Marketing

1. Generalities

One of the areas of management is marketing. Marketing is the process of planning and executing the conception, pric­ing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

Marketing makes products available where customers want them by transferring the ownership of products to buyers. The entire business organization is involved in a dual process of satis­fying customer needs and achieving organizational goals.

Implementation of marketing concept begins and ends with marketing information about customers — first to determine what customers need, and later to evaluate how well the firm is meeting those needs.

A market consists of people with their needs, the ability to buy, and the desire and ability to sell. Markets are classified as con­sumer and industrial markets.

2. A marketing mix

A business firm controls four important elements of marketing which are called a marketing mix.

A firm's marketing mix is the combination of the product, the price of the product, the means for its distribution, and the promo­tion of the product to reach a firm's target market.

A firm can vary its marketing mix by changing any one or more of these ingredients. Thus a firm may use one marketing mix to reach one target market and a second, somewhat different marketing mix, to reach another target market. For example, most automakers produce several different types of vehicles and aim them at different market segments based on age and income.

1) The product ingredient of the marketing mix includes deci­sions about the product's design, brand name, packaging, warran­ties, and the like.

2) The pricing ingredient includes both base prices and dis­counts of various kinds. Pricing decisions are intended to achieve particular goals, such as to maximize profit or even to make room for new models. The rebates offered by automobile manufactur­ers are a pricing strategy developed to boost low auto sales.

3) The distribution ingredient involves not only transportation and storage but also the selection of intermediaries.

4) The promotion ingredient focuses on providing information to target markets. The major forms of promotion include advertis­ing and publicity.

The "ingredients" of the marketing mix are controllable ele­ments. A firm can vary each of them to suit its organizational goals, marketing goals, and target markets.

3. A marketing strategy

A marketing strategy is a plan for the best use of an organi­zation's resources to reach its objectives. Developing a market­ing strategy involves selecting and analyzing a target market and creating and maintaining a marketing mix that will satisfy that market.

A target market is chosen through the market segmentation approach. A market segment is a group of individuals or organiza­tions within a market that have similar characteristics and needs. The market segmentation approach directs a marketing mix at a segment of a market.

Market measurement and sales forecasting are used to esti­mate sales potential and predict product sales in specific market segments. Strategies are then monitored and evaluated through marketing research and marketing information system, which stores and processes internal and external data in a form suitable for marketing decision making.

III. a) Give English equivalents:

делать продукцию доступной, удовлетворять потребности покупателей, способность покупать, желание и возможность продавать, потребительский рынок, промышленный рынок, производить различные транспортные средства.

b) Give Russian equivalents:

to aim at, to be based on, age and income, product’s design, brand name, base prices, discounts of various kinds, to achieve particular goals, to maximize profit, to make room for new models, to boost low auto sales, storage, advertising, to suit organizational goals.

IV. Complete the sentences.

2. Marketing is the process of planning …

3. The entire business organization is …

4. Implementation of marketing concept …

5. A market consists of people with …

6. A firm’s marketing mix is the …

7. Thus a firm may use …

8. Pricing decisions are intended …

9. The promotion ingredient focuses….

V. Agree or disagree to the following.

1. Marketing and management are quite different things.

1. A market consists of people with their needs, the ability to buy, and the desire and ability to sell.

1. There are 4 types of markets.

1. A business firm controls 3 important elements of marketing which are called a marketing target.

1. These 4 ingredients cannot be changed.

1. The product ingredient includes decisions about the product’s design, brand name, packaging, warranties, and the like.

1. The pricing ingredient includes only prices.

1. A marketing strategy is a plan for the best use of an organization’s recourses to reach its objectives.

VI. Choose from the text all the adjectives and adverbs. Translate them.

VII. Find antonyms for the adjectives and adverbs you found in the text.

VIII. Make up your own sentences with 5 adjectives or adverbs or their antonyms.

IX. Answer the questions.

1. What does implementation of marketing concept begin and end with?

1. What does a market consists of?

1. For what purpose may a firm vary its marketing mix?

1. What does a product ingredient include?

1. What means is used to boost low sales?

1. What do the major forms of a product promotion include?

1. What does developing a marketing strategy involve?

1. How are strategies monitored and evaluated?

X. Speak on the following.

1. Marketing.

2. A marketing mix.

3. A marketing strategy.

Lesson XII

I. Read and translate the following international words without using a dictionary:

risk, business, practice, activity, individual, to minimize, company, series, recommendation, potential, consultant, method, system, sum, premium, industrial, constantly, computer, absolutely, person, information, ordinary, ventilation, personal, protection, category, material, total, production, reason, to recommend, line, site, concept.

II. Remember the following words.:

risk management – управление рисками

loss – потеря, убыль

costs – издержки, затраты

to insure – страховать

to survey – рассматривать, изучать

to brick up – закладывать кирпичом

warehouse – склад

stocking – складирование

sprinkler – огнетушитель

espionage – шпионаж

authorized – уполномоченный

liability – ответственность

market share – рыночная доля участия

to stipulate – обуславливать

jet – самолет (реактивный)