You are discussing a new product with your marketing manager. You may use the dialogue below as a model.

B.

Summarize the information of the Unit to be ready to speak on Marketing. Use the following prompts as a plan.

– definitions of marketing;

– market segmentation;

– target market;

– marketing mix (the four Ps);

– relations of marketing to other social sciences;

– need in marketing information;

– Marketing Information System (MIS);

– steps in marketing research.

VOCABULARY

brand n – фабричная марка, качество

implement v – выполнять, осуществлять, обеспечивать выполнение

~ a contract – выполнить договор

~ a decision – проводить постановление (решение) в жизнь;

implement n – орудие, инструмент, прибор; принадлежность, утварь

~s of production – орудия производства

implementation n – выполнение, осуществление

market research – изучение возможностей рынка, изучение проблем спроса, исследование рынка сбыта, исследование товарного рынка

market segmentation –сегментирование рынка

marketing –маркетинг,торговля, сбыт, продажа

~strategy – рыночная стратегия

~tactics – тактика маркетинга

mass ~–массовый маркетинг

target ~–целевой маркетинг

consumer-goods ~–маркетинг потребительских товаров

means-of-production~ –маркетинг средств производства

test~ –пробный маркетинг

service ~ − маркетинг услуг

GLOSSARY

· Brand is: 1. trade mark (painted or printed on boxes, tins, packets, etc.); 2. particular kind of goods with such a mark.

· Macromarketing describes how the whole system of production and distribution works in a society.

· Market research estimates the demand for specific products and services, describes the characteristics of probable customers, and measures potential sales.Marketing research studies people as buyers and sellers, examining their habits, attitudes, preferences, dislikes, and purchasing power and almost every aspect of the seller-buyer relationship. It also investigates distribution systems, pricing, promotion, product design, packaging, brand names, etc.

· Market segmentation involves aggregating prospective buyers into groups that 1) have common needs and 2) will respond similarly to a marketing action.

· Target marketis the market, which concentrates its efforts on certain needs of a specific group of potential customers.

· Marketingencompasses a broad range of activities including product planning, new-product development, organizing the channels by which the product reaches the customer, the actual distribution of products, wholesaling, price setting, advertising and promotion, public relations, retailing, product warranties, financing, and more.

· Marketing Mix, usually called the 4 Ps, include:

– Product: a good, a service, or an idea to satisfy the consumer’s needs;

– Price: what is exchanged for the product;

– Promotion: a means of communication between the seller and buyer;

– Place: a means of getting the product into the consumer’s hands.

· Marketing program is a plan that integrates the marketing mix to provide a good, or service to prospective customers.

· Marketing strategy is a means by which a marketing goal is to be achieved

· Marketing tactics are detailed day-to-day operational decisions that must be taken right away.

· Micromarketing describes the activities of individual firms, beginning with originating and producing products and ending when the products reach the final user, the customer.

ADVERTISING

DISCOVERING CONNECTIONS

1. What do you know about advertising?

2. Who usually uses advertising?

3. What media are used in advertising?

4. How is advertising spread in your country?

5. Does advertising help you to make your purchases?

6. Don’t you think that there is too much advertising on TV?

7. Do you find advertising useful and necessary?

READING

Text 1

While reading the text focus on different types of advertising and mass media used.

Advertising

In the eyes of the business world and of many economists, advertising serves an indispensable function. It helps consumers to choose among competing products. Also, by spurring demand for products, it extends the possibilities of mass production and thus leads to economies of scale and to lower consumer costs. Indeed, advertising is sometimes depicted as “the engine of prosperity”.

Advertising informs consumers about the existence and benefits of products and services, and attempts to persuade them to buy them. The best form of advertising is probably word-of-mouth advertising, which occurs when people tell their friends about the benefits of products or services that they have purchased. Yet virtually no providers of goods or services rely on this alone, but use paid advertising instead. Indeed, many organizations also use institutional or prestige advertising, which is designed to build up their reputation rather than to sell particular products.

Advertising may be described under three headings:

1. descriptive;

2. persuasive;

3. both descriptive and persuasive together.

Descriptive advertising gives the most important facts about the product. It is the cheapest form of advertising and is used a lot by the small traders selling through the local paper. It will usually say:

1. what the product is;

2. how much it will cost;

3. where it may be obtained.

Persuasive advertising tries to persuade people that the product which is being advertised has a special quality or usefulness which makes it much better than other similar products. It is used a lot in television advertising where consumers are persuaded to think that if they buy that product they will become very popular or very happy.

This is the area in which advertising is often criticised. Advertising is sometimes misleading. Although it is illegal for advertisers to make untrue statements about their goods, services or prices, they still make their wares seem unduly attractive. They pander to our egos and our vanities. They create a demand which would not otherwise exist.

It is easy to say, “I'm not influenced by the adverts!” Everyone is influenced to a certain extent. There was recently some research on subliminal advertising. The word 'coffee' flashed on the television screen. It happened so quickly that no-one was aware it had happened. For just a fraction of a second it registered on the viewers' subconscious. The result? A surprising number of people chose to make coffee at that precise moment. Of course, it could have been a coincidence but it was highly unlikely.

Any paid form of non-personal communication through the mass media about the product by an identified sponsor is advertising.

Sponsors are people or firms that pay for radio or TV programmes in return for advertising. Sponsors may be a nonprofit organization, a political candidate, a company or an individual. Advertising is used when sponsors want to communicate with a number of people who cannot be reached economically and effectively through personal means.

Mass media used include magazines, direct mail, radio, television, billboards or hoardings, newspapers where advertisements are placed. Adversisement is an announcement in a newspaper, on television, or on a poster about something such as a product, event, or job. The forms advert and ad are also used. Advertisements on the radio and TV are called commercials. Classifieds, flyers, handbills, junk mail and spam are also forms of advertising. Classified advertisements (also classifieds or want ads) are small adverts placed in a newspaper by people wishing to buy or sell something, to find a job, etc. Handbills is the type of advertisements used by local traders. They are expensive in labour costs and not very effective. Junk mail is advertisements that you receive through the post, which you have not asked for and which you do not want. Spam is unwanted e-mail advertisements sent to a large number of people.

The British Code of Advertising Practice exists to protect the consumer from being deceived and misinformed by advertisements. Their slogan is: “All advertisements should be legal, decent, honest and truthful”.

Vocabulary Focus

Ex. 1. Choose the right words from your active vocabulary.

1. The best form of advertising is probably … advertising.

2. Many organizations also use … or … advertising, which is designed to build up their reputation rather than to sell particular products.

3. … advertising gives the most important facts about the product.

4. … advertising tries to persuade people that the product which is being advertised has a special quality or usefulness which makes it much better than other similar products.

5. It is … for advertisers to make untrue statements about their goods, services or prices.

6. Advertising which invisibly registers information on the viewers' subconscious is called … .

7. Advertisements on the radio and TV are called ….

8. … are small adverts placed in a newspaper by people wishing to buy or sell something, to find a job, etc.

Ex. 2.Complete the following table by using the missing forms.

Ex. 3.Match the words in column A with their definitions in column B.

Ex. 4.Put these four media types into the corrct place in the table.

a. junk mail b. TV c. newspapers d. billboards e. spam

Comprehension

Ex. 1. Decide which of the following statements are correct.

1. It is legal to make untrue statements about goods.

2. Adverts influence all people.

3. Advertising creates an extra demand.

4. The manufacturers want their revenue to exceed their costs.

5. The mass media used in advertising include only radio and television.

6. A sponsor may be anyone who has money.

7. Advertising is generally accepted as a short-run investment.

8. There are two main types of advertising.

9. The British Code of Advertising Practice exists to protect the consumer from being deceived by ads.

Ex. 2. Answer the following questions.

1. What is advertising?

2. What kinds of mass media are used in advertising?

3. In what way does advertising differ from news and publicity?

4. Why might it be fairer to compare advertising with the purchase of capital equipment?

5. What does the evaluation of advertising still rely on?

6. What is the difference between the descriptive advertising and the persuasive one?

7. What is meant by informative advertising?

8. What is persuasive advertising criticized for?

Ex. 3.Logically organize the following sentences to summarize the text. The first sentence is given to you.

1. Any paid form of non-personal communication through the mass media about the product by an identified sponsor is advertising.

2. There are two main types of advertising: descriptive and persuasive

3. That’s why the essence of advertising is persuasion.

4. The types of mass media used in advertising are different.

5. Advertising is accepted as a long-term investment but setting its budgets remains an art.

6. Advertising should be legal, decent, honest and true being to protect the consumer from being deceived and misled by ads.

7. Advertising is used when sponsors can’t reach people they want to communicate with.

Text 2

As you read the text, pay attention to different ways of advertising.

How Companies Advertise

Large companies could easily set up their own advertising departments, write their own advertisements, and buy media space themselves, but they tend to use the services of large advertising agencies. These are likely to have more resources, and more knowledge about all aspects of advertising and advertising media than a single company. The most talented advertising people generally prefer to work for agencies rather then individual companies as this gives them the chance to work on a variety of advertising accounts (contracts to advertise products or services). It is also easier for a dissatisfied company to give its account to another agency than it would be to fire its own advertising staff.

The client company generally gives the advertising agency an agreed budget; a statement of the objectives of the advertising campaign, known as a brief; and an overall advertising strategy concerning the message to be communicated to the target customers. The agency creates advertisements (the word is often abbreviated to adverts or ads), and develops a media plan specifying which media – newspapers, magazines, radio, television, cinema, posters, mail, etc. – will be used and in which proportions. (On television and radio, ads are often known as commercials.) Agencies often produce alternative ads or commercials that are pre-tested in newspapers, television stations, etc. in different parts of a country before a final choice is made prior to a national campaign.

The agency's media planners have to decide what percentage of the target market they want to reach (how many people will be exposed to the ads) and the number of times they are likely to see them. Advertising people talk about frequency or 'OTS' (opportunities to see) and the threshold effect - the point at which advertising becomes effective. The choice of advertising media is generally strongly influenced by the comparative cost of reaching 1,000 members of the target audience, the cost per thousand (often abbreviated to CPM, using the Roman numeral for 1,000). The timing of advertising campaigns depends on factors such as purchasing frequency and buyer turnover (new buyers entering the market).

How much to spend on advertising is always problematic. Some companies use the comparative-parity method they simply match their competitors' spending, thereby avoiding advertising wars. Others set their ad budget at a certain percentage of current sales revenue. But both these methods disregard the fact that increased ad spending or counter-cyclical advertising can increase current sales. On the other hand, excessive advertising is counter-productive because after too many exposures people tend to stop noticing ads, or begin to find them irritating. And once the most promising prospective customers have been reached, there are diminishing returns, i.e. an ever-smaller increase in sales in relation to increased advertising spending.

Ex. 1.Find the terms in the text which mean the following:

1) companies that handle advertising for clients;

2) a contract with a company to produce its advertising;

3) the amount of money a company plans to spend in developing its advertising and buying media time or space;

4) the statement of objectives of an advertising campaign that a client works out with an advertising agency;

5) the advertising of a particular product or service during a particular period of time;

6) a defined set of customers whose needs a company plans to satisfy

7) the people who choose where to advertise, in order to reach the right customers;

8) the fact that a certain amount of advertising is necessary to attract a prospective customer's attention;

9) choosing to spend the same amount on advertising as one's competitors;

10) advertising during periods or seasons when sales are normally relatively poor.

Ex. 2.Be ready to discuss the following questions.

1. Why do most companies use advertising agencies?

2. When a company hires an advertising agency, what are the roles of both parties?

3. What is a media plan?

4. Why does advertising become ineffective after a certain point?

Ex. 3. Use the terms in the box to complete the paragraph.

Advertising tells people about products through a variety of media types, e.g. TV, _____, billboards etc. An _____ may use more than one media type, with TV ads supported by a print advertisement in a magazine, for example. Most campaigns are designed and managed by _____, or more specifically by an account executive. The cost of using an advertising agency comes out of the company’s _____. Agencies are often asked to design a global advertisement that can be used in various countries. They will often tailor advertisements, or adapt them to a market’s particular needs. Agencies need to take care when designing an _____ that it meets each country’s _____.

CASE STUDY

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