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ESSENTIALS OF MARKETING
(1) What is marketing? Marketing is the process responsible for identifying, anticipating and satisfying customer requirements profitably.
(2) What is 'the marketing mix'? The marketing mix is made up of four components, sometimes called the four Ps. These are:
(3) Product: the firm has to identify what products the consumer wants and the way existing products can be adapted to meet consumer preference more successfully.
(4) Price: a firm has to decide on its pricing policy for list prices, discount for bulk-buying and interest-free credit. A low price may make consumers suspicious ('cheap and nasty') or the low price may be thought of as a bargain ('cheap and cheerful'). If the price of the product is higher than what competitors are charging then it must be justified in some way, e.g. because the quality of the product is higher.
(5) Promotion: this amount to choosing methods that can generate sales of the product.
Possibilities here include advertising, personal selling, publicity and other promotional
work.
(6) Place: the product has to be in the correct place - retail outlet - in order to capture
sales. Exactly where a firm decides to sell its product will depend on the nature of the
product.
(7) Aspects to be considered in marketing a product include its quality, its features, style, brand name, size, packaging, services and guarantee, while price includes consideration of things like the basic list price, discounts, the length of the payment period, and possible credit terms. Place in a marketing mix includes such factors as distribution channels, coverage of the market, locations of points of sale, inventory size, and so on. Promotion groups together advertising, publicity, sales promotion, and personal selling. The next stage is to create long-term demand, perhaps by modifying particular features of the product to satisfy changes in consumer needs or market conditions. The marketing task is to manage demand effectively.
(8) One important factor that affects the marketing mix is the position of the product in its life cycle.
(9) The period of time over which a product appeals to customers is called the product life cycle. At a given point in time a product will be at a particular stage of its life cycle. The length of this product life cycle differs from product to product, e.g. the life cycle of certain items such as clothing (flared or drainpipe trousers) and pop records may be very short indeed, perhaps a matter of months, or a few years at the outside. Other products, particularly consumer durable products such as telephones and colour TVs, may have a much longer product life cycle.
(10) What is SWOT? SWOT stands for strengths, weaknesses, opportunities and threats. A company that believes in marketing is forward-thinking and doesn't rest on its past achievements. It uses SWOT analysis to be aware of its strengths and weaknesses as well as the opportunities and threats it faces in the market.
(11) Consequently, marketing is the process of developing, pricing, distributing and promoting the goods or services that satisfy customers' needs. Marketing therefore combines market research, new product development, distribution, advertising, promotion, product improvement, and so on. According to this definition, marketing begins and ends with the customer. Truly successful marketing understands the customer sо well that the product or service satisfies a need so perfectly that the customer is desperate to buy it. The product almost sells itself. Of course this will only happen if the product or service is better than those of competitors.
II. Письменно ответьте на следующие вопросы:
1. What components is marketing mix made up?
2. The position of the product in its life cycle affects the marketing mix, doesn’t it?
3. Is the length of product life cycle different or the same for different products?
4. What stands for strengths, weaknesses, opportunities and threats?
5. Does marketing begin and end with the customer?