Marketing. Textbook

of seedlings, special fertilizers for grass and the necessary gardening equipment for everyday activities, i.e. mowing, fertilizing, watering, cleaning, etc.

The benefit to the consumer is that the old, degenerated lawn is completely renewed within a short time (about 6 weeks). Moreover, the price of the system is 1/7 of the price of a new lawn. However, the apparent complexity of this system and sales analysis showed that this offer could not gain a foothold in the market using the classical sales route [8, p. 20].

Questions:

1.What problem is the manufacturer of this product facing in the lawn seed market?

2.What changes in consumer demands force the company to make new decisions in marketing practices?

3.Offer the company a new marketing concept and steps to implement it.

2.Marketing concept in the activities of companies

EPS Ltd., founded in 1969, is a well-known electricity producer in the UK. The company's motto: “We guarantee uninterrupted power supply. Our energy delivery is excellent!” The company's clients: airports, hospitals, telecommunications companies, bakeries. Client geography: UK, Middle East, China. Computers and other sensitive equipment require an uninterrupted and stable supply of energy. The company's specialists discovered twenty years ago that the slightest fluctuations in voltage and frequency lead to computer malfunctions, distort transmitted information, and complicate computer operations. The equipment that the company has fully provides reliable protection against alternating current fluctuations.

The company's sales volume is constantly growing with a fairly high level of demand, but the threat of competition is growing. The managing director of the company, an electronics engineer by education, having

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completed a training course at the personnel training center at the Marketing Institute, realized that despite the seemingly strong position of the company, it was necessary to reorient the company’s activities towards the marketing concept. He believes that the time has come to develop a marketing planning system, but, having no experience in marketing work, has little idea of what exactly he should do. He formulated the philosophy of his company as follows: “The highest quality of goods plus excellent engineering and technical expertise” [8, p. 35].

Questions:

1.Help the managing director formulate the company's main marketing goals.

2.Highlight the company's key objectives.

3.What is the main benefit that can be obtained as a result of the transition to the marketing concept of the company’s activities?

1.2.EXERCISES

1.Compare the definitions of marketing given in textbooks by foreign and Russian authors.

2.Schematically depict the process of marketing activities at the enterprise.

3.Make a comparative description of the main marketing concepts.

4.Describe the development of marketing concepts in Russia. Give examples. Which concept is dominant today?

5.You have become the marketing manager of the “Rosar” brewing company, and you have been tasked with analyzing the microand macroenvironment of marketing. What are the main factors you will consider? Determine the degree of significance of each factor.

6.The “Electro” company, which is primarily engaged in the sale of household appliances, created a public relations department, leased a building and created additional jobs, and also ensured the supply of cheaper (than other suppliers) food products to the retail chain. What goals

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do you think the company wanted to achieve? What concept of entrepreneurship was she trying to implement?

7. McDonald's restaurants were among the first to use the marketing concept. Each of these restaurants offers a rather limited, one and the same product range. What motivates this company's approach? Are there certain contradictions here between the limited range of products offered and the need to more fully satisfy specific needs and requirements? Compare with fast food restaurants “Rostiks”.

1.3.CONTROL QUESTIONS

1.What is the essence of the marketing concept? Describe the modern concept of marketing.

2.List the basic principles of marketing. Reveal their essence.

3.Name the main functions of marketing.

4.List the main types of demand.

5.What is the essence of the concept of social and ethical marketing?

6.Analyze the various definitions of the term “marketing”.

7.In what cases is it advisable to apply the concept of intensifying commercial efforts?

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TOPIC 2. COMPLEX OF MARKETING EVENTS

2.1.SITUATIONAL TASKS

1.Collection of information1

In the early 1960s, in the German market, small vans manufactured by Ford and Volkswagen were very popular. The main buyers of these vans were owners of small shops selling vegetables, fruits, and other food products. Vans were used by shop owners to transport various goods, but mainly to deliver products that they purchased at wholesale markets. The markets began to work from four o'clock in the morning in such a way that a small wholesale buyer could order, receive, load and deliver products to his store before it opened. A significant number of such stores were located in large and medium-sized cities. They were mainly located not on central streets, but in alleys, which in some cases created certain inconveniences when loading and unloading vans.

The van model produced by Ford differed from a similar model by Volkswagen in the number of seats for transporting people, the location of the engine and doors for loading and unloading operations. In appearance, the vans were similar and familiar to consumers (fig. 1).

Fig. 1. Van diagram

1 All figures in this chapter are taken from “Шамис В.А., Левкин Г.Г. Маркетинг:

практикум. М.: Ай Пи Ар Медиа, 2023”.

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Ford decided to develop a new van model, taking into account all the advantages and disadvantages of existing models, focusing on consumer requirements. It was planned that the new van model would initially be offered to small store owners in the state of Hamburg. If successful, the company expected to begin selling vans in other lands. The marketing department, which was created shortly before this time, was tasked with collecting the necessary information about consumer requirements within five days. No additional funds were allocated for information collection. At this point in time, the marketing department had two employees [8, p. 50].

Questions:

1.What recommendations on methods of collecting and processing information could you give to employees of the Ford marketing department, based on existing conditions?

2.What proposals for the design of the new van model could you formulate keeping in mind the convenience of the users? Based on the analysis of the initial information and taking into account the recommendations and proposals you have developed, formulate the main advertising arguments for a campaign to introduce a new van model to the Hamburg market.

2.Marketing mix and its implementation

In the 1990s, the Waterford brand was known in many countries around the world; it had significant profits from sales of its products in the USA, Ireland, Japan, Canada, and Australia.

The company penetrates foreign markets and expands its customer base by offering new products at low prices, although each market segment has its own needs and requirements, which do not always coincide with Waterford's pricing policy.

The English company Waterford Glass Group, a well-known crystal manufacturer, has had a porcelain production division since 1986 (as a result of the acquisition of Waterwood). By the beginning of the 1990s,

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this department became profitable, while the production of crystal decreased by more than 70 %, and the situation has not yet been corrected.

However, the company's position in the markets of North America, Europe and Japan remains strong. Especially popular are products intended for prizes, special ceremonies, gifts, including personalized ones. Over the entire history of the company's development, its brand has become widely known, which invariably contributes to the sale of products.

In 1992, the company's crystal plant was so unprofitable that it planned to lay off a quarter of its employees. During 1991, crystal sales fell by almost 40 % in England, by 29 % in the US and Ireland, and by more than 30 % in other countries.

The merger of two well-known companies ultimately had a positive effect on sales and further popularization of the brand, although both companies retained their own technology and design. Owning market shares in Japan (porcelain) and the United States (crystal) served as a springboard for the company to penetrate the Canadian and Australian markets. Although the main source of profit is the domestic market (UK), which is mainly provided by china, the company is pinning its hopes on growth in crystal sales in North America.

In 1990, the company was again reorganized by merging the crystal and ceramics manufacturers and creating another production division — ceramics.

To expand their markets, both branches decided to update their souvenir and gift products, as marketing research revealed a growing trend in the popularity of crystal souvenirs, which clearly eclipsed traditional wooden ones. Conventional spherical and flat shapes were increasingly replaced by individually designed items: candlesticks, animal figures, cartoon and fairy tale characters. Soon the demand for handcrafted products bearing the Waterford brand outstripped the supply in some of England's major department stores.

Waterford moved its production to Europe and reduced prices for its products in the United States by about 30 %. This fact was regarded by some American marketers as quite risky, since it gave a chance to well-

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known manufacturers from Germany, Portugal, and the former Yugoslavia. The company's new products were introduced into foreign markets under the Marquis brand. In the US, where Waterford owns 28 % of the crystal market, the positioning of the Marquis brand fell into the price niche of $ 30–40, large bowls and dishes — $ 135, which ensured these products were competitive among competing companies, in 1991 a price reduction of 30 % brought the company quick profits in the United States, but pricing in other markets remains questionable.

Some experts in the UK believe that Marquis is a risky scam, a departure from the traditions of hand-crafting, and most importantly, from the fame of the Waterford brand, which in the USA and Japan is listed at the level of Rolls-Royce and Rolex.

The sales principle that the company used contributed to the company’s advertising and public relations, but was not suitable for product positioning: the company offered a favorable price and insisted on a subsequent purchase. A well-controlled distribution network and the use of leading crystal and ceramic showrooms ultimately led to the consolidation of the company's fame.

In the UK gift market, along with glass and ceramics, crafts made from leather and stones (including precious ones), as well as toys and games, are in demand.

At the same time, crystal gifts are bought for birthdays, anniversaries, general holidays or festivals, and farewells.

In the USA, wedding gifts are especially popular, which is due to the popularity of marriage registration (most often these are expensive jewelry).

Often a gift is a profitable investment of capital (investment gift).

In the UK, around £30 million is spent on business gifts and branded items to promote a product. In Europe and Canada, the demand for antique glass and crystal items is growing. One of the special purchases was the

“family heirloom,” a collector's item purchased by newlyweds and families alike to add to their collection.

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Marketers say choosing a gift, no matter the occasion, is a personal and often risky matter. Many new products, handmade items, and high prices make the purchase dramatic and make the choice painful.

To make a decision on an expensive purchase, you need advice from family or friends [8, p. 110].

Questions:

1.What are Waterford's global and market strategies?

2.What areas of product policy are key for Waterford?

3.Has Waterford's new Marquis product affected its brand awareness? What is the essence of the risk for brand awareness and the company’s position in the market?

4.What areas of sales policy are the main ones in the marketing mix of the Waterford company? Should distribution channels be uniform in all foreign markets?

5.What pricing strategies does the company use?

6.What are the company’s product positioning principles?

7.What communication policy methods have you identified in this situation?

2.2.EXERCISES

1.Write an essay on the topic “The Benefits of Good and Timely

Information.”

2.Describe the main subsystems of a marketing information system (MIS). What are the main areas of its application? At what stages of marketing management is MIS needed?

3.Describe the advantages and disadvantages of primary and secondary information. Demonstrate this using the example of information on the number of students in universities in Omsk.

4.Describe the process of searching for the following types of information:

- population of the country;

- sales volumes and profit of the company;

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-the latest technologies in the treatment of viral diseases;

-list of conferences on the topic “Marketing” next year;

-minimum wage.

5.What analogues of MIS exist? Conduct a comparative analysis of their advantages and disadvantages.

6.Analyze the main sources of information according to such criteria as availability, nature of information, degree and speed of obsolescence and updating, acquisition costs, complexity of working with the source.

7.Develop a system of measures for personnel training. Develop a CRM concept for the enterprise.

2.3.CONTROL QUESTIONS

1.What are the goals of developing a marketing mix and what areas of marketing activity does it include?

2.What is the marketing mix (4P, 7P)?

3.List the main methods of collecting information and reveal their

essence.

4.What are the main subsystems of MIS? What problems are they built to solve?

5.What are the main information needs of marketers?

6.Name the main functional blocks of CRM systems and their significance.

7.What is customer relationship management?

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TOPIC 3. MARKETING RESEARCH

3.1.SITUATIONAL TASKS

1.The situation on the Japanese watch market

Domestic production of wristwatches in Japan reached 285.1 billion yen in 1988, exports amounted to 228.1 billion yen, and imports amounted to 63.1 billion yen. Domestic consumption: 120.1 billion yen. Domestic consumption of imported watches increased to 52.5 % of total consumption, meaning that foreign manufacturers controlled more than half of all sales. In quantitative terms: 263 million wristwatches were produced in Japan in 1988; 229 million of them were exported; 56 million were imported. In quantitative terms, the share of imports in sales volume on the Japanese market is 62.2 %, which exceeds the same share in monetary terms. This suggests that cheap electronic watches account for the majority of imports. Recent years have shown that there is an increasing demand for traditional watches (with hands), with a discreet, conservative design — the market is becoming more and more sophisticated.

Japanese companies produce men's and women's wristwatches, both mechanical and quartz, and electronic and traditional (with hands). Analyzing the changes taking place in the wristwatch market, the companies conducted a survey of Japanese consumers. Summarizing the results obtained, we can state the following:

a)10.1 % of respondents previously used watches made in Europe or America, and 14.1 % currently use them. Most of all, imported watches are used by diplomats, graduates of colleges and higher educational institutions, people with experience working abroad, and people with high incomes. Most women have one or two pairs of watches;

b)watches are mainly purchased as a gift: 66.7 % of surveyed women who have watches received them as a gift. The occasion for such

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