SECTION 1.

THEME-BASED LANGUAGE KNOWLEDGE

5.1. KEY TERM DEFINITIONS

Task 1: Match the terms of strategic planning (A-J) with their corresponding
definitions (1-10).
A. Resource B. Strategic C. Competitive D. Competitive E. Supply chain
allocation acquisition edge threat
F. Portfolio G. Competitive H. Fairtrade I. Competitive J. Strategic
theory pressure force partnership

1. The series of people or organizations that are involved in passing products from the
manufacturer to the public E. Supply chain

2. A trading partnership based on dialogue, transparency and respect that seeks greater equity in
international trade H. Fairtrade

3. The way that resources such as finance, people, and assets are used to achieve a particular
objective A. Resource allocation

4. When two companies work together towards a specific goal J Strategic partnership

5. When a company buys another for its strategic purposes B. Strategic acquisition

6. The force that one competitor can bring to bear in relation to another G competitive pressure

7. Something that one competitor may do to weaken another’s position D. Competitive threat

8. Superior products, performance, etc. that a competitor can offer in relation to others and
which give it a lead over its rivals C. Competitive edge

9. The list of all suppliers, potential entrants, industry competitors, substitutes and buyers.I. Competitive
force
10. The idea that when demand for goods or services of one of the companies in the
conglomerates is weak, it would be compensated by stronger demand for those of other
companies in the group F. Portfolio theory

Task 2: Identify the essential elements in strategic planning based on the given definitions (1-
8) and the initial letters.
1. Organizations that are affiliated in some way to the P U__ B__ L__ __
I __
C
E C T O R
government of a country and provide services S __ __ __ __ __

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 ARKET
2. A group of consumers with similar needs or purchasing M __ __ __ __ __
desires EGMENTS
S __ __ __ __ __ __

3. A situation where there is only one supplier and no M O

__ __
N __
O __
P __
O __
L Y__
competition.
4. The activity of buying a company’s competitors in their S __ __ __ __ __ __ __ __
trategic
industry or companies in other industry in a series of A cquisitions
__ __ __ __ __ __ __ __ __ __
takeovers

5.2. VOCABULARY PRACTICE ON STRATEGIC PLANNING

Task 3: Choose the correct words with suitable verb forms to fill in the blanks.

A. battle B. sharpen D. spread E. formulate

G. communicate H. allocate I. harm J. pioneer

1. The Federal Trade Competition rejected the idea that the combined companies would
harm competition, noting that the two parties weren’t direct competitors.
_______
2. Consumers should welcome new entrants to the credit market because it widens their choices
sharpening
and lowers the cost of credit by _______ competition. tăng cạnh tranh
pioneers
3. When one company _______ a successful business, competition inevitably intensifies.
battle from both outside the organisation and
4. Organizations face constant pressures for _______
k có đáp án change trong bài tập nhưng trắc nghiệm chọn change
from within.
5. A mission statement is meant to _______ an organisation’s aims to customers, employees,
communicate
and shareholders.
formulating
6. In the process of _______ a strategy, a company will first assess its current situation by
performing an internal and external audit.
7. The company needs to establish specific targets or goals related to putting the strategy into
H. allocate
action, and _______ resources for the strategy’s execution.
spread (share)
8. The good thing about the licensing agreement is that we can _______ the risk.
Task 4: Complete each sentence with correct form of the word in brackets.

1. The manager was criticized for being too Eurocentric and failing to pay sufficient attention to
threat from Southeast Asia. (Threaten)
the competitive _______
2. A company may also own or buy its suppliers and customer companies in a situation or
process of vertical _______. (Integrate) integration

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3. Yahoo has been shouldered aside by Google, a(n) _______ in online advertising and strategic
innovator
planning. (Innovate)
followersso far, as they have been making things
4. A large number of companies have been _______
invented elsewhere more cheaply. (Follow)
implementation
5. Resource allocation is central management activity for strategy _______. (Implement)
6. In formulating a strategy, a company should look at its strengths and _______ in relation to
weaknesses
its competitors. (Weak)
9. There is an increasing demand for chocolate that is produced and sold through Fairtrade
_______, particularly in Europe. (Agree) agreements
10. A corporate strategy is _______ the highest strategic plan of the organization.
hierarchically
(Hierarchy)
Task 5: Choose the correct answer for each sentence.

1. His lawyers have argued that the transactions were completely above _______ and approved
by the other directors.
A. truth B. board C. fairness D. fact
2. As large chains such as J.C. Penny make _______ moves to stand-alone stores, what should
traditional shopping malls do?
A. defence B. restraint hạn chế C. strategy D. direction
3. The company set up the new office in Shanghai just two years ago and it’s already our most
successful _______.
A. integration B. corporation C. department D. operation
4. We try to get our _______ across to the customer at every opportunity.
A. philosophy B. technique C. barrier D. consensus
5. The organisation’s _______ statement is a useful starting point for setting realistic objectives.
A. perception B. mission C. assumption D. order
6. The company bought out one of its biggest rivals because it was part of their strategy to
broaden their _______.
A. customer content B. customer basis C. customer base D. buyer base
7. An important part of their strategic planning process is ensuring their _______ are used more
effectively.
A. goals B. assets C. infrastructure D. resources
8. The company is closing one of the plants because they want to concentrate investments on
the most _______ models.
A. cost-consuming B. profitable C. beneficial D. decisive

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9. You can read about the company’s goals and _______ in the company’s mission statement.
A. values B. resources C. beliefs D. turnover
10. Mall stores are under the most competitive _______ that they’ve been under in their 40-year
history, with new discounters and superstores increasingly moving in alongside traditional
malls.
A. encouragement B. prevention C. pressure D. exhaustion
11. BankOne will enhance its competitive _______ and boost its financial growth through the
transactions.
A. placement B. position C. location D. direction
12. If an industry has low entry barriers and is attractive because of its high ______ profitability,
there may be new entrants.
A. potential B. possible C. available D. realistic
13. The company’s acquisition of its rival led to customer defections, due to a _______ in service
quality.
A. decline B. downturn C. satisfaction D. expectation
14. The benefits of strategic planning include ensuring that all members of the organization are
working towards fulfilling _______ and that a company's resources are allocated as
efficiently as possible.
A. private objectives B. common objectives C. common deals D. private deals
15. We work closely with our client to establish the research _______, gathering information
about a product’s history and competitive position, the scale of the project and its likely
timescale and costs.
A. introduction B. brief C. summary D. note
16. Our _______ is to be earth’s most customer-centric company: to build a place where people
can come to find and discover anything they might want to buy.
A. expectation B. hierarchy C. outlook D. vision
17. Observers say Indian companies are ready to accept a lower _______ of return than western
companies in order to secure a strategic asset.
A. scale B. degree C. attribute D. rate
18. Corporate strategic planning is how an organization defines its _______ directions over a
year, three to five years or even longer.
A. present B. future C. past D. current
19. As their strategy is going nowhere, they decided to change their _______.
A. tip B. sector C. itinerary D. tactic

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20. The Chief Executive of Google is adamant that the _______, which allows engineers
freedom to create new products and services, will not change.
A. company dress code B. operation communication C. company culture D. operation habit
21. High-trust organizations benefit from better communications, higher efficiency, greater
employee commitment, and lower staff _______.
A. revenue B. turnover C. unemployment D. dismissal
22. Companies do need a strategy for growth in order to ensure a healthy recovery and gain a
competitive _______ over their rivals.
A. pressure B. price C. threat D. advantage
23. We need a new strategy because the world has changed, markets are unpredictable, and the
_______ is uncertain.
A. economic outlook B. strategic goal C. market leader D. market defence
24. The company needs to exploit their _______ by making the most of their distribution
network and loyalty programme.
A. positions B. details C. strengths D. edges
25. By the end of the strategic planning process, they should have a clear _______ of where they
want the business to go in the future.
A. direction B. injunction C. suggestion D. profitability
26. A company should try to have _______ plans for all the potential risks they can think of.
A. emergency B. accident C. contingency D. crisis
5.3. PASSAGE COMPLETION
PASSAGE 1
Read the passage and choose the correct words to fill in the blanks.
What is corporate planning?
Corporate planning may be described as the careful and systematic taking of strategic
(1)_______. In contrast to a short-term plan like a budget, a corporate plan is concerned with
taking a long-term (2)_______ of future developments and with designing a strategy so that the
organization can achieve its chosen objectives. Many large companies now recognize the
importance of adopting a formal (3)______ to developing a corporate plan. They prepare
'scenarios' or forecasts of future developments in the environment in which they wish to operate,
in order to (4)_______ whether decisions taken in the present will result in success in the future.
In recent years, companies have been developing more (5)_______ techniques with which to
analyze the risks involved in such decisions.
Consider, for example, an oil company deciding if it should invest in a new refinery.
Faced with this decision, involving the (6)______ of millions of pounds on something which
might have a life of 15 years or more, the company must have a sound basis for its decision. In
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this case, it needs to know whether it can be assured of a market for the extra volume of its
(7)_______ products, and it needs to know whether they can be produced profitably. In addition,
it is necessary to study the (8)_______ of crude oil and other supplies needed in the process.
Corporate planning, therefore, involves three main areas: determining the long-term
(9)_______ of an organization, deciding what market potential there may be and (10)_______ a
product policy to satisfy them.
1. A. advantages B. plans C. frameworks D. decisions
2. A. look B. appearance C. opinion D. view
3. A. attraction B. judgment C. approach D. solution
4. A. examine B. develop C. present D. deviate
5. A. modern B. sophisticated C. effective D. illustrate
6. A. outlay danh sách tiền vốn
B. outfit C. background D. cause
7. A. high-quality B. refined C. defective D. horizontal
8. A. utility B. attainability C. availability D. usability
9. A. objectives B. policies C. resolutions D. prospects
10. A. creating B. enacting C. securing D. formulating

PASSAGE 2
Read the passage and choose the correct words to fill in the blanks.
Mobile phones are changing the way we communicate forever. Today’s mobile phone
users are not using their devices just to talk. Now, the mobile phone is a (1)______ for news,
views and entertainment, a window into the world. Alongside the Internet, mobile phones have
become the great communication (2)_______ of modern times and, as such, are threatening to
revolutionize the world of marketing. Industry experts believe that the most successful players in
the (3)_______ marketing era will be those that best connect the power of the Internet with the
flexibility of mobile phone communication. The fact is that mobile phones have a number of
(4)_______ advantages over traditional media in advertising, and other marketing activities,
which, if leveraged, have the potential to make mobile marketing the most (5)_______ tool in the
modern marketers’ arsenal.
The extensive and increasingly data-rich subscriber profiles that mobile operators have at
their disposal are the sort of resource that marketers would be willing to pay good money to
(6)_______. One of these is the broad subscriber base that mobile operators often have at their
disposal. Such a resource is both a valuable (7)______ for the mobile operator and a powerful
and exciting tool in itself. One of the reasons is that phone operators have a much better
understanding of their customers’ (8)_______ patterns than traditional media owners. They can

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even identify the personal hobbies and character traits of subscribers through their use of
content-rich data (9)_______. This kind of resource makes possible the kind of precise customer
segmentation and niche market identification that most marketers can only dream of.
Teamed with this customer (10)______ precision is the ability of mobile phone operators
to use location-based advertising to hit their target audience right at the spot of the first sales
opportunity. On-site advertising can also be combined with information on the customer’s
personal interests and consumption preferences to create a truly precise real-time marketing tool.
1. A. material B. root C. router D. source
2. A. reference B. material C. medium D. basis
3. A. technological B. technical C. digital D. electrical
4. A. unique B. single C. pure D. only
5. A. obeying B. promising C. wording D. trading
6. A. access B. embellish C. exaggerate D. refer
7. A. liability B. loan C. asset D. contingency
8. A. acquisition B. consumption C. integration D. implementation
9. A. assumptions B. consumptions C. conclusions D. services
10. A. profile B. viewpoint C. direction D. provision

PASSAGE 3

Fill in the blanks with appropriate words to complete the passage.

Mind the gap: Managing customer expectations

The cause of most customer complaints can be seen as a (1)_______ between what they
were expecting and what they in fact received. Phrases such as “I’m disappointed” or “I did not
expect” abound in official letters of (2)_______. This means that much of a company’s
promotional activity needs to (3)_______ the management of customers’ expectations.
Logically, it can therefore be a good idea to (4)_______ customers from expecting too
much. Certain companies do manage to operate in this way; budget airlines are a clear example.
Their “no frills” label means that customers’ expectations are (5)_______ in return for cheap
fares. However, there are relatively few businesses which can use low prices like this. Most
businesses need to emphasize the (6)_______ of their product to attract customers, which must
lead to (7)_______ expectation.
Mismatch can also exist within a company between the (8)_______ set by management
for dealing with customers and what customers actually receive from staff. In this case, it is often
due to poor training or inappropriate technology. The whole issue has been investigated by

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Parasuraman et.al, who identify a total of four possible gaps between expectations and
(9)_______, and the causes of each one.
Another issue is that customers’ expectations are not only created by the company in
question. People have natural tendency to make (10)_______ and feel aggrieved if others have
obtained more for their money. This means that when new products enter the market, they set a
new benchmark for customer expectations.
1. A. mismatch B. contract C. disagreement D. opposition
2. A. application B. resignation C. complaint D. credit
3. A. incorporate B. perform C. accompany D. involve
4. A. disregard B. discourage C. disconnect D. discharge
5. A. received B. repeated C. reduced D. restructured
6. A. merits B. attributes C. itineraries D. monopolies
7. A. agreed B. raised C. enlarged D. targeted
8. A. features B. requirements C. levels D. standards
9. A. reality B. existence C. truth D. actuality
10. A. profits B. viewpoints C. comparisons D. complaints

PASSAGE 4

Fill in the blanks with appropriate words to complete the passage.

Faced with a bewildering choice of coffee brands, today’s (1)_______ would do well to
investigate a little deeper in order to make their choice more informed. The cup of coffee they
are enjoying in any one of a chain of high street coffee (2)_______ has almost certainly been
imported – most of the world’s coffee is grown by a small number of countries, such as Brazil, or
in Africa: Burundi, Kenya and Ethiopia. At each step of the way, despite being a single
(3)_______ commodity, its value has increased dramatically. Involving different (4)_______ of
transport and necessitating transportation across continents and oceans, this product has a
surprisingly complex supply chain. The person responsible for (5)_______ each stage in the
supply chain process is the Logistics Manager, who needs to handle the entire process. This
manager’s job involves overseeing the transportation of the coffee from a major (6)_______
distribution center to a port, from where the commodity is shipped abroad for processing,
packaging and local distribution by one of the large roasting companies. Here the product is
sorted and redirected to the next place in the supply chain. The key point is that the industry is
largely vertically (7)_______; in other words, a small number of powerful operators control each
stage in the supply chain process after the coffee is initially (8)_______ from the grower. And
the most likely to receive the least money in the chain are those at the (9)_______: the growers
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and harvesters. These include in particular those smallholder producers who grow 70% of the
world’s coffee, which they do on tiny farms of less than 25 acres. If the coffee is (10)_______
fair trade, however, minimum standards of personal and environmental welfare apply, meaning
those powerful operators are less welcome. Buyer beware!
1. A. marketer B. consumer C. dealer D. retailer
2. A. consumers B. buyers C. ventures D. creditors
3. A. buyable B. enjoyable C. considerable D. tradable
4. A. codes B. modes C. tactics D. factors
5. A. overseeing B. guarding C. protecting D. adopting
6. A. domestic B. inbound C. regional D. indoor
7. A. transported B. developed C. assisted D. integrated
8. A. purchased B. achieved C. invested D. formulated
9. A. least B. end C. bottom D. best
10. A. classified B. certified C. identified D. modified

5.4. READING COMPREHENSION

PASSAGE 1
Read the passage and do the tasks below.
Strategy is about developing competitive capabilities and finding a competitive position
within the marketplace. In international markets, the competitive capabilities that the firm has in
one country may not be the same as those it has in another country: equally, the competitive
position a firm adopts in one country may be different from that held in another. For example,
McDonald’s is regarded as a standard fast-food brand in its native USA, but in India and other
emerging markets it is marketed as a premium brand. Interestingly, India is one of the only
countries in the world where McDonald’s doesn't sell hamburgers, Big Macs or any other beef
products. Being a predominantly Hindu country where the cow is sacred, this would offend
cultural sensitivities.
Firms wishing to enter a given overseas market will need to consider the same
environmental factors as they would consider periodically within their home markets, but a key
issue in global marketing is the degree to which the company is prepared to standardize its
products and marketing approach.
Firms might decide on a globalization strategy by which the company's products,
attitudes, brands and promotion are standardized throughout the world, with global segments
being identified, or conversely might decide on a differentiation strategy whereby the company
adapts its thinking (and marketing) to each new market. The companies which are most likely to

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seek a globalization policy are those whose products are not culturally specific, and whose
promotions can be readily understood throughout the world.
Research shows that relatively few companies standardize their advertising. Of 38
multinational companies surveyed, 26 said that they used standard advertising, but only 4 of
these were completely standardized. The others varied from limited standardization (perhaps
only the corporate logo retaining the same) through limited standardization of key elements
(such as packaging), through to standard methodologies and approaches with minor adaptations.
Choose the correct answer for questions 1-5.
1. What two aspects of a company's strategy can change depending on the country market it is
operating in?
A. Competitive capabilities and globalization strategy
B. Competitive capabilities and competitive position
C. Competitive position and globalization strategy
D. Globalization strategy and global marketing
2. What is unusual about McDonald’s India compared to McDonald’s elsewhere?
A. McDonald’s India is regarded as a standard fast-food brand.
B. It is marketed as a premium brand.
C. They don’t sell any beef products such as hamburgers or Big Macs.
D. India is one of the countries in the world where the cow is sacred.
3. What two types of broad strategy can firms follow across different country markets?
A. Globalization strategy and differentiation strategy
B. Globalization strategy and globalization policy
C. Differentiation strategy and globalization policy
D. Globalization policy and environmental factors
4. Which companies have more chance of success by taking a standardized approach to strategy
across different country markets?
A. Companies whose promotions are easily understood.
B. Companies whose products are not culturally specific.
C. Both are correct.
D. None of these is correct.
5. How common is it for firms to completely standardize their advertising across different
country markets?
A. Not common B. Common
C. Quite common D. Very uncommon

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 PASSAGE 2
Read the passage and do the tasks below.
What is strategic marketing planning?
Strategic marketing planning addresses the company’s long-term goals and objectives
rather than just tactics for marketing products and services. Of course, tactical marketing
planning is just as essential, but it comes at a later stage in the overall process. The strategic
planning stage comes first and involves taking a comprehensive overview of all the company’s
sales and marketing activity. It starts with three questions. Where is the company now? Where
does management want the company to go? What should the company do to improve its
objectives? A good approach to take to the strategic planning process is to separate it from the
distractions of the day-to-day decisions about marketing and sales activities, and to perform an
annual comprehensive review of markets and opportunities, matching this against the overall
direction of the company and its long-term strategic goals.
Strategic marketing planning involves looking at the company from the customer’s point
of view. You need to keep coming back to the particular needs or problems which cause
customers to purchase the company’s goods and services. You can then set this against the
improvements or benefits to the customer’s personal or business life the company’s products can
bring. Can these benefits be enhanced or improved? You need to make a detailed study of those
segments of the market which are attracted to your company’s products and services. In order to
get as much information as possible, this should involve segmenting the market in different
ways: for example, geographically, demographically and psychologically. To build up a
psychological profile of your customers in consumer markets factors such as their overall
lifestyles and attitudes need to be considered. What are the values and motivations that lead
people to decide to purchase your products?
Obviously, it is not enough just to gather information; you need to know how to interpret
it and to understand its possible implications. For example, if you see and understand the trend
for business process outsourcing early enough, you can decide what the consequences for you
might be as a provider of certain types of services and make decisions accordingly. To take
another example, the aging population bubble creates a general increase in demand for a wide
range of products for this age group and profile. It creates market niches for specialized products
that are large enough to make new product development and marketing worthwhile. The same
shifts can also reduce demand for other products. These long-term shifts in markets are
frequently misinterpreted as short-term competitive pressures or fluctuations in the economy.
Without a strategic marketing plan a company could waste resources or miss an opportunity. It’s
difficult to estimate the cost of missing an opportunity at the time it happens; it usually only

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emerges several years later when a competitor opens a new factory or enters a new market and
their revenue starts to accelerate and overtake that of its competitors. In such situations it is easy
to conclude that the annual cost of a strategic marketing plan review is minuscule compared to
the revenue, market share and profitability it can generate.
Choose the correct answer for questions 1-5.
1. What is the relationship between strategic and tactical marketing planning described in the
first paragraph?
A Tactical marketing planning occurs before the strategic planning process.
B. Tactical planning is less concerned with detail than strategic planning.
C. Strategic planning comes before tactical planning and involves taking a comprehensive
overview.
D. Strategic planning is more important than planning tactics in business.
2. What is the most effective way to undertake a strategic marketing plan?
A. You shouldn’t separate strategic marketing planning from decision-making related to sales.
B. You should undertake your annual view from day-to-day sales and marketing decision-
making.
C. You shouldn’t let the annual review distract you from day-to-day sales and marketing
activity.
D. You should link your annual review to the day-to-day decision-making process.
3. How should companies construct a psychological profile of their customers?
A. By segmenting the market geographically and demographically
B. By considering the particular need or problem of the customers
C. By analysing the particular benefits the company’s products and services
D. By looking at customers’ lifestyles and attitudes, their values and motivations
4. In what ways are long-term shifts in markets frequently misinterpreted?
A. There is so much competitive pressure that people don’t notice them.
B. People believe they are caused by short-term fluctuations in the economy.
C. People always believe that they will create new markets for niche products.
D. People are worried about missing opportunities as they don’t analyze them properly.
5. What does the author suggest might be the secondary effect of the ageing population bubble?
A. To create new markets for niche products for other sectors
B. To increase the demand for niche products globally
C. To reduce demand for certain other types of products
D. To make new product development more worthwhile

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 PASSAGE 3
Read the passage and do the tasks below.
Selecting your business name
The right business name is important. If you choose the wrong one, you might end up
with something that sends all the wrong messages. To be successful, your business name needs
to define your identity and say what's special about what you are offering. Think about the
market you want to sell into, and why your customer will prefer to buy your R product or service
rather than someone else's. A good business name is one that tells customers what to expect.
Illiterate names have caught on everywhere; that is names that involve deliberately
misspelled words. Kwik-Fit, the company that promises to fit car parts speedily, was one of the
first in the UK. The name was the brainchild of Kwik-Fit's chief executive, who, as a schoolboy,
earned extra pocket money cleaning ovens. He advertised himself as Kookers Kleaned! Some
people grumble about these misspellings, arguing, for example, that children will copy them, but
even these purists don't hesitate to buy an ice cream from Phun Phlavours! These misspellings
work because they catch the eye. The trouble is, as more and more are invented, they lose their
impact.
But unusual names are not always the most effective, Names like Tie Rack or Body Shop
which just say what your company is about can work just as well. They are short, and they have
an honest no-nonsense ring to them. Sometimes using a personal name can achieve the same
effect: Laura Ashley projects a gentle and elegant image that makes the customer feel
comfortable about buying that company's products.
If you are providing a service, decide whether your company name should describe your
customer's problem or your unique solution to the problem. For example, a vehicle breakdown
service could call itself Panic Breakdowns, which only serves to emphasize the negative state of
mind of the customer, or Instant Rescue, which sends out a reassuring message that help is at
hand. Which name would you select if you had a burst water pipe: Flood Warning or Peace of
Mind?
Consider too the impact your name will have when people hear it or read it. What effect
does it have when spoken over the telephone? Snappy Happy Snaps may describe your
photographic agency, but it sounds ridiculous over the phone. When your name appears in
Yellow Pages or similar directories, usually amongst a hundred others offering a similar service,
you want yours to be the one that catches the eye. One trick is to ensure that the first letter of
your name appears early in the alphabet. A business in Finland Called itself by the meaningless
name Quello, simply because there is no letter Q in Finnish, so Quello was the only entry in the
directory under that letter!

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 Choose the correct answer for questions 1-5.
1. According to the writer, a business name is a good one if it _______.
A. identifies your market needs. B. avoids confusion with other companies
C. creates different kinds of image D. persuades people to use your company
2. What is the writer's attitude to the use of illiterate names?
A. They have been used so much that people no longer notice them.
B. They are bad because children will learn wrong spellings.
C. They are good because people find them amusing.
D. They fail to describe the service or product accurately.
3. What does the writer like about simple company names?
A. They accurately describe the product. B. They inspire confidence.
C. They give a personal touch. D. They are easy to remember.
4. Which name, Flood Warning or Peace of Mind, would the writer probably prefer?
A. Flood Warning because it shows the company understands the problem.
B. Peace of Mind because Flood Warning sounds more serious than a burst pipe.
C. Peace of Mind because it is designed to comfort the customer.
D. Flood Warning, because few people know the expression “Peace of Mind”.
5. According to the writer, you can help to make your company name stand out by ________.
A. using an initial letter that gets your name into the front of directories
B. making sure the name of your company has an unusual letter in it.
C. choosing a short name that people can say easily over the phone.
D. putting your advertisement in several different directories
PASSAGE 5
When it comes to global communications and advertising, multinational companies want
to opt for a standardized approach because of the obvious benefits of economies of scale.
However, what they gain by economies of scale, they lose in effectiveness. For a long time,
international advertising strategists believed that emotional or feelings-based appeals would
travel better than thinking based appeals, because of the assumed universality of human values
such as love and happiness. Analysis of advertisements in international media such as
Newsweek, Business Week and CNN shows that this is the approach that has been taken by U.S.
companies in particular. In reality, however, the messages being communicated are less universal
than is commonly assumed, more a reflection of the home country's own value system. As with a
company's identity and its brand strategies, advertising must also communicate values that match
those of the receiver rather than the culture of the producer. Advertising is most effective when it
succeeds in reflecting the culture of the consumer it is trying to reach.

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 A communications and advertising strategy that is defined according to each and every
distinct market may make Western marketers nervous, but in the end, it earns money by being
more effective than taking a one-size-fits-all approach. If you want to reach consumers in
different parts of the world, my advice is always the same: Speak to them in a way they
understand, that fits their communication style. The new paradigm is cultural segmentation:
defining markets based on their cultural specifics, and then developing cultural strategies. A
strong corporate identity needs to go hand in hand with cultural sensitivity. Instead of being
`consistent', companies should be pragmatic and adapt to the cultural mindset of consumers. This
is the future of global strategy.
Choose the correct answer for each question.
1. Why do multinational companies want to standardize their marketing approach across
different country markets?
A. For economies of scale benefits B. For a loss in effectiveness
C. For certain scale benefits D. For fear of losing
2. Why do international advertising experts use messages based on emotions and feelings?
A. They want to communicate via feeling-based messages.
B. They think that thinking-based practices are better.
C. They think that these messages are universal.
D. They think that consumers will appreciate the messages.
3. According to the author, how universal are feelings and emotions such as love and happiness?
A. This is the approach that has been taken by U.S. companies.
B. They are not very universal
C. They reflect the value system of the home country
D. B and C are correct.
4. How can companies best communicate their message in international markets?
A. Try to be more universal for international acceptance
B. Speak to consumers in each country in a way they understand.
C. Communicate the values to the producers
D. Try to reflect the culture of the producers
5. What marketing strategy does the author propose for international companies?
A. Cultural marketing
B. Cultural consistence
C. Cultural segmentation
D. Cultural analysis

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