Ex. 18. Marketing plans are affected by a great variety of situations.

Tick the letter following the response which most accurately completes the statement.

 

1. A company in Barcelona selling ventilating and air conditioning equipment to the United

States would expect their sales to increase if

a) a new president who favours protectionism is elected in the USA.

b) the “greenhouse effect” produces substantial global warming.

c) the value of the US dollar is falling against the peseta.

 

2. A motor insurance company would welcome

a) a relaxation of the laws against drinking and driving.

b) a fall in the sale of new motor cars.

c) a mild winter.

 

3. If a government discourages smoking by prohibiting advertising or raising the tax on

cigarettes, manufactures will be likely to

a) lower the price of cigarettes.

b) step up their sales campaign in countries where the laws are more liberal.

c) close down.

 

4. According to marketing theory every product has a life cycle and this cannot be extended by

a) product modification.

b) market research.

c) raising prices.

 

5. A manufacturing company would make more profit in the long run by

a) raising the prices of its goods.

b) cutting its costs.

c) spending more on advertising.

 

6. Market research is necessary before going into a new market in order to

a) publicize your product.

b) ensure sufficient finances are available.

c) understand the nature and extent of the market.

 

7. The breakdown of a market into separate, identifiable elements is described as

a) market research.

b) market segmentation.

c) diversification.

 

8. A manufacturer planning to sell tractors in other countries would be advised to

a) contact the farming communities in the other countries by sending them letters and

brochures.

b) make a tour of various other countries.

c) display his tractors at international agricultural fairs and exhibitions.

 

 

Ex. 19. Add the word market either before or after each of the words below. Translate the

Collocations.

 

1. ____________________ forces _____________________

2. ____________________ seller’s ____________________

3. ____________________ leader _____________________

4. ____________________ free _______________________

5. ____________________ segment ___________________

6. ____________________ labour _____________________

7. ____________________ price ______________________

8. ____________________ research ___________________

9. ____________________ steady _____________________

10. ___________________ growth ____________________

11. ___________________ buyer’s ____________________

12. ___________________ open ______________________

13. ___________________equilibrium _________________

14. ___________________ stock ______________________

 

 

SUPPLEMENTARY READING

 

Ex. 20. Read the text and answer the questions that follow.

Text 4 MARKET SURVEY

VOCABULARY

 

market survey – изучение рынка to collect data – собирать данные

sales area – район сбыта to conduct a survey – проводить опрос

thorough – тщательный to enable – давать возможность

under consideration – рассматриваемый, обсуждаемый

survey – опрос, анкетирование

 

It is very important to have the facts about how many potential customers are in your sales area and to know their needs and wishes before you invest. This requires thorough study of the market you propose to serve.

Market survey is a way to determine a reasonably attainable sales volume in a specific market area for a specific type of business. This means finding out how many potential consumers for the planned good or service there are in this market and how many of them can be expected to become customers of the firm under consideration.

To collect market information “people surveys” are of great importance. Firm marketers may use 3 different types of people interviews. These are: 1. Telephone survey, 2. Mail surveys, 3. Personal interviews. Specific questions that will later be analyzed should be built into each type of interview questionnaires. Each type of interview has characteristics that can be summarized as follows:

1. Telephone surveys. This type of interview offers the advantage of economy and speed in collection of desired data. To be effective, telephone surveys demand short, clear, and easily understood questions.

2. Mail surveys. Using the mail to gather basic data is more expensive than telephone interviews but still much less expensive that personal interviews, especially when a large market area is being studied.

3. Personal interviews. Personal interviews require much more time than other types and, accordingly, are the most expensive kind of survey to conduct. But they are usually considered the most reliable. They enable the interviewer to identify the areas of information that may be valuable in the final analysis of data collected.

 

1. Why is thorough study of the market required?

2. What is a market survey?

3. What is important in order to collect market information?

4. How many types of people interviewers may marketers use and what are they?

5. What is the advantage of telephone survey?

6. Which type of surveys is more suitable when a large market area is being studied?

7. Which type of surveys is the most expensive?

8. Why are personal interviews considered to be the most reliable?

 

 

DISCUSSION

 

1. Compare telephone surveys, mail surveys, and personal interviews for cost, coverage, and

effectiveness.

2. Explain how would you proceed if you planned to make your own market survey for a new

grocery in your hometown.

3. Prepare sample questions you would include in a telephone survey, a mail survey, and a

personal interview. Explain how they would differ.

4. Do you feel competent to make a market survey now?

 

 

Ex. 21. Divide the text into two parts for two groups of students and translate it into

Russian in written form.

 

Research and Development department – отдел исследований и разработок

 

Text 5

Why is market research needed?

Businesses can make products and hope that they will sell them but this is very risky.

A business needs to find out how many people would want to buy the product it is offering for sale. If there is not a very big market for the product, a great deal of money could be wasted producing goods that not many people will buy. It could even cause the business to go bankrupt. Therefore, it is very important that market research is carried out accurately.

We must have a clear idea of what the customers need, what the customers want, what causes them to buy. The ability to recognize early trends is very important. Producers must know why, where, for what purpose the consumers buy. Market research helps the producer to predict what people will want.

To do this, most businesses, unless they are very small, have a Marketing department which carries out market research. The bigger the company, the more people will be employed in the Marketing department, and the more sections there are.

· The Sales department is responsible for the sales of the product. It will usually have separate sections for each region to which the product is distributed. If the product is exported, there may also be an Export department.

· The Research and Development department is usually responsible for market research and testing new products to see if they might be suitable to start selling to consumers.

· The Promotion department deals with organizing the advertising for products. It arranges production of advertisements. For example, adverts are filmed if they are to be on television, or designed if they are to be in newspapers. The department also decides on the types of promotion. It has to decide which types of advertising media will be the most effective to use.

· The Distribution department deals with transporting the products to the market.

Marketing operations are very expensive. They take more than half of the customer’s dollar.

 

 

Discussion

 

1. In which department – Sales, Research and Development, Promotion or Distribution – do each of the following people work?

a) Anya spends most of her time in other countries showing the product to people who buy stock for large retail groups.

b) Mohamed spends his time arranging for adverts of the product to be placed in newspapers and magazines.

c) Paul spends his time producing new products.

d) Mary organizes the airline flights for the products to be sent to their markets.

 

____________________________________________________________________________

 

FINAL QUESTIONNAIRE

_____________________________________________________________________________

 

1. What makes economic independence inevitable?

2. What is the most common way to obtain goods and services?

3. What is the oldest form of a market?

4. What is a market?

5. Name the two ways in which buyers and sellers can conduct transactions.

6. Is it necessary for buyer and sellers to meet at a particular location to conduct transactions?

7. By what means can you order goods you like?

8. What is the purpose of a market?

9. What influences the actual amount of goods and services on the market?

10. Why do prices play a vital role in the economy?

 

11. What science is marketing closely related to?

12. When does a human need occur?

13. What is a want?

14. Can you explain why many sellers confuse wants and needs?

15. What activities do marketing operations include?

16. Is marketing made up only of transporting, selling and promotion?

17. What marketing concept underlines all marketing strategy?

18. Why is market research needed?

19. By what means is a standard of living delivered to people?

 

20. What is market segmentation?

21. What are the most common ways a market can be segmented?

22. Explain market segmentation by income group.

23. Explain market segmentation by age.

24. Explain market segmentation by region.

25. Explain market segmentation by gender.

26. Explain market segmentation by use of the product.

27. Explain market segmentation by lifestyle.

28. What is a gap in the market?

 

29. What is a market survey?

30. How many types of people interviewers may marketers use and what are they?

31. What is the advantage of telephone survey?

32. Which type of surveys is more suitable when a large market area is being studied?

33. Which type of surveys is the most expensive?

34. Why are personal interviews considered to be the most reliable?

 

35. What can cause the business to go bankrupt?

36. What must producers know in order to recognize early trends?

37. What department carries out market research?

38. What sections does a Marketing department have?

39. What is Sales department responsible for?

40. What section may a Sales department have if a product is exported?

41. What department deals with advertising and promotion?

 

 

UNIT 2 Marketing Mix

WORD STUDY EXERCISES

 

Product

A product can be:

• something natural

• something made to be sold

• a service

Something that is made is produced or manufactured.

A country or company that produces something is a producer of it.

A company that manufactures something is a maker or manufacturer of manufactured goods.

Output - is the number of things that a plant, company, industry or country produces.

Productivity -is a measure of how much is produced in relation to the number of employees. High output per employee = high productivity.