Production Life Cycle

Products, like people, have been viewed as having a life cycle. The products life cycle concept describes the stages a new product goes through in the marketplace: introduction, growth, maturity and decline.

The introduction stage of the product life cycle occurs when the product first enters the market, sales grow slowly, and profit is little.

The second stage of the product life cycle, growth, is characterized by rapid increases in sales, and it is in the stage that competitor appear.

The third stage, maturity, characterized by a leveling off of total industry sales revenue. Also, marginal competitors begin to leave the market. Most consumers who would by the product are either repeat purchases of the item or have tried and abandoned it.

The decline stage is the beginning of the end and occurs when sales and profits are steadily dropping. Frequently a product enters this stage not because of any wrong strategy of the company but because of environmental changes.

Ex. 6. Logically organize the following sentences to make up the text. The first sentence is given to you.

1. A basic decision in marketing products is branding.

2. Some brand names can be spoken, such as a Big Mac hamburger.

3. The Campbell Soup Company is the trade name of that firm.

4. In branding an organization uses a name, phrase, design, symbols, or combination of these.

5. A trademark identifies that a firm has legally registered its brand name or trade name

6. Other brand names cannot be spoken, such as the rainbow-coloured apple (the logotype or logo) that Apple Computer puts on its machines and in its ads.

7. A brand name is any word, “device” (design, sound, shape, or colour), or combinations of these used to distinguish a seller’s goods or services.

8. A trade name is a commercial, legal name under which a company does business.

9. It helps to identify its products and distinguish them from those of competitors.

10. So the firm has an exclusive use, thereby preventing others from using it.

Ex. 7. Fill in the gaps with the missing words.

Category, research, marketer, services, process, utility, exchange, profit, information, cycle, concept, marketing, advertising, goods, advertiser, extension, effectiveness

Marketing is the … companies use to make a … by satisfying their customers' needs for products. A more complicated … at the core of marketing is the perceived equal-value …, which implies three phases in the marketing-exchange …: finding out who customers are and what they want; interpreting this … for management in order to shape products; and devising strategies to inform customers about the product's … and to make it available to them. Advertising is concerned with the third step in the … process. It is one of several tools that … can use to inform, persuade, and remind groups of customers, or markets, about their … and …. Its … depends on the communication skill of the … person. It is also effective only to the extent that other marketing activities, such as market …, are correctly implemented.

There are three … of participants in the marketing process: customers, markets, and marketers. To reach customers and markets, … use the marketing communication process, which is an … of the human communication process.

Ex. 8. Join the halves.

A.

1.In the past, each of the countries of the European Union

2.These differences made it difficult and expensive

3.Now, these countries are abandoning old political

4.It helps to reduce taxes and other barriers

5.This unification has eliminated over 300

6.Trucks loaded with products spill

7. The increased efficiency is reducing costs and

8. These changes make Europe that largest unified market

9. By the year 2010 the EU may expand to include at

10. These changes have dramatically altered opportunities available to marketing

11. The international competition fostered by the unification of Europe has also provided

B

1.across the European continent and Britain.

2.creating millions of new jobs.

3. impetus for the US, Mexico, and Canada to develop more cooperative trade agreements.

4. managers both in Europe and in other parts of the world.

5. had its own trade rules and regulations.

6. to move products from one country to the others.

7..squabbles and nationalistic prejudices in favour of cooperative efforts.

8. separate barriers to inter- European trade.

9.commonly applied at national boundaries.

10. least 25 countries and 450 million people.

11.in the world, and more changes are coming.

Ex. 9. Give Ukrainian equivalents to the following.

Encounter difficulties; to do international marketing; exploit a better business opportunity; with little room for growth; demand may shift t a newer product; to return to other markets; the dimensions being evaluated; offer investment incentives; to compete fairly in the domestic markets; protect themselves against; duties are imposed; quotas are revised; a means of entry; the option chosen; domestically produced goods; do not require intermediaries; contract for a large volume of purchases; under licensing; the right to a trademark; in return for a loyalty or a fee; capital-free entry; the product manufactured locally; the advantages are twofold; dumping prices; bribery; reduce red tape.

Ex.10. Render the following into English.

1. Marketing – процес виявлення та задоволення потреб.

2. Buyer’s behaviour – процес прийняття покупцем рішення про те, яку продукцію і в кого купляти. Процес складається з п’яти послідовних етапів: осмислення проблеми, пошук інформаціі, оцінка інформаціі, рішення про купівлю, оцінка після купівлі.

3. Market segmentation – процес розподілу ринку на субринки, кожний з яких створений групою споживачів в чомусь схожих один на одного, на приклад, рівнем освіти, віком.

4. Marketing mix – маркетинговий комплекс, який складається з продукту, системи його розподілу, реклами та ціни і, який фірма використовує для обслуговування споживачів на цільовому ринку.

5. Target market – певна група споживачів, чиї потреби збирається задовольнити підприємство.

6. Branding – використання дизайну, символа, імені чи їх комплексу для идентифікації продукту, що дає виробнику ряд переваг.

7. Consumer goods – товари, які купляють для безпосереднього задоволення потреб покупця.

8. Distribution channel – мережа фірм, які приймають участь в купівлі та продажі товарів згідно їх руху від виробника до користувача.

9. Durable goods – товари, термін придатності яких перевищує один рік.

10. Positioning – процес прирівнювання іміджу товара потребам його цільового ринку.

11. Product life cycle – період, за який продукт послідовно проходить через стадії зародження, росту, зрілості та спаду.

12. Publicity – суспільна думка про компанію чи її продукт.

13. Trademark – символ чи найменування сорту, які захищені законодавством.

Ex.11. Translate into English.

1.Маркетинг тісно пов’язаний з такими соціальними науками, як економіка, соціологія, психологія. 2. Маркетинг вивчає людей в соціальному контексті. 3. Маркетинг – це система наукових и практичних поглядів, які направлені на вивчення та управління ринковими відношеннями. 4. Ціль маркетингу – визначити потреби своїх майбутніх споживачів. 5. Чотири основних керівних фактори маркетингу – це товари, ціни, розташування та рух. 6. Споживач не може відокремити послугу від її постачальника. 7. Зовнішні ринки можуть надати більше можливостей для росту компанії. 8. Одна із складностей – це оцінка політичних та правових умов у країні. 9. Кожна країна Европейського Союзу має свої торгові правила та положення. 10. Об’єднання подолало більше ніж 300 окремих торгівельних бар’єрів. 11. Міжнародний маркетинг – це маркетинг товарів та послуг за межами країни, де знаходиться організація. 12. Спеціалісти з міжнародного маркетингу повинні враховувати культурну сфеу кожного ринку.

Test Questions:

1. “Marketing concept is a consumer-oriented, integral, profit-oriented philosophy of business”. Explain, in your own words, this statement and its implications.

2. “Marketing managers can either view social change as a threat and be hurt, or they can view it as an opportunity and benefit.” Which part of the statement do you support? Why?

3. What is the role of cultural factors in domestic marketing? Give your examples.

4. Explain, in your own words, what each element of the four Ps involves.

5. Will the elimination of trade barriers between countries in Europe eliminate the need to consider submarkets of European consumers? Why and why not?

6. Four Ps and three Cs. What do they stand for?

7. What options of entering into the international market do you know? What are advantages and disadvantages of each of them?

8. “In a free competitive economy, the consumer is king.” What does it mean?

9. Compare your need structure with your perception of each of your parent’s.

10. “The producer, not the consumer is king. After all, the producer is the one who advertises. Therefore, the producer is the one who creates wants and thereby influences what consumers will purchase.” True or false? Explain.

11.Comment on the following: “The last stage of fitting the product to the market is fitting the market to the product”.Think of a company that you buy products from regularly. What does it do to keep you as a customer?

12. Summarize the information of the Unit to be ready to speak on Marketing. The first step to be done is to write the plan of your future report.

UNIT 5