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The Language of Marketing and Advertising
Conf. univ. dr. Cristina Prelipceanu
An universitar 2006 – 2007
Syllabus Lecture1 The marketing concept Lecture 2 Market research Lecture 3 Consumer behaviour – its cultural dimension Lecture 4 The marketing mix Lecture 5 The promotional mix Lecture 6 Trends in advertising Lecture 7 Present-day trends in marketing Case studies Readings Glossary Appendix
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ACADEMY OF ECONOMIC STUDIES FACULTY OF INTERNATIONAL BUSINESS AND ECONOMICS MASTER OF BUSINESS COMMUNICATION IN FOREIGN LANGUAGES University year 2006 – 2007 Subject: The Language of Marketing and Advertising Time allotment: 7 lectures (14 hours) Number of academic credits: 4 Course leader: associate professor Cristina Prelipceanu, Ph. D. 1. Course objective: presenting the most important concepts and language aspects in marketing and advertising supported by practical examples and case studies; improving communication skills in the field; raising awareness to cross-cultural aspects and problems. 2. Course outline: Dates 1. 2. 3. 4. 5. 6. 7. Course content Defining marketing; the marketing concept; principles; the marketing environment, its characteristics Market research; market research instruments; marketing information systems Consumer behaviour; its cultural dimension; cross-cultural problems The marketing mix; the four P’s; the international marketing mix The promotion mix: advertising, public relations, personal selling and sales promotion Trends in advertising; standardization vs. modification, global advertising, pattern advertising; creative challenges – cross cultural aspects Present-day trends in marketing: green marketing, marketing ethics, etc.
3. Course requirements and final grading:
• Seminar assignment (participation in debates or a case study) 40% • Final individual examination 50% • Course and seminar participation 10%
4. Bibliography Anghel, L. Balaure, V. (coord.) Bennett, P. (ed) Cateora, Ph. Comfort, J., Brieger, N. Cotton, D. et al Cotton, D., Robbins, S. Dayan, A. et al - Business to Business, Bucureşti, Uranus, 2002 - Marketing, Bucureşti, Uranus, 2000 - Dictionary of Marketing Terms, 2nd ed., AMA, 1995 – International Marketing, Illinois, Irwin, 1987 - Marketing, New York, Prentice Hall, 1992 - Market Leader – Course Book, Harlow, Longman, 2000 - Business Class, Harlow, Longman, 2000 - Engleza pentru marketing şi publicitate, Bucureşti, Teora, 2000
Gauster. Levinson. G. L. R. 1982 . Powell. V. Prentice Hall. Rein.Guerilla Advertising.Marketing . Language Teaching Publications.Dicţionar de Marketing. Prentice Hall. Prentice Hall. Business Tech International. 2000 -Business Case Studies.Marketingul serviciilor. 1997 . Regents Publishing Company .English for Professionals.Management and Marketing. Ch. J.New International Business English. Bucureşti. Rein. Uranus..xxx Frone.Cambridge.CUP. Kotler. 1997 .1990 -The Language of Marketing in English. D. Olteanu. New York. Universitätsverlag. Cambridge. Mackenzie. International Communication Agency. Bucureşti. Bucureşti. 2002 . New York. A. Washington. 1999 . D. I. C. Armstrong. LT Publications. St John. P.Business Matters.Marketing Management. 1982 . . New Jersey.Study Guide to English Lecture – Introduction to International Trade and Marketing. P. Prentice – Hall.The Language of Advertising and Merchandising in English. 1996 . 1988 . Hugget. M. Bucureşti. CUP. Nemira. Alexander. Kotler.Principles of Marketing. M 4 .R Jenkins-Murphy. F.Advertising and the Promotion Industry.Marketing – Ghid propus de The Economist. Hove. 1988 .. 1994 Viena. Oscar Print. 1996 . Jones. 1996 .
The marketing concept An organization will achieve its goals only by determining the needs and wants of target markets and then delivering the desired satisfactions of these wants and needs more effectively and efficiently than competitors do. goods and services to create exchanges that satisfy individual and organizational goals (AMA . What is marketing? 1. companies must pay attention to customer wants and needs. With all the competition and choices the consumer has today in a society/economy with free or open competition. which marketing may help to achieve.had the original meaning of bringing what one wants to sell or exchange to a market. The marketing era . "markets" itself to get more visitors. Companies emphasized selling their products. Marketing is the business function that: 5 .Marketing is getting the right goods and services to the right people at the right place at the right time with the right communication and promotion.Marketing is the process of planning and executing the conception. . 3. A buyer's market . This is the concept most organizations use today. It also has its own unique corporate objectives.2. or to sell it. Most organizations today follow the marketing concept.1. There are many definitions of marketing. 2. .demand exceeded supply. The production era . People were simply happy to be able to buy the products. .Marketing is the performance of business activities that direct the flow of goods and services from producer to use. to earn money with shirts. The sales era . Many people today misuse the word marketing to equal selling. As we will discuss. . for example. etc. Every organization has its own way to market itself and its products.LECTURE 1 THE MARKETING CONCEPT Marketing . cards. 2. Marketing has evolved over the years: 1. 1. Companies focused on better ways to produce goods.supply exceeds demand. promotion.the period from about 1930 to 1950's. such as: . pricing. A seller's market . ties. The Museum of Art History.It is the social and managerial process by which individuals and groups get what they need and want through creating and exchanging products and value with others (Kotler). Advertising took on special importance.The American Marketing Association) Each of the above is certainly a true definition.the period from the Industrial Revolution (18th Century) to the late 1920's. and distribution of ideas.the period that began in the 1950's and continues today.Marketing is the creation and delivery of a standard of living. marketing = sales + (sales plus more) 1.
Regardless of the way you choose to view needs and wants. pencils.identifies customers' needs and wants . But you might have to convince people to visit your island paradise. through new or enhanced products.. and other attractions. and because they don't really need your product. and you're willing to pay the retail price to own them. The shoes are valuable to you. business plans. travel agents can't physically display the product because travel is intangible. you make the fundamental marketing exchange: giving value (money) to get something of value (the benefits provided by shoes). because customers have needs and wants they are trying to fulfil and companies produce the goods and services to meet them. you need to wear shoes. and through various ways of distributing products. Marketing environment 6 . You don't have to convince most people to eat. 4. on the other hand. fictional characters and plots. Ideas include musical compositions and lyrics. marketing does not involve the art of selling what you make as much as it does knowing what to make.designs appropriate products. then. water. Religious and political beliefs are also ideas. For example. might be a desire for a stereo system or for a trip to the Cayman Islands. computer software. Evangelists try to sell you on salvation. when a university markets its educational service to students. Because of this.determines which target markets the organization can serve best . Some marketers consider wants as specific fulfilment of general needs. the food and music. 3. and tax preparation are services. or shelter. or physical items. Marketers of intangibles must convey the product's benefits without a physical example of the product. Likewise. Housekeeping. A want. it may emphasize the quality of its faculty and the prestige of earning a degree from that particular school. and other creative works. Services and ideas. its beautiful beaches and sunsets. is to convert your general need for shoes into a specific want for a certain brand. But you can't test to drive a movie. The marketer's challenge is to influence the customer's needs and wants through pricing and promotion. you'll have to persuade them to buy it. This means you can touch. A product is anything customers will exchange something of value for. A need represents some fundamental requirement for continuing our lives. Note that to a great extent. remember that you must always appeal to the customer's motivation for considering your type of product in the first place. Needs and wants Marketing exchanges work. hairstyling. visual images. 5. (2) services. and political groups market ideas ranging from animal right to anarchy. Some people might think it would be boring or too expensive or too hot. the basic motivation is already there. Publishers and broadcasters also provide a service when they sell advertising space and time. are intangible products . Clothing. but you may or may not want to purchase Nikes or Reeboks to meet that need. describe the island's friendly residents. however. service and programs to serve these markets . It's easy to show people the attractive appearance of a blouse or the smooth drive of a car. They can. When you buy a pair of Nike shoes. To sell a vacation package. for example.calls upon everyone in the organization to "think and serve customers" ("The customer is the king"). usually because it satisfies a need or a want. on the other hand. Bicycles and books are goods. tangible and intangible products usually demand different marketing approaches. such as food. The exchange process A central part of any definition of marketing is the exchange. which is giving something of value in return for something of value. see. Marketers divide products into three categories: (1) goods. carrots. or otherwise sense them. in part. and (3) ideas. The focus of the shoe company's marketing program. Alternative approaches include promoting campus size or beauty and the help the school offers graduates who are hunting for jobs. or activities that provide some value to the recipient. or concepts that provide intellectual or spiritual benefits to the customer. It's important to understand whether your product fulfils a need or a want because the way the two types of products are marketed can be quite different.they don't have a physical dimension. measure. and other goods are tangible products.
New products make some existing products obsolete (compact disks are replacing audiotapes). and recovery. 2. They create new goods (the satellite dish) and services (home television shopping). social-cultural. legislation on the use of cell phones in cars. and many of them change our values and lifestyles. In other words. buying. for example. Political activities. decisions and strategies are not determined unilaterally by the business. Political and legal environment. congressional hearings on tobacco. New technologies affect marketing in several ways. Social and cultural environment. E-commerce activities are changing because of expected increases in federal and state taxes for sales on the Internet. Each marketing programme seeks to make its product the most attractive. for example. they are strongly influenced by powerful outside forces. which typically features a pattern of transition from periods of prosperity to recession to recovery (return to prosperity). marketing managers try to maintain favourable political-legal environments. and competitive environments. they influence every marketer's plans for product offerings. More people are working in home offices. For example. they must monitor the general business cycle. and enactment of the Clean Air Act have substantially determined the destinies of entire industries. consumer spending increases as consumer confidence in economic conditions grows during periods of prosperity. marketers are concerned with inflation. In turn. and governments. The need to recognize social values stimulates marketers to take fresh looks at the ways they conduct their business by developing and promoting new products for both consumers and industrial customers. If you were starting your own small business (say. In a competitive environment. New communications technologies have blazed entirely new paths for marketers to travel. Economic conditions determine spending patterns by consumers. recession. economic. Cellular phones. interest rates. marketing a consumer good that you already know something about). marketers must convince buyers that they purchase their products rather than those of some other seller. and the growing recognition of cultural diversity continues. Any marketing program must recognize the outside factors that comprise a company's external environment. the number of singleparent families is increasing. pricing. Technological environment. Economic environment. businesses. every dollar spent on one product is no longer available for other purchases. Why has the marketing concept changed with the passage of time? 3. Not surprisingly. Because both consumers and commercial buyers have limited resources. which of the forces in the external marketing environment would you believe to have the greatest potential impact on your success? 7 . they often stimulate new goods and service not directly related to the new technology itself. Thus. and even distributing products from your own home to customers around the world.Marketing plans. technological. Rather. provides a new medium for selling. To help shape their company's futures. both foreign and domestic. Internet accessibility. Competitive environment. not only facilitate business communication but free up time for recreation and leisure. Provide your own definition of marketing and give your reasons why you think it is more appropriate. food preferences and physical activities reflect the growing concern for healthful lifestyle. DISCUSSION POINTS 1. when unemployment rises and purchasing power declines. and promotional strategies. have profound effects on business. Among the more significant economic variables. Spending decreases during low-growth periods. We describe five of these environmental factors: the political-legal. violent crimes are on the decrease.
LECTURE 2 MARKETING RESEARCH "To manage a business well is to manage its future; and to manage its future, is to manage information" Ph. Kotler 1. Marketing research provides many of the answers a marketer must have to develop and apply marketing strategies. The purpose of marketing research is to provide the most accurate and reliable data possible within the limits imposed by time, cost, and the present state of the art. Marketing research is the systematic gathering, recording and analysing of data to provide information useful in marketing decision making. Marketing research is very important both for product development and design. The need for thorough information in international marketing is as important as in domestic marketing. The tools and techniques for research remain the same, but the environments within which they are applied are different, this creating difficulties. A basic difference between domestic and international marketing research is the broader scope necessary for foreign research. 2. Who conducts marketing research? For whom? 2.1. Kotler defines the marketing information system (M.I.S.) as a continuing and interacting structure of people, equipment and procedures to gather, sort, analyse, evaluate and distribute pertinent, time-by and accurate information for use by marketing decision markers to improve their marketing, planning, execution and control. The system: ▪ interacts with information user to assess his needs ▪ develop the needed information through internal records, marketing intelligence and market research activities ▪ processes and evaluates the information ▪ distributes information to managers in the right form and at the right time to help them in marketing planning, execution and control. 2.2. Market research staff. Larger companies have at least a market research director and more people on a market research staff that usually serve as internal consultants to other members of the marketing department to help them design their market research work. To support this effort, the market research director or the marketing manager may hire a market research agency on a consultant basis. 3. The research process A key to successful research is a systematic and orderly approach to the collection and analysis of data. The research process should always proceed along the following steps: 1. Define the research problem and establish research objectives 2. Determine the sources of information to fulfil the research objectives 3. Gather the data from secondary and/or primary sources 4. Analyse, interpret, and present the results The researcher's task is to execute all these steps with maximum objectivity and accuracy. 3.1. Defining the problem and establishing specific research objectives is often difficult because it requires translating the business problem into a research problem. This step is even more critical in foreign markets as an unfamiliar environment tends to blur the real problem (s). The researcher should also set limits broad enough to include all relevant variables. 3.2. Sources of information. The information may come from primary research or field research and from secondary research.
3.2.1. Research is done 'first hand' for a particular project. Usually field research is conducted to find out what customers think by asking them directly. Some methods of primary research: ▪ interviews (survey) by telephone, in person or in writing (questionnaires) ▪ observation ▪ consumer panel ▪ focus group ▪ pretest (sample and check periodically) ▪ ghost shopper or mystery shopper (retailers have unidentified people make purchases at their own store and/or competitors’ to see how customers are treated) The most significant factor affecting the success of a survey is the willingness of the respondent to provide the desired information, or the ability to articulate what he or she knows, that is the ability of the researcher to get an unwilling respondent to provide correct information. Consumer attitudes about providing information to a researcher are culturally conditioned. Foreign market information surveys must be carefully designed to elicit data and at the same time not offend the respondent's sense of privacy. 3.2.2. Secondary research data. This is information available from published reference sources. For almost any marketing research project, an analysis of available secondary information is a useful and inexpensive first step. Although there are information gaps, particularly for detailed market information, the situation on data availability and reliability has improved. Industrial marketing in USA, the Standard Industrial classification (SIC) system contains 79 major groups and 976 detailed industry categories, which are combined with detailed breakdown from the US Government Census of Manufacturers and County Business Patterns. Through the SIC system, one can purchase mailing lists for each industry category with information on every company and the name of its purchasing agent. One can start up a direct mail campaign with product brochures and samples for companies on the list. Private publications are also useful, such as many Dun and Bradstreet publications (USA). These provide financial statistics and information on the companies' products. Credit inquiry firms - also known as credit bureaus - provide books or on-line data service whereby subscribers are able to find information on an individual company or on companies by SIC code or a variation of SIC. Perhaps the most useful secondary information is competitors' brochures and catalogues, annual reports and any other information noticed in the general and trade press. Market studies can be: a) "off-the-shelf"/off-the-peg options (using existing data rather than a fresh investigation of a market also called desk research); b) "made-to-order" options. The leading international market research companies are: A.C.Nielsen, part of Dun+Bradstreet Corporation and Information Resources. Inc. (IRI). 3.3. After developing meaningful sources of information, the problem is not a lack of information, but too much information. Some information may conflict - which information to rely on? Therefore, the final steps are the analysis and interpretation of findings in the light of the research problem. Both secondary and primary data collected by the market researcher are subject to many limitations. In any final analysis, the researcher must take into considerations these factors and, despite their limitations, produce meaningful guides for management. The meaning of words, the consumer's attitude toward a product, the interviewer's attitude, or the interview situation can distort research findings. Culture and tradition may influence the willingness to give information, as well as the information given. Accepting information at face value is an imprudent practice. Newspaper circulation figures and sales volume can be distorted through local business practice. To cope with such disparities, the domestic and the foreign market researcher must possess three talents to generate meaningful marketing information: ▪ a high degree of cultural understanding of the market in which research is being conducted ▪ a creative talent for adapting research findings even if they conflict with popular opinion or prior assumptions ▪ a skeptical attitude in handling both primary and secondary data.
DISCUSSION POINTS 1. Discuss the scope of marketing research. Why is international marketing research generally broader in scope than domestic marketing research? 2. The measure of a competent researcher is the ability to use the most sophisticated and adequate techniques and methods available within the limits of time, cost, and present state of the art. Comment. 3. Discuss the stages of the research process in relation to the problems encountered. 4. What are some problems created by language in collecting primary data? 5. Select a country. From secondary sources compile the following information for at least a 10-year period: ▪ main imports ▪ main exports ▪ GDP and GNP ▪ chief of state ▪ major cities and population ▪ principal agricultural crop
Cultural knowledge There are two classifications of knowledge about cultures a marketer must possess in order to cope with a different culture. and any other capabilities and habits acquired by humans as members of society. their complete design for living" . an ability to understand and to appreciate fully the nuances of different cultural traits and patterns. laws. evaluated. Markets are the result of the triune interaction of a marketer's efforts. If you consider for a moment the scope of the marketing concept . the understanding of one's role in society. the market? When a promotional message is written. perhaps the most important steps toward cultural empathy and objectivity are the recognition of the need for empathy and the acquisition of knowledge of a culture. Different meanings of colour. and other traits indigenous to a culture are facts that a marketer can anticipate. uses. economic conditions. Culture and its elements A point of departure in the study of cultural dynamics for assessing world markets is a brief discussion of the concept of culture. especially if these frames of reference are strictly different from their own culture. resistance.2. mould. In fact. Further. Markets and market behaviour are part of a country's culture.1. promotion. The marketer's efforts are judged in a cultural context for acceptance. 1. they are not static but change. and the manner in which they satisfy them are functions of their culture which temper. packaging. and appreciated. To many. customs. they become (change). The other is interpretative knowledge.it becomes apparent that the marketer must be a student of culture. One is factual knowledge about a culture that is usually obvious and must be learned. and styling . study. different taster. but they are also acting as agents of change whenever the product or idea being marketed is innovative. symbols recognizable and meaningful to the market (the culture) must be used. One cannot truly understand how markets evolve or how they react to a marketer's effort without appreciating that markets are a result of culture. product. it is pertinent to the study of marketing. marketers may find it necessary to investigate the assumption on which they base their judgements.e. morals. Markets are dynamic not only in response to economic change but also in response to changes in other aspects of the culture as well. Cultural empathy must be cultivated. expanding and contracting in response to cultural change. acceptable to the present society) if they are to be operative and meaningful. Markets are living phenomena. and all other elements of the culture. economic conditions. channels of distribution. The marketer's frame of reference must be that markets are not (static). and meanings of life illustrate aspects of a culture that can differ considerably from one culture to another and which require more than factual knowledge to be fully appreciated. especially foreign marketing. and contract in response to marketing effort. and other related marketing activities must be made culturally acceptable (i. or rejection. ITS CULTURAL DIMENSION 1. culture is pervasive in all marketing activities .. Whatever the degree of acceptance in whatever level of culture.the sum total of knowledge. Marketers are constantly in the process of adjusting their efforts to cultural demands of the market. Culture is the "distinctive way of life of a group of people.the satisfaction of consumer needs and wants at a profit . The meaning of time. beliefs. the term culture implies a value judgement of another's way of 11 .and the marketer's efforts actually become a part of the fabric of culture. and dictate their style of living. When designing a product. art. 1. the style. The successful foreign marketer must become culturally sensitive . The cultural dimension of consumer behaviour The manner in which people consume. attitudes toward other people and certain objects. How such efforts interact with a culture determines the degree of success of failure of the marketing effort.in pricing.mosaic of human life. expand. the use of something new is the beginning of cultural change and the marketer becomes a change agent. Culture is the human-made part of human environment . and learn.attuned to the nuances of culture so the other culture can be objectively seen. Since culture deals with a group's design for living. and other cultural influences.LECTURE 3 CONSUMER BEHAVIOUR. What is constantly being dealt with when operating as a marketer but the culture of the people. the priority of needs and the wants they attempt to satisfy.
Culture exists in New York. It is imperative for foreign marketers to learn the intricacies of cultures different from their own if they are to be effective in a foreign market. Historians often use culture to mean those specific features of a civilization in which one society may have excelled. Furthermore. Electrical appliances will sell in England or France but have few buyers in countries where less than 1 percent of the homes have electricity. as well as the means of production of these goods and their distribution. They are: 1. To implement this goal. there has evolved a cultural scheme that defines the part of culture. the difference being that the cultured person has acquired a certain ability in specialized fields of knowledge . the same thoroughness is necessary if the marketing consequences of cultural differences within a foreign market are to be accurately assessed.life. For the marketer. and dance 5. Human and the universe Belief systems 4. For the foreign marketer. Culture includes every part of life. 1. these meanings of culture are much too narrow. technology and economics. or the aborigines of Australia. Technology includes the techniques used in the creation of material goods. it is the technical know-how possessed by the people of a society. The marketing implications of the material culture of a country are obviously many. or social manners. Since the dimensions of culture influence the marketing process. because we automatically react to many of these factors in our native culture. All the elements are instrumental to some extent in the success or failure of a marketing effort since they constitute the environment within which the marketer operates. Aesthetics Graphic and plastic arts Folklore Music. from work rhythms to the learning of familiar rules". we must purposely learn them in another. the South Sea Islanders. The student of foreign marketing should approach an understanding of culture from the viewpoint of the anthropologist. Finally."the totality of the knowledge and practices. A brief examination of these elements will illustrate the variety of ways marketing and culture are interwoven. and Moscow just as it does among the Navahos. or literature plus good manners. drama. Social institutions Social organization Education Political structures 3. Material culture affects the level of demand. it is necessary to study the implications of the differences of each one in any analysis of a specific foreign market. Greek culture is associated with its art and literature. and their functional features. Material culture Material culture is divided into two parts. the quality and types of products demanded. both intellectual and material of society … [it] embraces everything from food to dress. music. these are the factors with which marketing efforts interact and that are basic in the understanding of the character of the marketing system of any society. from forms of politeness to mass media. knowledge. London.1.usually in art. total picture is to emerge.2. for example. A person is either cultured or uncultured. A place to begin is a careful study of the elements of culture. from household techniques to industrial techniques. 12 . Every group of people or society has a culture since culture is the entire social heritage of the human race . Elements of culture The anthropologist studying culture as a science must investigate every aspect of a culture as an accurate. Material culture Technology Economics 2. Language Foreign marketers may find such a cultural scheme a useful framework in evaluating a marketing plan or in studying the potential of foreign markets. The scope of the term culture to the anthropologist is illustrated by the elements included within the meaning of the term.
offensive. The position of men and women in society. or just plain ridiculous. Advertising copywriters should be concerned less with obvious differences between languages and more with the idiomatic meanings expressed. as must advertisements and package design. for example. and their related power structures. Pepsi's familiar "Come alive with Pepsi" translated into German conveyed the idea of coming alive from the grave. Schweppes was not pleased with its tonic water translation into Italian: "Il Water". Superstition plays a much larger role in a society's belief system in some parts of the world. 1. "Cue". it is more effective to aim a promotional campaign at the family unit than at an individual family member. values. Social institutions Social organization. colour.3. conventional forms of printed promotion cannot be used successfully. that the translation's literal meaning was 'female horse fattened with wax'. Aesthetics are of particular interest to the marketer because of their role in interpreting the symbolic meanings of various methods of artistic expression. It was discovered later. Closely interwoven with the effect of people and the universe are a culture's aesthetics. a whole host of marketing problems can arise. hardly the image the company sought to portray". the products they buy. Carelessly translated advertising statements not only lose their intended meaning but can suggest something very different including something obscene. Legal structures differ.1. Travel advertising in culturally divided Canada pictures a wife alone for the English audience but a man and wife together for the French segments of the population since the French are traditionally more closely bound by family ties. and age groups are interpreted differently within every culture. teach acceptable behaviour to succeeding generations.2. The successful marketer must achieve expert communication.5. Aesthetics. and seldom will the dictionary translation suffice. superstitions. language may be one of the most difficult to master. more radio and movie advertising are employed in promotional strategy. therefore. and standards of beauty in each culture.4. and dance. Each institution has an effect on marketing because each influences behaviour. Without a culturally correct interpretation of a country' aesthetic values. Humanity and the Universe. however. render marketing efforts ineffective. and govern themselves. foreign 13 . A dictionary translation is not the same as an idiomatic interpretation. The poster of an engineering company at a Russian Trade Show did not mean to promise that its oil well completion equipment was dandy for "improving a person's sex life". The intent of a major fountain pen company advertising in Latin America suffered in translation when the new ink was promoted to "help prevent unwanted pregnancies". this requires a thorough understanding of the language as well as the ability to speak it.e. In culture where the social organizations result in close-knit family units. The impact of religion on the value systems of a society and the effect of value systems on marketing must not be underestimated. in French-speaking countries. Insensitivity to aesthetic values can offend. again not the intention of the original statement. group behaviour. drama. In countries with low literacy rates. i. For example. too. Within this category are religion. 1. (The name is the game) The importance of understanding the language of a country cannot be overestimated. social classes. and political structures are concerned with the ways in which people relate to one another. and. was a crude slang expression for derierre. organize their activities in order to live in harmony with one another. certain business activities permitted in some European countries are forbidden in others. Religion has considerable influence on people's habits. the arts.. and the overall patterns of life. in general. Of all cultural elements a marketer should study to gain some degree of empathy. folklore. Product styling must be aesthetically pleasing to be successful. their outlook on life. Many believe that to appreciate fully the true meaning of a language it is necessary to live with the language for years. the trademark toothpaste brand name. Whether or not this is the case. the family. Tshe uniqueness of a culture can be spotted quickly in symbols having distinct meanings. The social institution of education affects literacy which affects marketing promotion.2. the way they buy them. music. education. belief systems.2. create a negative impression. even the newspaper they read. "A national producer of soft drinks had the company's brand name impressed in Chinese characters which were phonetically accurate. Language.2.2. 1. idiomatically means the bathroom. Certain types of political institutions hinder development of marketing organizations as well as the marketing of politically vulnerable products.
Determine characteristic behaviour patterns: What patterns are characteristic of purchasing behaviour? What forms of division of labour exist within the family structure? How frequently are products of this type purchased? What size packages are normally purchased? Do any of these characteristic behaviours conflict with behaviour expected for this product? How strongly ingrained are the behaviour patterns that conflict with those needed for distribution of this product? 3. not a group of unrelated elements. 5ZH ED. and so on that relate to this product? Does this product connote attributes that are in conflict with these cultural values? Can conflicts with values be avoided by changing the product? Are there positive values in this culture with which the product can be identified? 4. it should not be forgotten that culture is a total picture. Until a marketer can master the vernacular. family relations. it is advisable to consider the elements of the culture and evaluate each in light of how it could affect a proposed marketing program. EXIBIT: Outline of Crosscultural Analysis of Consumer Behaviour 1. Consumer behaviour. through promotion. as a means of overcoming the problem. the need for studying the total culture is certainly less crucial than for the marketer involved in total marketing . III: Dryden Press.. As a broad generalization. Miniard. p. Determine what broad cultural values are relevant to this product: Are there strong values about work. the aid of a national within the foreign country should be enlisted. 399. Roger D. 1986). or illustrations are taboo? What language problems exist in present markets that cannot be translated into this culture? Are such salesmen available? 6. morality. and Paul W. One authority suggests a cultural translator. others may be totally involved. F. (Hinsdale. among different cultures. Determine appropriate institutions for this product in the minds of the consumers: What types of retailers and intermediary institutions are available? What services do these institutions offer that are expected by the consumer? What alternatives are available for obtaining service needed for the product but not offered by existing institutions? How are various types of retailers regarded by consumers? Will change in distribution structure be readily accepted? SOURCE: James. Blackwell. If a company is simply marketing an existing product in an already developed market. religion.from product development. Determine characteristic form of decision making: Do members of the culture display a studied approach to decisions concerning innovations or an impulsive approach? What is the form of the decision process? Upon what information sources do members of the culture rely? Do members of the culture tend to be rigid or flexible in the acceptance of new ideas? What criteria do they use in evaluating alternatives? 5.marketers should never take it for granted that they are effectively communicating in another language. words. While the analysis of each cultural element vis-à-vis a marketing program is a practical approach to ensure that each facet of a culture is included. it could be said that the more complete the marketing involvement or the more unique the product. a person who translates not only among languages but also among different ways of thinking. Culture cannot be divided into separate parts and be fully understood. In an analysis of potential market. the more need there is for a thorough study of each cultural element. 14 . to the final selling. Determine relevant motivations in the culture: What needs are fulfilled with this product in the minds of members of the culture? How are these needs presently fulfilled? Do members of this culture readily recognize these needs? 2. even the problem of effective communications may still exist. The exibit below illustrates one approach to crosscultural analysis of consumer behaviour which should identify those aspects of a culture that are critical in developing an effective marketing strategy. Although some may not have a direct impact. Engel. Evaluate promotion methods appropriate to the culture: What role does advertising occupy in the culture? What themes.
Quark used a high-resolution printer. trapezists. the next step is to create the marketing mix. which is a set of four elements: product. and other tangible and intangible components. For example. they should be intimately involved with the process to make sure customers' needs will be met. Although marketing people usually don't design or manufacture products. To meet the high Japanese standards for print quality. and laces. Product Products are integral to the exchange process. And identifying these needs is sometime a daunting task. The company worked with its Japanese distributor to develop software that could accommodate the Japanese style of writing not only horizontally across the page but top-to-bottom as well. Cirque is careful not to make the production too adult. and as products start to look more and more alike. marketers think about the marketing mix in the context of their overall business environment. you get more than leather. there is no marketing. Product development is an intriguing aspect of the marketing job because you get involved with so many aspects of the total business operation. However. without them. A powerful component of the marketing mix. but it can't decide what the pollution control laws will be or what competitors will do. and there are plenty of special effects and colourful costumes. and manufacturing. package design. Like its competitors. when you buy a pair of Nike shoes endorsed by basketball star Michael Jordan. As competition in many industries grows more intense. You buy a little piece of the Michael Jordan image. dancers. these extra features and benefits become important criteria for customers deciding which product to buy. and create an image of good value. The product can also handle thousands of the kanji characters used in written Japanese. You have a lot of control over the elements in your marketing mix. Because of the amount of influence these external forces have. a product can be a good. and gymnasts. the amount a firm charges for its product. Developing products that meet the needs of target markets is also important for marketers of intangibles. 2. A low price can take sales away from competitors. Cirque uses clowns. acrobats. The marketing department often becomes the focal point for information flowing from customers back to the people doing the actual design work. The result was a product tailored to the needs of Japan's emerging desktop publishing market. Temporary price reductions help movie theatres shift demand from busy 15 . price. a high price helps build an exclusive image for a product. Cirque's shows have plots that adults can relate to. As pointed out earlier. manuals. or an idea. finance. and promotion. The product needed to be compatible with the Japanese language. services. a Canadian circus that tailors its productions for adults. price is often expected to do more than just generate revenue. including sales. An example of intangible-product development and target marketing comes from Cirque du Soleil. research and development. distribution. 1. installation. For example. Astute marketers realize that a product is actually a "bundle of value" that meets customers' expectations. The final product is a sophisticated production that children and their parents can both enjoy. For example. It can include consulting. customers most other circuses ignore. when developing desktop publishing software for the Japanese market Quark faced many unfamiliar customer requirements.LECTURE 4 THE MARKETING MIX Once you've identified your target market. Porche can decide which cars it will make. but you have very little control over the environment in which you're operating. such as the story of a insurance salesman who magically becomes a ringmaster. For example. The value that companies deliver to their customers often encompasses more than just the basic product. training. Price The second element of the marketing mix is price. a service. Carefully managed prices help airlines keep a certain percentage of passengers in the more expensive business and first-class seats. and it had to meet Japanese printing standards. rubber. increase overall demand in a market.
Pricing and product image are closely related. Herth. It began selling its product in volume to organizations such as Coca-Cola. A poorly conceived distribution strategy can spell disaster. Promotion The final element of the marketing mix is promotion. an English computer and consumer electronics company. which are the people and organizations. When Etak first went to market with its innovative electronic roadmap in the mid . Customers won't buy the product if they don't believe it's worth the price. You are certainly aware of advertising. used their own sales forces in addition to dealers. The same approach can be used to position a relatively inexpensive product at the high end of its category. some of those dealers felt so betrayed that they stopped pushing the manufacturer's products. underpricing can also happen by accident. In so doing. and to put the finished goods in customer's hands. on everything from TV to T-shirts. which limits your flexibility. but products may be priced at a loss. processing orders. This involves the selection of marketing channels. Managing product transportation and storage. To start with. to convert them into products. the firm's founder. from black-and-white financial analysis to complex and uncertain buyer emotions. Customers will pay a higher price for a well-known. well-regarded product. you are exposed to hundreds of advertising messages every day. however. Alan Sugar. If the same grape juice were packaged in two bottles.1980s. Personal selling plays a big role in many major purchases. One objective of such a strategy could be to build market acceptance for the product. Some marketers of luxury products even advertise their high prices. taking business away from the dealers. 3. has summarized the Amstrad philosophy as "pile 'em high sell' em cheap". it made the mistake of trying to sell the $1. High prices can help create a top-of-the-line image. 4. The main categories of promotion are advertising. ranging from automobiles to airliners. Regulatory commissions preside over utility rates. including press conferences and support 16 . including wholesalers and retailers. as well as materials and equipment that may be required. Compaq Computer Corporation has been successful with a distribution strategy that seemed out of place when the microcomputer market was first emerging. personal selling. A Piaget ad campaign touted the product as "the most expensive watch in the world". Compaq purposely and consistently made all sales through its authorized dealers. Service providers need to track the amount of time it takes to perform services. one with a generic label and one with the Welch's label. FritoLay. it earned the respect and loyalty of the dealers. a channel that is now crucial to successful microcomputer marketing. sell on price. focusing on the industrial market. Most of its competitors. in contrast. A manufacturer must also consider its costs to buy raw materials. Distribution/Placing The third marketing mix component. the firm sold only through dealers. For some marketers. Companies that vigorously promote their low price are typically out to undercut the competition with lower prices while keeping operating costs at a minimum. And you have to offer something really special if your prices are significantly higher than those of the competition. partly because of the image created through advertising and other promotions. and keeping track of finished-product inventory are also distribution activities. The thought process behind pricing covers a wide spectrum. distribution. Marketers use public relations in a variety of ways. and The Los Angeles Times. Setting prices is one of the most difficult tasks facing the marketing professional. refers to the methods used to move products from the producer to the customer. which encompasses a wide variety of techniques you can use to communicate with your target market. who help get products to customers. and the government limits marketer's authority over their own product prices. public relations. . The strategy flopped because the product's sophistication and price didn't mesh with the distribution channel. Etak Finally retrenched. L'Oreal promotes its Preference hair products by emphasizing their high price. low price is the focal point of the marketing strategy.times of the week to slower times. Meanwhile. Amstrad. competitors and customer expectation can put a ceiling on the range of possible prices. Eventually the competitor's aggressive direct-sales reps started selling to big corporate customers.430 product to consumers through car-stereo shops. A product's price usually covers these costs. the latter could command a higher price. By 1988 the new strategy had helped propel the company into profitability for the first time. From its founding. and sales promotion. Government regulation and ethical standards also affect pricing decisions.
Meanwhile. Industrial marketers may advertise in a range of specialized and general-interest business magazines. and other important audiences. Each method has advantages and disadvantages. employees. Compaq. When Black & Decker wanted to reach younger consumers. which leads to a lot of personal selling in such markets. to advertise its image as a good corporate citizen. building-supplies marketers advertise their products in Professional Builder. Industrial marketers also rely heavily on promotion. and free sessions – are elements of promotion. For example. For instance. All of these activities – sales calls. a 17 . For example.for cultural events. The MontyGroup. Kellogg’s first advertising campaign for the cereal relied heavily on health-conscious “life-style magazines” rather than on the company’s traditional use of television. Some group therapists even offer prospective patients a free trial session. On the other hand. the same company might choose TV programs like “Nightline” and publications such as Business Week and The Wall Street Journal. General Mills might use a press tour featuring a home economist spokesperson. complex products and systems. 4. coupons. coupons. To reach potential buyers. Common promotional techniques Category Advertising Example Radio Television Internet Billboards Stadium signs Coupons Sweepstakes Frequent flyer programs Free samples Press conference Press releases Sponsorship of sporting events Corporate sales Door-to-door sales Telemarketing Seminars Sales promotion Public relations Personal selling Marketers can choose from a range of promotional vehicles to reach various audiences. Building Design & Construction. Marketers’ selection of advertising media reflects their overall promotional strategy for a product. Marketers combine the various elements of promotion to effectively communicate aspects of their companies and products to customers. For expensive. it advertised on the late-night television programs they are known to watch. you’ll want to use more than one method. a dealer sales-incentive contest. close interaction between buyer and seller is often required. and free samples are some of the techniques that fall into this category. the promotional strategy for a new cake mix from General Mills might include such diverse elements as advertising. In the service area. in many cases. Qualified Remodeler. and a score of other magazines. advertising. A machine tool marketer can use magazine advertising. a consumer sweepstakes. IBM. Advertising is any form of paid nonpersonal communication used by an identified sponsor to persuade or inform potential buyers about a product. trade shows. shareholders. and premium in every box of product. Advertising. Apple. and other computer suppliers combine extensive personal selling with advertising and public relation. Marketers in many other industries enjoy a similar range of media options. And sales promotion is a major force in marketing today.1. Nike might rely heavily on the endorsement of a popular professional athlete to promote a new shoe in television commercials. rebates. Others use direct-mail advertising to bring themselves to the attention of divorce lawyers and thus gain patient referrals. to create an image for Nutri-Grain as a health-enchancing product. and press releases to promote products. some family therapists use personal selling to get on the referral lists of health maintenance organizations.
Ronald McDoland Houses are a famous example of public relations. How much do you think novelty contributes to the success of a product. Industrial goods receive the bulk of personal selling. Publicity. insurance. and distribution. price. Which of the two do you think is more successful with the Romanian buyers and why? 2.financial adviser that provides investment and securities products. purchasing agents and others who need technical and detailed information are usually referred to the selling company’s sale representative. Identify the degree to which this person's job is oriented toward each element in the marketing mix. 3. and how well do you think it would be received abroad? What elements of the marketing mix might need to be adjusted for international consumers? 18 . can sometimes hurt a business. Personal selling. therefore. clothing.2. Publicity also refers to a firm’s efforts to communicate to the public. Public relations. for example. reaches its customer audience by advertising its services in Fortune magazine. DISCUSSION POINTS 1. Select a product made by a foreign company and sold in Romania. coupons. Publicity. and real estate) are best promoted through personal selling. Sales promotions. which involve one-time direct inducements to buyers. however. promotion. Compare it with a similar domestically made product in terms of product features.4. Many products (for example. Public relations include all communication efforts directed at building goodwill. 4. Premiums (usually free gifts). Interview the marketing manager of a local business. is not paid for by the firm. Relatively inexpensive items are often marketed through sales promotions. usually through mass media. or person-to-person sale. Firestone suffered a severe downturn in sales after the widely publicized tire failure on Ford Explorer SUVs. It seeks to build favourable attitudes toward the organization and its products. and package inserts are all sales promotions meant to tempt consumers to buy products. When companies buy from other companies. 4. In 2000.3. nor does the firm control its content. 4.
a prospective buyer moves through five stages: awareness. Advertising differs from news and publicity in that an identified sponsor pays for placing the message in the media. pop. Consumers learn to generalise from originally learned ideas. Learning takes place when the consumer alters a response or behaviour as result of some experience. advertising may be the best way to create awareness of a new product. The relative importance of the promotion mix elements can vary over time and certain forms of advertising or sales promotion may come in and out of vogue. Advertising Any paid form of nonpersonal communication through the mass media about a product by an identified sponsor is advertising. The following is a brief presentation of each element in the promotion mix. But even with good commercials. while sales promotion such as free samples may be effective in encouraging trial of the product. or powdered drink mix on a hot summer evening. It is also easier to have our message learned for hot chocolate when the weather turns cold. reminding and persuading customers about an organisation and its products. Advertisements are persuasive communication. if advertisements are to be learned. Sponsors may be a non-profit organization. there is a need for substantial repetition. It should be noted. by eventually changing the message. 1. experience. Thus. a political candidate. The mass media used include magazines. If the commercial presents the message so that it provides for a strongly perceived experience. emphasises personal selling while Revlon Inc. the experience can only be vicarious and is therefore weak in comparison to being able to have the announcer hand a glass of iced tea through the picture tube to the hot and thirsty viewer. Learning is made up of there components: motivation. learning is more likely to take place. however. newspapers and Internet. Industries and organisations vary greatly with respect to the relative importance they place on the different elements in the promotion mix. personal selling. requires personal selling. and repetition. The advertiser can avoid this problem. radio. emphasises advertising. direct mail. For example. the viewer can experience the brand benefit and is more likely to learn it. evaluation. Therefore. however. in the cosmetics world Avon Products Inc. Therefore. Every time we see a commercial on television for a refreshing drink of iced tea. beer. It is important to keep in mind that the elements in the promotion mix must be co-ordinated and linked together in such a way that they will complement and reinforce each other's particular role in achieving the promotion objectives. sales promotion and public relations. advertisers will sometimes copy a highly successful campaign idea that has been well learned by consumers. Answering prospective buyer's queries. interest. that too much repetition can result in consumer fatigue as the message falls on "deaf ears". there is a strong motivation to learn so that our thirst can be satisfied. For instance. The highly successful "Marlboro Country" advertising for cigarettes has led to "Ford Country" for automobile 19 . Advertisers must therefore understand how people learn in order to "teach" them to respond to their advertising strategies. billboards. when Nestea shows a hot and thirsty person drinking iced tea and then falling backward into cooling refreshing water. Promotion seeks to move prospective buyers through this process by informing. Advertising is used when sponsors want to communicate with a number of people who cannot be reached economically and effectively through personal means. television. In deciding whether to buy or make regular use of a product.LECTURE 5 THE PROMOTION MIX Promotion is considered to be comprised of four elements: advertising. trial and adoption. however. a company or an individual.
consumer contests add value for consumers while sales contests and value for salespersons. in fact. expressed in cash or in kind. advertising. Sales promotion may be a firm's primary promotional effort or it may supplement and complement personal selling. and/or final customers. It has a temporary and short-term duration only. An organization's salespeople provide the most direct link to its customers. and customer requirements. Sales promotion Sales promotion communicates with targeted receivers in a way that is not feasible by using other elements of the promotion mix. For example. Most incentives. Personal selling Personal. competitors and their products. but can affect brand image in the longer-terms. to many customers. the salespeople is the organization. are short-term in nature. and public relations. In such cases.dealers and "Cadbury Country" for chocolate bars. Personal selling is the oldest type of promotional effort. (2) to convert these prospects to customers. A promotion has only there targets and two modes. the consumer and company employees. Computers and specialized software are helping to improve the effectiveness and efficiency of salespeople by helping them do a better job of organizing the personal selling effort. salespeople are a valuable source of feedback concerning the company’s products. But some incentives are part of a long-term effort to inform target customers at the point of purchase. College students use it to get dates. Or the advertising that has successfully sold one product under a family brand may be used to sell additional products. and to market themselves to prospective employers. Sales promotion activities add value to the product because the incentives ordinarily do not accompany the product. Objectives of personal selling The basic objectives of personal selling are: (1) to find prospective customers. face-to-face contact between a seller's representative and those people with whom the seller wants to communicate is personal selling. Nonprofit organizations. They also play a pivotal role in implementing marketing strategies. and college football coaches use it to recruit outstanding players. Politicians use it to win votes. The importance of each objective to a marketing organization depends largely on the role personal selling plays in the overall promotion mix. and individuals use personal selling to communicate with their publics. it too is being impacted by modern technology. and straight price- 20 . to get more money from their parents. Nevertheless. intermediaries. Basic principles of sales promotion Description and role Sales promotion means immediate or delayed incentives to purchase. Everybody engages in personal selling. 2. Because of their direct contact with the market. political candidate's companies. Today it is more important for salespeople and sales managers to be wellorganized. like consumer contests and sales contests. The modes are the immediate incentive and the delayed incentive to purchase. the customer's image of the organization is formulated on the quality of the personal selling effort. and (3) to keep them as satisfied customers. The targets are the trade. Physicians use it to persuade their patients to begin a regular program of exercise. Incentives are immediate when they can be obtained concurrently with purchase. Finding prospects Converting prospects to customers Maintain customer satisfaction ⇔ ⇔ 3. It involves any activity that offers an incentive to induce a desired response by sales persons.
Some types of institutional advertising. 21 . maintain the goodwill of the organization's many publics. they may misinterpret. are a part of public relations. the schedule of the materials appearance in the media. sales promotion. etc. the content.at no charge to the organization for media time and space. Communication to correct erroneous impressions. plant tours. Usage or experience of a brand also strongly influences attitudes. 4. The discussions that follow focus on two other approaches to conducting PR: direct contact and publicity. First. or be openly hostile to the organization's actions. distort. Public relations Modern organizations are also concerned about the effects of their actions on people outside their target markets.it is mainly a function of the brand's performance. policies. Publicity is the core of public relations. These ads mainly attempt to create or enhance a positive image for the organization. These people may have little contact with the organization but feel in affects their welfare in some way. Great care should be given to preparing the publicity materials to help ensure that they will be used by the media. and explain the organization's goals and purposes is called public relations (PR). The objective of a promotion is to achieve a specific number of new or additional purchases during its currency. On the other hand. it has fully completed its task. as indicated earlier. In general. Unless the organization understands their concerns and communicates its goals and interests. If it a accomplishes this objective. while the objective of promotions is to translate favourable attitudes into actual purchase. Public relations (PR) is communication designed to correct erroneous impressions. Third. publicity is not free advertising. it has greater credibility than advertising.cuts are the simplest example. It is news carried in the mass media about an organization . Whether or not the brand continues to grow and prosper after the promotion is over says little about the quality of the promotion . and explain the organization's goals and purposes. and sales people. Employers who recruit on college campuses may write personal letters to professors explaining their management philosophy and required qualifications for student interviewees.like inferior performance . The limited yet important role of sales promotion is not widely recognized. Publicity offers several advantages as a promotion tool. therefore. the purpose of advertising is to create awareness and improve attitudes towards a brand. Visits by PR personnel include speakers at civic and service club meetings to explain their firm's goals and policies. Plant tours often are scheduled by breweries and soft drink bottles. maintain the goodwill of the organization's many publics. Companies may also attempt to use sales promotion as a solution to problems of a more radical nature .its products. it is relatively inexpensive and provides coverage that would cost much more money in advertising. personnel. pricing and advertising.without recognizing that such a task is beyond its capabilities. Direct contact public relations Direct contact with public includes letters. Second. and company-sponsored events. it only fulfils the function of heart massage and may render a disservice by temporarily obscuring the patient's serious condition. In such situations. Incentives are delayed when the purchaser has to take additional action (like mailing in an application leaflet) or has to await the outcome of chance (as in a competition). publicity has its limitations. The marketers must bear the costs of preparing such items as news releases and including media editors to print or broadcast them. No promotion is an island unto itself Sales promotion is often viewed in isolation from the other elements in the marketing plan and is sometimes utilized as a desperate measure to prop up sagging products. or actions . it may reach people who ordinarily do no pay attention to advertising. The marketer has very little control over the publicity materials. visits by public relations personnel.
State one way in which: • • • advertising is different from public relations advertising is similar to public relations public relations is different from the other promotion elements.The main publicity tools are: ▪ the news releases. a) to stimulate and motivate consumers to try a product b) to provide widespread knowledge of a new product c) to provide very specific information about a product. usually one typewritten page. perhaps in response to articles that appeared in those media ▪ radio and TV stations are given tapes and films for broadcasting. 3.Which element of the promotion mix would you highlight in each of the following situations: 22 . containing information that the organization wants disseminated. and phone number of the person. address. whom media personnel should contact for more information ▪ feature articles are longer and prepared for specific publications ▪ media representatives are invited to press conferences to hear about an upcoming major event ▪ letters to the editor are sent to newspapers and magazines.What is similar about marketing mix and the promotion mix? 2. along with the name. DISCUSSION POINTS 1.
LECTURE 6 TRENDS IN ADVERTISING Promotional activities are basically a communications process. Global advertising Debate on the merits of standardization or modification of international advertising has taken an added emphasis in recent years as a result of Theodore Levitt's article. With China now permitting commercial advertising. many assume the need to modify without exploring the 23 . While there are major differences among countries. and economic integration. The development of mass advertising media is also important in the development of international markets. Advertisements are persuasive communication. A global marketing strategy would mean a global advertising program. 2. ignoring superficial regional and national differences. there is evidence that companies may overemphasize the need to modify advertising and marketing programs for each national market. Improved broadcasting technology. Media availability and its quality have improved over the last two decades. Levitt contends there are global markets for standardized consumer products. including satellite transmission. Executives in such companies argue that the only way to achieve adequate and relevant advertising is to develop separate campaigns for each country. advertisers are still without adequate media alternatives in many parts of the world. Advertisers must understand how people communicate and learn in order to teach them to respond to their advertising strategies. and improved support services from local as well as world-wide advertising agencies. 1. Trends in advertising The increasing sophistication of foreign consumers and the presence of competition from many countries place great emphasis on the role of advertising. people have the income to buy products. but they are not a part of world markets because they lack information about available products.Standardization vs. He advocates that international marketers learn to operate as if the world were one large market. Among the more significant trends in advertising is the creation of privately owned commercial radio and television stations in many European countries. The addition of satellite broadcasting has led to the growth of cable networks making the possibility of pan-European advertising a reality. In many areas of the world. modification of advertising One of the most widely debated areas of policy pertains to the degree of advertising variation from country to country. the multinational firm has access to an expanding variety of commercial media. At the other extreme are those who suggest that advertising can be standardized for all markets of the world. global brands. The development of mass communications broadens local concepts of the world and of political affairs and may prove to be of major importance in influencing and speeding cultural. The benefits are a common appeal in all markets and better co-ordination and cost savings which can be substantial. more world markets are accessible to the international advertiser today than ever before in history. Advertising is changing communication customs and habits in nearly all countries. has stimulated the growth of mass communications in other parts of the world as well. Although mass communications have improved markedly in the past decade.1. In localities where television and other commercial media are not available. political. and global or standardized products. there is continuing demand for the development of such media. Without discussing the merits of Levitt's arguments. 2. Indeed. One view sees advertising customized for each individual country or region because every country is a special problem. "The Globalization of Markets". Concurrent with the internationalization of world business has been the growth and development of advertising media and services through the world.
To complicate matters further. language. Similar restrictions exist in most European countries. Myriad obstacles to standardization remain. A case in point may be the Gillette company that sells 800 products in more than 200 countries.2. Seven-Up advertises in dozens of countries with a policy that allows variation in specific detail to suit local market conditions. media used. hatred or revenge shots. indecent words. or attacks on 24 . it is a bundle of satisfactions the buyer receives. 3. some economies of standardization can be realized while specific cultural differences are accommodated. Laws pertaining to advertising may restrict the amount spent on advertising. For example. The debate between advocates of global or standardized advertising and those who support locally modified promotions will doubtlessly continue. standardized marketing mix. Most are sold under different brand names. and brand signs. Because there are few situations in multinational advertising where either position is clearly the best. it is against the law to use comparative terminology. the Seven-Up bottle crown. Advertising must relate to motivation. advertising campaigns need to focus on these differences. 3. cultural. Pattern advertising As discussed earlier a product is more than a physical item. most companies seek some compromise with pattern advertising. manner in which price may be advertised. boundaries are placed on creativity by legal. it is unnecessary to vary advertising messages for the sake of variation. fearful or shocking shots. there is strong evidence that country market differences often require some adaptation for effective promotional programs. In this way. metal tackers. An advertiser cannot say that one soap gets clothes cleaner than another because the statement implies the other products do not get clothes clean. On the other hand. This package of satisfactions or utilities includes the primary function of the product along with many other benefits imputed by the values and customs of the culture. Advertisers from around the world have developed their skills and abilities to the point that advertisements from different countries reveal basic similarities and a growing level of sophistication. which requires modification of the creative approach from country to country.1. Certain elements of Seven-Up advertising remain constant in every country. production. In Germany. Creative challenges The growing intensity of international competition coupled with the complexity of marketing multinational demand that the international advertiser function at the absolute highest creative level. The experienced international advertiser realizes the question of standardization or modification depends more on motivational patterns than geography. Commercials are controlled to exclude superlative descriptions. In Kuwait. 2. Different cultures often seek the same value or benefits from the primary function of a product. and fundamental point-of-purchase units such as illuminated plastic signs. and cost limitations.possibilities of a world-wide. The world is still far from being a homogenous market with common needs and wants for all products. the Seven-Up logotype. Legal and tax considerations Some countries regulate advertising more closely than others. if people in different markets buy similar products for significantly different reasons. type of copy and illustration material used. media. type of product advertised. a global advertising strategy which standardizes the basic message but allows some degree of modification to meet local situation. indecent clothing or dancing. contests. Many companies follow a strategy of pattern standardization. for example. when markets react to similar stimuli. While the need to control costs and to coordinate worldwide promotional programs places emphasis on global advertising. the basic colour combination. Some products in particular countries can be promoted most effectively with a global approach while others require a localized program to be successful. and other aspects of the advertising program. the government-controlled TV network allows only 21 minutes of advertising per day and this in the evenings.
Switzerland has three separate languages. there is ample room for error. and word economy. honest advertising causes most problems. An astute marketer knows that white in Europe is associated with purity but in Asia it is commonly associated with death. This is especially apparent in advertising materials. Communications is more difficult because cultural factors largely determine the way various phenomena will be perceived.competition. different languages or dialects within one country.. alcohol. e. which has an unusually high traffic fatality rate". airlines. What is acceptable in one country may be deemed false and misleading in another. but when the car was introduced in Puerto Rico it was discovered that the word meant "Killer" . Legal and tax considerations are a major deterrent to complete standardization of advertising. both the language and the translator change so the expatriate is out of touch after a few years. brandy is sustaining. The variation between countries in interpreting what constitutes acceptable. The concept of cooling and heating the body is important in Chinese thinking. perception of the message itself will differ. 3. pharmaceuticals. Language limitations Language is one of the major barriers to effective communication through advertising. Some companies have tried to solve the translation problem by hiring foreign translators. the most effective tools of the advertiser. One Middle Eastern country advertisement featured an automobile's new suspension system that."an unfortunate choice for Puerto Rico. 3. the marketer will have an educatedl choice of using or not using various colours. "A whole new range of products" in a German advertisement came out as "a whole new stove of products". What may appear as the most obvious translation can come out wrong. while fresh milk is cooling. The problem involves the different languages in different countries. Market research showed that American Motor's Matador name meant virility and excitement. Some countries have special taxes that apply to advertising and which might restrict creative freedom in media selection. but if the symbolism in each culture is understood. Existing perceptions based on tradition and heritage are often hard to overcome. Everyday words have different meanings in different cultures. Communication is impeded by the great diversity of cultural heritage and education which exists within countries and which cause varying interpretations of even single sentences and simple concepts. If the perceptual framework is different. terse writing. whiskey harmful. Knowledge of differing symbolism of colours is a basic part of the international marketer's encyclopaedia. said the car was "suspended from the ceiling". Low literacy in many countries seriously impedes communications and calls for greater creativity and use of verbal media. Knowledge of cultural diversity must encompass the total advertising project. lighters. Incautious handling of language has created problems in nearly every country.3. but this usually is not satisfactory. Language translation encounters innumerable barriers that impede effective.g. Abstraction. Multiple languages within a country of advertising area provide another problem for the advertiser. malted milk is considered heating. International marketers are becoming accustomed to the problems of adapting from culture to culture. It is also illegal to advertise cigarettes. 25 . and the subtler problems of linguistic nuance and vernacular. Even pronunciation causes problems. chocolates. and other candy. Colour is a small part of the communications package.2. idiomatic translation and thereby hamper communication. pose problems for translators. Cultural diversity The problem of communicating to people in diverse cultures is one of the great creative challenges in advertising. The marketer must also be sophisticated enough to know that the presence of black in the West or white in Eastern countries does not automatically connote death. in translation. Since there are at least 30 dialects among Arab countries.
media.5.1. The various restrictions to advertising creativity can be seen as insurmountable impediments to a standardized worldwide promotional campaign.2. a rate considerably higher than the cost increases in U. it is imperative that ads run in both English and Chinese.4. The advertiser may find the cost of reaching a prospect through advertising is dependent on the agent's bargaining ability. In some countries.. for example. In some African countries. because of the shortage of advertising time on commercial television.As though it were not enough for advertisers to be concerned with differences among nations. Production and cost limitations Creativity is especially important when a budget is small or where there are severe production limitations. global advertising campaign. prices have increased substantially more. 4. certain advertising media are forbidden by government edict to accept some advertising materials. Availability One of the contrasts of international advertising is that some countries have too few advertising media and others have too many. hand-painted billboards must me used instead of printed sheets because the limited number of billboards does not warrant the production of printed sheets. The cost of reaching different market segments can become almost prohibitive in some instances. is informative.1. Agency space discounts are often split with the client in order to bring down the cost of media. they find subculture within a country requires attention as well. Cost Media prices are susceptible to negotiation in most countries. Such restrictions are most prevalent in radio and television broadcasting. Tactical considerations Although nearly every sizeable nation essentially has the same kinds of media. 26 . In Hong Kong. 4. Media planning and analysis 4. develop a promotional campaign that communicates across country markets. as the ultimate creative challenge for an advertiser: i. and differences encountered from one nation to another. In Hong Kong. 3. The necessity for low cost reproduction in small markets poses another's problem in many countries.1. and persuasive. 3. There are many internationally known advertising agencies that feel they can successfully surmount the obstacles encountered when creating a standardized. 4. advertisers run boats up and down the rivers playing popular music and broadcasting commercials into the bush as they travel. The per-contract cost will vary widely from country to country. there are a number of specific considerations. In some markets. Creative advertisers in some countries have even developed their own media for overcoming media limitations. cost and coverage of the media. problems.e. as is the case in Italy. Media limitations Media limitations may diminish the role of advertising in the promotional program and may force marketers to emphasize other elements of the marketing mix. A recent five-year study of advertising costs in nine major foreign markets indicated that costs were increasing at a rate of 10 to 15 percent each year. For example.S. for example.1. poor quality printing and the lack of high-grade paper are simple examples. In many countries there are too few magazines and newspapers to run all the advertising offered to them. A marketer's creativity is certainly challenged when a television commercial is limited to 10 showings a year with no two exposures closer than 10 days. The primary areas an advertiser must consider in international advertising are the availability. Conversely. Or. some nations segment the market with so many newspapers that the advertiser cannot gain effective coverage at a reasonable cost. there are 10 different patterns of breakfast eating.
27 . Two points are particularly important: one relates to the difficulty of reaching certain sectors of the population with advertising and the other to the lack of information on coverage. a wide variety of media must be used to reach the majority of the market. Compare German and Romanian beer advertising considering the cultural variables (cultural values. there are still questions about the composition of the market reached. they would show no only the great variation in the audiences of different periodicals and broadcast media. The advertiser is confronted with the problem of selecting media to provide coverage for an entire market. advertisers should have information on income. Coverage Closely akin to the cost dilemma is the problem of coverage. Discuss if advertising can be standardized for all countries. 3. and geographic distribution. but even such basic data seems chronically elusive. advertising appeals and the occasion for product usage). DISCUSSON POINTS 1. Outline some of the major problems confronting an international advertiser."Perhaps advertising is the side of international marketing with the greatest similarities from country to country throughout the world". rhetorical style. but also the great diversity and variations that exist from country to country. Lack of market data Even where advertising coverage can be measured with some accuracy. Lack of available market data seems to characterize most international markets. Often even a small nation will have a dozen or more subcultures within its borders. If adequate market data were available. 2.4. age.1. 4. large numbers of separate media have divided markets into uneconomical advertising segments.3. In some countries. In many world marketplaces.
A 1995 Roper/International Research Associates poll of over 35. and a decrease in the biological diversity that keeps Earth's ecosystem in balance are more 28 . pantyhose. People are worried In the 1980s environmental calamities dominated the news. "Planet of the Year. such that the satisfaction of these needs and wants occurs. and Time magazine named spaceship Earth. No corner of the globe escapes the by-products of the one-two punch of rapid global industrialization and burgeoning population growth. The environment rose to the top of the public’s worry list. The reasons are many. In Maine. However. Since the 1980s." Government responded. Pessimism over the state of the environment reigns in virtually every corner of the world. and other trash creeping up the back step. The twentieth anniversary celebration of Earth Day in 1990 attracted 100 million participants around the world.000 adults in 40 countries on five continents–one of the most comprehensive global surveys conducted to date–found that three times as many people worldwide think their country’s environmental situation is close to or is the worst possible as opposed to the best possible (25% versus 8%). apples were not considered safe to eat. At 17%. and nuclear meltdowns. Children picketed the United Nations with "Ronald McToxic" in effigy. To preserve its markets and safeguard its reputation. but in our own. with minimal detrimental impact on the natural environment. A hole punctured the ozone layer. but consumers’ desires to quell their concerns is actually higher now than at the peak of the eco-craze. and most likely due to North America's relatively cleaner environment it pales in comparison to the acute pessimism that prevails in the former USSR countries. ozone layer depletion. North America has its share of adults who believe the environmental situation will be worse or near the worst possible state in five years. However. aseptic juice boxes were swept from grocery shelves because they were not broadly recycled. and the Middle East.LECTURE 7 NEW TRENDS IN MARKETING Green marketing Green or Environmental Marketing consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants. Consumers felt listened to. filthy air. a garbage barge searched in vain for a dumpsite. They began to recycle their Pepsi cans and aluminum foils cut down on disposables. municipalities banned fast-food cartons from landfills and tried to tax disposable diapers. people still worry about any number of such specific environmental issues as industrial air and water pollution. Almost daily. headlines trumpeted oil spills. the headlines have shifted away from wandering garbage barges and medical waste washing up on the New Jersey shore to genetic breakthroughs and Hollywood murders. We are not alone. radiation from nuclear power plants. Latin America. The issues were no longer in someone else’s backyard faraway. and destruction of rainforests. Count on things to get worse. toxic waste dumps. The environment-related hysteria of the late 1980s and early 1990s is now behind us. industry quickly greened up its products and issued environmental communiqués and ads asserting its commitment to a cleaner Earth. and take other environmental steps that gave them a sense of control over their day-to-day lives. Such ills as contaminated water. Fueled by voters’ fears of discarded eggshells. Their motivation: trepidation for what they see as a very shaky future. The marketplace is greener now than ever before–and will become even more responsive to products and services promising environmental responsibility well into the 21st century.
Although not always for altruistic reasons. The Endangered Species Act of 1966. and Fred Krupp of the Environmental Defense Fund among them–now dominate society. Bill Gates. America's love affair with recycling has created markets for recycled building products. finds that despite a growing impetus for a balanced legislative approach. Citizens are responding There’s a sense of betrayal in the air. they are not content to stand aside. Peter D. anti-big business. the Washington. up from 21% in 1994. Earth in the Balance. but still feel that all too often politics and profits get in the way of all-out efforts to purify the environment. voters age 18 to 34. Hart Associates. even at the expense of economic growth. more voters than not believe current laws and regulations do not go far enough and are prepared to vote for stiff environmental laws if necessary. stationary.S. polling firm. more than one-quarter of U. In 1995. The deep-rooted values established in their youth shape their lifestyles and decisions. minorities. Just over the millennial horizon lurks the specter of global climate change and a stratospheric ozone layer that may be thin to shield the planet from the sun's cancer-causing. like Al Gore’s book. taxes and the cost of living. With Harvard Law School dropout Dennis Hayes in charge. and spanning in age from 30 to 50. and mercury-free and rechargeable batteries the new gold standards in their respective product categories. all sprang from their demonstrated concern. The solid waste crisis fuels sales of backyard composts. and 29 . adults now recycle their Coke bottles and morning newspapers. Citizens acknowledge government’s and industry’s greener hands.C.prominent in areas without a history of environmental protection such as Eastern Europe and Asia. Recall that the Baby Boomers were the first health and fitness conscious generation. activist to the core. However. Kennedy’s Presidential Awards for Physical Fitness. individuals know their materialistic consumption contributes to the mess. such efforts as the EPA’s Common Sense Initiative. the Baby Boomer-led citizenry has decided to put their leaders on notice and take things into their own hands. many Americans pick up after litterbugs. crop-depleting UV A and B rays. jobs. water-saving washing machines and dishwashers. That consciousness now merges with their reignited environmental concerns to create a more holistic "wellness" philosophy that emphasizes overall quality of life. and a similar number (26%. D. Representing nearly one-third of the US population. and urban dwellers–despite the greater concern they have about such issues as the economy. up from 18% in 1993) say they have done volunteer work for the environment. No wonder that around the world almost two in three people (64%) believe "protecting the environment is the most important concern. it was the Baby Boomers who created the first Earth Day in 1970. the Baby Boomers–Bill Clinton. and pro-environment.. It is no coincidence that the Baby Boomer-led Clinton Administration has put the environment on its priority list. mulches.S. Environmentalism is a core societal value Environmental consumerism is driven by the largest demographic group in the history of America: the now maturing Baby Boom population. They were the first recipients of President John F. The eldest Boomers led the activist movements of the late 1960’s and early 1970’s–anti-war. packaging. voters (27%) pulled the lever for candidates based completely or in part on their track records for environmental responsibility. Although its environmental record is not perfect. phosphate-free laundry powder. compost yard trimmings or take their used motor oil to recycling centers. and the Global Climate Change Action Plan demonstrate a desire to balance environmental cleanup with sound economics. and even sweaters and sneakers. Such attitudes predominate–particularly among women." and proenvironment sentiment is mirrored in every region of the world. Nearly half of all U. As detailed throughout this book. the Clean Air Act of 1970 and Clean Water Act of 1972. Green product sales soar America's environmental ethic makes emission-control gasoline.
these include the parents of elementary school children. rocketed awareness of environmental issues into the headlines and onto the political agendas of nations around the world.towards greener goods. at least 400 environmental-product emporiums with such names as Earth General and Ozone Brothers thrive from Boston to Sausalito and dozens of cities in between. In Business magazine. the environment is of higher priority to children than to adults. and other stores and nearly 5000 mostly small independent operators for an estimated $7. A nationwide research study commissioned by the National Environmental Education Training Foundation in December 1994 found that youngsters placed the environment third in a list of 10 issues behind AIDS and kidnapping. crime. Gleaming natural foods supermarkets dominated by the Whole Foods and Fresh Fields chains with estimated sales of $500 million and $200 million each in 1995.yard-waste bags. "tree-free" paper products. Children are green No parent or teacher would deny that the environment weighs heavy on the minds of America's naturally idealistic youth. Switzerland. and 31 states require schools to incorporate environmental concepts into virtually every subject in all grade levels. their sales were $5. bulk bins. for whom the economy. and people with environment-related health problems looking for alternative products. water-based paints (low-fume) and stains. Trading partners are green In the 1980s. the Netherlands. sales in naturalproducts outlets of such greener products as environmentally preferable cleaners.now upward of $30 billion . In 1991. particularly among preteens who pitch in on neighborhood cleanups and do their best to skew family grocery-shopping budgets . Health-conscious consumers fuel markets for organic foods. Given current developments.6 Education breeds concern and action. consumers in the early years of the 21st century will be snapping up cars run on electricity or natural gas and home power systems fueled by solar or geothermal energy. "Products for a Healthy Planet. older customers.1 million. counted 11 green retailers in the United States. Children in particular fret over long-term issues such as damage to the ozone layer and destruction of the rainforest. and natural personal care products are skyrocketing Gone are the dimly lit general-type stores with cluttered aisles. and supermarket checkout lines in the years and decades ahead. voting booths. The opportunities for greener products will grow as ecologically vigilant children and teens replace the less-green elderly in the workplaces. lighting.and water-filtration devices. the handbook of eco-entrepreneurs. Wild Oats. bottled water. compete with Alfalfa's." Propelled by the wider range of customers that now purchases green products. Thanks to new product introductions and more generous allocations of retail space. air. the accidental release of toxic chemicals into the Rhine River. Indeed. Such incidents as French nuclear testing in the South Pacific. up 62% over 1995. Seventh Generation has branched out from a direct mail catalog serving the needs of the most ardent green shoppers to a mass marketer of nationally distributed green goods dubbed. and the United Kingdom keep it there in the 1990s. and limp organic vegetables. the spread of a nuclear cloud from Chernobyl across Eastern Europe. Riding high on this current buoyant wave of green shopping. growing widespread environmental degradation. and organic fertilizers and integrated pest management systems that do not rely on man-made chemicals at all. As suggested by surveys of specialty green stores. Parents change their shopping habits because their children say certain products are better or worse for the environment than others. and virtual counterparts pop up on the World Wide Web.5 billion in yearly sales. and heating and cooling systems in homes and offices. Ninety-nine percent of America's children now have access to environmental classes in school. natural cleaning and personal-care products. in contrast to adults. In their place are scores of cheery health-food and specialty stores that carry a dizzying array of natural foods and green general merchandise. Five years later. 30 . and countless other ecological disasters. and mounting solid waste issues such as those that continue to plague Germany. while a raised energy consciousness spurs the growth of more efficient appliances. and drugs hold greater sway.
and Tom’s of Maine. projects a savings of more than $35 million by the end of 1997. and the economic benefits they provide has made "product take-back" and design for disassembling and recycling a top priority for Xerox. Inc. The potential for such laws in the U. Producing eco-efficient products creates less waste. A growing number of CEOs now appreciate the link between environmental responsibility and more efficient . And more and more business communicators know how to use green marketing strategies to take advantage of opportunities to boost their corporate environmental images. Hewlett-Packard and other electronics and appliance manufacturers worldwide. Today. too. For instance. Rayovac introduced Renewal brand reusable alkaline batteries and redefined the market for rechargeables. and this can help attract investors and top talent. manufacturers gear up to become certified with ISO 14001. and especially those in such highly polluting industries as chemicals. Green marketing opportunities Equipped with a better grasp of ecological issues. stood ready when businesses and electric power utilities came calling for replacements for energy-guzzling incandescents. The changes required to make and market environmentally sensitive products enhances employee morale and productivity with a payoff in improved customer relations and overall returns on investment. Competitive advantage. major corporations conduct environmental audits and recycle their waste. and 25 other countries. Philips Lighting. Enhanced corporate imagery ensues. media. Such steps reduce operating costs and liability while boosting profits.and profitable . uses fewer raw materials and saves energy.The European Directive on Packaging and Packaging Waste passed in late 1994 has already spawned a flurry of stiff recycling and waste management laws and initiatives with implications around the globe. IBM. 31 . With 50% of the production capacity for phosphate detergents. Wellman. oil. and electrical power generation. German-based Henkel pioneered the market for zeolites and claimed market leadership when their consumers shifted to phosphate-free detergents. Many of these leaders have been showered with any number of eco-accolades now offered by industry. the world's largest producer of commercial carpeting. has expanded its business definition from plastics recycler to pioneers in the market for branded polyester fiber made from used Coke bottles.business practices. Patagonia. Germany’s experiment with "extended producer responsibility" laws requiring manufacturers to assume control of their products' eventual recycling or responsible disposal has spread far beyond Europe. Japan. Thanks to innovative manufacturing processes suggested by highly motivated and environmentally trained employees. enlightened businesspeople voluntarily adopt environmentally responsible business practices. Many companies. It has been won by Fortune 1000 firms including 3M and Procter and Gamble as well as by a raft of up-and-coming firms with a deep-green orientation like Natural Cotton Colours. Interface. Canada.. the first of a series of international voluntary environmental-quality standards that promise to forever change the way business is conducted7 Eco-labels sponsored by governmental or quasi-governmental agencies decorate products and packages in Germany. More profits.S. inventors of compact fluorescent lighting technology. Many marketers now know that being the first to the shelf with an environmental innovation brings competitive advantage. now have management systems in place to make sure corporate environmental profiles and products exceed consumers’ expectations. One example is the Special Edison Award for Environmental Achievement bestowed by the American Marketing Association. Countless others upgrade their facilities with energy-efficient technologies. government or environmental groups. All over the world.
and nontoxic garden products are safer for children. and buy a Compaq PC emblazoned with the Energy Star energy-saving designation. McDonald's. the market becomes legitimized. EarthRite Cleaning Products (Reckitt & Colman). price. They are motivated by a desire to keep their loved ones free from harm and to make sure their children’s future is secure. consumers were five times more apt to believe that a company’s record on the environment was an "important" factor in their purchasing decisions than corporate executives believed. Times are tough for marketers of branded products.their knowledge of corporations’ track records for environmental. and Compaq." contains "biodegradable cleaning agents. Unlike discreet target groups such as Hispanic women or college-aged men. The notion of a "typical green consumer" continues to be elusive. Greenness extends throughout the population to varying degrees. and also social. Brand loyalty is near all time lows. However. aggressive competitors adept at capturing the imaginations and winning the hearts of highly desirable environmentally and socially conscious customers are introducing some of the most exciting green products. Murphy’s Oil Soap (Colgate. competitive climate.000-plus household incomes. what attracts many consumers to greener products is quite simply the prospect of higher quality: water-saving showerheads slash energy bills. responsibility. 32 .Palmolive). they rally support for local environmental clubs and social causes. or "buycotting" those companies and products deemed environmentally sound and boycotting the brands of companies with disappointing environmental track records. In one poll conducted by the Porter Novelli public relations firm. Pick up a bottle of Tide laundry detergent and learn how it is "phosphate-free. Increased market share. to graffiti or lawnmower noise on Saturday mornings. green consumers are hard to define demographically. Theses growth opportunities have not been lost on such market leaders as Procter & Gamble. With the deepened consumer confidence in green products that results. Pragmatic consumers skew purchases to those products and packages that must be recycled or otherwise safely disposed of in their communities. Check out the basic brown paper carry-out bags and speckled (recycled) napkins at McDonald's (they tested "Earth Shell" compostable food wraps). Their buying power and their potential to influence their peers makes them a highly desirable marketing target. research into recent buyers of green products and empirical evidence suggests those consumers most receptive to environmentally oriented marketing appeals are educated women. 30-44. concentrated laundry detergents are easier to carry and store. Except these enhanced primary benefits–of performance. All else being equal. While much brand switching is conducted in the name of altruism. recent acquisitions include Earth’s Best Baby Foods (by Heinz). environmental compatibility breaks ties at the shelf. They offer the greenest of mainstream products and take pains to project environmentally appropriate corporate images. many consumers look to do their bit by happily switching brands. In this tough. encompassing a wide range of issues from global climate change and gritty smokestacks. Many executives would be shocked to discover just how many consumers are aware of . The success of Patagonia outerwear. convenience. Influential in their community." and is packaged in a "recycledcontent" bottle. and the percentage of Americans who feel that some brands are worth paying more for is declining. for example–that accompany environmental improvements to continue to propel the market for environmentally preferable products in the years and decades ahead. Looking to cash in on the potential for future green-oriented sales. After nearly two decades of compromising on quality –and languishing on oncedusty health food store shelves as a result–today’s crop of green products finally embody all that consumers demand: an opportunity to clean up the mess without having to give up price or quality. Stonyfield Farm Yogurt. with $30. for example.and act upon . Better products. and safety. well-established mass marketers now shop for green companies with promising green brands. and Tom’s of Maine toothpaste suggest that consumers now have higher expectations for the products they buy and that quality is an image that no longer stands apart from environmental impact. and because green concerns are extremely diverse.Young.
there are limits in the range of prices the wineries can charge for their wines. even if they are of high quality and unique. and profitability. As a consequence. CASE STUDY 1 STRATEGIES TO ENTER A NEW MARKET Mr. culture. releasing it during the night. bottles them. The target market is people in the upper middle class. and history. independent producer of quality wines in German's picturesque Mosel River Valley. new packaging. Both the hale and the water itself absorb heat during the day. with its increasing emphasis on imports from countries around the world.The fact that women are in the forefront of green purchasing cannot be underestimated. and may recommended the parties to friends. the winery is working with others that 33 . not all green consumers are as "deep green" or as active as the women discussed here – there is a host of more passive green consumers as well. each family grows its own grapes. In adding to its product lines. European integration and the move toward a single market have intensified competition. The participants in such parties often buy bottles of wine on the spot. in the valley alone. These strategies include new products. The rapid growth of the wine market in Japan. Quint's objective is to retain the traditional and individual character of the company while increasing productivity. and does the marketing themselves. The owner of the winery additionally provides a tour to the vineyard and the winery itself. and wines have been the specialty of the river valley ever since. and changing emphasis in marketing. makes the wines. together with the unsuitability of the climate above the valley walls for growing grapes. and use traditional recipes and processes. Poll after poll shows that women place a higher importance on environmental and social purchasing criteria than men. Background The Mosel River Valley has been a producer of high quality wines since Roman times. A number of wineries have experienced greater than desired carryover of stock from one year to the next. Strategies Quint Winery specializes in higher quality wines with individuality in taste and flavour. They introduced viniculture. This type of marketing approach has worked well in the past for small wineries with very limited funds available for promotion. With the enthusiastic support of his wife and the continuing support of his parents. smooth surface reflecting the summer sunshine on the hale-laden soil of the valley's steep slopes. The overall strategy is to remain small. particularly those who appreciate excellent wines and are interested in information about wine. it is increasing productivity by outsourcing specialized bottling to others that have machinery which Quint cannot economically purchase. indicating that additional marketing efforts are required. ideal for the production of high quality wine grapes. In order to make the small-scale operations economically feasible. Mr. has resulted in a pattern of small. The result is a micro climate. The steep valley walls require that in some places winches and cables be used to move platforms from which cultivation and harvesting are carried out. sales. With his own background in the formal study of wine engineering. he is developing new strategies for the winery to remain successful in the face of increasing competition. Michael Quint has a wealth of information that he enjoys sharing with others. The river has a series of low-rise dams that provide a road. the participants have the opportunity to sample a variety of the winery's products along with a steak dinner. sometimes become long-term customers. leading men to feel relatively less threatened by environmental ills. Michael Quint has recently taken over the family-owned. They do most of the shopping and although it sounds sexist. they may naturally exhibit a maternal consideration for the health and welfare of the next generation. This may reflect differences in feelings of vulnerability and control between the sexes. This. For a low package price. One of the major tools for attracting customers is the holding of "wine tasting parties" ion a traditional cellar bar close to the winery. The suitability of the region for growing grapes was recognized by the Romans. However. However. may provide an additional opportunity for Quint Winery. Many small German wineries market their wines directly to consumers. independently owned vineyards. In all of these developments.
Their Japan Trade Directory 2001-2002 lists 14 companies that import wine into Japan. JETRO Business Support Centers in Japan provide office space at no charge for up to two months to foreign business people seeking to export to or invest in Japan. these changes have substantially increased opportunities for small exporters abroad. These small trading companies supply stores or restaurants which do not import directly. According to JETRO. has continued into the 2000s. These allow potential foreign exporters to introduce their products to a wide range of Japanese consumers and companies. A Japanese visitor. letting the quality and individuality of the wines inspire a desire to purchase. Together. In spite of the increase in customers generated by these activities. He firmly believes in avoiding any sort of pressure to buy. JETRO offers several types of assistance to prospective exporters in foreign countries. If properly marketed. An initial step for Michael Quint would be to contact the Japan External Trade Organization (JETRO) office in Dusseldorf. and processes of wine making. Several Internet wine shops are now serving the Japanese market. It subsequently began to produce sparkling wines. There are a number of channels available for selling wine to the Japanese market: direct sales to department stores and mass merchandisers. contacts. sales to large trading companies. specializing in or emphasizing wine. brought to a wine tasting by German friends. culture. followed by taste. and their offices stand ready to assist potential exporters with information. have opened. and opportunities for participation in trade shows. coming in second behind France in value of shipments. An increasing number of wine speciality stores have been opened. or that wish to supplement their own imports with small amounts from other producers. price is a key factor in wine purchase decisions. The company has also been developing and experimenting with new bottle designs that will stress the Quint Winery brand while linking it to the traditions of the house. and by providing interesting and informative presentations on the history. are gaining increased acceptance. The market in Japan has become increasingly sophisticated. A red wine boom. direct sales to wholesalers and discounters. and a shift from white to red wines has occurred. Imports from other countries. additional markets are desired. A number of small trading companies. She believed that they might prove sable in Japan. However. colour. a regulation issued by an archbishop several centuries earlier had prohibited the production of red wines in the region. Wine consumption in Japan has almost tripled during the last 10 years. Until the 1990s. sales through joint venture projects. People attending the wine tasting events usually buy a number of bottles of the wines. 34 . based on its white wines. especially from South America and Australia. Germany is a major supplier of wine to the Japanese market. In an unusual addition to typical service. However. commented on the excellent quality of the wines. It can help in arranging participation in government-sponsored trade shows of consumer goods. and sales in bulk or in bottles to domestic liquor producers. this should allow both increased sales and possibly greater margins. and subsequently recommend both the events and the wines to their friends back home. and brand. which began in Japan after research associated the drinking of red wine with a lowered incidence of cardiovascular disease. Quint Winery's major marketing effort is still the holding of traditional wine tasting parties. in co-operation with a small subcontractor in the village. he also offers to personally deliver the wines to his customers anywhere in Germany. JETRO offices abroad provide information on markets and methods of penetration. In the 2000s.have core competencies which cannot be economically developed by Quint. offering a very wide range of wines. Quint winery began to produce some red wines whose production proved to the very successful and increased the range of their offerings. Many vintners in the area still produce only white wines. These co-operative activities have allowed the winery to enjoy benefits of being both small and large at the same time. consumers have little interest in poorer quality wine. again with the assistance of friends who had technical expertise. it began to produce brandy. Information on marketing in Japan There is much information available from JETRO on the wine market and wine marketing in Japan. Michael has added the family imprint by showing remarkable generosity in serving wines and food. and third in volume of shipments behind France and Italy. This approach has been working well. Larger department stores carry a wide variety of wines and may hold special promotions and displays. when the restriction was removed.
it might be possible to obtain a higher price for the unique and high quality wines. romance. it could provide an outlet for current surplus production. What kind of market (ing) research should be done with respect to potential Japanese consumers? 6. nor could a smaller chain purchase a whole container load of one vintner's wine. Second. USA) References httm://www. and Dr. It does not appear that Quint Winery could supply a whole container load of their own wine. Germany. First. Should Quint Winery work by itself in any attempts to enter the Japanese market. Should the winery owner visit Japan. B. particularly if there were some way to inform the Japanese public of the history. or should it attempt to work with other local wineries in a type of cooperative effort? 5. and culture of the Mosel River Valley vintners. 2. Fachhochschule Aachen.jp JETRO (2001) Japan Trade Directory 2001-2002. Neil Evans. or should he attempt to attract company representatives to come to his winery? Is your answer influenced by specific aspects of Japanese culture? Explain. 3-4 (February) Questions: 1. Does the Japanese market appear to offer enough potential for Quint Winery to export to Japan? Explain why or why not.go. 4. What should Michael Quint do next? (This case study was written by Prof. Dr. 'Fine wine club: global offerings for the Japanese dining table'.The possibility of marketing to Japan Sales to a small Japanese trading firm or directly to a Japanese chain store might offer two advantages to Quint Winery. How can Quint Winery locate potential Japanese purchasers? 3. Alfred Joepen.-129 JETRO (2002) Pier J: Opportunities in Japan.jetro. What other questions should the owner ask? What problems may he expect to encounter? 35 . San Francisco State University. away from the intense competition in the domestic market.
safari park Art gallery Special interest Activity centre 8 10 5 4 A big tobacco company has decided to branch out into the leisure industry. 2000 % 7 7 12 11 n/a 9 7 Ian. of leisure business the company should go into. Which activity has shown the biggest percentage rise in the period? Report Write a report recommending which kind. ACTIVITIES Questions 1.CASE STUDY 2 DAYS OUT HOW FAMILIES SPEND LEISURE TIME Attractions visited in a six-month period Location Sept. It is also studying the results of other surveys like one carried out by the market-research firm Mintel (shown above). Would it be a good idea for the tobacco company to go into the leisure industry? 2. The results were then compared with a previous survey carried out in 2000. leisure park National park Sports event 42 14 8 16 19 Zoo Large exhibition Country show Wildlife. (adapted from R. 2000 % 41 50 14 23 20 20 17 Ian 2004 % 58 24 Location Sept. Discussion If you were carrying out a market-research survey into leisure activities. garden centre Seaside resort Museum Stately home. It has carried out a marketresearch survey to find out which kinds of leisure activities are most popular. 2004 % 15 15 9 Shopping. or kinds. This was based on a sample of 884 adults who were asked about their leisure activities in the six months up to January 2004. Huggett Business Case Studies) 36 . what essential questions would you have to ask? Team Work Design a market-research questionnaire which would provide information like that in the table above. castle Theme. stating all your reasons.
In particular ABC1s were significantly more likely than C2D Es to say that potatoes 'are particularly high in fibre'. however. dependable. or capable of being used in different ways (81 per cent). They were seen to be less fattening than pasta or bread. Discussion If you were in charge of a £1 million advertising budget for potatoes. It is seen as young. it is also seen as somewhat fattening. What are the main difference in attitudes to potatoes between different class groups? 3. Potatoes (adapted) ASSOCIATED ADVERTISING PLC MEMORANDUM To: Daniel Downton Date: 2 August From: Beth Mills Reference: bm/ka Subject: Potato Image Please let me have a report on how we can create a better image for potatoes. ACTIVITIES Questions 1. but not less fattening than rice. how much. healthy. have 'a good balance of vitamins'. to improve the image of potatoes (In your team. Potatoes were considered to be natural (91 per cent) and traditional (91 per cent). you will 37 . However. and that they 'are not particularly fattening'. if any. particularly among young people. is nearer to the image of rice and pasta. People were asked about different types of food which are high in carbohydrate.CASE STUDY 3 CHANGING THE IMAGE The comparative image of the potato The image of the potato as compared with other food was examined. and part of the British way of life. They were also seen to be nutritious (81 per cent) and versatile. what are the main reasons? Report Write a report explaining how you would improve the image of potatoes among young people. fun and even exciting. Which way of serving potatoes has the most modern image? In your view. the potato is seen to be a necessity rather than something that is exciting or particularly modern. What are the main rival foods to potatoes? 2. The jacket potato. In addition. such as the Sun. despite its healthy image. The potato is seen to be reliable. Source: Potato Marketing Board. There were some differences in the image of potatoes amongst different class groups. would you spend on advertising in the following media: Television Radio Sunday newspapers Daily newspapers Magazines Cinema screens Street posters Team Work Design an advertisement for a tabloid newspaper.
and a team leader). someone to draw the illustrations. for the advertisement. or the words. Huggett Business Case Studies) 38 . someone to plan the layout and design. (adapted from R.need someone to write the copy.
he wants blanket coverage of the area. who is also chairman of the local cricket team D.000 John has decided that if he uses a door-to-door drop of leaflets. who has represented England. In his business plan.000 B. and his students F.000 (You can include any number of radio spots or display advertisements. Thirty-second spots in off-peak time on local radio.000 £140 per 2. so long as the total budget does not exceed £1.000 leaflets? 2.10. Karate demonstration by a local man. Huggett Business Case Studies) 39 . Draw up a publicity budget showing how you think John should spend his £1. Estimated sales £4. 4. 3. plus A5 colour leaflets at: £130 per 1. he has budgeted £1. Display advertisement in local newspaper. What would be the total cost of printing and delivering 10. so he will have 10.and their costs. Each spot: C.000 for a grand opening.000 leaflets delivered. Explain in full why you have chosen to spend the money in that way.000).000 £250 per. Door-to-door leaflet drop at £35 per thousand. Opening sales offer with 10 per cent off all prices. Opening of the shop by a famous footballer G.000 Cost according to quantity Cost £400 £100 Free £200 £100 £1.CASE STUDY 4 A GRAND OPENING John Porter is opening a sports shop and wants to get his business off to a good start. ACTIVITIES Questions 1. A.000 £165 per 5. What other kinds of publicity might John have used for the launch of this shop? What would have been their main advantages? (adapted from R. Opening ceremony by local mayor. Each advertisement: E. and why you did not choose the other methods. He has jotted down some ideas about publicity for the launch of his business .
● Companies can improve their planning. Problems that would take days to analyse can now be done in minutes. For example. direct mail is the single biggest application for data-base marketing. Increasingly. That insight . The perceived importance of this application is immense. ● Companies can improve the response rate to direct mail campaigns by being more discriminating about the households mail is sent to. crunched the sales figures in its stores it found that nappy and beer sales both rose on Friday evenings.stemming from the shopping habits of men with young children encouraged it to place nappies close to the beer. include "neural networks". ● Organisations can discriminate between valued customers whom they want to retain and those who are likely to be less valuable over the long term. But once you build segment strategies. But by the time the multiple chains had taken hold in the 1960s and 1970s. over half of them expect it to become their most common promotional method. whether they use the store for their principal or top-up 41 . up to 100 times faster than before. collate and dig into the database. marketing experts can sift. Some airlines use records stored on their databases to upgrade frequent customers to first class in preference to occasional travellers. one of the latest developments in information management. For others. it is important to simplify data by classifying it into segments that describe the behaviour of particular groups of customers. such as electronic point of sale. For example: ● Supermarket chains analyse cash register data to discover what items customers typically buy at the same time. there was criticism that there would be too much detail. Customers shopped in small stores where their tastes and preferences were known. A data warehouse is a collection of information from many different sources. Findings like this support the Henley Center's assertion that "database marketing is one of the hottest topics in the marketing community".000 investment in a massively parallel processor means it is able to analyse very large amounts of data. Yet enthusiasm is often tempered by scepticism. This body of data is organised specifically to make it easy to perform online queries. it becomes manageable". "decision trees" and "data visualisation". slice and manipulate huge amounts of data in ways that give them new insights into their customers and new marketing options. according to a recent survey of 100 UK companies by the Manchester School of Management. "rule induction". a retailer might divide its customers into 16 different groups or market segments depending on issues such as their potential to spend more money. one of the US pioneers of data warehousing. such as that from Epos systems. The idea is that just as products stored in warehouses can be easily accessed. they are developing a detailed picture of their customer's needs that allows them to offer a better service. uses a data warehouse to help it make decisions on issues such as what mix of fares should be used on which routes. retailers and manufacturers. according to Clive Humby. These insights are exploited in a variety of ways by banks. The popularity of data warehouses is fuelling demand for "parallel processors". according to 500 UK businesses surveyed in a recent study on "data culture" by the London-based Henley Center. A marketer might slice the data into segments using any of a raft of different "data mining" techniques that can sift. sales and customer services. Many organisations own outdated database systems left over from the 1980s. a consultancy that analyses data for companies such as Tesco. Nearly all the respondents plan to use IT-driven direct marketing within the next five years. "At the outset of working with Tesco. British Airways. billing. Cheaper and more sophisticated database technologies are now encouraging marketers to try to get the best of both worlds. This insight into customer behaviour has been made possible by more sophisticated methods of storing and exploring information. there is immense enthusiasm for the flexibility and rapid access to data they allow. computers that put tens or hundreds of processors to work on the same problem. shops had relinquished their individual relationships with customers in favour of mass marketing techniques. he says. and shopkeepers would do what they could to suit them. At well as benefiting from economies of scale that allow them to offer variety and low prices. "genetic algorithms". for example. Currently. some of which have come out of artificial intelligence. there is some scepticism about "data warehouses". Database Mining Marketing once had a personal touch. For example.READING MATERIALS A. says that its £500. strategy director of Dunn Humby Associates. This information can then be used to devise better floor and shelf layouts. Dunn Humby Associated. Among the wary. so can information be extracted from a data warehouse. when Wal-Mart. A third of the respondents to the Henley Centre survey agreed that "database marketing is fine in theory but less good in practice". Some companies are put off by the speed at which technology is moving. Even with very fast analysis. They have had bad experiences of investing in technology that proved obsolete. These techniques.
or prior contributions to -environmental groups. Politically and socially active. these people are likely to be white females living in the Midwest or South. they are happy and eager to express their beliefs with their wallets. They read labels for greenness . to 37 % of the public who are doggedly non-environmentalist. One-third of the US population is classified as Sprouts. Among the most educated of the five groups. recycling. As the technology becomes cheaper and more flexible. is their main green activity. demographics are often a key determinant of intent to buy specific products.purchases and whether they are more sensitive to price or promotions. (adapted from Financial Times) B. the five segments. The Henley report points to the huge scope for disappointment among those who fail to address potential pitfalls. Supporters of such utility "green pricing" programs are "surprisingly diverse. they are twice as likely as the average American to avoid buying products from companies they perceive as environmentally irresponsible. Many Shades of Green In conventional marketing. which have exhibited only modest movement overall since first identified. upscale individuals who say they are willing to pay a premium or forego certain conveniences to ensure a cleaner environment. and products and packages that are made from recycled material or that can be refilled. but membership in . young (median age 37). True Blues are six times more apt to contribute money to environmental groups and over four times more likely to shun products made by companies that are not environmentally responsible. Almost one-third of them hold executive or professional jobs. they are more likely than the average American to purchase any number of green products such as environmentally preferable cleaning products.more than demographics or even levels of concern for a specific environmental issue . which is curbside in many communities. the interest in the potential benefits of database marketing has become "overwhelming". a measure of the enthusiasm currently surrounding database marketing. are so named because of their willingness to pay extra for environmentally preferable products. Although Greenbacks are generally not politically active. This 10 % of the population hold strong environmental beliefs and live them. But in green marketing. They make up that small group of consumers who say they will pay up to 22 % more for green. and are more likely than any of the other groups to hold white-collar jobs. Thus.but if they do not believe they can make a difference. Yet the caution is. Marketing specialists are often torn between admiration for the analytical power that these techniques bring to their desktop and regret that technology is displacing creativity and judgement. break out as in the following. they dedicate time and energy to environmentally safe practices themselves and they attempt to influence others to do the same. It could then adopt different marketing strategies to suit their different needs. they believe they can personally make a difference in curing environmental ills. True Blues. characterized more by indifference than by anti-environmentalist leanings. Their greenness ends at the supermarket check-out: even though Sprouts and 42 . it says. Sprouts. they will likely not act. As of 1996. or empowerment. They are well educated. They are willing to engage in environmental activities from time to time but only when it requires little effort. The most ardent of environmentalists. A quarter of the respondents to the Manchester survey thought that "an increased reliance on IT for analysis has been at the expense of intuition and judgement".although less often than the TrueBlues and Greenbacks neighbors." Levels of concern and feelings of empowerment. Moreover.are consumers' feelings of being able to act on these issues. yet feel too busy to change their lifestyles. not surprisingly. perhaps. including both urban professionals and rural families. Research has corroborated that the most accurate predictor of individuals willing to pay a premium for renewable energy was not education or income. at 22 %. green purchasing within this group is very high. After all. Greenbacks are likely to be married white males living in the Midwest (35 %) and West (24 %). They worry about the environment and support environmentalism. vary among the population. The in-betweeners are more or less pro-environmental–they label themselves "environmentalists" when pollsters ask. what seems to determine willingness to purchase environmentally conscious products . but for various reasons are not fully acting on their concerns Roper has tracked these segments of consumers since 1990. Greenbacks. Greenbacks. Like the True-Blues. consumers may be concerned about a specific issue like fumes emanating from the local power plant or protecting a local wildlife sanctuary and have the time or money to act . A segmentation of consumers isolated by Roper ranges from a 15 % core of educated. representing just 5 % of the US population.
but grudgingly. Grousers are similar to the national average." They are likely to be vegetarians. Three Deep Green Sub-Segments. that green products cost too much and don’t work as well. suggesting that not all categories of products or individual brands are affected equally by consumers’ environmental concerns. they just don’t care. Grousers. and just under two-thirds of them are married. finally. and live disproportionately in the South. population are Grousers. As noted in. Basic Browns have the lowest median income. Animal Lovers. avoid overpackaged products. As social and style leaders. They are far more likely than any other group. Basic Browns are not tuned in or turned onto the environment. although with a somewhat higher proportion of African-American members. buy bottled water. 43 . Sprouts are distributed evenly across the country. Health Fanatics focus on the health consequences of environmental problems. Grousers complain that they are too busy. the third major group of deep greens. so why bother. They comprise the swing group that can go either way on any environmental issue. this suggests the types of behavior that can be expected from a much bigger group of consumers in the future. the True Blues. Animal Lovers check to see if products are "cruelty-free. They boycott tuna and fur. As implied by their name. and water. Often confused and uninformed about environmental problems. True to their name. Sprouts generally won’t choose a green product if it is more expensive than others on the shelf. With the goals of protecting wildlife and keeping the environment pristine for recreational purposes. Their overall attitude is that it is someone else’s problem. and do the laundry with "biodegradable" detergents.S. They worry about getting cancer from too much exposure to the sun. the lowest level of education. With more education. recycle newspapers. A close look at the behavior of the most active segment. to use excuses to rationalize their lax environmental behavior. they are often the source for new Greenbacks and True-Blues. they do so to comply with local laws rather than to contribute to a better environment. They are simply not convinced that environmental problems are all that serious. More than half of the True Blues return glass bottles. When they do. there are just too many other things to worry about. Basic Browns do not make excuses for their inactivity. they feel the responsibility belongs to the government and large corporations. Representing 37 % of the population. The largest of the five groups. that everything they do will be inconsequential in the whole scheme of things. including the Basic Browns. they are only willing to pay up to 4 % extra.Greenbacks have similar median incomes. Not all deep green activists are alike. and boycott tropical hardwood. They recycle bottles and cans. environmental behavior varies significantly across these segments. 45 % of Grousers recycle bottles and cans regularly. They are well educated. Fifteen percent of the U. The indifference of this group makes them less than half as likely as the average American to recycle and only 1 % boycott products for environmental reasons as opposed to the 11 % national average. These people do not believe that individuals play any significant part in protecting the environment. and Animal Lovers. and their favorite causes include manatees and spotted owls. Given their societal influence. they have the highest median age of any of the five groups. demonstrates the relative depth of their commitment. and the long term impacts on their children’s health of pesticides on fruit. protect animal rights. Planet Passionates focus on issues relating to land. and eat organic foods. Instead. their forceful presence can be expected to exert increasing pressure particularly on the Greenback Greens and the Sprouts–underscoring the opportunities of marketers who can win over these influential True-Blues. For the Basic Browns. More than half (56 %) are female and at 43. Health fanatics frequent natural food stores. look for green messages on packages. that it is hard to get involved. Basic Browns. genetic defects from radiation and toxic waste. and. Three percent buy recycled goods compared to 18 % nationally. Health Fanatics. Demographically. air. It is possible to further segment them into three groups mirroring the major types of environmental issues and causes: Planet Passionates. clean up bays and rivers.
we must analyse consumer behaviour 44 . brochure. something cheaper than usual. used for an advertisement. that car is a real bargain battle (n) fight. there's a circulation battle between the two newspapers behaviour (n) people's habits and customs. etc assortment (n) combination or range of goods. he strikes a hard bargain. photographs. Action air time (n) time given to advertising on TV or radio appeal (n) (1) being attractive. acquisition of a company across-the-board (adj) running an ad for five days advertise (v) to announce that something is for sale ad (n informal) short for advertisement advertisement (n) notice or announcement that something is for sale advertiser (n) person or company which advertises advertising (n) business of announcing that something is for sale advertorial (n) an editorial advertisement age group (n) category by which target consumers are classified according to age agent (n) person who represents a company AIDA Attention. publicity material. access to the market account executive (n) an advertising executive who looks after a particular client acquire (v) to buy. Desire. this ad will not reach its target audience awareness (n) being conscious of something: the advertisement increased customer awareness B baby boom (n) high demographic growth baby boomer (n) a person born during a period of baby boom baby shark (n) a small shop practising an aggressive selling strategy banner (n) material on which an advertising message is printed. to acquire a company acquisition (n) act of buying. etc.GLOSSARY A access (n) available entry. agreement on price. the wholesaler's assortment is too wide audience (n) people who watch or listen to a TV or radio programme. 2. Interest. there were banners stretched between the houses advertising the festival bargain (n) 1. (2) argument area (n) a region art director (n) person responsible for creative work in an advertising agency artwork (n) drawings.
the sales force were briefed about the campaign broadsheet (n) large sized newspaper (as opposed to tabloid) brochure (n) publicity booklet. tarpeted mailongs) benefit (n) the advantage that a product brings to the consumer. merchandising. (v) to call someone. 2. 2 (v) to run print to the edge of the page body copy (n) main part of an advertising text Boston Matrix (n) type of product portfolio analysis invented by the Boston Consulting Group bottleneck (n) a restriction in normal flow. 2. we only just broke even breakeven point (n) point at which sales balance costs bridge (v) to print an ad across the centre of a double-page spread brief 1. we canvassed our customers about the proposed new product caption (n) short description attached to a photograph or illustration 45 . (v) visit. they asked for a brochure about our services budget 1 (n) plan of forecast income and expenditure. advertising which is not paid for (BTL) in store (displays. we drew up a pessimistic budget for the next six months 2 (v) to plan forecast income and expenditure bundling (n) offering a group of products or services together at a special price burst (n) a large number of ads over a short period. (n) print that runs to the edge of the page.below-the-line (adj. we've got a bottleneck in our supply operations bottom 1 (n) lowest point.) below-the-line advertising. competitions. 3. to visit. focus interviews are subject to interviewer bias bleed 1. (v) to explain to people before an assignment. joint promotions. rock-bottom price 2 (v) to bottom out. on pack (coupons. lack of objectivity. free samples). the salesman plans to make seven calls. we could advertise in a burst of take it more slowly by-product (n) product which results from manufacturing a main product break into a market (v) enter a market C call 1. the main product benefit was a reduction in time bias (n) prejudice. to telephone call bird (n) a low-priced product used in retailing to attract people into store cannibalism (n) a process when one product reduces the sales of another produced by the same company canvass (v) to visit people to seek their opinions. (v) to call on someone. to reach the lowest point brand (n) a product which can be recognised by a name brand awareness (n) consumer knowledge of the existence of a brand brand equity (n) the value of a brand brand image (n) the public’s beliefs and perceptions about a particular product branding (n) the process of giving brand names to products brand leader (n) brand with the biggest market share brand loyalty (n) customer desire to continue buying the same brand brand management (n) responsibility for a particular brand brand reputation (n) the reputation of a brand brand stretching (n) the extension of a brand towards either end of the market brand switching (n) showing no loyalty to a particular brand butterfly customer (n) customer who easily switches brands break even (v) to balance costs. (n) objectives for a campaign given by an advertiser to an agency. not to make a profit or a loss.
we captured 20 per cent of the market cartel (n) group of companies that get together to fix price or control the market cash cow (n) low-growth.it is at your discretion chart (n) diagram which visually displays information bar chart (n) uses column height to show variation flow chart (n) shows process from first to last step pie chart (n) shows data in a circle cut up into segments checkout (n) place where goods are paid for in a shop cherry picker (n) person who goes from store to store to buy loss leaders. insurance and freight circular (n) a copied leaflet which is sent do many people circulation (n) number of copies of a newspaper sold classify (b) to put into categories classified ads (n) advertisements which are grouped together under certain headings. they need less investment to hold their market share.i. such as metals. we can only cater for twenty people ceiling (n) highest level. foodstuffs.captive (adj) not free. it's important to keep a competitive edge competitiveness (process) of being competitive complementary (adj) completing.f. toothbrushes and toothpaste are complementary products complimentary (adj) given as a gift. adding to or extending.g. the main distribution channel is through supermarkets charge (n) payment for a service. high-share products. they have a good research reputation but they find it difficult to commercialise their products commission (n) money paid to the seller. property. it's difficult to compete with low-priced imports competition (n) process of trying to do better. cost. we received two complimentary tickets for Wimbledon concentrated marketing (n) marketing directed to one segment of the market 46 . often only loss leaders c. we are going to have to agree a price ceiling chain (n) series of shops belonging to one company challenger (n) company which enters a market where others are already established channel (n) means by which goods pass from one place to another. a cold call colour supplement (n) glossy magazine which accompanies a newspaper commercialise (v) to make something make money. a percentage of the sales made. there is no service charge included in the bill . the patients in the waiting room are a captive audience for advertisements capture (v) to take. the competition is very fierce competitor (n) person/company which competes competitive (adj) of a product which competes well. etc compete (v) to try to do better than another person/company. e. we offered the agent a 10 per cent commission commodity (n) goods sold in very large quantities. they produce a lot of cash that the company uses to pay bills and to support other products that need investment catalogue (US: catalog) (n) a sales publication which lists products and prices cater for (v) to be equipped to deal with. to close a sale cold (adj) not approached before. personal client (n) person or company that buys a service close (v) to bring to an end.
e. cut-throat competition cycle (n) a regularly repeated sequence. we'll have to delete some products deliver (v) to transport goods to a customer demand (n) need for goods there's not much demand for these products depot (n) a warehouse. we don't deal with middlemen delete (v) to remove from the range. What is the concept which lies behind the product? consign (v) to send goods to a particular buyer consignment (n) a group of goods sent in one load consortium (n) a group of companies which work together consumer durables (n) expensive items which last a number of years. to organise. we should give them only three months' credit creditworthy (adj) able to buy goods on credit customer (n) person/company that buys goods customise (v) to adapt a product for a particular customer cut-price (adj) sold at a lower price than usual cut-throat (adj. short-term profits credit (n) time given between receiving goods and paying for them. washing machines consumer goods (n) goods bought by consumers as opposed to industry consumerism (n) process of protecting the rights of consumers contract (n) legal agreement between two or more parties contract manufacturing (n) agreement which allows an overseas manufacturer to make your goods copy (n) text of an advertisement copywriter (n) person who writes copy for advertisements corporate (adj) referring to the whole company. we set up a deal with an agent in Houston deal (n) business agreement or arrangement.) goods’ railway station depth (n) different form in a product line design (n) drawing of a product/advertisement before it goes to production differentiation (n) making sure that a product has distinguishing features 47 . we set up a deal with an agent in Huston dealer (n) person/company who buys and sells.it's always quiet after Christmas D dead (ad) no longer active. a dead account deadline (n) date by which something has to be done.g. corporate advertising sells the company not its products counter (n) flat surface in a shop used for displaying goods and serving customers over-the-counter drugs retail sales as opposed to prescription sales under-the-counter illegal coupon (n) price of paper used instead of money. 2. (Amer. the manufacturer has dealers throughout the country dealership (n) right to buy and sell certain products deal with (b) 1. the range is too wide. to do business with. intense. I'll deal with that order.) fierce. this is our normal selling cycle .concept (n) business idea. as part of the promotion we are offering prepaid coupons coverage (n) proportion of a market which is reached. we achieved very good coverage with the evening TV ads creaming (n) fixing a high price to get high.
a door-to-door salesman dormant (adj) not active at the moment.direct export (n) selling direct to an overseas customer direct mail (n) selling a product by sending information through the post direct selling (n) selling direct to a customer without going through any middlemen directory (n) reference book containing listings. a professor endorsed our new drug endorsement advertising (n) advertising which uses famous people to endorse products entrepreneur (n) person who starts and runs a company business environment (n) area which surrounds a company (both physically and commercially) escalate (v) to increase rapidly. sometimes editorial publicity is much more effective than advertising elastic (adj) can change easily. a trade directory discount 1 (n) percentage reduction from the full price. formed from double-income no. modifying a text or a film edition (n) an issue of a publication. 2 (v) to reduce prices quantity discount (n) discount for large quantities trade discount (n) discount to wholesaler or other middleman discretionary (adj) which can be done if you want. although we are a chemical company. to branch out diversification (n) act of diversifying divestment (n) the selling of product lines or companies dog (n) term used in Boston Matrix to describe a product with low market growth and low market share. demand is very elastic . drink and other items display 1 (n) showing or exhibiting goods. there was a display of the latest research at the trade fair in Frankfurt 2.kids E editing (n) correcting. low end of the market. to go down market duopoly (n) only two competitors in a market dinkie (n) acronym for an affluent married couple able to make extensive purchases of consumer goods. sleeping. distribute (v) to send out goods from the manufacturer to the end-user diversify (v) to extend into new business areas.it will not hold up if we increase the price end-user (n) person who actually uses a product or service endorse (v) to say that a product is good. we diversified into publishing. (v) to show exhibits display advertisement (n) ad which stands out from other ads because of typeface. border etc. discretionary income is what is left after you have made all your essential payments dispenser (n) machine which automatically provides food. pietre de moară domestic (adj) refering to the home market door-to-door (adj) going from house to house. prices have escalated recently excess (n) amount which is more than permitted excess capacity more production capacity than is needed for current demand 48 . I'm sure we can awaken some dormant accounts down-market (adj/adv) cheap. this month's edition has an article about roses editorial (adj) referring to the editor. a telephone directory.
the product was a flop focus group (n) a small group of potential consumers who form part of a market survey follower (n) company which follows others into a market forecast 1 (n) an estimate of what will happen in the future 2 (v) to estimate what will happen format (n) layout of a page four Ps Product. the market has fragmented since the competition reduced price franchise 1 (n) licence to sell under a brand name 2. the market is expanding expansion (n) increase in size expertise (n) specialist knowledge exposure (n) 1. (v) to fill with a large quantity. Price. Promotion fragment (v) to break into small parts.exhibit 1. an alarm system on a car field (n) outside the office. (v) to give a licence to someone franchisee (n) person who pays a royalty for a franchise franchiser (n) person who receives the royalty freebie (n informal) a give away. the salesmen are in the field firm (n) a business or partnership fix (v) to agree or set something. usually short-lived family (n) group of products linked by name or packaging feasibility study (n) investigation of a project to see if it is worth pursuing feature (n) 1. (n) thing which is shown at a trade fair or show 2 . the price was fixed at $25 flagship (n) the main or most successful product in a range flier (n) a promotional leaflet (flyer) flood 1 (n) large quantity. a price freeze freeze out (v) to prevent other companies from entering or staying in a market 49 . price is an important factor when deciding our strategy fad (n) a fashion. publicity given to a product or a company 2.(v) to display products at a show exhibition (n) show of goods expand (v) to get bigger. a flood of orders 2. total number of audience reached by an advertisement empty nesters (n) families whose children have deserted the family house F face-lift (n) improvement in the look of a product or a company. an article in a publication that deals with a certain subject 2. an aspect of a product. the company has had a corporate face-lift but nothing radical has changed facing (adj) opposite. we'd like the ad put on the facing page factor (n) an aspect which must be considered. a free promotional product freesheet (n) a newspaper for which there is no cover charge advertising freeze (n) a period when nothing changes. suggests the change is only on the surface. the market was flooded with cheap imitation flop (n) failure.g. Place. e.
items for sale goodwill (n) reputation of a business. especially average prices industrial (adj) referring to manufacturing work. we need to offer incentives to people joining the company indent (v) to start a line of type several spaces in from the left-hand margin. the ad had tremendous impact impulse (n) sudden decision. with no reductions gross profit (n) sales minus direct costs grow (v) get bigger growth (n) increase in size gutter (n) where two pages meet in the middle of a book or magazine H hawk (v) to peddle or offer for sale by calling aloud or going handle (v) to deal with something: we can easily handle more business hard sell (n) aggressive selling hire purchase (n) method of buying something by paying over an extended period hit (v) to reach a target. In never believe all the hype hot (adj) to be hot. if we want to reach the impulse buyers we need good point-of-sale promotion incentive (n) something which motivates.v) exaggerated statements in advertising. we plan to spend more on the ads but use them with lower frequency G galley (n) first proof before a text is made into pages gap (n) a hole. there is a glut of oil going rate (n) the market price for a product goods (n) products. industrial marketing is very different from consumer marketing inelastic (adj) not easily changed. an intangible asset gross (adj) total. we hit the target audience hype (n. the agency thought of a publicity gimmick giveway (n) a free PR gift glut (n) over supply of a product. an order index (n) a statistical analysis of a collection of figures. to be very fashionable I imitate (v) to copy. it's cheaper to buy generic products rather than branded ones gimmick (n) an attractive and clever idea.frequency (n) how often something happens. me-too products imitate their competitors impact (n) strong effect. an unfilled space. there's a gap in the market generic (adj) belonging to a type or class. demand is very inelastic so we can increase prices considerably infomercial (n) information commercial informant (n) person who answers questions in a market survey 50 .
latent demand lateral (adj) to the side. the company leads the world in design leader (n) market leader leaflet (n) small sheet of printed paper used to advertise letterhead (n) name and address of a company printed on correspondence paper licence (US: licence) (n) official permission to do something under licence (adv) manufactured only with permission licensee (n) person who has permission to sell. price etc laggards (n) category of customers in product life cycle who are very slow to buy latent (adj) dormant. the launch was very successful layout (n) arrangement of text and illustrations on the page lead (v) to be the first or the best. (n) introduction of new product. waiting to appear. knocking other people's products is never a good way to sell your own knockdown (adj) very low. main. hidden. these knockdown prices are unbeatable knocking copy (n) an advertisement that presents the advantages of a product over its competitors know-how (n) knowledge about how something works L label (n) a small piece of card or material attached to product to show name. uniforms 51 . this client is a key account knock (v) to criticise. his itinerary took him all over the world J jingle (n) a catchy tune used in advertising journal (n) a professional publication junk mail (n) direct mail advertising which is unrequested and usually unwanted K key (adj) important. the brochure included a price insert introduce (v) to bring a product onto the market. 2. all our advertising is done inhouse insert (n) something which is put inside something else. manufacture etc licensor (n) person who gives the licence life cycle (n) concept of showing the different stages in a product's life: growth is the first stage in the cycle lineage (n) way of measuring cost of classified ads by number of lines literature (n) written information. lateral diversification launch 1 (v) to introduce a new product on the market. to launch a new product introductory offer a special low price to introduce a new product issue (n) edition or number of a publication: Have you seen the latest issue of Newsweek? itinerary (n) places to be visited on a journey.inhouse (adj) within a company. please find enclosed our literature about the product livery (n) a company's own designed used on vehicles. buildings.
TV. adv) cheap end of the market market leader (n) dominant company or product in the market market niche (n) small part of specialised market market penetration (n) amount a product sells in a market market segmentation (n) division of the market into consumer groups market share (n) percentage of a total market which one company or product holds market survey (n) an investigation into a market mass-marketing (n) marketing aimed at a large undifferentiated customer group up-market (adj/adv) luxury end of the market mark up (v) to add an amount to the cost price to reach the sale price mark-up (n) amount added to the cost price to reach the sale price. radio and in a newspaper media coverage (n) reports about an event in the media. at a managerial level manufacture (v) to make a product using machines manufacturer (n) company which makes products manufacturing (n) process of producing. we need good media coverage for the launch of this product media planning (n) decisions about which type and how much merchandising (n) managing the display and promotion of goods in shops middleman (n) person/company who acts as an intermediate step between manufacturer and customer. management by objectives managerial (adj) referring to managers. mature stage in a product life cycle media (n) means of communicating a message mass media (n) means of communicating to general public. e. the retailer's mark-up mature (adj) fully developed. radio newspapers media buyer (n) person who places advertisements on TV.g. customer loyalty loyals (n) loyal customers loyalty discount (n) a price reduction given to loyal customers M magalog (n) magazine and catalogue magazine (n) regular news or special interest publication printed on glossy paper with many photographs mailshot (n) sending of one campaign of direct mailing make (n) brand or type of product manage (v) control and be in charge of. place where a product can be sold.logo (n) design group of letters used by a company as a distinguishing mark loyalty (n) sense of belonging and trusting. 2 possible sales of a product down-market (adj. a wholesaler is an middleman milk (v) to make as much profit as possible. we should milk the product at this stage in its life 52 . manufacturing industry margin (n) difference between sale price and cost price gross margin (n) difference between total cost (including overheads) and sale price market (n) 1. to manage a sales office management (n) controlling and running a business or part of business.
mission statement mix (n) combination of different things.mission (n) long-term objectives and philosophy of a company. there are opportunities and threats in this market organise (v) to plan and operate something so that it works efficiently organisation chart (n) diagram of position of people in a company orientation (n) direction or main area of interest. the marketing mix consists of many elements such as price.pl. product etc monopoly (n) market situation where a company is the only provider of a product or service MRP manufacturer's recommended price N net (adj) after deductions have been made.London O observation method (n) market research method based on watching consumers obsolescent (adj) going out of date because of advances in technology or changes in taste obsolete (adj) no longer used. a distribution network niche (n) small segment of specialised market NYLON .) profits which result from day-to-day business opportunity (n) chance to do something. the product is now obsolete offer (n) statement that you are willing to pay something. market-oriented company outdoor advertising (n) advertising in the open air outlet (n) a place where something can be sold.New York . promotion. a retail outlet overheads (US: overhead) (n) non-attributable day-to-day costs of running a business own-label (adj) term used to describe goods specially produced for a retailer P package (n) a quantity of goods wrapped and sent by mail packaging (material) used to wrap goods for display or for mailing page (n) one side of a sheet of printed page full-page advertisement (n) advertisement taking up a full page half-page advertisement (n) advertisement taking up half a page pamphlet (n) small booklet of advertising information parcel (n) quantity usually small of goods wrapped and sent by mail patent (n) official registration of a new invention 53 . less busy season operate (v) to run or work machine/business operating profits (n. net profit network (n) system which links different parts together. we are always open to offers offer (v) to say you are willing to pay/help off-season (adj) in the cheap.
Are there any new products in the pipeline? pirate (n) person who illegally copies an invention or a copyright product. amount added to price for a prestige product. 2 amount paid for insurance press (n) newspapers and magazines local press (n) regional newspapers national press (n) nationally distributed newspapers press relations (n) PR activity aimed at building good contacts with journalists. customer or market profile profit (n) money made from the sale of a product or service profit margin (n) percentage difference between costs of sales and income profitability (n) amount of profit made as a percentage of costs profit centre (n) part of a company which is considered separately when calculating profit projected (adj) planned/forecast promote (v) to advertise 54 . a pirate copy of the compact disc pitch (n) salesperson's talk to persuade a prospective buyer ploy (n) strategy point of sale.patented (adj) protected by a patent peak (n) highest point peg (v) to fix prices at a certain level penetrate (v) to get into a market penetration (n) percentage of a target market that is reached periodical (n) serious (often scientific or academic) publication which appears regularly pilot (n) a test which will be extended if successful. the longer the print run the cheaper the unit price product (n) thing which is made/manufactured. both tangibles and intangibles (services) products portfolio (n) collection of products offered by the same company productivity (n) measurement of output per worker profile (n) characteristics.range of company products position (n) place or way a product is perceived in a market positioning (n) creating an image for a product in a particular sector of a market poster (n) large notice/advertisement pasted on building or billboard PR Public Relations premium (n) 1. etc price (n) money paid for a product market price (n) price which people are willing to pay pricing policy (n) policy for setting a price retail price (n) price paid by final customer primary data (n) data which must be obtained by active research. an opinion poll portfolio (n) collection. POS (n) place where a product is sold policy (n) way of doing something. a product portfolio . advertisements are most expensive at prime times print run (n) number of copies printed. What is the company policy on discounts? poll (n) survey of sample group. a pilot project pipeline (n) channel of flow. raw data upon which no analysis has been performed prime (ad) most important.
promotion (n) all means of communicating a message about a product or service promotional (adj) used in a sales or advertising campaign. we used a random sample for testing range (n) a series of products from which the customer can choose rapport (n) good understanding between people. the audience was small because the concert had not been publicised pull strategy (n) a process of persuading end-users to buy so that middlemen must stock your goods purchase 1 (n) something which has been bought. qualitative research is based on opinions rather than facts quantitative (adj) referring to quantity. the company has many different publics including the local community.a book. the press and their customers publication (n) thing which has been published . there is a good rapport between the marketing and sales managers rate (n) money charged for a certain time or at a certain percentage fixed rate (n) charge which cannot be changed 55 . 2 (v) to buy purchaser (n) person who buys for a company purchasing department (n) part of the company responsible for buying raw materials and other goods push strategy (n) a process of persuading middlemen to stock your good and to help in the selling of the product to the end-user Q quality (n) the value/worth of a product/service quality control (n) checking that the quality is high enough qualitative (adj) referring to quality. e. magazine etc publicity (n) the process of attracting the attention of the general public to products or services publicise (v) to attract people's attention by informing them. we were asked to quote for the contract quotation (n) estimate of how much something will cost R R&D Research and Development random (adj) done without any system. a promotional price has been set 20 per cent lower propaganda (n) use of the media to convey a biased political message prospectus (n) sales document which tries to convince the customer. usually taking a serious approach.g. for private schools prototype (n) first model of a new product public (adj) referring to people in general publics (n) groups of people categorised for PR purposes. quantitative research is based on measurable data quarterly (n) a magazine which is published four times a year question marks (n) products in the top-right quadrant of the Boston Matrix which have a low market share in a rapidly growing market quota (n) a limit on the amount of goods which can be imported/exported quote (v) to estimate the costs. to make a purchase.
I'd give them a high rating ratings (n) lists of TV or radio programmes according to the size of audience rationalisation (n) process of streamlining a company's operations to gain greater efficiency and scale economics rationalise (v) to make more efficient. reaction retail 1. we had to readvertise the job real (adj) true in real terms actually. we can expect a good return on this project. the money will be refunded if the goods are faulty register (v) to record officially registration (n) process of recording on an official list. (v) to get to an audience readership (n) the quantity of people who read a publication readvertise (v) to advertise again. prices have gone up 5 per cent in real terms recall (n) ability to remember an advertisement receipt (n) a piece of paper showing that money has been paid or something received. RRP (n) price at which the manufacturer recommends a product is sold to the endcustomer red herring (n) a distractor refund 1 (n) money paid back 2 (v) to pay back money. market research resistance (n) a negative feeling towards a product or service. a receipt for items purchased recognise (v) to know somebody or something by sight or voice recognition (n) brand recognition . unprocessed state raw materials (n) substances used as a base for manufacturing reach 1 (n) the number of people who see an advertisement once 2. we encountered a lot of resistance in the market respond (v) to reply respondent (n) a person who answers questions in a survey response (n) answer to a question. (n) sale of goods to the end customer 2. return on investment revenue (n) income received from sales risk (n) chance of failure 56 . (v) to sell goods direct to customers retailer(n) person who sells goods direct return (n) the profit gained from an investment.going rate (n) the usual rate of payment rating (n) value given to something compared with its competitors. product registration rep (n) short for a representative repeat (v) to do something again repeat orders (n) order from a customer for more of the same goods over a period of time repositioning (n) changing the consumer's perception of a product or a service represent (v) to act on behalf of a company representative (n) a salesperson resale (n) selling goods which have been bought once already research (n) finding facts and information. to streamline raw (adj) in this original.ability of a consumer to recognise a brand recommended retail price.
A Mars a day helps you work. you will only find certain items in a speciality store 57 . space in a publication for advertising speciality (n) particular interest. a slump in sales societal (adj) referring to society. (v) to divide a market into different parts segmentation (n) division of the market into segments sell-by date (n) date on a food packet indicating last date that the food is guaranteed to be good service 1 (n) the work of dealing with customers. we sampled the whiskey before buying it 3. sole distributor sourcing (n) obtain goods from suppliers. the scale of the horizontal axis is from 1 to 20 scale up/down (v) to increase/decrease size scarce (adj) not common. the service is excellent. we settled on a price of $400 share (n) market share percentage of a market held by a company or a product shelf-life (n) length of time a product can be displayed for sale skimming (n) setting a high price in order to maximise profits in the short term slash (v) to cut sharply slogan (n) a phrase which is used to sell a product. training. we never have to wait 2. societal marketing soft-sell (n) selling by argument and encouragement rather than strong pressure to buy sole (adj) only. rest and play slot (n) time for a TV or radio commercial. dual sourcing is more secure than single sourcing space (n) advertising space. the photocopier is due for a service services (n) benefits which do not involve production. (n) maintaining a machine in good working order. the high-tech sector is growing fast segment 1. we booked five 30-second slots slump (n) rapid decrease. ice cream sales are very seasonal secondary data (n) research data which have already been collected and are available on data banks etc sector (n) part of the economy or industry.risky (adj) dangerous rival (n) a competitor rocket (v) to raise rapidly ROI return on investment rough (n) a sketch of an advertisement royalty (n) money paid to an inventor/creator/writer by the licensee or publisher S sale (n) act of selling salesperson (n) person whose job is to sell the company's good or services sample 1 (n) a specimen of a product used to show what it is like 2. rare screening (n) evaluating. transportation settle (v) to agree. e. shortlisting seasonal (adj) only happens in certain seasons. (n) a section of the market 2. (v) to test a product on a small group of a target audience saturate (v) to fill something completely. the market is saturated (glutted) saturation (n) a stage in a market's development where there is no room for further growth scale (n) system of grading.g. (v) to try out something.
spending power (n) having money to spend on goods spin-off (n) a product or service which is developed as a result of a main product. we have targeted the 30-45 age group tariff (n) tax or charge paid to enter a market. supply and demand 2 (v) to provide a service or product supplier (n) person or company that provides products or services surcharge (n) extra charge surplus (n) having more stock than needed survey (n) an investigation of a particular market SWOT analysis (n) analysing a company or project by its strengths. opportunity and threats synergy (n) producing better results by working together rather than separately swatch . culture etc) in return for advertising sponsorship (n) act of sponsoring spot (n) a time on TV which is used for advertising spread (n) two facing pages of a publication used for an advertisement stagnation (n) not making progress. remaining constant stand (n) an area for display at an exhibition sticker (n) piece of gummed paper to be stuck onto articles as an advertisement storyboard (n) drawings which illustrate a TV advertisement in its planning stage strategy (n) future action to achieve objectives strategic (adj) referring to a plan of action subcontract (v) to arrange with another company to do some work subcontractor (n) company which does work for main contractor subliminal advertising (n) advertising which conveys a message using subconscious impressions subscribe (v) to pay in advance for a number of issues of a publication or for membership to a society or club subscriber (n) person who subscribes subsidiary (n) a company which is at least 51 per cent owned by a parent company subsidise (v) to support financially. we have submitted a tender for the project 2 (v) to offer a price 58 . tailor-made products target 1 (n) figure or point to aim at. weaknesses. a secondary product sponsor (n) person or company which pays for an event (sports.it makes the audience curious telesales (n) selling over the telephone tender 1 (n) selling over the telephone tender 1 (n) offer for a certain price. the EU tariff barriers teaser (n) advertisement which attracts by giving very little information . the government has subsidised nationalised industry subsidy (n) money given to support a company/organisation supplement (n) special additional part of a magazine or newspaper star (n) a leading product supply 1 (n) providing products service. our sales targets are high 2 (v) to aim at.Swiss watch T tactic (n) step taken as part of carrying out a strategy tailor (v) to design something for a special purpose.
we have chosen an out-of-town venue for the conference vertical (adj) straight up and down. there are too many variables to take into account variation (n) amount by which something changes. unique selling proposition (USP) unstructured interview (n) an interview with no planned structure/questions up-to-date (adj. modern update (v) to bring up to date up-market (adj/adv) expensive. testimonial advertising uses statements from satisfied customers track record (n) experience and results of a company or person over a number of years.territory (n) sales or business area testimonial (n) statement praising a product or service. I traded in my BMW for a Mercedes trade mark (n) registered name or design which cannot be used by another company trend (n) general development or direction.) current. the wholesaler stocks a variety of products vending (n) selling vendor (n) person or company who sells venue (n) place where an event takes place. where has been a market upturn in sales V value (n) how much something is worth variable (n) factor which will change results. seasonal variations account for much of the drop in sales variety (n) a range of things. his track record speaks for itself trade in (v) to give back an old product in part payment for a new product. there is a downward trend in sales U undifferentiated (adj) having no unique feature undifferentiated marketing (n) appealing to all sectors of the market unique (adj) having no imitations. targeted at luxury end of the market upturn (n) a movement upwards. vertical marketing systems involve integrated systems from manufacturer to retailer viewer (n) person who watches television voice-over (n) spoken comments during a TV commercial given by a person not appearing in the advertisement voucher (n) paper coupon given instead of money W warehouse (n) building where goods are stored weekly (n) publication which appears once a week weighting (n) process of giving more importance to one factor when analysing figures white goods (n) products such as refrigerators and washing machines used in the kitchen 59 .
wholesale (n/adv) buying goods from a manufacturer and selling on to retailers wholesaler (n) person (company) that buys from manufacturers and sells to retailers word-of-mouth advertising (n) oral advertising wrapper (n) material which wraps a product webzine (n) Internet magazine yuppie (n) an acronym for a successful and ambitious young person. the word is formed from young upwardlymobile professional 60 .
Business to Consumer BTL .Business-to-Business B2C .advertisement AEs .Brand development index BOTB .Creative Marketing Research COLA .above-the-line advertising ATM .advertising and promotion APC .Chief info officer CPI .Advertising Association ACORN – classification of residential neighborhoods ACV .consumer price index 61 .category development index CEO .British Overseas Board of Trade BDI .automatic teller machine ATR .cost of living adjustment CPI . reinforcement BCAP .computer assisted trading CBO . desire. trial.Boston Consulting Group BDI .Continuous Product Improvement CIO . interest.below-the-line advertising CAT .APPENDIX LIST OF USUAL ABBREVIATIONS AAAA .Advertising Standards Authority ATL .Attention.commodity volume ADSPEND – the total amount spend on advertising by a company AD/ADVERT .awareness. action AMA .American Marketing Association AMSO .Analysis power Tool AOL America on line A&P .Association of Market Survey Organizations A&P .Chief Executive Officer CMIS .Chicago Board of Trade CDI .Country Marketing Information System CMR .All .British Code of Advertising Practice BCG .advertising and promotion APT .American Association of Advertising Agencies AA .account executives AIDA .average propensity to consume ASA .brand development index B2B .
double page spread DRTV .disposable income DIY .Management buy-out MINTELL .Electronic fund transfer at Point of sale ERP .Marketing Intelligence MIS -Marketing Information System MMIS .Committee of Marketing Organization CPM .cost per thousand COD .homes using television ISO .foreign policy FRAC .Internet service provider JIT .Design to Distribution EDMA .gross national product GARP .gross rating points HDTV . price.day after recall DI .International Standard Organization ISP .growth at a rational pace GATT . place.human resources HTML .enterprise resource planning EU .COMO .Limited Liability Company LCA .Do-it-yourself DMU .Defining Advertising Goals for Measured Advertising Results DAR .Food and Drug Administration FDI .General Agreement on Tariffs and Trade GRPs .product.Life-cycle analysis MBO . amount and category 4Ps .direct response television (a method of direct marketing) D2D .foreign direct investment fmcg .High definition television HR .frequency.decision making unit DPS .European Direct marketing Association EFTPOS .just in time Ltd .cash on delivery CPSC . promotion GDP . recency.multinational corporation 62 .European Union FDA .gross domestic product GNP .fast-moving consumer goods FP .Consumer Products Safety Commission DAGMAR .hypertext marked up language HTTP -hypertext transfer/terminal protocol HUT .Multinational Marketing Information System MNC .
manufacturer's recommended price MSN .product relations PPI .strengths. positioning SWOT . Economy.MORI opinion poll MRP .politics.retail price maintenance ROP .quality.run-of-paper RPI . weaknesses. economy. targeting.resale price maintenance ROS . Technology PIMS .new product development PEEST . Environment.point of sale PR .segmenting.Profit Impact of Market Strategy P&G .public relations officer Pty .Push money (a commission to retail salespeople for personally encouraging consumers to buy a product) PR .Small Business Administration SBU .Politics. opportunities. service.quality certificate QSC&V .return of investment TGI .Read only memory ROP .retail price index RPM .target group index 63 . threats ROI .retail price index RPM .public relations POP .run-of-station RRP .point-of-purchase POS .Public Limited Liability Company PLC . environment.purchasing power parity PEEST . value R&D .point-of-sale PRO .Proprietary Company QC .Research and Development ROM .share of voice STAR .system of national accounts SOV . cleanliness.Microsoft Network NPD . technology PLC . society.situation task action result STP .strategic business unit SNA .run-of-station programmes RPI .run-of-paper (programmes) ROS . Society.product life cycle PM .producer price index PPP .Procter and Gamble POS .recommended retail price SBA .
RPM .Top Quality Management/Marketing TUC .Vertical Marketing System WIPO .Values and life style VMS .World Intellectual Property Organization WTC .resale price maintenance TM .Unique selling proposition VALS .Worldwide web 64 .Trade Union Congress UCSE .Works test certificate WWW.Uniform Franchise Offering Circulars USP .unsolicited commercial e-mail UFOCS .training manager TQM .
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