MARKETING

10. The real job or goal of marketing is to produce what customers need so well that you control the entire market for your products.

10. The real job or goal of marketing is to produce what customers need so well that you control the entire market for your products.

4. I always round prices up in my head, but still, prices like 99,95 euros encourage me to buy a product, because it affecting me psychological that is less than 100 euros, whatever the difference is just in 5 cents.

4. I always round prices up in my head, but still, prices like 99,95 euros encourage me to buy a product, because it affecting me psychological that is less than 100 euros, whatever the difference is just in 5 cents.

5. Well, for example two supermarkets at a Christmas period was selling Christmas attributes like decorative Christmas trees, lights and other stuff, and between them was like price wars, because they was decreasing prices. The price wars wins companies that are the market leaders in my case, win supermarket which I like more.

5. Well, for example two supermarkets at a Christmas period was selling Christmas attributes like decorative Christmas trees, lights and other stuff, and between them was like price wars, because they was decreasing prices. The price wars wins companies that are the market leaders in my case, win supermarket which I like more.

5. Why has the main focus of companies moved first from finance to engineering, and then from engineering to marketing?

Because the main demand on companies first changed from controlling costs to competing with other companies with similar products, and then to serving customers.

2. Why did some companies become customer driven?

Because there was more competition, and because technology developed and allowed companies to change products to match what customers asked for.

1. Under what circumstances would manufacturers either set process that try to maximize profits, or deliberately charge a low price?

Companies with high-quality product can use a price-skimming strategy to make maximum revenue before competing products appear on the market. Also, companies with the new products can also charge a low price in order to get a large market share before competitors appear on the market.

6. What 2 negative descriptions of marketing does he reject?

Fooling the customer and falsifying the company's image.

2. Give examples of products for which demand is elastic, and which you would only buy if the price went down?

I think that would be books, because a lot of books we can find in libraries, so it is not necessary to buy it, but if prices went down on books, so I will buy them.

3. Which products are for you not price sensitive?

I think, it is necessary food products like milk, bread, meal and others. Because you can't refuse them because they are more expensive. Food quality is very important, there should be no excuses to not buy.

8. What is wrong with focusing on research and developing and creating new products?

If you focus on your R and D you forget about the customer, the market and the competition.

READING: Marketing is everything

In this text McKenna is telling about sales-driven companies and that they trying to change customers' minds and make them like the products they produced. Also, that some companies become customer driven because competition increased and that old approach is slow and unresponsive. He describes marketing as not function, but as a way of doing business. McKenna also saying about two mistakes of US companies - the first one is that some are interested in creating new products and others become absorbed in the competition of selling things. And he emphasized that the real job or goal of marketing is to produce what customers need so well that you control the entire market for your products.

9. What is wrong with focusing on increasing market share?

It is like fighting over crumbs rather than trying to own the whole market.

7. What does he say about customers and market-driven companies?

Market-driven companies integrate the customer into the design of the product.

Which definition of marketing do you prefer and why?

Marketing means creating needs: producing useful things customers didn't know they wanted until you produced them. Because it sounds modern and I think, it is all about giving people all needs they want, even if they not asking. And marketing is the ability to see what customers need and make that for them. For example, I didn't know I need apps for editing different photos, but it's really cool thing, because you can make photo look better, more realistic.

READING: The product life cycle

On introduction stage(product launch) sales are low, then they rise quickly during the growth stage, level off at the maturity stage, before eventually falling during the decline stage until the product is withdrawn from the market. In the first stage are products or services that are not yet established, or well known - called problem children. In growth stage are product which have both high market growth rate and high relative market share, which called - stars. In the maturity stage are cash cows - products that have high relative share, but little market growth. And in the last decline stage are product or services called dogs - that have low relative market share and low market growth.

4. What does McKenna mean when he describes the old approach as 'unresponsive'?

The old approach is all about testing and marketing a company's idea, rather than responding to a demand that comes from customers.

Comprehension 1. According to McKenna, what did sales-driven companies try to do?

They tried to change customers' minds and make them like the products they produced.

3. Why does he say market-driven companies do?

Work with companies, customers to understand their strategies, and adapt their products to fit them, and in this way try to create a new market.