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and demand. Promotion attempts to increase demand for a product and
thereby increase sales. It wants to make the demand for a product inelastic
(unchangeable) when prices increase and elastic when prices decrease. In
other words, through promotion, companies try to keep demand and sales
constant when prices increase. They do not want an increase in the price of
their product to result in lower sales; instead, they want it to result in an increase
in profits. However, if the price decreases, they want demand for the product
to increase, hoping that an increase in sales volume will offset (balance) the
decrease in price.
2. Three main promotional activities are advertising, personal selling, and
sales promotion. Advertising is a nonpersonal presentation of goods, services,
or ideas aimed at a mass audience. It is particularly suited for products that are
widely distributed, such as convenience goods. There are several methods of
advertising and several media. The method selected depends upon the product,
the distribution of the market, and the type of information which the company
wishes to convey about its product. For example, television advertising reaches
a large audience. It has the advantage of appealing to the emotions of the
audience through the senses of sight and sound. Television advertisements
are expensive to produce and must be repeated thousands of times in order to
justify the cost of production. Newspaper advertisements, on the other hand,
can appear on a particular day in a particular geographic area. A newspaper
advertisement can contain a lot of written detail that appeals to the logic of
the reader. It explains why he should purchase a particular product or service.
3. In general, advertising works best when the demand for a product is
increasing. It also works well when there are real differences between two or
more similar products such as the different types of cars. Using advertising, a
company can emphasize the differences between its product and that of the
competition. The purpose of advertising is to communicate information that
convinces a customer to buy a specific product.
4. Personal selling involves a salesperson trying to convince customers
directly to buy a product. Personal selling is very effective when there is a
concentrated market for a product—in other words, the product is not for
general consumption by the public. For example, airplanes are purchased
only by airlines, not by the general public. There would be little point in
advertising them on television. The same is true for many industrial goods.
A sales representative usually gets a commission. If the product has a high
unit value, in other words each individual item is very expensive, the cost of
the product justifies the commission paid to the sales representative for his
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or her work. If the product must be individually tailored to the purchaser,
the salesperson must be able to sell exactly what the customer needs. Sales
staff are also needed to demonstrate a product. This is particularly important
for new products which may be unfamiliar to the customer. Finally, personal
selling is necessary when there is negotiation about the price of the product,
for example, when a trade-in is involved.
5. Sales promotion involves several activities. It is becoming increasingly
important in the self-service environment where there is often no sales staff.
Sales promotion activities are of two types: information and stimulation.
Examples of information promotion are a pamphlet or booklet about the
product, a demonstration, market research information about the nature of
the customers, and dealer training and managerial advice from producers.
Stimulation promotion can be accomplished by the distribution of free
samples, reduced price promotions, premiums, and coupons. A premium is
something that the customer receives as a bonus when he purchases a product.
For example, a customer purchasing a razor might receive a free package of
razor blades. A coupon is a certificate which entitles the customer to purchase
the product at a reduced price. Sales promotions also involve displays of the
products. Displays can increase sales as well. A customer might make a decision
to buy a particular product like a convenience item simply on the basis of a
display that makes the item easy to see and reach.
6. Basically there are two ways to increase sales of products: find new
markets and increase market share. A company seeking (looking for) new
markets can expand its geographical sales area or try to sell its product to
a different segment of the population. In this case promotion may involve
increased advertising to spread information about the product. Personal selling
at the wholesale level can encourage additional retailers to carry the product.
7. A different market situation requires a different method of promotion.
When a market is saturated, it means that there are no new customers to
be found. A company then needs to lure (to attract) customers from the
competition and, gain a greater share of the total market. To increase market
share, the marketing department of a company must design a total program
of promotion for a particular product. Such a program may involve increased
advertising to remind the customer of the name of the product – specialty
marketing. In advertising the company will also emphasize the superiority of its
product by comparing it with the competition’s product. A program to increase
market share may also include convincing a retailer to allow more shelf space
in the store for the product. Sales promotions may include contests, coupons,
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and price discounting. Increasing market share involves more stimulation of
the buyer’s emotions than does finding new markets where simply furnishing
information about the product may increase sales.
Vocabulary
attitude – позиция; отношение, установка
supply and demand – спрос и предложение
inelastic – неэластичный, жесткий, негибкий, негнущийся, не-
упругий
elastic – гибкий; приспособляющийся; быстро оправляющийся,
растяжимый
to result in – иметь следствием, приводить к
offset – сводить баланс; выравнивать, возмещать, компенсировать
to justify – оправдывать, обосновывать, подтверждать
a concentrated market – концентрированный, усиленный рынок
a saturated market – насыщенный рынок
consumption – потребление, расход, поглощение
market segment – сегмент рынка, сектор рынка, рыночный сегмент
(группа потребителей на рынке, имеющих схожие потребности); syn.
niche market, specialized market
the general public – широкая публика, общественность
industrial goods – товары производственно-технического назначе-
ния, промышленные товары, товары для нужд промышленности, товары, прямо или косвенно используемые в производстве других товаров
(напр., различные сырьевые материалы, станки и оборудование, здания
и сооружения и т. д.); продаются не конечным потребителям, а производителям; syn. business products, production goods, producer goods, producer’s
goods, industrial commodities aнтоним: consumer goods
a sales representative торговый представитель, агент по продажам;
syn. salesman, sales person, sales agent, selling agent, commission merchant,
commercial agent, commercial representative, selling representative, selling
person, sales engineer
a commission – доверенность; полномочие, комиссионное возна-
граждение
a unit value – стоимость единицы изделия, результат деления ценового индекса на индекс объема, т. е. суммарной стоимости роста цен на
суммарное увеличение объема
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to tailor to – делать на заказ; приспосабливать; предназначать для
определенной цели; изготовлять для специального применения, подгонять
a purchaser – покупатель, приобретатель, закупщик
unfamiliar – незнакомый, неизвестный; находящийся вне компетен-
ции (кого-л.); непривычный, несвойственный, чуждый
negotiation – переговоры; обсуждение условий, цены
self-service environment – магазин без продавца, магазин самообслу-
живания
a free sample – бесплатный /рекламный образец
reduced price promotion – акция, промоакция, продажа товара по
сниженной цене
a premium – премия; приз, надбавка, вознаграждение
a coupon – премиальный купон (определенное количество купонов
дает покупателю право на вещевую премию)
entitle to – давать право на
display – выставить товары в витрине магазина
an item – отдельный предмет; единица; элемент в списке, в группе,
в наборе и т. п., напр., пункт в докладе, товар (товарная позиция) в
перечне товаров и т. п.
retailer – предприятие розничной торговли розничный торговец,
лавочник, индивидуальный предприниматель или компания, продающая потребителям товары и услуги, предназначенные для личного
пользования, последнее звено в каналах распределения, связывающих
производителей и покупателей, основные функции розничного торговца: обеспечение ассортимента, дробление поступающих партий товаров,
хранение запасов, обеспечение сервиса
to lure – привлекать; завлекать, соблазнять, искушать, приманивать
design a program – проектировать; конструировать; составлять план;
схему; планировать; разрабатывать
to remind – напоминать кому-л. о чем-л.
superiority – превосходство, преимущество
contest – соревнование; состязание; конкурс
Task 2.24 Select the answer which best completes the meaning of the
sentence.
1. Promotion attempts to increase demand for the product. Effective
promotion therefore
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a. increases sales.
b. decreases supply.
c. aims at a mass audience.
d. decreases prices.
2. Advertising is aimed at a mass audience. Advertisers hope
a. that it will be convenient for the customer to purchase the product.
b. that a very great number of people will see or hear their message.
c. that reducing prices will increase sales.
d. to sell similar products.
3. Television and radio are examples of advertising media. A newspaper
a. must be widely distributed in order to be useful for advertisers.
b. is a different type of medium.
c. cannot tell you what day the advertisement will appear.
d. usually cannot convey detailed information about the product.
4. Television advertisements are usually very expensive to produce. Because
of their cost
a. they should not be used to promote convenience goods.
b. they usually appear only on a certain day in a certain area.
c. they are especially good for expensive products like airplanes.
d. they must be shown thousands of times.
5. Personal selling refers to a sales representative who persuades a customer
to buy a product. It is very effective when
a. the product must be custom designed for the customer.
b. the number of customers is small and the sales staff know who they
are.
c. the product needs to be demonstrated to the customer.
d. all of the above.
6. Sales promotion activities include those which provide information to
customers and those which stimulate them to purchase particular products.
Customers receive information about products through
a. coupons.
b. pamphlets.
c. premiums
d. discounts.
7. In a self-service store the customer usually selects merchandise personally
and then brings it to a cashier to pay for it. Self-service stores
a. could probably increase sales if they used personal selling.
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b. can stimulate sales by the proper use of displays and other sales
promotion devices.
c. cannot use advertising effectively.
d. usually sell only convenience items.
8. A customer can be stimulated to make a purchase through
a. a free sample.
b. an attractive and convenient display
c. a reduced price.
d. all of the above.
9. Increasing sales means getting more customers for your product. You
can get more customers to buy your product by finding new markets. A method
of expanding the market might be
a. to sell your product in other cities and states.
b. to sell your product to people who do not now purchase your product
or a similar product.
c. advertising to tell more people about your product.
d. all of the above.
10. You can also get more customers for your product if they switch from
a competing brand to your own. To do this requires
a. only getting more products on the shelves at the store.
b. giving more information about your product.
c. saturating the market.
d. designing a total program according to the product and the market.
11. The promotional activities of a company can best be carried out
a. if a complete advertising program is designed.
b. if dealers are properly trained.
c. if demand for the product is increasing.
d. if it is considered as part of the total marketing process.
Task 2.25 Replace the words and expressions in italics with expressions from
the text which have the same meaning.
1. They hope that an increase in the number of units sold will compensate
for a decrease in prices.
2. Promotion attempts to urge the customer to buy the product.
3. Advertising is useful for products which are available in many places.
4. The company wants to present certain information about its product.
5. Commercial messages on television are seen by many viewers.
6. Television and radio are two channels of communication for advertising.
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7. Newspaper advertisements have time value, and they can be delivered
in specific communities.
8. Using advertising, a company can point out the differences between their
product and that of another company which produces a similar product.
9. Personal selling is effective when there are just certain purchasers for the
product.
10. Airplanes are not purchased by most consumers.
11. The cost is high enough so that the producer can afford to pay the sales
person a fee.
12. The salesperson is necessary when there is discussion about the price.
13. The purchase of a new car sometimes involves the exchange of an older
model.
14. The salesperson can show the customer how the product works.
15. Here is some information about the type of customers who purchase this
product.
16. If you purchase this brand of toothpaste, you will receive a toothbrush
as a free gift.
17. The customer decided to purchase this product because it was easy to
see and reach.
18. This certificate, which you can cut out of the magazine, allows you to
purchase the product at a reduced price.
19. We want to encourage the store owners to have our product available
for sale.
20. If we want our competitor’s customers to purchase our product, we have
to get the retailer to grant us more area for display.
Reading
Task 2.26 Read the text and then decide which of the three summaries
most fully and accurately expresses its main ideas.
Promotional tools
Marketing is often defined as a matter of identifying consumer needs and
developing the goods and services that satisfy them. This involves developing
the right product, pricing it attractively, and making available to the target
customers, by persuading distributors and retailers to stock it. But it is also
necessary to inform potential consumers of the product’s existence, its features,
and its advantages and to persuade them to try it. There are generally several
stages involved in a consumer’s decision to try a new product. A well-known
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acronym for this process is AIDA, standing for Attention, Interest, Desire
and Action.
The Four P’s formulation of the marketing mix – product, price, place
and promotion – attracting attention, arousing interest, and persuading the
consumer to act are part of promotion. Marketing textbooks conventionally
distinguish four basic promotional tools: advertising, sales promotion, public
relations, and personal selling, which together make up the marketing
communication mix.
For consumer goods, the most important tool is generally advertising.
As well as advertising particular brands, companies also carry out prestige or
institutional advertising, designed to build up the company’s name or image.
Advertising is often combined with sales promotion, such as free samples,
coupons and competitions.
For industrial goods, particularly specialised ones, the most important tool
is often personal selling. Sales reps can build up relations with company buyers, and can be very useful in persuading them to choose a particular product.
The fourth promotional tool is public relations (frequently abbreviated as
PR): activities designed to improve or maintain or protect a company’s or a
product’s image. Public relations area includes things like company publications, most notably the annual report, sponsorship, community relations
programmes, the lobbying of politicians, and the creation of new stories, all
designed to get publicity for the company or the particular product. Unlike
paid advertising, publicity is any (favourable) mention of a company’s product that is not paid for, in any medium received by a company’s customers or
potential customers. Companies often attempt to place information in news
media to draw attention to a product or service. Quite apart from financial
considerations, the advantage of publicity is that it is generally more likely
to be read and believed than advertising. It can have a great impact on public
awareness that could not even be achieved by a massive amount of advertising.
Within the limits of their budget, marketers have to find the optimal
communications mix of advertising, sales promotion, personal selling, and
publicity, without neglecting the other elements of the marketing mix, i.e.,
the possibility of improving the product, lowering its price, or distributing it
differently.
Summary 1
Marketing involves making a good, cheap product and convincing customers to
buy it by way of a good communications mix. For consumer goods, this is generally
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done with advertising and sales promotions. For specialised industrial goods, this
is done by personal selling. Publicity, such as favourable mentions of a company’s
products in news media, is also useful.
Summary 2
Marketing involves four basic elements: advertising, sales promotion, public
relations, and personal selling. The first three of these are used for consumer goods,
the last for industrial goods. These tools, along with product improvement, price
reductions, and distribution channel innovations, make up the communication mix.
Summary 3
Marketing involves producing the right product, pricing it attractively, making
it available to potential customer, and promoting it. With consumer goods, this
largely involves advertising and sales promotion. For industrial goods, personal
selling is often more important. Publicity is also a useful tool as it is cheaper and
generally more credible than advertising. Marketers have to combine these tools
to create the best possible communications mix.
Vocabulary
available – имеющийся в продаже, в наличии, доступный
to stock – иметь в наличии, в продаже; иметь в продаже, запасать
to arouse – вызывать, пробуждать, будить, активизировать
conventionally – традиционно
distinguish – выделять, делать заметным, отделять, разделять, обосо-
блять, проводить различие, находить отличия; различать, распознавать
capital goods syn industrial goods – товары производственно-технического назначения; продукция промышленного назначения
consumer goods syn consumption goods – потребительские товары, товары народного потребления; потребительская продукция; товары или
предметы широкого потребления, товары, произведенные для использования потребителями с целью удовлетворения личных потребностей
(напр., продукты питания, одежда, бытовая техника), в отличие от товаров, предназначенных для использования в процессе производства
capital goods
prestige/ corporate / institutional advertising – рекламирование самой
фирмы, а не ее товаров, реклама для создания популярности организации, престижная реклама
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a tool – орудие, средство, инструмент
publication – издание, печатание, публикация, произведение, выпуск
most notably – что примечательно, особенно
annual report – годовой отчет, отчет, составляемый компанией в конце
календарного или финансового года для акционеров, государственных
органов, кредиторов и других заинтересованных лиц; помимо финансовой отчетности обычно включает информацию, которую организация
желает раскрыть дополнительно, напр., информацию о положении компании на товарных рынках, выпускаемой продукции и услугах, производственных показателях, исследованиях и разработках и т. п.
community relations programme – программа налаживания отношений
с местными общинами, поддержание связей с местным населением
lobbying – ведомственность, лоббирование (деятельность заинте-
ресованной группы, проявляющаяся во влиянии всеми возможными
способами на органы власти и общественное мнение ради принятия
нужного ей решения)
publicity – известность, слава, паблисити (предоставление информа-
ции о товаре, лице или компании по инициативе СМИ, которые считают
эту информацию полезной для своей читательской или телевизионной
аудитории; за эту информацию компания не платит и она вызывает
большее доверие у публики; компании способствуют паблисити различными методами: присылают журналистам информационные материалы,
организуют различные общественные мероприятия и т. д.), рекламные
материалы (статьи, фильмы и т. п.)
apart from – не говоря (уже) о; кроме; не считая
impact on – удар, толчок; сотрясение; импульс; воздействие, сильное
влияние
Task 2.27 Classify the following 30 items into four groups, according to which
of the four major communications or promotional tools they belong to.
Advertising Sales promotion Public relations Personal selling
Annual reports, Billboards or hoardings, Branded items, Brochures,
booklets, pamphlets, Catalogues, Commercials, Community relations,
Company publications, Competitions and contests, Couponing,
Demonstrations, Donations to charity, Events, Free gifts, Free trials,
Leaflets, Lobbying, Mailings, Packaging, Point-of-purchase displays = point
of sale (POS), Posters, Price reductions, Print ads, Product placement, Sales
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