Download Topic: Marketing

Topic: Marketing
1. lesson – Definition of marketing, customers , buyers, sellers, market, market research, competition,
competitors
2. lesson – Marketing mix – 1. Product
3. lesson – Marketing mix – 2. Price 3. Place
4. lesson – Marketing mix – 4. Promotion, Direct marketing
5. lesson – Marketing mix – 5. Packaging, Revision (questions)
6. lesson – Oral exam (Marketing)
Marketing
DEFINITION
Marketing is the process of planning, designing, pricing, promoting and distributing ideas, goods
and services, in order to satisfy customer needs, so as to make a profit.
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People who buy ‘everyday’ services are called customers.

A person or organization that buys something is a buyer or purchaser. People who are
responsible for buying goods that the company uses or sells are “buying managers”.
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A person or organization that sells something is a seller.
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Buyers and sellers of particular goods or services form a market.
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Market research are methods for obtaining information about the market for a company‘s
product.
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Companies or products in the same market are competitors or rivals. Competitors compete
with each other to sell more, be more successful. The most important companies in a
particular market are called key players. Competition describes the activity of trying to sell
more and be more successful. The competition refers to all the products, businesses.....
MARKETING MIX = THE FOUR ’Ps’
The four Ps are summary of the marketing mix, the activities that you have to combine
successfully in order to sell.
1. PRODUCT
Product is an item which is made for sale. Companies make products to sell them and make
profit. It is easy to make it but difficult to sell. New products are developed in the department
called Research & Development (R&D).
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Product lifecycle: are the stages in the life of a product, and the number of people who buy it at
each stage.
There are 4 stages in the product lifecycle:
Launch is characterized by a very low profit rate.
Rise is the period when sales and profits increase and bring their profitability.
Maturity is the phase during which customers become more and more aware of the product. The
gap between profits and costs reaches its maximum.
Decline is the closing stage which occurs due to market saturation. Both sales and profits fall and
the only remaining buyers are scattered laggards.
Goods can refer to the materials and components used to make products, or the products that are
made. There are 2 types of goods:
 Consumer durables are consumer goods that last a long time, such as cars and washing
machines.
 Fast-moving consumer goods, or FMCG are consumer goods such as food products (bread,
milk) that are sold quickly.
Labels can give the consumer quite a lot of information about a product. E.g. the type of product,
the name of the retailer, the weight of the item, the price the shopper pays, the bar code,
instructions on how to store it, instructions on how long to keep it.
2. PRICE
Price is another important thing in marketing. Prices must be competitive. Your company is not
the only one that produces similar products. The company must face a keen competition on the
market. Consumers follow the prices carefully.
Products can be low-priced, mid-priced or high-priced.
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3. PLACE
Place plays also an important role in marketing. It is often called distribution.
Marketing (distribution) channels
Marketing channels are the different ways that a product may go from the manufacturer to the
consumer. Often, marketing channels include distributors. They are, for example, wholesalers
and retailers. They receive money in return for their product distribution services.
Retailers buy goods from the manufacturer or from a wholesaler and make their income from the
margin, or difference, between the price they pay for the goods and the price they sell the goods
at to the consumer. The retailer is the manufacturers’ link with the consumer. Retailers include
department stores, chain stores, and many other companies that have direct customer contact.
Wholesalers are companies that buy goods from the manufacturer and sell them to retailers or to
other wholesalers. Wholesalers act as middlemen between manufacturers and retailers. They buy
goods in bulk and sell them in smaller lots to the retail trade.
Producers (manufacturers)
wholesalers
retailers
distributors
customer
Retail outlets vary in size, method of trading and location:
Chain stores: all branches have the same name and are usually in town centres.
Hypermarket: very large shop with a wide variety of goods, usually outside a town.
Supermarket: very large shop, selling mainly food.
Market stalls often move around to different sites, usually in the open air.
Shopping centre: the whole shopping are is closed to traffic.
Self-service: customers walk round with wire baskets or trolleys and help themselves
Department stores stock a very wide range of goods and may have their own charge cards.
Mail order: customers buy from catalogues and receive goods by post.
Also shopping by the Internet, TV shopping channels are becoming popular.
Where do you usually go shopping?
4. PROMOTION
Promotion aims to make people aware of the product. E.g.:
a) Advertising means informing customers of products or services. (Advertising is uncountable
and that the noun is advertisement or informally advert or just ad).
 Billboards
 The Internet is a new advertising medium.
 A series of advertisements for a particular company or product is an advertising campaign.
An organization that designs and manages advertising campaigns is an advertising agency.
 TV commercial
 Sponsorship is where companies sponsor (pay some of the costs of) events like concerts and
sports events.
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b) A company’s salespeople visit customers and persuade them to buy its products. They give
persuasive sales presentation, discuss and demonstrate products.
c) Promotional activities
 a discount
 a free sample: a small amount of the product to try or taste.
 a free gift: given with the product
 competitions with prizes
 supermarkets and airlines give loyalty cards to customers: the more you spend, the more
points you get, and you can exchange these points for free goods.
DIRECT MARKETING
Direct marketing involves:
- Sending catalogues through the postal system.
- Mail drops are advertisements put directly into letter boxes by staff working on behalf of a company.
These messages can also be pushed under the windscreen wipers of cars or handed out personally to people
in the street.
The advantage of direct marketing is that it increases the level of communication between an individual and
the supplier. If marketing is targeted correctly it can be a very effective way of advertising.
But the disadvantage of the system is that it has been used by too many different organizations which didn't
target it correctly. How many times have you received mail and simply thrown it away without looking at it?
Sometimes the fifth P is added:
5. PACKAGING
Packaging can attract consumers and encourage them to buy the product. Packaging can prevent
damage to the goods inside. The fundamental rule about packaging is that it should be seen
clearly in the shop.
REVISION:
Answer the questions:
1. What is marketing?
2. Why is marketing so important?
3. What is the marketing mix?
4. How can products be promoted?
5. What are marketing channels?
6. Who do marketing channels include?
7. Who are retailers?
8. What is the job of a salesman?
9. Where do you usually go shopping?
10. What does "direct marketing" mean?
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