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Marketing concept began to develop from 1930 when great emphasis was placed on selling. In order to sell successfully and earn the profit it is necessary to identify the needs of potential customers. For gaining that goal all resources of the enterprise should be directed to realize its goods or services. To realize that task the proper market should be determined. To evaluate the market in which the business exists it is necessary to analyze the attitude of the customers and competition. The attitude of the customers depends on the composition of the population. The profitable business should take into account and analyze the following characteristics of the population: education, income, employment, ethnic composition, average family size, age groups.In order to accomplish its objectives, the business should develop marketing policies providing opportunities for satisfaction of customers' needs and getting profit. To make effective marketing policy, it is necessary to develop the marketing strategy of the enterprise. This strategy includes two elements: the market segment and the market mix. The market segment is the part of the market where your business can develop surely and profitably, resisting competition and getting good will of the customers. In other words the market segment may be called target market. The market mix is intended for achieving the customers' satisfaction and profitability. It consists of four elements referred to as the four Ps: the product, the place, the price and the promotion. Otherwise, in the market it is necessary to have the right product, at the right time, in the right place and to call attention to it by means of advertizing. All those actions constitute the process of marketing. The task of marketing is to find customers and find out what they need. Thus, it is possible to say that marketing is such business activity that directs the flow of goods and services from producer to consumers. One should not forget that such activity includes product transportation, storage, pricing, advertizing and selling with maximal satisfaction of customers' needs and earning profit. There are various types of marketing: macro, micro, differential, non-differential, conversional, concentrated, mass, supporting, counteracting synchromarketing. All that is indispensible part of economy, which, in its turn, is typically divided into two parts: macroeconomics and microeconomics. The former studies the aggregate economic behavior of the economy as a whole, the latter – the individual behavior in the economy, of the components of the larger economy. The distinction between macro- and microeconomics is also reflected in discussions of business investment. In macroeconomics we want to know what determines the aggregate rate of business investment and how those expenditures influence the nation’s total output, employment, and prices. In microeconomics we focus on the decisions of individual businesses regarding the rate of production, the choice of factors of production, and the pricing of specific goods. Marketing, 1987 The microeconomy to-day, 1991 Exercise I. Remember the correct pronounciation of these words: emphasis [‘emf sis] resource [ri’s :s] characteristics [,kǽrikt ’ristiks] streategy [‘strǽtid i] advertising [‘ǽdv taiziη] microeconomics [‘maikrou,ik ’ miks] macroeconomics [‘makrou,ik ’n miks] Exercise II. Learn the following English terms and their Russian equivalents. Give your own sentences with them: to accomplish objectives – достигать целей; to provide opportunities – предоставлять возможности; market segment – сектор рынка; market mix – состав рынка; differential marketing – дифференцированный маркетинг; concentrated market – концентрированный рынок; supporting market – поддерживающий рынок; counteracting market - противодействующий рынок; synchromarketing – синхромаркетинг. Exercise III. Read the following verbs and verbal phrases and pay attention to the prepositions used after them: to depend on… to take into account… to provide for… to be intended for… to consist of… to refer to… to divide into… Exercise IV. Look through the text to find the English equivalents of the following terms and give the sentences with them: делать упор на что-либо; определять потребности; достигать целей; оценить возможности рынка; состав населения; сектор рынка; состав рынка; целевой рынок. Exercise V. Find in the text the sentences that correspond to the following statements:
Exercise VI. Translate the following sentences into English:
Exercise VII. Answer the questions about the text:
Exercise VIII. Find in the dictionary the definitions of the synonyms with the meaning of “прибыль, доход”: dividend, profit, earning, income, reward, advantage, yield, receipt, revenue. Exercise IX. Read the text and divide it into some meaningful parts, giving the proper title to each of them: The market development situation presents an interesting strategic challenge. Management can influence the direction of market development, but it faces the risk of creating a future competitive disadvantage. Marketing advantages can be achieved in various ways, the finding of which is not easy. A good marketing strategy is a combination of penetrating analyses, sound judgement, and an intuitive sense of what is appropriate for the situation. Strategy selection is facilitated if one divides the task into two parts. First, the strategic fit of the options under consideration is determined; second, important selection criteria are used to identify alternatives that appear the most promising. The marketing strategy selected by each corporation is matched to the strategic factors that are important in its competitive area. Marketing strategy helps to determine whether a business can survive and grow in to day’s highly competitive business environment. A marketing advantage is essential for all firms. Customer satisfaction is the responsibility of everyone on the corporate team, not just those assigned to marketing positions. Exercise X. Write a summary of the text with the following phrases:
Exercise XI. Reproduce the main text, using the words given in Exercises II, III, IV. Exercise XII. Practise talking about:
Exercise XIII. Read and learn the following flashes of conversation. Use them in your own dialogues:
Exercise XIV. Work in pairs of two or three and talk about marketing:
Vocabulary:
Section III. Joint Venture Introduction As Canadian companies develop, many businessmen look to the export market as an area for expended sales. In so doing, they often face tariff and non-tariff barriers erected by various countries to restrict imports and encourage local industry. In is possible, however, to penetrate these barriers by way of a joint venture in the target country. This paper suggests some considerations to be kept in mind in the development of international joint ventures. Market study The first step toward a joint-venture investment is a market study. One can narrow down the choice of potential host countries by preliminary studies done right here in Canada. Sources of information are: the Department of Industry, Trade and Commerce, which includes the very helpful Trade Commissioner Service, the Canadian International Development Agency, Trade Associations, Chambers of Commerce, trade publications, and so on. On-site visit Having selected a potential foreign market, the next step is to visit the chosen country and do an on-spot market study as carefully as you would do a market study for a new product line or a new plant investment in Canada. You will want to be assured that your product meets the market need or can be adapted to it in terms of specifications and designs. You will want information on price levels, the transportation and distribution system, the availability or local skills at the factory and administrative level, the extent of local educational and training facilities, the local competitors and their strengths and weaknesses. If you plan to begin the venture by shipping parts from Canada for assembly in the host country, you will want to know the customs regulations, valuations duties and the efficiency of ports of entry. You may find during this exercise that some countries do not wish to have your particular product or plant. Such countries have concluded that additional plants in your product line will only fragment the market or threaten existing companies. If you plan to sell to government departments or agencies, do not assume that you will have an equal and fair opportunity to bid on tenders. Very carefully check with the local authorities as to whether or not you have a chance of becoming an authorized supplier. You should also determine if there are any language requirements that could present problems in conducting business. Initial representation If you decide to test the market by exporting from Canada, you must choose your agent carefully, ensuring that he/she has the marketing skills necessary to represent you. In reaching agreement with your agent, you must keep in mind your longer-term objective of manufacturing your product locally so that the length of your agreement can be established accordingly. Further discussions In general, governments appreciate that foreign investment can, and in most cases does, bring substantial benefits to their economies. This is especially true of development nations. However, it is necessary to keep in perspective the objectives and desired benefits which are sought by the host government through such investment. These may include job creation, regional development, the development of technical skills and local technology, and benefits to local suppliers. Discussions with the relevant local authorities will indicate if your particular project conforms to the social and economic goals of the host country. In addition to discussions with government officials, you are also advised to discuss the investment climate with local banks. Canadian banks, the Export Development Corporation, are with foreign investory already operating in the country. Choise of partners When you have decided to establish a manufacturing facility or to invest in resource development in a foreign country, you face the task of choosing a partner. We at Canada Wire believe this to be the most important consideration in the establishment of a joint venture. Since our company has a policy of taking a minority interest in overseas partnerships, you will understand the importance we place in choosing a partner. Finding an appropriate partner requires a careful identification and selection process. The key to making the right choice is identifying a common interest on both the short and long term. Complementary characteristics and complete mutual trust are also crucial. Our company's experience indicates that a period of one year or understanding or the absence of common interest can be identified during the course of an extendive and extended evaluation process. It may happen, for example, that while partners share common short-term goals, their long-term goals conflict. Differences can either be resolved or be the basis for withdrawal from proposed partnership. Local management Our company believes that the joint venture should be managed by local people. They are more sensitive to the political, social and economic conditions in which the company must operate and they are better able to represent the company to the customers, the government and the people. While our company may provide short-term expertise in some aspects of the business, reliance is placed on local management. It is therefore important that partners possess first-class management skills. |
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