Marketing

Introduction

Marketing nowadays is a managerial domain that has an increasing strategic importance to business results and ultimately to the shareholder value. The enormous changes in the global market environment explain today’s pressures for greater marketing effectiveness.Businesses succeed when they meet the wants of customers more effectively than the competitors. Corporate profitability depends primarily on the company’s sustainable ability to offer products and services, which customers choose to pay for. Though this involves the efforts of virtually all departments in an organization, the marketing department, by virtue of its touch with the customers, typically has the largest role.

Marketing concept

Marketing is the creation of long-term demand. Products are made and servises are provided in responce tu consumer needs or wants. This means that marketing put the consumer first. The problem is to make the consumer aware of the product and it‘s advantages. The basic function of marketing is tu determine the needs of the customers, to satisfy them and ofcourse the most important thing is to bring a profit to the company.A company that believes in marketing is forward – thonking company and does not rest on it;s past achievements: it must be aware of its strenghts and weaknesses as well as the opportunities and threats it faces in the market (SWOT). Marketers have to identify or anticipate a consumer want. Design a product or service which satisfy consumer need. Persuade target consumers try a product and in long term modify it to satisfy changes in market conditions. They must supply exactly what the customer wants. They can do this by offering the riht marketing mix: “The Four P‘s“: • the right product;• at the right price;• available through the right channels of distribution: place;• presentented in the right way: promotion.

Product

The product is the full bundle of goods and services offered to the customer. This includes the appearance, functionality, and support or non-tangibles the customer will receive. The physical product itself is part of “product” as well as any packaging it arrives in. Products can range all of the way from goods people need every day to live, like milk, tuna or vegetables or they can be very high end dream products, like a private jet. Having the right product for your target market (that’s the people or businesses you want to sell to) requires knowing what they need and want.

Some manufacturers use their name (family name, e.g. Philips, Colgate) for all their products. Others market various products under individual brand names, (Procter&Gamble). The Major producers are famous for their multi-brand strategy which allows them to compete in various market segments, and to fill shelf space in shops, thereby leaving less room for competitors. Since differnt products are always at different stages of their life cycles. With growing, stable or declining sales and because markets, opportunities and resourcesare in constant evolution, companies are always looking to the future, and re0evaluating their product mix. Companies whose objectives include high market share and market growth generally have long product lines. Companies whose objectives is high profitability will have shorter lines, including only profitable items. Additions to product lines can be result of either lenght-streching or line-filling.Line streching means lenghtening a product line by moving either uo-market or down market, for example making items of higher or lower quality. This can be carried out in order to reach new customers, to enter growing or more profitable market segments to react to competitor‘s initiatives. Line-filling means adding further items in that part of a product range which a line already covers might be done in order to compet in competitor‘s niches tu utilise excess production capacity. A total product includes the image of the product as well as its features and benefits.

Price

Price making it easy for the customers to buy. The marketing view of pricing takes account of the value of a product, its quality, the ability of the customer to pay, the volume of sales required, the level of market saturation and the prices charged by the competition.“Price” is pretty self-explanatory but it’s very important to your success. Price something too high and you may never sell a single item of it. Price it too low and you can lose money on every sale once all of your costs of doing business are considered. So you want to price it attractively so that you can sell it to your clients and they’ll feel good about the purchase.

Price is a factor in many people’s decisions. They can’t see your expertise. They can’t see your insight. They can’t see how your past experience will help you provide solutions for them. They can see price.Sometimes if you are higher priced, people think that you must be better. But often, high fees will scare prospects away. When people are making a decision to buy a service, they will make it based on how much they like you or trust you in addition to price.

Place

Place. Getting the product to the customer. This is where and how your product is distributed and sold. Will you sell it yourself, through a broker, or a distributor? Will you run a retail store or sell only to retailers? If a service, do you deliver in person or through the internet or telephone? These questions all involve “place”.Decisions have to be made about the channels of distribution and delivery arrangements. Retail products may go through various channels of distribution. Each stage adds value to the product to justify the costs: the middle-man is someone whose own sales force and delivery system can make the product more easily and cost-effectively available to the largest number of customers.One principle behind this is breaking down the bulk; the producer may sell in minimum quantities of, say 10 000 lt to the wholeseler, who sells in minimum quantities of 100 lt to the retailer, who sells in minimum quantities of 1 lt to the end user. Thus, distribution is done through wholesalers and then retailers, who each add value to the product by• providing a good service to the customers and • stocking a wide range of similar products.

Promotion

Companies have to develop good products or services, price them attractively, and make them acdesible to their target consumers. But this is not enough: they also have to use various promotional tools to generate sales. In promoting a product the attention of potentional customer is attracted an interest in the product, arroused creating a desire for the product, encouranging customers to take prompt action (AIDA).

Since budgets are always limited, marketers usually have to decide which tools-advertising, public relations, sales promotion or personal selling to use and in what proportion.Public relations is concerned with maintaining, improving or protecting the image of a company or product. The most important element of RR is publicity. Many companies attempt to place stories of information in new media to attract atention to a product or service. Publicity can have impact on public awareness.Sales promotions such as free samples, coupons, price reductions, competitions, and so on, are temporary tactict designed to stimulate either earlier or stronger sales of a product. Free samples, for exaple, may generate the initial awareness of a new product. But the majority of products available at anytime are of course in the maturity stage of the lifecycle. This may last many years, until the products begins to be replaced by new ones and enters the decline stage.Personal selling is the most expensive promotional tool, and is generally only used sparingly. As well as prospecting for customer, spreading information about a company‘s products and services, selling these products and services, and assisting customers with posssible technical problems, sales people have another important function.Since they are often the only person from a company that customers see, they are an extremely important channel of information.

Market segmentationSegmentation is important as buyers have unique needs and wants. In segmenting a market, marketers look for broad classes of buyers who differ in their needs. There is no one right way of segmenting markets. A marketer has several bases available to him/her for the segmentation of markets. It is the division of a heterogeneous market consisting of buyers with different needs and wants, into homogeneous segments of buyers with similar needs and wants. Therefore, the segments are heterogeneous between (ie. all the segments are different, eg. one segment all males, one segment all females) themselves, but homogeneous within (eg. within the male segment, all buyers are male; within the female segment, all buyers are female).

Market segmentation is the division of a market into distinct groups of buyers who might require different products or marketing mixes.

Vocabulary

1. long-term demand ilgalaikė paklausa2. execution of marketing strategies marketingo strategijų ___________________________________________________vykdymas3. superfluous atliekamas, nereikalingas4. to provide tiekti5. response atsiliepimas6. particular product būtent tas produktas7. to offer siūlyti8. to aware of a product informuoti apie produktą9. basic function pagrindinė funkcija10. to determine nustatyti11. marketing research rinkos tyrimas12. political publicity politinis viešumas13. fair mugė14. to persuade to buy įkalbinti pirkti15. prospective buyer būsimas pirkėjas16. public relations visuomeniniai ryšiai17. reliability of the company kompanijos patikimumas18. respectful attitude pagarbus požiūris19. presentation of film filmo pastatymas20. achievement laimėjimas, pasiekimas21. to design a product sukurti produktą22. to develope tobulinti, vystyti23. to identify nustatyti, atpažinti24. to influence consumer wants įtakoti vartotojo norus25. to modify pakeisti26. to anticipate numatyti27. target consumer vartotojas kaip taikinys28. channels of distribution pasiskirstymo kanalai29. the marketing concept marketingo sąvoka30. driving force perkamoji galia31. to produce what people want tiekti ko nori žmonės32. carry out market research atlikti rinkos tyrimą33. marketing mix rinkodaros kompleksas34. promotion reklama, rėmimas35. division padalinys, skyrius36. aesthetic estetinis37. forward company pažangi kompanija38. to face grėsti39. to decline mažėti40. ability galimybė41. volume of sales pardavimų apimtis42. market saturation rinkos prisotinimas43. delivery pristatymas44. arrangemet sutvarkymas, susitarimas45. retail mažmeninė prekyba46. justify the costs padengti kaštus47. middle-man tarpininkas48. challenge iššūkis49. to allow leisti50. warranty garantija51. delivery pristatymas52. gimmick triukas53. to supply goods tiekti prekes54. to possess valdyti55. wholesale didmeninė prekyba56. to involve apimti57. after-sales service papildomas pardavimas58. proposition pasiūlymas59. feature savybė60. desire noras61. prompt action greitas veiksmas62. purchaser pirkėjas63. faset aspektas64. recoup kompensuoti65. flow srautas66. trend-setter naujos mados nustatytojas67. queue eilė, kasa68. superficial paviršutinis69. to diminsh sumažinti70. credit paskola71. deposit indėlis

72. to fluctuate svyruoti73. market segmentation rinkos segmentavimas74. quotation kursas75. order įsakymas76. invoice sąskaita77. maintenance palaikymas78. to dictinguished įžymus79. constitute sudaryti80. stable evolution pastovus vystymasis81. to include apimti82. profitable pelningas83. excess perteklius84. capacity gabumas, sugebėjimas85. variation permaina86. to cover slėpti87. additional papildomas88. proportion santykis89. awareness supratimas90. maturity subrendimas, užbaigtumas91. convenient patogus92. prosperity geovė, klestėjimas93. durable ilgalaikis94. portable kilnojamas95. money-hoarding pinigų kaupimas96. divisible dalomas97. receipt kvitas98. lender skolintojas99. commitment įvykdymas100, issue išleidimas101, origin pradžia, kilmė102, bearer įteikėjas103, to handle tvarkyti104, request reikalavimas105, scarce