VI. Read and translate the following text. More about «The Marketing Mix» at the «4 p's»

Product – the goods or service that you are marketing. The product is not just a collection of components, but includes its de­sign, quality and reliability. Product (service) is often connected with development of a new product, searching of the potential markets, testing of the product to insure quality and then introduction to the market.

Target market selection is the most important task for any firm. A target market is a group of individuals who will probably buy the product. That involves the development of a marketing strategy. A successful marketing mix depends on the knowledge about consumers and their buying habits, gained through market research as well as correct identification of the target market.

Products have a life-cycle, and forward-thinking companies are continually developing new products in order to satisfy the changing needs of consumers and to replace products whose sales are declining and coming to the end of their lives. A «total product» includes the image of the product as well as its features and benefits.

Place – getting the product to the customer. Decisions have to be made about the channels of distribution and delivery arrange­ments. A common channel of distribution is: manufacturer -» wholesaler -» retailer -» customer. Retail products may go through various channels of distri­bution:

• Producer sells directly to end users via own sales force.

• Producer -» retailers -» end users (and some other vari­ants).

Each stage must add «value» to the product to justify the costs: the middleman is not normally someone who «just takes his cut» but someone whose own sales force and delivery system can make the product more easily and cost-effectively available to the larg­est number of customers. One principle behind this is «breaking down the bulk»: the producer may sell in minimum quantities of, say, 10 000 to the wholesaler, who sells in minimum quantities of 100 to the retailer, who sells in minimum quantities of 1 to the end user. A confectionery manufacturer doesn't deliver individual bars of chocolate to consumers: distribution is done through wholesal­ers and then retailers who «add value» to the product by providing a good service to their customers and stocking a wide range of similar products.

Price – making it easy for the customer to buy. The marketing view of pricing takes account of the value of a product. Its quality, the ability of the customer to pay, the volume of sales required, the level of market saturation and the prices charged by the competi­tion. Too low a price can reduce the number of sales just as signif­icantly as too high a price. A low price may increase sales but not as profitably as fixing a high, yet still popular, price.

Promotion – presenting the product to the customer. Promo­tion involves considering the packaging and presentation of the product, its image, the product name, advertising and slogans, bro­chures, literature, price lists, after-sales service and training, trade exhibitions or fairs, public relations, publicity, and personal sell­ing, where the seller develops a relationship with the customer. Every product must possess a «unique selling proposition» – fea­tures and benefits that make it unlike any other product in its market.

In promoting a product, the attention of potential customers is attracted and an interest in the product aroused, creating a desire for the product and encouraging customers to take prompt action.

Promotion includes all kinds of communication with individuals, groups or organizations to directly or indirectly facilities exchange by informing and persuading them to accept an organization product or service. There are two major ways promotion occurs: through personal selling, as in a department store; and through advertising, as in a newspaper or a magazine. One should distinguish advertising campaign which can be developed by personnel within the firm or in conjunction with advertising agencies and publicity that is the means of communication transmitted through a mass media at no charge.

All marketing activities must be oriented toward creating and sustaining satisfying exchanges. Both the buyer and the seller must be satisfied. The first should be satisfied with goods, services or ideas obtained in the exchange. The seller should receive something of value, usually financial reward. All marketing variables are highly interrelated.