Step 7 Marketing

Vocabulary bank

advertising agency

benefit

billboard advertisement

brand

buying habits

customer segment study

demand

design

desperately seek ways to increase the business

differentiate the brand in the eyes of consumers

distribution

end-users

exceed expectations

features

form the basis for the new brand initiative

fragmented market

generate positive publicity

hire purchase

identify consumer needs

image

label

outlet

PR –public relations

promotion

publicity

target an audience

Marketing mix or ‘the four Ps’ include:

• Product – the goods or the service that you are marketing. A ‘product’ is not just a collection of components. A ‘total product’ includes the image of the product, its design, quality and reliability – as well as its features and benefits. Products have a life –cycle, and companies are continually developing new products to replace products whose sales are declining and coming to the end of their lives.

• Price- making it easy for the customer to buy the product. Pricing takes the account of the value of a product, its quality, the ability of the customer to pay, the volume of sales required, and the prices charged by the competition. As fixed costs stay fixed whatever the volume of sales, there is usually no such thing as a ‘profit margin’ on any single product.

• Place – getting the product to the customer. Decisions have to be made about the channels of distribution and delivery arrangements. Retail products may go through various channels of distribution: producerend-users; producerretailersend-users; producerwholesalersretailersend-users, etc.

• Promotion – presenting the product to the customer. Promotion involves the packaging and presentation of the product, its image, the product’s brand name, advertising, slogans, price lists, after-sales service, trade exhibitions or fairs, PR, publicity and personal selling. Every product must possess a USP – unique selling proposition – the features and benefits that make it unlike any other product in its market.

Product advertising is an important part of the marketing mix. Its aim is to increase sales by making a product or service known to a larger audience and by emphasizing its positive qualities. A company can advertise in a variety of ways, depending on how much it wishes to spend and the size and type of the audience it wishes to target. The different media for advertising include television, radio, newspapers and magazines, the Internet and direct mail.

USP – Unique Selling Proposition

AIDA – Attention, Interest, Desire, Action

Vocabulary exercises

1. Match these ways of promoting products with their descriptions.

packaging, personal selling, points of sales advertising, PR, publicity, sales literature, showrooms, sponsorship, telephone sales, trade fairs and exhibitions, word of mouth

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

2. Displays in retail outlets can attract the attention of potential customers.

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

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

5. Potential customers will 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 new developments through newspaper articles. You can inform the press by using 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 rep can visit customers: this is the most effective method of promotion, but also the most expensive.

2. Categorize the following aspects of marketing according to the well-known «4P’s» classification of the marketing mix – product, price, promotion, and place.

advertising commercials franchising inventory market coverage optional features points of sale public relations retailing transportation

after-sales service credit terms free samples line-filling market penetration packaging posters publicity sizes vending machines

brand name characteristics going-rate list price market skimming payment period prestige pricing quality sponsorship warehousing

cash discounts distribution channels guarantee mailings media plan personal selling production costs quantity discounts style wholesaling