| Lead-in: Can you name the four factors that are called marketing mix? Key words and phrases 1. market segmentation 2. competitor 3. to launch a product 4. market research 5. sales representative 6. brand name 7. distribution channels , 8. inventory size 9. advertising , 10. publicity , 11. sales promotion 12. discount , 13. credit terms 14. industrial marketing and consumer marketing |
The last stage of fitting the product to the market
is fitting the market to the product.
(Clive James, Australian writer and broadcaster)
Most management and marketing writers now distinguish between selling and marketing. The selling concept assumes that resisting consumers have to be persuaded to buy non-essential goods or services. The marketing concept, on the contrary, assumes that the producers task is to find wants and to fill them. As well as satisfying existing needs, marketers can also create new ones.
Marketers are always looking for market opportunities profitable possibilities of filling unsatisfied needs or creating new ones in areas the company is likely to enjoy a differential advantage. Market opportunities are generally isolated by market segmentation. A company has to decide what goods or service to offer. This means that much of the work of marketing has been done before the final product comes into existence. The company must also take into account the existence of competitors.
Rather than risk launching a product or service on the basis of intuition, most companies undertake market research (GB) or marketing research (US). They collect and analyze the information about the potential market, about consumer reaction to particular product or service and so on. Sales representatives are another important source of information.
Once a product concept has been established, the company has to think about the marketing mix, i.e. the various elements of marketing program. The best-known classification of these elements is the 4 Ps: product, place, promotion and price. Aspects in marketing products include quality, features, style, brand name, size, packaging, services and guarantee. Place in marketing includes distribution channels, points of sale, transport, inventory size, etc. Promotion groups together advertising, publicity, sales promotion, personal selling, while price includes the basic list price, discount, payment period, credit terms, and so on. The producer market is larger than the consumer market since it contains all the raw materials, manufactured parts and components, plus capital equipment such as buildings, machines, energy, and services ranging from cleaning to management consulting. Consequently, there is more industrial than consumer marketing. It must be remembered that apart from consumer markets there exists an enormous producer or industrial or business market.
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Ø Comprehension:
1. Characterize the selling concept and the marketing concept.
2. Why do companies undertake market research?
3. What is marketing mix?
4. Characterize each component of marketing mix.
5. What does a producer market consist of?
Ø Summarizing:
Complete the following sentences to summarize the text above:
1. There are two concepts in modern marketing, the selling concept and....
2. The selling concept assumes that....
3. The marketing concept assumes that....
4. The various elements of marketing program are called....
5. Apart from consumer markets there are....
Ø True-false questions:
| 1. Most management and marketing writers now distinguish between selling and marketing. | |
| 2. Marketing and selling concepts do not differ very much. | |
| 3. Marketers are always looking for market opportunities in areas the company is likely to enjoy a differential advantage. | |
| 4. The only source of information for companies is market research. | |
| 5. Marketing mix means the various elements of marketing program. | |
| 6. Apart from consumer markets there exists an enormous producer or industrial or business market. | |
Ø Viewpoint:
Can marketing and selling be opposed or are they part and parcel of each other?
