Учебник Английский язык

Module 3

Part 7 MARKETING AND ITS COMPONENTS

Definition of Marketing

1. There are many different definitions of marketing. Consider some of the following alternative definitions. Which definition is right in your view? Give reasons for the most correct one.

∙‘The all-embracing function that links the business with customer needs and wants in order to get the right product to the right place at the right time’

∙‘The achievement of corporate goals through meeting and exceeding customer needs better than the competition’

∙‘The management process that identifies, anticipates and supplies customer requirements efficiently and profitably’

∙‘Marketing may be defined as a set of human activities directed at facilitating and consummating exchanges’

In short, all definitions are right. They all try to embody the essence of marketing:

∙Marketing is about meeting the needs and wants of customers;

∙Marketing is a business-wide function – it is not something that operates alone from other business activities;

∙Marketing is about understanding customers and finding ways to provide products or services which customers demand

B.Tell about key elements of marketing and their relationships. Work in pairs to comment this diagram.

READING

1. Complete the text using the correct form of these verbs:

What is Marketing?

anticipate	divide	fill	influence	involve
modify	offer	share	sell	understand

A market can be defined as all the potential customers (1) ……… a particular need or want. Marketing is the process of developing, pricing, distributing and promoting the goods or services that satisfy such needs. Marketing therefore combines market research, new product development, distribution, advertising, promotion, product improvement, and so on. According to this definition, marketing begins and ends with the customer. Truly successful marketing

(2) ......... the customer so well that the product or service satisfies a need so perfectly that the customer is desperate to buy it. The product almost (3) ………

itself. Of course this will only happen if the product or service is better than those of competitors.

Companies are always looking for marketing opportunities - possibilities of

(4) ……… unsatisfied needs in areas in which they are likely to enjoy a differential advantage, due to their particular competencies. Marketing opportunities are generally isolated by market segmentation - (5) ......... a market into submarkets or segments according to customers requirements or buying habits. Once a target market has been identified, a company has to decide what goods or services to

(6) ........., always remembering the existence of competitors.

Marketers do not only identify consumer needs; they can (7)......... them by developing new products. They will then have to design marketing strategies and plan marketing programmes, and then organize, implement, and control the marketing effort. Once the basic offer, for example a product concept, has been established, the company has to think about the marketing mix — the set of all the various elements of a marketing programme, their integration, and the amount of effort that a company can expend on them in order to (8)......... the target market. The best-known classification of these elements is the 4 P’s: Product, Price, Promotion and Place.

Aspects to be considered in marketing a product include its quality, its features, style, brand name, size, packaging, services and guarantee, while price includes consideration of things like the basic list price, discounts, the length of the payment period, and possible credit terms. Place in a marketing mix includes such factors as distribution channels, coverage of the market, locations of points of sale, inventory size, and so on. Promotion groups together advertising, publicity, sales promotion, and personal selling.

The next stage is to create long-term demand, perhaps by (9)......... particular features of the product to satisfy changes in consumer needs or market conditions.

Marketing can also involve the attempt to influence or change consumers’ needs and wants. Companies try to do this in order to sell their products; governments and health authorities sometimes try to change people’s habits for their own good or for the general good. In other words, marketing also (10) ......... regulating the level, timing and character of demand.

2.Now translate the highlighted expressions in the text into your own language.

3.Work in groups and prepare an empty diagram on the basis of the text ‘What is Marketing?’ Exchange the diagrams and complete them.

MIND MAP

1. Look at the mind map, discuss in groups nature of markets and present

your results to the class
	Demand	Tastes
	Price	Price of other
	demand	goods
Labour	Population
Goods		Advertising

Financial

Buyers

Level of technology

Energy

Capital

Price

Natural factors

Transport			Types			suppl			Costs
			of
							y
			market
Commodities				Markets
									seller
									s
									Buyers - values
	Waste products						Signal
									Sellers -
			Change		Price				demand
Changing									High
			s		s
profitability
				Rising	Falling				Low
Changes in supply
				Demad & Supply					In relation to
									what?

2. Imagine that you are going into a local shop - it can be any type or size of shop. Type in your responses to the fallowing questions:

∙Why are you going into the shop you have chosen?

∙Identify two things you will look for in deciding what to buy in the shop.

∙What do you think the people who own and/or work in the shop are trying to do?

∙Identify two things that the shop owners/workers might consider in the way they set out the goods/services in the shop.

∙Do you think a shop is an example of a market? Give a reason for your answer.

3. Look carefully at each of the images below.

1

2

3 4

All of the images here represent some form of market where buyers and sellers are being brought together. In pairs, see if you can identify the following:

∙Who might the buyers be in each example above?

∙What is being sold in each case?

∙What factors might determine how much of each item will be sold? Compare your answers with those of other pairs in your class.

4.Do a brainstorm session on the factors that affect spending decisions by buyers and sellers. Brainstorming means you don’t have to give any reasons; just think of as many factors as possible. You could write down the list as a table with ‘buyers’ in one column and ‘sellers’ in another. Alternatively, you could produce a poster with all your ideas on - one for buyers and one for sellers, or you could even

produce a mind map. If you decide on a poster or mind map, try to make it as colourful as possible.

5. The word search below contains a range of different activities/names that involve markets. Identify all the words and then explain what sort of market you think each word is and what is being bought and sold. The example below shows you how to set out the task using the word 'bank':

Example: Bank - financial market for buying and selling banking services such as deposits, loans, insurance, mortgages and buying currency.

Go straight to Demand and Supply

∙Restaurant

∙Leisure centre

∙HMV

∙Top Shop

∙Phones 4U

∙Supermarket

∙Cafe

∙Hotel

∙Bank

∙Insurance

∙Theme park

∙Plumber

∙Hairdresser

∙Pub

∙Travel agent

∙Lawyer

∙eBay

∙Taxi

∙Bus

∙Petrol station

H	G	F	P U B	T E		I I O B			T	M B
A S S			H U L	S	T	B	X	J V	H N		A
I	Q	U R I N S			U R		A	N C	E	O	N

R T

W P

D F

V X E T Y R M I

K

D N D H E

D X P S

U B K E

T Y

R E

F

O D R H

O T

E

L

P P

A G

E

G

T

N B V M A

A R

T

O

A T A

S

A

U E

T

I V

A

U G D H

R S T

S L

L S

G

G P R

R E Y S

K L R

E E

Z

4

S

X E W A K R

P

T

O Y

R V C U W Y L

A N N E

O P

R U

E A F

G

W S

C

T

T

S

G T

C T

I

J R

O A

A T

A Y P

L

U M B E

R

C	T	L W	Q	U	F	P F	S K O	S	P D
L	E	I S U		R	E	C E	N T R	E	K E

6. Complete the text using these words:

appealing	competing	developing	forecasting	dividing
existing	minimizing	purchasing	switching	targeting

Market segmentation means (l)......... market into distinct subsets of customers with different needs, according to different variables that can play a role in (2).........

decisions. These can include geographical factors - region, population density (urban, suburban, rural), size of town, and climate; demographic factors such as age, sex, family size, or stage in the family life cycle; and other variables including income, occupation, education, social class, life style, and personality.

If there is only one brand in a market, it is likely to be positioned in the centre, so as to attract the most consumers possible. (3)......... to all groups from the centre with an undifferentiated product gives a company the largest potential market, while (4) ......... production, inventory, market research and product management costs. A new competitor can either situate its product next to the (5)

……… one, in a straightforward battle for market share, or try to find a corner of the market in order to gain the loyalty of a consumer group not satisfied with the centre brand.

If there are several brands in the market, they are likely to position themselves fairly evenly throughout the space and show real differences to match differences in consumer preference. If, on the other hand, several producers are

(6)......... for the largest centre segment, new entrants onto the market will probably find that smaller segments with less competition are more profitable.

In fact, (7)……… a particular market segment is often the only realistic strategy for firms with limited resources, although it can be risky, as the segment might get smaller or even disappear, or be attacked by a larger competitor,

At the beginning of a product's life cycle, companies often produce only one version, and attempt to develop demand by undifferentiated marketing, before

(8)......... to differentiated marketing in the product's maturity stage.

Differentiated marketing involves (9) ……… several brands, each positioned in a different segment. This obviously maximizes total sales, but equally increases R&.D, planning, market research, (10)........., production, promotion, administration and inventory costs.

7. How many of these verbs also exist unchanged as nouns? What are the nouns related to the other verbs?

appeal	battle	brand	centre	compete
consume	cost	cycle	develop	forecast
gain	increase	manage	mature	need
position	prefer	purchase	research	risk
segment	share	situate	switch	target

Market Research

READING

1. a) What is ‘market research’? What things are researched when this marketing activity is conducted?

b) Read the text and check your ideas.

Market Research

Oh no, we’d never develop and launch a product solely on the basis of guesswork. That’s much too risky. You can’t just trust the intuition of senior managers or product managers, you have to do market research. That’s what we call it in Britain; in the States they say marketing research. We collect and analyse only engage in field work, and gather primary data from customers, information about the size of a potential market, about consumers’ tastes and habits their reactions to particular product features, packaging features, and so on.

Lots of people think that market research just means going out and asking consumers for their opinions of products, but that’s not true. Actually, talking to customers is a relatively minor market research toot, because it’s very expensive. In fact, personal interviewing is the very last thing we’d do. We usually find that our own accounts department, which keeps records of sales, orders, inventory size, and so on, is a far more important source of information. Our sales representatives are another good source.

There are also a lot of printed sources of secondary data we can use, including daily, weekly and monthly business newspapers, magazines and trade journals, our competitors’ annual reports, official government statistics, and reports published by private market research companies. We both internal research (analysis of data already available in the accounts and sales departments) and secondary data (available in printed sources) are inadequate.

If we do go out and do field work it’s usually a survey, which you can use to collect information about product and packaging features, and to measure the effectiveness of advertising copy, advertising media, sales promotions, distribution channels, and so on.

An effective and relatively inexpensive method of survey research is the focus group interview, where we invite several members of the target market (and pay them a small amount of money) to meet and discuss a product concept. The interview is led by a trained market researcher who tries to find out the potential consumers’ opinions and feelings about the product.

Focus groups are informative, but they’re usually too small for us to be sure that the chosen sample of consumers is statistically valid. Questionnaire research, involving many more respondents, is more likely to be statistically significant as long as we make sure we select the appropriate sampling unit - whether it’s a random sample of the population, or a sample of a selected category of people - and the sample size is sufficiently large. When we’ve established a sample, we do the interviews, normally by telephone or mail, sometimes by personal interviewing.

2. Answer the questions.

1 Who is responsible for market research?

2 What are the sources for getting information during market research? 3 What methods of market research can you name?

4 What is the cheapest/most expensive method of market research? 5 What method would you choose if you had to research the market?

READING 2

1. Read the text below which describes how Shell Oil developed a new brand image, and see if it mentions any of the market research methods. What techniques did Shell Oil use?

HELLO TO GOODBUYS

A new marketing campaign promising hassle free and faster fuel buying for customers is under way in America. Suzanne Peck reports on the 18-month research project which involved Shell Oil researchers 'moving in' with their customers to test their buying habits.

1 Three years ago when Sam Morasca asked his wife what could be done to exceed her expectations when buying gasoline, her answer ‘that I would never have to think about it any more’ made him pause and think. The marketing people from Shell Oil Products, of which Sam is vice-president, were desperately seeking ways to increase the business, and to come up with a strategy which would put them clearly ahead of their competition by differentiating the Shell Oil brands in the eyes of consumers. ‘We are big business for Shell Oil, contributing US $7 bn of revenue, and the leading retailer of gasoline, but it is a fragmented market and the mission was to profitably expand the business,’ said Sam.

2 Today, after 18 months of cutting edge research, Shell Oil is on track to make buying fuel at their 8,900 service stations clearly different with a new brand initiative. Its aim is to deliver through facilities, systems upgrades, and new operating practices, a hassle-free fueling experience targeted at specific customer segments.

3 Over the past few years, the company has been developing detailed knowledge of consumer needs and attitudes, which formed the basis for the new brand initiative. Team leader Dave Yard, manager of Strategy and Planning - Marketing, picks up the story. ‘We began with a customer segment study of 55,000 people, who we stopped in shopping malls in six cities for a 45-minute interview into their attitudes, especially regarding driving and cars. The result was that competitive price, a nearby location and good quality fuel -something they all believed was already being delivered by the industry.’

4 This meant their buying decisions were influenced by other factors - some wanted full-serve outlets like the old days, some chose a service station depending on whether it looked safe or not. ‘There were ten different segments with different needs, and we wanted a better understanding of each of these audiences.’

5 A focus group was set up for each segment; an anthropological study was carried out, which involved team members spending waking hours with people from each segment, watching them at home and accompanying them on shopping trips to see their buying habits; and a clinical psychologist was hired to create a psychological profile of each segment.

6 The study indicated that three groups, which comprised 30% of the driving public, should be targeted:

Premium Speeders - outgoing, ambitious, competitive and detail orientated. They drive upmarket cars which make a statement about them. Efficiency