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If there is no internal candidate, the company can hire an employment
• agency, or advertise the vacancy.
Then, it receives applications, CVs and covering letters, and makes a
• shortlist.
It invites the shortlisted candidates for an interview, and makes a final
• selection.
Eventually, it writes to all the other candidates to inform them that they have
• been unsuccessful.
Job applications
If you want to apply for a job, you have to look in the situations vacant pages of a
newspaper, or a jobs website on the internet. Then, you have to make an
application, send your CV (the story of your life) and a covering letter explaining
why you want the job and why you are the right person for it.
CVs and covering letters
A curriculum vitae is a document in which people write the story of their life,
explaining their work experience, the qualifications they have, the education, the
skills (e.g. computer skills), the languages they know, hobbies, interests and
references.
A covering letter is a letter in which you explain why you want the job and why you
are the right person for it. It should be specific to the job you are applying for,
highlight your skills and achievements, and show how your work experience relates
to the job you are applying for.
The different sectors of the economy
There are 3 sectors in the economy: primary, that includes agriculture and
extraction of raw materials. Secondary, production of tangible goods such as cars,
computers, food, textiles. Tertiary, production of intangible goods (services) such as
call centres, retail, finance, healthcare.
Primary sector has got smaller because there are few raw materials, machines
have replaced human jobs, other poorer countries can collect materials a lot
cheaper than Europe, and workers’ pay are too high.
The secondary sector has got smaller too due to foreign competition (China) and
machines that have replaced human jobs.
Tertiary sector has got larger because the population has risen, there has been an
increase in wealth for people, and people has more leisure time.
The quaternary sector
The quaternary sector is the portion of an economy based on knowledge applicable
to some business activities that usually involve the provision of services. For
example, the quaternary sector might include:
distribution and technology;
• research and development;
• education;
• business consulting;
•
Production
The objectives of the production department are usually to produce a specific
product, on schedule, at minimum cost. There may be other criteria, such as
concentrating on quality and product reliability, producing the maximum possible
volume of output, fully utilizing the plant or the workforce, reducing lead time,
generating the maximum return on assets, or ensuring flexibility for product or
volume changes.
Branding
A brand is a name, or a symbol, or a logo that distinguishes products and services
from competing offerings, and makes consumers remember the company, product
or service. Branding is creating brands and keeping them in customers’ minds
through advertising, product and package design, and so on.
Products, product lines and product mixes
A product is anything that can be offered to a market that might satisfy a want or
need. Most manufacturers divide their products into product lines, that are groups
of closely related products, sold to the same customer groups, and marketed
through the same outlets. A product mix is the group of products sold by a
company. Companies are always re-evaluating their product mixes, because
different products are at different stages of their lifecycle.
Customers’ attitudes towards brands
Customers have different attitudes towards brands: some customers are brand
switchers, that means that they buy various competing products rather than being
loyal to a particular brand; other are brand loyal, that means that they always buy
that brand.
Brand managers use advertising in order to achieve a brand recognition among the
general public. Some brands are more than just products or services: they
successfully represent customers’ attitudes or feelings, e.g. Nike, Apple, etc.
Marketing
Marketing is the process of planning, designing, pricing, promoting and distributing
goods or services in order to satisfy customer needs profitably. The marketer has to
point out how the special features of their products possess particular benefits in
relation to the needs of the people who buy them. Some strategies are:
Product differentiation. Making a product (appear to be) different form similar
• products offered by other sellers, by product differences, advertising,
packaging, etc.
Market skimming. Setting a high price for a new product, to make maximum
• revenue before competing products appear on the market
Market penetration. The strategy of setting a low price to try to sell a large
• volume and increase market share
The 4 Ps of the marketing mix
The 4 Ps are:
Product. Deciding what to sell. The 3 aspects to any product are the core
• benefit (in-use benefit, psychological benefits), the tangible product (quality,
styling, brand name) and the augmented product (warranty, installation,
delivery)
Price. Deciding what prices to charge (related to the quality of the product).
• Premium (high price), mid-range (mid-priced), entry level (low price).
discounting
Place. Deciding how the product will be distributed and where people will buy
• it. There are many types of store such as chain store (shops that is part of a
group of shops), convenience store (open long hours), discounter (very low
prices), hypermarket (large shop with many goods).
Promotion. Deciding how the product will be supported with advertising.
•
Advertising
Advertising informs customers about the existence and benefits of products and
services, and attempts to persuade them to buy them. Most companies use
advertising agencies to produce their advertising for them. There are many
advertising mediums: radio and television commercials, billboards, hoardings,
coupons, advertisements in newspapers and magazines.
The best form of advertising has always been the word-of-mouth advertising:
people telling their friends about good products and services.
Promotional tools
Promotional tools are non-personal promotional efforts that are designed to have
an immediate impact on sales. Examples include:
Coupons. A coupon is a ticket or document that can be exchanged for a
• financial discount on a product. They are often distributed through mail,
magazines, newspapers, and the internet
Rebates. Consumers are offered money back if the receipt and barcode are
• mailed to the producer. They are heavily used for advertised sales in retail
stores in the US. Only a small percentage of people remember to mail the
coupons.
Contests/games. The consumer is automatically entered into the event by
• purchasing the product
Checkout dispensers. On checkout the customer is given a coupon based on
• products purchased
Free-standing insert (FSI). A coupon booklet (opuscolo) is inserted into the
• local newspaper for delivery
Necker. A coupon placed on the neck of a bottle
•
Sales promotions can be directed at either the customer, sales staff, or distribution
channel members (such as retailers).