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Part II MARKETING

Unit VI MARKETING STRATEGY

EPISODE 1 Marketing Strategies Nowadays

After his management training course at Smallcrown-Liverpool Ltd. Alexander Kuznetsov realized the important role of marketing in a commercial company’s activity and the necessity of having a marketing department in the structure of an enterprise. Having had a preliminary discussion with a marketing agency specialist, he decided to make up a report for Smallcrown-St.Petersburg Ltd. management. He titled his report "Marketing Strategies Nowadays". Some fragments of this report are given below.

***

Originally marketing was meant to help to avoid overproduction. Now marketing is considered to be a system of all business activities of a company in respect of coordinating supply and demand for the goods produced.

Before producing and selling the goods, one must do a lot of market research1. Useful information for this purpose can be obtained from embassies, consulates and foreign trade representatives, from trade magazines or from specialized consultant agencies, which will do a professional market research job for a certain fee.

The information needed is whether there is any demand for your goods, what is the market potential2, what sort of competition is to be met (that is what price of the goods, including those produced

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locally, is considered to be competitive), what domestic preferences, local trading customs and seasonal factors should be taken into account. Actually, marketing covers not only market research, but also planning the assortment of goods, price policy, advertising and promotion of sales3, controlling the sales and post-sales servicing4. So nowadays general marketing strategy includes such essential elements as planning, market research, new product development, sales, communications5 and advertising.

Planning. While speaking of marketing planning, one should think first of all of the so-called controllable and uncontrollable factors. The controllable factors are the following: product, price, place and promotion; the uncontrollable ones - environmental factors. Both these types are very important when one starts analysing the market situation.

Research. Market research is concerned first of all with product choice study and the study of competitors’ interests and their claims6. The most popular methods of conducting marketing research are observation, survey, experiment and public opinion polls through different channels.

Production. Attitudinal research7 should affect the product to be produced, so production is inevitably based on marketing intelligence study8. Marketing investigates stages before, during and after production and also the stage following sales.

Sales. Sales are always involved with customers service of all kinds. Markets for consumer products9 are segmented on the basis of demographic and psychographic data research.

Communications and advertising. The communications mix10 comprises advertising, public relations, direct mail and special events such as product shows, conferences and exhibitions. Advertising is an important means of promoting the goods that have been produced already, as well as new lines in business. Nowadays there are special departments and agencies dealing with advertising. Different kinds of mass media - TV, radio, newspapers, cinema, magazines, posters - are used for advertising aims. Special leaflets, booklets and other printed matter11 v/ith the information about goods may be published for the same purpose. The choice of media for advertising depends on the kind of goods and on the local conditions and people’s habits.

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Vocabulary Notes on the Text

1 market research - изучение конъюнктуры рынка, маркетинговое исследование.

2 market potential - емкость рынка.

3 promotion of sales - мероприятия по содействию сбыта.

4 post-sales servicing - гарантийное обслуживание.

5 communications - зд. организация контактов с потребителями.

6 competitors’ interests and claims - интересы и претензии конкурентов.

7 attitudinal research - исследование мнений потребителей.

8 smarketing intelligence study - изучение информации о рынке.

9 consumer products - потребительские товары.

10 the communications mix - мероприятия по организации контактов с потребителями.

11 printed matter - печатные материалы.

Exercises on the Text

1. Read and translate the text.

2. Translate the following words and learn their pronunciation:

preferences; exhibitions; polls; magazines; leaflets; fee; choice; assortment; promotion; potential; mass media; advertising; experiment; strategy; originally; locally; competitive; attitudinal; environmental; uncontrollable; demographic; psychographic; preliminary

3. Explain the meaning of the following words and phrases in English:

embassy; market research; market potential; seasonal factors; controllable factors; consumer products; the communications mix; overproduction; direct mail; sales promotion; public relations;

4. Give English equivalents for the following Russian words and phrases:

a) емкость рынка; ценовая политика; гарантийное обслуживание; торговые представители; традиции и обычаи; организация контактов с потребителями; факторы, связанные с внешней средой; связи с общественностью

b) избежать перепроизводства; координировать спрос и предложение; проводить выставки и конференции; считаться конкурентоспособным; включать в себя рекламное дело; проводить сегментацию рынка; влиять на выбор продукции

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5. Answer the following questions:

  • 1) What did Kuznetsov realize during his stay in Liverpool?

  • 2) What did he do after a preliminary discussion with a marketing agency specialist?

  • 3) What was the original aim of marketing?

  • 4) What is the main purpose of marketing nowadays?

  • 5) Where can information for market research be obtained?

  • 6) What are the most important parts of any marketing research?

  • 7) How many parts does marketing strategy include?

  • 8) What is meant by planning?

  • 9) Why is production inevitably based on marketing study?

  • 10) What is the aim of advertising?

  • 11) What are the main channels of advertising?

6. Retell the text according to the following plan:

  • 1) The aims of marketing.

  • 2) Types and sources of information for a market research.

  • 3) Planning, production and sales as parts of marketing strategy.

  • 4) Communications and advertising as parts of marketing strategy.

Vocabulary and Speech Exercises

7. Say in English:

наблюдение; обзор; эксперимент; опрос общественного мнения; демонстрация товара; конференция; выставка; рекламный листок; буклет; рекламный плакат; печатный материал

8. Give verbs corresponding to the following nouns:

production; sales; communications; advertisement; information; management; discussion; market; research; assortment; development; analysis; relation; promotion; observation; experiment; competition; preference; choice; deal

9. Insert the correct prepositions:

1) The development__industry and agriculture, the progress__the scientific and technological revolution have made the international division__labour more evident and necessary.

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2) This facilitates international trade which___its turn promotes peace, trust and understanding__countries__different social systems.

3) Developing countries are creating their own manufacturing industries and are changing traditional patterns__trade.

4) Their products are sometimes cheaper and__higher quality because__lower costs and free availability__local raw materials.

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