МАРКЕТИНГ ( ДЛЯ СТУДЕНТОВ) Copy
.pdfUnit 4
Target Marketing
With your partner discuss the following quotation.
With new digital tools marketers can reach the likeliest customers when they are most in mood to buy. Last summer Wall’s ice-cream and O2, a mobile-phone network, teamed up to send advertisements to Londoners’ smart phones when temperatures climbed. When the weather cooled Kleenex, a brand of tissues, used Google search terms and health-service data to target ad spending to areas likely to suffer the most sneezes. Andy Fennell, the marketing boss of Diageo, drinks firm, thinks this is “ a golden era for….( continue his thought)”.
What cause these companies to be so attentive to the customers?
Reading --- PART 1
I. Read the article about collecting marketing information and fill in the gaps using words from ex. II.
TARGET MARKETING
As a result of studying consumer behaviour and conducting market research, organizations often come to 1. that it is not possible or desirable for them 2. t to sell their products and services to all the potential customers in their markets. This may be because the potential market is so large that the organization has insufficient 3. to supply it; it may be because customers geographically very 4. it may be because competitors have 5. ; or it may be because customer requirements from the product or service vary widely. Under these 6. , firms have to decide which types of customer to aim for and then target their products and services only at selected parts of the market (known as segments). The process of market segments, selecting one or more of them and developing a marketing mix to meet their needs is known as 7. marketing.
II.Match the words from the article with their corresponding definitions.
a)resources
b)strong foothold
c)conclusion
d)target
e)to attempt
f)to scatter
j) circumstances h) identifying
1)Belief or opinion which is the result of reasoning.
2)Make a start at doing something, try.
3)Wealth supplies of goods, raw materials, which a company can use.
4)To send; to go in different directions.
5)To have a secure position
6)Conditions, the state of attars.
7)Say, show, prove what a thing is, treat something as identical.
8)Something to be aimed at; objective set for savings, production.
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Grammar |
Countable and Uncountable Nouns |
III. Complete the following passage, using these nouns. Sometimes the word needs to be plural and sometimes you need to use a/an.
product, transportation, speed, customer, car, criterion, means, time, excitement, purchase, range, example, needs, approach, people, model, group.
It starts by recognizing that different groups of ____ often have different ____, and may want different core benefits from the same ____.Target marketing is ____ that concentrates on identifying similarities between customers but also differences between similar ____ of customers.
Again the motor car provides ____ good ____ here. Although most ____ thinking of buying
____ are looking for a means of ____ of some sort, the key ____ they take in to consideration when deciding which ____ to buy vary widely. For some people, the car is ____ for reflecting their status, for some it is a means of saving ____; others want it to give them ____ of travelling at ____; and some may see it as no more than a business asset. Each of these groups of customers is looking for something quite different when they decide to make ____. This enables the manufactures to design ____ of models and back them up with promotional campaigns to reinforce the ways in which these different models can satisfy different needs.
IV. Read the article about segmenting consumer markets. Which of the underlined parts of these sentences is correct?
MARKET SEGMENTATION
This is the first stage in the process of target marketing, and is defined as ‘… dividing a market into distinct groups of buyers with different needs, characteristics, or behavior /behaviors who might require separate products or marketing mixes’ (Kotler and Armstrong, 1994). It involves an analysis of the nature and composition of a market to identify groups of potential buyers who have similar needs or characteristics, or display similar behavior. These groups are known as market segments. The differences between segments may mean that different groups of buyers need to be offered slightly different products, or should be communicated with in different ways. They may find different price levels acceptable, or look for different levels of services/service from their retailers or distributors.
There are four possible starting points when considering how best to segment a consumer market. These should all be explored before making a decision as to the most appropriate ways of dividing up the market.
Geographic segmentation In some markets there are differences in buyer needs according to where people/peoples live. Different geographical areas, whether they may be towns and cities, regions, countries or even continents, may have different needs.
Demographic segmentation. In other markets, geography is less relevant as a basis for segmentation but buyer behaviour is found to change according to the demographic characteristics of consumers. Depending on their age, gender/genders, the size of their families, their education and work/works, different people are found to want different features and benefits from the products and services they buy.
Behavioural segmentation. Markets can be divided into discrete sub-groups according to the way people react to and interact with the product itself.
Psychographic segmentation. The decisions people make about the goods and services they buy are influenced by a range of factors relating to their own personal characteristics: the things that motivate them, their personalities, lifestyles and attitudes, etc. Social class affects/affect the ways in which people spend money/moneys and the values/value they place on different types of
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products and services. Leisure/leasures activities tend to be related to social class, as do preference for reading matter, home furnitures/furniture, cloth/clothes and even foods/food.
V. Choose the right alternative.
1)Profitability is the usual criterion/criteria of success.
2)Nobody had carried out an analysis/analysises of the students' needs.
3)For most people, the car is still their main mean /means of transport.
4)Bread forms the basis/bases of their daily diet.
5)The research involves collecting data/datas from two random samples.
VI. Read the article providing examples of possible market segments and identify them.
Demographic segmentation Psychographic segmentation. Geographic segmentation
Behavioural segmentation a) expertise; |
d) purchase patterns; c) time of use. |
b) applications; |
f) benefits sought; |
a)Pharmaceutical manufacturers produce reduced-strength drugs for children; low-cost retail formats are designed for low income brackets and toiletries have traditionally been scented differently for men and women.
b)Different people want products to benefit them in different ways. Consider the yellow fats market; butter is an ideal product for those who are most interested in taste; low-calorie spread is aimed at those who want to lose weight; polyunsaturated margarine will appeal to those who are health conscious; block margarine is preferred by those who want to make good pastry; and basic own label spreads will satisfy those for whom economy is paramount.
c)Different people buy products at different time intervals. Some people are regular buyers of certain brands while others only buy them on special occasions. Theatre audiences tend to be characterized by a core of regular attendees who come from time to time and a large ‘tail’ of infrequent or one-off attendee’s who seldom or never return.
d)In northern Europe, for example, dental health and oral hygiene are the main benefits sought from toothpaste, so brands tend to be promoted by emphasizing features such as fluoride and other properties that prevent tooth decay and gum disease. In southern Europe, however, the cosmetic properties of the product are promoted more heavily, as these are of more interest to buyers.
e)Different people buy products for different purposes. Cotton wool, for example, has three primary applications; baby-care, child-care and cosmetic use. These three uses can then be subdivided into a number of further segments.
f)Different people have different requirements from products because of their level of expertise. The most obvious segmentation takes place between amateur and professional markets, with amateur musicians for example, seldom demanding the same quality of instrument that professionals require for public performance.
g)Different people consume the same products at different times. Although the conventional image of Corn Flakes is as a breakfast cereal, Kellogg’s identified that a significant proportion of its customers ate Corn Flakes as a snack food later in the day. To sustain sales in the face of fierce competition, it is decided to promote Corn Flakes to late-night snackers.
h)Certain brands of household products, for example, are designed to appeal to anxious or obsessive personality types. White-coated scientists are used to promote toilet cleaning products,
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to demonstrate their germ-killing properties and to satisfy housewives as to their power. The effectiveness of washing powders is assured in testimonials from smiling customers, comparing the whiteness of their laundry with their neighbours.
VII. Look through the text and find examples of countable nouns with irregular plurals VIII. Look through the text again and find the following types of uncountable nouns
a)type of food:
b)materials:
c)abstract nouns:
d)others:
Vocabulary development
IX. Look through ex. IV and VI and find the words or phrases that mean the same as the following.
a)central or most important part of anything;
b)extremely;
c)to show; to allow to be seen;
d)connected with the topic, problem; receiving attention;
e)demographic characteristics: masculinity and femininity;
f)spare time, time free from work;
g)grouping, classification to have the same income;
h)supreme, superior, more important than anything else;
j)a formal written statement describing someone's character and abilities.
X. Look through the article and find the Russian equivalents. What do you think about product requirements of these people?
−любитель перекусить перед сном;
−музыкант-любитель;
−участник, лицо, присутствующее на собрании, участвующее в конференции, выставке и т.д.
XI. Look through the words and decide which of them go before or after the word ‘Market’. Explain the meaning of these word combinations.
Developing, domestic, down, established, expanding, forces, leader, mass, new, overseas, place, price, survey, up.
Grammar Modal Verbs
XII. Read the articles about concentration and multi-segment strategies and insert modal verbs “can”, “may”, “to be able”.
MARKET TARGETING
Having identified relevant and viable segments in a market, an organization is faced with the decision as to which segment or segments to serve. There are two possible strategies: concentration strategies, whereby an organization focuses all its attention on a single segment in
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the market (known as a niche); and multi-segment strategies where a series of separate marketing activities is designed for different market segments.
a) Concentration Strategies
Directing all the marketing effort of an organization towards a single market segment is known as niche marketing. It ____ be very advantageous in certain circumstances. When a concentration strategy is implemented, there is seldom any confusion in the eyes of potential customers as to whether or not that organization____ ____ to meet their needs. Even small organizations ____ realistically aim to be market leaders in their chosen market segment.
There are, however, two important disadvantages of niche marketing. First, an organization
____ be vulnerable if powerful competitors turn their attention to that niche. Suppose, for example, a particular segment in a market starts to grow rapidly. The niche marketer will be faced by an increase in demand which ____ be difficult to satisfy in the short-term and competitors, who ____previously have ignored that segment will suddenly invest heavily to attract new business in this area. Having established a strong reputation in serving a particular market segment, it is relatively difficult to change direction and persuade the market that a different segment ____ be served equally well.
b) Multi-segment strategies
Many large organizations implement multi-segment strategies, attempting to reach a number of different market segments by developing different marketing programmes for each segment.
Multi-segment strategies tend to offer greater scope for expansion and growth than concentration strategies. It tends to increase sales revenue and this ____ lead to economics of scale in production. The main disadvantage of this approach is that it requires a high level of marketing expertise and will incur higher marketing costs than concentration strategies. It ____
be that resources are spread too thinly to be effective in establishing a presence in the chosen segments.
XIII. Read two passages taken from the article “Loo k, no hands” published in the magazine “The Economist”. Cross out modal verbs in bold print that do not fit.
One day car 1may/ can come with an invisible chauffer
Google first revealed in 2010 that it had been working on self-driving cars. This fits in with its work on mapping and soft –ware and 2. might/should give users extra time to surf the web, boosting Google’s profits. Last year the company released a video of a blind man sitting in the driver’s seat of one of these albeit with a passenger as backup. Sergey Brin, one of the internet company’s founders, expects its autonomous driving system to be ready for the market in five years. That 3. may/ could be optimistic, but by the 2020s some cars that drive themselves most or all of the time 4. could/ must well be in volume production. This 5. will/should have big consequences.
Google’s stunt with the blind man points to another big advantage of the driverless car: it 6. can/must provide mobility for the growing number of older and disabled people in the rich world and in some emerging markets too. A baby born today 7. might/ can easily live to 100, but from the age of about 75 many people 8. can/have to suffer health problem affecting their ability to drive. Parents 9. will/may welcome a car that does the school run for them. And teenagers 10. may/ should no longer be put off getting their first car by tough driving tests and steep insurance rate because they will need neither licenses nor personal insurance. Business travelers 11. can/may sleep in driverless Winnebagos that hurtle down the motorways at night, delivering them to the next morning’s meeting.
(The Economist, p. 12-13, April 20th. 2013)
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Which type of marketing strategies is described in the article? Give reasons to prove your point of view.
Vocabulary development
XIV. Look through ex. XIII and find the words or phrases that mean the same as the following.
1.to carry out an agreement, promise, plan
2.to bring on oneself
3.not protected against attack
4.income
XV. Think of possible synonyms for the following verbs:
to implement, to incur, to lead, to face, to invest, to increase, to offer, to satisfy.
XVI. Look through ex. XIII and find the words or phrases that have opposite meanings. seldom, vulnerable, an increase, short term, to ignore, marketing costs, thinly spread,
effective, rapidly.
XVII. Choose the right answer:
1. We need more people to buy this product. What is another way of saying this?
a)we need to match demand
b)we need to stimulate demand
c)we need to supply demand
2.The recent hot weather has… demand for ice-creams and cold drinks.
a)boosted
b)booted
c)bumped
3. The sales forces are doing a great job. We have to work overtime at the factory to keep… with the demand
a)up
b)on
c)going
4. “Coca-Cola are currently the… in this part of th e world, but Pepsi are pushing them hard.
a)competitors
b)market leaders
c)beginners
Communication Practice
XVIII. Let’s revise the key concepts of this unit. What do these expressions mean?
1)To study consumer behaviour stands for …
2)To conduct market research suggests …
3)To have insufficient resources implies …
4)Customers are geographically scattered if…
5)To have a strong foothold means…
6)Customer requirements from the products vary …
7)To be designed for low income brackets indicates….
XIX. With your partner discuss the following questions:
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1)Why is it important for a company to study consumer behaviour?
2)How can a company conduct a market research?
3)Why should a company target their products at selected parts of the market?
4)What is known as target marketing?
XX. Read the passage taken from the article “Dreams on wheels” published in “The Economist” and speak with your partner about target marketing in the world car industry. Use Figure 4.1. to organize your presentation.
In a recent study of motor-industry executives from around the world by KPMG, those from rich countries said customers were scaling down to smaller, more effective and green models, whereas those from the BRIC countries reported that the buyers wanted upmarket models. Even those who could not currently afford these seemed to be looking forward to the day when they would. Tata’s super-cheap Nano has not sold well because India’s first-time car buyers would rather wait than drive what they see as a poor man’s car.
(The Economist, p. 14, April 20th. 2013)
Product version 1 Product version 3
Product version 2
Market segment 1
Market segment 2
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Market segment 3 |
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Figure 4.1. Target marketing
XXI. Speak about the advantages and disadvantages of two types of strategies using the following word combinations and Figure 4.2.
-there is seldom confusion in the eyes of potential customers
-to be market leaders
-to be faced with an increase in demand
-a high level of marketing expertise
-resources are (not) spread too thinly
-to offer greater scope for expansion
-a strong reputation in serving a particular market segment
Market segment 1
Concentra
Organization Market segment 2 -tion strategy
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Figure 4.2. Market targeting strategies
Reading --- PART 2
XXII. Read the article about market positioning and find a key sentence in each stage.
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MARKET POSITIONING
This final stage of the process of target marketing involves designing product features and creating a distinct image that appeals specifically to the chosen target market segment and sets the product apart from the competition. The term positioning refers to the way in which the product is positioned in the mind of the consumer – it is designed so that members of the target market segment will recognize that it is the best product for them. (See Figure 4.5) Product positioning involves a number of important stages.
Stage 1: Identify key product characteristics
The product features that members of the target market segment consider to be the most important when considering which product to buy should be identified and given some sort of weighting. Note that these features may be tangible (such as colour, size, design), but also intangible (such as reputation or guarantees).
Stage 2: Draw up a perceptual map
This is a useful tool by which the current brands available to a market segment can be depicted visually. In its simplest form, the perceptual map consists of a grid that shows the two most important product attributes identified at Stage 1 placed on two axes of a grid (see Figure 4.4.). Qualitative marketing research enables consumer perceptions about the current brands to be plotted, so that an organization can see at a glance where competition is at its most intense and where there might be gaps in the market.
High price levels
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Figure 4.3. A perceptual map of food retailing
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Stage 3: Decide on a competitive strategy
The decision then needs to be made as to whether to compete head-on or to position away from the competition. In Figure 4.4 it can be seen that different retail formats take different positions in food retailing. A new organization trying to enter this market will have to decide whether it should attempt to compete head-on with existing suppliers or to find a position on the map, such as the bottom right quadrant, where little competition exists. There are advantages and disadvantages to both strategies.
Stage 4: Design product attributes and associated imagery
At this stage the features of the product should be designed, along with the type of imagery that will be used to help the targeted customer identify the benefits being offered to them. Features such as brand name, packaging, advertising themes, price levels and distribution outlets are all important in creating this position in the mind of the customer – in other words, the marketing mix is the tool box that enables that position to be established.
Stage 5: Sustain a competitive advantage
The establishing of a market position that sets a product apart from competitors’ products in the eyes of its target market is known as creating a competitive advantage. To sustain a competitive advantage requires the continual collection and use of marketing information to ensure that the needs of target markets are being met more effectively and efficiently.
Vocabulary development
XXIII. Match the words from the article with their corresponding definitions.
1)to make smth different from or better than other things synonym distinguish (paragraph 1);
2)to use all your power and influence to support someone or something: (paragraph 2);
3)things have value but do not exist physically(paragraph 2);
4)network of squares on maps, numbered for reference(paragraph 3);
5)to mark, calculate, or follow the path of smth (paragraph 3);
6)immediately(paragraph 3);
7) if two people or teams meet in an argument, competition etc, they compete against each other and try to win in a very determined way(paragraph 4);
8)a shop, company, or organization through which products are sold: (paragraph 5);
9)to make something continue to exist or happen for a period of time synonym maintain: (paragraph 6).
XXIV. Fill in the missing letters.
1)Data collected by market research can be ‘qu- - - itative’ (factual and numerical) or ‘qu - - itative (opinions and experience that are complex to assess).
2)Marketers tend to emphasize ‘be - - -its’( the a dvantages for the customer) rather than ‘fea
- - -es’ ( that is technical characteristics of a product).
3)A name or symbol that has legal protection is called a ‘registered tr - - - - - - k’.
4)The success of any business or consumer product depends in part upon the ‘t - - - et m - - -
-t’s’ ability to distinguish one product from anoth er.
5)‘B - - - -ing is the major tool marketers have to distinguish their products from the competition’s.
6)A brand is a name, term, symbol, design or combination thereof that ‘i - - - - fies’ seller’s
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products and differentiates them from competitors’ products.
7) A brand name is that part of a brand that can be spoken, including ‘l - - - ers’ while the elements that cannot be spoken are called the ‘b - - - d m- - k’.
Communication Practice
XXV. Read the article “Three Elements of Success” p ublished in the newspaper “Vedomosti” and analyse the process of market positioning of the company Scarlett with your partners. Use Figure 4.4 as the basis for your analysis.
Identify target market(s)
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Figure 4.4. The process of market positioning
Три слагаемых успеха
История торговой марки
Отечественный рынок бытовой техники уже несколько лет демонстрирует высокую активность и значительные темпы роста. До недавнего времени в явных лидерах были бренды – гиганты, чьи имена у всех на слуху. С недавних пор позиции стали успешно атаковать молодые марки, которые постепенно становятся все более привлекательными для наиболее массового «среднего» потребителя.
Последние три года российский рынок бытовой техники поражает своими темпами роста: они колеблются от 18% до 25%. С ростом самого рынка растет активность присутствующих игроков, увеличивается и рекламные бюджеты, придумываются новые маркетинговые ходы. Наряду с этим все громче заявляют о себе компании, появляющиеся сравнительно недавно.
БрэндScarlett, под которым продвигается малогабаритная бытовая техника, пришел в Россию в 1996 году и сразу продемонстрировал завидный рост объема продаж в среднем на 30%! По данным исследовательской компании ComCon-2 эта марка занимает третью позицию по России после Tefal и Moulinex, подвинув даже Philips, Rowenta и Braun.
Залогом успеха Scarlett стало т о, что специалистам компании удалось сделать качественную и современную бытовую технику доступной самым широким слоям покупателей. В компании отказались от модных дополнительных опций и технических «наворотов» в пользу простоты, надежности в эксплуатации и функциональности. Такой подход позволил убить сразу «двух зайцев»: сделать продукцию Scarlett доступной, сохранив при этом качество и доверие потребителя.
Второй шаг был также революционным: частичный перенос производства ряда изделий в Юго-Восточную Азию на заводы Гонконга и Южного Китая, которые входят в тройку ведущих предприятий региона. «Потребителю Scarlett не надо бояться «азиатской сборки», -- заверяет директор по продажам Юрий Леонов. Предприятия, на которых собираются изделия одни из самых высокотехнологичных. Эксперты Scarlett осуществляют двойной контроль качества: как в процессе производства, так и во время отгрузки.
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