Vocabulary

marketing – маркетинг (организация сбыта); реализация, сбыт

market – (n) рынок; (v) продавать

contest – конкурс для покупателей (организованный в рекламных целях)

advertisement – рекламное объявление, реклама

tantalizing – (зд) манящий, искушающий

merchandise – товар(ы)

price markdown – снижение цены, продажа по сниженным ценам

giveaway – товар, продаваемый с уступкой в цене или отдаваемый

бесплатно (в рекламных целях)

commercial – реклама по радио или телевидению

execution – выполнение, исполнение, работа

orderly – методичный, регулярный

insightful – требующий глубокого изучения

awareness – осведомлённость

outsmart – перехитрить

competitor – конкурент

cross-departmental teams – рабочие группы специалистов различных

отделов; многофункциональные сводные

команды специалистов

advertising – реклама

segment the market – сегментировать рынок (делить рынок на

потребительские группы в зависимости от их

запросов, с учётом возраста, пола, профессии,

дохода, образа жизни, места проживания и т. д.)

target market – целевой рынок ( определённая группа потребителей, чьи

запросы компания планирует удовлетворить)

position a product – позиционировать товар (определить позиции товара

на выбранном сегменте рынка с учётом уже

имеющихся там товаров-конкурентов)

COMPREHENSION QUESTIONS

1. How do you understand the term marketing? What activities does

marketing involve?

2. How does the American Marketing Association define marketing? What

does this definition suggest?

3. Comment on the statement, ”Marketing is too important to be left to the

marketing department”.

4. What is strategic marketing planning?

5. Outline the three stages and the ten steps in the strategic marketing

process.

B. Marketing Mix: Product and Price

Marketing can be divided into four P’s : Product, Price, Promotion, and Place. Each one plays a vital role in the success or failure of the marketing

operation. This combination of the four P’s is known as marketing mix.

The product element of marketing refers to the good or service that a company wants to sell. Aspects to be considered in marketing a product include its quality, its features, style, brand name, size, packaging, services, and guarantee. This often involves research and development (R&D) of a new product, research of the potential market, testing of the product to insure quality, and then introduction to the market.

Marketers have a variety of ways to categorize products. The two most common product categorizations involve the degree of tangibility and the product’s use. If you were asked to name three popular products off the top of your head, you might think of Snickers, Levi’s, and Pepsi – or three similar products. You might not think of the Boston Celtics*, Disneyland, or the television show 60 Minutes. That’s because when we’re on the buying side of an exchange, we tend to think of products as tangible objects that we can actually touch and possess. Basketball teams, amusement parks, and TV programs provide an intangible service for our use or enjoyment, not for our ownership; nevertheless, they are products just the same.

Few products last forever. Most products go through a product life cycle, passing through four distinct stages in sales and earnings: introduction, growth, maturity, and decline. Most product life cycles today are shrinking dramatically. The proliferation of new products, changing technology, globalization, and the ability to quickly imitate your competitor is pushing

and pulling products through their life cycles at a fast pace.

“Well, gentlemen, we’ve got a new logo and a marvelous publicity

campaign ready. We just need to come up with a product.”

A company next considers the price to charge for its product. The price of a product should logically cover its production and distribution costs or overheads, such as rent and interest payments, and leave a small profit. But prices are also influenced by the level of demand, the prices of substitute products, and the prices charged by the competitors. Pricing is one of the most critical decisions a company must make because it’s the only variable that ultimately generates income. Developing an effective price for your product is like a game of chess: Those who make their moves one at a time – seeking to minimize losses or exploit immediate opportunities – will invariably be beaten by those who can envision the game a few moves ahead. Here are a few strategies that marketers use when setting their prices.

Many companies today simplify the pricing task by using cost-based pricing (also known as cost plus pricing). They price their products by starting with the cost of producing a product or providing a service and then adding a markup to provide a profit. Although this strategy may ensure a certain profit, by setting a minimum price for a product, companies using such a strategy tend to sacrifice profit opportunities. In fact, recent thinking holds that cost should be the last item analyzed in the pricing formula, not the first. Instead, companies should use priced-based pricing and focus on an optimal price for a product by analyzing a product’s competitive advantages, the users’ perception of the item, and the target market. By using this strategy, companies will force their costs down because they won’t be able to artificially shield their operating inefficiencies.

High quality products made with expensive components and requiring a lot of craftsmanship are obviously expensive. They also generally require “prestige pricing” as the consumers in their target market would not buy them if they thought the price was too low. The markets for most other goods are generally price sensitive, i.e. the lower the price, the greater the sales. Sometimes companies sell a popular product at a loss, hoping to attract customers who will also buy other products. This is known as loss-leader pricing. But for new products for which there is a sufficiently high demand, companies might charge a high initial price – a practice known as skimming– and then drop the price later, when the product is no longer a novelty and competition heats up. Alternatively, a company might try to increase sales volume and market share by charging a low initial price, a practice known as penetration pricing. This approach has the added advantage of discouraging competition because the low price (which competitors would be pressured to match) limits the profit potential for everyone.

Discount pricing and value pricing are strategies used by most companies worldwide. A trade discount is offered by the producer to the wholesaler or retailer, whereas a cash discount is a price reduction offered to people who pay in cash or who pay promptly. Another way firms discount their products is by value pricing them. They charge a fairly affordable price for a high-quality offering. Value pricing says that the price should represent a high-value offer to consumers. Toyota Camry is a value-priced car. Even though the Camry is expensive, it has many of the same features as the more expensive Lexus or BMW.