Lecture 2 - Marketing

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Professional English 1

Lecture 2
Sept. 9, 2021

Tatia Zhorzholiani
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Marketing
• Marketing is the action or business of promoting and selling products or
services, including market research and advertising.

• In modern terms, marketing is defined as the movement of goods and


services from manufacturer to consumer in order to satisfy the customer and
to achieve the company’s objectives. It can be considered as dynamic field that
involves a wide variety of activities.

• The base of marketing is the so-called marketing mix. It includes four P’s:
product, price, placement, and promotion.

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Product

• Product (service) is often connected to developing new product or service,


searching the potential markets, and, finally, introducing it to the market.

• Target market selection is the most important task


for any firm. A target market is a group of individuals
who will probably buy the product. That involves the
development of a marketing strategy.

• A successful marketing mix depends on the knowledge about consumers


and their buying habits, gained through market research as well as correct
identification of the target market.
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Price
• Price is the most changeable element of all the four P’s.

• There are three pricing options the company may take: above, with or below
the prices that its competitors are charging.

• For example, if the average price for blue jeans is $ 50, a company that charges
$ 50 - has priced with the market; a company that charges $ 47 - has priced
below the market; and a company that charged $ 53 - has priced above the
market.

• Most companies price with the market,


selling their goods and services for average
prices established by major producers in the
industry known as price leaders.
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Placement

• Placement involves getting the product or service to the customer. This


takes place through the channels of distribution.

• A common channel of distribution is:


Manufacturer > wholesaler > retailer > customer

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Promotion

• Promotion includes all kinds of communication with individuals, groups, or


organizations to directly or indirectly facilitate exchange by informing and
persuading them to accept a product or service.

• There are two major ways in which promotion occurs: through personal selling,
as in a store; and through advertising, as on TV.

• One should distinguish advertising campaign which can be developed by


personnel within the firm or in conjunctions with advertising agencies, and
publicity - that is the means of communication transmitted through a mass 6

media.
• All marketing activities must be oriented toward creating and sustaining
satisfying exchanges. Both the buyer and the seller must be satisfied.
• The first should be satisfied with goods, services or ideas obtained in the exchange.
• The seller should receive something of value, usually financial reward.

• Marketing helps companies generate profit - the lifeblood of economy.

• About half of each consumer dollar is spent on marketing activities.

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Marketing Research: Key Players

The major actors in company’s microenvironment are the


company itself, suppliers, market intermediaries, customers
and competitors.

• The company: All the departments within a company (e.g. production, finance,
personnel) have an impact on the marketing department’s plans and actions.

• The suppliers: Changes in the supplier environment, such as prices and availability of
raw materials, have a considerable impact on a company’s marketing operations.

• The market intermediaries: Middlemen such as agents, wholesalers and retailers,


are powerful actors. In some cases they can dictate terms and even ban the 8
manufacturer from entering certain markets.
• Customers: The marketer needs to know which people are involved in the
buying decision and what role each person plays. For many products, it is not
difficult to identify the decision-maker. Men normally choose their own shoes
and women choose their own make-up. However, some products and
especially new ones may involve more than one person in decision-making.

• Competitors: A company’s marketing system is greatly influenced by that of


competitors. The best way for a company to grasp the full range of its
competition is to take the viewpoint of a buyer.

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The Decoy Effect
• The decoy effect is a phenomenon whereby consumers will tend to have a specific
change in preferences between two options, when also presented a third option that is
asymmetrically dominated.
• In simple words, when there are only two options, consumers will tend to make decisions
according to their personal preferences.
• But when consumers are offered another strategical decoy option, they will be more likely to
choose the more expensive of the two original options.

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The Decoy Effect
• The decoy effect is a phenomenon whereby consumers will tend to have a specific
change in preferences between two options, when also presented a third option that is
asymmetrically dominated.
• In simple words, when there are only two options, consumers will tend to make decisions
according to their personal preferences.
• But when consumers are offered another strategical decoy option, they will be more likely to
choose the more expensive of the two original options.

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The Decoy Effect
• The decoy effect is a phenomenon whereby consumers will tend to have a specific
change in preferences between two options, when also presented a third option that is
asymmetrically dominated.
• In simple words, when there are only two options, consumers will tend to make decisions
according to their personal preferences.
• But when consumers are offered another strategical decoy option, they will be more likely to
choose the more expensive of the two original options.

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The Decoy Effect
• The decoy effect is a phenomenon whereby consumers will tend to have a specific
change in preferences between two options, when also presented a third option that is
asymmetrically dominated.
• In simple words, when there are only two options, consumers will tend to make decisions
according to their personal preferences.
• But when consumers are offered another strategical decoy option, they will be more likely to
choose the more expensive of the two original options.

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This had a good response in western countries. Now, the company planned to extend the same to
Arabic countries.
But in Arabic countries, the campaign was super flop and affected sales of Coca Cola.
Do you know what could be the reason?

The rest of the world read left to right.


Arabic readers read right to left and you’ll see why it just doesn’t work in Dubai 17

and other Arabic countries.


Marketing ☺
• You see a gorgeous girl on a party, you go to her & say “I am rich. Marry me!” >>> That's
Direct Marketing.

• You are at the party & your friend goes to a girl, pointing at you and tells her: “He's very
rich, marry him... " >>> That's Advertising.

• Girl walks to you & says: “you are rich, can u marry me?” >>> That's Brand Recognition.

• You say: “I m very rich, marry me” & she slaps you. >>> That's Customer Feedback.

• You say: “I’m very rich, marry me.” & she introduces you to her husband. >>> That's
Demand & Supply Gap.

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• Before you say: “I m rich, marry me”, your wife arrives. >>> That's Restriction from
Entering New Market.
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