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3. What can you say about pricing? (u.23)

Pricing is the process of determining what a company will receive in exchange for its products.

Pricing is one of the four Ps of the marketing mix. Price is the only revenue generating element amongst the four Ps, the rest being cost centers.

Goods can be:

  • Low-priced, cheap

  • High-priced, expensive

  • Mid-priced – not cheap and not expensive

List price is a recommended retail price.

Policy of discounting is a selling at a discount to the list price.

4. What types of shops do you know? (u.24)

A shop or store may be referred to technically, for example by a maker of goods, as a retail outlet or sales outlet. I know the following types of shops:

1) Chain store is a shop that is part of group of shops, all with the same name

2) Convenience store is a shop in town that is open long hours

3) Discounter is a wholesaler or retailer with very low prices

4) Department store is a very large shop, usually in a town centre

5) Hypermarket is a very large shop with a wide variety of goods, usually outside a town

6) Supermarket is a very large shop, selling mainly food

5. What is direct marketing? (u.24)

Direct marketing is a form of advertising that allows companies to communicate straight to the customer, with advertising through mobile messaging, email, online display ads, fliers, promotional letters, and outdoor advertising.

Direct marketers can organize mailings, sending direct mail by post for everything. People who dislike receiving it often call it junk mail. Marketers target their mailing list very carefully because for example it doesn’t make sense to send mailshots for garden tools to people who live in flats.

They also do telemarketing. It means selling by telephone from their call centres. But making cold calls to people you have never contacted with before could be a very difficult thing.

6. What advertising media can you name? (u.25)

I know the following types of a advertising medium: classified advertisements, special displays, open-air hoardings, billboards, TV commercial.

A series of advertisements for a particular company, product, etc. is an advertising campaign.

A television advertisement is also called a commercial.

A person or business that advertises is an advertiser. An organization that designs and manages advertising is an advertising agency.

Another form of advertising is sponsorship, where companies sponsor events like concerts and sports events, by paying some of the costs or paying for their products to be displayed.

7. What promotional activities may be used by retailers? (u.25)

Promotion can refer to all the activities designed to support the sale of a product, including advertising. A promotion can describe:

  • A special offer such as a discount or reduced price

  • A free sample- a small amount of the product to try or taste

  • A free gift given away with the product

  • A competition with prizes

Supermarkets, chain stores and airlines also offer loyalty cards – the more you spend, the more you points you get, and you can exchange these points for free goods or flights.

A cross- promotion is where you buy one product, and you are recommended to buy another product.

Advertisements where famous people recommend the product are product endorsements.

Product placement is when a company pays for its products to be used or seen in films and TV programmes.

Module 4 Student’s book