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Scarlett работает в партнерами в 80 городах России, СНГ и Балтии. Среди ключевых дилеров компании – крупнейшие региональные сети, такие как, «В-Лазер» на Дальнем Востоке, «RD Elektroniks» в Латвии, « Техносила», «Аристон» и «Мир» в Москве.

Откроем еще один маркетинговый секрет этой успешной торговой марки: в отличие от дистрибьюторов корейских брэндов, работающих на грани себестоимости, маржа для дистрибьюторов Scarlett составляет 15%--17%, а для розничных продавцов порой и 50%, что в среднем на 5% выше, чем у других брэндов.

Совокупность всех этих удачно подобранных методов работы позволяет Scarlettзанимать сегодня от 35% до 50% рынка в классе standard.

XXVI. With a partner act out an interview with Mr Leonov, who is ready to share marketing experience of the Scarlett company.

Student A

You are going to write an article on effective marketing policy of the company.

Student B

You are MrLeonov, who is sharing marketing experience of Scarlett company.

XXVII. With a partner think of one well-known product you would like to buy just for the brand name, one you would buy for the price and one for its packaging. Then for each product discuss the company’s target marketing. Use your analysis on Figures 4.1; 4.5.

XXVIII. Your are produces. Describe the process of target marketing for your company.

Think about:

1)Market segmentation.

2)Market targeting.

3)Market position for your product.

4)Draw a perceptual map for your product.

Base your presentations on Figure 4.1

 

 

Market

 

Market

 

Market

 

 

 

 

segmentation

 

targeting

 

positioning

 

The

Marketi

 

 

 

 

 

(deciding

 

 

 

 

 

 

 

 

 

mar

ng

 

 

 

 

 

 

 

(identifying

 

which groups

 

(creating a

 

 

 

 

 

keti

informat

 

 

 

 

 

similar

 

of customers

 

concept to

 

 

 

 

 

ng

ion

 

 

 

 

 

groups of

 

to aim for)

 

appeal to the

 

 

 

 

 

mix

 

 

 

 

 

 

 

customers)

 

 

 

target

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

market)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 4.5. The process of target marketing

Writing “Golden rules” for business writing

1)Give your letter a heading, it will make it easier for the reader to understand your purpose.

2)Decide what you are going to say before you start to write a letter. You should always plan ahead.

3)Use short sentences

4)Put each idea in a separate paragraph. Number each of the paragraphs to help the reader understand better.

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5) Always use a rhetorical canon to organize your writing “Consider your reader in the light of your purpose” . It explicates that your reader

must be able to see exactly what you mean:

your letters should be clear

must be given all the necessary information:

your letters should be complete

is a busy person with no time to waste:

 

your letters should be concise

must be written in a sincere, polite tone:

 

your letters should be courteous

should not be distracted by mistakes in grammar, punctuation or spelling

∙ your letters should be correct 6) Always follow the right layout in your letter

With your partner consider the layout and style of this letter. What kind of impression might this letter give the reader? Use “Golden Rules” to suppo rt your point of view. Improve this letter.

Dear Madam,

Your request for our catalogue and price list

As requested, we enclose for your attention our price list and catalogue. I should like to take this opportunity of drawing your attention to the fact that all our products are manufactured from completely natural ingredients and that we do not utilize any artificial additives whatsoever.

There are 213 different items in the catalogue and our prices are reasonable and our quality is good. This is the first time that we have included Scratch’n’Sniff TM samples of our ten most popular aromas.

Should you require further information, please do not hesitate to contact us. If the undersigned is unavailable, the Sales Manager’s personal assistant will be delighted to assist you.

We look forward to receiving your esteemed order in due course.

Yours faithfully,

J.C. O’Reilly, Sales Manager

(Leo Jones New International Business English, p 50)

Vocabulary Review

Test yourself

Think of right definitions for the terms from this unit.

a)attempting to attract a number of different market segments

b)using the marketing mix to distinguish a product from its competitors and appeal to a target market

c)dividing markets into clusters of people who have a similar approach to life

d)dividing markets into clusters of people who react to and interact with a product in similar ways

e)directing all the marketing efforts of an organization forwards a single market segment

f)dividing markets into clusters of people who live in the same area

g)attempting to attract a specific market segment or segments

h)attempting to attract a single market segment

i)a grid that depicts consumer perceptions of the attributes of competing products in a market

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j)designing complete marketing programmes to meet the needs of different segments in a market

k)the reason why a customer might choose a certain product rather than its competitors

l)dividing markets into clusters of people who share demographic characteristics, such as age, gender and income bracket

m)dividing markets into clusters of people who are looking for similar benefits from the products and services they buy

Andy Fennell, the marketing boss of Diageo, drinks firm, thinks this is “ a golden era for …brand builders”.

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Unit 5

Product Planning

When you finish this chapter, you should:

Before you read the text, discuss with a partner the following questions.

1)What does a product mean for a company?

2)What does a product mean for a customer?

Reading --- PART 1

You will read a passage about the history of marketing. Before you read look at the words and phrases taken from the passage. In what context might they be mentioned?

a bundle of attributes, physical entity, to sell excitement, purpose of exchange.

I. Read the passage and answer the questions that follow (1—7).

PRODUCT PLANNING

Product planning is systematic decision making relating to all aspects of the development and management of a firm's products, including branding and packaging. Each product consists of a bundle of attributes (features, functions, benefits, and uses) capable of exchange or use, usually a mix of tangible and intangible forms. Thus, a product may be an idea, a physical entity (a good), or a service, or any combination of the three. It exists for the purpose of exchange in the satisfaction of individual and organizational objectives.

A well-structured product plan enables a company to pinpoint opportunities, develop appropriate marketing programs, coordinate a mix of products, maintain successful products as long as possible, reappraise faltering products, and delete undesirable products. A firm should define its products in three distinct ways: tangible, augmented, and generic. By considering all three definitions, the company is better able to identify consumer needs, competitive offerings, and distinctive product attributes. This is illustrated in Figure 5.1.

A tangible product is a basic physical entity, service, or idea; it has precise specifications and is offered under a given description or model number. Heinz ketchup, an IBM business computer, a Nikon 35mm camera, a manicure are examples of tangible products. Colour, style, taste, size, weight, durability, quality of construction, and efficiency in use are some tangible product features.

An augmented product includes not only the tangible elements of a product, but also the accompanying cluster of image and service features. For example, Rolls-Royce autos are popular predominantly due to the image of luxury and status they convey. The augmented product for a computer includes the availability of software packages, instructions for users, maintenance, and service promptness.

A generic product focuses on what a product means to the customer, not the seller. It is the broadest definition and is consistent with the marketing concept:

"In the factory we make cosmetics, and in the drugstore we sell hope." (Charles Revson, founder of Revlon)

"People no longer buy shoes to keep feet warm and dry. They buy because of how shoes make them feel - masculine, feminine, rugged, different, sophisticated, young, glamorous. Our business now is selling excitement rather than shoes." (President of Melville Corp., owner of Thom McAn)

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Actual /

 

Augmented Product /

Tangible Product

 

Extended

Color

 

Image

Design

 

 

Status

Quality

 

 

Guarantee/warranty

Size

 

 

Delivery

Weight

 

 

Installation

Features

 

Repair facilities

 

Materials used

 

Instructions and technical

in construction

 

advice

Efficiency in

 

Credit

use

 

Return policy

Power source

 

 

 

Core / Generic Product

Stores, preserves, cools, and otherwise helps to satisfy home food-consumption needs

Figure 5.1 Illustrating the Three Product Definitions

II. Answer the questions:

1)What is product planning?

2)What is the purpose of an exchange?

3)What are the functions of a well-structured product plan?

4)Why are three definitions of a product important for a company?

5)What are tangible product features? Give your examples.

6)What are augmented product features? Give your examples.

7)What do generic product features focus on?

III. With a partner think of decide if the following statements are true or false.

1) The product isn’t an important variable in the marketing mix.

2)A product may be a physical entity or a service.

3)A product is a complex of tangible and intangible attributes that a seller offers to a potential buyer.

4)When people buy a product, they are also buying the benefits and satisfaction they believe the product will provide.

5)A well-structured product plan should not require alteration.

IV. Find words in the text with the following meanings.

1)a number of things fastened, tied or wrapped together(paragraph 1);

2)something that can be known by touch, definite(paragraph 1);

3)something that has real existence; a thing's existence(paragraph 1);

4)purpose(paragraph 1);

5)to find, to hit a target with the required accuracy(paragraph 1);

6)to make able; to give authority or means(paragraph 2);

7)to fix a price for(paragraph 2);

8)to move, to act in an uncertain or hesitating manner(paragraph 2);

9)to take out(paragraph 2);

10)common to a whole group or class(paragraph 2);

11)made or became greater, increased(paragraph 2);

12)something offered or presented(paragraph 2);

13)likely to last for a long time(paragraph 3);

14)number of persons, things, objects in a small close group(paragraph 4);

15)something expensive that gives enjoyment and pleasure(paragraph 4);

16)to make known ideas, views(paragraph 4);

17)something that may be used or obtained(paragraph 4);

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V. With a partner discuss the necessity of product lines for companies.

Now let us compare your ideas with the information from the article "Why Form Product Lines?" which presents company’s attitude to the process of organizing related items into product lines.

Read these paragraphs and identify benefits gained due to organizing items into product lines. One item is extra!

1)advertising economies

2)package uniformity

3)standardize components

4)efficient sales and distribution

5)equivalent quality

6)developing brand loyalty

a) Product lines provide an opportunity for standardizing components, thus reducing manufacturing and inventory costs. For example, many of the components Samsonite uses in manufacturing its folding tables and chairs are also used in its patio furniture. General Motors uses many component parts on multiple automobile makes and models.

c) A product line allows for package uniformity. All packages in the line may have a common look and still retain their individual identities. Thus, one item in the line can advertise another. Some examples include Lean Cuisine frozen dinners, Green Giant frozen vegetables, and Hermes men's toiletries.

b)A brand name symbolises a certain quality level to buyers. Purchasers usually expect and believe that all products in a line are about equal in quality. Consumers expect, for example, that all Kodak films, all Campbell's soups, and all Mary Kay cosmetics will be of comparable quality.

c)A product line enables sales personnel for companies like Procter & Gamble to provide a full range of product alternatives to customers. Distributors and retailers are often more inclined to stock the company's products if it offers a full line. Transportation and warehousing costs are likely to be less for a product line than for individual items.

d) Product lines provide economies of scale in advertising. Several products can be advertised under the umbrella of the line. Rising media costs increase the advantages of product line advertising. Campbell's Soup Company, for example, can talk about Campbell's being "m-m-good" and promote the entire line.

Vocabulary development

VI. Match the nouns to the verbs with which they are commonly used. Use them in the sentences of your own.

1) to identify

a product mix

2) to pinpoint

b successful products

3) to coordinate

c consumer needs

4) to maintain

d separate marketing strategy

5) to delete

e opportunities

6) to constitute

f mix of products

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7) to require

g delete products

VII. Choose the right answer.

1) Coca-Cola have got a good product, but they also have fantastic brand… . A thirsty Cola drinkers won’t buy another brand even if there’s no Cola in the shop.

a)liking

b)popularity

c)loyalty

2) It takes good brand… and a lot of money to make a product into an internationally famous brand.

a)management

b)help

c)product

3)It is the oldest and most important message for any sales persons: sell… , not features.

a)profit

b)benefits

c)advantages

VIII. With your partner discuss the following below word-combinations, then use them to complete the paragraph. Two of them are extra!

Brand awareness, brand names, brand loyalty, market leader, market share, product lines, product mix.

… … is a well-known company in the household and pe rsonal goods sector. It has 22 different

1… including baby care, cosmetics, household cleane

rs, laundry, oral care, etc. The combination.

n of all these makes up 2… (or product range). This

company has many well-known 3… such as

Ariel, Pantene, Pampers. This company spends a very large marketing budget maintaining the 4 …of its customers – it wants them to be satisfied a nd committed to further purchases. But even larger sums are needed when it launches a new product – 5…( brand recognition) has to be built from zero.

Do you know the name of the company? Do you use the products of this company?

Grammar

First and Second Conditional Sentences

Conditional (1)

If the brand is really successful, costs will (may/ can) drop and profits will increase.

Conditional (2)

If the brand were really successful, costs would drop and profits would increase.

IX. Rewrite each of the following sentences beginning with “If”. Use the first or the second type of conditionals according to the meaning of the sentence. Think about the second part of your sentence.

The following conditions are favorable to successful branding:

1)When customers start using a brand, they want to be able to continue using it.

2)The product is easy to identify by brand or trademark.

3)The product quality is the best ‘value’ for the price, and the quality is easy to maintain.

4)The demand for the general product is large.

5)Producers must use aggressive salespeople to get favorable shell locations or display space in stores.

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6) The demand is strong enough so that the market price can be high enough to make the branding effort profitable.

X. Look through characteristics of a good brand name. Which of them are important for customers? Give your examples of such brand names. Make conditional sentences with them.

Short and simple

Easy to spell and read

Easy to recognize and remember

Can be pronounced in only one way

Suggestive of product benefits

Not offensive, obscene, or negative

Always timely (does not get out of date)

Adaptable for any advertising medium

Legally available for use ( not in use by another firm)

XI. Use own ideas to complete the sentences.

1)A potential customer won’t buy a brand unless …

2)If a business traveler gets a dirty room in a Hilton Hotel,….

3)If consumers can’t recall the brand name without help, they…

4)If there were many ‘nothing’ brands on the marke t, …

5)If all products were similar in type and quality, …

6)If potato chips get state on the shelf because of poor packaging, the customer …

7)If the objective of a company is to satisfy customer needs, managers ….

8)If a customer doesn’t see an ‘impulse’ product a t the right time, the sale …

9)If the product is expensive, the customer may want …

Communication Practice

XII. Let’s revise the key terms of this unit. Define them and explain their economic significance

1)The term ‘product’ means

2)The term ‘product mix’ stimulates

3)The term ‘product lines’ emphasizes

4)The term ‘branding’ focuses on

5)The term ‘packaging’ highlights

XIII. With your partner discuss the following questions.

1)What influences a customer most when they are choosing a product – the price, the appearance or the features of the product? Use your examples to support your point of view.

2)Do you know any particular products that use more packaging than is necessary? Why do you think manufactures use packaging to such an extent? What problems can this cause?

3)What is socially responsible packaging?

4)What is the difference between a brand name and a trademark? If so, why is this difference important?

XIV. Work with your partners in small groups and prepare to report to the class on your discussion. Use the phrase given below to organize your brief presentations

Group A

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Discuss several ways in which physical goods are different from pure services. Give an example of a good and them an example of a service that illustrates each of the differences.

Group B

Consumer services tend to be intangible and goods tend to be tangible. Use an example to explain how the lack of a physical good in a ‘pure service’ might affect efforts to promote the service.

Group C

List five brand names and indicate what product is associated with the brand name. Evaluate the strengths and weaknesses of these brand names.

Group D

Suggest an example of a product and a competitive situation where it would not be profitable for a firm to spend large sums of money to establish a brand.

− I’d like to start by...

Now we’ll move on to...

 

 

 

 

Let’s begin by...

Let me turn now to...

 

 

 

 

First of all, I’ll...

I’d like now to discuss...

 

 

 

 

Starting with...

Let’s look now at...

 

 

 

 

XV. “The key to success in the luxury market, expla ins Mr Muller-Orvos, is that customers want to be able to tell their friends, families and business associates some good stories about what they have bought”. With your partner act out a role play.

Student A

You are Mr Muller-Orvos. You have just bought a product of your dream. You are so excited about it. You want everybody to know about this product.

Student B

You are Mr Muller-Orvos’s business partner. Your business partner is in high spirits about his purchase that you want to know about specific features of this good.

XVI. With your partner act out a role play.

You are product managers of a famous company that is going to launch a new product on the market.

1)discuss suitable strategies of market positioning;

2)pay special attention to the key features of your product and its possible market segmentation;

3)devise a product mix and a product line.

XVII. Read the article given below and discuss it with your friends. What is your point of view on the matter under discussion?

МОДНЫЕ БРЕНДЫ В ОПАСНОСТИ

Почти 60% американцев не придают значения этикетке на одежде

Нью-йоркское агентство по маркетинговым исследованиям Brand Keys опросило 7500 покупателей одежды, желая выяснить степень их приверженности тем или иным брэндам и ее динамику за последние годы. 5% опрошенных заявило, что громкое имя производителя для них теперь не так уж и важно. Лишь 10% признали, что

49

привлекательность дорогой этикетки для них в последние время повысилось. Наибольшее равнодушие проявили потребители в возрасте 45-59 лет: 69% из них сообщили, что фирменный ярлык для них значит “ гораздо меньше”, чем прежде. Однако и среди респондентов в возрасте от 21 года до 34 таких 41%.Сегодня привлекательность для потребителей и, следовательно, прибыльность товара в меньшей степени, чем прежде, зависят от торговой марки, говорит Роберт Пассикофф, президент Brand Keys. Ценности стали иными: Сегодня многие гордятся не тем, какой дорогой на них костюм, а тем, как разумно и рачительно они расходуют средства. Демократизация привела к изменению покупательских привычек и склонностей в отношении одежды. Дизайнерам с мировыми именами остается только подстраиваться под вкусы публики, чтобы и их продукцию вновь начали покупать, так же охотно, как повседневную одежду в дешевых отделах супермаркетов. (World Street Journal, 17.07.2002)

Writing

A letter of complain

You have read an extract below as a part of an article on energy drinks. You have decided to write a letter to the magazine responding to the points raised and expressing anxiety on social consequences of this product.

Dilbert, a cartoon character, once strapped a barrel-sized mug of coffee to his back to keep himself alert. Americans who dislike coffee have other options. “Wired Waffles” come with caffeinated maple syrup. Ubermonster Energy Brew can wash down Cracker Jack’d, a caffeinated snack. But are such foods safe? Monster Energy and Rockstar are served in large cans with 160mg of caffeine. A standard can of Coke has only 35 mg. The number of American emergency hospital visits involving energy drinks doubled between 2007 and 2011 to more than 20.000.

American sales of energy drinks were $8.6 billion in 2012, about 12 times their level a decade earlier, according to Euromonitor, a research firm. Sales in western Europe more than tripled, to $5billion, over the same period. Red Bull is America’s leader with 36% of sales, Monster has 29% and Rockstar – 8%.

(Buzz Kill The Economist, May 18th 2013, p. 56) Before you pass to writing tick the appropriate points

You have to write

A letter of complain

A letter for publication in the newspaper or a magazine

A letter agreeing with the points in the extract

Your main body paragraphs in the letter should

Be the same length

Follow one anther in a logical sequence

The tone of your letter should be

Respectful at all times

Aggressive and threatening if you feel strongly

The language you use will be

Formal because you are writing to a newspaper

Informal because you are expressing your own ideas

( Upstream, p233)

Vocabulary Review

Test yourself

Read the following text and decide which answer (A, B, C or D) best fits each gap.

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