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МИНИСТЕРСТВО ОБРАЗОВАНИЯ И НАУКИ РОССИЙСКОЙ ФЕДЕРАЦИИ ФЕДЕРАЛЬНОЕ АГЕНТСТВО ПО ОБРАЗОВАНИЮ
ГОУ ВПО «Благовещенский государственный педагогический университет»
IRINA PALAYEVA EKATERINA STEKLYANOVA
MARKETING ENGLISH FOR SMART MARKETING STUDENTS (PROJECT METHODS APPLIED IN TEACHING FOREIGN LANGUAGES)
Учебное пособие для студентов вузов
BLAGOVESHCHENSK 2010
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ББК 81.2
Англ. - 923
Печатается по решению редак-
И68
ционно-издательского совета ГОУ ВПО «Благовещенский государственный педагогический университет»
Палаева, И.В., Стеклянова Е.А. Marketing English for Smart Marketing Students (Project Methods Applied in Teaching Foreign Languages): учебное пособие для студентов вузов. / И.В. Палаева,
Е.А.
Стеклянова.
–
Благовещенск: Изд-во ГОУ ВПО
«Благовещенский
государственный педагогический университет», 2011. - 48 с. Пособие
написано
на
английском
языке
и
предназначено
для
студентов
экономических специальностей старших курсов, изучающих английский язык в качестве дополнительной специальности. В пособие включены адаптированные аутентичные материалы
из
американских
учебников
по
маркетингу
и
практические
задания,
представляющие собой поэтапную разработку модели маркетингового плана на английском языке с применением проектной методики.
Рецензенты: Н.И. Иванова, доцент кафедры иностранных языков негосударственного образовательного учреждения ВПО «Московская академия предпринимательства при правительстве Москвы» Благовещенский филиал, канд. фил. наук. А. В. преподавания
Архарова, доцент кафедры английской филологии и методики
английского
языка
ГОУ
ВПО
«Благовещенский
государственный
педагогический университет», канд. фил. наук.
© Изд-во ГОУ ВПО «Благовещенский государственный педагогический университет», 2011 © Палаева И.В., Стеклянова Е. А.
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ПРИМЕНЕНИЕ ПРОЕКТНОЙ МЕТОДИКИ В ПРЕПОДАВАНИИ АНГЛИЙСКОГО ЯЗЫКА СТУДЕНТАМ ЭКОНОМИЧЕСКИХ СПЕЦИАЛЬНОСТЕЙ
ИЛИ
КАК РАБОТАТЬ С КНИГОЙ Преобразование современного общества, обусловленное интеграцией России в мировое информационное сообщество, ставит необходимым поиск новых подходов и направлений, обеспечивающих эффективную подготовку профессиональных кадров со знанием иностранных языков. Потребность в специалисте нового образца, который способен перестраивать себя и свою деятельность в зависимости от изменяющихся условий, является острой необходимостью. Таким образом, изменение требований, предъявляемых к выпускникам экономических вузов с позиций повышения качества владения иностранным языком, требует коренного пересмотра
организации
профессионально
направленной
подготовки
студентов-
маркетологов, менеджеров по рекламе и PR, а также других экономических специальностей в условиях высшей школы средствами иностранного языка. Главной целью преподавания иностранного языка в вузе в рамках компетентностного подхода является формирование и развитие профессиональной иноязычной компетенции при одновременном создании условий, стимулирующих самостоятельную, поисково-творческую деятельность студентов, что требует активного внедрения инновационных педагогических. Однако возникает противоречие между требуемым уровнем подготовки выпускника экономического вуза по иностранному языку и решением данного вопроса в теории и практике вузовской педагогики. Несоответствие существующих методов и средств обучения иностранному языку социальному заказу является на наш взгляд основным недостатком. Анализ существующей системы обучения иностранному языку в России на современном этапе показывает, что:
уровень подготовки специалистов, качество предоставляемых услуг значительно уступает общепринятым мировым стандартам на Западе, тем не менее, учебники так и не ориентированы на европейские стандарты;
существующий
образовательный
Госстандарт
по
иностранным
языкам,
определяющий минимальную часть содержания языкового образования, не отражает особенности
многоуровневой
подготовки
в
системе
получения
высшего
профессионального образования и характеризуется отсутствием стандартов по профессиональному иностранному языку;
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традиционные подходы в обучении иностранному не отличаются профессиональной направленностью, т.к. не способствуют в полной степени формированию и развитию профессиональной
иноязычной
компетенции,
не
стимулируют
формирование
продуктивных навыков иноязычного говорения в ситуациях, аналогичных будущей профессиональной деятельности. Реализация социального заказа произойдет только тогда, когда будут найдены пути активизации учебно-познавательной деятельности студентов, развития их творческого мышления и самостоятельности в добывании знаний. Одним из таких методов, по нашему мнению,
является
практических
метод
целей
в
проектов.
Данный
метод
обучении
иностранному
способствует языку
осуществлению
(студенты
обучаются
профессиональному общению на иностранном языке). Расширение кругозора студентов, повышение их общей культуры, культуры общения и мышления позволяет реализовать образовательные задачи. Убедительным аргументом в пользу эффективности проектного метода обучения является то, что около 90% добытых самостоятельно знаний, остается в памяти у человека. Овладение иностранным языком как средством коммуникации при отсутствии языковой среды невозможно без интенсивной самостоятельной работы. Выполняя проектные задания, студенты включаются в процесс создания отношений с производством. Обучение студентов по проектной методике позволяет:
опираясь на профессиональное обучение, повысить мотивацию к изучению иностранного языка;
использовать на практике компетенции, приобретенные в процессе обучения иностранному языку;
сформировать реалистичную оценку и критическое отношение к собственным знаниям иностранного языка. Как разновидность игрового метода метод проектов имеет своим результатом
определенный конечный продукт, создаваемый в ходе коллективной или индивидуальной деятельности, презентацию которого целесообразно представлять публично. В последнее время проектом называют любую деятельность. Однако анализ современной ситуации показывает отсутствие взаимосвязи в разработке теоретических основ и практического применения проектов, что снижает эффективность иноязычной предметной и речевой деятельности. Несмотря на то, что проектирование иноязычной профессиональной деятельности идеально вписывается в личностно-ориентированную, коммуникативную концепцию обучения, практически оно осуществляется редко, так как:
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присутствует нежелание преподавателей проводить профессионально направленные проекты;
слабо разработано дидактическое и учебно-методическое обеспечение процесса эффективной подготовки специалистов средствами профессионально направленных проектов.
Предлагаемое учебное пособие «MARKETING ENGLISH FOR SMART MARKETING STUDENTS (PROJECT METHODS APPLIED IN TEACHING FOREIGN LANGUAGES)», на наш взгляд, в некоторой степени устраняет отмеченные выше проблемы при организации проектно-исследовательской деятельности при обучению английскому языку студентов экономических факультетов. Настоящее учебное пособие рассчитано на студентов, обучающихся на средних и старших курсах экономических факультетов и уже имеющих представление об основах маркетинга. Цель настоящего учебного пособия состоит в том, чтобы дать возможность студентам эффективно сочетать знания, полученные на занятиях по английскому языку в рамках общегуманитарного блока подготовки специалистов в высших учебных заведениях Российской
Федерации
специализированных
со
курсов
специальными лекций,
знаниями,
практических
и
полученными семинарских
в
ходе
занятий
по
специальностям «Маркетинг», «Менеджер по рекламе», «PR менеджер», «Мировая экономика», «Предпринимательство». В структуру настоящего учебного пособия входят обязательные и факультативные элементы. Каждый урок состоит из: Vocabulary Notes, Cultural Notes, Brash Up Your Marketing Basics, Basic Text, Exercises, Unit Project и Additional Hints. Разделы Vocabulary Notes и Cultural Notes направлены на снятие лингвистических и экстралингвистических трудностей перед чтением основного текста (Basic Text) и предполагают самостоятельную работу студентов со словарями и электронными ресурсами. Раздел Brash Up Your Marketing Basics содержит основные маркетинговые понятия, которые
являются
активным
вокабуляром
урока.
Все
перечисленные
разделы
сопровождаются табличками со свободным пространством для того, чтобы студенты имели возможность подписать перевод, сделать заметки о продукте или компании, а также определить для себя основные маркетинговые понятия. Basic Text, предложенные в каждом уроке, составлены по материалам аутентичных учебников по маркетингу авторитетных американских маркетологов-практиков. Тексты расположены в такой последовательности, которая позволяет студентам организовать свою работу таким образом, чтобы иметь возможность составить собственный маркетинговый
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план для придуманного или реально существующего бизнеса и успешно защитить его на заключительном уроке. Помимо текстов, посвященных одному из этапов составления маркетингового плана, в пособие включены дополнительные тексты-кейсы и тексты об успешных маркетологах. Все упражнения (Exercises), сопровождающие тексты уроков, имеют коммуникативную направленность и стимулируют студентов к выражению своего мнения на различные профессиональные темы на английском языке. Начиная
со
второго
урока,
студентам
предлагается
выполнить
проектно-
исследовательскую деятельность по составлению собственного маркетингового плана по схеме, предложенной в разделах Unit Project и Additional Hints. В целом, при разработке данного пособия мы старались сочетать традиционную структуру учебного пособия и западноевропейский формат workbook, с целью более успешного
формирования
проектно-исследовательской
компетенции
студентов
экономических факультетов средствами иностранного языка. Мы выражаем искреннюю благодарность нашим рецензентам за ценные замечания и дополнения к нашему пособию. Мы начали разработку упражнений и поиск текстов для второй части пособия, которая будет посвящена теме «Advertising» и будет называться «Advertising English for Smart Business Students (Project Methods Applied in Teaching Foreign Languages», поэтому будем признательны всем желающим высказать свое мнение о нашем первом опыте по электронному адресу: [email protected] С уважением, авторы.
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UNIT ONE (THE FIRST UNIT)
VOCABULARY NOTES Look up the following words and word-combinations in the dictionary to make your text reading more comfortable. Feel free to fill in the space in the table; it may be useful for you someday. ad=advertising ……………………. a slate of advertising ……………………… to be committed …………………… to trust …………………….. to stumble onto a hit ……………………..
advantage …………………….. to provide ……………………….. foothold …………………….. to be obsessed with ……………………… to plod along ………………………
to challenge …………………… turf ………………… to support ………………………. cheapskate ……………………….. to deal with setbacks ……………………
CULTURAL NOTES Use the Internet recourses and find out about the following companies and products to make your text reading sensible. Feel free to fill in the space in the table; it may be useful for you someday. Cool Aid – http://www.kraftfoods.com/koolaid Procter & Gamble – http://www.procterandgamble.ru or http://www.pg.com American Express – https://home.americanexpress.com/home/mt_personal.shtml MCI – http://www.mci.com/ Fortune – http://www.fortune.com/fortune
BRUSH UP YOUR MARKETING BASICS Make sure you understand the following marketing expressions, share your ideas with your group mates to make your text reading discussable. Feel free to fill in the space in the table; it may be useful for you someday. Brand marketing is …………………………………………………………………… …………………………………………………………………………………………. Guerilla manifesto is ………………………………………………………………… …………………………………………………………………………………………..
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A consumer/customer is ……………………………………………….…………….. …………………………………………………………………………………………. Customer’s needs are ………………………………………………………………… …………………………………………………………………………………………. Volume of advertising is …………………………………………………………….. …………………………………………………………………………………………. Impact of the message is …………………………………………………………….. …………………………………………………………………………………………. A marketing plan is……………………………………………………………………
TEXT ONE (THE FIRST TEXT) CREATING A PLAN
About fifteen years ago classical brand marketing reached its peak. The idea behind brand marketing was simple: buy a slate of advertising in national media, run ads, and wait for people to come to the store and buy your product. Classical brand marketing turned Cool Aid into a $600 million business, built Procter & Gamble into a money machine, and even worked for service businesses like American Express and MCI. All of sudden, all of these Fortune 500 companies, together with hundreds of thousands of smaller businesses, have changed course completely and embraced guerilla marketing. Why now? There are many reasons, including increased skepticism among consumers, increased competition, and a fragmentation of the mass media. Guerilla marketing The Guerilla’s manifesto is ―in order to sell a product or a service, a company must establish a relationship with the consumer‖. It must build trust and support. It must understand the customer’s needs, and it must provide a product that delivers the promised benefits. Smart marketers use every technique available to gain a foothold in the consumer's mind. With modern marketing, the focus changes from the volume of advertising to the impact of the message. The marketers would rather reach ten people with a message that works than 100 people with one that doesn't. The guerilla marketer must be obsessed with benefits. Whenever offering a product or service, he/she focuses on how it will benefit the consumer and builds everything – the product, the delivery, the marketing – around that benefit. The smart marketer understands positioning. He/she knows that challenging the market leader on his turf is foolish — an invitation to disaster. Instead, the smart marketer maneuvers around the leader, repositioning him to his/her advantage. Every self-respecting marketer can recite the position of his/her product or service in one or two sentences.
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The marketer is a cheapskate. They know that every dollar allocated to marketing is essential, and they don’t plan to waste a penny. But they are not foolish. When necessary, they hire the best designers, media planners, and experts in the business – they realize that the best is often the cheapest in the end. Most of all, the smart marketers are committed. They understand that marketing doesn’t work overnight. By setting a goal and sticking to it, the smart marketers have an easier time of dealing with the inevitable setbacks that occur. The smart marketers know that path to marketing success is filled with failed marketers who gave up just a little too soon. Three reasons why marketers fail Lack of Commitment If you don’t believe in your product, or if you’re not consistent and regular in the way you promote it, the odds of succeeding go way down. The primary function of the marketing plan is to ensure that you have the resources and opportunities to do what it takes to make your product work. Lack of a Clear Benefit It seems so obvious, but few marketers understand that you must SELL SOMETHING PEOPLE WANT. Without getting close to your customer, doing the research, and looking hard at what you have to offer, you’re unlikely to stumble onto a hit. Too often, companies look at their skills or their factory and invent a new product or service that will be easy for them to make. That’s the last reason to offer a product. Customers don’t care about your skills or inventory. They want to know what's in it for them. Poor Positioning Sometimes there is no position available in a crowded or depressed market. But markets where there are no positions available are few and far between. More often, marketers make the mistake of going up against a market leader on his/her own turf. As the marketing plan takes you through the positioning segment, pay careful attention. The best product and the best execution won't help if a market leader is selling the same benefit in the same way for half the price. Why a marketer needs a plan? Why is a marketing plan so important? Very few businesses have an accounting plan or a manufacturing plan, so why the focus on marketing? Unlike most other aspects of your business, marketing involves unquantifiable risks. There’s just no way to know how your ad is going to pull, how many people will come to your grand opening, or what sort of word of mouth you’ll be able to generate. One way to deal with this uncertainty is to ignore it. Many businesses blindly plod along, investing money in marketing when business is good, cutting back when sales go down. When an
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ad campaign doesn’t pull right away, they kill it quickly. When it works well, they soon tire of it and move on to something new. The smart marketer understands that a marketing plan is the first key to success. Zig Ziglar tells the story of the airplane pilot who takes off on a flight from Dallas to New York, gets blown a little off course, and returns to the airport and starts again. Obviously, very few flights would get to their destinations if pilots were this shaky in their ability to deal with setbacks. The secret of a marketing plan is that it will enable you to see your ultimate goal with clarity, making minor setbacks and failures along the way unimportant. Just as important, a plan helps you communicate your vision to employees, ad agencies and investors. When completed, your plan will outline seven critical elements in your approach to marketing. THE SEVEN CRITICAL ELEMENTS OF YOUR MARKETING PLAN 1. The benefit to consumers 2. Your positioning in the marketplace: What business are you in? 3. Your target market 4. Your advertising strategy and positioning 5. Your budget 6. The tools and techniques you'll use to reach your audience 7. A month-by-month implementation timetable EXERCISES I. Think of personal traits of a Guerilla Marketer and share your ideas with your group mates. Guerilla Marketer
II. Put the tasks which are presupposed by the marketing plan into the correct order. #
Activity to calculate expected revenues and expected costs to spell out how marketing strategies will be turned into specific programs to make a brief summary of the main goals, and recommendations to observe the development of the company to prevent or eliminate waste to explain how marketing mix elements respond to the current situation to set major objectives of the company’s activity to assess major threats and opportunities that the product might face to make a market description, a product review, a review of competition
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UNIT TWO (THE SECOND UNIT)
VOCABULARY NOTES Look up the following words and word-combinations in the dictionary to make your text reading more comfortable. Feel free to fill in the space in the table; it may be useful for you someday. cost ……………………… hiss-free listening ………………………. attractive ……………………. to fall into the trap ......................................
overlooked key …………………….. to distinguish ……………………… to protect ……………………… notorious .................................
self-esteem ………………….. partial sampling ………………… crucial ………………….. to pay a premium for ..............................
CULTURAL NOTES Use the Internet recourses and find out about the following companies and products to make your text reading sensible. Feel free to fill in the space in the table; it may be useful for you someday. Mercedes Benz - http://en.wikipedia.org/wiki/Mercedes-Benz benz.com/international_home/en/
or
http://www3.mercedes-
Coca-Cola - http://inventors.about.com/od/cstartinventions/a/coca_cola.htm
Master locks - http://www.answers.com/topic/master-lock-company or http://www.masterlock.com/ Volvo cars - http://www.volvocars.com/us/top/about/pages/default.aspx
Hostess Twinkies - http://www.kitchenproject.com/history/twinkie.htm or http://www.hostesscakes.com/about/ King Arthur - http://en.wikipedia.org/wiki/King_Arthur_Flour or http://www.kingarthurflour.com/about/ Nucor - http://www.answers.com/topic/nucor-corporation or http://www.nucor.com/story/
Evian - http://www.ehow.com/about_5052645_evian-water.html or http://www.evian.com
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BRUSH UP YOUR MARKETING BASICS Make sure you understand the following marketing expressions, share your ideas with your group mates to make your text reading discussable. Feel free to fill in the space in the table; it may be useful for you someday. Features are ………………………………………………………………………………….. ………………………………………………………………………………………………… Benefits are …………………………………………………………………………............... ………………………………………………………………………………………………… Operating costs are ………………………………………………………………………….. ………………………………………………………………………………………………… Manufacturing costs are ……………………………………………………………………. ………………………………………………………………………………………………… The consumer-based society is …………………………………………………………….. ……………………………………………………………………………………………….. To satisfy basic needs is ……………………………………………………………………. ……………………………………………………………………………………………….. Best-selling products are …………………………………………………………………… ……………………………………………………………………………………………….. TEXT TWO (THE SECOND TEXT) STEP I: THE BENEFIT TO CONSUMERS
The only products or services that succeed are those that offer a benefit to consumers that is greater than their cost. If necessary, write that on a big sign and post it over your desk. It is the obvious but often overlooked key to marketing. Marketers frequently confuse features and benefits. Features are elements of a product that deliver a benefit. A quick look at the following table will help you remember the difference: Feature
Benefit
Airbags
Lowered risk of serious injury
Large type
Ease of reading
Digital recording
Hiss-free listening
Soft leather sneakers
More comfortable walking
Mercedes Benz logo
Increased self-esteem based on status
Think about the last time you went to buy a new car. You probably thought about what you wanted: safety for your family, low operating costs, lots of room for the kids, etc. It’s not too hard to translate these benefits into features: airbags, good gas mileage, an extra-large trunk, etc. But it’s the benefit, not the feature, that sells the car.
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But what do people want? In our rapidly evolving consumer-based society, understanding the answer to this question can unlock the potential of your marketing campaign. As soon as you can distinguish between wants and basic needs, as soon as you understand how to talk directly to the consumer’s psyche, you can begin to establish your role in their life. Domino's Pizza is a great example of how understanding your customers’ desires can help grow a business. Most pizza lovers agree that Domino’s is not the best pizza you can buy. But it is the fastest and most convenient. By staying close to his customers, Tom Monaghan understood that college students (his original market) wanted fast and easy food, not necessarily gourmet quality. Many competitors have been stymied trying to offer a better pizza instead of a pizza that gave customers what they wanted. Most Americans have everything they need to survive. They have enough food to eat and a place to sleep. Most marketers are no longer concerned about satisfying these basic needs. Instead, they’re focusing on consumers’ wants and desires. Here's a partial sampling of what people want: To be safe
What people want To be successful
To be happy
To like themselves
To have fun
To be liked by other people
To eat delicious foods
To protect their family and friends
To be attractive
To be free from pain
Mastering the list of what people want and communicating the benefits of your product are crucial steps in understanding marketing. No successful guerrilla would build a marketing plan without keeping these desires in mind.
EXERCISES I. Study the table ―What people want‖, put the wants in the order from the least important to the most significant for you and explain why. II. Here is a list of best-selling products. All of them sell for many times their manufacturing cost, which means that customers are paying for more than the products themselves.
Best-selling products Coca-Cola Master locks Volvo cars Marlboro cigarettes
Key desires that these products satisfy
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Hostess Twinkies American Express cards III. Choose a branded product that you and your family use— toothpaste, luxury car, perfume, clothing, etc. Then make an honest list of the benefits that the product offers. You’ll probably be surprised at how little these benefits have to do with the actual utility of the product. A branded product that you use
Benefits that the product offers
Starting from this unit you’ll take you through each of the steps for creating a marketing plan. Choose an imaginary or really existing business or product and start writing a marketing plan for it following the pieces of advice you’ll find in each unit. Good luck!!! UNIT PROJECT After getting the information about how to determine needs and wants of customers and features and benefits of the goods and having done all the exercises, think of the product or service that you are going to present for future promotion, selling. Start creating your own marketing plan (that you’ll present at the end of studying the topic) with the first step: determining the benefits of your product/service. Use the following instruction: #
Presupposed actions
1
Write down the product or service you offer or plan to offer. Be as specific as possible. Don't say, "a grocery store." Say, "a gourmet grocery store stocking 10,000 items, located in the swank village.
2
List the features that your product will offer that are different from or better than your competitors
3
Identify the benefits of using your product. How will you make the user's life better? Remember, list benefits, not features
Result
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4
Take a look at the benefits you’ve listed. Are they substantially better than your competition? If not, what will compel consumers to switch?
ADDITIONAL HINTS Is you business a commodity? It's easy to fall into the trap of believing that the only reason people buy from you is price. After all, your competitors offer virtually the same product. The problem is that commodities— salt, sugar, and airline seats, to name a few—are notorious for low profits. You can transform virtually any commodity into a branded product by focusing on your customer and delivering exactly what they want. King Arthur created branded flour, Nucor makes branded steel, and Evian even turned ordinary water into a product people will pay a premium for. Being cheaper is not enough The marketing trash heap is filled with people who have created products just like brand x, but cheaper. Even if you could offer a bottle of perfume that smell just like Chanel No. 5, you’re unlikely to convert the bulk of the audience. Understand that people rarely choose products solely on price (when was the last time you ate canned chicken breast?). If that’s the only benefit, it probably means you should try again. Remember, if you think you can differentiate your business on price, you’re probably mistaken. Customers are far more frequently motivated by service, speed, quality, or other non-monetary attributes.
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UNIT THREE (THE THIRD UNIT)
VOCABULARY NOTES Look up the following words and word-combinations in the dictionary to make your text reading more comfortable. Feel free to fill in the space in the table; it may be useful for you someday. to struggle ……………… ……… to hook ………………………… movie flops ……………………….. to line up ………………………
marketing tools ……………………………. tangible ……………………. a failure …………………………… to make appeal …………………….
an affordable rate ………………………. obvious …………………….. to launch ……………………… to stand out from ……………………….
CULTURAL NOTES Use the Internet recourses and find out about the following entrepreneurs, companies, products and concepts to make your text reading sensible. Feel free to fill in the space in the table; it may be useful for you someday. Broadway - http://www.answers.com/topic/broadway or http://www.encyclopedia.com/topic/ Broadway.aspx Ricky Jay - http://www.rickyjay.com/bio.html
Federal Express (FedEx) - http://about.fedex.designcdt.com/
Southwest Airlines - http://www.linkedin.com/companies/southwest-airlines or http://www.southwest.com/about_swa/press/factsheet.html American Airlines - http://www.americanairlines.es/i18n/amrcorp/corporateInformation/ facts/history.jsp United Airlines - http://en.wikipedia.org/wiki/United_Airlines or http://www.historycentral.com/ aviation/airlines/UNITED.html Fingos breakfast cereal - http://www.mrbreakfast.com/cereal_detail.asp?id=1322
7-Up - http://www.7up.com/7uptext/faq.asp
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BRUSH UP YOUR MARKETING BASICS Make sure you understand the following marketing expressions, share your ideas with your group mates to make your text reading discussable. Feel free to fill in the space in the table; it may be useful for you someday. Segment is ……………………………………………………………………………………….. ……………………………………………………………………………………………………. Positioning is …………………………………………………………………………………….. ………………………………………………………………………………………………….… A genuine need is ……………………………………………………………………………..… …………………………………………………………………………………………………..... A clear and distinct benefit is ……………………………………………………………..…… …………………………………………………………………………………………….……… Consumer testing is ………………………………………………………………………..…..... …………………………………………………………………………………………….……… Surveys are ……………………………………………………………………………….……… ………………………………………………………………………………………….………… Feedback is ……………………………………………………………………………………… ……………………………………………………………………………………………………. TEXT THREE (THE THIRD TEXT) STEP 2: WHAT BUSINESS ARE YOU IN? You’d be amazed how much easier it is to succeed when you create a product or service that people really want. Some examples: 1. Musicals and plays open and close on Broadway all the time. Marketers struggle to fill the seats and keep the theaters (barely) afloat. Ricky Jay, a close-up magician, opened on the edge of the Broadway theater district on February 10th. By February 15th, every seat at every show was sold out. He added four more weeks of shows in March. Those tickets sold out in six hours. The reason has not got that much to do with marketing tools and everything to do with benefits — Ricky Jay was offering a small segment of people exactly what they wanted. 2. Federal Express was the first company to offer overnight service to virtually everywhere in the country at an affordable rate. Once people tried FedEx, they were hooked. It wasn’t that hard to persuade first-time customers that overnight delivery was a service they couldn’t live without. Again, the benefit here is so obvious, so tangible, that FedEx doesn’t have to spend much time persuading business customers to send stuff overnight. 3. Southwest Airlines opened service to a number of cities that already had quite a few major airlines, including American and United. Yet their flights were quickly booked. People liked the low fares, the friendly people, and the excellent service.
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What do these successes have in common? In each case the marketers identified a genuine need on the part of customers to use their service. They offered a clear and distinct benefit, and positioned themselves to reach consumers with a personal message about how their lives would be better once they used this product or service. Critics tell us that this is too obvious. ―Of course,‖ they say, ―you should offer a product that people want.‖ Maybe the fact that this is so obvious explains why so many people ignore it. Take a look at the movie flops in the video store, or the expensive failures in the supermarket. Fingos breakfast cereal was launched with a $32 million marketing campaign. After first year sales stalled at $22 million, the marketers gave up. While the idea behind the cereal seemed appealing, it just wasn’t something consumers were willing to pay for. The hard part is figuring out what sort of product or service people are going to line up for. When Microsoft creates a new word processor, they go through more than 10,000 hours of consumer testing, surveys, and feedback. You can be sure that the products they make appeal to a wide range of computer users. On the other hand, most businesses don’t even bother to ask their best customers for ideas for new products. Understanding competitors and winning position on the market Before you go any further, take a minute to understand how the competition affects your ability to offer your benefit to your target market. Here are examples: If you could rent any car, what car would you choose to pick up an important visiting executive at the airport? Most people would say a Mercedes, a Cadillac, possibly a Lexus. Why? Because those products have been positioned as expensive, impressive executive sedans. While they also go fast, hold an entire family, and offer safety, first and foremost they’ve been positioned as status cars. The "status" position has been filled by these cars. If you decide to market a product that competes with these cars, you're going to have to throw one of them out of the prospect's mind. You may find that it's easier to invent your own position than fight an industry leader for his spot. What car would you use to drive a carpool of six kids to nursery school? Most yuppie parents would instantly pick a Volvo. While it's a safe car, there's nothing that specifically makes it a parent's car except for the advertising done to position it. The brilliance behind Volvos position campaign is that they repositioned a fairly boring Swedish car into the darling of well-heeled parents. Without changing one thing about the car, Volvo was able to find a 'hole' in the market— safe cars for families—and fill it with their own product. 7-Up used a guerrilla marketing technique to outposition Coke. While Coke's marketing budget was many times larger, 7-Up was able to turn their bigness against them. How? By calling themselves the UnCola, they told consumers "We're not Coke." For those who want to be different, 7-Up provided an easy way to stand out from die crowd. The more Coke advertised, the more they
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helped 7-Up. 7-Up has never challenged Coke as the market leader in the overall soft drink market, but by inventing their own market (soft drinks that are not Coke) they became a market leader in a smaller, but still profitable realm. The single biggest reason that guerrillas fail is that they're unable to find a niche. They open a dry cleaner, or a gardening service, or a hairdresser that is not positioned any differently than their competitors. If you're just like the other guy but the other guy got there first, you've got quite a challenge on your hands.
EXERCISES I. Study some cases given in the lesson and define competitive advantages that allowed companies to leapfrog the competitors. Company Federal Express Southwest Airlines Volvo 7-Up
Competitive advantages
II. Use the Internet resources and find an example of the successful promotion of the product and a failure one. Figure out the reasons of winning/loosing position on the market. Company
Competitive advantages
A success A failure UNIT PROJECT Plotting your position and the position of your competitors takes a little imagination, but it's worth it. Study example of the market for toothpaste for better understanding the idea and then define your position on the market for the product/service you’ve chosen the previous lesson.
NO CAVITIES CREST COLGATE
BIG BENEFIT
CLOSE UP
WHITENESS FAMILY
SINGLES
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TARGET AUDIENCE When Close-Up was introduced, the major brands of toothpaste were all fighting for one position — the family toothpaste that fights cavities. Close-Up was brilliantly positioned as a toothpaste for single young adults, who care about sex a lot more than cavities.
SUPERMARKETS
CLOSE UP
ULTRA BRITE CREST
WHERE'S IT SOLD COLGATE
TOM’S OF MAINE
HEALTH FOOD STORES SACCHARIN
ALL NATURAL INGREDIENTS
When Tom's of Maine decided to introduce a toothpaste, they drew a different map. Instead of using cavities and sex appeal as axes, they used two other surprising choices: Tom's of Maine chose to reposition on the basis of where the product was sold and what it contained. They established a niche for healthy toothpaste. By redefining the competition, Toms eliminated its competition. For more than five years, Toms has been the only national brand that is all natural. A consumer shopping at a health food store had essentially one choice when selecting a toothpaste: Toms. Now it’s YOUR TURN
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UNIT FOUR (THE FOURTH UNIT)
VOCABULARY NOTES Look up the following words and word-combinations in the dictionary to make your text reading more comfortable. Feel free to fill in the space in the table; it may be useful for you someday. shorthand ……………….. to work backward ……………………. hassle-free hospital cribs …………………… to misjudge ……………………….
to be aimed at ………………….. to assemble ……………………. a feeling of ruggedness …………………….. to be stymied ……………………..
income ……………………… to scatter pain-free dentistry ……………………. to endorse ……………………..
CULTURAL NOTES Use the Internet recourses and find out about the following companies, products and concepts to make your text reading sensible. Feel free to fill in the space in the table; it may be useful for you someday. Boston Chicken - http://en.wikipedia.org/wiki/Boston_Market
Hard Manufacturing - http://www.answers.com/topic/hard-manufacturing or http://www.hardmfg.com/feedback.html Marlboro cigarettes - http://www.britannica.com/facts/5/845915/Marlboro-as-discussed-insmoking-tobacco or http://en.wikipedia.org/wiki/Marlboro_(cigarette) The American dream - http://www.americansc.org.uk/Online/American_Dream.htm or http://www.answers.com/topic/american-dream
BRUSH UP YOUR MARKETING BASICS Make sure you understand the following marketing expressions, share your ideas with your group mates to make your text reading discussable. Feel free to fill in the space in the table; it may be useful for you someday. A target market is ………………………………………………………………… ……………………………………………………………………………………… A focus group is…………………………………………………………………… ……………………………………………………………………………………… An on-line computer service is ………………………………………………….. ……………………………………………………………………………………… A mail-in survey is …………………………………………………………………
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……………………………………………………………………………………… A marketing statement is ………………………………………………………… ……………………………………………………………………………………… To visualize the audience is ……………………………………………………… ……………………………………………………………………………………… TEXT FOUR (THE FORTH TEXT) STEP 3: WHO'S THE PRODUCT FOR? Once you’ve established the benefits of your product, you’ve implicitly identified a target market. A fishing lure, for example, that is guaranteed not to prick your finger, is probably not aimed at infants or vegetarians—it’s for anglers. Now segment your market even further. Exactly who wants and needs your product? If you said ―everyone‖, try again. There are very few products that appeal to everyone. Usually that’s shorthand for ―no one really wants this product a lot, everyone wants it a little.‖ Use the space below to identify exactly who wants your product the most. Talk about their age, income, shoe size, race, musical taste, height—whatever differentiates your market. Can you identify what magazines they read? What TV shows watch? If you’re having trouble identifying a market, it may be time to start again. But this time, work backward. Start with the market first, then create a product especially for that market. For example, you might discover that widowed women over 70, living in south Florida, have trouble getting their prescriptions filled. Solving this problem would create an obvious benefit. Once you’ve identified your target market, it’s time to test your thinking. You’ll need to find a dozen or so members of your target market and assemble them for a focus group. This is a decidedly unscientific way to get feedback on your ideas, but a lot better than nothing. Invite the focus group out to dinner or to your office for coffee. Sit them in a comfortable room and start asking questions. Ask them about what they use now to achieve the benefits you’re offering. Ask them what they like about the product or service—and what they don’t like. Find out how much they pay for the benefit you’re offering. Let them talk. Best of all, let them disagree with each other. You don’t have to run a focus group in person. If your market is scattered, try using an on-line computer service or a mail-in survey to get feedback. If it turns out that you’ve completely misjudged your market (a likely scenario), then you’ll have to go back to step one and try again. After you’ve worked your way through this process (and it may take a few tries) you will know the benefits you’re offering to your target market. Turn this knowledge into a one- or twosentence marketing statement that makes it clear what you have to offer and to whom you are offering it. For example: Hard Manufacturing offers reliable, hassle-free hospital cribs to pediatric nurses at major hospitals. Boston Chicken offers healthy, delicious, homemade-tasting chicken
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meals to busy families. Marlboro cigarettes offer a feeling of ruggedness and freedom to urban youth around the world searching for the American dream. Dr. Johnson offers pain-free dentistry (that children might even find fun) in the 10070 zip code. Notice that in each case you can clearly visualize the audience—in some cases, like Dr. Johnson or Hard Manufacturing, you could even buy a mailing list of every possible customer. This precision is critical in reaching your market.
EXERCISES I. Look at these methods of assessing information and collecting new information about your customers. Sort them into the correct category. Can you add any more to the table? Field research, purchasing information, feedback forms, email surveys, opinion polls, panel surveys, pre-testing, sales statistics. Sources of available data
Collection of new data
UNIT PROJECT Prepare questions for a market questionnaire to figure out the distinctive benefits, consumers’ opinions, attitudes, etc. about the product/ service you have promoted for different segments of your future customers. Questionnaire #
Questions
Answers
ADDITIONAL HINTS Remember that a focus group doesn’t present a statistically significant sample. If 9 out of 12 people in the focus group independently endorse your product, it doesn't mean you’re guaranteed to succeed. This isn’t a survey. Instead, it is a, chance for you to hear your customers' wants and desires in their own words.
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UNIT FIVE (THE FIFTH UNIT)
VOCABULARY NOTES Look up the following words and word-combinations in the dictionary to make your text reading more comfortable. Feel free to fill in the space in the table; it may be useful for you someday. to become immune to …………………….. to be tailored for ……………… to stimulate demand for ……………………… to overwhelm …………………. to abandon ……………………….
room in one’s brain …………………… to back smth. up …………………… to remind ………………………….. event tickets ……………………. celebrity endorsements ………………………..
pretzel business …………………….. plummet ……………………. to break through the clutter …………………………. relevance ………………………. to deal with gimmicks or fads ………………………………
CULTURAL NOTES Use the Internet recourses and find out about the following companies and products to make your text reading sensible. Feel free to fill in the space in the table; it may be useful for you someday. K Swiss - http://en.wikipedia.org/wiki/K-Swiss Nike - http://en.wikipedia.org/wiki/Nike,_Inc. or http://www.nikebiz.com/company_overview/ Reebok - http://corporate.reebok.com/ Adidas - http://www.press.adidas.com/DesktopDefault.aspx/tabid-28/ orhttp://www.adidas.com/ us/shared/aboutadidas.asp Converse - http://www.converse.com/about/index.aspx Body Shop - http://www.thebodyshop.com/_en/_ww/services/aboutus_history.aspx or http://www.thebodyshop-usa.com/beauty/about-us
BRUSH UP YOUR MARKETING BASICS Make sure you understand the following marketing expressions, share your ideas with your group mates to make your text reading discussable. Feel free to fill in the space in the table; it may be useful for you someday. Differentiation is …………………………………………………………………………… ……………………………………………………………………………………………….
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A different variable is ……………………………………………………………………… ……………………………………………………………………………………………… A niche is ………………………………………………………………………………….. ……………………………………………………………………………………………… Entrenched competitors are ……………………………………………………………… ……………………………………………………………………………………………… To reposition is ……………………………………………………………………………. ……………………………………………………………………………………………… Effective advertising is ……………………………………………………………………. ……………………………………………………………………………………………… Commercial advertising media is ………………..……………………………………... ……………………………………………………………………………………………… Word of mouth advertising is ……………………………………………………………. ……………………………………………………………………………………………… TEXT FIVE (THE FIFTH TEXT) STEP 4: YOUR ADVERTISING STRATEGY AND POSITIONING
Positioning With so many products on the market (and thousands more being introduced every year) consumers have become virtually immune to traditional marketing tactics. They just don’t have enough room in their brains to store every piece of information about every product. Instead, they either categorize a product or ignore it. The concept behind positioning is simple: Find a hole and fill it. People pick one or two attributes to associate with a product, then file that information away. When they need those attributes, the product comes to mind. In virtually every market, there is an opportunity to reposition the competition and create your own niche. Use this positioning process to discover where your competition is, and how you can outposition them to find a niche. 1. List the brands that are competing for your consumer. Be broad. For example, if you’re in the pretzel business, your competitors include potato chips, carrot sticks, and beef jerky, in addition to other pretzel manufacturers. 2. Next to each brand, outline that products position—who it is tailored for, how it is different from its competitors. 3. Use the grid (lesson 3) to plot each relevant product or brand. The bottom axis can contain one variable, like price, or quality, or service, or some other differentiation. The other axis grids a different variable. 4. Find a niche. Fill it. If you can’t find a niche, don’t expect customers to find you, unless you have enough money to bring them in the door in head-to-head competition with your entrenched competitors.
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5. Describe your proposed niche. You should be able to do it in one short phrase or sentence. Some examples: The most expensive hairdresser in Milwaukee. The best customer service of any supermarket in town. The lowest-priced gym. The restaurant with the best-looking waiters, The world’s leading manufacturer of hospital cribs. Finding the right position for your company only works if you back it up. You have to follow up with conviction and sell your position. Every aspect of your marketing plan should reflect the special niche you fill. Your position is your character—express it! After the enormous fat content of Chinese food became a news story, many restaurants saw their business plummet—some by as much as 50%. One entrepreneur decided to reposition his restaurant. Overnight, Hunan Garden Szechuan Restaurant became Cafe 19 Chinese Health Food Restaurant. The owner didn't change the menu—he already had a dozen fat-free steamed dishes on the menu. He didn't change the decor either. Just the sign. By repositioning the restaurant as a health food establishment he was able to increase his sales. The lesson is simple: Once people thought about his restaurant a different way, they were more likely to patronize it. The healthy dishes were there all along, he just needed to focus on them.
Advertising Advertising is the most visible form of promotion and is designed to inform consumers about the existence and benefits of products and services, to stimulate demand for it, to persuade them to buy it, or to remind. Effective advertising must extend from sound marketing strategy, take the consumer's view, be persuasive, break through the competitive clutter, never promise more than can be delivered, and prevent the creative idea from overwhelming the strategy. Some commercial advertising media include: billboards, printed flyers, radio, cinema and television ads, web banners, magazines, newspapers, sides of buses, musical stage shows, the backs of event tickets and so on. Unpaid advertising (also called word of mouth advertising), can provide good exposure at minimal cost. Advertising on the World Wide Web is a recent phenomenon. Prices of Web-based advertising space depend on the ―relevance‖ of the surrounding Web content. Now that you have positioned your competitors and your product, you're ready to create your Advertising Strategy Sheet. K Swiss had a difficult problem. A small marketer of tennis sneakers, they were dwarfed by the giants in the industry. Realizing that they had no chance of out marketing Nike or Reebok, K Swiss abandoned plans for celebrity endorsements and thousands of models, and decided to create the un-Nike—a sneaker for people who wanted to look good, get plenty of support for their feet, and not deal with gimmicks or fads.
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Advertising Strategy Sheet for K Swiss Product or Service Target market Competition Product’s benefit
Tennis sneakers Upper-middle-class occasional athletes Nike, Reebok, Adidas, Converse You will look better and feel better in the classic K Swiss design. How is it differentiated from the K Swiss uses a 25-year-old, classic, all-white design, with a competition? focus on performance, not frills. If the reader gets one idea out of the If you demand comfort and performance, as opposed to ad, what should it be? gimmicks and peer acceptance, it is the sneaker for you. What action should the reader take Go to the local Athlete’s Foot and ask for a pair by name. after reading the ad? Now you’ve positioned your product, established the benefits, come up with the competition's positioning, and designed a strategy.
EXERCISES I. Study the case and fill the Advertising Strategy Sheet. The Body Shop retail chain positioned itself as an environmentally friendly cosmetics company dedicated to helping people find "wellness," not "glitz and glamour." They pack their products in environmentally friendly containers, stress health and well-being in their advertising, and design their stores in cool, earthy colors, all in an attempt to back up their position in the marketplace. Advertising Strategy Sheet for the Body Shop Product Target market Competition Product’s benefit How is it differentiated from the competition? If the reader gets one idea out of the ad, what should it be? What action should the reader take after reading the ad?
II. Look at the steps involved in organizing an advertising campaign and put them into correct order. #
Step to analyze impact
#
Step to define target group
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to approve design
to determine the desired response
to choose the media
to establish message
to commission ad agency
to place ads
UNIT PROJECT Make your own Advertising Strategy Sheet about the product/service you are promoting. Advertising Strategy Sheet
Product
Target market
Competition
Product’s benefit
How is it differentiated from the competition?
If the reader gets one idea out of the ad, what should it be?
What action should the reader take after reading the ad?
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UNIT SIX (THE SIXTH UNIT)
VOCABULARY NOTES Look up the following words and word-combinations in the dictionary to make your text reading more comfortable. Feel free to fill in the space in the table; it may be useful for you someday. to run ads/business ………………………. to devote to …………………………. to acquire a customer ………………………… to switch to a competitor ………………………….
self-sustaining ……………………….. a rule of thumb ……………….. to lose a customer ………………………. delayed shipment ………………………
to whither ……………………….. to get the inside scoop …………………………. to be worth …………………………… to be engraved ……………………..
CULTURAL NOTES Use the Internet recourses and find out about the following entrepreneurs to make your text reading sensible. Feel free to fill in the space in the table; it may be useful for you someday. Stew Leonard - http://www.stewleonards.com/html/about.cfm
Richard Branson - http://www.branson.com/ or http://en.wikipedia.org/wiki/Richard_Branson
Ben Cohen and Jerry Greenfield - http://entrepreneurs.about.com/od/famousentrepreneurs/ p/benandjerrys.htm or http://www.theauthenticbrand.com
BRUSH UP YOUR MARKETING BASICS Make sure you understand the following marketing expressions, share your ideas with your group mates to make your text reading discussable. Feel free to fill in the space in the table; it may be useful for you someday. An entrepreneur is ………………………………………………………………………………. …………………………………………………………………………………………………….. A marketing budget is …………………………………………………………………………… …………………………………………………………………………………………………….. Myopic thinking is ………………………………………………………………………………. …………………………………………………………………………………………………….. Market share is ………………………………………………………………………………….. ……………………………………………………………………………………………………. The Value of a Customer is ……………………………………………………………………. ………………………………………………………………………………………………….… A gross margin is ………………………………………………………………………..………
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……………………………………………………………………………………………….…… To maintain a cash flow is ……………………………………………………………………… ……………………………………………………………………………………………….…… To patronize business is …………………………………………………………………………. TEXT SIX (THE SIXTH TEXT) STEP 5: COMPUTING A BUDGET Many entrepreneurs wonder why they need a marketing budget. They figure they’ll run a few ads and as business comes in, run some more. This myopic thinking almost always leads to disappointment. Every business has a natural rhythm, levels of sales and marketing that are selfsustaining. If you don’t do enough marketing, you whither. Do too much and you waste marketing dollars or generate more business than you can handle. The first step in creating a marketing budget is determining what percentage of sales you’ll be able to devote to marketing. A good rule of thumb is 10%, but some businesses (like perfume or cigarettes) require more. If your business is regional, ask a successful non-competitor in a different region to share his data with you, or you can call the trade association for your industry to get the inside scoop. Whatever is standard in your field, plan to increase that number by a few percentage points. Leaders often spend more on marketing, and it helps them grow. Under no circumstances should you create a marketing plan that is built around spending a smaller percentage of sales than your competition. Now you need to guess. How much are you going to sell next year? There are lots of ways to do this calculation, ranging from market share to shelf space to astrology. Come up with a range of potential first-year sales. For example, a dentist just starting out might compute it this way: Average fee per patient Possible patients per day Expected patients per day Yearly income (200 days)
$60 10 3 to 6 $36,000 to $66,000
As you can see, there's enough of a range here for the dentist to make guess of her income without having to commit to too much marketing money. What’s a customer worth? Take a minute to determine a critical marketing statistic: What's the value of each customer over his or her lifetime? Why is this statistic so important? Because it helps you determine how much you might be willing to spend to acquire a new customer. And, just as important, it forces you to realize how much it costs you to lose a customer once you've got him.
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Stew Leonard, the most successful independent grocer of all time, used this analysis frequently. He figured that the average customer would shop with him for seven or eight years before moving out of the neighborhood. With a monthly food bill of $250, that worked out to $3000 a year in sales, or $21000 over the course of seven years. With a gross margin of about 10%, that means that a customer was worth $2100 to him. Once Stew realized that each and every customer was worth more than $2,000, he was a lot more willing to replace a box of rotten strawberries or run an extra ad or service—cheap tools if they helped maintain that cash flow.
Using 10% of projected sales, our dentist figures that he/she has $3,600 to $6,600 to spend on marketing. To compute the value of a customer, answer these simple questions: 1. If you continue to provide: acceptable service and quality, how long will the customer patronize your business? 2. How much will the customer buy in the average year (make sure you include sales increases due to growth on your part or the customer’s)? 3. What's your gross margin? This number should be engraved on your forehead and you should share it with all your employees. It will help you focus on the critical elements of building your business.
EXERCISES I. Study the case of the Federal Express and fill the table of its budget. Federal Express is the company that focuses on the value of a customer. A mid-size company sends 30 packages a week (at $25 each). If a customer gets angry over a $25 shipment and switches his business to a competitor, Federal Express loses thousands and thousands of dollars. That's why every Federal Express supervisor is authorized to grant a $100 refund on the spot, no questions asked, for any delayed shipment. $100 is a small price to pay to keep an $18,750-a-year customer.
Expected packages a week Average profit per week Yearly income (25 weeks) A possible refund UNIT PROJECT Calculate the budget for your product/service. Remember about the value of the customer and include other expenditures which are necessary.
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Budget Average profit per week Yearly income Expenditures on marketing
ADDITIONAL HINTS Do some analysis and come up with your own range of projected sales and then take a percentage. Remember, some businesses need a greater investment (especially at first) while others are able to do just fine with less (for example, a gypsum mill can probably get by with less than 1% invested.) Typical general marketing expenses: Advertising agency commissions Salaries for marketing managers Salaries for marketing support e.g. marketing assistants Office space Fixtures and fittings Travel costs Other direct and indirect marketing costs, including marketing communications costs (see below). Typical marketing communications costs: Personal Selling
Advertising
Public Relations
Direct Marketing
Printing
Proposal Development/bid submittal
Mailing
Networking
Website Development & Hosting
Event Attendance
Brochure Design
Sales Promotion
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UNIT SEVEN (THE SEVENTH UNIT)
VOCABULARY NOTES Look up the following words and word-combinations in the dictionary to make your text reading more comfortable. Feel free to fill in the space in the table; it may be useful for you someday. business cards ………………………. to induce ………………….. to require day-to-day decisions ………………………………
newsletters ………………………. pitch …………………………. skills …………………….
gift certificate ……………………….. to gain= obtain= garner …………………. to contact prospects ………………………..
CULTURAL NOTES Use the Internet recourses and find out about the following companies and products to make your text reading sensible. Feel free to fill in the space in the table; it may be useful for you someday. Black & Decker - http://www.blackanddecker.com/ or http://en.wikipedia.org/wiki/Black_%26_Decker
Wal-Mart - http://www.walmart.com/ or http://en.wikipedia.org/wiki/Wal-Mart Nordstrom - http://about.nordstrom.com/ Citicorp - http://en.wikipedia.org/wiki/Citigroup or http://www.citigroup.com/citi/press/index.htm Walt Disney - http://www.justdisney.com/walt_disney/ or http://corporate.disney.go.com Hewlett-Packard - http://en.wikipedia.org/wiki/Hewlett-Packard or http://www.hp.com/hpinfo/abouthp/
BRUSH UP YOUR MARKETING BASICS Make sure you understand the following marketing expressions, share your ideas with your group mates to make your text reading discussable. Feel free to fill in the space in the table; it may be useful for you someday. Outdoor advertising is ……………………………………………………………….…… …………………………………………………………………………………………………. Mini-media is ………………………………………………………………………….……… …………………………………………………………………………………………………. Direct- mailing is ……………………………………………………..………………….…… …………………………………………………………………………………………………. Telephone selling is ………………………………………………………….………….…….
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………………………………………………………………………………………….………. A competitive advantage is ……………………………………………..……………………. ……………………………………………………………………………….…………………. Marketing implementation is ………………………………………………………..………. …………………………………………………………………………………………………. Publicity support is ………………………………………………………….……………….. …………………………………………………………………………………………………. Cultlike culture is ………………………………………………………………….………… …………………………………………………………………………………………………. Staff is ………………………………………………………………………………………… …………………………………………………………………………………………………. TEXT SEVEN (THE SEVENTH TEXT) STEP 6: CHOOSING YOUR TOOLS Once you’ve determined your budget, it’s time to choose the marketing tools. 1. Advertising. It – is the heart of most guerilla marketing plans. You can use advertising on radio, TV, outdoor advertising, Yellow pages advertising, etc. to build your business one customer a time, to focus on your target market and garner more profits. 2. Mini – Media. The impact that business cards, banners, posters, brochures, order forms, or newsletters have on prospects is often overlooked by traditional mass marketers. Guerillas know that these tools can be crucial elements in reaching a target market, promoting your product: for example gift certificates help to induce repeat buying. 3. Targeted media such as direct-mailing is a perfect guerilla tool. It is easy to test and low-cost. It allows you to contact prospects directly, make your pitch, and invite them to become customers. 4. Telephone selling is the real value as it’s one-to-one communication, it guarantees that you’ll get instant feedback. The telephone can make the buying experience more pleasant and efficient for your customers and more profitable for you. Look at through each tool and decide which one is a cost-effective way to reach your target market.
STEP 7: IMPLEMENTING A MONTH-BY-MONTH MARKETING TIMETABLE
Many managers think that "doing things right" (implementation) is as important as, or even more important than, "doing the right things" (strategy). The fact is that both are critical to success. Companies can gain competitive advantages through effective implementation. In an increasingly connected world, people at all levels of the marketing system must work together to implement marketing plans and strategies. At Black & Decker, for example, marketing implementation for the company's power tool products requires day-to-day decisions and actions by thousands of people both inside and outside the organization. Marketers make decisions about target
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segments, branding, packaging, pricing, promoting, and distributing. They connect with people elsewhere in the company to get support for their products and programs. They talk with engineering about product design, with manufacturing about production and inventory levels, and with finance about funding and cash flows. They also connect with outside people, such as advertising agencies to plan ad campaigns and the media to obtain publicity support. At all levels to be successfully implemented, the company must be staffed by people who have the needed skills, motivation, and personal characteristics, who share the system of values and beliefs in the organization. A study of America's most successful companies Wal-Mart, Microsoft, Nordstrom, Citicorp, Procter & Gamble, Walt Disney, and Hewlett-Packard found that these companies have almost cultlike cultures built around strong, market-oriented missions.
EXERCISES I. Before spending money on media, ask yourself these questions to be sure you’re ready to start your promotion campaign: 1. What benefit do you offer the consumer? ......................................................................................... 2. Exactly who is your consumer? Be specific ……………………………………………………….. 3. What is your position relative to your competitors? ………………………………………………. ………………………………………………………………………………………………………… 4. What barriers exist to keep others from stealing your market share? .............................................. ……………………………………………………………………………………………………….. 5. How will you (personally) communicate with your customers? ...................................................... ………………………………………………………………………………………………………… 6. How will you measure the response of your promotions? ………………………………………… ………………………………………………………………………………………………………… 7. Do you have sufficient inventory and manpower to deal with increased demand? ………………. ………………………………………………………………………………………………………… 8. Have you worked through the non-media tools to ensure that you've established the framework for a successful media campaign? ............................................................................................ ............. ………………………………………………………………………………………………………… 9. What is your month-by-month media plan? Have you planned for enough frequency with your target market? Do you have enough money budgeted to support the plan even if initial sales are weak? …………………………………………………………………………………………………. ………………………………………………………………………………………………………… 10. Does your media meet your tactical and strategic goals, or is it just pretty? …………………….. …………………………………………………………………………………………………………
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II. Take a Guerilla Audit. Your business is new there's a step that you can take in this audit to understand if you’ve worked out everything: Show your new advertising to some strangers. Ask them the same three questions: 1. Who is our target customer? 2. What benefits do we offer that our competition doesn't? 3. If you could use just 2 sentences to describe what our business stands for, what would they be? If any person you ask can't answer these questions after reading your ad, think twice (maybe three times) before spending a penny running it.
UNIT PROJECT Part 1. Find out tools that appeal to you and will be useful in promoting your product/service on to the market and fill the Table. Tool
Cost per use
Monthly frequency
Monthly cost
Part 2. Having ranked the tools that appeal to you, fill in this table to determine your media plan: Tool
Jan Feb Mar Apr May Jun Jul
Aug Sep Oct Nov Dec
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UNIT EIGHT (THE EIGHTH UNIT)
VOCABULARY NOTES Look up the following words and word-combinations in the dictionary to make your text reading more comfortable. Feel free to fill in the space in the table; it may be useful for you someday. swanky …………………….. a list broker ……………………… trouble coping ……………………… tack ……………………….
to put out a shingle ……………………… expectant patients …………………… a free play date ……………………… hourly rates ……………………….
to be aware of ………………….. credentials ……………………….. to be mailed in batches ……………………… a get acquainted session ………………………..
CULTURAL NOTES Use the Internet recourses and find out about the following companies, products and concepts to make your text reading sensible. Feel free to fill in the space in the table; it may be useful for you someday. Park Avenue - http://en.wikipedia.org/wiki/Park_Avenue_(Manhattan)
Parents magazine - http://www.parents.com/parents-magazine/
Motherhood - http://www.babyzone.com/mom_dad/motherhood
BRUSH UP YOUR MARKETING BASICS Make sure you understand the following marketing expressions, share your ideas with your group mates to make your text reading discussable. Feel free to fill in the space in the table; it may be useful for you someday.
Crowded market is ………………………………………………………………………. ……………………………………………………………………………………….…….. A specialty is ……………………………………………………………………………… …………………………………………………………………………………………….. A market leader is ……………………………………………………………………….. …………………………………………………………………………………………….. A personalized letter is ………………………………………………………………….. ………………………………………………………………………………………….…. Word of mouth is ………………………………………………………………………... …………………………………………………………………………………………..…
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TEXT EIGHT (THE EIGHTH TEXT)
CASE STUDY 1 : PSYCHOTHERAPIST Donna is a newly licensed psychotherapist trying to build a practice on New York's swanky Park Avenue. Realizing that the market is quite crowded, she understands that just putting out a shingle is an unlikely way to attract new business. But in her words, "I can't really go out and put up a billboard." Donna decided to segment her market. She needed a specialty and chose new mothers. Why? First, because as a new mother herself, she was aware of the stresses and joys of motherhood and felt she had something to offer. But just as important, she understood that by focusing on a small market, she could quickly position herself as a market leader and generate the word of mouth that is so critical in a business like psychotherapy. Having established her target market, her positioning, and the benefit to her customers, Donna called a list broker and bought a list of 500 women who lived within ten blocks of her office and were scheduled to have a baby within the next six weeks. (These lists are created by list companies, who pay gynecologists for the names of their expectant patients. Parents magazine and others rely on these lists for promotions.) Once she had the list, Donna wrote a personalized letter to each mother, timed to arrive two weeks after each baby was born. The letter outlined some of the feelings that Donna had gone through when she had her baby nine months earlier, and then described her credentials and how she might be able to help a mother who was having trouble coping. She offered a free play date, on which the new mothers could come to her office and meet other new moms, and share stories and experiences. This session was totally unpressured and gave moms a chance to meet her without any stigma. The envelopes were hand addressed, hand stamped, and mailed in batches. Donna actually tried three different letters, each taking a slightly different tack. She also put two different hourly rates in her letters—and carefully recorded which of the six letters each person got. Over the next two months, Donna received 40 phone calls from her letter; 25 women came to a get acquainted session, and 3 became patients, generating $7,200 in fees over the course of a year. More important, she started the process of generating word of mouth, and discovered a marketing method that she could use every three months if she needed it.
EXERCISES I. Study Donna’s case and suggest other ways of winning the position on the market. II. Write a personalized letter to your potential customer. Try to attract his/her attention by giving a special offer of the product/service (for example taking a part in an exclusive event).
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UNIT NINE (THE NINETH UNIT)
VOCABULARY NOTES Look up the following words and word-combinations in the dictionary to make your text reading more comfortable. Feel free to fill in the space in the table; it may be useful for you someday. tough …………………….. incredible ………………………. a staggering array ……………………. behemoth humming ……………………….
to emerge ………………………… to mortgage a house …………………… courtesy ……………………. panache …………………….
annual sales ……………………… bold, deliberate …………………….. spouse ……………………… aspiring ………………………..
CULTURAL NOTES Use the Internet recourses and find out about the following companies and products to make your text reading sensible. Feel free to fill in the space in the table; it may be useful for you someday. Guerrilla marketing association - http://www.guerrillamarketingassociation.com/.
Alabama (AL) Alaska (AK) Arizona (AZ) Arkansas (AR) California (CA) Colorado (CO) Connecticut (CT) Delaware (DE) District of Columbia (DC) Florida (FL) Georgia (GA) Hawaii (HI) Idaho (ID) Illinois (IL) Indiana (IN) South Carolina (SC) Iowa (IA) Kansas (KS) Kentucky (KY) Louisiana (LA) Maine (ME) Maryland (MD) Massachusetts (MA) Michigan (MI) Minnesota (MN) Mississippi (MS) Missouri (MO) Montana (MT) Nebraska (NE) Nevada (NV) New Hampshire (NH) New Jersey (NJ) New Mexico (NM) New York (NY) North Carolina (NC) North Dakota (ND) Ohio (OH) Oklahoma (OK) Oregon (OR) Pennsylvania (PA) Rhode Island (RI) South Dakota (SD) Tennessee (TH) Texas (TX) Utah (UT) Vermont (VT) Virginia (VA) Washington (WA) West Virginia (WV) Wisconsin (WI) Wyoming (WY)
BRUSH UP YOUR MARKETING BASICS Make sure you understand the following marketing expressions, share your ideas with your group mates to make your text reading discussable. Feel free to fill in the space in the table; it may be useful for you someday. A guerrilla marketer is……………………………………………………………….. …………………………………………………………………………………………. Creativity is…………………………………………………………………………… ………………………………………………………………………………………… Customer-sensitivity is ……………………………………………………………… ………………………………………………………………………………………… Perseverance is …….………………………………………………………………… …………………………………………………………………………………………
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Guts are ………………………………………………………………………………. ………………………………………………………………………………………… Profitability is ……………………………………………………………………….. ………………………………………………………………………………………… The guerrilla weapon is …………………………………………………………...... ………………………………………………………………………………………… Inventory is …………………………………………………………………………… …………………………………………………………………………………………. To play fair with customers is ……………………………………………….……… …………………………………………………………………………………………. TEXT NINE (THE NINETH TEXT) CASE STUDY 2 : GUERRILLA MARKETER OF THE YEAR – JORDAN’S FURNITURE BOSTON, MA
More than a thousand businesses around the country entered our inaugural competition for America's top guerrilla marketer. The competition was tough—there is definitely an impressive group of innovative, successful guerrillas operating out there. But as we sized up the success stories, one company emerged from the pack in terms of creativity, customer-sensitivity, perseverance, guts, and profitability. Jordan's Furniture, located near Boston, MA, is our choice for Guerrilla Marketer of the Year. Jordan's has fearlessly tried almost every guerrilla weapon—and made most of them work. They stand as living proof that guerrilla techniques can radically increase the size and profitability of a business (and help you have more fun, too). When Barry and Eliot Tatleman took over Jordan's Furniture in early 1973, the single store in Waltham, MA, had eight employees and annual sales of about $500000. Last year, sales at the three Jordan's locations stood at an incredible $100.000.000 a year. That's an increase of 20000% in just over 20 years, or an average 1000% growth per year! How did they do it? Not by mortgaging their houses to buy expensive advertising. In fact, over the years, they have spent less than half the industry average on their advertising. But they do it so well that most Bostonians and Southern New Hampshirites have become convinced there is really only one furniture store in town. Every marketing move they make seems bold, deliberate, and definitely ―guerrilla‖. Their ads are targeted and efficient—and the brothers are smart about the radio time they buy, always maximizing their advertising dollars. Their message is repeated over and over. Their stores offer a staggering array of innovative customer-service courtesies. (For instance, customers who pick up furniture get a free car wash. If you come by on Sunday afternoon you can watch the ball game in
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amazing comfort while your spouse shops. Customers enjoy riding the $3 million amusement park ride in back of the store. The list is almost endless.) An average furniture store turns its inventory over three times a year. That means the average piece of furniture sits unsold for about four months. At Jordan's, a piece of furniture is lucky to last a month (they turn eleven times a year). This inventory turn leads to huge sales per square foot (about $790), which in turn generates huge profits and keeps their advertising war chest fall. Barry and Eliot rely on more than gimmicks to keep their furniture behemoth humming. ―Our customers know we stand behind our products. We have one of the best reputations in the industry with the Better Business Bureau,‖ says Barry. They do more than just play fair with their customers. Each salesperson is empowered to make decisions, so no one passes the buck at Jordan’s. Jordan’s leaves no guerrilla marketing stone unturned — their efforts are intense, effective, and filled with panache. In total, they offer a challenge and a model for all aspiring guerrillas. Congratulations and thank you!
EXERCISES I. Nominate your business for next year's Guerrilla Marketer of the Year. Prepare the example of a brochure informing about the achievements of the company. II. Arrange the contest of Guerrilla Marketer of the Year in the group.
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UNIT TEN (THE TENTH UNIT)
VOCABULARY NOTES Look up the following words and word-combinations in the dictionary to make your text reading more comfortable. Feel free to fill in the space in the table; it may be useful for you someday. sappy ……………………… to be wrapped up on ……………………………. a traffic jam ………………………
a spoke in the wheel ………………………… to amaze …………………………….. stagnation …………………………..
a sounding board for ………………………… to come down …………………………. burden ………………………….
CULTURAL NOTES Use the Internet recourses and find out about the following companies and products to make your text reading sensible. Feel free to fill in the space in the table; it may be useful for you someday. Jordan’s - http://www.jordans.com/about/history.asp
BRUSH UP YOUR MARKETING BASICS Make sure you understand the following marketing expressions, share your ideas with your group mates to make your text reading discussable. Feel free to fill in the space in the table; it may be useful for you someday. Pricing is …………………………………………………………………………………… ……………………………………………………………………………………………… A commercial is ……………………………………………………………………….…... ………………………………………………………………………………………………. ………………………………………………………………………………………………. ………………………………………………………………………………………………. A win-win-win is ………………………………………………………………………….. …………………………………………………………………………………………….... ………………………………………………………………………………………………. ……………………………………………………………………………………………… The pent-up demand is …………………………………………………………………… ………………………………………………………………………………………………. Credibility is ………………………………………………………………………………. ……………………………………………………………………………………………… …………………………………………………………………………………………….... Teamwork is ………………………………………………………………………………. ………………………………………………………………………………………………
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TEXT TEN (THE TENTH TEXT) AN INTERVIEW WITH BARRY AND ELIOT Is there a philosophy behind Jordan’s? We have always done what we do because we believed it was right, not because we were focused on profits...and it has worked. We believe in servicing the customer. It sounds kind of sappy, but we believe it, our people believe it, and we do it. How important is price to your success? The public has to feel it is getting value along with service. One is not enough — you have to have both. Pricing is an important spoke in the wheel, but it needs to be kept in line with the other spokes. Do you write your own stuff? Yes. We get ideas from everywhere — our people, current events, things we read, concerns of the public. We had a third brother — Milt — who passed away a year ago. He did not work in the business day-to-day, but he was extremely involved in our creative process. He was a wonderful sounding board for ideas and we miss his creative genius. He used to say that he had created Barry and Eliot because he was the one who talked us into going on the radio more than twenty years ago. Our customers have gotten so wrapped up on our commercials that we get hundreds of letters—many of them with ideas—each month! It's great to know that they feel they are part of the process. What was the most effective promotion you've ever done, and why? I'm not sure you would call it a promotion, but "MOM," our Motion Odyssey Movie, would definitely be our most effective initiative. We call "MOM" a win-win-win. Our customers win because it’s such a fun and they expect fun in our store; the business wins because "MOM" brings new people into the store; and the community wins because we give all the profits from "MOM" to charity (over $300000 to date). The power of our advertising still amazes us. Every time we open a new store, the pent-up demand and the credibility that we have built up are so great that we actually have to get on the radio and tell people not to come down for awhile. Our store openings created two of the worst traffic jams ever seen in the area! Do you still prefer radio? Why? We have a very soft spot in our hearts for radio, but we don't necessarily prefer radio over every other medium. It depends on who your customer is. We do feel that whichever medium you
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select, you need to do it right and dominate it. We have selected radio and television and they work for us. Is training new employees a challenge? It's easy to "Jordanize" fresh new employees. The bigger challenge to training new employees is keeping employees that have been with you a long time motivated. We spend the most time working on the growth, training, motivation, and teamwork of our existing staff. How have you handled your growth? We recognize that growth can present more problems than stagnation. We work very hard at trying to be ready for it. Sometimes we're caught short and business increases too rapidly. At those times, the burdens on each employee increase. It's critical to our success that we recognize and appreciate how hard our team works—especially at high-stress times. What's next for Jordan's? It’s never been our dream to be the biggest—only the best. We're looking to, add a fourth store in the near future that will be bigger, better, and more innovative. We would like to bring the shopping experience to an even higher level and to have our displays and entertainment offer a greater level of excitement.
EXERCISES I. Read the information about what a guerilla marketer should avoid doing when promoting a product/service. Add what shouldn’t be done and share your ideas with group mates. THINGS A GUERRILLA SHOULDN’T DO 1. Run a nationwide ad campaign without testing it. 2. Be less than 100% truthful with customers. 3. Refuse to fix a customer's problem because of store policy. 4. Pull an ad campaign while it is still producing. 5. Ignore customer mail and phone calls. 6. Focus on only mass media. 7. Spend a dollar without having a marketing plan. 8. Hesitate when asked to describe her marketing position in two sentences. 9. Be afraid to fail. 10. …………………………………………………………………………………………………. 11. …………………………………………………………………………………………………. 12. …………………………………………………………………………………………………. 13. ………………………………………………………………………………………………….
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II. Read ―5 Ways to Make Time for Marketing‖ by C.J. Hayden and offer 3 other ways. "I don't have time to market." It's a common complaint from self-employed professionals. When you are the only one who can serve the clients, manage the business, and perform all the sales and marketing functions, time becomes the most precious commodity you have. How ca n you find time for marketing with so many other important priorities? Maybe the real answer is not to find more time for marketing, but to MAKE time. Here are some examples of how that can work: 1. Attending workshops, business mixers, and cultural events. Whenever you plan to attend an event like this, consider inviting a business contact to join you. Just extending the invitation will contribute to building a stronger relationship between you. 2. Having lunch or coffee with a prospect or colleague. You may find conversation flows more easily when there is a group. 3. Taking a walk, visiting the gym, and other forms of exercise. Invite someone to join you for a walk in the park, run around the track, or a game of tennis. You don't have to learn to play gol f in order to get exercise and do business at the same time. 4. Reading an article. Any time you read an interesting article in the newspaper, a magazine, or online, think of three people you could send it to. Writing a short "thought-you-would-beinterested" note will take only a moment, but can make a big impression on the recipient. 5. Attending social events. The best business relationships often begin casually in social environments. Keep your business cards in your pocket when you attend a wedding, housewarming, holiday party, or your child's soccer game. After you ask, "How do you know our hosts?" or "Which child is yours?" make your next question, "What do you do?" 6. ……………………………………………………………………………………………………… 7. ……………………………………………………………………………………………………… 8. ………………………………………………………………………………………………………
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FINAL LESSON ON TOPIC 1 – MARKETING PLAN
Congratulations!!! It is the day of the presentation of your marketing plan. To make your presentation successful we advise you to get ready with the following: 1. Prepare a presentation of Power Point (when working at it feel free to you all your creativity: use pictures, photos, music and video and whatever you like). 2. Learn the main points of your marketing plan by heart to look confident in front of your class-mates. 3. Get ready to answer different questions on your marketing plan (look up some information about similar business or product in the Internet). 4. When making your presentation SMILE!!!
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Издательство ГОУ ВПО «Благовещенский государственный педагогический университет» 675000, Амурская обл., г. Благовещенск, ул. Ленина, 104. Отпечатано в типографии ООО «Макро-С Партнер», 675000, Амурская обл., г. Благовещенск, ул. Текстильная, 48, тел. (4162) 42-40-24. Формат бумаги 84х120 1/8. Бумага 65 г/м2. Гарнитура Times New Roman. Подписано к печати 15.01.2011 г. Тираж 100 экз.