 Comprehension:

1. What is marketing?

2. What is the key to successful marketing?

3. Name four elements of marketing.

4. What is the most effective combination of the 4 Ps?

5. Product is the most important element of the marketing mix, isn’t it?

6. What factors are considered when setting a price?

7. What must the marketer do if the price is above competitors’ price?

8. When can a product be a total sales failure?

• Summarizing:

Complete the following sentences to summarize the text above:

1. Marketing is a system of business activities designed to … .

2. Successful marketing is … .

3. Product, price, promotion and place are … .

4. Product strategy means … .

5. When you set a price, you must consider the costs and business expenses of the product … .

6. Marketers may choose a price above or … .

7. It is necessary to select the best distribution channel to get the product … .

• Viewpoint:

Is marketing art or science?

9. The centrality of marketing

Lead-in: Can you name the four factors that are called “marketing mix”? Key words and phrases 1. market segmentation – ринкова сегментація 2. competitor – конкурент 3. to launch a product – запускати товар у виробництво 4. market research – ринкове дослідження 5. sales representative – торговий представник 6. brand name – марка товару 7. distribution channels – канал розповсюдження, збуту 8. inventory size – величина поточного запасу 9. advertising – реклама, рекламна справа 10. publicity – популярність, реклама 11. sales promotion – просування товару 12. discount – дисконт, скидка 13. credit terms – кредитні умови 14. industrial marketing and consumer marketing – промисловий маркетинг та споживчий маркетинг

“The last stage of fitting the product to the market

Is fitting the market to the product.”

(Clive James, Australian writer and broadcaster)

Most management and marketing writers now distinguish between selling and marketing. The ‘selling concept’ assumes that resisting consumers have to be persuaded to buy non-essential goods or services. The ‘marketing concept’, on the contrary, assumes that the producer’s task is to find wants and to fill them. As well as satisfying existing needs, marketers can also create new ones.

Marketers are always looking for market opportunities – profitable possibilities of filling unsatisfied needs or creating new ones in areas the company is likely to enjoy a differential advantage. Market opportunities are generally isolated by market segmentation. A company has to decide what goods or service to offer. This means that much of the work of marketing has been done before the final product comes into existence. The company must also take into account the existence of competitors.

Rather than risk launching a product or service on the basis of intuition, most companies undertake market research (GB) or marketing research (US). They collect and analyze the information about the potential market, about consumer reaction to particular product or service and so on. Sales representatives are another important source of information.

Once a product concept has been established, the company has to think about the marketing mix, i.e. the various elements of marketing program. The best-known classification of these elements is the ‘4 Ps’: product, place, promotion and price. Aspects in marketing products include quality, features, style, brand name, size, packaging, services and guarantee. Place in marketing includes distribution channels, points of sale, transport, inventory size, etc. Promotion groups together advertising, publicity, sales promotion, personal selling, while price includes the basic list price, discount, payment period, credit terms, and so on. The producer market is larger than the consumer market since it contains all the raw materials, manufactured parts and components, plus capital equipment such as buildings, machines, energy, and services ranging from cleaning to management consulting. Consequently, there is more industrial than consumer marketing. It must be remembered that apart from consumer markets there exists an enormous producer or industrial or business market.

 Comprehension:

1. Characterize the ‘selling concept’ and the ‘marketing concept’.

2. Why do companies undertake market research?

3. What is marketing mix?

4. Characterize each component of marketing mix.

5. What does a producer market consist of?

• Summarizing:

Complete the following sentences to summarize the text above:

1. There are two concepts in modern marketing, the ‘selling concept and ... .

2. The ‘selling concept’ assumes that ... .

3. The ‘marketing concept’ assumes that ... .

4. The various elements of marketing program are called ... .

5. Apart from consumer markets there are ... .

• True-false questions:

1. Most management and marketing writers now distinguish between selling and marketing.	
2. ‘Marketing’ and ‘selling’ concepts do not differ very much.	
3. Marketers are always looking for market opportunities in areas the company is likely to enjoy a differential advantage.	
4. The only source of information for companies is market research.	
5. ‘Marketing mix’ means the various elements of marketing program.	
6. Apart from consumer markets there exists an enormous producer or industrial or business market.