Of the marketing mix – product, price, place, promotion.

 

advertising	credit terms	warehousing
commercials	free samples	discounts
features	packaging	distribution channels
points of sale	posters	guarantee
public relations	publicity	personal selling
retailing	brand name	production costs
transportation	payment period	wholesaling
after-sales service	quality	sponsorship

 

PRODUCT	PRICE	PLACE	PROMOTION
_______________	_______________	_______________	_______________
_______________	_______________	_______________	_______________
_______________	_______________	_______________	_______________
_______________	_______________	_______________	_______________
_______________	_______________	_______________	_______________
_______________	_______________	_______________	_______________

THE FOUR Ps

The four Ps are:

· Product: deciding what products and/or services to sell

· Price: setting prices that are attractive to customers and that are profitable for the company

· Place: finding suitable distribution channels and outlets to reach the customer groups

· Promotion: all the activities, not just advertising, used to support the product: everything from pre-sales information to after-sales service

MORE Ps

Some more Ps are sometimes added to the marketing mix.

They are:

· People: everyone involved, from producer to consumer

· Packaging: all the materials used to protect and present a product before it is sold

· Physical evidence: anything that shows the existence of the company, e.g. its buildings, vehicles, website, etc.

· Process: the interaction between everyone involved

These Ps are a summary of the marketing mix, the activities that you have to combine successfully in order to sell.

Ex.49. Fill in the missing words in this description of the marketing mix.

 

The traditional marketing mix was described in terms of four Ps:

1. Product, the goods or services.

2. P _____________, the cost of the product.

3. P _____________, often called distribution.

4. P _____________, which aims to make people aware of the product.

 

In recent years other considerations have been added, giving a mix of normally seven Ps. The additional three, sometimes referred to as service Ps, are:

5. P ______________, or everyone involved, from producer to customer

6. P _______________ e________________, or anything that shows the existence of the

company, e.g. its buildings, vehicles, website, etc.

7. P ______________, which is the interaction between everyone involved.

Ex. 50. Peter Bowen of Citimetal Inc. is talking to Anna James, a marketing consultant.

Complete Anna’s part of the conversation. Choose from the following:

a. And then the fourth area is physical evidence.

b. It covers both goods and services offered by the company.

c. Exactly – and the desire to buy the product. And, finally, people, which means colleagues,

employees, agents and customers. The idea is to keep everyone happy, make personal contact.

d. Yes. This means any visual presence or signs suggesting the company.

e. The second area is place – also called distribution – meaning the movement of goods from the

producer to the consumer.

f. Well, we identified six areas where improvement is necessary.

g. After place, process. Process is the interaction between people and systems at all stages, from

market research, design, production, delivery and after-sales.

h. The first is product.

i. Promotion.

Peter: So, what have you got to report?

Anna: ______ f ___________________

Peter: Really? What are they?

Anna: _________________________

Peter: And what exactly does that term cover?

Anna: _________________________

Peter: I see. What else?

Anna: _________________________

Peter: And after place, what’s next?

Anna: _________________________

Peter: Yes, I understand – co-ordination of systems.

Anna: _________________________

Peter: Physical evidence?

Anna: _________________________

Peter: Everything visual. Right, I follow you. And what’s the next area?

Anna: _________________________

Peter: So, that’s creating consumer awareness and establishing the brand identity?

Anna: _________________________

 

 

Ex. 51. Read the text about marketing and promotion and decide how much they are

Important for success in business.

 

Text 11

MARKETING AND PROMOTION

VOCABULARY

 

feasible – выполнимый, осуществимый

to assess – оценить

Trade Fair – торговая ярмарка

range – ассортимент

to launch a product – запуск товара на рынок

to make inquiries – наводить справки

to place an order – размещать заказ

delivery – доставка

to supply spare parts – поставлять запасные части

component – деталь

to service (to maintain) – обслуживать

 

When a company starts to sell goods in a new market, they often do some market researchto see if the project is feasible. They research the market potential to see if they will make money by selling in the new market.

One way to assess the market potential is to take a stand toa Trade Fair where companies can exhibit samplesof their products and see what reactionthey get from potentialcustomers. The Trade Fair is an exhibition of goods, and a company exhibits a sample of its product at its stand. This is also a form of publicity (or advertising)and the company representative will probably hand out brochures to advertise the product further. Often journalists write about the Trade Fair and sometimes companies hold a press conference if they want to promote a particular model or range. The full range of goods is normally displayed in the company's catalogue.

Another way of promoting a new product is to place advertisementsin magazines or newspapers. Advertisements are also called adverts or ads for short. A plan to do a lot of advertising of one product is called a campaign.Starting an advertising campaign on a new product is known as launching the product.

The aim of promotion is to interest customers, clients in the product. Initially customers might make inquiries about the product. When they decide to buy, they place an order. At a Trade Fair companies are trying to obtain as many orders as possible. However, before a client places an order he wants to know many things: how long delivery takes, whether the company can supplyspare parts, what the.after sales serviceis like. All the individual parts in a model are called components. If one of the components breaks the customer will want a spare part. If the product is complicated, skilled workers might be needed to serviceor maintain the machinery. Any maintenanceor servicingthe company does after it has sold the product is called after sales service.

 

 

Ex. 52. Choose the right answer.

 

1. Before starting to sell its product, a company often ________________.

a) makes inquiries b) places an order c) does some market research

 

2. The Trade Fair is _________________.

a) market research b) an exhibition of goods c)after sales service

 

3. All different models made by a company make up its ______________.

a) catalogue b) brochure c) range

 

4. A plan to do a lot of advertising of one product is called ______________.

a) campaign b) press c) publicity

 

5. If one of the components of the machinery breaks, the customer will want _____________.

a) an order b) a spare part c)a catalogue

 

 

Ex. 53. Next to the sentences below write a word or a phrase from the text which you can

Use instead of the word or words in italics.

 

1. The market research is often done to see if it is possible to launch product/project. _________

2. A Trade Fair is a show where you can exhibit samples of your products.__________________

3. The full set of goods is normally displayed in the company's catalogue. __________________

4. Customers may ask questions about the products advertised.___________________________

5. It is very important for customers whether the company will give them spare parts._________

6. When a company services the machinery after it has sold the product, it provides after sales

service. _________________________

7. Sometimes companies organize a press conference if they want to promote a particular model

________________________

8. Companies investigate the market potential. _________________________

9. At a Trade Fair companies can see what reactionthey get from future customers. _________

10. A company shows a sample of its product at its stand. _________________________

11. The company representatives hand out brochures to promote the product further.__________

 

_____________________________________________________________________________

FINAL QUESTIONNAIRE

_____________________________________________________________________________

 

1. What are the elements of the marketing mix?

2. Which is the most important in the marketing mix?

3. Are today’s companies product-oriented or market-oriented?

4. What do the companies spend a lot of money on?

5. Why do consumers buy products?

6. Who are products sold to?

7. What types of product do you know?

8. What are consumer goods? Give examples.

9. What are consumer services? Give examples.

10. What are producer goods? Give examples.

11. What are producer services? Give examples.

12. What is the most important thing about the product?

 

13. What does the price depend on?

14. What two basic questions must be answered when deciding on price?

15. How can the price of agricultural products be determined?

16. Who are the prices on industrial products usually decided by?

17. What prices can be set by the government?

18. What factors affect prices?

19. What products usually have higher mark-ups?

20. Give a formula of a selling price.

 

21. What is a channel of distribution?

22. What is a major factor of distribution management?

23. How do manufacturers sell their products if they use the first channel of distribution?

24. If the producer sells directly to the retail outlets, what channel of distribution is used?

25. What channel involves using a wholesaler?

26. What products are usually purchased by retailers in small quantities?

27. In what case does the manufacturer use an agent in the other country?

28. What questions do manufacturers have to ask themselves when deciding what channel of

distribution to use?

29. What sort of salespeople does a manufacturer need if he wants to sell a technical product?

30. Which is the best way to sell newspapers?

31. What shops will the expensive and high quality product be probably sold through?

32. Why is location of customers important?

33. What is the role of packaging?

34. What forms of transport can be used to distribute products?

 

35. What does promotion involve?

36. What important methods does promotion include?

37. What is called informative promotion?

38. What is called persuasive promotion?

39. What is called reminder promotion?

40. What types of promotion do you know?

 

UNIT 3 ADVERTISING

 

DISCUSSION

 

What picture does the word “advertising” present to your mind? Smiling girls on TV persuading you to buy a new toothpaste with the flavour of chocolate? Or a merry voice on the radio that speaks about new credits of a bank which has recently opened its doors in your town? Or lots of useless colourful paper in your mailbox? Is that all? I think the imagination of the majority of people is limited to this. Nevertheless, as you can guess or even know advertising comprises much more than that. Here are some questions for you to think over.

 

1. What is the aim of most advertisements these days – to persuade you to buy the product, to

inform you about a new product or to remind you about a well-known product?

2. What influences you the most when you are shopping: the price of a product, its appearance or

the advertising promoting it?

3. Do you think there are too many advertisements on TV? How many do you think there should

be?

4. Have you ever bought anything just because you saw it advertised on TV?

5. What famous advertising slogans can you remember? Why are they so memorable?

6. What is your favourite advert at the moment? Why do you like it so much?

7. Which adverts annoy you the most and why?

8. What do you know about gimmicks (уловки, хитрости) used in advertisements?

9. Are there any laws prohibiting advertisements of some products?

10. What influence does advertising have on our minds?

11. Is it necessary in our life or can we do without it?