiry. If the seller answers with a firm offer, it will result in a contract If he answers with an offer without engagement, the confirmation of the buyer’s order is required. “Contracts of sale are governed by national law.” But there are discrepancies between national sales law. To overcome this UN Convention of Contracts for the International sale has been made but has not been accepted by every important trading nation. firm offer (festes, fixes, bindendes Angebot) It is an offer bound on the offeror and firm unless it contains a clause to the contrary. The firm offer can be accepted from the buyer within a reasonable time and the terms stated are firm.

In Britain a firm offer can be changed or revoked by the seller until he received the buyer’s acceptance. In Austria it can be changed or withdrawn only with the buyer’s consent A firm offer is within the meaning of the law of contract, contrary to an offer without engagement. offer without engagement (freibleibendes, unverbindliches Angebot) It is not binding to the party submitting it. It is merely an “invitation to treat” and not in the meaning of the law of contract. An offer without engagement stated from the buyer may be accepted or rejected by the seller. order (for goods) (Auftrag, Waren-Bestellung) Its a request placed either in response or on the own initiative of a prospective customer. It can be made orally (confirmed in writing) or written and should contain the quantity, quality, colour, packing and price, terms of payment and delivery, etc. Trial order is a small quantity for testing purposes, normally made when a new supplier is chosen. Initial order would be

the first order placed by a customer with a particular supplier. Standing order is an arrangement and undertakes to deliver certain goods at predetermined intervals until further notice. An order placed against a firm offer results in a contract. Offers without engagement or offers, in which terms have been modified don’t give rise to a contract until it has been confirmed by the seller. confirmation (Bestätigung) A confirmation could be a business letter to confirm an offer made orally to reassure the offeree. If the seller is free to accept or refuse an incoming order the confirmation constitutes a formal acceptance of order and results in a contract. The confirmation repeats the essential Page 20 of 37 Source: http://www.doksinet Julia Fischer EBC1 points and indicates that the confirming person agrees to be bound. An acknowledgement, in contrast, merely informs the sender that a message is received. Page 21 of 37 Source: http://www.doksinet Julia Fischer EBC1

counter-offer (Gegenangebot) Is a statement by an offeree to refuse to accept the submitted offer, but willing to enter a contract on his own terms. It can be submitted either from both parties A counter-offer from a buyer is within the meaning of the law of contract. The seller can decide whether to accept it or not. If the seller receives an order he cannot meet he is also allowed to make a counter-offer or to decline the order. This is legally also if a firm order is accepted after the time limit has expired. A supplier won’t refuse the order outright but make a counter-offer by recommending substitutes. sample1 (Muster, Probe) A sample displays the same characteristics as the bulk and is sent to show prospective customers what the offered items are like but also to enable them to test the items. They also may be distributed free of charge by sales representatives or as promotion in retail establishments. Contracts of sale can be based on those samples, called sale by sample or

sale according to sample. Sample is mostly used for raw materials or finished goods Patterns are cuttings of textile. consignment1 (Warensendung, Posten) It is applied to a set of articles dispatched by a supplier at one time. In this meaning a synonym to shipment. consignee1 (Warenempfänger) Is the recipient of goods and can be private individuals, business firms or government agencies etc. consignor1 (Warenabsender) Is applied to a business firm sending goods to another firm, private individual etc. forwarding agent (Spediteur) Acts as an intermediary between a consignor/consignee and a carrier. “Acting either on the consignor’s or on the consignee’s instructions, the forwarding agent arranges, in his own name at on his client’s account, for carriage of the contract goods to the agreed place of destination. () the forwarding agent collects the items to be transported from the consignor, delivers them to the carrier, and () makes arrangements for transshipments.”

Transporting the goods from the consignor’s warehouse to the shipper he acts as a carrier. He can obtain lower freight rates by combining several small consignments from different customers. “Such a grouped consignment is addressed to a correspondent or branch office at the place of destination, which splits it up again and delivers the individual consignments to the various consignees. Forwarding agents have an international network of foreign correspondents or branch offices. He may also obtains the relevant shipping documents, takes out marine insurance, handles customs formalities, documentary and clean collections (einfaches Inkasso), special facilities for export packaging, warehousing and providing container services. Page 22 of 37 Source: http://www.doksinet Julia Fischer EBC1 carrier (Frachtführer, Verfrachter) A business or individual who transports the goods. Enters into a contract of carriage with a shipper to carry the specified goods from the place named to the

agreed place of destination. They may be classified into land carriers (rail/road carriers), air carriers, sea carriers and inland waterway carriers. acceptance (of goods) (Annahme von Waren) The buyer deemed to have accepted the goods. Taking delivery of goods on the other hand would mean that the buyer just takes over the items without indicating whether he wants to accept or reject the goods. In certain circumstances the buyers allowed to refuse acceptance (may because of a default). rejection (of goods) (Annahmeverweigerung) It means the buyer’s refusal or neglect to accept the goods delivered under the contract. Rejection and repudiation is just entitled if the seller failed to meet important contractual obligations. The buyer has to intimate to the seller if rejecting to accept goods He is allowed to keep the goods unless its agreed otherwise. A wrong rejection of goods is a breach of contract may be causing damages in GB but just a minor infringement (Obliegenheitsverletzung)

in Austria. It does not deprive the seller of his claim for the purchase Normally the seller tries to find another buyer and claims damages for any loss and costs incurred in this procedure. breach of contract (Kauf-Vertragsverletzung, Kauf-Vertragsbruch) It is an unexcused non-performance of a contract such as fail to perform or making performance impossible or giving notice not to fulfil the agreement in the agreed time. For example: seller fails to deliver goods, delivers wrong quantities or defective goods, items are not in accordance with their description, are not up to sample, buyer doesn’t accept the goods or fails to pay. Certain legal rights depending on the contract goods whether they are specific goods or fungible (vertretbar, ersetzbar) goods. Most common remedies for breach of contract: In case of non-delivery or non-acceptance the other party may sure for damages. In case of defective goods, it depends on if it’s a major or minor defect. In case of no-pay the seller

may sue for payment plus interest on the amount in arrears (Zahlungsrückstand). wrong goods (falsche Ware, Aliudlieferung, Anderslieferung) Delivered goods that are different in nature from the ones specified in the contract. Legally it entails the same consequences as non-delivery or delay in delivery and damages, specific performance or rescission (Rücktritt) of the contract can be claimed. defective goods (mangelhafte Waren) Items which have a major or minor defect. Major defect means that the defect prevents the buyer from using the goods. Minor defect means that its usable but has little for example scratches. Quantity can lead to a major or minor defect, too, depending on the contract Legal Page 23 of 37 Source: http://www.doksinet Julia Fischer EBC1 provisions governing the remedies differ from country to country. Major defect -> buyer can reject the goods, thus rescind (annullieren) the contract if reparation isn’t possible. Minor defect -> price reduction if

defect is irreparable. If a defect is repairable (both major and minor) the buyer can choose between reparation or price reduction. Another possibility, just possible with fungible goods, is to replace them. complaint (Mängelanzeige, Mängelrüge, Reklamation) Made by the buyer to the seller to express discontent. Usually communicated within a letter of complaint to say what’s wrong. It should contain the order number concerned, date of order and exact nature of the defect so that the seller can take appropriate measures to settle the complaint. damages (Schadenersatz, Vertragsstrafe) Remedies (Abhilfemaßnahmen) like money for a loss suffered. To put the injured party in the position like it would be if the contract had not been broken. Liquidated damages are fixed penalties for a breach of contract fixed before entering into a contract and represent the genuine estimate of the loss. Punitive damages are higher penalties than the expected loss Vocabulary from the course:

consignment – Warensendung shipment – Lieferung/Versand/Sendung forwarding agent – Spediteur carrier – Frachtführer/Verfrachter courier – Kurier (UPS/DHL) consignor – Absender consignee – Empfänger vehicle/lorry/truck – Transporter shipper – Versender (who pays for the transport) damaged goods – damaged in transit damage – Schaden (no plural) damages – Schadenersatzleistungen reimbursement - Rückerstattung Synonyms: contract of sale – sales contract – contract of sale of goods seller – vendor buyer – vendee Page 24 of 37 Source: http://www.doksinet Julia Fischer EBC1 liquidated damages – compensatory damages forwarding agent – freight forwarder grouped consignment – consolidated shipment Phrases for writing a complaint: must point out on checking the consignment the consignment had been shortshipped to dispatch missing goods immediately express delivery at our own expense as compensation for delay and other problems indicated a 25%

special discount as compensation reserve the right to take legal action Phrases for replies to complaints: Thank you for your mail relating to your order informed that the consignment contained wrong goods missing goods have been already dispatched greatly appreciate your willingness to retain wrong goods readily agree your suggestion of a special discount to immediately look into the matter to accept my sincerest apologies and for any inconvenience it may have caused can assure you that no such mistake will occur again thank you for your patience in this matter Collocations: to settle a complaint to take delivery of goods to accept goods to deliver goods in conformity with the contract Page 25 of 37 Source: http://www.doksinet Julia Fischer EBC1 Unit 8 – Marketing I: Introduction and product policy marketing (Marketing, Absatzpolitik) System to satisfy consumer wants and needs with the right programme of planning, pricing, promoting and distributing a firm’s goods while

achieving certain organisational goals. Market analysis means to analyse a potential market, find out needs and wants of prospective customers or identifying existing needs and creating new wants and desires. Market segmentation and targeting means to identify a suitable target group which a business firm can serve efficiently. The main elements of a marketing mix are the four P’s Product, Price, Place, Promotion. The whole business organisation requires to be subordinated to the marketing philosophy cause main business units take their cues from marketing. Modern marketing means to concentrate on consumer needs and wants, the product itself is regarded as tool to achieve this goal. Modern marketing was developed for customer goods with emphasis on retailing and now also applied to industrial goods and services. The outlined marketing concept leads to a misallocation of resources and quick lunches may satisfy short-term wants but neglect the social costs. Societal/Socially

responsible marketing tries to avoid these pitfalls. Marketing should also have an educational function but it’s a moot point if profit-oriented businesses can provide this meritorious. Non-profit marketing means that also governments, political parties, schools use marketing concepts for their relationship with their respective target group. But scholars think that it represents an unjustified encroachment on fields that aren’t amenable to business analysis. market segmentation (Marktsegmentierung) Marketing strategy to divide prospective customers into smaller sub-markets or target-groups based on geographic (territorial units like nations, states, regions, cities, neighbourhoods), demographic (age, family size, sex, income, education, occupation (Beruf), religion, race, nationality, social class), psychographic (lifestyle, personality) segmentation. Undifferentiated mass marketing – reaching as many customers as possible with one product range and one marketing programme

Market segmentation – tries to target on one specific segment and tailor its products accordingly Micro segmentation – target the small categorised groups precisely (precision marketing), using direct mail or telephone calls (direct marketing) product policy (Produktpolitik) It is the sum total of all decisions relating to a company’s offering. Which products to buy, produce or sell, to simplify or diversify the existing product range, identifying and developing new products (product innovation), decisions concerning the quality, branding, packaging. Page 26 of 37 Source: http://www.doksinet Julia Fischer EBC1 Decisions about using an umbrella brand, a brand for each product or concentrating on generic items. product mix (Produktmix, Produktionsprogramm, Leistungsprogramm, Sortiment, Verkaufsprogramm) It comprises the full range of offered products. Structured in breadth/width/depth of the range Product mix – emphasises strategic aspects, Product range – purely

descriptive Decisions are part from product policy like diversification or simplification of the product mix. It is essential for businesses to get close to an optimal product mix. product line (Produktlinie – bei Herstellern, Warengruppe – bei Händlern) Group or class of products possessing similar physical characteristics and are intended for similar uses. If a company carries only one product line its identical with its product range Depth of a product line is determined by the number of different items. product life cycle1 (Produktlebenszyklus) It denotes the typical pattern sales volume generated by a product over its span of life. Abandonment Exphttp://igbusinesss.blogspotcom/2011/05/chapter-19-marketing-mix-product-andhtml Exceptions would be, if the firm revives a declining brand by relaunching it or a product isn’t abandoned but stagnates at low level. (petrification) The product life cycle is a management tool to forecast, plan and co-ordinate the sales.

diversification (Diversifizierung, Diversifikation) It is a product policy that offers “new products for new markets”. Diversification should create additional sources of income independent of the existing ones. Dealing with lots of different, unfamiliar products can create management problems and to loss of control over costs. Thus, companies resort to simplification, concentrating on original products. Large product portfolios predominated the 1980s because companies diversified on a larger scale by Page 27 of 37 Source: http://www.doksinet Julia Fischer EBC1 acquiring other businesses and creating conglomerate groups. Now companies epitomise slogans like back to basic. branding (Markenpolitik) Branding is an element of product policy and should help potential and existing customers to identify products of a seller. Important cause of todays keen competition, self-service retailing and heavy promotional activities. A distinctive sign must become kind of an unwritten

guarantee. A positive brand image can be created by skilful advertising, pricing and standardisation, emphasising quality and reliability. manufacturers’ brands – created by the producers, the articles were distributed in a competing retail organisation retailers’ brands – branded goods exclusively sold by a particular retailer, to reap some benefits originally accruing to the producers, typically sold at lower prices, carry higher margins for retailer generic products – a product neither carries the producer’s nor the retailer’s label sold but just its generic name family brand – one brand for all products of a firm, strong brand name may be leveraged by extending it to other products It is also possible to have a separate brand for each line or product. Vocabulary from the course: marketing – getting your products sold product – which type of product to sell, how should it look like, packaging, market analysis price – pricing strategies, (low/high) prices

promotion – getting people to know about a product place – distribution, making sure your product can be bought market segmentation - demographic, psychographic, geographic segmentation micro segmentation – precision marketing, targeting specific groups of customers diversification – to add a new line to a product mix simplification – reducing product range, simplifying the product range, to focus on the core business product mix – also implies the marketing strategy but mostly used for “Sortiment” Collocations: to target a sub-market to identify a sub-market Page 28 of 37 Source: http://www.doksinet Julia Fischer EBC1 to gear product towards a to tailor your products for/to a to allow a product to petrify a product enters into the stage of maturity sales begin to level off sales stop rising to come up with new items to go upmarket (trading up) to go downmarket (trading down) Synonyms: introduction – launch retailers’ brand – own labels – private brands

– store brands – dealers brands generic products – no-name products family brand – umbrella brand – blanket brand Unit 9 – Marketing II: Price & Promotion price policy (Preis- und Konditionenpolitik) Price policy is complex cause of many variables involved and important for the survival of a firm in the long run. Cash-and-carry price means naked physical item picked up and paid by its buyer. A price can also include additional services like delivery, modification, installation, credit, warranty (Garantie) and price is the actual amount paid for after counts, discounts are made. Price policy is influenced by internal and external factors and be determined by the type of market the business operates in. Pure/perfect competition – sellers are simply price-takers. Monopolist – has discretionary power over prices, no competitors Oligopolistic markets – mutually recognised interdependence on the rival sellers’ price changes, few large firms Price policy means also to

react on the sensitiveness of the demand if prices are changing. External decisions would also be costumer perception and its tangible and intangible benefits, economic factors, government economic policy and the suppliers’ price policies. Government can control prices by freezing them for a period. Page 29 of 37 Source: http://www.doksinet Julia Fischer EBC1 Internal factors are the company’s objectives (what to achieve with a product e.g premium price) and costs. Internal goals can be current profit-maximisation, market-share leadership, product-quality leadership. Market-skimming pricing involves charging a high initial price and lower the price when competitors have moved in or to tap the lower end of the market. Penetration pricing is to set a low initial price to achieve a large market stare and maximum market penetration. Costs influence the price since no firm can afford to sell below cost in the long run. Other important pricing strategies: Psychology – Image

pricing is effective for ego-sensitive goods cause consumers perceive a high price with high quality. Prices ending with an odd number eg instead of 300€ use 299€ Pricing tools to stimulate and promote sales with loss-leader pricing, cash rebates, low-interest financing, longer payment terms, warranties and service contracts. Discriminatory pricing occurs to selling a product at more prices such as customer-segment pricing (“different customer groups are charged different prices for the same product), location pricing (different prices at different locations), time pricing (different prices in different seasons). Product-mix pricing would be a captive-product pricing (for goods requiring ancillary (ergänzende) products. Eg Printers sold cheap but toners exclusively for the particular printer are expensive. loss leader (Lockvogelangebot) Articles offered by retailers at a lower price than regular prices to attract customers. Should customers bring into the shop to purchase the

loss leader and thereby other goods. Is prohibited in some countries. premium5 (Spitzen-, Qualitäts-, Prestige-) Premium compound with price, quality or brand indicates that the price is above average and the product clothed in an aura of prestige. Heavy advertising can create and sustain a prestige image. promotion³ (Kommunikationspolitik) Its an exercise in persuasive communication, to persuade (überzeugen) and influence consumers to increase sales without resorting to price competition. Policy goal is to shift the price on a level in which the product can be sold at any given price. Promotion includes advertising, public relations, personal selling, sales promotion and direct marketing. promotional mix (Kommunikations-Mix) Combination of promotional tools like advertising, public relations, personal selling, sales promotion to inform, persuade and influence a target group. The structure is determined by the size of promotional budget, the market targeted, the product to be sold,

legal restrictions and technological progress. Consumer goods companies will try to force advertising in press Page 30 of 37 Source: http://www.doksinet Julia Fischer EBC1 or on TV, while industrial goods will be advertised in trade journals. Direct marketing is increased cause data processing enables to target their consumers more precisely. advertising (Werbung) Main purpose is to inform, persuade and influence the public/target group in modifying their behaviour. It involves dissemination of messages over mass media and is paid by an identified sponsor. Product advertising is geared to the goods offered by the advertiser and the institutional variety intends to create a favourable attitude and to build goodwill to the advertising organisation. Its also a social issue, which is argued as putting too much emphasis on persuasion to attempt influence on peoples’ consumer behaviour (not always beneficial to them). Mostly critics advocate stricter regulation of advertising

advertising medium (Werbeträger) All means of media to communicate to a chosen audience. Radio, television, the press, hoardings, the Internet is meant to be mass media. Direct mail, directories, fairs, exhibitions and motion pictures are lesser media. Advertisers have to select a suitable advertising medium but also a vehicle (radio programme, journal) and an advertising schedule (appropriate time running the advertisement). Optimum coverage – reach as many people from the target group as possible with a minimum loss of circulation. advertisement (Werbemittel, Inserat, Annonce) A message or announcement (ads, posters, electric signs, commercials, skywriting, doublespread/full page in newspapers, icons/banners/pop-ups on websites) presented in a media at the expense of an advertiser to persuade an audience to accept an idea or buy a product. They may compose pictures, drawings, text (advertising copy) but also musical elements such as songs, signature tunes, jingles. advertising

agency (Werbeagentur) Business firms providing services like implementing advertising campaigns, creating actual advertisements, arranging placements in appropriate media, sales promotion, direct marketing, test campaigns, preparation of sales advertising and market research. Departments in an advertising agency can be a creative department, media selection department and an account management department. Agency executive is called an account executive Jobs in creative department are creative directors, copywriters, commercial artists. Advertising industry has spawned enormous companies with international networks, working globally with subsidiaries and branches. public relations (Public Relations, PR, Öffentlichkeitsarbeit) To deliberate effort to establish and maintain mutual confidence between a business and its public. With public are meant the company’s stakeholders Firstly, public relations involves ascertaining and evaluating the publics opinion, thus advising the firm’s

manager on how to deal with the existing opinion and then influencing this opinion with communication techniques. Public relations department is usually reporting to top-level management, supplying the media with information, arranging press conferences, sponsoring cultural events, Page 31 of 37 Source: http://www.doksinet Julia Fischer EBC1 handling customer complaints and organising lobbying efforts to create goodwill and project a positive corporate image. personal selling (persönlicher Verkauf) Most important promotional activity, weighting in promotional mix varying from industry to industry. Mostly for products requiring demonstration and high value Sales force includes sales representatives, sales reps or sales engineers recruited, trained, scheduled and compensated by the entrusted executive e.g the sales manager Advantages are the involving of face-to-face contact with prospective customers, permitting to use customer feedback and, therefore, modifying the presentation

in mid-course. Personal selling tends to not only arousing interest but leads directly to a sale. sales force (Vertreterorganisation, Mitarbeiter/innen im Außendienst) Denotes the employees that are engaged in selling products. Could be also used for staff taking orders behind a counter but normally refers to those calling on prospective and existing customers like sales representatives, sales reps, commercial travellers, field executives and sales engineers. The sales force is usually entrusted to the sales manager who selects and trains them, assigns particular territories to them, fixes sales quotas, develops a call policy, digests information, fixes their compensation and evaluates their performance. trade fair (Messe) Events staged to enable the exhibition of products, to meet costumers, snoop on competitors. Is quite expensive for companies but they benefit on face-to-face contact with visitors, who may provide spontaneous feedback. Planning such an event includes selecting a

suitable event, contacting the organisers, obtaining the costs involved, investing in an individual stand or participating in a joint stand, choosing a favourable location at the fair site/in the fair building. Stand may be designed in-house or farmed out to stand designers or fair contractors but can also be rented from the event’s organisers as a shell-stand scheme. Displayed products have to be selected, packed shipped and staff has to be recruited and trained, as well as promotion literature has to be prepared. Erection (Aufbau), furnishing and final positioning may be supervised from the firm’s manager. During exhibition the polite and well-informed staff has to provide information, answer questions, drink with existing/prospective customers, to promote sales. After the fair the stand has to be dismantled and shipped back to home base Then an evaluation of number of visitors, amount of promotional literature distributed, volume of orders placed at the fair and follow-up

orders, has to be made. sales promotion (Verkaufsförderung) Its a collection of promotional tools subdivided into consumer promotion (special offers, free samples, premiums), trade promotion (dealer sales contests) and sales-force promotion (bonuses or contests). It tends to have a short-term focus like a price-cut as in-store promotional effort, supported by mass-media advertising. Standardisation is more difficult, taking the view of a global marketing perspective. Page 32 of 37 Source: http://www.doksinet Julia Fischer EBC1 premium4 (Werbegeschenk, kleine Zugabe) In retailing, premium refers to a small item given away like small plastic toys in cereal packages but also obtains to getting more valuable toys by sending a coupon detachable from its package. direct marketing (Direktmarketing) Direct marketing covers direct mail and telemarketing but also is regarded as a catch-all term for non-store/home retailing such as mail order, catalogue/TV retailing, electronic selling

seen as a special channel of distribution. Both expressions are characterised by microsegmentation and precision targeting. It involves using data from point-of-sale (Verkaufsstelle) data captures by EFTPOS (electronic funds transfer at the point of sale) systems or data acquired from outside/developed in house. Direct marketing is a tailor-made approach to access small target groups and adjust marketing accordingly. It avoids waste and enables better satisfying consumer needs while being even cheaper than personal selling. Internet marketing not always constitutes direct marketing. Direct marketing can be found in consumer goods and the service sector e.g frequent-flier programmes, direct banking, insurance operations Synonyms: promotional mix – marketing communications mix loss leader – leader items sales representative – sales rep – sales engineers billings – sales – revenues Internet marketing – online marketing – e-marketing skim-the-cream pricing -

market-skimming pricing penetration pricing – market-penetration Collocations: to reach a target group to attract the upper-end of the market to play on exclusive image to use celebrity endorsement to pursue a celebrity endorsement strategy to employ/use celebrity endorsement as promotional tool a celebrity endorses (product) for (brand) to act as a testimonial Page 33 of 37 Source: http://www.doksinet Julia Fischer EBC1 Vocabulary from the course: good-value-pricing: good mix between price and quality, right combination of good quality and fair price market skimming and penetration pricing are pricing strategies when launching a product good-value-pricing and premium pricing when the product is already established sales promotion: mostly short term celebrity endorsement: a celebrity acting in a spot (e.g George Clooney endorses coffee for Nespresso.) premium4 – a promotional tool premium5 – premium product/brand, premium quality, sold at a premium price point-of-sale

display: when a product is not just in a shelf in the market but also in a special sales stall (Verkaufsstand) Unit 10 – Marketing III: Distribution distribution (Distribution) Provides the link between production and consumption from the manufacturer to the final consumer but also marketing intermediaries in the channel of distribution, physical distribution and auxiliary services (Hilfsmittel) as banking, finance, insurance and promotion. It creates utility and adds value by making products available for the ultimate consumer. Decisions about channel of distribution concern about number and types of intermediaries while physical distribution focuses on selecting a suitable mode of transport. Nowadays the concept of distribution is, mutatis mutandis (nach entsprechender Anwendung), also relevant for the service industries. logistics (Logistik) Business logistics define the process of planning, implementing and controlling the costefficient storage of materials, goods, equipment and

in-process inventory (Bestand) also including recycling and disposal. It was first used in a military context also involving the movement and accommodation of people. Materials management the section upstream from the point of production regarded as manufacturing management and physical distribution as downstream from the point of production also classified as marketing activity. Tasks of business logistics are right product, at the right time, in the right quantity, in the right condition, at the right place, for the right customer, at the right cost. Important for economy are freight transportation, warehousing and inventory-carrying and managing the logistics systems. channel of distribution (Distributionskanal, Absatzweg) Is a set of marketing intermediaries between the manufacturer and the final costumer. Zerostage channel leads the producer directly to the final user (door-to-door selling) One-stage channel, there is one intermediary (retailer directly supplied by the producer).

Two-stage Page 34 of 37 Source: http://www.doksinet Julia Fischer EBC1 channel includes more middlemen like a wholesaler and a retailer. Decisions about the channel of distribution will affect total costs of a product and volume of sales. Long distribution channels will increase costs for the product. Volume of sales relates to quality and extent of intermediaries’ own marketing efforts. retailer (Einzelhändler, Detaillist) Retailing means selling goods to the final consumer. This can also be a manufacturer distributing door-to-door. For customers and analysts its difficult to determine between goods produced in-house and bought-in goods (procured from an outside supplier). Centralisation is only limited possible cause of the vast of millions of retailing outlets. Retailing is, cause of dependence on local preferences and tastes, mostly a national activity. But the pace of internationalisation quickened and the preferred method here to enter foreign markets is franchising.

Retail shops can be classified according to size (supermarkets, hypermarkets, neighborhood sores), type and range of goods (hardware, food, limited-line stores, department stores), selling method (mail order firms, catalogue operators, automatic vending machine operators), price (discount stores, upscale stores), ownership (independent stores, chain stores). Retailers are coming up with innovations as in-store boutiques, teleshopping, warehouse clubs, e-tailing (Internethandel). department store (Kaufhaus, Warenhaus) Large retail establishment offering a wide range of goods. The assortment of goods is separated into departments each under its own “buyer”. General activities like advertising, delivery and staff training are carried out centrally. Their selling point is one-stop shopping everything under one roof. Department stores may be independent or belong to a large chain stockist (Fachhändler, Fachgeschäft) Retail outlets carrying a restricted range of goods usually

specialised in a particular line of products and may be owned/belonged to a larger organisation. Characterised with low sales volumes they appeal to the costumer on high-quality products, personal service and after-sales service to offset higher prices. unit shop (Einzelgeschäft) Small, independent, owner-operated retail establishment which has only one outlet, facing heavy competition from large retail concerns. They hold on their own and eke out an existence because of advantages inherent in small-scale operations. Advantages: flexibility, absence of red tape, personal interest (mom-and-pop store), friendly atmosphere, personal service, convenient location (convenience store, neighbourhood store, corner shop), low overheads Disadvantages: low volume, higher prices, small catchment area, small number of customers, limited range of goods, low profits, low return on capital invested multiple store (Filialunternehmen, Filialist, Ladenkette, Filialkette) Two or more outlets centrally

owned and operated. Page 35 of 37 Source: http://www.doksinet Julia Fischer EBC1 Advantages: standardisation of shopfronts, store layouts, product range, advertising, displays, use of highly trained marketing specialists, lower prices, higher productivity Disadvantages: less flexible, less able to react to changes in local demand, meet competitors’ price reduction mail order (Versandgeschäft, Versandhandel) It is a system of retailing under which customers places an order by mail or by telephone and delivered home through post or parcel services. Shopping is done from a catalogue sent to prospective customers or shown by part-time agents. Mail order firms generally tend to move upmarket and create an upscale image. Method of payment can be COD (cash on delivery) but also by credit transfer or cheque, most conveniently using the credit card. Advantages: for the mail-order firms to use inexpensive off-high-street premises, unskilled labour work and so reducing operating costs.

For customers, the convenience of “fireside shopping”, easily getting credit Disadvantages: high costs of catalogue and advertising, need to hold large stocks, impossibility of changing prices, lack of personal contact Recently, wider concept of retailing additionally including teleshopping and interactive computer shopping. wholesaler (Großhändler, Grossist) It means any sale to a business customer or institution not intended for personal use (and mostly in large scales). Normally buys goods from manufacturer and sells to retailer (merchant) wholesaler buys and sells for his own account, wholesaling middleman acts for his principal’s account. Wholesalers also provide marketing services such as delivery, storage, credit, market information, personal selling, assembling and dividing. Wholesalers can be classified in the goods they offer such as general-line wholesalers (food), speciality wholesalers (frozen food), full-service or limited-service wholesalers. “Rack jobbers are

full-service wholesalers specialising in a particular line of goods. Recent developments are manufacturers bypassing wholesalers and selling directly to consumers. Synonyms: limited-line store – stockist channel of distribution – chain of distribution – marketing channel multiple store – multiple shop – corporate chain store intermediaries - middleman Vocabulary from the course: intermediaries: all between producer and consumer the more intermediaries, the higher the price for the customer, the higher the costs Page 36 of 37 Source: http://www.doksinet Julia Fischer EBC1 unit shop: exists only one store corner shop: small shop, but can be from a chain stockist: specialising in one type of products department store: different brands, but still one shop/retailer (german Kaufhaus), like Harrods, various floors, more upscale products hypermarket: quite big supermarket with a large scale of products, one floor channel/chain of distribution: mostly marketing distribution

Collocations: to act as an intermediary to disintermediate to take away an intermediary to remove an intermediary to add a wholesaler Page 37 of 37