Thinking Marketing

Everyone who works for the company must “think marketing”

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To think marketing we must have a clear idea of

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What the customers need

What the customers want

What causes them to buy

What the product is to the customer with its functional, technical and economic aspects as well as aesthetic, emotional and psychological aspects

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“Features”(what the product is) + “Benefit”

We must be aware of our firm’s strengths and weaknesses as well as the opportunities and treats we face in the market (S.W.O.T.)

5. Check if you know marketing terms. Fill the gaps in the sentences with the given words:

- commercials - place

- competes - posters

- design - price

- distribution - product

- end-users - promotion

- hire purchase - public relations

- image - weakness

- labels - radio spots

- mail order - rival

- materials - satisfy

- newspaper advertisements - strength

- opportunities - threats

- outlets

1. What is “the marketing mix”?

The marketing mix consists of “the four Ps”: providing the customer with the right P….. at the right P….., presented in the most attractive way (P…..) and available in the easiest way (P…..).

2. What is “a product”?

A product is not just an assembled set of components: it is something customers buy to s….. a need they feel they have. The i..... and the d….. of the product are as important as its specification.

3. What is “price”?

The product must be priced so that it c….. effectively with r….. products in the same market.

4. What is “promotion”?

The product is represented to customers through advertising (e.g. TV c….., r….., n….., p…..), packaging (e.g. design, l….., m…..), publicity, PR (…..) and personal selling.

5. What is “place”?

Your product must be available to customers through the most cost-effective channels of d……

A consumer product must be offered to e….. in suitable retail o….., or available on h….. or by m….. .

6. What is meant by “S.W.O.T.”?

A firm must be aware of its S…… and W….. and the O….. and T..... it faces in the market place.

6. Make a list of seven products (goods or services) that are produced or provided in your city or region.

a local brand of drink …………

a grocery product (breakfast cereal, health food, etc.) …………

an industrial product( machines, consumer goods, vehicles, etc.) …………

a place of entertainment (theatre, cinema) …………

an educational service …………

another well-known product …………

Discuss these questions about some of the products you’ve listed:

• What competition does this product face?

• What is the image of each product?

• What is the image of the company that produces it?

• How strongly or weakly is each of the products marketed?

• Where is each product advertised?

Which of these opportunities and threats do firms in your region face in the next two or tree years?

Competition from other local firms, or from other regions

Rise or fall in demand

Changes in customers’ tastes and buying habits

Higher wages and salaries

Customers becoming more price-conscious, or more quality-conscious

Cheaper, or better quality, imported goods

New technology

7. Sally and Don work in the Marketing Department of a food preserves company. Read their dialogue and find English equivalents to the expressions below:

- зрости (про ціну)

- підняти ціну

- рекламна компанія

- виробник, який встановлює найнижчу ціну на певний товар

- упаковка

- конкурент

- товар, рівень продажу якого суттєво залежить від ціни

- надавати перевагу певному товару

Don: Hi, Sally. I need to show you something. Look at these

figures. The price of sugar will increase by 10% next

year.

Sally: Oh, no. That’s terrible! It means trouble for our jam line.

Don: Precisely. Sugar is our main ingredient. So, what do you

think of that?

Sally: Well, we are not the price leaders in this area and jam is a

very price sensitive item. According to the market

research the consumers are not particularly brand loyal

about jam.

Don: Yes, that’s right. And the rising of the price of sugar will cause the increase of the price of our product. But I have

no idea.

Sally: What do you mean?

Don: What if there was a possibility of changing the ingredients

in the jam so that we wouldn’t have to raise the price.

Sally: Ah! Then we wouldn’t have to worry about the price rise

on sugar because we’d be able to sell jam at the same

price. The idea is that we could market cheaper jam.

Excellent! That would be a great promotional campaign!

Don: Sure. If we do it right we’ll sell more and become the

leader in the market.

Sally: Now the first thing is to talk to the Research and

Development team.

Don: Right, and we’ll see when they could have some samples

of new formulas ready.

Sally: What about the market research? I think we should

schedule some tests for responses to the R&D samples.

Don: Yes, I think so, too. We should also change the

packaging. There is a lot to do, Sally. Let’s continue the

talk in the cafeteria. It’s lunchtime already!

Sally: OK, let’s go. We’ve got a lot to discuss.

Complete the gaps with the words below:

Increase packaging competitor price leader price sensitive item

1. If the price of this product ….. nobody will buy it.

2. This company is the ….. in this area, they can sell the product at the lowest price.

3. Customers do care about the price on this product, it a very …..

4. Attractive ….. helps to sell products.

5. Our ….. has become the price leader in the market.

Answer the questions:

1. Who is the price leader?

2. What is Sally and Don’s idea of becoming the price leader in the jam market?

3. What goods in your local grocery store do you think are very price sensitive?

4. Do you agree that having many competitors in the same market influences your business? Explain your answer.

8. There are many ways of attracting customers to your product and keeping your brand name in the public eye. Fill in the gaps with suitable words:

Packaging Showrooms

Personal selling Sponsorship

Point of sale advertising Telephone sales

Public relations Trade fairs and exhibitions

Publicity Word of mouth

Sales literature

1. Brochures, leaflets and catalogues can describe your product in more detail and give more information that an advertisement. Potential customers can be sent direct mail.

Sales literature

2. Displays in retail outlets (supermarkets, chain stores, etc.) can attract the attention of the potential customers.

……………………

3. Labels and presentation increase the impact of your product.

……………………

4. You can contribute to the cost of a sporting or artistic event , where your brand name or logo is displayed prominently.

…………………….

5. Potential customers can come to your premises and see a display or a demonstration of your products and get hands-on experience

……………………

6. Your company takes a stand or mounts an exhibit to enable customers to see your products and talk to your representatives.

…………………..

7. The public are informed of a new development through newspaper articles. You can inform the press by issuing press releases.

…………………..

8. PR can ensure that your firm keeps a high profile, and that people are aware of your good reputation and image.

…………………..

9. Existing customers tell their friends or colleagues about your product and hopefully recommend it to them.

………………….

10. Your staff can call customers, or customers can call a toll-free number to request sales literature or ask for information.

…………………..

11. Your sales rep can visit customers: this is the most effective method of promotion, but also the most expensive.

…………………..

9. Here are some global brands:

Coca-Cola Kodak

Nescafe Canon IBM

Sony McDonald’s

Mercedes-Benz Rolex

Gucci Speedo Christian Dior

• Can you name other well-known brands which are their competitors?

• Name another five famous global brands. What products are they connected with?

• Why do people pay so much money for these brands?

• How important are well-known brand names for you personally?

10. Read information about different techniques to affect a consumer and persuade him to buy the product: