Products, services, trade marks and brands

PRODUCTS, SERVICES, TRADE MARKS and BRANDS

Objectives:

get familiarized with specific terminology and concepts

In economics, market is defined as being the place for all potential customers to share for a particular need or want. Marketing is the process of developing, pricing, distributing and promoting the goods or services that meet the needs or wants of the customers. When the activity of market research, new product development, distribution advertising, promotion, product improvement and so on, are combined successfully the product almost sells itself. This happens only when the product or service is better that those of the competitors.

Marketing opportunities are generally isolated by market segmentation according to customers needs and requirements, or buying habits. But the producers or service providers must take into account the existence of competitors when they identify a target market. The marketers have then to design their marketing strategies and plan their marketing programmes and then organize, implement and control the marketing effort. That can be considered classified as the 4 Ps: Product, Price, Promotion, and Place. There are several elements to be considered in marketing a product: quality, features, style, trade mark, brand name, size, packaging, services and guarantees; as for price, it includes price list, discounts, the length of the payment period, possible credit term. Promotion groups together advertising, publicity, sales promotion and personal selling; while place is an integrated concept of distribution channels, coverage of the market, location of points of sale, inventory size; another marketing plan step is to create long term demand on the market by changing the particular features of the product to meet the customer needs or market conditions.

Marketing can also influence or even change consumers needs or wants, by regulating the level, timing and character of demand.

In the end of the Second World War, a new economic era began. The production systems of the countries that had been at war had been destroyed, and in 1945 they began an enormous effort to recover.

Today we can see the development of a wave of social change the third wave which at the end of the war set in motion. Change is happening so fast that all organizations, and especially companies, have to adapt constantly. The improvement in peoples standard of living, the development of new technology and the growing pressure of demand are a challenge which must be met.

Thus, no company can look-in on itself as companies used to do in the past. A company cannot ignore the world around: it must become an open system in constant intercourse with the society. In order to survive, then, the company must adopt a strategy of openness towards society in which it operates. This strategy will determine the existence of exchanges (flows) with a variety of entities. Of course, this opening to the outside requires a type of management which will always be aware of the large variety of exchanges

generated: adaptive management that opens the company to the outside and uses the so-called instrumental cycle as an important technique.

The instrumental cycle defines three sequential and interactive aspects of decision-making:

- Planning, which consists of identifying the means the company has at its disposal, looking for the best opportunities and the best way to take advantage of them.

- Organization which consists of the means by which the company puts its planning process into practice.

- Control which makes it possible to assess the results obtained and compare them with the results required.

Historically speaking, however, this change has taken place gradually. Company slowly began to realise the need to open up to the market. This evolution is normally considered to have four stages:

production

sales

marketing

social marketing

At the beginning of the century there was the first major explosion of demand. This increase in demand naturally caused companies to expand a great deal. It was the age in which mass production reached its height. As demand was high, the entrepreneur made decision on the basis of the companys interests and internal information. No one was concerned with the market as any product sold as long it was reasonably priced and of minimum quality. So the main concern was production.

In October 1929, a deep crisis beset the economy of the USA. This crisis had repercussions all over the world. The thirties began under the shadow of economic depression. Faced with difficulties from the point of view of demand, companies had to try a new course of action. It was no longer enough just to produce; production had to be sold as well; the customer had to be pushed into buying.

What had to be done to increase sales?

Well, companies improved their manufacturing process, tried to reach new markets and included psychology in the training of salesmen. Competition increased and, with it, efforts were now begun to analyze the market and set up distribution systems.

Around the fifties, after the end of the Second World War, a new company consciousness began to develop. While in the preceding period attention was paid mainly to the companys need to sell, in this stage they began thought to the customers needs. This is the so called marketing attitude. For the first time, there was market research and studies, production planning, concern about determining prices, advertising campaign. The emphasis was now on identifying the markets needs and values and adapting the company to them to ensure its success.

More recently, the social outlook of the company has to led marketing to concern itself with the more profound interests of the consumer and society. Concern of an ethical nature has begun to appear.

Products and services are not an end to themselves but a means to towards satisfying the customers wants and needs. That leads to the marketing concept that is a programme to be completed. To achieve this, the concept is accompanied by two of its basic components: integrated marketing and marketing management.

The first one is merely the transmission of the marketing concept to the whole company. At a bank, for example, it means that all the departments recognize the effects of their actions on attracting and keeping customers. Marketing management is the analysis, planning, activation and control of the programme, designed to find out to satisfy the wants and needs of the markets in question, while bearing in mind the company; and marketing management is the development of the work needed to put it into practice.

XII. Listen to the cassette, fill in the blanks, then translate and learn the unknown words:

There is nothing particularly unusual about Place Dumon, a ________ square in suburban Brussels, ringed by _________ shops. Until, that is, you notice how the locals purchase their ___________. For they are paying for ________ spaces, picking up newspapers at the Gavilan newsagent, _________ to the Antoine's bakery for a __________ and even buying babies' _________ at the Minou's boutique, all without reaching a single note or coin.

The reason is PROTON, Belgium's experiment in __________ cash. Proton is one of the several 'electronic ____________', being tested around the world. The e-purse is a chip-based, or '____________' card that stores digital money which, its fans hope, may one day, replace ___________ notes and fiddly coins in small purchases.

A smart card is ____________, thanks to the sealed-in high security chip. It stores one's personal data as individually and characteristically as if it were one's ___________ Encrypted with one's personal, absolutely singular code, it makes every _____________ as secure as if it were in a bank vault. Any attempt to crack this safe causes the chip to self-destruct, automatically __________ the card.

A smart card is ______________. Everything it knows remains strictly confidential. The chip makes sure of that - with sophisticated identification procedures and ___________ that protects one's confidential data against unauthorized access. A smart card offers complete security, which makes it predestined for universal __________: it can be used as an electronic wallet to pay for purchases, taxi _________ or hotel bills.

The chip cards now include a debit-card _________. Eventually a single card may combine the e-purse with credit, debit and ________ cards. It is also developing special telephones that would allow customers to _________ their cards at home. If a banknote is lost, tough ________; if however, a plastic card is misplaced or broken, the ________ on it can be reimbursed because all debits are logged centrally. Central _________ has disadvantages too. Many customers may prefer to move _______ cash around without their every transfer being logged. In addition, centralized schemes may prove more costly to operate, making small transactions, including the purchase of small bits of information and __________ over the Internet, uneconomic. Proton also faces complaints about parochialism, as its chip can hold just one currency, while Mondex and Visa cards can store value in up to five different _________ and it can present inter-operability. An _________ payment system will allow, say, a Belgium customer to spend his e-cash in Switzerland. Most pundits think that important banking institutions will have to pair up in big payment ________.The two bank-owned groups - Visa and Master Card - are already around busy buying up purse around the world, by taking controlling stakes in the domain, or absorbing e-cash technologies.

But if the history of credit cards is a guide, no more than two or three of the smart-card schemes are ________ to win global acceptance.

stroll; newsagent; unique; signature; encryption; cobble; function; doughnut; discrete; parking; smart; confidential; luck; digital; employment; software; currency; fare; loyalty; accounting; virtual; crumple; outfit; quaint; balance; wares; reload; bit; void; network; provider; integrate; likely.

Forms of money:

Choose the correct word to complete the sentences:

1. The pound, the dollar and the leu are called _________

a) cash; b) monies; c) reserves.

2) The currency that is used in a foreign country is called _______

a) money; b) cash; c) foreign currency.

3) Money that you borrow from a commercial bank is called ________

a) capital; b) loan; c) subsidy.

4. Money in notes and coins is called _________

a) monies; b) capital; c) cash.

5) The whole amount of money received by a company or a person is called _________

a) income; b) wages; c) salary.

6. The money that you have to receive back when the price is lower than the denomination of the banknote you give to the shop assistant is called ___________

a) cash; b) compensation; c) change.

7. Money earned by someone for a month's (professional) work is called _________

a) income; b)wages; c) salary.

8) A manual worker receives __________

a) income; b) wages; c) salary.

9). Retired persons receive ____________

a) pension; b) aid; c) subsidy.

10) When setting a new company you need ___________

a) loan; b) fund; c) capital.

11) You pay a loan to a bank regularly in _____________

a) a) fee; b) income; c) installment.

12. You pay a ___________ to doctors, lawyers, private schools

a) revenue; b) fee; c) capital.

13) Producers are sometimes helped to sell cheaper through ________

a) loans; b) reserves; c) subsidy.

14) A person can have a part of a business called _________

a) deposit; b) budget; c) stake.

15) Money kept in a ____________ for paying pensions is called _______

a) fund; b) deposit; c) budget.

EXERCISES

I. Choose the best alternative to complete each sentence:

1. You must keep staff _________ especially when things get difficult.

a) generated;  b) motivated; c) frustrated; d) electrified

2. Weigh up the _________of each alternative before deciding.

a) checks and balance b) assets c) pros and cons; d) profits

3. A good manager must be able to handle _________situations.

a) sensible b) impressive c) touching d) touchy

4. De decided to let things_________so he dropped the subject until later.

a) freeze b) ice over c) cool down d) flare up

5. She ______creating a better atmosphere amongst the staff.

a) set about b) set off c) set out d) set down

6) We need to have ___________arrangements in case things dont work out.

a) container b) contingency c) consolidated d) consecutive

7) In a meeting you must stop people talking at __________purposes

a) opposite b) angry c) cross d) opposing

8. Why doesnt he stick to the point? Hes always going off___________

a) at an angle b) at a tangent c) by the way d) on the side

9. Its always difficult when a team is working________a deadline.

a) in b) at c) to d) opposite

10. Try to ensure that each employees _________is not too great.

a) workload b) working practice d) work-to-rule d) working party

11. Those who cant manage their time efficiently always have high stress______

a) grades b) standards c) performances d) levels

12. The more responsibilities she _________, the more mistakes she made.

a) took off b) took on c) took down d) took out

13. I hope the project continues to run as__________ as it has so far.

a) calmly b) confidently c) smoothly d) wisely

14. After _______ many unforeseen obstacles they just managed to meet their deadline

a) overtaking b) overcoming c) overwhelming d) overriding

15. What can you do to improve__________in this department?

a) morale b) mortality c) moral d) temperament

II. Make the family words starting from the following:

competitive; consumer; investment; leadership; production; supplier; beneficiary; advertising; management; business;

III. Fill in the blanks the following missing words: 1. money; 2. rules, 3. competition; 4. need; 5. share; 6. abundance; 7. amount; 8. specific; 9. demanding; 10. effectively; 11. marketing

Marketing begins with the consumer a)_________need. Something is produced in response to that need. In a marketing society, the consumer b)__________. Marketing societies have produced a great c)_________ and variety of consumer goods. They have done this by means of d)_________. Each producer competes with every other producer for a e)_________ of the market. The market is people who have f)_________ and are ready to spend. But consumers have a finite g)________ of money to spend. They will buy only what they want and need. As a nation becomes more developed, consumers become more h)___________. Their needs become more i)_________specific, and they want products that satisfy their changing needs. Only those producers who compete j)___________ will sell their products and survive. Successful producers are guided by the k)__________ concept: respond to consumers needs and wants.

IV. Match the following words with their definition:1. consumer; 2. merchandising; 3. store-count-distribution; 4. distribution; 5. product-life-cycle; 6. brand awareness; 7. brand loyalty; 8. motive.

a)     consumers well established preference for the brand; they continue to buy it despite possible advantages of competing brands

b)     moving goods from one place to another before their sale to consumers for example, from producer to wholesaler; from wholesaler to retailer.

c)     Sales promotion; paid promotion through minor media

d)     One member of the market, the user of a product

e)     Consumers knowledge that the brand exists

f)      A desire that moves a consumer to act upon a need. The motive for a purchasing decision may be conscious or unconscious, rational or emotional

g)     The number of stores that carry a given brand

The four stages that a product typically goes through: introductory,

V. Fill in the blanks the missing words: 1.floor; 2. bids; 3. globalization; 4. negotiable; 5. events; 6. leader; 7. financial guarantee system; 8. electronically;

9. exchanges; 10. guarantee; 11. open outcry

The rapid opening of economies in the Central and Eastern European countries, as well as the rapid a).. of international markets and the subsequent opening of commodity markets led to the demand for risk management tools. As a result, many commodity and derivative b) were formed as a starting point of a rapid consolidation process. The Romanian Commodity Exchange became the c).. in the

national market and has excellent terms with the world's major exchanges. It is the founder of the Association of Futures Markets and participates in international professional d).. RCE shifted from the traditional open bidding system to the system by which members trade futures contracts e).. while at their offices. f) and offers are captured on a time-priority basis. The margin system means four levels of g). which ensures the total safety of trading.

The electronic system operates only for the derivatives market, while the transactions for spot, forward and auctions market are performed using the h). system. Trading takes place on the Exchange i).. and the brokers make bids and offers in the pit, in an open outcry system. Fees and commissions are i). with the brokerage companies. Investors are protected by a j) .. .., exchange-clearing procedures and the transparency of floor operations.

VI. Translate Into English:

A. BRM tranzactioneaza contracte spot si forward pentru cereale, produse petroliere, produse metalurgice, deseuri. De asemenea, BRM organizeaza licitatii interne si internationale pentru marfuri fungibile si non-fungibile. BRM se implica atat in procesele de privatizare, restructurare si lichidare, cat si in operatiunile comerciale de vanzare sau achizitie de bunuri si servicii. Licitatiile se organizeaza atat pentru societati comerciale private cat si pentru societati la care statul sau o autoritate publica este actionar. Tranzactionarea marfurilor are loc in ringul bursier prin sistemul strigarii libere. Reprezentantii vanzatorilor si ai cumparatorilor se intalnesc fata in fata si negociaza liber pretul. Avantajele pietei fizice organizate in ringul BRM sunt: transparenta, tranzactiilor, corectitudinea acestora, comisioane mici, utilizarea informatiilor in timp real.

B. Mecanismul ce ofera posibilitatea transferului de risc la care sunt supusi producatorii si angrosistii se numeste in termeni bursieri hedging. Activitatea de hedging implica decizii importante care necesita participarea la tranzactii prin intermediul unui broker. Pentru inceput, se depune o suma care reprezinte o garantie pentru o executie corespunzatoare si pentru eventualele pierderi pe piata futures. Daca actionati short (vanzare) pozitia dumneavoastra se imbunatateste cand preturile scad sub pretul dumneavoastra de vanzare si se inrautateste atunci cand pretul creste peste pretul de vanzare. Daca actionati long (cumparare) pe piata futures, pozitia dumneavoastra se imbunatateste cind preturile cresc peste preturile dumneavoastra de cumparare si invers. Short hedge are loc atunci cand planifici sa cumperi o marfa si doresti sa te protejezi impotriva scaderii preturilor. Atunci vinzi contracte futures si cand vei fi gata sa tranzactionezi marfa, vei cumpara contractele futures si vei vinde simultan, de exemplu, cereale. Short hedge protejeaza vanzatorul impotriva scaderii preturilor. Vanzand contracte futures puteti fixa un pret pentru marfa dumneavoastra si veti completa operatiunea prin rascumpararea contractelor futures si vanzarea simultana a marfii pe piata cash.