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Introduction to Business English Chapter 4 Marketing Chapter 4 (A) What is Marketing The Marketing Concept The Marketing Mix ---Have you ever tried to convince your parents to buy sth? ---Have you ever tried to sell a used textbook? ---Have you ever decided to buy sth because of the product advertising? ---You may have not known it at that time ,but you were performing marketing activities. ---When we hear the term marketing, we will always think of advertising or selling. Actually they are only a small part of marketing. ---Marketing is more than advertising, but we see it most. 13 Lead-in activities Advertisement, slogans---parts of marketing ○ Things go better with Coca-cola. --- Coca-cola ○ Communication unlimited. ---Motorala ○ Behind that healthy smile, there’s a Crest kid. ---Crest toothpaste ○ Time is what you make of it. ---Swatch ○ Anything is possible. ---Li-Ning Co.Ltd ○ Focus on life. ---Olympus ---Do you have any favorable ads or slogans? ---Which ads can stimulate customers’ desire to buy? ---Which is not desirable? Why? bad to corporate image/arouse bad feeling 13 What is Marketing? Marketing Planning: Market research determine people’s needs & wants what Product to produce/offer? Executing: Pricing: how to set the price? cost+ profit margin low price? high price? competitive? acceptable? Promotion: how to sell the products? advertising/personal sales sales promotion/publicity Place/Distribution: how to get the products? (consumers) direct sales retailer/wholesaler 13 The Marketing Concept In different historical time, there were different prevailing philosophies. They are not restricted to those periods and are still practiced by some firms today. The Production Concept: (industrial revolution---early 1920’s) ① How to improve production efficiency ② How to lower production cost ③ How to enlarge production volume Key Question: ⊙ Can we produce the product? ⊙ Can we produce enough of it? Goods of necessity, unfulfilled market, few competition 13 The Marketing Concept The Selling Concept: (by early 1930’s) Empty 生产观念阶段 市场不饱和 生产了能卖 推销观念阶段 市场饱和 竞争，广告，推销 ① Facing competition ② Advertisements/Promotion ③ Persuading customer to buy Key Question: ⊙ Can we sell the product? ⊙ Can we charge enough for it? 13 The Marketing Concept The Selling Concept: (by early 1930’s) There was little unfulfilled demand. Produce→go to consumers → Hard selling ---marketing activities happen after the product was developed and produced. Pyramid sales/ Networking selling Pyramid sales v.s Direct Sales 13 The Marketing Concept The Marketing Concept: (After World War Ⅱ) Discretionary money on hand Changing needs →marketing concept Key Question: ⊙ What do customers want? ⊙ Can we develop it while they still want it? ⊙ How can we keep our customers satisfied? Focus on customer needs before developing the product Case: Coca-cola selling concept old, classical, red, v.s. Pepsi marketing concept young, fashion, energy, passion blue ⊙ Difference b/t Selling and Marketing --- p.129 13 The Marketing Concept The Post Marketing Concept: Marketing concept → find needs, satisfy needs Post marketing concept → create needs, pursue needs ---A lot of people do not really know what they really need, they just constantly pursue new things, pursue fashion, pursue the feeling of owning new things in hand. ---2010.11 I phone 4 put into the market, People line up for one. “有人出门买四袋苹果， 有人出门买苹果四代”。 13 Plant LocationMix The Marketing 4P’s---Product, Price, Place, Promotion 1. Product Definition Case: Acer(宏基)------Ben Q(明基) Lenovo/ Lenovo IBM Type of product: Product marketing: style, pattern, color, quality, price, packing, brand, After-sales service, warranty… Marketing deparment activity: research---development---strategies for selling 13 Plant LocationMix The Marketing 4P’s---Product, Price, Place, Promotion 2. Price---most important factor to success Setting price principle: ① recoup any overheads→cost + profit margin ② compete with rival companies→ competitive ③ charge a price your customers are willing to pay → affordable Ways to set price: ① Loss Leader Pricing ③ Price Skimming ② Penetration Pricing ④ Differential Pricing 13 Plant LocationMix The Marketing 4P’s---Product, Price, Place, Promotion 3. Place---how you will sell your products Direct Supply Direct to retailer 4. Promotion Personal selling Advertising Sales Promotion Publicity 13 Homework 1. Review theory and vocabulary 2. Questions for discussion 3. Exercises . 4. Preview the rest of chapter 4 13