Marketing and the Information Age
Read Marketing and the Information Age and check the IELTS Reading answers. For the early practitioners of marketing in the late 19th and early 20th centuries, the business of selling was simply a matter of continually finding new customers. By contrast, marketing managers in the current era recogn…
Passage preview
For the early practitioners of marketing in the late 19th and early 20th centuries, the business of selling was simply a matter of continually finding new customers. By contrast, marketing managers in the current era recognise the importance of gathering information about the market and about potential customers. They recognise that if companies are to be profitable, customers must gain and retain their perceptions of value from the brands they buy over a long time frame, rather than from a single transaction. This also means that customers must see value in returning continually to the stores where they shop, as well as to the service providers they deal with.
Vocabulary from this passage
10 words worth learning before you sit the test, each with the sentence it appears in.
- competitive advantage noun phrase
A strength that helps a business do better than its rivals.
In the passage:
"Competitive advantage lies in being able to recognise which customers can be given greater attention" is a reusable Writing phrase.
Synonyms: edge over rivals, strategic strength
Opposites: disadvantage
- discriminating adjective
Able to judge the quality of things carefully and choose well.
In the passage:
"buyers become better at discriminating" means choosing carefully between products, not treating people unfairly (Q31).
Synonyms: selective, discerning
Opposites: undiscerning
- drowning in verb phrase
Having so much of something that it is hard to deal with it.
In the passage:
Q27 says "too much information to cope with"; the passage says "drowning in it" (paragraph F).
Synonyms: too much information, overwhelmed by
- it would be foolish to verb phrase
Used to say that an action would be unwise and likely to cause harm.
In the passage:
Q30 asks where research is "not advisable"; the passage says "it would be foolish to spend $30,000" (paragraph H).
Synonyms: it would be unwise to, it would not be sensible to
- marketing intelligence noun phrase
Information gathered about customers, competitors and the market.
In the passage:
"marketing intelligence to be gathered" means information about the market, not a clever mind.
Synonyms: market information, market research
- mount verb
To increase gradually and become larger or more serious.
In the passage:
"the costs ... can mount quickly" means rise steadily, not climb or fix onto something.
Synonyms: accumulate, build up
Opposites: fall
- reflect badly on verb phrase
Make someone or something seem bad or less respectable.
In the passage:
Q34 says "gives a poor impression of them"; the passage says information "will reflect badly on their performance" (paragraph F).
Synonyms: poor impression of, damage the reputation of
Opposites: reflect well on
- returning continually verb phrase
Coming back to the same place again and again over time.
In the passage:
Q28 says "repeat business"; the passage says customers "see value in returning continually to the stores" (paragraph A).
Synonyms: repeat business, coming back repeatedly
- strategic asset noun phrase
A valuable resource that helps an organisation reach its long-term goals.
In the passage:
"information not just as an input for making better decisions but also as an important strategic asset" (paragraph D) is a reusable business phrase.
Synonyms: key resource, valuable resource
- withhold information verb phrase
Deliberately not tell people facts they need or want to know.
In the passage:
Q34 says employees "hide information"; the passage says subordinates "may withhold information" (paragraph F).
Synonyms: hide information, conceal facts
Opposites: disclose information
Answers with explanations
- 27. F
The question's **too much information to cope with** is paraphrased twice in paragraph F: managers are **bombarded with** huge numbers of figures, and the writer says **drowning in** information is the problem. Paragraph E mentions a growing supply of information but gives no sense of overload, so it is not the answer.
- 28. A
**Repeat business** is paraphrased as customers **returning continually** to the stores where they shop. Paragraph A makes this the reason marketers need information, which is its **relevance**. Look at the paragraph that contrasts old and new marketing.
- 29. B
Look for a real example. **Channel [V]** lets viewers **sign up** for alerts about **their favourite** artists and songs, so each viewer receives messages tailored to them. That is **personalised marketing** and it is in paragraph B.
- 30. H
Look for an **example with figures**. The writer says it would be **foolish to spend** $30,000 on **additional information** that only lifts profit slightly, which is a case where **commissioning new research** is not advisable. Paragraph H holds the example.
- 31. D
**Greater wealth of customers** is paraphrased as **household incomes increase**, and **select from a broader range** is **choice widens**. Both are in paragraph D, where the writer explains why sellers need more information about what buyers choose.
- 32. NO
The deciding words are **The majority** and **government agencies**. The passage says only **some** information comes from government bodies, while **most of it** is gathered by **marketing organisations**. That contradicts the statement, so the answer is NO.
- 33. NOT GIVEN
The deciding word is **more quickly**, a comparison between **New Zealand and Australia**. The passage names both countries, but only as examples of economies **moving** from industrial to information-based. It never compares their speed, so the answer is NOT GIVEN.
- 34. YES
**Employees** in the statement are **subordinates** in the passage, and hide is **withhold**. A **poor impression of them** is information that will **reflect badly on their performance**. The writer says this may happen, which matches sometimes, so the answer is YES.
- 35. YES
Look at the end of paragraph F. The writer says organisations can supply more information but **often do not use it well**. The statement's **frequently fail to make good use** is that same claim, so the answer is YES.
- 36. YES
Look at the last sentence of the passage. The writer says information is **valueless by itself** and its **value comes from its use**. That is the statement's idea that information **has to be used to be valuable**, so the answer is YES.
- 37. marketing managers
The flow chart follows paragraph G. The passage says the system **begins and ends with** a group, and the first box is where the process starts. That group is **marketing managers**, who are also the ones the MIS then **interacts with**.
- 38. information needs
The box says **Find out their** and the passage says the MIS interacts with the managers **to assess** what they need. The noun it names is **information needs**.
- 39. internal records
The box says **Developed through** with two sources already listed. The passage says the MIS develops information from **internal records**, **marketing intelligence activities** and the **research process**. Only the first source is missing, so the answer is **internal records**.
- 40. analysis unit
The box says **Processed by the**, and the passage says **the analysis unit processes the data**. The next step, distribution to managers, matches the final box, so the missing noun is the **analysis unit**.