Text 2. The main concepts of marketing

Marketing is seen as the task of finding and stimulating buyers for the firms output. It involves product development, pricing, distribution, communication and in the more progressive firms, continuous attention to the changing needs of customers and the development of new products, with product modifications and services to meet these needs. It is always discussed as a business activity regardless of whether it is viewed either in the old sense of “pushing” products or in the new one of “a customer satisfaction”.

The main aim of marketing is to make money (profit) by producing and selling goods and services and to reduce the risks in selling them. There are several ways of eliminating some of the risks: 1) to undertake market research to identify the wants and needs of potential customers; 2) to design advertising and publicity literature to communicate with clients and customers; 3) to employ forecasting technique to predict changes in the composition of the market to help the firm to plan the change; 4) to monitor the activities of competitors to learn the changes in their marketing strategy; 5) to assist in the research and the development of new goods.

To control the marketing functions in a firm many businesses created the position of marketing manager whose duty is to plan and execute the conception of product, place, promotion and price which fall into the notion of four P’s in the marketing mix. The latter stands for the strategic combination of product decisions with decisions on other marketing activities such as pricing, branding, service etc.

In the modern competitive world the design of a product should appeal to a consumer. The creation of benefits and an image for a product that draws public attention is called product differentiation. Not less important is the price which becomes more and more competitive in today’s marketplace. Promotion itself involves listening and talking. Promotional program must be easy because listening provides an organisation with the information about the wants and needs of a customer. Promotion includes advertising, personal selling, public relations, publicity, sales promotion and a manager’s own mouth word. The element of place considers the idea how to make goods and services available at the time and place they are required, which presupposes transporting and storing them. The major institutions involved in distribution are wholesalers and retailers. So, marketing management consists of evaluating market opportunities, selecting markets, developing marketing strategies, planning market tactics and controlling marketing results.

The task of marketers depends upon the needs of their consumers. So, one may differentiate between eight main functions of marketing. The first one is gathering information. Business people should collect information about the market to forecast potential sales. The next one is buying which stands for selecting and purchasing finished goods before they are sold. Selling, the third function, (together with buying it represents trading – the heart of marketing) presupposes advertisement, promotion and selling of goods. The fourth function, transporting and storing, describes shipping and keeping goods at the place where they are sold. Financing means finding cash or credits to pay for the goods a business intends to sell. Standardising and grading, the next marketing function, establishes uniform specifica­tions for a product or service and classifies products by quality and size. The steps taken to predict and limit the risks of possible losses in a business fall into the category of managing and taking risks. Finally, the whole process begins and ends with researching the market to find needs and wants and then testing to find out if the needs have been satisfied.

Nowadays marketers focus their attention upon the communication with the consumer (market communication) and identifying specific markets (market segmentation). The latter describes the process of dividing the total market into several submarkets (segments) that have similar characteristics. One may differentiate between geographic segmentation, representing division of the market according to separate geographic areas; demographic segmentation, splitting the market in accordance with such categories as age, income, sex etc. If one portrays the life-style of a group, its values and attitudes, psychographic segmentation is considered. Benefit segmentation divides the market according to such benefits as comfort, luxury, health etc. When the marketers try to broaden the situation, in which a product can be used, we may speak about situation segmentation. Volume segmentation divides the market by usage of a product – there are heavy, medium, light and non-users.

One of the major tendencies in nowadays courses in marketing is to study consumer behaviour which is directly related to the consumer decision-making process. A consumer searches for information, consults information sources, tries to find alternatives and then makes a purchase decision. The process of decision-making is affected by such factors as physical surroundings, reference groups, psychological influences etc.

Talking about consumers’ needs and wants, we may outline the main aim of marketing – to detect a want of a customer and satisfy it. This leads us to the major function of marketing – marketing research – which is used to find needs and determine the most effective and efficient ways to satisfy those needs.

One of the key concepts of marketing is product life-cycle. Any product which is issued passes through the following stages: introduction – growth – maturity – decline. A company should have a mix of products with representation in each of these stages. It’s easier to make effective marketing decisions, possessing the information about the stage a product takes in its life-cycle. Forgetting the product life-cycle leads to wrong decision-making.

Concluding, we may say, that marketing refers to a broad concept, covering organisation of production and sales of products, which is based on consumer requirement research. Companies should develop a long-term strategy to meet changing conditions in their industry.

Task 33. Translate the sentences into English:

1. Дослідження ринку виконують для того, щоб з’ясувати, якими є потреби сучасного споживача та як їх задовольнити. 2. Найвідоміші торгові марки харчової промисловості в Україні – це “Світоч” і “Галка”. 3. Розподіл ринку – це поділ ринку на декілька частин (сегментів), які мають спільні характеристики. 4. Основною функцією маркетингу є дослідження ринку. 5. Реклама необхідна для представлення продукту громадськості. 6. Здорова конкуренція на ринку можлива тоді, коли продавці пропонують однакову продук­цію за однаковими цінами. 7. Мій знайомий отримав підвищення за добре виконане завдання. 8. Предмет поведінки споживача докладно вивчається і є одним із найважливіших курсів з маркетингу. 9. Багато хто бажає жити в розкоші, але не знає, як іноді важко заробити на розкіш. 10. Вивчення ринку є ефективним методом вивчення сучасного виробництва і тенденцій його розвитку. 11. Нам потрібно було негайно розв’язати цю суперечку. 12. Одним із основних завдань дослідження ринку є визначення потреб та бажань покупця. 13. Маркетингове дослідження передбачає вивчення ситуації на ринку та вивчення переваг та недоліків власної компанії. 14. Перед маркетинговим дослідженням необхідно визначити його вартість. 15. Маркетологи аналізують первинні та вторинні дані дослідження.

Task 34. Think over and then write for half an hour on one of the following issues:

A. What form of business is the most attractive to you? Why? Supply your arguments.

B. There are many different kinds of advertising (on the radio, on television, in newspapers, in magazines, on billboards). In your opinion, which one of these kinds of advertising is the most effective? Why? Use specific reasons and examples to support your answer.

C. Do you agree or disagree with the following statement: you can learn just as much by losing as you can by winning? Use specific reasons and examples (from business world) to support your answer.