Unit Ten Marketing

Learning Objectives• This unit deals with various aspects of

marketing: marketing mix, applying marketing principles, promotions and advertising.

• Section 10.4 covers the notions of expressing degrees of certainty, possibility and probability.

What is marketing?Have you ever been

involved in any marketing activities?

What is the difference between marketing and selling?

What is marketing?

When people hear the term marketing, many think of advertising or selling. Although those are part of marketing, the part we see most, marketing is much more.

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of goods,

services and ideas to create exchanges that satisfy individual and organizational objectives.

The Marketing Concept

The marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs.

To better understand the marketing concept, it is worthwhile to put it in perspective ( 显现在脑海中 ) by reviewing other philosophies that once were predominant.

The ProductionConcept生产观念

The SellingConcept推销观念

The Marketing Concept

市场营销观念

While these different concepts prevailed during different historical time frames, they are not restricted to those periods and are still practiced by some firms today.

The Production Concept The production concept prevailed from the time

of the industrial revolution until the early 1920’s.

At the time, companies were basically production-oriented. The key questions that a firm would ask before producing a product were:

1) Can we produce the product? 2) Can we produce enough of it? The production concept worked fairly well

because the goods that were produced were largely those of basic necessity and there was a relatively high level of unfulfilled demand.

The Selling Concept By the early 1930’s, however, mass production had

become commonplace, competition has increased, and there was little unfulfilled demand.

Consumers had many products to choose from and firms found they had to go to the consumers, instead of waiting for the consumers to buy.

Companies still produced goods with little regard to the consumer’s needs. However, firms began to practice the selling concept (sales concept).

They not only would produce the products but also recognized that personal selling and advertising were important selling methods.

In the post war era, firms placed most emphasis on advertising their products, expecting salespeople to contact customers and take their orders.

Before producing a product, the key questions were:

1) Can we sell the product? 2) Can we charge enough for it? Marketing was a function that was performe

d after the product was developed and produced, which is called hard selling ( 硬推销 ) by some experts.

The Marketing Concept After World War Ⅱ, the variety of products incre

ased and hard selling no longer could be relied upon to generate sales.

With increased discretionary income ( 可支配收入 ), customers could afford to be selective and buy only those products that precisely met their changing needs, and these needs were not immediately obvious.

The key questions became: 1) What do customers want? 2) Can we develop it while they still want it? 3) How can we keep our customers satisfied?

In response to these discerning customers, firms began to adopt the marketing concept, which involves:

1) Focusing on customer needs before developing the product

2) Aligning all functions of the company to focus on those needs

3) Realizing a profit by successfully satisfying customer needs over the long-term

Selling ConceptSelling Concept Marketing ConceptMarketing ConceptEmphasis is on the product.

Emphasis is on customer’s wants.

Company first makes the product and then figures out how to sell it.

Company first determines customers’ wants and then figures out how to make and deliver a product to satisfy those wants.

Planning is short-run, in terms of today’s products and markets.

Planning is long term, in the sense of new products, tomorrow’s markets, and future growth.

Stresses needs of seller. Stresses needs of buyer.

• Under the selling concept, a company makes a product and then uses various selling methods to persuade customers to buy the product. In effect, the company is bending consumer demand to fit the company’s supply.

• Just the opposite occurs under the marketing concept. The company determines what the consumer wants and then develops a product to satisfy that want and still yield a profit. Now the company bends its supply to the will of consumer demand.

The Marketing Mix市场营销组合

The 4Ps of Marketing

The essentials of a firm’s marketing effort include their abilities :

1) to determine the needs of their customers and

2) to create and maintain an effective marketing mix that satisfies customer needs.

A firm’s marketing mix consists of four main elements---product, price, place or distribution, and promotion---used by a marketing manager to market goods and services.

Marketing Mix

Product Place PromotionPrice

PersonalSelling

PublicitySales

PromotionAdvertising

Product: It is more than you think 产品策略 When you think of a product, most likely you imagine

some tangible objects you can touch or hold. However, there is more to a product than you think.

A product is a bundle of tangible and intangible attributes including packaging, color, and brand, plus the services and even the reputation of the seller. Products also can be services or ideas.

There are two general types of products: Consumer products and Industrial products.

Consumer products are produced for and purchased by households for their use.

Industrial products are sold primarily for use in producing other products.

Today, firms spend enormous amounts of time and money creating the products they sell. They carefully research what customers want before developing a product.

Consideration is given to the product and to its package design, its trademarks, warranties, and service policies.

Furthermore, products also have a life-cycle, and companies are continually developing new products to replace products whose sales are declining and coming to the end of their lives.

Therefore, research and development and strategies for selling new products are major corporate marketing department activities.

Price: it is important to success 定价策略 Price refers to the value or worth of a product that attracts t

he buyer to exchange money or something of value for the product.

When setting a price on a range for your products, you need to ensure that you can recoup ( 补偿 ) any overheads, compete with rival companies and charge a price your customers are willing to pay.

To do this you need to fine-tune your pricing policy and you could achieve this in a number of ways:

1) loss leader pricing 2) penetration pricing 3) price skimming 4) differential pricing

Place ： it has to be available 分销策略

Place/Distribution simply refers to how you will sell your products to your customers.

Depending on what it is you are selling will directly influence how you distribute it.

For a producer, the method of distribution is extremely important as it could affect how their product is received and how it sells.

Manufacturer

Household Consumer

Retailer

Wholesaler/agent

Household Consumer

Retailer

Household Consumer

Consumer Products

Industrial Products

Manufacturer

Industrial

Wholesaler

Industrial

Direct supply Direct selling involves selling directly to your

customer; retailing, door-to-door, mail order and e-commerce all directly sell to customers.

The advantage of deciding to directly sell would mean you are in direct contact with your customers and can easily detect the subtle changes or overall demand for your product. You also have complete control over your product range, how it is sold and at what price.

• Disadvantage: direct sales can come at a price; you will need storage facilities or retail premises to sell your products directly.

For example, sells its products only to household consumers.

Direct to retailer If you don’t want the expense of opening and

running your own retail outlet to sell to your customers, then you might consider selling to existing retail outlets.

This would obviously save your company a lot of money that would have to be spent setting up a variety of retail outlets to cover areas regionally or nationally.

However, the administration behind running a system like this would be considerable. Firstly you would have sales teams consult with the retailers on new products, price and promotion. You would also need a method of distributing to many outlets you are selling to.

Promotion ： you have to tell people about it

促销策略 To make your customers aware that your

products exist, there are a number of methods you may choose to use, including:

(1) personal selling (2) advertising (3) sales promotion (4) publicity

(1) personal selling

Personal selling ( 人员销售 ) is personal communication of information to persuade a prospective customer to buy something---goods, services, an idea, or something else---that satisfies an individual’s needs.

It is on a one-to-one basis. Advantages are that questions can be answered im

mediately and problems can be sorted out at a personal level.

(2) advertising

Advertising is non-personal communication of information paid for by an identified sponsor such an individual or an organization.

Advertising can either be concentrated on the general image of the company or a specific product.

Modes of advertising include television, magazines, Internet, radio, videos, posters, cinema, catalogues, direct mail, exhibitions and trade fairs, and outdoor advertising such as billboards.

To develop an effective advertising campaign, they generally must take these steps:

1) identify the target audience of the advertisements

2) state the objective to be accomplished (increase sales, build awareness, etc.)

3) determine how much money to spend to achieve the advertising objectives

4) outline a media plan, indicating specific media in which advertisements will be run to reach the target markets

5) create the actual advertisements 6) place the advertisements with the media 7) through sales or research, evaluate the

effectiveness of the advertisements

(3) sales promotion Sales promotion is a paid form of non-personal co

mmunication that provides direct incentives to customers, salespeople, and marketing intermediaries for purchasing a product.

Methods such as coupons ( 赠券 ), rebates ( 价格折扣 ), premiums ( 赠品 ), bonus packs ( 加量不加价 ), money-off-promotions ( 降价促销 ), free samples, or displays can get consumers excited about a product, motivate salespeople to be enthusiastic, and stimulate dealers to be interested and involved in distributing the product.

Sales promotion activities, generally short-term, offer the advantage of immediacy; firms can implement them and obtain results quickly.

(4) publicity Like advertising and sales promotion, publicity is a

non-personal form of communication. It is actually part of public relations, a set of

communications activities designed to create and maintain a favorable public image for a firm.

Companies can use several vehicles to obtain publicity:

1) a feature article is a longer, more detailed story about a firm, its products, or its people. Firms usually submit a feature article to a specific magazine or newspaper.

2) another approach is sponsorship of events, programmes, or even people such as amateur athletes or teams.

10.1 The marketing mix

• This section introduces the topic of marketing, including some crucial concepts and vocabulary, and encourages you to look at some familiar products and how they are marketed.

Step C Marketing mix• Suggested answers1) product, price, promotion, place2) satisfy, image, design3) competes, rival4) commercials, radio spots, newspaper

advertisements, posters, labels, materials, public relations

5) distribution, end-users, outlets, hire purchase, mail order6) strengths, weaknesses, opportunities, threats

10.2 Advertisements and commercials• Vocabulary• USP: Unique Selling Proposition 独特的推销定位 /sellin

g • point 卖点 • AIDA: Attention, Interest, Desire, Action• nostalgic: (1) A bitter /sweet longing for things, persons, or situati

ons of the past. 怀旧：对过去事物、人或环境苦乐参半的渴望 (2) The condition of being homesick; homesickness. 想家的状况；想

家• cross-reference: A reference from one part of a book, index, catal

ogue, or file to another part containing related information. • 互见参照

Step A

• This is a lead-in to steps B and C. The speakers are talking about the ad for Michelin Maps and Guides.

Step B• Suggested answers:1) it is an advertisement for three products really:

hotel and restaurant guides, guide books of places to see and maps

2) the nice pale colors catch your attention; and the smiling Michelin man looking straight at you makes you want to step into the countryside; it has a nostalgic, old-fashioned look and that makes you interested in reading the text.

3) motorists and tourists, people who stay in hotels or eat in restaurants.

4) The three products are cross-referenced. They’re a sort of package.

What are your favorite TV commercials/advertisements?

Explain why you think they are effective?

10.3 Promoting products and brands

• Vocabulary• brochures: A small booklet or pamphlet, often containing promotional materi

al or product information. 小册子，常包括推销材料或产品信息• leaflets: A printed, usually folded handbill or flier intended for free distribution.

散页印刷品• direct mails: Advertising circulars or other printed matter sent directly thro

ugh the mail to prospective customers or contributors. 直接邮寄广告：向未来的顾客或捐助者直接投寄的广告或其他印刷品

• press releases: An announcement of an event, a performance, or other newsworthy item that is issued to the press. 新闻稿：关于即将出版的有关某一事件、表演或其他有新闻价值内容的通告

• stands: A booth, stall, or counter for the display of goods for sale. 售货的亭子，摊拉或者柜台

Step B • You’ll hear part of a lecture. The speaker is talking a

bout brand names that sound strange or comic to British ears, or which were changed for the British market.

• Answers Portable radios: Party Center, Concert Boy, Party Boy, Yac

ht BoyDrinks: Irish Cream liqueur, Irish Mist liqueurFoods: Haagen-Dazs ice creamCars: Bluebird, Applause, Accord, Carina, Previa, Micra, Coro

lla, Primera, Shogun, Mondeo, Celica, Xantia, Vauxhall, Astra, Corsa, Golf

Computer software: PageMaker, WordPerfect, QuarkXPress, Microsoft Word

10.4 Possibility, probability and certainty

• This is a rather grammatical Function section!

• Many different structures are used in English to describe degrees of certainty.

Step A • You will hear some colleagues talking

about a sales campaign. Write in their names below, to show how certain each of them is.

• Answers(2) 100%---Betty; 75%---no one; 50%---Diana;

25%---Alan; 0%---Christian (Eric doesn’t know)

(3) 100%---Alan; 75%---Eric; 50%---Betty; 25%--- Christian; 0%--- Diana

(4) 100%--- Alan; 75%--- Eric; 50%---Diana& Christian; 25%--- no one; 0%--- Betty

Step B

• Here are some useful phrases that can be used when talking about possibility, probability and certainty.

Step C

• We hear some predictions about future events.

• Listen to what they said and discuss each prediction with your partner.

• Say how likely you think it is that each event will happen. Use the expressions from B.

10.5 Marketing your own region

• In this section, you will be considering the different stages of marketing a product: analyzing statistics, conducting market research, devising a questionnaire and carrying out a market survey, considering the strengths and weaknesses of the product, devising a marketing strategy and drafting an advertisement.

Loss Leader Pricing 削本定价法 This involves lowering prices on a number of key products in

order to attract a customer to purchase the products. Customers obviously like a bargain and they may be attracte

d to buy this item even if they had never considered purchasing this item before.

Price reductions could be used to entice customers to look at your other products, and any profit lost might well be made up should the customer be persuaded to shop around and purchase other products not reduced in price.

The main types of discounts allowed to buyers are quantity or cash discounts ( 数量折扣或现金折扣 ).

Loss leader pricing might be used to sell off or stimulate interest in products considered to be in the maturity or decline stage of their life cycle.

Penetration Pricing 渗透定价法 Penetration pricing is a pricing strategy where

the organization sets a low price to increase sales and market share.

This type of pricing is used for products identified as being in the “introductory” stage of the product life cycle to enable the product to get a foothold in the market.

Prices are artificially reduced to attract the largest possible audience. It is often used to prevent or discourage competitors from capturing the market.

Price Skimming 撇脂定价法 Where Penetration Pricing keeps the pricing

below the real market price, price skimming raises the price artificially to enable it to quickly recoup costs and for immediate profit.

Price skimming means the charging of relatively high prices that takes advantage of early customer’s need for the new product, and then decreasing it slowly as sales begins to decline.

Differential Pricing 区别定价法• This involves allowing the same product to

be priced differently; this can be justified when the product is sold in areas with differing economic climates.

• For example, you could choose to charge a wholesaler less for buying in bulk than for an individual who only buy one single card.

The production Life Cycle 产品生命周期

Introduction

Growth

MaturityDecline

• Products always go through what is known as a life cycle or phase.

• It can be divided into four phases characterized by the revenue generated by the product.

• When exploring what mix is best suitable to your product, you should also consider where in the life-cycle your product lie.

Introduction Phase 引入期

• If you are releasing a brand-new product or service then it will be a baby in the market and will need to be introduced to your market.

• When the product is introduced, sales will be low until customers become aware of the product and its benefits.

• Advertising costs are typically high during this stage in order to rapidly increase customer awareness of the product.

• During the introduction phase, the primary goal is to establish a market and build primary demand for the product class.

Growth Phase 成长期

• The growth phase is a period of rapid revenue growth.

• Sales increase as more customers become aware of the product and its benefits.

• During the growth phase, the goal is to gain consumer’s preference and increase sales.

Maturity Phase 成熟期

• The maturity phase is the most profitable. While sales continue to increase into this phase, they do so at a slower pace. Brand awareness is strong, consequently advertising expenditures will be reduced.

• However competition may result in decreased market share and/or prices.

• The maturity phase is a dangerous time for a product when it risks being swamped by competing products.

• During the maturity phase, the primary goal is to maintain market share and extend the product life cycle.

Decline Phase 衰退期• Perhaps you have noticed that one of your

products is losing its appeal; sales or interest might have dropped.

• If this is the case, your product may be in decline and if you are not careful it may die.

• During the decline phase, the firm generally has three options:

• 1) maintain the product in hopes that competitors will exit. Reduce costs and find new uses for the product.

• 2) harvest it, reducing marketing support and coasting along until no more profit can be made

• 3) discontinue the product when no more profit can be made or there is a successor product.

• Determine which phase in the product life cycle each of the following products is:

• Third generation Mobile phones; Portable DVD player; Personal computer, Typewriters;

• E-conferencing; Emails ; Faxes ; Handwritten Letters

• Iris-based personal identity cards, Smart cards; Credit cards; Cheque books

Introduction Growth Maturity Decline

Third generation

Mobile phones

Portable DVD player

Personal computer

Typewriters

E-conferencing Emails Faxes Handwritten

Letters

Iris-based personal identity cards

Smart cards Credit cards Cheque books