| Lead-in: Can you give your definition of marketing? Key words and phrases 1. to promote goods and services 2. marketing mix , (c, ) 3. product life cycle 4. costs and expenses 5. manufacture and distribution 6. demand and supply 7. below or above the average price 8. current price 9. competitors price 10. distribution channel 11. competing product 12. manufacture 13. wholesaler 14. retailer 15. consumer |
Marketing is a total system of business activities designed to plan price, promote and distribute goods and services to satisfy individual and organizational objectives.
The key to successful marketing is having the right product at the right price in the right place with the right promotion. Marketing can be divided into 4 main elements that are popularly known as the four Ps: product, price, promotion, and place.
Each of the 4 Ps focuses on the customer and each is related to the other because a decision about one usually affects the others. The most effective combination of the 4 Ps is the right marketing mix for each particular product or service.
Product is the first and most important element of the marketing mix. Product strategy means making coordination decision on the product mix, product lines, individual product items, brands, packages and services.
As a product is developed and introduced and as it progresses through its life cycle, decision must be made about the pricing of the product. Among the important factors considered when setting a price are:
¾ the costs and business expenses involved in the manufacture or distribution of the product,
¾ its fashion and seasonal appeal,
¾ the competition,
¾ government price regulations,
¾ supply and demand.
Marketers may choose the price above or below the average or current market price. If the price is above competitors price, the marketer must offer some unique advantages that are easily seen by the customers. If marketers price is below the market price, they may attract more customers and increase sales. If the price is the same as others then the service must be better to attract the customer.
When a product comes off the production line, the manufacture must select the best distribution channel to get that product to the consumer. No mater how good a product is, it can be a total sales failure if it arrives in the market place too late, if distribution costs are too high, or if it is not distributed as widely as a competing product.
Producers of consumer goods have 5 channels to choose from on marketing their goods. The channels range from the simplest (manufacture to consumer) to the most complex (manufacture to agent to wholesaler to retailer to consumer).
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Ø Comprehension:
1. What is marketing?
2. What is the key to successful marketing?
3. Name four elements of marketing.
4. What is the most effective combination of the 4 Ps?
5. Product is the most important element of the marketing mix, isnt it?
6. What factors are considered when setting a price?
7. What must the marketer do if the price is above competitors price?
8. When can a product be a total sales failure?
Ø Summarizing:
Complete the following sentences to summarize the text above:
1. Marketing is a system of business activities designed to .
2. Successful marketing is .
3. Product, price, promotion and place are .
4. Product strategy means .
5. When you set a price, you must consider the costs and business expenses of the product .
6. Marketers may choose a price above or .
7. It is necessary to select the best distribution channel to get the product .
Ø Viewpoint:
Is marketing art or science?
