2.6 Render the passage in English using the English equivalents of the italicised phrases given in Russian. Express the main idea of the passage in one sentence.

Другими (Other) факторами развития маркетинговой стратегии фирмы являются (are) ее доля рынка и деятельность (activities) ее основных конкурентов. Очень важно быть конкурентоспособной в отношении (in terms of) затрат, ассортимента (product range) и цен. Также важно иметь маркетинговую стратегию, которая максимизирует (maximises) долю фирмы на рынке или усилит (increases) ее проникновение на рынок. В этом случае (case) особенно важным становятся реклама и упаковка. Никто не купит (no one will buy) ваш продукт, если (if they) не знает о том, что продукт продается на этом рынке (it is there). Еще одним (Another) фактором развития маркетинговой стратегии фирмы является поведение (behaviour) потребителей. Его почти (almost) невозможно предсказать. Фирма не может контролировать этот фактор, но она должна реагировать на (respond to) него и следовать общим тенденциям (trends) рынка.

Unit 2 Glossary

ATTITUDES A person's consistent evaluation and behavioral tendencies toward an idea or object. This is one of the psychological influences on consumer buying behavior. This pattern of behavior is central to a company's effort to market a product or service to at target market. Once developed, attitudes tend to be stable and vary little in a moment to moment situation.

ADVERTISING It is a form of communication intended to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideas, or services. It includes the name of a product or service and how that product or service could benefit the consumer, to persuade a target market to purchase or to consume that particular brand. These messages are usually paid for by sponsors and viewed via various media. Advertising can also serve to communicate an idea to a large number of people in an attempt to convince them to take a certain action.

BENCHMARKING Benchmarking is the process of identifying "best practice" in relation to both products (including) and the processes by which those products are created and delivered. The search for "best practice" can taker place both inside a particular industry, and also in other industries (for example - are there lessons to be learned from other industries?). The objective of benchmarking is to understand and evaluate the current position of a business or organisation in relation to "best practice" and to identify areas and means of performance improvement.

‘BOSTON BOX’ MODEL The Growth-Share-Matrix – commonly known as Boston Box – was developed by the Boston Consulting Group (BCG) in the seventies. It is a tool of portfolio management. The Boston Box evaluates the products of an organization according to their market share and to their growth prospects. On that basis it can reveal insights about their financial needs or their ability to generate cash. The Boston Box model depends on the following premises: (1) the profits and cash generated from a product are a function of its market share; profits and market share correlate directly; (2) revenue frowth requires investments; in the context of the Boston Box, investments are mainly expenses for marketing, distribution and product development; (3) high market shares require additional unvestments; (4) no business or market can grow indefinitely. In the result, the profitability of a product depends on its market share, the growth rate of its market and on its position in product lifecycle.

BRAND The American Marketing Association defines a brand as a "name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers. The legal term for brand is trademark. A brand may identify one item, a family of items, or all items of that seller. If used for the firm as a whole, the preferred term is trade name."

BRAND IMAGE The psychological aspect, sometimes referred to as the brand image, is a symbolic construct created within the minds of people, consisting of all the information and expectations associated with a product, service or the company(ies) providing them.

BUDGET  (from old French bougette, purse) is a list of all planned expenses and revenues. It is a plan for saving and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. In other terms, a budget is an organizational plan stated in monetary terms. In summary, the purpose of budgeting is to: provide a forecast of revenues and expenditures i.e. construct a model of how our business might perform financially speaking if certain strategies, events and plans are carried out; enable the actual financial operation of the business to be measured against the forecast.

CAPACITY In economics, the extent to which an enterprise or a nation actually uses its potential output.

CONCEPT TESTING The process of using quantitative methods and qualitative methods to evaluate consumer response to a product idea prior to the introduction of a product to the market. It can also be used to generate communication designed to alter consumer attitudes toward existing products.

COPY TESTING A specialized field of marketing research. It is the study of television commercials prior to airing them, and is defined as research to determine an ad’s effectiveness based on consumers’ responses to the ad. It covers all media including print, TV, radio, Internet etc. Although also known as copy testing, pre-testing is considered the more accurate, modern name for the prediction of how effectively an ad will perform, based on the analysis of feedback gathered from the target audience. Each test will either qualify the ad as strong enough to meet company action standards for airing or identify opportunities to improve the performance of the ad through editing. Pre-testing is also used to identify weak spots within an ad campaign, to more effectively edit 60-second ads to 30-second ads or 30’s to 15’s, to select images from the spot to use in an integrated campaign’s print ad, to pull out the key moments for use in ad tracking, and to identify branding moments.

COST CENTRE In business, a cost center is a division that adds to the cost of an organization, but only indirectly adds to its profit. Typical examples include research and development, marketing and customer service.

DISTRIBUTION Product distribution (or place) is one of the four elements of the marketing mix. An organization or set of organizations (go-betweens) involved in the process of making a product or service available for use or consumption by a consumer or business user. The other three parts of the marketing mix are product, pricing, and promotion.

DIVESTMENT In finance and economics, divestment or divestiture 

is the reduction of some kind of asset for either financial or ethical objectives or sale of an existing business by a firm. A divestment is the opposite of an investment.

FIELD EXPERIMENT It applies the scientific method to examine an intervention in the real world (or as many experimentalists like to say, naturally-occurring environments) rather than in the laboratory. Field experiments, like lab experiments, generally randomize subjects (or other sampling units) into treatment and control groups and compare outcomes between these groups.

FORECASTING It is the process of making statements about events whose actual outcomes (typically) have not yet been observed. A commonplace example might be estimation for some variable of interest at some specified future date. Prediction is a similar, but more general term.

FOUR Cs (consumer, cost, convenience and communication, culture) Robert F. Lauterborn proposed a four Cs classification in 1993. The Four Cs model is more consumer-oriented and attempts to better fit the movement from mass marketing to niche marketing.

FOUR Ps Elements of the marketing mix (product, price, placer, promotion) are often referred to as the "Four 'P's", a phrase used since the 1960's.

INDUSTRIAL ESPIONAGE Economic espionage or corporate espionage is a form of espionage conducted for commercial purposes instead of purely national security purposes. Economic espionage is conducted or orchestrated by governments and is international in scope, while industrial or corporate espionage is more often national and occurs between companies or corporations.

MARKETING The process of performing market research, selling products and/or services to customers and promoting them via advertising to further enhance sales. It generates the strategy that underlies sales techniques, business communication, and business developments. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. Marketing is used to identify the customer, to satisfy the customer, and to keep the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management. Marketing evolved to meet the stasis in developing new markets caused by mature markets and overcapacities in the last 2-3 centuries. The adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable.

MARKETYING MIX The term "marketing mix" was coined in 1953 by Neil Borden in his American Marketing Association presidential address. However, this was actually a reformulation of an earlier idea by his associate, James Culliton, who in 1948 described the role of the marketing manager as a "mixer of ingredients", who sometimes follows recipes prepared by others, sometimes prepares his own recipe as he goes along, sometimes adapts a recipe from immediately available ingredients, and at other times invents new ingredients no one else has tried. The marketing mix (price, product, distribution, promotion) forms the entire promotional campaign.

MARKETING RESEARCH The systematic gathering, recording, and analysis of data about issues relating to marketing products and services. The goal of marketing research is to identify and assess how changing elements of the marketing mix impacts customer behavior. The term is commonly interchanged with market research; however, expert practitioners may wish to draw a distinction, in that market research is concerned specifically with markets, while marketing research is concerned specifically about marketing processes.

MARKETING STRATEGY  It is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered around the key concept that customer satisfaction is the main goal.

MARKET SEGMENT It is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function. A true market segment meets all of the following criteria: it is distinct from other segments (different segments have different needs), it is homogeneous within the segment (exhibits common needs); it responds similarly to a market stimulus, and it can be reached by a market intervention. The term is also used when consumers with identical product and/or service needs are divided up into groups so they can be charged different amounts.The people in a given segment are supposed to be similar in terms of criteria by which they are segmented and different from other segments in terms of these criteria. These can broadly be viewed as 'positive' and 'negative' applications of the same idea, splitting up the market into smaller groups. Examples:gender, price, interests. While there may be theoretically 'ideal' market segments, in reality every organization engaged in a market will develop different ways of imagining market segments, and create Product differentiation strategies to exploit these segments. The market segmentation and corresponding product differentiation strategy can give a firm a temporary commercial advantage.

MARKET SHARE The percentage of a market (defined in terms of either units or revenue) accounted for by a specific entity. Increasing market share is one of the most important objectives of business. Market share is a key indicator of market competitiveness—that is, how well a firm is doing against its competitors. This metric, supplemented by changes in sales revenue, helps managers evaluate both primary and selective demand in their market.

MODERN PORTFOLIO THEORY (MPT) is a theory of investment which attempts to maximize portfolio expected return for a given amount of portfolio risk, or equivalently minimize risk for a given level of expected return, by carefully choosing the proportions of various assets. Although MPT is widely used in practice in the financial industry and several of its creators won aNobel memorial prize^[1] for the theory, in recent years the basic assumptions of MPT have been widely challenged by fields such as behavioral economics. MPT is a mathematical formulation of the concept of diversification in investing, with the aim of selecting a collection of investment assets that has collectively lower risk than any individual asset.

NICHE MARKET  It is the subset of the market on which a specific product is focusing; therefore the market niche defines the specific product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact. Every single product that is on sale can be defined by its niche market. As of special note, the products aimed at a wide demographic audience, with the resulting low price (due to price elasticity of demand), are said to belong to the mainstream niche—in practice referred to only as mainstream or of high demand. Narrower demographics lead to elevated prices due to the same principle. So to speak, the Niche Market is the highly specialized market that tries to survive among the competition from numerous super companies.

OBSERVATION An activity of a living being (such as a human), consisting of receiving knowledge of the outside world through the senses, or the recording of data using scientific instrument. The term may also refer to any data collected during this activity. An observation can also be the way you look at things or when you look at something.

OUTLET An outlet store or outlet mall.

PACKAGING The container and graphic design variable in the marketing mix, (sometimes included in the product). Changes in product distribution and government regulations in contents identification have made the packaging variable a very important component in the organization Хs marketing strategy. Packaging completes the marketing process by giving the consumer vital information just prior to making the final buy decision.

PENETRATION PRICING It is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers. The strategy works on the expectation that customers will switch to the new brand because of the lower price. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume, rather than to make profit in the short term.

PLACE Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.

PRICE The price is the amount a customer pays for the product. The business may increase or decrease the price of product if other stores have the same product.

PRICE LINING It is the use of a limited number of prices for all your product offerings. 

PRICING The process of determining what a company will receive in exchange for its products. Pricing factors are manufacturing cost, market place, competition, market condition, and quality of product. Pricing is also a key variable in microeconomic price allocation theory. Pricing is a fundamental aspect of financial modeling and is one of the four Ps of the marketing mix. The other three aspects are product, promotion, and place. Price is the only revenue generating element amongst the four Ps, the rest being cost centers.

PRODUCT Product - It is a tangible good or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units.  The noun product is defined as a "thing produced by labor or effort" or the "result of an act or a process", and stems from the verb produce, from the Latin prōdūce(re) '(to) lead or bring forth'. Since 1575, the word "product" has referred to anything produced. Since 1695, the word has referred to "thing or things produced". The economic or commercial meaning of product was first used by political economist Adam Smith. In marketing, a product is anything that can be offered to a market that might satisfy a want or need. In retailing, products are called merchandise. In manufacturing, products are purchased as raw materials and sold as finished goods. Commodities are usually raw materials such as metals and agricultural products, but a commodity can also be anything widely available in the open market. In project management, products are the formal definition of the project deliverables that make up or contribute to delivering the objectives of the project. In insurance, the policies are considered products offered for sale by the insurance company that created the contract. In general, product may refer to a single item or unit, a group of equivalent products, a grouping of goods or services, or an industrial classification for the goods or services.

PRODUCT CONCEPT The understanding of the dynamics of the product in order to showcase the best qualities of the product. Marketers spend a lot of time and research in order to target their attended audience. Marketers will look into a product concept before marketing a product towards their customers.

PRODUCT DEVELOPMENT New product development (NPD) is the term used to describe the complete process of bringing a new product to market. 

PRODUCT DIFFERENTIATION In marketing, product differentiation (also known simply as "differentiation") is the process of distinguishing a product or offering from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own product offerings.

 

PRODUCT LIFE CYCLE (PLC) Like human beings, products also have a life-cycle. From birth to death, human beings pass through various stages e.g. birth, growth, maturity, decline and death. A similar life-cycle is seen in the case of products. The product life cycle goes through multiple phases, involves many professional disciplines, and requires many skills, tools and processes. Product life cycle (PLC) has to do with the life of a product in the market with respect to business/commercial costs and sales measures. To say that a product has a life cycle is to assert three things: products have a limited life; product sales pass through different stages; products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle sdtage. The four main stages of a product's life cycle and the accompanying characteristics are: marketing introduction stage, growth stage, maturity stage, saturation and decline stage.

PRODUCT LINING A marketing strategy of offering for sale several related products. Unlike product bundling, where several products are combined into one, lining involves offering several related products individually. A line can comprise related products of various sizes, types, colors, qualities, or prices. Line depth refers to the number of product variants in a line. Line consistency refers to how closely related the products that make up the line are. Line vulnerability refers to the percentage of sales or profits that are derived from only a few products in the line. The number of different product lines sold by a company is referred to as width of product mix. The total number of products sold in all lines is referred to as length of product mix. If a line of products is sold with the same brand name, this is referred to as family branding. When you add a new product to a line, it is referred to as a line extension.

PRODUCT MIX The product mix of a company, which is generally defined as the total composite of products offered by a particular organization, consists of both product lines and individual products. A product line is a group of products within the product mix that are closely related, either because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. A product is a distinct unit within the product line that is distinguishable by size, price, appearance, or some other attribute. For example, all the courses a university offers constitute its product mix; courses in the marketing department constitute a product line; and the basic marketing course is a product item. Product decisions at these three levels are generally of two types: those that involve width (variety) and depth (assortment) of the product line and those that involve changes in the product mix occur over time. The depth (assortment) of the product mix refers to the number of product items offered.

PRODUCT MODIFICATION Any substantial change made to the attributes (size, shape, colour, style, price, etc.) of a product, modification of a product is usually undertaken in an attempt to revitalise it in order to increasedemand.

PRODUCT POSITIONING In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. De-positioning involves attempting to change the identity of competing products, relative to the identity of your own product, in the collective minds of the target market.

PROMOTION Represents all of the communications that a marketeer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations.

RETAILING Retail consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power.

SAMPLING For testing or analysis, it is taking a representative portion of a material or product to test typically for the purposes of identification, quality control, or regulatory assessment.

SCIENTIFIC MODELLING The process of generating abstract, conceptual, graphical and/or mathematical models. Science offers a growing collection of methods, techniques and theory about all kinds of specialized scientific modelling. A scientific model can provide a way to read elements easily which have been broken down to a simpler form.

SEGMENTATION The marketing process by which a company divides a heterogeneous group of buyers in segments. Each segment has similar wants and needs. The company uses a concentrated targeting strategy to sell their products to this group. A different marketing mix is created and used for each segment.

SURVEY In quantitative research statistical survey is a method for collecting quantitative information about items in a population; paid survey is a method for companies to collect consumer opinions about a product by offering them money as rewards.

TARGET MARKET A group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise.  A well-defined target market is the first element to amarketing strategy. The target market and the marketing mix variables of product, place (distribution), promotion and price are the two elements of a marketing mix strategy that determine the success of a product in the marketplace. Once these distinct customers have been defined, a marketing mix strategy of product, distribution, promotion and price can be built by the business to satisfy the target market.

TARGETING STRATEGY The initial step in the target market/segmentation process by which a company develops an overall picture of who the specific buyer group might be. The three types of strategies are: undifferentiated, differentiated, and concentrated. Targeting strategies are based on whether the market is homogeneous or heterogeneous.

TEST MARKET In the field of business and marketing, is a geographic region or demographic group used to gauge the viability of a product or service in the mass market prior to a wide scale roll-out. The criteria used to judge the acceptability of a test market region or group include: a population that is demographically similar to the proposed target market; and relative isolation from densely populated media markets so that advertising to the test audience can be efficient and economical.

Unit 2