A university student.

You are writing your course-paper on the factors of marketing management process. Think up a list of questions you will ask a well-known marketing specialist. When you meet your interviewee, introduce yourself, explain the reason for your visit and ask the questions.

Make use of the following helpful phrases:

To start a conversation:

Excuse me, aren't you...

Let me introduce myself. My name is...

If you would allow me to...

To request:

If you could... I'd be very grateful

Do you think you could possibly...

I was wondering if you could help me...

To get information:

I hope you don't mind my asking, but I'd like to know...

Sorry, I don't quite understand why (where)...

Could you tell me a bit more about...

To thank:

I cannot thank you enough...

It's really very kind of you...

To say good-buy:

It's been really nice to know you.

Well, it's been nice talking to you, but I really must be going now.

Sorry to rush off.

A well-known marketing specialist:

You meet the university student, listen to his (her) story and an­swer his (her) questions. Then you ask him (her) some questions about his (her) family, his (her) research work and plans for the future.

Make use of the following helpful phrases:

To deal with questions:

I'll be pleased to answer any questions you may have.

I am afraid there's no easy answer to that one...

To state one's position:

I think I ought to say right from the start that...

If you would allow me to give a brief outline of...

To make a point:

I think I should mention here that...

I would like to say here that... I believe you know that...

To recommend:

If I were you I would...

The time is not far off when...

To make suggestion:

I was wondering if you'd ever thought of

Might be an idea to...

Why don't you...

To say good-bye:

Good luck with you...

I hope everything goes well.

Take care.

XV. Case Study.

The artist

George Clinton is one of the most respected and influential musi­cian/songwriters in the popular music industry. Since the early 1980s, he has been instrumental in the ongoing development and refinement of what is now called Urban Contemporary music. He is considered the Father of Funk, the dance-oriented rhythm and blues that has dominated African-American popular music in the last 20 years. He has also in­spired musical genres from Hip Hop to Rap.

Clinton's best-known work was in the late 1980s with the groups Parliament and Funkadelic and their amalgum P-Funk. All of the ma­jor songwriter/producers (the people who dominate Urban Contempo­rary music in the 1990s) claim Clinton as a mentor and an influ­ence — this includes Prince, Jimmy Jam and Terry Lewis, Teddy Riley, L.A. and Babyface, etc.

Clinton is probably the second most sampled songwriter, behind only James Brown. «Sampling» is a term unique to the late 1980s and 1990s, and is the result of the increasing use of computers in the crea­tion of music. A «sample» is a small piece of a previously recorded song that is used in a new song or composition. Samples vary in length but generally involve a few bars of a song — sometimes only a single instrument (a guitar solo, a bass line) or all the elements (rhythm, vo­cals, solos). Clinton's music is sampled primarily by Rappers.

Clinton's persona is, to some extent, better know than his music. A frequent guest on David Letterman and MTV, BET, and other video-oriented programs, Clinton's long, rainbow-colored hair is a familiar trademark. His irreverent humor pokes fun at the normal im­age of the rock'n'roll or R&B Rhythm and Blues star. And, although he has not had a «hit» record (sales of more than half a million units) in years, he still has a large, highly loyal following.

The company

Paisley Park Records is a small record label, associated with and distributed and marketed by Warner Bros. Records. Paisley Park chooses its acts and then oversees the recording, marketing, and pack­aging. Warner Bros, then manufactures the records themselves, dis­tributes them to retailers, and takes the primary responsibility for marketing the records—advertising, contacts with radio stations, tele­vision video, etc.

Make no mistake about it: Paisley Park is Prince's record label. Al­though run by Alan Leeds, Prince himself is the final decision maker on who the label signs and records. In that sense, Paisley Park is different from most other record companies. Most companies have large A&R (artists and repertoire) staffs; these are people who weed out the many artists seeking to be signed to the labels. At Paisley Park Records, the de­cisions on who to sign are more likely to be personal than at other labels.

The issues

The marketing problem is that George Clinton has not had a hit re­cord in years. In 1999 he signed a new recording contract with Prince's Paisley Park Records label. And the addition of George Clinton to that label's short roster probably was more a personal deci­sion by Prince — a sincere fan of Clinton — than a purely business decision. Upon signing, Prince immediately gave Clinton a small part in his moderately successful film, «Graffitti Bridge».

A significant part of Clinton's problem is that he doesn't seem to fit into any of the many market segments within the music industry — particularly the two key conduits for marketing in the industry, radio and music video television. Although he is clearly a legend in the Ur­ban Contemporary market, Urban Contemporary program directors and DJs are not interested in his new music—they perceive Clinton as an «oldie» performer, and are less likely to play his new material. Pop or CHR radio (Contemporary Hits Radio, the modern equivalent of Top 40 radio formats) see Clinton as too much an Urban Contempo­rary artist for their formats. And, though MTV will interview Clinton at almost any opportunity, they are very slow to play his videos. The results are that Clinton's records generally sell about 100,000 units each, based on the loyalty of his core audience.

Alan Leeds, Clinton, and his advisors want to develop a long-tent strategy to reposition George Clinton. When Clinton signed will Paisley Park, he had already completed an album, «Cinderella The­ory,» that was to be released on that label. The Paisley Park strategy!! to use the marketing of «Cinderella Theory» to prepare the way for the release of Clinton's future albums.

As they look at Clinton's past music and marketing, several fea­tures emerge:

Clinton's irreverent humor that viewers see on MTV and the David Letterman show is carried through on Clinton's longstanding use of «cartoon» graphics on his albums.

Clinton's lyrics for his music have great depth and sophistica­tion, a fact often lost on listeners and viewers.

Traditionally George Clinton has been almost the only artist featured in his music—seldom using important backup support.

As they analyze the opportunities for repositioning George Clinton, they see two key dimensions to the music segments relative to Clinton's opportunities: (1) a traditional-to-contemporary dimension and (2) a se-rious-to-funky dimension. They reach two big decisions: (1) make Clinton more «contemporary» on the first dimension and (2) make Clinton more «serious» on the second dimension. Given these market­ing strategy decisions, what actions should George Clinton, Alan Leeds, and Paisley Park Records take to implement these plans?

Questions:

1. What are some of the key reasons why an artist of the stature of George Clinton has problems getting a hit record at this stage of his career?

2. What specific market segments would you target to give new life to George Clinton's career?

3 What marketing actions would you recommend to achieve the reposi­tioning of George Clinton?

TEXT В

DEVELOPING THE MARKETING MIX

Once the company has decided on its positioning strategy, it is ready to begin planning the details of the marketing mix. The marketing mix is one of the major concepts in modem marketing. We define the marketing mix as the set of controllable marketing variables that the firm blends to produce the response it wants in the target market. The marketing mix consists of everything the firm can do to influence the demand for its product. The many possibilities can be collected into four groups of vari­ables known as «the four P's»: product, price, place, and promotion.

Product stands for the «goods-and-service» combination the company offers to the target market. Thus, a Ford Taurus «prod­uct» consists of nuts and bolts, spark plugs, pistons, headlights, and thousands of other parts. Ford offers several Taurus styles and doz­ens of optional features. The car comes fully serviced and with a comprehensive warranty that is as much a part of the product as the tailpipe.

Price stands for the amount of money customers have to pay to obtain the product. Ford calculates suggested retail prices that its dealers might charge for each Taurus. But Ford dealers rarely charge the full sticker price. Instead, they negotiate the price with each customer, offering dis­counts, trade-in allowances, and credit terms to adjust for the current competitive situation and to bring the price into line with the buyer's per­ceptions of the car's value.

Place stands for company activities that make the product avail­able to target consumers. A product reaches customers through a channel of distribution. A channel of distribution is any series of firms (or individuals) from producer to final user or consumer.

Sometimes a channel system is quite short. It may run directly from a producer to a final user or consumer. Often it's more complex, in­volving many different kinds of middlemen and specialists. And if a marketing manager has several different target markets, several chan­nels of distribution might be needed.

Ford maintains a large body of independently owned dealerships that sell the company's many different models. Ford selects its dealers carefully and supports them strongly. The dealers keep an inventory of Ford automobiles, demonstrate them to potential buyers, negotiate prices, close sales, and service cars after the sale.

Promotion stands for activities that communicate the merits of the product and persuade target customers to buy it.

Promotion includes personal selling, mass selling, and sales pro-! motion. It's the marketing manager's job to blend these methods. Personal selling involves direct communication between sellersі and potential customers. Personal selling is usually face-to-face, bull sometimes communication is over the telephone. Personal selling lets! the salesperson adapt the firm's marketing mix to each potential customer. But this individual attention comes at a price. Personal sellings can be very expensive. Often this personal effort has to be blended with mass selling and sales promotion.

Mass selling is communicating with large numbers of customers at the same time. The main form of mass selling is advertising (any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor). Publicity (any unpaid form of nonpersonal pres­entation of ideas, goods, or services) is another important form of mass selling.

Sales promotion refers to those promotion activities—other than advertising, publicity, and personal selling—that stimulate interest, trial, or purchase by final customers or others in the channel. This can involve use of coupons, point-of-purchase materials, samples, signs, catalogs, novelties, and circulars. Sales promotion specialists try to help the personal selling and mass selling people.

Ford spends more than $ 600 million each year on advertising to tell consumers about the company and its products. Dealership salespeople assist potential buyers and persuade them that Ford is the best car for them. Ford and its dealers offer special promo­tions—sales, cash rebates, low-financing rates—as added purchase incentives.

An effective marketing program blends all of the marketing mix elements into a coordinated program designed to achieve the com­pany's marketing objectives by delivering value to consumers. The marketing mix constitutes the company's tactical tool kit for estab­lishing strong positioning in target markets. However, note that the four Ps represent the sellers' view of the marketing tools available for influencing buyers. From a consumer viewpoint, each marketing tool is designed to deliver a customer benefit. One marketing expert sug­gests that companies should view the four Ps in terms of the cus­tomer's four Cs:

Thus, winning companies will be those that can meet customer needs economically and conveniently and with effective communication.

Four Ps	Four Cs
Product Price Place Promotion	Customer needs and wants Cost to the customer Convenience Communication

Let's sum up our discussion of marketing mix planning thus far. We develop a Product to satisfy the target customers. We find a way to reach our target customers' Place. We use Promotion to tell the target customers (and middlemen) about the product that has been designed for them. And we set a Price after estimating expected customer reaction to the total offering and the costs of getting it to them.

I. Key terms:

Price — ціна — the amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service.

Promotion — просування — the specific mix of advertising, personal sell­ing, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives.

Advertising — реклама — any paid form of nonpersonal communica­tion about an organization, goods, service or idea by any identified sponsor.

Lifestyle — стиль життя — a mode of living that is identified by how people spend their time and resources (activities), what they consider important in their environment (interests), and what they think of themselves and the world around them (opinions).

Marketing channel — канали маркетингу — people and firms involved in the process of making a product or service available for use or con­sumption by consumers or industrial users.

II. Vocabulary notes:

allowance, n.

sum of money, amount of sth., allowed to sb. — грошова до­помога; утримання; кишенькові гроші;

family allowance — допо­мога багатосімейним; порція, пай, раціон; норма видачі;

making allowance(s) for — allow for, take into consideration — поправка; виправдання; дозвіл, допущення; брати до уваги; allowance must be made for his age — remember that he is young, and not to be severe — слід зважити на його вік;

deduction or discount — знижка; надбавка;

advertising al­lowance — знижка (з ціни товару) з метою компенсації витрат на рекламу;

cost-of-living allowance — підвищення ставок заро­бітної плати у зв'язку зі зміною індексу прожиткового мініму­му;

promotion allowance — знижка (з ціни товару) з метою компенсації послуг із просування товару на ринок;

tax allow­ance — пільги на податок; trade allowance — знижка роздріб­ним торговцям;

persuade, v.

1) convince — переконувати; persuade sb. that...; persuade sb. of sth.;

2) cause (sb.) by reasoning (to do sth.) — умовляти; схиляти;

3) cause sb. to do/stop doing sth. — persuade sb. into/out of (doing) sth.; from doing sth. — умовляти; відмовляти;

promote, v.

1) give (sb.) a higher position or rank — to promote (to) — просу­вати, висувати; підвищувати у званні (у чині);

Не was promoted colonel (to colonel; to the rank of colonel) — йому надали звання полковника;

2) help to organize and start; help to found or organize — сприяти, підтримувати; заохочувати; допомагати; спричиняти; засновувати (підприємство тощо);

promote a new business company — засновувати нову комерційну компанію;

promote a bill in Parliament — підтримувати законопроект у парламенті;

3) encourage by publicity, advertising, etc. — сприяти про­дажу товару; створювати сприятливі умови для продажу; про­сувати;

promotion, n.

1) promoting or being promoted — сприяння, підтримка, заохочення;

2) instance of promoting or being promoted — просування по слу­жбі; підвищення на посаді (в чині);

win/gain/obtain promotion — діс­тати підвищення;

3) encouragement by publicity, etc.; advertising/ publicizing one's product — сприяння в продажу; створення сприятливих умов для продажу; просування;

warranty, n.

1) authority — дозвіл, офіційна санкція; підстава, виправдання;

2) written or printed guarantee — гарантія, поручительство, по­рука; гарантія якості;

3) article in the contract which covers some conditions — умова, застереження;

incentive, n.

that which incites, rouses or encourages a person/incentive to sth./to do sth./to doing sth. — спонука, спонукання, стимул; incentive, adj.

спонукальний, надихаючий; заохочувальний, стимулюючий;

inventory, n.

1) detailed list, e.g. of household goods, furniture, etc. — інвентаризаційний опис, відомість, перепис, інвентаризація, реєстр; спи­сок, каталог;

2) items included in the list — товари, предмети, внесені в інвен­таризаційний опис, наявні товари;

3) goods in stock — матеріально-виробничі запаси;

annual inventory — інвентаризація в кінці року;

inventory in stock — наявні запаси;

buffer (protective) inventory —- резервний запас;

gross in­ventory — загальний запас;

input inventory — запаси, що надхо­дять;

mean inventory — середній рівень матеріальних запасів;

on-hand inventory — наявний запас;

on-order inventory — замовлений запас;

total inventory — загальний рівень запасів.

III. Answer the following questions:

1. What does the company do after it has decided on its positioning strategy?

2. What do you know about one of the major concepts in modem marketing?

3. How can it be defined?

4. What does Product stand for?

5. How do Ford dealers charge for each Taurus?

6. In what way does a product reach its customers?

7. Is a channel system short or complex?

8. What can you say about Promotion?

9. What does Promotion include?

10. Speak about advantages and disadvantages of personal selling and mass selling.

11. What promotion activities does sales promotion refer to?

12. How can the company's marketing objectives be achieved?

13. What are the customer's four Cs?

14. Are all four Ps needed in a marketing mix?

15. Sum up the discussion of marketing mix planning.

IV. Find in the text the following words and word combinations and translate the sentences in which they are used:

controllable marketing variables; «goods-and-service» combina­tion; comprehensive warranty; full sticker price, to adjust for the cur­rent competitive situation; merits of the product; sales promotion; per­sonal effort; point-of-purchase materials; tactical tool kit; product features; list price; product coverage.

V. Find English equivalents:

впливати на попит; гайки та болти; свічі запалювання; фа­ри; деталі на вибір; вихлопна труба; запропоновані роздрібні ціни; торговельні знижки; привести ціну у відповідність до; обговорювати ціну; канал розподілу; кінцевий споживач; віч-на-віч; пристосувати маркетинговий комплекс фірми до кож­ного потенційного споживача; суспільні відносини; зразки; дрібні порції нового товару; з точки зору споживача; засоби маркетингу; асортимент товару; властивості товару; упакоька; транспортна упаковк?.; можливості повернення; розміщення; стимулювання збуту.

VI. Memorize the following terms and their Ukrainian equivalents

A. Value1) цінність, важливість; 2) висока оцінка; 3) вартість; 4) еквівалент, ціна; вар­тість; 5) валюта; еквівалент; сума вексе­ля або тратти;at valueза ціною; за ціною дня;commercial value ринкова вартість;current value існуючі ринкові ціни;exchange value мінова вартість;loss (fall) in value зниження ставки;market value курсова вартість, ринкова вартість;nominal (face, deno-minal) value номінальна вартість, номінал;surplus value додаткова вартість;under value нижче від вартості;asset value номінальна вартість активів;capital valueвартість реального основного капі­талу;cash value грошова вартість;cost valueсобівартість; вартість витрат; первин­на вартість;disposal (salvage) valueліквідаційна вартість;guess value оцінка;intristic value внутрішня вартість;land value вартість землі;marginal valueгранична вартість; маржинальний по­казник;net value чиста вартість;par value1) паритет, номінал акції або облігації;

2) паритет валюти;sales value загальна вартість продажу;shipped value вартість відвантажень;stated value заявлена вартість;transferred value перенесена вартість;unit valueсередня ціна одиниці продукту.B. Term1) строк, період; час; тривалість; 2) строк закінчення, кінцева точка; 3) pl. умови; 4) оренда на певний термін; 5) термін виконання зобов'язань; термін креди­тування;on beneficial terms на вигідних умовах;terms of an agreement умови угоди;terms of paymentумови платежу;terms of referenceколо повноважень, мандат; компе­тенція;unacceptable termsнеприйнятні умови;terms of delivery terms of deliveryумови постачання;terms of billстрок векселя;terms of interestумови перерахування відсотків;terms of saleумови продажу;terms of validityтермін дії (договору);easy (soft) termsпільгові умови;lending termsумови видачі кредиту;negotiated termsумови, досягнені в результаті перего­ворів;stipulated termsзапропоновані умови, поставлені за­здалегідь.VII. Match the Ukrainian and English equivalents:

A. 1) вартість у країні-виробникуcost value2) розрахована вартістьtotal (overall, aggregate) value3) дійсна вартістьhome value4) вартість одиниці про­дукціїvalue of each separate ship­ment5) вартість замовленняestimated value6) заставна вартістьvalue of output7) заявлена вартістьreal value8) вартість витратmortgage value9) вартість кожної окремої партіїoriginal value10) курсова вартістьcustoms (dutiable) value11) загальна вартістьunit value12) первинна вартістьmarket value13) вартість продукціїorder value (cost)14) вартість робочої силиdeclared value16) митна вартістьvalue of labourB. 1) умови орендиregular terms2) взаємовигідні умовиtest conditions3) взаємоприйнятні умовиprevailing conditions4) умови замовленняterms of lease5) умови інкасоfinancial terms6) умови випробуваньmutually acceptable terms7) несприятливі умовиstipulated conditions8) загальноприйнята умовиfinance terms9) звичайні умови9) mutually advantageous terms10) відстрочені умови пла­тежу10) unfavourable (adverse) condi­tions11) умови підвищення цін11) settlement terms12) попередні умови12) collection terms13) передбачені умови13) terms of escalation14) умови розрахунку14) specifications of an order15) умови фінансування15) deferred terms of payment16) фінансові умови16) preliminary conditionsVIII. Fill in the blanks from the words below. Translate the sen­tences into Ukrainian.

allowance (3); persuade (3); promote; promotion (2); warranty (2); incentive (2); inventory (2).

1. The equipment is still under _________.

2. It is the responsibility of the marketing department to _________ and organize the sale of products to the purchaser.

3. Retailers in this country usually get tax and trade _________ from the government.

4. This newly-formed company managed to _________ everybody of their reliability.

5. Four characteristics of pure market system — economic freedom — economic _________ competitive markets, and private property — are very much in evidence in the American economy today.

6. Can the company give a _________ for these goods?

7. This company might offer you several kinds of promotional _________ on the first order.

8. They must make _________ for his youth.

9. Broadly speaking, activities such as sales _________ advertising and market research are covered by the marketing department.

10. In retailing _________ is tangible property either held for sale or to be consumed in the sale of goods.

11. We could _________ the manager out of signing this unfair contract.

12. Without private property there would be little _________ for an in­dividual to save and accumulate capital and without capital there would be no business enterprise.

13. Advertising is aimed at conveying information to potential
customers and clients, but it is also used to _________ the public to buy.

14. Large _________ lying idle in warehouses drain the resources of a retail establishment.

15. _________ includes all forms of marketing communication.

IX. Synonyms and antonyms. Complete the following table:

Word Synonym Antonym motivate (Verb) promotion (Noun) usually (Adverb) satisfying (Participle I) Ability (Noun) select (Verb) agree (Verb) frequently (Adverb) personal (Adjective) persuasive (Adjective) modern (Adjective) customer (Noun) X. Complete the following sentences:

1. The marketing mix consists of...

2. An effective marketing programme blends all...

3. In addition to developing the right Product, Place, and Promotion, marketing managers must...

4. You can see that price is...

5. We develop a Product...

6. The four Ps are arranged around...

7. In setting a price, marketing managers must consider...

8. It's important to stress that selecting a target market and developing a marketing mix...

9. A price is set after...

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