—_OO———— MARKETING A, Discussion Answer the questions below, then compare your answers with your friends’ and discuss them. 1. What do you think of when you see or hear the term markeling? Write down ideas you have in your mind. 2, What are the four P's? 3. List the various steps or actions that are involved in the marketing process. Think of all steps that must take place to get goods or services to the customers. B. Reading THE FOUR P's Marketing is a part of business that involves a complex area of activities, such as buying, selling, market research, transportation, storage, and advertising. In simple terms, marketing means the movement of goods and services from manufacturer to customer in order to satisfy the customer and to achieve the company’s objectives, Marketing can be divided into four main elements that are popularly known as the four P's: product, price, placement, and promotion. Each one plays a vital role in the success or failure of the marketing operation. The product element of marketing refers to the good or service that a company wants to sell. This often involves research and development (R&D) of a new product, research of the potential market, testing of the product to insure quality, and then introduction of the product to the target market. The price element of markeling refers to tha charge for the product. There ara three pricing options the company may take: above, with, or balow the prices that ils competitors are charging. For example, if the average price Dipindai dengan CamScannerof a pair of women's leather shoes is Rp 270,000, a company that Charges Ap 230,000 has priced below the market; a company that charges Ap 270,000 has priced with the market; and a company that charges Rp 330,000 hag priced above the market. Most companies price with the market and sell their goods or services for average prices established by Major producers in the industry. The producers who establish these prices are known as price leaders, The placement element of the marketing process involves getting the Product to the customer. This takes place through the channels of distribution, The common one is as follows: manufacturer > wholesaler > retailer > customer. Manufacturers distribute products to wholesalers; wholesalers generally sell large quantities of a product to retailers, and retailers usually sell smaller quantities to customers. The promotion element of marketing refers to the communication about the product that takes place between buyer and seller. There are two Major ways promotion occurs: through personal selling, as in a department Store or market; and through advertising, as in a Newspaper, magazine, poster, billboard, or television. The four elements of marketing — product, price, placement, and Promotion — work together to develop a successful marketing operation that Satisfies customers and achieves the company's objectives. C. Comprehension 1, Answer the following questions based on the above Passages, a. What is marketing? b. What are the four P's? ¢. What's involved in the product element of marketing? d. What are the threa pricing options that a company may take? e. Using Rp 500,000 as an average price for a briefcase, what are examples of pricing above, with, and below the market? f. What does placement involve? . g. What is the common channel of distribution? Dipindai dengan CamScannerh, How to satisfy customers and achieve company's objectives? j. Whatis involved in the promotion element of marketing? 2. Circle the letters of the answers that best complete the sentences below. a. The product element refers to ........ A. the four P's: product, price, placement, and promotion B. testing of a product to insure quality C. the goods or services that a company want to sell D. getting the product to the customer b. The four main elements of marketing are popularly known as ......... A. the four P’s: product, price, placement, and promotion B. the movement of goods and services C. wholesaler, retailer, manufacturer, and customer D. buying, selling, market research, and selling c. Most companies price ...... the market. A. with B. below C. beyond D. above d. Acommon channel of distribution is ........ A. wholesaler > retailer -> manufacturer > customer B. manufacturer > retailer > wholesaler > customer C. retailer > manufacturer -> wholesaler -> customer D. manufacturer > wholesaler -> retailer -> customer €. The two major forms of promotion are . A. personal selling and advertising B. personal selling and newspapers C. selling advertisement D. selling advertisement Dipindai dengan CamScannerD. Vocabulary 1. Match the terms in the Jeft-hand column with their synonyms in the right. hand column. Copy the corresponding letters in the blanks. a. manufacturer A. client b ‘ customer B. rival; opponent c.___ storage C. please d.____ competitor D. happen; occur e. objective E. cost f.___ satisfy F. accomplish g.___take place G. goal h.___ charge H. stowage i achieve "producer 2, Complete the following sentences with these words. vital retailer take place charge price leader placement insure prices wholesaler The most common channel of distribution is manufacture f 1 > wh > > consumer, Distribution can, ie through slightly modified channels, For exa ie. products are sometimes sold directly by the mple, manufacturer, rather than by the retailer. Generally apn” MMe * Y Wi lower than retailers and sat desalers quantities, Together, these channels of distribution tin larger toleinthe_ element of marketing, ray Dipindai dengan CamScannerE. Classification Various problems that may occur in the marketing process ave listed below. Determine to which of the four P's each problem is most closely related. Mark the appropriate category of product, price, placement, or promotion with a tick. No. Problems Prd | Pre | Ple | Prm 1. | The advertisement gives false information. 2. The product is dangerous. 3. | The product is not available in enough stores. 4, The product is too expensive. 5. _| Asalesclerk is rude to customers 6. | The product is sold during the wrong season. 7 The Product is not available in your favorite stores. 8. The advertising is offensive 9. | The product is of poor quality. Notes: Prd: Product Pre: Price Plc: Placement Pim: Promotion Figure 6.1 Problems in Marketing Process F. Application Determine whether the following matters ate PRODUCT, PRICE, PLACE- MENT, or PROMOTION. Fill the blanks with the appropriate abbreviations, Dipindai dengan CamScannerExample: PROMOTION all pon owns G, Information Transfer advertising. sales promotion point-of-sale placement the specifications of the actual goods or services personal selling discounts the process of setting a price for a product warranties branding publicity Promotion Study the figure on Indonesian advertising in vari i 0 sian 9 in various media below. Then answer the questions by filling in the blanks Provided in the sentences. Product Foods and beverages Vehicles Housing Hotels Stationary 9 primary needs Electronics Figure 6.2 Indonesian Advertising In Various Media Percent total advertising (Fictitious data) Dipindai dengan CamScanner4, What percentage of advertising for vehicles is found in magazines? . And in newspapers? 2. Which products have 45% of their advertising in newspapers? ____ Which products have 26% of their advertising on WV? 3, Which products have the highest percentage of total national advertising? Which products have the lowest percentage of total national advertising? Inwhich medium is most of the advertising for vehicles done? n _ What does the number 1 refer to? What does the number 2 refer to? _ What are the various advertising media listed in the table? w a Which medium seems to have the largest percentage of advertising’? How did you arrive at this answer? 8. Ifyou were promotion manager for a typewriter company, in which medium would you place most of your advertising? 1 |. What general statement can you make about the various advertising media utilized by the food and beverage industry? H. Follow-up 1. Bring in a newspaper advertisement and analyze it with regard to its imended target market. Decide what type of appeal is being made to the senses, to economy. etc. Also analyze the advertisement for its factual representations and ils implications. Compare your obser valions with those of your classmates. 2. Take a walking tour of the city of town and write down five adver- tisements. Discuss and share these ads with the class. 3. Read the loliowing passages. Dipindai dengan CamScannerText 1: SEVEN Ps ‘As well as the standard four P’s (Product, Pricing, Promotion and Placement), services marketing calls upon an extra three, totaling seven and known together as the extended marketing mix. These are as follows: * People refers to any person coming into contact with customers can have an impact on overall satisfaction. Whether as part of a supporting service to a product or involved in a total service, people are particularly important because, in the customer's eyes, they are generally inseparable from the total service. As a result of this, they must be appropriately trained, well motivated and the right type of person. Fellow customers are also sometimes referred to under ‘people’, as they too can affect the customer's service experience. ¢ Process refers to the procedure involved in providing a service and the behavior of people, which can be crucial to customer satisfaction. The quick, efficient, and effective process, and supported by friendly, interesting, and pleasant services will determine the success of the communication. Physical evidence relets to the chance provided for the potential customers ta see what a service would be like, such as case studies, testimonials or demonstrations. Unlike a product, a service cannot be experienced before it is delivered, which makes it intangible. Thi: therefore, means that potential customers could perceive greater eh when deciding whether to use a service. To reduce the feeling of 7 thus improving the chance for success, it is often vital to offer pot ne customers the chance to see what a service would be like, potential Exercise: 1. Whatis the extended marketing mix? 2. Why are people important in marketing? 3, What does physical evidence means? Dipindai dengan CamScannerText 2: THE TARGET MARKET This combination of the four P's is known as the marketing mix. The marketing strategies of determining product, price, placement, and promotion are not planned in isolation. The elements of the marketing mix focus on the consumer. In order to develop a successful marketing mix, researchers first ask two important questions: who is going to buy the product? and what is the potential to sell this product? The target market is the group of customers or consumers who will probably buy the product. The company directs its marketing efforts toward this group of potential customers who form the target market. Once market researchers have determined the target market they wish to appeal to, the company can develop an appropriate mix of product, price, placement, and promotion. The company attempts to match consumer needs or mold consumer desires to the product being offered. For example, if the target market is high-class teenagers, the marketing mix might consist of: product: sport shoes, price: above the market, placement: department store, and promotion: advertisements on a TV broadcast. The success of a marketing mix depends on the knowledge about consumers and their buying habits gained through market research as well as correct identification of the target market. Strategies of product, price, Placement, and promotion are blended in order to reach a chosen group of consumers (Adapted from Dowling and McDougal, 1982). Exercise: 1. What is the marketing mix? 2. What do the elements of the marketing mix focus on? 3. Whatis the group of customers who will probably buy the product known as? 4. Why are the consumers who make up the target market for a product referred to as “potential” customers? 5. What does a successful marketing mix depend on? Dipindai dengan CamScanner