Professional Documents
Culture Documents
English For Marketing
English For Marketing
English For Marketing
UNIT ONE
DEFINING MARKETING. THE
CONCEPT OF MARKETING
A.
I. Defining Marketing
1. marketing n. [U] the branch of business concerned with advertising,
PUBLICITY: a job in marketing/ marketing strategies/ the marketing director
(Longman Dictionary of Contemporary English, 1987)
2. marketing n. 1. The act or process of buying and selling in a market. 2. The
commercial functions involved in transferring goods from producer to
consumer. (The American Heritage Dictionary, 1985)
3. marketing n. [U] 1. the ways in which a company encourages people to buy its
products by deciding on price, type of customer, and advertising policy: the
firms new director of marketing; a marketing campaign 2. Am E old-fashioned
shopping for food and drink: do the marketing When are you going to do the
marketing? (Macmillan English Dictionary for Advanced Learners, 2004)
4. marketing n. the process of using the marketing mix (price, product,
promotion, and place) to bring about transactions of items of value between two
or more parties (The American Marketing Association) (the rule of the 4 Ps)
5. marketing s. marketing, comercializare, desfacere de produse (Glosar de
marketing, n English for Marketing, 2002)
6. maketeer n. a person who supports a certain sort of MARKET (Longman
Dictionary of Contemporary English, 1987)
1
II. The Concepts of Marketing
The basic concepts of marketing:
a) the 4 Ps: price, product, promotion, place (in traditional marketing)
b) the 4 Ps: product, people, process, progress (in strategic marketing)
c) exceeding of customers expectations, meeting the customer more often,
effective management of all the elements = loyal customers
d) loyal customers and an effective management = employees satisfaction
e) employees satisfaction = a positive system of growth
f) when all these premises are not accomplished, there may be created the
opposite effect, i.e. a doom loop (curb descendent)
g) the basic concept of marketing can be accomplished through new insights,
new technologies, and new personnel policies
h) marketing does not imply only the next sale
B. Tasks
I. Answer the following questions (in Business English, p.93):
1. What is the purpose of marketing?
2. What are three disciplines that are included in the concept of marketing?
3. What is marketing research?
4. How is this different from market research?
5. What does a market survey consist of?
6. Are there any limits on what an opinion pollster can ask and report?
II. Exercises 1-10, pp. 13-20 (English for Marketing)
C. Vocabulary
I. Cliches in economics
The American Way (A fair, tolerant method of running society for and by hard-
working individuals. The term is meant to sum up the ideals of American society)
(in stil American)
2
The price is right.(Something that is a bargain.) (pretul correct)
Money burns a hole in someones pocket. (This person is a spendthrift.) (cheltuitor,
risipitor, mana sparta)
Money doesnt grow on trees. (Prosperity is only won by very hard work. This is a
typical remark of parents when their offspring seem not to appreciate the value of
money.) (banii nu cad din cer)
To throw good money after bad (To continue to invest in what is clearly a bad
cause)
UNIT TWO
MARKETING: METHODS AND
TOOLS. PRODUCT MANUFACTURING
A.
I. Marketing: Methods and Tools(Engleza pentru marketing si publicitate, 1-2)
Marketing has been very much in vogue since the sixties. But it is not a
fashion, it is a basic need. Since the fifties, we have evolved from the economics
of production that prevailed until then to the market economy that has become
worldwide.
3
What is the underlying trend? Since ancient times, man had lived in an
economic environment which, with the exception of a few periods, was
characterized by shortages. One produced, but never in sufficient quantities to meet
demand, and continuous technical advances were consistently offset by population
growth, a rise in purchasing power, etc.
The outcome was that the manufacturers of fine products would sell them
easily at high prices, while those making mediocre products could also sell them
quite well, admittedly at lower prices, as demand was so much in excess of supply.
This resulted in what is called a producers economy, in which the
producer is dominant, as the necessary source to obtain goods whose quantity is
hardly sufficient.
But technical progress eventually caught up with an outstripped the rise in
population growth and purchasing power, to that extent that, as more and more
people produced faster and at lower costs; a reversal of the trend occurred in the
fifties and sixties. The producers economy became a consumer society,
characterized by increased competition between manufacturers, all of them offering
the same products, with the same quality standards and, as regards purchasers, by
such a proliferation of offers (hyper-choice) that buying decisions become difficult.
The situation has entailed the shift from old-fashioned trade to marketing,
the only means of helping a producer to prompt purchasers to buy his product rather
than competing ones.
In a producers economy, if one wants to sell a product, one manufactures
it ones way and offers it for sale as such: it will normally sell, since it is good.
In a market economy, this no longer works. One must first ascertain what
the buyers want, expect, desire, before manufacturing the relevant product, and then
advertise it to prompt them to buy.
This is the marketing approach, which can be said to be a series of
techniques organized into a method and implemented with a view to meeting
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natural or generated needs, under the best psychological conditions for the
customers, and the best financial ones for producer and distributor.
To have the proper marketing attitude is to always seek, analyze, question,
never to take things for granted, to be aware of the constant renewal of the social
and business environment, and thus to be permanently on the alert to adjust the
changes and, even better, to anticipate them if possible.
The management techniques, which have now been improving for
decades, are those allowing:
to know ones potential markets and the reasons why willing or unwilling to
buy;
to identify more closely different categories from the bulk of potential buyers
(segmentation techniques);
to develop products (concept/idea tests, blind testing, etc.)
to stimulate the purchasing decision (advertising and business communication
techniques, sales promotion techniques, etc.);
to set a price for the product (pricing tests);
to determine the best way of distributing the product (choice of distributors);
We may conclude that marketing is a method which makes use of tools
and is based on an approach.
The marketing approach depends on seven points: information, choice,
budgeting, decision-making, planning, action, and control.
These seven steps of the approach are connected with the general policy
of the firm in two main phases:
an upstream, long-term, strategic one;
a downstream, short-term, tactical one.
The first one constitutes preparatory steps, all that precedes action.
Accordingly, the stages in this first upstream phase will be the following:
5
- an analysis of the potential market in the widest sense (direct
competition, substitution products) and of its environment (legal
framework, economic trends);
- the search for positive opportunities of development, in relation to the
preliminary analysis as well as to the technical and financial
possibilities of the firm, the weak points of competition, foreseeable
technical advances and the firms adaptability, the conscious or
unconscious expectations of potential buyers;
- a first selection of possible long-term objectives, in relation to market
situations and the firms potential;
- the budgeting of such objectives to determine the cost of meeting them
and the profits to be expected;
- the decision to select such or such an objective (hence such or such a
market), with the necessary identification of the relevant customer
segments and of the positioning of the products offered;
- the general planning in the medium and long term of the policy to be
followed to reach the objectives set, i.e. the scheduling of the
application of the various marketing tools.
B. Tasks
I. Answer the following questions:
1. What are the qualities of a manager?
7
2. Comment on some of the steps of the new product development process.
3. What is your opinion regarding disciplined freedom?
4. What does it imply to organize for new product development?
II. Exercises from pp.33-39 (English for Marketing)
8
C. Vocabulary Key Words
9
UNIT THREE
ORGANIZATION OF BUSINESS.
MANAGEMENT OF A BUSINESS
A.
I. Organization of business
Any business is closely connected to legal and financial aspects, since capital
must be obtained. The more the business develops, the greater the raising of the capital
and the manner of its control depends on the type of the business organization we
focus on.
1. Sole Trader
The simplest form of business organization is the one-man business or sole
trader who has control of his capital with complete freedom from external
interference.
This type of business is successful for commodities like foodstuffs, tobacco,
sweets, newspapers, but there may appear serious disadvantages since a sole traders
responsibility is great and this type of business cannot develop beyond the owners
financial resources.
2. Partnership
A partnership consists of a small number of persons called partners who use
their capital for the business, either in equal or in agreed proportions. They share the
profit or the loss. The partners who play an active part in the management of the
business are called active partners, the others, sleeping partners.
10
2.1. The franchise business is another type of partnership. A franchise is granted by
the owner and is controlled by a contract which states precisely how the franchise is to
be run. The owner can set up a network of businesses from which income is drawn
using other peoples capital.
4. Formation of Companies
The setting up of a company implies lodging a Memorandum of Association and
the Charter of the company with the Registrar of Companies.
The Memorandum usually contains the following clauses stating:
a) the name of the company, ending with the word Limited (LTD);
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II. the country in which the registered office is situated;
V. the amount of the authorized capital and its division into shares.
Together with the Memorandum, the Article of Association is a contract between
the company and its members comprising rules and regulations for the internal activity
of the company, and specifying such things as the voting power of its members, the
appointment of directors, the distribution of the profits, etc.
After the Memorandum was registered and the necessary fees paid, the Registrar
issues the Certificate of Incorporation and the company may start at once doing
business.
When the company does not need the whole amount of the registered capital
from the very beginning, only a part of it can be offered to the public and this is called
the issued capital. The working capital of a company can be obtained by the issue of
shares. In order to meet the requirements of the investors, two main types of shares can
be designated shares with a variable rate of dividend: ordinary shares and preferred
shares (shares with a fixed rate of dividend whose main aim is safety with modest
income).
When the capital of the company fails to meet the requirements it can obtain
additional funds by the issue of debentures. They can be of various types:
a) Mortgage Debentures (obligatiuni ipotecare; titlu de creanta) (when they are
secured by a mortgage on all or only a few specified assets of the company);
b) Redeemable Debentures (when a definite date for repayment is fixed);
c) Irredeemable Debentures (when repayment is excluded);
d) Convertible Debentures (combine the safety of fixed assets with the chance of
higher profits as they give the holder the right to convent them at state dates and
terms into ordinary shares).
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II. Management of a business
The shareholders own the company but they cannot always take the active part
in the control of that business. Their contribution is generally limited to their
attendance at the Annual General Meeting at which each shareholder has a vote power
corresponding to his holding of shares.
1. Board of Directors
Shareholders delegate the permanent control of the company to a Board of
Directors or Administrators whom they elect. The directors supervise and monitor the
activities of the company, act as agents for the shareholders, are the trustees of the
money invested in the company and serve the interests of the shareholders. For their
activity, they receive a salary which does not depend on the success or failure of the
company.
The Board is presided over by a Chairman. The Board determines the general
policy of the company and appoints one of its members to be the Managing Director.
The latter one is responsible to the Board for the execution of the decisions. The
Managing Director is the Chief Executive Officer at the senior level of management.
When the decision taking activity is beyond the power of the directors or they
feel the need to be backed by the majority of the members in taking a decision, an
Extraordinary General Meeting is called.
1.1. General Manager
There are two specialized categories of departments which supervise any
modern business activity: one concerned with the clerical side of the business, and
another one responsible for the performance of the business. Thus, the Managing
Director alone cannot control the whole company. As a result, some of his duties are
transferred to the General Manager and the Company Secretary.
13
The General Manager is the Chief Executive Officer at the middle level of
management and his duty is to supervise the various departments, to coordinate their
work in order to obtain profit. He also communicates the directors decisions to the
Heads of the companys departments and is in charge with the efficiency of the activity
within all departments. Sometimes, the General Manager may be assisted by an
Assistant Manager (consilier).
1.2. Company Secretary
The Company Secretary is one of the chief officials of the company (s)he
prepares the Agenda for the meetings together with the Managing Director. This is put
down in the Minute Book of the company.
14
Three main types of diagrams and graphs can be distinguished: Circle or Pie
Charts, Bar Diagrams and Line Charts.
2.4. Invoice Department
The Invoice is the document giving the customer all the details about the goods
regarding quantity, quality, and other necessary details.
The Invoice Department may also issue a Pro Forma Invoice for the following
cases: when the order is from an unknown customer or to whom the firm is not willing
to give credit (the buyer will be informed that the goods will be sent on receipt of
payment); when the goods are sent on approval; to let the customer know exactly the
cost of the goods he wants to buy, including the cost of carriage, packing, etc.
This department is also responsible for making out the Debit Notes (D/N) or
Credit Notes (C/N) and correcting overcharges or undercharges in accounting.
2.5. Warehouse
The Warehouse is of great importance to the wholesaler and it first serves the
customers who call there in person.
The Packing and Dispatch (Delivery) Department is closely connected to the
warehouse and it usually makes use of the same stuff.
Goods have to be kept in good conditions (protected from dust, dampness) and
efficient Stock Control is very important especially to promptly answer any enquiry
about the goods in stock.
(Constantin Milea Commercial, Financial & Management English, edit.
All Educational, Bucuresti, 1997)
B. Tasks
I. Comment on the following topics:
- the advantages and disadvantages of being a sole trader;
15
- differences between partnership and joint stock companies;
- types of capital.
II. Translate into Romanian:
The Venturers and the Joint Venture shall execute and file all necessary documents
in order to comply with all applicable laws and regulations that are required to
conduct business. The Joint Venture will continue until terminated because a
Venturer agrees on it, admits in writing that he is unable to pay his debts, is
declared bankrupt or in cessation of payments and breaches a material provision of
the Agreement.
The contracting parties agree that they shall have ownership interest in the assets
and profits of the Joint Venture, and if amounts from the operation and sales are
insufficient the Venturers must pay in equal proportions for all losses.
When the Agreement terminates, all assets of the Joint Venture must be
liquidated, the Venturers may bid for and purchase any of the assets of the Joint
Venture.
A Venturers failure to insist on strict performance of the Agreement or his
failure to exercise any option under the Agreement is not a waiver of any part of the
Agreement.
16
Contributia cu capital a fiecarui membru in aceasta asociere este de 1.000.000 de
lei, iar valoarea contributiei in active nu va depasi 30% din valoarea contributiei in
bani.
Cu exceptia situatiei in care un partener primeste acordul scris al celorlalti
parteneri, partenerul nu va imprumuta bani cuiva sau de la cineva in numele societatii,
nu va participa la nici un contract de inchiriere, nu va cumpara sau vinde bunuri din
proprietatea societatii , nu va vinde, dona sau transfera altor personae actiuni (parti
sociale) ale societatii, nu se va angaja in nici o activitate care sa aiba efecte adverse
asupra capacitatii societatii de a-si desfasura activitatea si nu va admite parteneri noi.
Societatea va tine evidenta financiar-contabila in conformitate cu practicile
financiare corecte si prin procedeele stabilite prin lege, registrele societatiivor fi
pastrate la sediul ei inregistrat , iar, la sfarsitul anului fiscal, societatea va intocmi o
situatie financiara.
Daca societatea isi inceteaza activitatea, toate bunurile proprietate a societatii
trebuie sa fie transformate in bani cu care vo rfi platite toate obligatiile societatii,
respectiv datorii, partea de capital investit de fiecare partener si salariile angajatilor
societatii.
(C. Milea, Commercial, Financial pp. 8-9)
UNIT FOUR
PRODUCT RANGE.
GREEN MARKETING.
A.
I. Product range (Engleza pentru marketing si publicitate, 7)
In marketing one uses the general term product to denote goods and services.
Goods are material, tangible (a pen, a book), while services are intangible (air travel,
dry cleaning).
Whether they belong to the first category or to the second, products are
purchased by private persons or by professionals.
Other common distinctions in marketing are the ones between:
- consumer goods and durable goods;
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- large distribution goods and restricted distribution goods;
- leader products, that make the corporate image of the firm, its success,
its turnover (cifra de afaceri), and attract the largest number of
customers;
- flagship products (produse-locomotiva) or pace-setting products,
which pull the other products; they are every often leader products;
- loss-leaders (produse vandute in pierdere) or low-priced items, which
attract customers because they are inexpensive;
- tactical or complementary products, meant to complement the range in
order to avoid gaps and the negative customer reaction that would
appear;
Everyone should know that any product, in marketing terms, does not exist in
the abstract way; since people want to buy it, there must exist a market for it.
Usually, products are classified in homogeneous sets which are referred to as
ranges : range of do-it-yourself (screwdriver, hammer, saw), beauty products (make-
up, lipstick), electric measurement products (phase-tester, ampermeter).
The range itself may be subdivided into families (that of screwdrivers includes
Philips screwdrivers, ratchet screwdrivers, etc.). Each of the products or items may in
turn carry detailed specifications: Philips screwdriver, 18-centimeter long with plastic
insulated handle, green colored.
The purchasing firm may choose between wide or narrow ranges, each having
its assets and liabilities.
19
The limited range (gama restransa) has the advantage of simplicity in conception
and production which makes for the economies of scale associated with large series
(permite importante economii pe fondul unei productii de serie mare). It also facilitates
sales administration, the job of representatives and dealers, distribution and even
commercial communication, advertising and promotion (Ea faciliteaza si administrarea
vanzarilor, munca reprezentantilor si cea a furnizorilor, distributia si chiar si
comunicarea comerciala, publicitatea si promovarea).
The main drawback of the limited range is that it caters for only part of the
customers and that it does not offer alternative strategies should the market turn bad,
unless the firm, aware of this danger, permanently maintains a commercial and
technological watch which may act as a shield by giving advance warning (nu acopera
decat un sector al pietei si ca nu ofera strategii alternative in eventualitatea aparitiei pe
piata a unor dificultati, exceptand situatia in care firma, constienta de acest pericol, nu
efectueaza in permanenta o monitorizare comerciala si tehnica care o poate proteja,
avertizand-o din timp de pericolul care o ameninta).
The wide range (gama larga) benefits from its variety and the wide choice
offered which strongly appeal to the customers and make it possible to approach an
increased and diversified number of potential buyers. Another advantage is its greater
adaptability in the event of a reversal of business trends (in eventualitatea unei
schimbari a tendintelor pietei).
The main drawback of the wide range is that it is cumbersome and complex,
both in manufacturing and in administrative terms (este greoaie si complexa, atat din
punctual de vedere al fabricatiei, cat si din punct de vedere administrativ).
B. Tasks
I. Translate into English (Engleza pentru marketing si publicitate):
1. Bunurile sunt mai usor de gestionat decat serviciile. (Goods are easier to mange
than services.)
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2 Serviciile sunt imateriale si nu pot fi stocate. (Services are intangible and cannot
be stored.)
3. Bunurile de consum sunt mancate, baute sau uzate rapid (alimente, tutun, haine).
(Consummer goods are quickly eaten, drunk or exhausted foodstuffs, tobacco,
clothes.)
4. Un unic produs-lider a dus la succesul unor firme foarte cunoscute astazi,
precum Moulinex (storcatorul de legume), Seb (oala sub presiune) sau Camping Gaz.
(A single leader product has made the success of such widely known firms as
Moulinex (vegetable mill), Seb (pressure cooker) or Camping Gaz (disposable blue
cartridge/container.)
5. Seriile mari favorizeaza economiile de productie pe scara larga. (Large series
allow economies of scale.)
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C. Vocabulary Key Words
UNIT FIVE
THE FUTURE OF POSITIONING.
PURCHASING BEHAVIOR
A.
I. The Future of Positioning (English for Marketing)
Nowadays we live in a society dominated by over-communication, by too many
products, too many companies and too much marketing activities. Being such a great
explosion of information, our mind turns into a memory bank, having a slot or
position for each bit of information it wants to retain. In general, we retain only the
information which matches our prior knowledge, the other information being rejected,
as opposed to computers, which store everything what is put into their memory.
Successful companies play a game that is called positioning. These companies
are aware of their positions, but they know, at the same time, all their competitors, too.
Today we are in the positioning era that recognizes both the importance of
product features and the company image, and emphasizes the need to create a position
in the prospects mind.
24
The toughest marketing problem occurs when a company competes with another
one having a strong, well-established position. What everyone should know is that it is
almost impossible to dislodge a strong leader who owns the high ground.
25
the socio-economic class to which one belongs still conditions many purchasing
behaviors;
the reference group the buyer wants to identify with, and which has considerable
influence on the purchase of ostentatious goods, which are publicly consumed or
sported (clothes) to serve as status symbols ( achizitiei de bunuri ostentative,
consummate sau afisate ex. haine in public, care functioneaza ca simboluri ale
statutului lor);
the family: if parents have a paramount influence during childhood, later on the
couple and the kids take joint decisions, mutually-influenced, with the compromises
and cancellations this entails (vor lua impreuna decizii de cumparare sub influenta
reciproca a fiecaruia, cu compromisurile si renuntarile pe care aceasta le implica).
the cycle of family life: one easily understands that one will buy very differently as a
young childless couple, a gainfully employed middle-aged couple with young
dependents, or a retired couple.
Personal factors:
the personality or nature of each of us has specific consequences on our purchasing
behavior;
experience, as taught by ones life history and derived from the various situations
one has encountered, leads to behavioral responses which are more or less deeply
rooted;
wants, which are physiological (eating, drinking), but they are also and mainly
psychological and linked to our personality and its evolution: our conscious and
unconscious motivations, our restraints, all that prompts us to do or not to do;
the life style, which makes it possible to draw up the psycho-graphical profile, to
determine how each of us is defined in terms of acculturation in a constantly evolving
society, how he or she behaves in relation to purchasing proper, and also in relation to
his or her desires or fears.
26
Researchers have classified the population into types or mentalities:
utilitarian (utilitarist), security-minded (dornic de protectie), progress-oriented or
adventurous (progresist sau aventuros), out of step (nesincronizat), etc. the marketing
expert will take these features into account to position his products.
B. Tasks
I. What are eponyms? Give examples and use them in sentences of your own.
27
3. Buying behavior models should integrate numerous explanatory factors of
various natures. (Modelele de comportament al cumparatorului trbuie sa incorporeze
numerosi si foarte diversi factori explicativi.)
packaging (ambalare)
ostentatious commodity/ status symbol (bun ostentativ)
consumer, buyer, purchaser (cumparator)
brand loyalty/ disloyalty (fidelitate/ infidelitate fata de o marca)
reference group/ target group (grup de referinta)
hierarchy of needs (ierarhie a nevoilor)
opinion poll/ survey (sondaj de opinie)
UNIT SIX
EXHIBITIONS.MARKET
RESEARCH.DATA COLLECTION
A.
I. EXHIBITIONS ( L.S.Walsh, International marketing)
a) International Importance of exhibitions
Exhibitions are a regular feature of the business scene and they play a crucial
role since:
- the ever-present problems of time, distance and cost in meeting customers and
potential customers are at least partially solved;
- product demonstrations automatically surmount all communications barriers;
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- until recently, in Eastern Europe, trade fairs were one of the few methods by which
face-to-face contact with the purchaser was possible; the fairs retain much of their
importance.
b) Exhibition Planning
Occasional participation in trade fairs on an ad-hoc basis is usually a recipe for
failure. Thus, exhibitions must be:
- an integral part of the overall marketing plan;
- supported by a planned promotional program designed to ensure that the
maximum possible benefit is derived from participation.
c) Categories of Exhibitions
Exhibitions may be of different types. Essentially, the choice will be between:
- a general trade fair or a specialized (industry) exhibition;
- a national or international exhibition;
- exhibitions open to the trade only and those open to the public;
- special-event exhibitions (the majority) and permanent exhibitions.
Regarding the types of exhibitions, it may also be worthwhile to consider the
companys own exhibition, perhaps as a mobile exhibition in a train, or as a spin-off
exhibition (one held at the same time and in the vicinity of a major exhibition).
d) Selecting an Exhibition
Usually, within any category of exhibition, the exhibitor has a wide choice. In
order to make his activity as prolific as possible, his final decision criteria must
include:
- the relationship between the companys target audience and the composition of
the exhibition audience in the previous years; in this respect, organizers should provide
appropriate research data on attendance;
- the length of time the exhibition has been established as a rule new fairs attract
only a small attendance;
- the standing of other exhibitors in past years, and intending exhibitors;
29
- the authority of the exhibition sponsors and their organizing competence;
- the timing of the exhibition it may clash with another exhibition, but on the
other hand, it may immediately follow, as a reasonably real venue, another relevant
exhibition, thus encouraging a spin-off attendance.
e) Purpose of Exhibiting
The objectives of exhibiting must be very clear and they must include:
- taking orders on the stand;
- obtaining enquiries for subsequent follow-up;
- general market publicity;
- assistance in meeting a selection of prospective agents or distributors;
- assistance in the assessment (impunere, evaluare, impozit) of market potential or
of product acceptability.
f) Advance Marketing Program
Everyone knows that mere participation in an exhibition is not sufficient. That is
why the advance marketing program should include:
- target audience identification;
- direct-mail publicity to that audience;
- advance press publicity.
g) Evaluation and Follow-Up
After the exhibition:
- results should be compared with the original objectives;
- actual costs should be compared with budget;
- enquiries should be followed up promptly;
- market information obtained should be evaluated;
- a decision should be reached as to whether to exhibit at the same exhibition in
the following year.
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II. MARKET RESEARCH. DATA COLLECTION (Engleza pentru marketing
si publicitate)
Before selling, one must know what to sell, and who to sell it to. Market studies
use a set of tools likely to give the most precise answer to these questions: who buys,
what, where, at what price, and why.
In technical jargon, these terms are said to be discriminators, because they
make it possible to assess differences, to discriminate. To answer those questions, the
firm may use various sources which are more or less easily accessible.
Internal sources are its property: it covers its sales results, both quantitative
(volume) and qualitative (who buys), which can be interpreted in such a way as to give
a clear view of the customers and of their purchases. Another productive source of
information is the call-reports (rapoartele de activitate) of the sales force, which
provide a clear picture of each customers behavior, and also of the performance of the
firms competitors and of its own salesmen in the field.
Although indispensable, such information is not sufficient. It must be completed
by external sources, called secondary data and primary data.
In order to master its market, the firm must know:
- who buys its products and competing products;
- where its own and competing products are bought;
- at what time in the year, in what circumstances;
- as a substitute for, or in place of what other product, or to meet what
requirements (ca substitut al carui produs/ in locul carui produs si pentru a raspunde
caror cerinte);
- the level of its make/brand and product recognition, as against competition (care
este notorietatea marcii si a produsului sau in comparative cu cele ale concurentei);
- what is its corporate image and that of its competitors, how they are seen (care
este imaginea sa si a concurentilor sai, cum sunt ele concepute).
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In order to answer these questions, the firm must obtain primary data, and to
carry out qualitative and qualitative/ quantitative studies, in other words, conduct or
commission surveys.
Pure qualitative surveys, answering the why-questions, serve to understand and
explain attitudes and behaviors. One must indeed find out:
- what are the motivations and disincentives (retinerile);
- the information and buying-decision processes (procesul informational si
decizional care duce la cumpararea unui produs);
- the type of purchase (planned, spontaneous, carefully thought-out);
- the existence or non-existence of prescribers and their influence (existenta sau
inexistenta unor consultanti si influenta lor);
- the evolution of tastes and perceptions;
- the image and fame of the product, and the firm, as well as those of competition,
in the minds of potentials and current purchasers;
- the fit between product and various points of sale (adecvarea produsului la
diferite puncte de vanzare).
To that end, the technique used is interviews, non-directive and semi-directive,
the second type better adapted to the industrial and professional environment, the first
one, to the general public, together with various tests and attitude scales (In acest scop
se foloseste tehnica interviurilor nedirijate si semidirijate, cel de-al doilea tip fiind mai
bine adaptat pentru mediul industrial si professional, iar primul pentru marele public,
impreuna cu diverse teste si scari de evaluare a atitudinii).
B. Tasks
I. Translate into English:
1. Pentru a analiza continutul interviurilor nedirijate, incepem prin a le transcrie pe
hartie. (So as to analyze the content of non-directive interviews, they are first
commited to paper.)
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2. Apoi, foarte adesea, un psiholog face o analiza verticala si ulterior o analiza
orizontala a interviurilor. (Then, very often, a psychologist completes their vertical,
then horizontal, analysis.)
3. La analiza verticala se face o lista cu cuvintele si expresiile din interviu care sunt
semnificative pentru problema studiata. (In a vertical analysis, one lists all the
significant words or expressions in each interview in relation to the question studied.)
4. Analiza orizontala consta in ordonarea tutror acestor date semnificative in functie de
frecventa aparitiei lor. (Horizontal analysis consists in regrouping, in order of
frequency, all these significant data.)
5. Interviurile individuale nu sunt suficiente; ele sunt completate prin discutii in grup.
(Individual interviews are not sufficient; they are supplemented by group discussion.)
IV. Assume that your company is considering participation in an overseas trade fair.
Describe in detail the steps which you would take to organize such participation and
indicate the benefits which you would hope to achieve from exhibiting overseas.
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UNIT SEVEN
PUBLIC RELATIONS IN MARKETING.
THE NEW ROLE OF PR. HOW TO TURN A BAD
MARKETING TECHNIQUE INTO A GOOD ONE
A.
I. PUBLIC RELATIONS IN MARKETING. THE NEW ROLE OF PR (English
for marketing; International Marketing)
The concept of public relations (PR) has been defined as the non-personal
stimulation of demand for a product, service or business unit by placing commercially
significant news about it in a published medium or by obtaining favorable presentation
of it on radio, television or stage that is not paid for by the sponsor. Its most important
subdivision is IR (investor relations), the branch dealing with the activity of informing
and attracting institutional investors. In the past, this role was assumed by the
journalists who wrote positive information about one company or another; nowadays,
the people dealing with this problem are professionals, who understand the firm and its
value perfectly.
Besides its traditional role, that of advertising a companys services and
products, recently, another PR objective is to make people buy as many products as
possible.
The target media for publicity campaigns must be carefully selected in order to
avoid wasting time and money. Media selection should start with a research of the
market for particular products, services, and concepts. Next, the target media should be
studied to see what kind of materials they use, and in what formats: general news of
people, organizations, and events, feature articles, photo features, letters, editorials,
interviews, audio and video tapes.
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Publicity must be created adapting those formats that satisfy the needs and
interests of the medias audiences. Some of the formats mostly used for publicity are:
News Releases. They report on people, new products, new literature, crisis situations,
research, awards, annual or special events, etc.
Features. They are written by media staff or outside authors. Those written by media
staff generally report on trends and are likely to be more sensitive. The materials
written by outside authors are accepted only if they are professional papers.
Tie-ins. They involve cause-oriented programs developed with nonprofit organizations
concerned with health, environment, product safety, etc. They may also be created with
profit-making organizations, like: malls, airlines, media, or entertainment.
Success stories. Personal achievement can generate coverage.
Spokesperson tours. This is the most expensive, but also the most effective format.
Spokespersons can be corporate or elected leaders, or authority personalities in
relevant fields.
Created events. These include: anniversary celebrations, awards presentations,
community open houses, etc.
Teaching materials. Educators welcome materials that promote awareness of products,
services and concepts if they are educationally sound and not too commercial.
Trends. Media proliferates consumer interests and technology expand.
Merchandising. A very productive afterlife is assured if a product is merchandised
(promovat in magazin).
Programming. PR earns a respected place in the field of marketing programs only
through realistic planning. When scheduling and budgeting, creativity must be
associated with generosity.
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II. HOW TO TURN A BAD MARKETING TECHNIQUE INTO A GOOD ONE
(English for Marketing)
Even if the image of quality and value of a product may seem stable and safe,
there are cases when they may break down all of a sudden. Under such circumstances,
everything depends on your decisions and actions within the very next few hours. The
crisis may be related to the product (a manufacturing error, a packaging mistake, a
product tampering a umbla la produs -, a class-action lawsuit, etc.) or it may be
generated by other causes (a labor dispute, a plant closing, a reorganization, etc.). In
order to make things go right, one should follow the steps suggested below:
asses your crisis vulnerabilities,
develop a crisis prevention program,
establish an early-warning system,
prepare a crisis communication plan,
learn some basic media relation skills.
In case you are part of a larger company, the PR officer or the crisis managing
department will play an important role in solving the problems.
The basic principles you should apply in case of product or service crisis are:
1. People come first (the influence of the crisis on people);
2. Tell the truth (incomplete information, half-truths or lies worsen the
crisis);
3. Get the best or most complete information (when, what, how, why it
happened);
4. Create an inventory of what you dont know (this will enable you to have a
comprehensive knowledge of the event);
5. Decide your best remedy for the situation (necessary steps);
6. Identify the audiences (who needs information first; who is mostly
affected);
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7. Release any bad news completely, clearly, and quickly (news released in
time helps the crisis);
When you have to make the unhappy event known, use the following methods
of disclosure:
1. be compassionate;
2. show you are in charge;
3. keep it simple;
4. express natural emotions;
5. keep ahead of the release of information;
6. anticipate questions;
7. dont speculate;
8. if you are not sure, say so;
9. if you cant answer, say why;
10. conduct rumor control.
Here are some suggestions for crisis prevention:
1. develop relationships of trust;
2. be honest, open, straightforward in all communications;
3. anticipate problems and issues;
4. communicate aggressively (dont let an emergency be the first time anyone
has heard of you);
5. build coalitions with other groups.
B. Tasks
I. Answer the questions:
a) What do you know about PR?
b) Do you work in a company? In case the answer is positive, is there a PR
department?
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c) Which of the formats enumerated would you choose for your company/ country?
d) How often have you bought products because of a nice commercial only? Did that
product satisfy you?
e) How educated are the people in your country regarding advertising? Do they
understand its necessity?
f) What elements mostly used in ads give most credibility and impress women and
men: children, happy young couples, landscapes, old people, sports people, babies,
cars, etc.?
g) How do you find Romanian ads as compared to foreign ads?
h) What do teenagers in our country prefer to see in ads as compared to adults?
UNIT EIGHT
NEW MARKETING TECHNIQUES. ELECTRONIC
MARKETING. INDUSTRIAL MARKETING. SERVICES MARKETING
A.
I. ELECTRONIC MARKETING (English for Marketing)
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Electronic marketing (EM) is defined as any transfer of goods or services from
seller to buyer that involves one or more electronic methods or media. Electronic
buying and selling dates back to the 19th century and it was done by means of the
telegraph.
The evolution of any marketing medium or method into more effective forms
brought about the development of this new field. Thus, commercials, proposals by
telex, fax, or e-mail keep the pace with the latest changes of electronic media and
methods. Nowadays, people have less and less time to watch commercials or read
advertisements for the products they need or prefer. That is why they have in view to
make electronic marketing more profitable than ever and to attract a greater number of
customers. The future seems to be in strong relationship with electronic purchase.
Computer auctions will increase in number. Many more advertisers will send coupons
directly into the home. Most payments will be done electronically. Check transfers will
be inferior in number to electronic transfers.
Electronic marketing does not exclude the basic strategy which dominated the
business world in the past; on the contrary, besides creating new opportunities for new
businesses and careers, it gives a good feeling to those who sell and market in new
ways. Those who cling to the old methods run the risk of being at an increasing
disadvantage, sometimes so big that they lose the quality of a strong competitor.
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a) demand is induced or derived, since the firm buys in response to
the end-market (in functie de piata finala), which is situated
upstream (in aval) and pulls production;
b) demand is often price-inelastic, as the firms need the product or
tool to stay in business, and will integrate the cost incurred into its
own selling price;
c) technique plays an important role, with two consequences: on the
one hand, the features and qualities of the products are measured
objectively; on the other hand, because of obsolesecence
(perimare), one must always keep the rhythm with both technical
and commercial developments, and be strongly involved in
forecasting;
d) demand is heterogeneous: firms differ widely in size, markets are
sometimes highly concentrated, and potential buyers may be very
few; hence the sharp competition among markets, but there is a
positive side, too, and that is the fact that one may then know all
ones potential customers;
e) manufacturing times (termenele de fabricatie) are sometimes very
long; in the meantime, market conditions may change because of
competition, of economic trends etc.
f) the degree of independence of potential buyers is extremely
variable as a result of the complexity of inter industrial
exchanges;
g) sales are effected by salespeople with a double qualification,
technical and commercial;
h) the supplier is often in a position to know almost all his potential
clients;
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i) the buyer is most of the times well-informed about competing
products on the market.
The marketing of industrial goods and services must take into account a specific
feature of this field, namely the purchasing procedures. The high number of people
who have a say in the purchasing decision leads to a negative consequence. Things
would be easier if the industrial purchaser were to decide what to buy and who from.
B. Tasks
I. Answer the following questions:
1. What is EM?
2. What forms of EM are you familiar with?
3. What are the similarities and dissimilarities between the older electronic media and
the modern ones?
4. How do you see EM in the future?
II. Choose five of the given idioms and use them in sentences of your own.
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III. Translate into English:
1. Cand o strategie de grup le este impusa firmelor membre, politica generala de
cumparare practicata de grup nu este intotdeauna cea mai buna pentru fiecare dintre
ele. (When a group strategy is imposed on member firms, the general purchasing
policy applied by the group is not always the best for each unit).
2. In cazul pietelor captive, clientul nu poate sa-si aleaga liber furnizorul, de exemplu,
din cauza raporturilor financiare cu alte firme. (In the case of captive markets, the
client cannot choose his supplier freely, for instance, because of financial ties with
others.)
3. Micile intreprinderi specializate se pot dovedi clienti majori pentru un anumit
articol. (Small specialized businesses may prove to be major customers for a specific
article).
4. Vanzatorii din mediul industrial au dubla competenta: fie ca sunt simpli agenti de
vanzari care au si cunostinte tehnice despre produsele lor, fie ca, la celalalt capat al
spectrului, sunt ingineri de vanzari. (Salespeople dealing in industrial products have a
dual competence: whether they are rank and file technical and sales people, or, at the
other end of the spectrum, sales engineers).
5. Masinile grele formeaza o piata foarte concurentiala, pe care vanzarile, precedate de
un deviz, se efectueaza direct de la producator la comparator. (Heavy equipment goods
constitute a highly competitive market, on which sales are affected through previous
estimates, direct from producer to purchaser.)
UNIT NINE
INTERNATIONAL PRODUCT POLICY.
THE MARKETING STRATEGY OF THE FUTURE.
A.
I. INTERNATIONAL PRODUCT POLICY (Engleza pentru marketing si
publicitate)
The question that arises when one wants to operate outside of ones home
country is whether one has to adapt products hitherto meant for the domestic market. If
indeed it is tempting to enlarge ones market(s), the question arises: How is this
achieved in practice?
Since the 80s, one of the most common phenomenon all around the world was
globalization of markets, which has lead to a spurious (fals) debate, based on a false
problem. Its advocates claim that, as the mass media contribute to an increasing
standardization of life-styles, and make it possible to reach easily and at low costs
wider and wider population areas, products that are successful on their domestic
markets can be sold worldwide without adjustment. This results in ignoring the
specificities of smaller cultures, their habits, motivations, restraints and perceptions of
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others. World-wide spread products like Coca-Cola or Marlboro constitute isolated
cases that in no way justify the so-called globalization. In order to be successful on
foreign markets, we must take into consideration all the existent differences among
cultures, and be able to answer the following questions:
1. When is it possible to sell identical products abroad?
2. When is it necessary to adapt them to foreign markets?
3. When is it possible to sell the same products while advertising them as
different?
There is no single answer to the above questions, but only specific cases to
which the firm must adjust in the light of local and general factors. For this, one must
take into account:
1. the physical features of products and the function they fulfil;
2. what they symbolically represent for different cultures;
3. the size of each market and the purchasing power of the customers involved;
4. adjustment costs;
5. the technical and financial capability of the firm.
In many countries, local legislation makes it necessary to adapt products: either
because of technical norms (voltage, types of electric plugs), sanitation norms
(foodstuffs in the U.S., catalytic exhaust-pipes), or safety norms (car-bumpers, toy-
components). Apart from exceptional cases like those of ball point pens, Teflon for the
lining of cooking utensils, gas cartridges and containers, or a few others, very many
products have to be adapted in some way. Adjustments must take into consideration the
expectations, requirements and tastes of the clients involved, which may differ widely,
even among neighboring countries. Let us think what is the French customers attitude,
for instance, toward German or Spanish cooking?
Adaptation is geared to specific conditions of use. We must have an eye to the
local literacy and technical levels, and to the accessibility of facilities (isolated
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locations, climate), so as to provide the best suited equipment for conditions of use that
differ widely from those prevailing in the country of origin.
Other factors, which are mainly psychological, involve the need to adapt
products: namely the perception of symbols and the image conjured up by made in
. Before launching any product, it is imperative to know how it is perceived in
different cultures, on different markets.
If in some countries people tend to favor domestic products, thus advantaging
national production, in others, foreign products are preferred and foreign origin is an
asset (atu).
II. THE MARKETING STRATEGY OF THE FUTURE (English for
Marketing)
No one should ignore the rapid changes in the business world that have taken
place within our contemporary life. New rules must be established with the aim of a
rapid and proper development of our society.
Nowadays, the process of understanding the needs and wants of the consumer
and that of using new technology and equipment are equally important. The only
successful companies in the future will be those making use of a completely new
marketing strategy meant to learn how to identify changing consumer needs and of
their power to meet those needs. Nowadays, success results from the ability to think
innovatively about the whole marketing process.
J. Raymond Lewis, Jr. suggests 10 main steps to marketing success to be
followed in the near future:
1. understanding the needs of the consumer;
2. understanding the real costs in order to keep in line;
3. continuously measuring success in comparison with the competing companies;
4. thinking non-traditionally;
5. identifying markets and long-time opportunities;
6. understanding that good value doesnt mean a cheap product;
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7. admitting competition;
8. admitting that there is a global market today, not just an American or Japanese
one;
9. making best use of efforts and resources;
10. realizing that you cant do everything but stay concentrated on a few things.
J.R. Lewis, Jr. suggests that one of the most concentrated definitions of
marketing could be: Creative thinking. Good strategy.
B. Tasks
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4. Exportul de produse fara modificari este, la prima vedere, cel mai ieftin pentru
firma. (Exporting products without changes is what at first sight is the least expensive
for the firm.)
5. Intr-adevar, aceasta ar putea costa mai mult decat ar aduce. (It may indeed cost more
than it will yield.)
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