Marketing. Textbook

department stores. There are almost no discounts available. Brand image advertising is also used to appeal to a group of value-oriented consumers, but Goodyear periodically resorts to price discounts given the price orientation of these consumers.

For the “trusting customer” group, Goodyear targets stores. The advertisement shows a store and often attempts to combine an advertisement for a Goodyear tire with an advertisement for that store. For bargain hunters, prices serve as the sole motivating factor in Goodyear’s marketing mix. Sales are made primarily through discount stores. The approach to this group is strictly price oriented and discounts are often given to these consumers.

Goodyear’s international segmentation system demonstrates its commitment to transcending regional boundaries and taking a global approach to market segmentation. Considering that the company has higher profits from the segment that values quality, its motto could well be: “Connoisseurs of quality in the world, unite” [11, p. 852–853].

Questions:

1.What is Goodyear’s international market segmentation based on?

2.How does the company vary its strategy across segments?

9.2.EXERCISES

1.Conduct an analysis of an enterprise operating on the international

market.

2.Conduct an analysis of competitive advantages using the example of a specific enterprise.

3.Analyze the firm’s international marketing program.

4.Imagine that the head of a foreign company invited you as a consultant to help him develop a marketing strategy in the event of organizing his store in Moscow. Advise him what priorities he should have in product policy. Does it make sense to create a special range for Russian consumers? How to assess the competitiveness of such a store?

61

9.3.CONTROL QUESTIONS

1.Define international marketing.

2.State the differences between export and international marketing.

3.What is the modern concept of international marketing? Expand the concept, essence and features of international marketing.

4.What are the main decisions in the field of international marketing?

5.Expand the concept and goals of international marketing research. What is comprehensive market research?

6.Describe competitive strategies in global markets: hypercompetition and competitive advantages of international companies. Explain the essence and main features of hypercompetition.

7.Name the stages of formation of an international company.

62

TERMINOLOGICAL DICTIONARY [2]

Advertising — 1) any paid form of non-personal solicitation and presentation of ideas, goods and services on behalf of a recognized sponsor; 2) a form of communication that tries to translate the quality of goods and services into the language of the needs and wants of customers.

Advertising audience — all persons who can read, see or hear an advertising message transmitted by a specific source of information.

Advertising effectiveness — the degree of influence of advertising media on consumers in the interests of the manufacturer or intermediary. Determined before and after the transmission of the advertising message. Determining the impact of advertising on sales results (economic efficiency) is carried out by relative comparison of advertising costs and product sales volumes based on the results of past activities. The accuracy of the latter method is low, since sales results are influenced by many other factors in addition to advertising.

Advertising pyramid — a combination of the main types of consumer audiences and their willingness to purchase the advertised product. As its readiness increases, the following stages are distinguished: ignorance, awareness, knowledge, favor, preference, purchase, repeat purchase.

AIDA — one of the most common models of advertising appeal (from English — attention, interest, desire, action). In 1896, it was proposed by E. Lewis (USA).

Brand — 1) the image of a product (service) brand distinguished by the buyer among competing products; 2) an aura surrounding a product (service), which demonstrates its positive consumer characteristics and distinguishes it from goods (services) offered to the consumer by competitors; 3) a “promoted” brand that has a distinctive functionalemotional competitive advantage of a product (service), bringing additional value to the company; 4) way of thinking and key strategy in business; 5) new media technology of marketing communications, an effective factor in promoting goods from product to consumer; 6) a tool for

63

coordinating the company’s creativity with the creativity of the consumer of its product.

Branding — the process of creating and improving a brand and its identity.

Business to business marketing — 1) processes of sales and procurement (purchase) between organizations, as well as between individual companies or between an enterprise and other institutions. Marketing activities related to sales policy between suppliers and consumers in the sector of production of industrial and technical products, between processing industry enterprises and trading enterprises, as well as between firms and public institutions; 2) interaction marketing, which includes the sphere of three subjects: manufacturing enterprises; manufacturing consumer enterprises; public consumer enterprises; 3) marketing between organizations; intercompany marketing; a type of industrial marketing.

Case — 1) a situation taken from practice for training in the process of studying a particular discipline in order to develop methods of analysis, development and decision-making (for example, marketing); 2) the method of education, designed to speed up the learning process by involving trainees (students) in analysis, open, free discussion and making a final decision regarding the business situation under consideration (case method).

Competition — 1) rivalry in any field between individuals interested in achieving the same goal, each for themselves, in particular between entrepreneurs — for a larger share of profits, for markets, for sources of raw materials; 2) the economic process of interaction, interconnection and struggle, communications of subjects of the market system in the process of creation, marketing and consumption of material and spiritual goods; 3) a regulator of market relations, a stimulator of acceleration of scientific and technical progress and the efficiency of social production.

Competitive market map — 1) classification of competitors according to their position in the market; 2) distribution of market shares of competitors, which allows you to control the place (leader, outsider) of

64

a competitor (or your own company) in the market. Determined based on the results of an analysis of the market position of competitors in specific product markets.

Competitiveness of a product — 1) a set of quality and cost characteristics of a product, ensuring its advantage in the market over competing products in satisfying a specific need; 2) the ability of a product to be the first to be purchased on the market of competing goods; 3) the ratio of the beneficial effect from the consumption (use) of a product to the costs of its acquisition and operation (consumption price); 4) the most important criterion for the feasibility of an enterprise’s entry into national and world commodity markets.

Concentric diversification — replenishment of the assortment with new products that, from a technical or marketing point of view, are similar to the company’s existing products.

Conglomerate diversification — replenishment of the assortment with products that have nothing to do with either the technology used by the company or its current products and markets.

Coordination in marketing is an integral element in the marketing management system, the process of coordinating and streamlining the actions of the elements of the marketing system in the course of continuous interaction and exchange of resources at various hierarchical levels of their action, impact and interaction. The main purpose of coordination in marketing is to ensure unity of interests and regulation of interaction between all participants in the marketing system.

Corporate advertising is advertising that creates a need not for a specific brand of product, but for a complete product range.

Dealer — by type of occupation — businessman. Thus, a stock exchange dealer is a person who trades securities both for his own account and on behalf of others. Although the dealer sometimes acts as a broker, his activity is not dominated by intermediation, but by independent trading, in which he becomes the owner of the goods purchased. Unlike a broker and a sales agent, a dealer’s income comes mainly not from fees,

65

but from the difference between the sale and purchase prices of the goods. In marketing, a dealer is a possible link in distribution channels.

Demand — a category inherent in the commodity economy and manifests itself in the sphere of exchange and trade. Demand expresses the constantly changing aggregate social need presented on the market in various goods, consisting of many specific requirements of the mass of consumers, characterized by great diversity.

Diversification — 1) a type of product strategy, according to which the enterprise expands the number of products produced; 2) simultaneous expansion and development of two or more unrelated types of production in order to conquer new markets and generate additional profit. They apply horizontal, vertical and hidden diversification strategies.

Effectiveness of a marketing system — 1) an indicator of the ability of a marketing system to ensure a continuous process of generating the reproduction of demand for goods and services at a given level of marketing costs; 2) a criterion, an indicator of the quality of functioning of the marketing system; 3) a comprehensive indicator of the effectiveness of interaction between subjects of the marketing system in the process of resource exchange.

Effectiveness of making a marketing decision — 1) a measure of utility, the relative result of the price of economic risk from the chosen option for solving a marketing problem from the set of considered (possible) alternatives; 2) the ability of the chosen option for solving a marketing problem to bring an economic effect.

Forecasting methods are scientific foresight based on the analysis of factual data of the past and present of the object under study. Based on the length of the strengthening period, there are short-term forecasts (up to 1.5 years), medium-term forecasts (5 years), and long-term forecasts (10–15 years), based on a system of forecasts of various components. According to the form of presentation, forecasts are divided into quantitative and qualitative. According to the forecasting coverage of the research object, forecasts can be general and specific.

66

Hidden advertising — the general name for materials in the press and works of art containing positive, commercially important information for a particular company.

Horizontal diversification — replenishment of the company’s assortment with new products that are not related to those currently produced, but may arouse the interest of the existing clientele.

Image — the image of a product, similarity, reflection, idea of something, a socio-psychological phenomenon closely related to the economics of the product market. Product image is associated with the reputation of the product, trademark, enterprise and country of origin.

Information — 1) information, a message about the state of affairs, information about something; 2) all information, knowledge that helps solve the problems of entrepreneurship, marketing or other activities; 3) characteristics of the result of direct and feedback connections in the process of interaction between subjects of the marketing system; 4) the result of the interaction of different types of energies.

Information support for marketing systems — 1) a set of tools and methods for preparing marketing documentation, organizing data storage, coding and retrieving information about the state and behavior of marketing systems; 2) one of the subsystems that ensure the normal functioning of the marketing system (organizational, legal, economic, technical, software, mathematical and other support); 3) a source of marketing information, on the basis of which the enterprise management makes various management decisions; 4) the process of obtaining, processing and systematizing data and turning them into “ready-to-use” information.

Information technology in marketing activities — 1) a means of increasing the efficiency of the development, creation and use of marketing technologies; 2) a set of means and methods, representing an integral technological system, which is designed to ensure the effectiveness of planning, organizing and managing the process of marketing activities at one or another hierarchical level of the economy due to the cumulative effect of integration and interaction of information

67

technology elements, such as computer systems, computer networks , intelligent terminals, a set of tools and methods for organizing data arrays, encoding and retrieving information, etc.; 3) branch of knowledge, academic discipline.

Interaction marketing — 1) a promising concept of entrepreneurship, focused on covering all resources and activities in the process of organizing, planning and managing communications during cooperation with all subjects of the market network at each stage of the product life cycle. A concept focused on long-term relationships with the client and meeting the goals of the parties involved in communications (transactions); 2) a method of organizing marketing according to the principle of distribution, expanding responsibility for understanding and performing marketing functions among all company personnel — from the employee directly serving the client to the top management of the company.

International marketing — marketing used by enterprises and the state in foreign economic activity. It involves researching the external environment, the feasibility of entering the international market, selecting specific markets and methods of entering them, developing a marketing plan, studying information support when organizing work on the international market, researching competitive advantages, etc.

Logistics — 1) a branch of science — a set of independent methodology, theory, methods and methods for optimizing all types of flows (physical, information, energy, etc.) accompanying economic, social and communication processes in the sphere of creation, reproduction and consumption of goods and services in the conditions of functioning and development of market relations; 2) the theory of planning, management and control of the processes of movement of material, labor, energy and information flows in human-machine systems; 3) a set of theory and practice of analysis and optimization of the movement of a product and the flows that accompany it in the sphere of production and circulation of goods.

68

Logo — an element of corporate identity that represents the original outline of the advertiser; trademark form.

Market — 1) the meeting place of supply and demand, where the degree of compliance of the characteristics of a manufactured product with the social need for it is identified, the competitiveness of a given product is compared with the competitiveness of a competing product; 2) the sphere of exchange of goods, services and other property; 3) consumer group; 4) all buyers of this product; 5) organized place of trade; 6) source of receipt of goods and services; 7) a physically or virtually represented set of

production) research of markets, their ability to ensure the reproduction of goods or services to satisfy existing and potential consumers. The research covers sales markets, labor markets, capital markets, raw materials markets; 2) quantitative and qualitative analysis of one or a set of markets to obtain information about the potential, market capacity, characteristics of the competitive environment, prices.

Market segment — a collection, a group of consumers who react identically to the same product offered and to the marketing mix.

Market segmentation — the division of the market into clear groups of buyers, each of which may require separate products and/or marketing mixes.

Marketing — 1) purchase and sale, activities in the market; 2) sales; 3) production of commercial products; 4) principle of management; management system; branch of economic activity; way of thinking; 5) philosophy of doing business; concept of market activity; 6) the process of creating and reproducing end-consumer demand for specific goods and services in order to make a profit; 7) the process of interaction between subjects of the marketing system regarding the organization of business activities in order to meet the demand for goods and services and make a profit; 8) actions to satisfy customer needs through a product (service) and

69

a number of factors associated with the creation, delivery and, finally, consumption of this product.

Marketing activity — 1) a type of work, functions in the field of entrepreneurship; 2) activities related to the implementation of marketing functions (marketing research, marketing organization, sales, pricing, product policy, development of strategies and marketing plans, product promotion, marketing intelligence, benchmarking, etc.), with the aim of creating and reproducing demand and ensuring the company's profit; 3) any activity that covers the process of introducing marketing philosophy and tools in all links of the reproduction chain of a market economy and allows answering the questions of what and how much to produce, how and where to produce, so that the product or service meets demand and ensures profit.

Marketing audit — 1) audit, detection of weaknesses in the concept, strategies and plans of marketing, in the results of their implementation; 2) comprehensive, systematic, independent and periodic verification of the external marketing environment, goals, strategies and individual types of marketing activities of the company and its divisions; 3) a means of implementing strategic marketing control.

Marketing budget — a financial marketing plan, a system of indicators, a section of an enterprise’s marketing plan, in which in detailed form (by elements of the marketing mix or by marketing activities) the values of costs, income and profits from (for) the implementation of the company’s marketing activities are given. Marketing budget planning can be based on target profits or based on profit optimization.

Marketing communications system — 1) a set of subjects (senders and recipients), means, channels, direct (message) and reverse (recipient’s reaction) connections in the process of interaction of the marketing system with the external environment; 2) a set of forms and means of interhuman interaction.

Marketing decision — 1) an answer, one or more alternatives from a variety of possible options for implementing one or a set of marketing activities necessary for the sustainable formation, development and

70