(1) Marketing does not stop with discovering consumer needs. As the organization can’t satisfy all consumer needs, it must concentrate its efforts on certain needs of a specific group of potential consumers. This is the target market - one of more specific groups of potential consumers toward which an organization directs its marketing program.
(2) There are many ways to satisfy the needs of target customers. A product can have many different features and quality. Service can be given. The package can be of various sizes, colours, or materials. The brand name and warranty can be changed. Various advertising media – newspapers, magazines, radio, television, billboards – may be used. A company’s own sales force can be used. Different prices can be charged. Price discounts may be given, etc.
(3) Having selected the target market, the firm must take steps to satisfy the consumer’s needs. The marketing manager in the marketing department must develop a complete marketing program to reach consumers by a combination of the four Ps: product, price, promotion, and place. The four Ps are the elements of the marketing mix. These are the controllable factors because they are under the control of the marketing department. To increase sales a firm can vary its marketing mix by changing these ingredients, use different combinations of these factors for different products and different potential buyers. The marketing mix differs according to the type of product that is being sold. The four Ps can be combined in different ways.
(4) 1) Product includes all the aspects that make up the product, service, or idea offered for sale. It is deciding what products and services to sell and the variety or range of products to sell. Decisions are made on quality, features, style, brand name, size, assortment, warranty, guarantee service and packaging. The firm has to identify what products the consumer wants and the way existing products can be adapted to meet consumer preferences more successfully.
(5) 2) Price - what is exchanged for the product - is closely related to the product and greatly influences its image. On the price depends whether or not the product will be purchased. It means setting prices that are attractive to customers and that are profitable for the company. The price established needs to take into consideration the three Cs - cost, competition and the consumer. The price includes basic price list, discounts for bulk-buying, the length of the payment period, possible credit terms, interest-free credits, and so on. So, the firm has to decide on its pricing policy.
(6) 3) Place is a means of getting the product into the consumer’s hands. It covers two different areas. The first is channels of distribution which deals with wholesalers and retailers. They handle the product between the firm and the consumer. The second is physical distribution which deals with the aspect physically moving the product from the firm to the consumer. This includes warehousing, inventory size, transportation, location of points of sale, etc.
(7) 4) Promotion is a means of communication between the seller and the buyer. It is all the activities used to support the product – everything from pre-sales information to after-sales service. It provides information to targets and involves four areas of persuading consumers to buy: personal selling, advertising, sales promotion and publicity. The firm has to choose methods that can generate sales of the product.
(8) In the recent years other considerations have been added, giving a mix of at least seven P’s. The four P’s of marketing are now the seven P’s because of the increasing importance of services and customer service. The additional three are sometimes referred to as service Ps.
5) People or everyone involved with the company and its products, especially the customers. This implies how your staff (or employees), are different from those in a competitor’s organization, and how your clients are different from your competitor’s clients.
6) Process includes all the ways in which the company and its customers interact. It also implies how your product is built and delivered, or how your service is sold, delivered and accessed.
7) Physical evidence includes anything that shows or mentions the name, the existence and the image of the company – its buildings, vehicles, website, stationery, staff uniforms, badges. Evidence includes everything that shows and mentions the company’s products – the wrapper or the box of the product, all added-value and intangible assets. It means how your service becomes tangible. For example, tickets, policies and brochures create something the customers can touch and hold.
(9) 8) Physical presence means how your shop or website looks. This is the last additional P marketers talk about today.
So, marketing mix is all the activities that facilitate exchange and includes all the controllable marketing elements of the firm available for use in customer satisfaction.
1. Translate into English:
2. Fill in the spaces below to match the seven P’s to the best definitions:
1. P… Things concerned with location and distribution.
2. P… Everyone involved from products to consumer.
3. P… Decisions about what customers pay for the product or the cost of the product.
4. P… Anything that shows or mentions the name and image of the company and its products.
5. P… The goods and services the company provides.
6. P… Ways to make the company and its products well known, to make people aware of the product.
7. P… The interaction between everyone involved.
3. Complete the text using words below:
advertising mix price products promotional
Marie Curie Cancer Care is reviewing its marketing strategy in an attempt to attract a wider audience. It will stop using (1)……… techniques, such as mailings and events. Television (2)………. and face-to-face marketing are both being tested in a bid to supplement the charity’s typical over-60s donor base with younger supporters. If tests prove successful, they will become part of Marie Curie’s marketing (3)………. .
In addition, Marie Curie Cancer Care is expanding its online shop. Stylish handbags at a (4)………. of £10 are attractive to younger customers. Marie Curie Cancer Care says it is responding to customers’ needs and wants by selling elegant fashionwear (5)………. .
4. Match the words with their definitions:
1.Informing customers about products and services and trying to persuade them to buy them, all means of communicating a message about a product or service.
2.A person who organizes and controls a business or the work of other employees.
3.Where goods or services are available.
4.The set of all the various elements in a marketing programme and the way company integrates them.
5.The cost to the purchaser of a good or service, money paid for a product.
6.The planning, implementation and control of marketing activities such as product design, pricing, communication and distribution.
7.Something made, manufactured or produced by a machine or industrial or natural process, anything capable of satisfying a want or a need.
8.To command or direct, to check and regulate, to examine and verify.
9.A company’s plans regarding the marketing mix, including product features, price, promotion expenses, resource allocation, etc.
a) to control b) product c) price d) marketing management
5. Word search. Find words and phrases in the text which have similar meanings:
1.possible or likely in the future (1)
2.a large board for advertisements in an outside public place (2)
3.a company’s written promise to repair or replace a product you buy from them if it breaks or does not work, usually for a specific period of time after you buy it (2)
4.people who buy products or services for their own use (3)
5.a set of customers whose needs a company plans to satisfy (3)
6.combination of different things (3)
7.to command or direct, to check and regulate, to examine and verify (3)
8.a promise of a manufacturer or seller to repair or replace defective goods during a certain period of time (4)
9.a ‘name, term, design, symbol, or any other feature that identifies one seller’s good or service from those of other sellers (4)
10.the length of time a customer is given in which to pay for goods and services (5)
11.trying to be more successful than others (5)
12.percentage reduction from the full price (5)
13.an intermediary between producers and retailers, who stocks goods and delivers them when ordered (6)
14.the process of getting products to consumers usually by way of middlemen (6)
15.the maintenance of a product after it has been bought (7)
16.attracting the attention of the general public to products and services (7)
17.he means of making something known in order to sell goods or services (7)
18.to act on or in close relation with each other (8)
19.activities involving labour, knowledge and advice offered for sale, or the work of dealing with customers (8)
20.the fulfillment of a desire (9)
6. Understanding words and expressions. Choose the best explanation for each phrase from the text:
1.interest-free credits (5)
a)credits in which people are interested
b)credits for which people pay no extra money percentage
a)keeping goods in special buildings
a)pieces of paper or plastic in which products are sold
b)something that covers
4.points of sale (6)
a)goods that are sold
b)places where a product can be sold
a)all means of communicating a message about a product or service
b)getting a better-paid job, moving up the carrier ladder
6.personal selling (7)
a)when an individual sells goods personally
b)the presentation of goods and services to potential customers by sales
a)sellers of goods in large amounts to shops and businesses
b)sales in the shops when all goods are sold
7. Define the main idea of the text:
Marketing mix satisfies consumer demands.
Marketing mix ingredients.
Different marketing mixes.
Seven Ps are better than 4 Ps.
8. Match the headings to the correct paragraph:
1)The process of evaluating the product. 1)
2)Additional elements of the marketing mix. 2)
3)Making decisions on what to sell. 3)
4)Ways of making customers aware of the product. 4)
5)Marketing mix is the way to reach consumers and increase sales. 5)
6)Choosing the right ways to reach customers. 6)
7)An organization’s identification of its potential buyers. 7)
8)Conclusion of what the marketing mix is. 8)
9)Different ways of satisfying consumers. 9)
9. Put the following sentences logically in the right order according to the text:
1.The marketing mix facilitates exchange to satisfy customers.
2.Cost, competition and the consumer are taken into account when setting the price.
3.After choosing the target market it is necessary to make a marketing program.
4.These middlemen handle the product between the firm and the consumer.
5.All aspects of the product must be carefully regarded.
6.The activities which support products before and after sales are of great importance.
10. State in what part of the text the following information is mentioned:
1.Marketing mix takes into consideration market development and includes many new components. It covers any kind of information about product and services to make people buy them.
2.Finding the right ways and suitable outlets to reach customers.
3.One company cannot cover all the market and fill the needs of all consumers.
4.These are the activities that one has to combine successfully in order to sell.
5.By considering this ingredient one decides what to sell.
6.Firms mix the ingredients differently to give a particular marketing mix for a particular market.
7.It is necessary to find out what consumers want to buy.
8.Various offers of the company to attract customers.
9.It is the amount a customer pays for the product.
10.In different markets the four Ps have different degrees of importance.
11.Marketing mix is essential in the process of satisfying consumer needs.
12.Two aspects in dealing with goods before they get to consumers are important.
13.Some advantages are given to those who buy from the companies.
11. Look through the text and say whether these statements are true, false or not mentioned (or true (T) / false (F)). Correct the false ones:
à) true b) false ñ) not mentioned in the text
1.Marketing program includes four Ps.
2.The four Ps are the elements of the marketing concept.
3.The four Ps are uncontrollable factors.
4.The four Ps can be combined in different ways.
5.The term ‘marketing mix’ was introduced in 1953 by Neil Borden in his American Marketing Association.
6.Promotion persuades consumers to buy.
7.Price includes decisions on quality, features, style, brand name, size, assortment, warranty, guarantee service and packaging.
8.The marketing mix element ‘people’ relates only to the customers of the company.
9.Recently other considerations have been added and there are eight Ps in the marketing mix now.
10.Three extra Ps are connected with innovations and technology.
11.It is important to use materials to protect and present a product before it is sold.
12. Answer the questions:
1.What is a target market?
2.Who is a target customer?
3.Define the term ‘marketing mix’.
4.What are the ingredients of the marketing mix?
5.What does a product ingredient include?
6.What depends on price?
7.What does a place ingredient deal with?
8.What are the major forms of a product promotion?
9.What ingredients have been added recently?
10.‘The four Ps’ form the basis of the marketing mix. If you want to market a product successfully, you need to get this mix right. Match the ‘Ps’ 1 to 4 to the definitions a) to d):
1 Product a) the cost to the buyer of goods or services
2 Price b) informing customers about products and persuading them to buy
3 Promotion c) where goods or services are available
4 Place d) goods or service that are sold
13. Translate into Russian:
1.The term ‘marketing mix’ was coined in 1953 by Neil Borden in his American Marketing Association.
2.The four Ps of the marketing mix are the factors used for different products and different potential buyers. Offerings must be found, that is products, services and combinations of these – that will appeal to customers.
3.A product or service, or a combination of these sold together is an offering.
4.In different markets the four Ps have different degrees of importance. Firms use these functions in different ways, or they mix them differently to give a particular marketing mix for a particular market. Therefore, the task of marketing strategy is to determine how the four Ps are to be used.
5.The marketing mix often referred to as the four Ps includes choosing the right product a company produces; selling it at the right price; using the right kind of promotion, i. e. the ways to make the product popular and well-known by advertising; making it available in the right place, where you sell the product and how it reaches the consumer, which is also known as distribution.
6.When product, price, place and promotion are effectively blended, they form a marketing program that provides want-satisfying goods and services for the company’s market.
7.The person who runs the sales or marketing department is called sales or marketing manager.
8.Marketing in many ways is the central activity in business management. In commercial organizations, marketing is ‘everybody’s business’.
9.Product is a tangible good or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service-based like the tourism industry and the hotel industry or products like cellphone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system.
10.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.
11.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.
12.Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales 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.
13.Marketing consists of individual and organizational activities that facilitate satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion, and pricing of goods, services and ideas. The four variables of creation, distribution, promotion and pricing are called the marketing mix. For an exchange to take place, four conditions must exist. First, an exchange requires participation by two or more individuals, groups, or organizations. Second, each party must possess something of value that the other party desires. Third, each party must be willing to give up its ‘something of value’ to receive the ‘something of value’ held by the other. The objective of a marketing exchange is to receive something that is desired more than what is given up to get it, that is, a reward in excess of costs. Fourth, the parties to the exchange must be able to communicate with each other to make their ‘something of value’ available. The ‘something of value’ held by the two parties are most often products or financial resources such as money or credit. When an exchange occurs, products are traded for either other products or financial resources.
15. Peter Bowen of Citimetal Inc. is talking to Anna James, a marketing consultant. Complete Anna’s part of the conversation. Choose from the following:
a)And then the fourth area is physical evidence.
b)It covers both goods and services offered by the company.
c)Exactly, and the desire to buy the product. And, finally, people, which means colleagues, employees, agents and customers. The idea is to keep everyone happy, make personal contact.
d)Yes. This means any visual presence or signs suggesting the company.
e)The second area is place – also called distribution – meaning the movement of goods from the producer to the consumer.
f)Well, we identified six areas where improvement is necessary.
g)After place, process. Process is the interaction between people and systems at all stages, from market research, design, production, delivery and after-sales.
16. a) Read the dialogue of four consumers talking about different products. Decide which of the four Ps each speaker is discussing: product, price, promotion or place:
A.I really wanted it, but when I tried to buy it, I just couldn’t get it anywhere. My friend heard that it was in one shop and he queued up for ages, but they’d run out by lunchtime.
B.The company held a party on a river boat to launch their new campaign. It was absolutely fantastic. We also got a free gift at the end.
C.The shoes were really expensive but definitely worth it. I think the fact that they are so expensive really distinguishes them from the competition.
D.I’ve had this briefcase for 20 years and it still looks good. The material is high quality and long-lasting.
b) There are statements about some organization. Find which ‘P’ of the marketing mix they are referred to:
1.We want to offer calls at a lower cost than our competitors.
2.We advertise heavily on television and in the national press.
3.We phone existing customers to try to persuade them to buy more sophisticated phones which have a higher profit margin.
4.We sponsor classical music concerts.
5.We have our own street outlets, and we also sell through the big electrical goods stores.
6.We don’t put our own brand on mobile phones, but we sell phones for use on different call plans: both pre-paid and monthly-billed customers.
a) promotion (3) b) place c) product d) price
c) Think of some products you have bought recently. Why did you buy them? Which of the four Ps influenced your decision to buy?
17. Read the article and answer the questions below:
Most people and many managers do not understand the role of marketing in modern business.
Marketing is two things. First, it is a strategy and set of techniques to sell an organization’s products or services. This involves choosing target customers and designing a persuasive marketing mix to get them to buy. The mix may include a range of brands, tempting prices, convenient sales outlets and a battery of advertising and promotions. This concept of marketing as selling and persuasion is by far the most popular idea among both managers and the public.
The second, and by far more important concept of marketing, focuses on improving the reality of what is on offer. It is based on understanding customers’ needs and developing new solutions which are better than those currently available. Doing this is not a marketing department problem, but one which involves the whole organization.
For example, for Rover to beat Mercedes for the consumer’s choice involves engineering new models, developing lean manufacturing processes, and restructuring its dealer network.
Creating company-wide focus on the customer requires the continual acquisition of new skills and technology. Marketing is rarely effective as a business function. As the chief executive of Hewlett Packard put it, ‘Marketing is too important to leave to the marketing department.’ Such companies understand that everybody’s task is marketing. This concept of marketing offering real customer value is what business is all about.
1. Which of the four Ps are mentioned here?
2. Does the author think the four Ps are a complete definition of marketing?
3. Does the author think that marketing is only for marketers?
18. Fill the gaps in these sentences using the words from the list:
profitably distribution labels need
price product production-oriented creative process first satisfy range place promotion posters market end-users
1.What is marketing? Marketing is the .......... of satisfying customer needs ………. .
2.What is ‘marketing mix’? It consists of ‘the four P’s’: providing the customer with the right P………. at the right P………. , presented in the most attractive way (P……….) and available in the easiest way (P……….).
3.What is ‘a product’? A product is not just an assembled set of components: it is something customers buy to ………. a ………. they feel they have. The design and the image of the product are as important as its specifications.
4.What is ‘price’? The product must be priced so that it competes effectively with rival product in the same ………. .
5.What is ‘promotion’? The product is presented to customers through advertising (TV commercials, ……….), packaging (design, ………., etc), publicity, P.R. and personal selling.
6.What is ‘place’? Your product must be available to customers through the most cost-effective channels of ………. . A consumer product must be offered to ………. in suitable retail outlets, or available on purchase or by mail order.
7.Why are firms becoming more customer-oriented and less ……….? Because new products must be created to meet the changing patterns of customers’ needs – a firm can’t rely on the success of its existing ………. of products. The customer and his or her needs must come ………. .
distribution research plan services demand quality marketing customers mix product goods
Marketers and all levels of management realize the vital importance of (1) ………. . This has become the watchword of good business. (2) ………. and experience has shown that (3) ………. will pay more for (4) ………. and (5) ………. of high quality and also that they expect every aspect of the (6) ………., including (7) ………., to meet the highest standards. The job of marketers is to design a (8) ………. (9) ………. with a (10) ………. of all the necessary components to satisfy consumer (11) ………. .
(C) Find words in your completed text (B) that mean the same as the following:
Ø users of products and services
Ø people who buy products and services
Ø business professionals who work in the field of marketing
Ø the extent to which consumers want something
Ø the movement of goods and services from the producer to the consumer
Ø the combination of factors that makes up a marketing plan
19. A) Categorize the following aspects of marketing according to the well-known “4P’s” classification of the marketing mix:
advertising after-sales service brand name cash discounts
commercials credit terms characteristics distribution channels