Welcome to unit 12
1 Promoting a new product . Companies have to develop good products or services, price them attractively, and make them accessible to their target customers. But this is not enough: they also have to us various promotional tools to generate sales . According to a classification used in most marking textbooks, advertising is only one of four standard promotional tools. The others are sales promotions, public relations, and personal selling
1a listening 1b Comprehension 2a Promotional strategies 2b Summarizing 2c Discussion 2d vocabulary 2e casa study
You will hear Jogishwar Singh explaining the promotional strategies for the trial launch of Fresh Fries ,which you heard about in Unit 9 Looking at the phrase below. Which of those topics are mentioned in the interview?
① Free free advertising on television ② 2publicity in newspapers ③ 3publicity on television ④ 4giving away the fries for free for a trial period ⑤ letting vending-machine operators have a free trail ⑥ paid advertising ⑦ the colour of the machines ⑧ the fact that this is a novel product ⑨ the price of the product ⑩ the size and shape of he machines
  11.the unique taste of the product
  12.where the machines are situate
Answers are as follows
1
2
3
5
6
7
8
12
what do you think Jogishwar Singh means by ‘launching a media blitz ’? Answer: Undertaking an extensive, largescale advertising campaign
According to what Jogishwar Singh says, what is the difference between advertising and publicity?
is paid for; publicity is free: items on television programs or in newspapers which mention your product without you having to pay for it.
Answer: Advertising
when will the company start to use advertising? Answer: After they have analyzed the results from their first series of test machines
Advertising aimed awareness channel loyalty Maturity medium tactics target trial
THE FOUR MAJOR PROMOTIONAL TOOLS:
The basic ideal behind the ‘marketing concept ’-that you make what you can sell rather than sell what you make ?dose not mean that your product will sell all by itself. Even a good, attractively price product that clearly satisfies a need has to be made known to its (
  1) customers. During the introduction and growth stages of the standard product life cycle, the producer (or importer, and so on ) has to develop product or brand (
  2) ,I.e. inform potential customers (and distributors, dealers and retailers) about the product’s existence, its features, its advantages, and so on. According to the well-known‘ Four Ps’ formulation of the marketing mix (product, place, promotion and price ), this is clearly a matter of promotion. 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 (often abbreviated to PR ) is concerned with maintaining, improving or protecting the image of a company or product. The most important element of PR is publicity which (as opposed to advertising) is any mention of a company’s products that is not paid for, in any (
  3) read, viewed or heard by a company’s customers or potential customers, aimed at assisting sales, Many companies attempt to place stories or information in news media to attract attention to a product or service. Publicity can have a huge impact on public awareness that could not be achieved by advertising, or at least not without an enormous cost. A lot of research has shown that people are more likely to read and believe publicity than advertising.
Sales promotions such as free samples, coupons, price reductions, competitions, and so on, are temporary (
  4) designed to stimulate either earlier or stronger sales of a product. Free samples, for example, (combined with extensive advertising), may generate the initial (
  5) of a new product. But the majority of products available at any given time are of course in the (
  6) stage of the life cycle. This may last many years, until the product begins to be replaced by new ones and enters the decline stage. During this time, marketers can try out a number of promotional strategies and tactics. Reduced-price packed in supermarkets, for example, can be used to attract price-conscious brand-switchers, and also to counter a promotion by a competitor. stores also often reduce price of specific items as loss leaders which bring customers into the shop where they will also buy other goods,
Sales promotions can also be (
  7) at distributors, dealers and retailers, to encourage them to stock new items or large quantities, or to encourage off-season buying, or the stocking of items related to an existing product. They might equally be designed to strengthen brand (
  8) among retailers, or to gain entry to new markets. Sales promotions can also be aimed at the sales force, encouraging them to increase their activities in selling a particular product. Personal selling is the most expensive promotional tool, and is generally only used sparing, e.g. as a complement to (
  9) .As well as prospecting for customers, spreading information about a company’s products and services selling these products and services, and assisting customers with possible technical problems, salespeople have another important function. Since they are often the only person from a company that customers see, hey are an extremely important (
  10) of information. It has been calculated that the majority of new product idea come from customers via sales representatives.
1 target 2 awareness 3 medium 4 tactics 5 trial 6 maturity 7 aimed 8 loyalty 9 advertising 10 channel
Complete the following sentences to summarize the text above.
When a new product is launched, the producer has to…. Promotion is one of the four …; sales promotions are one of four different …. The advantages of publicity including … The four stages of the standard product life cycle (excluding the pre-launch development stage) are … Reasons to offer temporary price reductions include… Sales promotions need not only be aimed at customers; … Apart from selling a company’s products, sales representatives …
What kinds of sales promotions are you receptive to?
  1.Coupons giving a price reduction?
  2.Free samples?
  3.Discounts for buying a large quantity?
  4.Price reductions in shops?
  5.Packets offering ‘20%Extra’?
  6.Competitions?
For instance :
Commercial competition brings investment, thus expanding product supply channels, as a result, customers have more choices to choose where and what to by with the lowest price as well as guaranteeing the quality. What’s more commercial competition is not only beneficial to the consumer, also be helpful for the development and the stability of our society. As the saying goes, 'the masses have sharp eyes! ' commercial competition is a good method of retaining old customer, and attracting potential customers. Above all, commercial competition always providing products within our customers reasonable requirement.
There is a logical connection among three of the four words in each of the following groups. Which is the odd one out, and why?

  1.Advertising--competitors--publicity--sales Sales promotion promotion
  2.Advertising agency--advertising campaign--media plan?word ?of- mouth advertising Advertising
  3.Advertising manager?brand-switcher? marketing manager?sales rep Brand-switcher
  4.After-sales service?guarantee?option features?point of sale Point of sale
  5.Brand awareness?brand loyalty?brand name? brand preference Brand preference
  6.Competitions?coupons?free samples?line stretching Credit term Line stretching
  7.Credit terms?discount?list price?packaging
  8.Decline?growth?introduction?product improvement Decline
  9.Focus group interviews?internal research? media plan?questionnare Media plan
  10.Packaging?place?product?promotion product
Imagine that you a term of three or four people, are responsible for promoting one of the following:
A new, up-market health and fitness club A new brand of jeans, manufactured by new (and therefore unknown) company A new fashionable but inexpensive range of quartz watches Potatoes, to be sold in supermarket A new taxi company in your town
Decide exactly what your product is, what is special about it, and which tools you would use to promote it. Imagine that you have a generous budget, and are thus able to employ several different tactics.
Potatoes are a good source of nutrition. They are an excellent source of potassium (among the best) and Vit. C and include several other vitamins and minerals. Like other vegetables they include both simple and complex carbohydrates (including fiber) as well as some protein. Fresh potatoes are on sales
HOW MANY Ps
Although most markets talk about the four Ps, one marketing research student has suggested that there are in fact eight more. Vivien Keller, an MBA student at Midrand University in Sourh Frica, says that a serviceorientated economy requires a marketing mix that also includes:
People not only human resources and customers, but also non-customers: marketers need to analyse why they are not buying. Process the way in which a product is delivered can be as important as the product itself; a customer receiving excellent service with an average product is more likely to return than a customer receiving a good product with very bad service.
Physical evidence or the way things look: people expect everything about a company to look good, form its premises to its notepaper. Positioning situation a product or a brand in relation to others already on the market. Profit the ultimate judge of a company’ marketing efforts and the culmination of all the Ps; marketers cannot just focus on finding and fulfilling customers’ needs but must always balance this with contributing to the company’ profit.
Keller’ other three Ps concern the need for the whole company to understand the practise marketing (see Unit 10 1e). Planning involves ensuring that marketing activities are integrated with the rest of the company’s activities, which will lead to formulate the right policies. Finally, probing means developing a marketing information system that is continuously searching for relevant information.
What do you think about this new account of the marketing mix? Are the eight Ps suggested by Keller as important as product, place, promotion and price? Or wouldn’t they have been suggested if these words didn’t begin with the letter P in English?
I think the eight Ps suggested by Keller are more detail, and some have been included already .
Consider again the product you promoted in the case study in 2e. what could the marketing department do in relation to the five Ps of people, progress, physical evidence, positioning and profit?
Design a Marketing Information Systems
Marketing activities are directed toward planning, promoting, and selling goods and services to satisfy the needs of customers and the objectives of the organization. Marketing information systems support decision making regarding the marketing mix. These include:

  1. Product
  2. Price
  3. Place
  4. Promotion
A marketing information system relies on external information to a far greater degree than other organizational information systems. It includes two subsystems designed for boundary spanning bringing into the firm data and information about the marketplace. The objective of marketing research is to collect data on the actual customers and the potential customers, known as prospects. The identification of the needs of the customer is a fundamental starting point for total quality management (TQM). Electronic commerce on the WEB makes it easy to compile statistics on actual buyer behaviour. Marketing research software supports statistical analysis of data. It enables the firm to correlate buyer behaviour with very detailed geographic variables, demographic variables, and psychographic variables.
Marketing (competitive) intelligence is responsible for the gathering and interpretation of data regarding the firm's competitors, and for the dissemination of the competitive information to the appropriate users. Most of the competitor information comes from corporate annual reports, media-tracking services, and from reports purchased from external providers, including on-line database services. The Internet has become a major source of competitive intelligence.
 

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