Demand for goods and services
Marketing
Marketingis the process of planning and executing the conception, price, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
People have been trying to sell things for years, and you've learned something about their techniques – advertisements, price markdowns, special contests, tantalizing displays of merchandise. But despite marketing's high visibility, the term itself is difficult to define. The American Marketing Association recently devoted a year of study to the question and evaluated 25 different definition before reaching a consensus on the meaning of the word. According to its definition, marketing is planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchange that satisfy individual and organizational objectives. Marketing is a broad term, not limited to profit-making businesses alone; it encompasses the efforts of nonprofit organizations to "sell" intangibles.
What does the term marketing really mean? Many people mistakenly think of it as advertising or selling. However, advertising or selling are only two of several marketing functions, and not necessarily the most important ones.
Marketing can be defined as any human activity which is directed at satisfying needs and wants by creating and exchanging goods and value with others.
Marketing has become a key factor in the success of western businesses. Today's companies face stiff competition and the companies which can best satisfy customer needs are those which will survive and make the largest profits.
For an exchange to take place, four conditions must exist. First, an exchange requires participation by two or more individuals, groups, or organizations. Second, each party must possess something of value that the other party desires. Third, each must be willing to give up its "something of value" to receive the "something of value" held by the other. The objective of a marketing exchange is receiving something that is desired more than what is given up to get it, that is, a reward in excess of costs. Fourth, the parties to the exchange must be able to communicate with each other to make their "something of value" available. Note, though, that an exchange will not necessarily take place just because these four conditions exist. However, even if there is no exchange, marketing activities still have occurred. The "something of value" held by the two parties are most often products and/or financial resources such as money or credit. When an exchange occurs, products are traded for either other products or financial resources.
Vocabulary
value – споживча вартість
to face stiff competition –зіткнутися з жорсткою конкуренцією
to make profit – отримувати прибуток
to trade – торгувати
exchange – обмінювати
require –потребувати
to possess – володіти
in excess of – більше ніж
to occur –траплятися
a reward –винагорода
І. Fill the gaps in these sentences, using the words from the list.
Creative process, design, distribution, end-users, first, hire purchase, image, labels, mail order, need, opportunities, outlets, patterns, place, posters, price, product, production-oriented, profitably, promotion, range, rival, satisfy, strengths, threats, weaknesses
1. What is marketing? Marketing is the ... of satisfying customer needs ....
2. What is the 'marketing mix'? It consists of 'the four P's': providing the customer with the right P ..., at the right P ..., presented in the most attractive way (P ...) and available in the easiest way (P ...).
3. What is 'a product'? A product is not just an assembled set of components: it is something customers buy to ... a ... they feel they have. The ... and the ... of the product are as important as its specification.
4. What is 'price'? The product must be priced so that it competes effectively with ... products in the same market.
5. What is 'promotion'? The product is presented to customers through advertising (TV commercials, ..., etc.), packaging (design, ..., etc.), publicity, P.R. and personal selling.
6. What is 'place'? Your product must be available to customers through the most cost-effective channels of ... . A consumer product must be
-offered to ... in suitable retail ..., or available on ... or by ... .
7. What is meant by S.W.O.T.? A firm should be aware of its S ... and W ... and the О ... and T ... it faces in the market place.
8. Why are firms becoming more customer-oriented and less ...? Because new products must be created to meet the changing ... of customers' needs – a firm can't rely on the success of its existing ... of products. The customer and his or her needs must come ...!
Demand for goods and services
As a general rule, when people purchase goods they are customers, when they receive a service they are clients. This distinction between customers and clients is not rigid. Many industries such as hotels and catering, transport, entertainment provide a service, but serve customers.
An important theoretical difference between a customer and a client is that a client receives specialist advice or help which is administered on a personal level. For example, people's social needs are mainly provided for, on a provided for basis, by government services such as education, health and welfare. In addition to public social services there are private organizations, such as those engaged in banking, accountancy, insurance, and legal advice, which provide professional and commercial services for clients.
People's material wants are satisfied by the production of goods.
It is important to realize that organizations themselves act as customers and clients. There are many firms which do not serve the public directly, but are involved in producing goods and services for other organizations. For example, the Government is a customer for computers; private corporations are clients of external auditors. Almost all producers have to buy finished, or partially finished, goods in order to complete a stage of productions. A car manufacturer requires steel plate in order to make car bodies; a farmer requires a tractor to produce grain. Goods which are produced for other producers are referred to as producer goods.
The demand for resources
In addition to producer goods, every organization requires resources in order to produce. Resources, ox factors of production, fall into three categories:
The labour markets
Everyone who can work belongs to at least one labour market. Labour markets range from the demand for labours to the demand for highly skilled people such as doctors and architects.
The main factors which determine to which market or markets a person belongs are education and training, previous experience and personality.
2. Raw materials markets: The natural resources markets
Some of the most important goods in the raw materials markets are natural products, although developments in synthetic products are causing structural changes in the natural product markets. All material products contain natural ingredients, and the demand for these ingredients tends to remain steady throughout the year.
The finance markets
Many organizations require funds to finance production and there are finance markets.
IІ. Make sure that you understand what the following word combinations mean:
Home market, foreign market, overseas markets, common market, to look for a new market, to be in (on) the market, to bring to the market, to find a ready market, market price, to play the market, to raise the market, the market fell, black market, to bring one's eggs (pigs) to the wrong market.
IІI. Complete the sentences with proper words:
Economic growth, export, labour productivity, monopoly, demand, import, production possibilities, investment, market power, labour force.
1. Those output of goods and services that the economy can produce are referred as to its ………. .
2. The existence of a patent or copyright may give the holder a ……. .
3. ……………….. is the ability to alter market outcomes.
4. Goods and services purchased by foreigners are …………………. .
5. Expenditures to a new plant and equipment constitute …………….. .
6. Foreign goods and services purchased by people in our country are …. .
7. Output per unit of labour time is known as …………… .
8. People above the age of 16 who are working or are looking for work make up the …………… .
9. Where is an increase in real output, there is ……….. .
10. The amount of goods or service that consumers are willing and able to buy at a given price is …… .
IV. Choose the best answer.
1. To handle something is:
a) to be involved with;
b) to take care of ;
c) to manage or direct ;
d) to deal with.
2. A sales target is:
a) a number of sales necessary to make a profit;
b) the number of sales that a firm expect to make;
c) a number of sales achieved by a firm in a particular period;
d) the maximum number of sales possible in a particular period.
3. A product line is:
a) a factory system in which products are put together while being carried slowly along the belt;
b) a factory system in which products are put together by computer – driven robots;
c) a group of goods or services offered by a company;
d) a particular service or type of goods offered for sale by a company.
4. A profit center is:
a) a department of a company that tries to find ways of increasing the company's profits;
b) a department of a company whose objective is to make profits;
c) the most profitable of all the activities of a company;
d) income received by a company after its costs have been earned back from sales.
5. Advertising is:
a) the practice for creating a good image for a firm;
b) the practice of creating good relations between a firm and members of the public;
c) a public notice or short film to let people know about product or firm;
d) the practice of creating and showing public notices and short films about products or firms.
6. A programme is:
a) a machine that processes information and does calculations;
b) a group of related plans, activities or products;
c) a sum of money set aside for a particular рифове;
d) a notice or short film about a firm or one of its products.
7. To say something accurate is to say something more:
a) clever;
b) informative;
c) true;
d) interesting.
8. A costing is:
a) the money actually spent on a product;
b) the money calculated as needed when planning a product;
c) a statement of the price that will be charged for a job;
d) a demand for payment of the agreed price for a job.
9. To overprice a product is:
a) to raise the price;
b) to charge too much;
c) to sell so much that demand exceeds supply;
d) to sell so little that supply exceeds demand.
V. Translate into English:
1. Для споживача ринок – це місце, де він може купити товар чи послугу. Для продавця – це місце, де він може їх продати. 2. Існують ринки техніки, автомобілів, одягу. Є також ринки послуг, наприклад, медичного обслуговування, освіти. 3. Кожна нація створює економічну систему, яка б вирішувала, як використовувати ресурси, щоб задовольняти потреби та бажання споживача. 4. Капіталістична економічна система базується на принципах вільного підприємництва, приватної власності та свободи вибору. 5. Конкуренція – це основа ринкової економіки. 6. Багато людей вважають, що конкуренція стимулює ефективність та новаторство. 7. Ринкова сила – це здатність впливати на попит та пропозицію на вільному ринку та на поведінку продавців та споживачів. 8. Монополія – це виключне право виробництва чи торгівлі, яке належить одній особі, певній групі чи державі. 9. Конкуренція відбувається тоді, коли існує декілька фірм, кожна з яких пропонує свою систему маркетингу. 10. Прибуток – це різниця між доходами та витратами.
MARKETING: HOW ORGANISATIONS INFLUENCE AND SATISFY DEMAND
Selling goods and services in a competitive market is a risky business: a firm's price can be undercut, the market can be flooded with imported products, many goods are perishable and have to be sold quickly, new competitive products can appear on the market without warning, and so on. The main aim of marketing is to reduce the risks in selling goods and services, and there are several ways in which an organization can try to eliminate some of the risks:
1. Undertake market research to identify the wants and needs of potential customers.
2. Design advertising and publicity literature communicate with clients and customers.
3. Employ forecasting technique to predict changes in the composition of the market and to help the firm plan for change.
4. Monitor the activities of competitors in order to learn of changes in their prices or design or other changes in their marketing strategy.
5. Assist in the research and development of new products.