Working on the text.

Ex.1. Read and translate the text paying particular attention to the words in italics. Use a dictionary if necessary.

Market Segmentation.

Research is the basic tool of marketing. A marketer must determine what customer needs are. Marketing experts have developed techniques for determining the needs of prospective cus­tomers. It's done by way of market segmentation.

How can market segmentation be of help to a manager who wants to develop a new product? Every market can be divided into segments or, in other words, into separate groups of con­sumers. First there are demographic factors like age, income, educational background, occupation, size of family, type of home and neighbourhood, etc. Then there are psychographic factors - the customers' opinions and interests, hobbies, vacation spots, fa­vourite sports etc.

Then a product is compared with the goods already estab­lished in the market by quality and quantity standards. To be a success you must be ahead of your competitors.

Competition never stops. That is why market segmentation must never stop as well. It should be on a permanent basis. In­troduction of a pioneer product can immediately change the com­position and number of a consumer grouping.

The fundamental principles for a marketer are:

1. understand the customer (through research)

2. understand the grouping (to which the customer or business belongs)

3. create a choice (a difference in price, concept or value that will distinguish your product)

4. communicate that choice (through promotion and advertising)

Consumer marketing should be based on understanding consumer values, wants and needs.

Ex.2. Say what you have learned about:

1. the basic tool of marketing;

2. techniques used by marketing experts;

3. the role of the introduction of the pioneer product;

4. the fundamental principles for a marketer.

Ex.3. Think and answer.

1. Why should market segmentation be made on a permanent basis?

2. Why is it very important to encourage competition?

Ex.4. Read the text. Insert the words from the ones given below.

Part 1.

Many duties that were traditionally the … of the produc­tion or finance department before the 1950s, have become the duties of the marketing department because of the marketing con­cept. This concept … two ideas:

The marketing department becomes the main management … in a company. The company recognizes that essentially every important decision … the company is in reality a marketing deci­sion. Because the firm has the technological … to produce almost anything, most companies realize that … is no longer a prob­lem. The problem today is one of determining whether or not the cor­poration can … the products it is capable of producing.

(facing, production, responsibility, force, ability, market, involves)

Part 2.

The company becomes completely … oriented. Most of today's new products come about as a result of extensive marketing … . With the consumer foremost in the … of the company, long before production begins, the firm must first answer such questions as:

-Is there a need or want for the … that we are capable of pro­ducing?

-What … or attributes should that product possess?

-How can we differentiate our product from similar and … products?

-What styles, colors, models, sizes, etc., should be produced?

-What channels of … are best?

-What price policy will most maximize … ?

-What types of people or market … will the product most ap­peal to?

(profits, distribution, re­search, competing, mind, segments, characteristics, product, consumer)

Ex.5. Say what you have learned about:

1. the changes in the responsibilities after the 1950s;

2. the main management force in a company;

3. the consumer oriented policy of the company.

Unit 3

SUBJECT for STUDY: Marketing.