BE1 – Vocabulary exercises
ECONOMIC
ECONOMY
ECONOMISE ECONOMICAL
(ekonomski) (ekonomizirati)
(gosp.)
(štedljiv)
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ECONOMICS ECONOMIST
(ekonomija)
(ekonomist)
1. ECONOMIC
a) Relating to or involving economics,money,finance
b) Which produces enough profit to make it worth counting with
2. ECONOMIST
-someone who studies the way in which wealth is produced and used in
area
3. ECONOMISE
-to reduce the amount of time,money,goods etc.that you use,to save
money
4. ECONOMY
a) The system by which a countr's goods and services are produced and
used,or a country
b) A way of spending less money
5. ECONOMICAL
-using money,time,goods etc. carefully and without wasting any
6. ECONOMICS
-the study of the way in which wealth is produced and used
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Sort out the words by coping them in the right column:
International theoretical keynesian booming healthy
Black
classical
fragile
Applied
global
-international
-booming
-healthy
-black
-fragile
-global
-theoretical
-keynesian
-classical
-applied
ECONOMY
ECONOMICS
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Translate the words into english:
1. ECONOMIES (gospodarstva) of the transition countries have
undergone major changes recently
2. ECONOMY (ekonomija) is the system by which a country's goods
and services are produced and used
3. The ECONOMIC (ekonomska) situation in Croatia is very serious
4. ECONOMICS (ekonomija) is a fascinating subject to study
5. This production process is very ECONOMICAL (ekonomičan)
6. The Italian ECONOMY (ekonomija) is in big problems
7. A decrease in the ECONOMIC (gospodarski) growth was recorded
last month
8. Some students study ECONOMICS (ekonomija), while others do
bussines study
BE1 – Vocabulary exercises
ekonomija
ECONOMY
poslovna ekonomija
BUSINESS ECONOMY
nadnice (plaće)
WAGES
oskudni resursi
obilje
SCARCE RESOURCES
AFFLUENCE
znanstveni pristup
ZNANSTVENI PRISTUP
ekonomski rast
ECONOMIC GROSE
distribucija dohotka
INCOME DISTRIBUTION
vanjska trgovina
FOREIGN TRADE
ekonomska analiza
ECONOMICS ANALYSIS
zanimanje
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OCUPATION
vjerojatnost
PROBABILITY
ekonometrija
ECONOMETRICS
radna snaga
WORK FORCE
kućanstva
HOUSEHOLD
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Areas of interest to economist are:
-politics
-the stock market (burza)
-business and label markets
-international trade (mađunarodna trgovina)
-demography
-tehnological advance (tehnološki napredak)
Economists look for solutions to problems arising from the
movement of PEOPLE, PRODUCTS and CAPITAL.
They use economic MODELING and FORECASTING
techniques to research issues such as energy COSTS, INFLATION,
interests RATES, IMPORT and EXPORT volumes and EMPLOYMENT
trends.
Economists need to be able to collect DATA, to write up
their FINDINGS and RECOMMENDATIONS.
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Economics
THE STUDY OF HOW INDIVIDUALS AND
GOVERNMENTS ALLOCATE SCARCE RESOURCES
IN AN ATTEMPT, TO SATISFY UNLIMITED
WANTS.
-People's wants are UNLIMITED!!
-The resources to satisfy these wants are LIMITED!!!
People and governments are willing to
exchange to satisfy the wants.
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- I think that everybody should have some knowledge of
economics. Because, without this knowledge the dice of life are
simply loaded against you.
- Firstly, choosing my life's ocupation is the most important
economic decision I have made.
- Then, as a voter, I will make decisions on issues (on the
government budget,taxes and foreign trade)
That cannot be understand until I have mastered the
basic of economics.
- Economics covers all kind of topics.
But the core is devoted to understanding how ssociety allocates
its scarce resources.
- Economists study the way goods are produced and consumed
because people wants to consume far more than an economy can
produce.
- So, economics is the science of choice.
- It studies how people choose to use limited resources,to
produce various goods,and to distribue these goods for
consumption.
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SECTORS OF THE
ECONOMY
ECONOMY is the system by which:
Wealth is produced and used
Money, industry and trade are organised
Goods and services are produced and used
1. PRIMARY SECTOR
-extracting raw materials
2. SECONDARY SECTOR
-manufacturing,turning raw materials into finished
products
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3. TERTIARY SECTOR
-providing services
PRIMARY SECTOR
it is based on:
 Raw materials (sirovine) or natural resources
 They can be:
o EXTRACTED (mining-rudarstvo, quarrying-kamenolom)
o GROWN (forestry,farming,breeding animals-uzg.životinja)
o COLLECTED (fishing)
SECONDARY SECTOR
it is based on:
 MANUFACTURING (turning raw materials into finished goods)
-there are:
 CAPITAL GOODS- which help to make other goods
- help provide service
 CONSUMER GOODS-straight to the final consumer
-consumables(potrošni materijal)-get used up (pencils,cans)
-consumer durables (trajna potrošna roba)-last longer
(TV,cars,fridges)
 BUILDING & CONSTRUCTION
-utilities (komunalije)- water supply, gas, electricity
TERTIARY SECTOR
includes services for:
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 BUSINESS (distribution of goods, warehousing, advertising)
 CONSUMERS (hairdressing, restaurants)
 BUSINESS + CONSUMERS
(banking,insurance,communication,post)
Which sector do they work in??
-business consultant- TERTIARY
-doctor- TERTIARY
-waiter- TERTIARY
-farmer- PRIMARY
-shipbuilder- SECONDARY
-fisherman- PRIMARY
-blue-collar worker- SECONDARY
-real estate agent(agent za nekretnine)- TERTIARY
Raw materials are TAKEN from the ground and then
either USED or TURNED into finished goods.
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Before finished goods are sold, they often have to be
DISTRIBUTED, TRANSPORTED, ADVERTISMENT, etc.
- Actually, there are 5 sectors of the economy which defined a
nation's economy. This are:
1. PRIMARY
2. SECONDARY
3. TERTIARY
4. QUATERNARY
5. QUINARY
PRIMARY – extract or harvest product form the earth
- Includes the production of raw materials and basic foods
- Includes activities such as:
 Agriculture, mining, forestry, farming, grazing, hunting
and gathering, fishing and quarrying
- The packaging and the processing of the raw materials
associated with the sector is also considered to be part of this
sector
SECONDARY SECTOR
of the economy manufactured
finished goods
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- Activities that are included:
-metal working and smelting
-automobile production
-textile production
-chemical and engineering industries
-construction and shipbuilding
TERTIARY SECTOR
of the economy is the service industry
- This sector provides services to the general population and to
business
- Activities:
 Retail and wholesale sales
 Transportation and distribution
 Restaurants
 Media
 Tourism
 Insurance and Banking
 Healthcare and Law
QUATERNARY SECTOR consist of intelectual activities:
-
Government
Culture
Libraries
Scinetific research
Education
Information techonology
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QUINARY SECTOR branch of the quaternary sector
- Includes the highest level of decision making in a society or
economy
- Activities:
 Government
 Science
 Universities
 Non profit
 Health care
 Culture
 Media
ECONOMIC SYSTEM
What every economic system must address??
 WHAT to produce?
 HOW to produce it?
(which resource combination to use?)
 HOW to distribute it among the system's members?
EFFICIENCY (efikasnost,učinkovitost)
o The quality of doing something well and without wasting
time,money,or energy)
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1.
COMMAND OR PLANED
2.
MIXED
3.
FREE MARKET
PLANNED ECONOMY – government has a vital role
It plans and organises the whole production process
- Resources belongs to the state, and goods and services are
distributed by the state
- More equal distribution of wealth and income
- Production is for need rather than profit
- People are less motivated to work
- Standard of living is often lower compared with countries
which use other types of economic system
MIXED ECONOMY – economic system which have elements of
market and planned economy
- Some resources are allocated by the government (in the public
sector) and the rest by the market forces DEMAND and
SUPPLY (in the private sector)
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- Role of government provides a minimum standard of living,
and ensure a fair competition
- Pruduction of public goods paid by taxes,but in private sector
production is for profit
MARKET ECONOMY
- Resources are allocated automatically by the forces of demand
and supply
- The role of government is limited (ensure a fair competition,
pass laws, the judiciary)
- Production is only for profit
- Unequal distribution of income
ECONOMIC
ECONOMICAL
TO ECONOMISE
ECONOMICS
ECONOMY
ECONOMICS is the oldest in social sciences
Strikes were damaging the country's ECONOMY
It is usually more ECONOMIC to buy large quantities
A decrease in the ECONOMICAL growth was recorded last
month
Many countries tried to ECONOMISE on fuel
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off free market economy:
a)
BETTER CHOICE
b)
BETTER QUALLITY
c)
LOWER PRICES
d)
LOWER COSTS
LAWS
LIMITED
QUALITY
MOTIVATED SERVICIES
DEMAND
ALLOCATED
COMPETITION VITAL
RANGE
GOODS
SUPPLY
STANDARD PRICES
NEEDS
- In market economies resources are ALLOCATED automatically
by the forces of DEMAND and SUPPLY.
- Competition leads to lower PRICES, a wider RANGE of goods,
goods and servicies are better QUALITY.
- The role of government is LIMITED: to pass LAWS, to provide
certain GOODS and SERVICES and ensure fair
COMPETITION.
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- In planned economies government has VITAL role.
- Production is for NEEDS rather than profit, people are less
MOTIVATED to work efficiency and the STANDARD of living
is lower.
ALLOCATE
PAS
RESOURCES
LAWS
PROVIDE
GOOD,SERVICIES
ENSURE
A LEVEL PLAYING FIELD
PLAN
ORGANIZE
CO-ORDINATE
PRODUCTION PROCES
PRODUCTION
PROCES
BE1 – Vocabulary exercises
DISTRIBUTE
SUPPLY
MAKE











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GOODS
GOODS
PROFIT
Central/local
– government
Unlimited
– wants
Basic
– economic problem
Free market/planned – economy
Market – mechanism
Level – playing field
Fair – competition
Public/private – sector
Income – distribution
Supply – and demand
Resource - allocation
CAPITALISM
is based on private ownership and profit
TRADITIONAL ECONOMY
early civilization has
it. It was based on farming and exchangive goods.
MANORALISM
economic system in Western Europe
during the middle ages. The economy was based on lord manors
and state.
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MERCANTILISM
economic policy by which a
nations starts to export more than import
LAISSEZ FAIRE CAPITALISM
Adam Smith
first describe Laissez faire capitalism in his book ''The wealth of
nations.''
COMMAND ECONOMY
the opposite of supply and
demand economy. Government makes all economic decisions
(how much was something is going to be made, and for what price
is going to be sold)
TAXATION
-to tax is to impose a financial charge to a taxpayer by a state, such
that failure to pay is punishable by law
TYPES OF TAXES
BE1 – Vocabulary exercises






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INCOME TAX (porez na dohodak)
CORPORATE TAX (porez na dobit)
TAXES ON PAYROLL AND WORKFORCE
TAXES ON PROPERTY (porez na imovinu)
TRANSFER TAX (porez na prijenos)
TAXES ON GOODS AND SERVICES
A TAX HAVEN
is a state or a
country or teritory where certain taxes are levied at a low rate or not
at all, while offering good governance and a low corruption rate.
DIFFERENCES BETWEEN TAX EVASION
AND TAX AVODIANCE
- The difference between TAX EVASION and TAX
AVODIANCE is very important
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 TAX AVOIDANCE includes different methods and
strategies to lower the price of taxes
 It is a perfectly legal method, which is used by a
tax professionals to save their clients money
 This method provides a lower tax liability
 It is much better option then tax evasion
 On the other hand, there is a TAX EVASION,
which is illegal practice
 It involveds intentionally avoiding paying taxes
that were owed, and provide higher tax liability
 It will leave the taxpayer subject to fines in prison
PUBLIC SECTOR
COMPANIES
are run & owned by the state. (central/local
government)
PUBLIC SERVICES – are financed from taxation
- It includes:
 national health
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 defence (the police,the army)
 education
PUBLIC ENTERPRISES – sold at a price, for profit
- it includes:
 utilities (electricity,water,gas)
 BBC, Bank of England, HNB
 British rail
ADVANTAGES
-Natural monopoly in public
ownership
-National security
-Profits benefits the whole
Nation
DISADVANTAGES
-Bosses are politicians
-Taxpayers pay for losses
-Local issues may be
disregarded in favour
of policies
MERIT GOODS
- Goods or services (such as education and vaccination) provided
free for the benefit if the entire society,
by a government, because they would be uderprovided if left to
the market forces or private enterprise
PUBLIC GOODS
- Goods or services whose consumption is not decided by the
individual consumer,
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but by the society as a whole, and which is financed by taxation
- Public goods includes:
 Economic statistic
 National defense
 Parks (and other things for use and benefits)
- They are also provided to everyone by governments
MUNICIPAL ENTERPRISES
-
(Komnualna poduzeća)
Cemeteries
Street cleaning
Car parks, street lighting
Recreation centers, stadiums
Theatres, museums, airports
PRIVATISATION
Transfer of GOVERNMENT-CONTROLLED companies
into PRIVATE OWNERSHIP
ADVANTAGES
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 Competition – which leads to LOWER PRICES
 More choice, better quality
 More new innovative products
 Managers make decision freely
 Growing number of shareholders
DISADVANTAGES
 Laying off workers (otpuštanje radnika)
 Concentrating only on PROFIT
 Trade unions are not able to protect workers
 State owned firms can only be sold once
ENTERPRENEURSHIP
ORGANISATION of production
- Aim of production – provide with the goods/services
that people:
a) NEED (essential for survival)
b) WANT (not necessary, make the quality of live
better)
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FACTORS of production
 LAND – fixed in supply
Geographical area
Natural resources
 LABOUR – man's physical and mental contribution
(skills/knowledge)
 CAPITAL –
a) Fixed – buildings,machinery, equipment
b) Working – stocks of raw materials, cash, bank
balance
ENTRERPRENEURS
Start a business
Discover a profitable way of satisfying needs
Make choises. They are alert (oprezan)
They use imagination, which means that they are
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Creative.
They see the possibility of:
 NEW PRODUCTS
 TECHNOLOGIES
 PRODUCTION PROCESSES
 FORMS OF ORGANIZATION
 MARKETING
REASONS FOR START – UP :
 INDEPENDENCE
 KEEPING ALL THE PROFIT
 CREATIVITY
 USING REDUNDANCY(suvišan) MONEY
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PROBLEMS:
 SMALL INCOME
 TAKING RESPONSIBILITY
 WORKING LONG HOURS
 DELEGATING RESPONSIBILITY WHEN GROWING
PERSONAL CHARACTERISTICS:
Hard working
Resourceful
Independent
Willing to take risks
Self-motivated
Desire to succeed
MANAGERS
-come from fairly conventional backgrounds
(prilično konvencionalno podrijetlo)
-they are THE BRIGHT KIDS EVERYONE KNEW WOULD DO
WELL
-born ORGANIZERS
-rise through the RANKS to the top
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ENTREPRENEURS
-likely to be AN AOUTSIDER
A TROUBLEMAKER
A REBEL (pobunjenik)
-drop out of COLLEGE TO GET A JOB
-discover a FLAIR for business
-get BORED quickly
-masters of RISK-managment
ECONOMIC AGENT / BUDDING ENTREPRENEURS/ FLAIR
MARKET OPPORTUNITY / MARKET PENETRATION
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- When you want to provide a new product or service MARKET
OPPORTUNITY
- The attempt to increase sales, and get a large number of
costumers MARKET PENETRATION
- Consumers, households, companies, organizations are
ECONOMIC AGENTS
- Starting and promising entrepreneurs BUDDING
ENTREPRENEURS
- He has a real FLAIR for investing on the stock market
PRIVATE SECTOR
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The private sector companies are owned by
INDIVIDUALS or GROUP OF INDIVIDUALS or the
GOVERNMENT has a shareholding
-private sector includes business that are run for the
benefit of the people who own them
-contains almost all business
LIABILITY = responsibility to settle a debt
a) LIMITED LIABILITY
-responsibility for debts to the values of the investment
b) UNLIMITED LIABILITY
-the risk to sell personal assets/property to pay for business
debts
ASSETS
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- Items of value:






Cash
Land
Buildings
Machines
Shares
Jewelry
TYPES OF BUSINESS
ORGANISATIONS
SOLE PRIPRIETOR /
SOLE TRADER(unincorporated)
PARTNERSHIP X & Y
(unincorporated)
PRIVATE LIMITED COMPANY ( LTD )
(incorporated)
PUBLIC LIMITED COMPANY ( PLC )
(incorporated)
SOLE PROPRIETOR
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- The simplest form of business, because it needs a
few legal requirements to set up
- One person is owner, and one person control and
make all decisions
ADVANTAGES
-easily established
-no partners or shareholders
-tax profit stays with
the owner
-minimal governement
regulation
DISADVANTAGES
-owner must bear all cost
of set up
-unlimited liabilitiy for debts
-no opportunity to specialise
-business ends on death
PARTNERSHIP
- Type of business with partners as a owners
- They control and make all decisions
- It is financed by the CAPITAL OF OWNERS
ADVANTAGES
-more finance than the
sole owner
-each partner can specialize
-easy communication
DISADVANTAGES
-unlimited liability for debts
-partnership ends on death
of any partner
PRIVATE LIMITED COMPANY (LTD)
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- Type of business in private sector with shareholders
as a owners
- The Board of directors elected by shareholders
control and make all decisions
ADVANTAGES
-limited liability for debts
-opportunities for larger
scale organisations
DISADVANTAGES
-more formalities to observe
when setting up
-possible conflict between
owners and management
PUBLIC LIMTED COMPANY (PLC)
- Type of business in private sector with shareholders
as a owners
- The Board of directors elected by shareholders
control and make all decisions
ADVANTAGES
-limited liabiltiy for debts
-access to large amount
of capital
DISADVANTAGES
-formalities and regulations
of establishment
-increased separation of
ownership and management
-posibility of takeovers
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DOCUMENTS FOR LIMITED
COMPANIES
1.
THE MEMORANDUM OF ASSOCIATION
(ugovor o osnivanju)
- A document with a NAME
TYPE OF BUSINESS
PREMISES
TOTAL SHARE CAPITAL
2. THE ARTICLES OF ASSOCIATION
(statut-prava i dužnosti)
- a document with a POWERS AND DUTIES
ISSUE OF SHARES
SALARY AND APPOINTMENT
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MANAGEMENT
MANAGEMENT FUNCTIONS
1. PLANNING – which means making decisions and
methods to achieve the objectives
2. CO-ORDINATING – integrating activities in
order to form a united strategy
3. MOTIVATING – encouraging
4. CONTROLLING – supervising and checking
- Set objectives, leading, organising
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TWO-TIER CORPORATE
HIERARCHY
1) Board of director
-managers at the top, elected by shareholders
-they look after shareholders' interests
-CEO, COO, CFO
-they make strategic decision:
 Which markets to enter
 How to finance expansion
 Develop new products
 Take over new products by buying other
companies
2) Management team
-the Chieff executive officer – the top manager
-they are involved in day – to day operations
-management team includes:
 DEPARTMENTAL MANAGERS
(Finance, Production, Marketing, Distribution,
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Research & Development)
MANAGERS
 Set objectives
 Analyse the activities
 Select people
 Form effective teams
 Motivate
 Train and develop their staff
''FAT CATS''
- A bad C.E.O. can ruin a company whit his
greed(pohlepa) and negligence(nemar)
- For them is all about the money.
- They are so focus on receiving proudction bonuses,
that they will drag the company DOWN.
- They take the money and run, leaving to the next
company before the damage is understood
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COMPANY STRUCTURE
Internal organisation of business,
different ways of oragnizing work.
INTERNAL ORGANIZATION DEPENDS ON:
 Type of business activity
(insurance, factory, hospital, college, supermarket...)
 Size of business
(small / medium sized / large)
BUSINESS PURPOSE:
To maximise – PRODUCTIVITY
CREATIVITY
INNOVATION
WEALTH
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2 TYPES OF ENTERPRISES:
(SMS- small/medium sized)
1.
SMALL FIRMS
- No departments
- No specialisation
- A wider range of skills
- Work more interesting and satisfying
2.
MEDIUM-SIZED ENTERPRISES
- Company with less than 250 employees
- Annual turnover less than €50 million
- 2/3 (two thirds) of all private sector jobs
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A COMPANY:
 Consist of departments
 Contains departments
 Includes departments
 Is made up of departments
 Is composed of departments
 Is divided into departments
PEOPLE ARE:
In charge of something
Accountable to somebody
Responsible to somebody
Responsible for something
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Supported by somebody
Report to somebody
TYPES OF STRUCTURES
HIERARCHY
FUNCTIONAL
MATRIX
TEAM
HIERARCHY
- Consist of CLEAR CHAIN OF COMMAND
- In this type of structure, there are SUPERIORS and
SUBORDINATES
- Responsibility passed on bosses
- People at lower level (subordinates) can't take
important decisions
- TREND:
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Reducing the chain of command
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FLATTENING
FUNCTIONAL STRUCTURE
(large manufacturing companies)
-it includes:
PRODUCITON
FINANCE
MARKETING
SALES
 HUMAN RESOURCES




MATRIX MANAGEMENT
- People from different departments work together
- People report to more than one superior
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Matrix Structure
Marketing
Sales
R&D
Project
HR
Production
Finance
TEAM is
- Wholly autonomous and temporary groups of people
- Each person in team is responsible for the entire
project
- They split up sfter successful completion
WIKINOMICS – the Internet
- Is the term originated from the words
WIKI = QUICK (Hawaiian)
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WIKI + economics
Operations outside the company
RECRUITMENT
Recruit=employ=take on=give a job=hire
SEARCH FOR EMPLOYEES
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RECRUTIMENT PROCESS
 Human resources department advertises the job in
the appointment page of newspaper
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 Applicants apply for the job by sending a letter of
applications and CV
 The company draws a shortlist of candidates
 Candidates are invited to attend on an interview
 They must prepare themselves, research about the
company and arrive on time
 After the interview, they wait for an answer
FRINGE BENEFITS (PERKS)
- Means BONUS (additional payment)
- They consist of:
 Free meals
 Use a car / mobile phone / house
 Free insurance
 Profit sharing
 Social facilities (sports clubs)
WORK & MOTIVATION
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To motivate means to enspire, to give a reason
to someone to do something
FACTOR THAT AFFECT WORK & MOTIVATION
 Individual differences
 Job characteristics
 Organisational practises
STRATEGIES FOR RAISING JOB SATISFACTION AND
QUALITY OF WORK LIFE
- Improving work conditions and security
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- Increasing the worker's responsibility
- Providing financial stability
- Enhancing the worker's sense of self – worth
- Providing opportunities for social relationship within
the organisation
GOOD MOTIVATION RESULTS IN:
 More productive enviroment
 Higher competitiveness
 Higher profitability
MANAGERS MOTIVATE:
- Good remuneration:
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(salary, commission, bonuses perks)
- Sick pay / pension
- Good working relations and conditions
- Job security / job safety
(enough light & space, clean, quiet and safe work
place, and so on...)
- Promotion
- Challenging job
- Responsibility
- Contact with people
- Opportunities to travel
- Long holidays / vacations
1. MASLOW'S HIERARCHY OF NEEDS
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- Motivation theories
2.
Mc GREGOR –
outlined 2 opposing
theories of work and motivation
 Theory X assumes that people are lazy and
dislike work
- and that they need discipline and control
- managers are authoritarian
 Theory Y assumes that people are motivated,
they like work, and they can take responsibility
-managers should trust them and help them do
their best
3. HERZBERG'S HYGIENE FACTORS
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- To keep workers contended, employers must provide:
Clean, quiet and safe working conditions
Adequate rest breaks
Good labour relations
Good wages and benefits
Job security
- Motivators - encourage to do their best
 Praise from managers
 Career advancement
 More responsibility
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LABOUR RELATIONS
WORK RELATIONS AT THE PLACE OF
WORK
- Job satisfaction comes form GETTING ON WITH
others AT WORK:
a. WITH fellow employees (colleagues)
b. WITH management
PEOPLE
– the most important resource
-the most costly resource
THE MOST COMMON CONFLICTS:
 The employers want to minimse wage costs
 The employees want to achieve higher pay
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TRADE UNIONS
REPRESENT PEOPLE AT WORK
- trade unions regulate the RELATIONS between
employers and employees
- they protect the interest of their members
TRADE UNIONS AIMS:





improve wages / working conditions
reduce working hours
protect full employment
FIGHT FOR job security
Provide benfits for those who are sick, retired,
on strike
TRADE UNIONS PROVIDE:
a. COLLECTIVE NEGOTIATING (pregovaranje)
-talks between representatives of employees and
employers
b. RESTRICTIVE METHODS
-industrial action
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TYPES OF INDUSTRIAL ACTION
1. STRIKE
a) Official – with union approval (odobrenje)
– strike is paid from members founds
b) Unofficial
-WILDCAT – without union support
(bez dozvole,rizican divlji)
2. OVERTIME BAN (zabrana)
-workers refuse to work additional hours
3. WORK TO RULE
-work according to the company rules, work is slowed
4. GO SLOW
– reduction in the rate of production
5. PICKET
-protest outside a factory, try to persude workers
and delivery drivers not to enter
6. BLACKING – refuse to move machines
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PRODUCTS
Things / services that are produced for
sale
PRODUCT CAN BE:
 Physical objects
 Services
 Leisure activities (slobodne aktivnosti)
 People (politicans,sportsmen,actors)
 Places (holiday resources)
 Organisations (hospitals, colleges)
FOR SALE !!
PRODUCT LINES
- Groups of related products made by the same
company
- In different sizes, models
PRODUCT MIX
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- Combination of all products by the same company
BRAND
- Includes:
 NAME
 SYMBOL
 LOGO
 DESIGN
 PACKAGING
of the PRODUCTS
BRAND NAME
- Type of product manufactured by a particular
company
1) CORPORATE BRANDING
-the name of the company on all products
2) INDIVIDUAL BRANDING
-various products under individual brand names
ADVANTAGES OF BUILDING UP A BRAND
 Costumers are willing to pay HIGHER PRICES
 Good brands are worth a lot of money
 You can do brand stretching
(extend to a new type of product)
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COSTUMERS
There are:
 LOYAL COSTUMERS
(vjerni)
 BRAND SWITCHERS
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MARKETING
Presenting, advertising and selling a company's
Products in the best possible way
GIVE THE COSTUMER WHAT THEY
WANT AND MAKE A PROFIT !!!
MARKET COMBINES:
- Market research
- New product development
- Distribution
- Advertising
- Promotion
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- Product improvement
TYPES OF MARKET
1. B2C (Business – to – Costumer)
-people buy for direct consupmtion
2. B2B (Business – to – Business)
-organisations buy goods and services needed for the
production of other goods or services
 Raw materials
 Manufactured components
 Capital equipment (buildings, machines, energy)
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THE MARKET CONCEPT
- Make what you can sell
- Find wants and fill them
- Create new needs
THE SELLING CONCEPT
- Sell what you make
THE RIGHT PRODUCT:
IN THE RIGHT PLACE
AT THE RIGHT PRICE
AT THE RIGHT TIME
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MARKETING MIX
(elements of a market programme)
THE FOUR Ps:
1.
2.
3.
4.
PRODUCT
PRICE
PLACE
PROMOTION
If a firm gets them right, it will be easy to
sell the product !!
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PRODUCT
- Must fulfil some of the costumer's needs or wants
 QUALITY
 FEATURES / FUNCTIONALITY
 STYLE / APPEARANCE
 BRAND NAME
 SIZE
 PACKAGING
 SERVICE / SUPPORT
 GUARANTEE / WARRANTY
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PRICE
- The price must be good value for money / not cheap
 BASIC LIST PRICE
 DISCOUNTS
 LENGTH OF THE PAYMENT PERIOD
 CREDIT TERMS
-Market – skimming pricing – a high price for a new
product before competition
-Price elasticity – which people want to buy a product
When its price changes
-MARKET PENETRATION – a low price to sell larger
Quantities
PLACE
- The product must be available for sale in a
convenient place
 DISTRIBUTION CHANNELS
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 LOCATIONS OF POINTS OF SALE
 TRANSPORT
 INVENTORY SIZE
PROMOTION
- Potential costumers must be aware that the product
exists
 ADVERTISING
 PUBLIC RELATIONS
 SALES PROMOTION
 PERSONAL SELLING
MARKET SEGMENTATION
- Means, who will buy and use the product
- It refers to:
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 AGE – as an example, the teenage market
 SOCIAL CLASS
-class A (proffesionals
-down to E (the unemployed)
 LOCATIONS
-as an example cities
 CULTURE OR RELIGION
-own unique products
ADVERTISING
Informs consumers about the existence and
Benefits of PRODUCT / SERVICES
PURCHASES – INFLUENCED BY
ADVERTISING???
TO ADVERTISE = to inform in order to encourage
People to buy or use the product
ADVERTISER = a company or a person that advertises
ADVERTISEMENT = a particular piece of advertising
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ADVERTISING DEPENDS ON THE:
 MONEY –size of your advertising budget
 SIZE – of your market – locally, nationwide, worlwide
 TYPE – of the target market
FIRMS ADVERTISE FOR 4 REASONS:
 MAKE AWARE of new products
 REMIND about existing product
 PERSUADE to switch from rival products
 IMPROVE the image of the business
HIRING AN ADVERTISING AGENCY
- The client company gives:
1. BUDGET – an amount of money
2. BRIEF – objectives of the advertising campaign
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3. ADVERTISING STRATEGY – message / media
ADVERTISING MEDIA
PRINT MEDIA – newspapers, magazines, brochures,
journals
BROADCAST MEDIA – TV, radio, cinema
ENDORSEMENT – famous people speak on behalf of a
product
OUTDOOR ADVERTISING – posters, billboards
DISPLAYS OF LOGOS – at stadiums, on chlotes, bags...
WEBSITES – e-comerce, video games
TRANSPORTATION – public transport, vehicles,
stations stops
POINT OF BALE – window displays,
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product demonstration
SKYWRITING
SPONSORSHIPS – racing cars, championships,
Sports events
VIRAL MARKETING – information about products is
Spread by people telling other
People or sending on emails
(BUZZ MARKETING)