What is a market? What is marketing?

The phrase 'the French market' is jEt another way of saying Mdketing begins wiih 'the fou Ps': produ€t, place,
'lhe population
of France', but marketing professionals rhinl promotion dd pri.e. These combine to form rhe lrEkeiing
of a mrket in a more specific way. The whole population of mix for my one product or serice. Elemenis of'the four Ps'
a comtry cm be broken down into market segm€nts. are shom in the table:
In a B2C (business to consumer) company, customeF cm be
divided according to:
o Demographics: age group, gender ethnicity, . Features and associated a Retailer
income,oc.uparion.socialclass,maritai slatus.
. Psychographics: pe$onafity, attitudes, lifestyle. . Branding (ie product . B2Bdistributor
i Geog.aphics:natio.al or r€gionatdivisions, identity)
city-centre or suburban customers. . Packaging (eg *rer€ nay
i Bercfits looked for by the customer: price, overall value, be a bag inside a box)
sPecific features, image with peerr eas€-of-use,se(ice, etc. . libel (eg printed
o Current purchasing siruation of the cusiomer: brands used on the package)
now how and where purchas€d, how and when used.
For a B2B (busineEsio business) conpany there may be oth€r
factors. For example, a B2B company needs to know the typ€ . Advertising Extemalfactors(e8
of c$tomer (eg manufactur€r, relaile.), the industry group of . Salespromotions (eg ehsnciryof demand,
the customer (eg toy manufacturer or clothing manufacturer), special offers, discounts) customerexP€ctahons,
their slze (eg salesvolume,number of retailoutlets),the competitor'sproducts)
ownership (ie pfivate or public)/ etc. B2B custoners are less
interested in image and more hierested h ihings like ability
(e8profit required,
to me€r changing patterns of demand, consistent quality, Just- mark€tsharerequired)
ln-Time delivery, etc. They're also reached in very different
ways suchas tlade showsand by kavelling salesreps. As wel as'thefouI Ps',the term'marketing'also includes
marketingstrategy.At its simplest,this includes:
Who should we target? . Analyzhg the busin€ss€nvironmentusing market
once a conpany has decided how
to segment the market, it can then . D€velopingnew productsand new mark€is.
do any one of the following: . R€spondhgto extemalforc€s:the economy,activity of
. Target the mass markel the competitors,innovation,cultural change,etc.
'The four Ps' arecoveredin moredetail in the next fou
comPany tarSets one rarSe
market with a single marketing
sbategy This was popular in
the early days of ma*eting
(eg consurner products in the
50s and 60s),but rew compmies
today view this option as

Targei multiple segments:here, each segment will have

its own marketing strategy. Most large cosmer products
firms do this - they offer muliiple products at different
pnce points with different messag6, all within the same

Targei one egmmi: a niche market- The compmy ta4ets

a small market, often with just one or two very sp{ialized

Targei individ@l customers with tailormde prcducts:

there may be a peEonal dialogue to establish sp{ializ€d
requiremenis, or the compmy my us€ data about
previous purclEses (eg Amazon's b@k Eommenclabons
based on what you have previously ordered from their
site). The lntemet has bem the catalyst for this approach-
!14
marketing agency
20 MARKETSAND MARKETING
market forces: the forces that decide prices level in an economy or
trading system. => tac nhan thi truong
Exercises marketing mix = marketing hon hop = marketing 4P

2O.1 Finda word in the text oppositethat mat<heseach 20.4 Compl€teeachsenten<ewith a word partnership
definitionbelow.Thewords app€arin order. from the previousexercise.
I separaie partr segments 1 lf the governrnent thenprc€saresetby
doesn'tinterfere,
, rhc f).r .l h.i.n m: a .. {om: p gender market forces
3 peopleof the sameageor who beongto the sam€so.al 'Th€four Pl g ve th€ marketing mix for a partcul.r
group peers
a (fornal) bry nt) purchasing 3 The percenlageof the marketthat yoLrhaveis your
5 lrhreewordslthe waysthata productis market share
neededn dlfferentamounts at d fierentlrme\ 4 Sponsored inkson Gooqe (when. customer
s-"arches
ior
patterns of demand = nhu cau dao nguoc ,oJr p odLCrlype'r'
a \ef Fffecl.e marketing tool
a ..farnal pboptatohose prodJ 15,o a corpa^i
20.5 Readwhat a marketersaysabout the historyof a
reps
7 try to nf uefce;a m to h 1 target
8 possib e andlikelyto succeed feasible
9 (twonords)particuLar prcesth.t haveb€enspe(ialy we choseto locusou. strategyon people n their ate
I o.P1/egrq o0 o i 90) price points teens and so we aunchedthe productat a seresof big
1A bi/o wordi s.r,allgtoupof potental cunom€Bwho have rock concertsoverlhe summerWe soongainedmarket
s milarneedsor nterests niche market = thi truong ngáchshare.and afterlwo yearswe were lhe marketeader
I 1 eometh ng that rcsuts In mportantchanqee But afiera whileconsumers wanledsomethng d Iterenl
catalyst = xúc tác Ourcompetilors noticedth s betorewe d d, andoursales
dropped dramatcallyRetaefs stopped stockng our
Now do the sam€tor the words in 'What is marketing?' brandandwe hadlo stopmakng theproducts. Wehada
big meetingand thoLrght againaboLrlour wholeslrategy
12 rmportant partsot a product features Weagreedlhalwe wouldtry onemoret me
13 peceof paper(orothermalerial) withinlormation
on t that s attached to an obl€ct(orpr nredon o Th€ phras€5b€low <anall b€ uied with 'the market'.Put
label lh€m into order(1-8)5o that they matd the orderin the
14 (thrcewads)how mrchsaesvo umechanges whenyou
change theprce elasticity of demand = co giãn cu
a be torcedout ol 6
20.2 Write €achof thesewords nextto its besr b prJla productonlo 2
definition:advertisirq,ma*eting, prcmotion,publi.ity. 3
1 allthewaysusedto encoLrr.ge demandfor a produci 7
(the most qenetai word) e decideto target1
marketing
an activiy thai attractspeople3 attenton io a product 8
(oneaspectat # 1) q f. I to seech.nqes n 5
promotion
t€l ng peope about a product(eg of th€ ieevisiof, 4
n magarines)in orderto peruade them to buy it 20.6 Divide the phrases in the box into three groups,
(one aspe.t af t2) advertising based on their meanings.
any nformaiionthat m.kes peope noti.e a product(thE
may be unp anfed, out of the coniro of the companyand be drivenaut ol apen up .orner wittulaw frcn
publicity entet .apture penetrate doninate
20.3 Matcheachword on the left with five words on the
right. Checkany unknownwords in a dictionary be driven out of
enter capture
dqency open up corner withdraw from
gn
carnpa penetrate dominate
seepage148Iorsomediscussion
topics.

marketnq

nrateqy
market leader, price, share, sector, forces
s a r e sa n d m a , k e t , n g . 1
marketing campaign, agency, strategy, tool, mix