"ม นด ุสิต ิทย าล ัยส ว หา ว เพื่อ นั้น ษา เท่า กา รศ ึก " กา รศ ึก ษา เท่า น ั้น " English for Marketing "ม หา ว ิทย าล ัยส วน ดุส ิต เพื่อ Khacheenuj Chaovanapricha M.A. (Teaching English as a Foreign Language) M.B.A. (Marketing) Faculty of Humanities and Social Sciences Suan Dusit University 2558 ั้น " ่าน ษา เท กา รศ ึก เพื่อ วน ดุส ิต าล ัยส Learning Materials หา วิท ย English for Marketing "ม Author 3rd edition 4th edition : Khacheenuj Chaovanapricha : February 2018 : August 2018 Designed and Printed by : 73 36 Copies Copies Graphic Site Media and Printing Solutions Tel : 0-2244-5081 Preface This textbook for “English for Marketing”, subject code 1552635, is designed " for Business English Curriculum, Faculty of Humanities and Social Sciences, Suan นั้น Dusit University. Its major objective aims to strengthen students in the areas of ษา เท่า English skills such communication skills, presentation skills, business reading and writing skills, etc. Moreover, this textbook also focuses on familiarizing students with กา รศ ึก basic marketing knowledge through authentic marketing project. The textbook is presented prior to discussion, listening, reading, and writing เพื่อ skills and the contents are divided into eight units including necessary special terminology in marketing field. They are marketing definitions, marketing mix and ิทย าล ัยส วน ดุส ิต marketing concept, consumer behavior, product concept, price concept, place concept, promotion concept, and marketing strategy The writer does the best to bring students’ English competence not only into "ม หา ว the real context of marketing but also into the real life practices. Khacheenuj Chaovanapricha 3 August 2015 "ม ิทย าล ัยส วน ดุส ิต หา ว เพื่อ นั้น ษา เท่า กา รศ ึก " (2) (3) Table of Contents Page (1) Table of content (3) " Preface (10) นั้น List of Figures ษา เท่า Unit 1 What is Marketing? Key Vocabulary in Context กา รศ ึก What is Marketing? Practice 1: Vocabulary เพื่อ Practice 2: Key Vocabulary Language Notes: Modal verbs ิทย าล ัยส วน ดุส ิต Defining Marketing 1 4 7 8 9 10 Practice 3: Defining Marketing 11 Language Notes: Guessing meaning from context 12 How can marketing occur? 12 Practice 4: Comprehension Check 14 Marketing Exchange Relationship 14 Practice 5: Comprehension Check 16 Practice 6: Marketing Exchange Relationship 17 The Importance of Marketing 17 Practice 7: Vocabulary 20 Language Notes: Word study (Verb and Noun) 21 Practice 8: Vocabulary 22 Summary 23 หา ว "ม 1 (4) Page Review Questions 23 24 Unit 2 Consumer Behavior 25 " References 25 นั้น Key Vocabulary in Context 29 ษา เท่า Discussion: Typical Consumer Practice 1: Customer 30 31 Language Notes: Adverbs of manner Practice 2: Consumer Behavior Consumer Behavior Model เพื่อ Language Notes: Adverb of Frequency กา รศ ึก Model of Consumer Behavior 32 33 34 34 35 Characteristics affecting consumer behavior 36 Cultural factors 36 Social factors 36 Practice 4: Cultural and Social Factors 37 Personal factors 38 Psychological factors 39 "ม หา ว ิทย าล ัยส วน ดุส ิต Practice 3: Consumer Behavior Model Practice 5: Personal Factors and Psychological Factors 39 Self-study Assignment 41 Summary 42 Review Questions 42 References 43 (5) Page Unit 3 Marketing Mix 45 45 Discussion: Four P’s 50 " Key Vocabulary in Context 51 Practice 2: Countable Noun and Uncountable Noun 53 Language Notes: To infinitive of purpose 53 Marketing Mix กา รศ ึก Practice 3: To infinitive of purpose ษา เท่า Language Notes: Countable and uncountable noun นั้น Practice 1: Key Vocabulary 52 54 55 58 The Four P’s or Eight P’s 59 ิทย าล ัยส วน ดุส ิต เพื่อ Practice 4: Kellogg’s and Marketing Mix Practice 5: Elements of Four P’s 60 Summary 62 Review Questions 62 Key Vocabulary in Context 65 Discussion: Product concept 68 Practice 1: Key Vocabulary 69 Defining the Product 69 Practice 2: Defining product 70 Language Notes: Finding the main idea 70 Practice 3: Finding the main idea 72 63 Unit 4 Product Concept 65 "ม หา ว References (6) Page 73 Product Categories 74 Consumer Products 74 Practice 5: Product Categories 75 นั้น " Practice 4: Product Classifications 76 ษา เท่า Industrial Products Practice 6: Industrial products 76 77 กา รศ ึก Branding What is a brand? Brand in Newspaper Self-study assignment เพื่อ Practice 7: Branding 78 80 81 83 84 Review Questions 84 ิทย าล ัยส วน ดุส ิต Summary References 85 Unit 5 Pricing Strategy 87 87 Practice 1: Key Vocabulary 90 Discussion: What is Price? 91 "ม หา ว Key Vocabulary in Context Practice 2: Vocabulary 92 Practice 3: Price terms 93 What is Price? 94 Word combinations with ‘price’ 95 Practice 4: Word combinations with ‘price’ 95 (7) Page 96 Practice 5: Pricing Strategy Matrix 97 Language Note: Topic of a Paragraph 98 " Pricing Strategies ษา เท่า Practice 7: Pricing Strategies Summary กา รศ ึก Review Questions References Channels of Distribution เพื่อ Unit 6 Place Concept Key Vocabulary in Context 100 101 102 103 105 105 109 112 Practice 2: Consumer Distribution Channels 113 Distribution Relationship 114 Practice 3: Retailing 115 Retailing 116 Practice 4: Store Retailing 117 Nonstore Retailing 119 Practice 5: Nonstore Retailing 119 Language Notes: Prepositions 120 Practice 6: Prepositions 121 Wholesaling 121 Practice 7: Wholesaling 121 ิทย าล ัยส วน ดุส ิต Practice 1: Key Vocabulary หา ว "ม 99 นั้น Practice 6: Choosing Topic of a Paragraph (8) Page Summary 122 Review Questions 123 124 Unit 7 Promotion Concept 125 นั้น " References 125 ษา เท่า Key Vocabulary in Context Discussion: Ways of advertising 128 130 กา รศ ึก Practice 1: Key Vocabulary Promotional Strategies Advertising Practice 2: Advertising เพื่อ The Four Major Promotional Tools 130 132 132 133 134 Practice 3: Public Relations 134 Sales Promotion 135 Practice 4: Sales Promotion 136 Personal Selling 136 Practice 5: Personal Selling 137 Practice 6: Vocabulary 138 "ม หา ว ิทย าล ัยส วน ดุส ิต Public Relations Direct Marketing 139 Practice 7: Direct Marketing 140 Summary 141 Review Questions 141 References 142 (9) Page Unit 8 Marketing Strategy 143 143 Discussion: Marketing Strategies 146 " Key Vocabulary in Context 147 Marketing Strategies Language Notes: Adjectives versus Adverbs STP Analysis Practice 3: Marketing Strategies 148 148 149 149 150 151 Companies and Markets 152 เพื่อ Practice 4: Adjectives versus Adverbs 153 Practice 6: Word combinations with ‘market’ 154 Competition 155 Practice 7: Competition 156 Product-market Strategies 157 Practice 8: Product-market Strategies 158 Summary 160 Review Questions 160 ิทย าล ัยส วน ดุส ิต Practice 5: Companies and Markets หา ว "ม กา รศ ึก Practice 2: Adjective and Adverbs in Context ษา เท่า นั้น Practice 1: Key Vocabulary References 161 Bibliography 163 Appendices Appendix A Answer Key Appendix B Indexes 167 169 195 (10) List of Figures Page Damneun Saduak Floating Market 1.2 Marketing Exchange Relationship 2.1 Typical Consumer 3.1 Four P’s 3.2 Marketing Mix 4.1 Japanese Products 4.2 Products 4.3 Branding 4.4 Ford Focus Logo 78 Rolex Logo 78 Ray-Ban Logo 79 Disney Logo 79 Uniqlo Logo 79 Coco-cola Logo 79 4.6 4.7 4.8 หา ว 4.9 15 ษา เท่า 29 เพื่อ กา รศ ึก 50 ิทย าล ัยส วน ดุส ิต 4.5 4 นั้น 1.1 55 68 68 77 4.10 Nestle Brand Mark 79 4.11 Google’s Trademark 80 4.12 Honda Jazz 80 4.13 Nestle Logo 81 4.14 Evian Logo 81 4.15 Lego Logo 81 "ม " Figure (11) Page 5.1 Different Prices of Japanese Products 94 5.2 Pricing Strategy Matrix 98 6.1 Using intermediaries " Figure 6.2 Consumer Distribution Channels 6.3 ‘Place’ in Japan 6.4 Consumer Distribution Channels 6.5 Automatic Vending Machine 7.1 Promotion in the Japanese bus 128 7.2 Ways of Advertising 129 7.3 Direct Marketing 7.4 Tupperware Party 139 8.1 A seller and a buyer in Japanese tea shop 148 8.2 Product-market Expansion Grid 158 กา รศ ึก ษา เท่า 110 เพื่อ ิทย าล ัยส วน ดุส ิต หา ว "ม นั้น 109 111 113 119 139 "ม ิทย าล ัยส วน ดุส ิต หา ว เพื่อ นั้น ษา เท่า กา รศ ึก " Unit 1 นั้น " What is Marketing? ษา เท่า In this unit, students will be exposed to the definitions of marketing from different marketing experts and professionals. It is important for the students to กา รศ ึก understand the meaning of marketing and relevant terminology, how can marketing happen, and marketing exchange relationship before going further in details. In addition, this unit also provides marketing articles, dialogues, and writing assignments. เพื่อ Language focuses and exercises in this unit aim to enhance four skills of students in ิทย าล ัยส วน ดุส ิต marketing area. Key Vocabulary in Context In order to understand basic marketing thoroughly, students need to know necessary basic marketing terminology. Study words in the box below and do the following exercises. "ม หา ว Word 1. Barter 2. Goods 3. Products 4. Product feature Meaning exchange of goods or services without using money any items which are produced from the manufacturers or factories which is called manufactured items such as refrigerator, furniture, raw materials, etc. (Synonym: merchandise, wares, products) anything that is made or produced and sold in a large amount a characteristic or a fact about a product 2 Meaning this can be separated into two aspects, someone who grows or makes food, goods or materials 6. Customer the actual or prospective purchaser who buys the products or uses services from the stores, shops, stalls or businesses 7. Consumer someone who buys goods or uses services for their own consumption 8. Commission a fee, which is based on a percentage of the sales price 9. Distribute the transfer of goods to the places to sell 10. Manufacturer a company or a factory which makes goods for selling in large quantities 11. Market (1) it is the open space or any area where people can meet to buy and sell products, or (2) it refers to the amount of people who want to buy a particular product 12. Marketer someone who works in the field of marketing 13. Market sector one part of a market, consisting of related products or services 14. Market share the section or the part of the total sales of that product 15. Market entry the way to go into a market where the company has not done business in this market before 16. Marketing any business actions or activities that manage the movement or the flow of goods and services from producers to consumers or users. It also increases the demand of consumers 17. Market place a set of trading conditions or the business environment 18. Marketing mix the combination of marketing factors or actions which influence the sales. It usually includes four P’s which are product, price, place, and promotion 19. Services the work that provided others as useful things for their daily lives 20. Superfluous more than needed or wanted 21. Target market a market in which a company aims to sell its products or services "ม หา ว ิทย าล ัยส วน ดุส ิต เพื่อ กา รศ ึก ษา เท่า นั้น " Word 5. Producer 3 Word 22. Surplus Meaning that amount which is greater than what is used or needed; the opposite of shortage, a deficiency in goods or money a shortage of money, can also be an opposite to Surplus " 23. Deficit commission manufacturer market entry product feature target market distribute market share marketing mix market place market sector surplus customer producer market ษา เท่า barter products deficit marketing consumer กา รศ ึก goods market marketer services superfluous นั้น Fill in the blanks with the appropriate words from the box. เพื่อ 1. The islanders use a system of ___________instead of money. 2. Our company produces a variety of household ___________ such as stove, ิทย าล ัยส วน ดุส ิต refrigerator, etc. 3. The ______ of our product – laundry detergent is housewives. 4. We have a lot of ___________ coming in our store today. 5. Sales representatives receive ____________ after they sell computers. 6. The factory _____________ their wooden chairs to the showrooms around Bangkok. หา ว 7. Our company has a ______________ in rural area. "ม 8. There is a _________ in this area every Mondays and Wednesday. 9. The __________ of our diaper products is toddlers. 10. Key _____________ of our organization is office furniture. 11. The mobile phone company has a 25% ______________. 12. GMM has a new _____________ in cosmetics business which it has not done business in this market before. 4 13. High sales of our new company this year depend on good ____________ techniques. 14. To remain competitive the company has to be able to adapt to the changing ________________. " 15. The launch of our new products requires the right __________. 18. The ___________of Colgate toothpaste is P&G. กา รศ ึก 19. Pink is a part of ___________________ of “Hello Kitty” ษา เท่า 17. We have to find the right _________ for the market. นั้น 16. My brother works as a food __________ with UFM co. ltd. 20. ‘Big C’ provides great customer __________. 21. The report was marred by a mass of _____________ detail เพื่อ 22. The ____________ of our hotel is tourist, foreigners, and businessmen. them. ิทย าล ัยส วน ดุส ิต 23. Skilled tailors are in _________ in southern Thailand because there are many of 24. His company has shown a __________ of innovative products, there are less new products than the competitive products. (Cambridge Dictionary Online. 2013) หา ว What is Marketing? Before reading: What is the "ม meaning of marketing in your opinion? Let’s take a look at the picture and talk with your friends about the definition of marketing. Figure 1.1: Damneun Saduak Floating Market 5 Reading: Scan all definitions of marketing below, answer the following questions and write your own definition of marketing. 1. ‘Marketing is too important to be left to the marketing department.’ (Packard. นั้น " n.d.) ษา เท่า 2. ‘In a truly great marketing organization, you can’t tell who’s in the marketing department. Everyone in the organization has to make decisions based on the กา รศ ึก impact on the consumer.’ (Burnett. 1994) 3. ‘Most people mistakenly think of marketing only as selling and promotion . . . . . This does not mean that selling and promotion are unimportant, but rather that เพื่อ they are part of a larger marketing mix, a set of marketing tools that work together to affect the marketplace.’ (Kotler. 2002) ิทย าล ัยส วน ดุส ิต 4. ‘The aim of marketing is to make selling superfluous. The aim is to know and understand the customers so well that the product or service fits him and sells itself.’ (Drucker. 1994) 5. ‘Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products หา ว and value with others.’ (Kotler. 2002) "ม 6. ‘Marketing is the performance of business activities that direct the flow of goods and services from producer to consumer.’ (Drucker. 1994) 7. ‘Marketing is getting the right goods and services to the right people at the right place at the right time at the right price with the right communication and promotion—marketing is a human activity directed at satisfying needs and wants through exchange processes.’ (Kotler. 2002) 6 Answer these questions. 1. Which statement suggests that everybody in a company is a marketer? o _____________________________________________________________________ " 2. Which statement completely discounts the importance of selling? นั้น o _____________________________________________________________________ ษา เท่า 3. Which statement emphasizes the role of the four Ps (product, price, place, promotion)? กา รศ ึก o _____________________________________________________________________ ิทย าล ัยส วน ดุส ิต definition of marketing. เพื่อ After reading: Use the words from the text as a basis to formulate your own ________________________________________ _______________________________________________________________________________ ______________________________________________________________________________ หา ว In short, after reading different definitions of marketing from different marketing "ม gurus, it can be conclude that marketing is any activities that manage the movement of the product from the producer to consumer. 7 Practice 1: Vocabulary Find the words in italics in the reading. Then match each word with its meaning. Put letter a, b, c, … in the boxes in front of the numbers. " a. the combination of marketing factors or actions which influence the sales. นั้น 1. decisions b. merchandise, wares, products 3. consumer c. making up one’s mind 4. selling (n.) d. anything that is made or produced and sold in a large กา รศ ึก amount e. any items which produced from the manufacturers เพื่อ 5. promotion ษา เท่า 2. impact 6. marketing mix f. The work that provided others as useful things for their ิทย าล ัยส วน ดุส ิต daily lives g. to have an influence on or effect a change in something 8. marketplace h. more than is needed or wanted 9. service i. the exchange or delivery of goods for money 10. goods j. a set of trading conditions or the business environment 11. product k. the effect or impression of one thing on another 12.superfluous l. someone who buys goods or uses services for their own "ม หา ว 7. affect consumption m. the act of encouraging something to happen or develop or activities to advertise something n. It usually includes four P’s which are product, price, place, and promotion. 8 Practice 2: Key Vocabulary Match these words (1-10) with their definitions (a-j). Put letter a, b, c, … in the a. a person or company that makes goods from raw นั้น □ 1. Customer " boxes in front of the numbers. ษา เท่า materials. b. the percentage of the total sales. □ 3. Goods c. the characteristics of the products □ 4. Consumer d. the open spaces for selling goods □ 5. Market entry e. a person or company who produces and sells goods เพื่อ กา รศ ึก □ 2. Manufacturer ิทย าล ัยส วน ดุส ิต to the customers. f. a buyer, or a client □ 7. Product feature g. all the people who buy goods from the stores. □ 8. Producer h. product, merchandise, or wares. □ 9. Market i. a person or company who provides work for others. □ 10.Market share j. its entry into the market that never done before. "ม หา ว □ 6. Services 9 Language Notes: Modal Verbs should, have to, must นั้น It has to combine market research with new product development. " They should put on the product or service in the market this time of the year. ษา เท่า Marketer must plan on distribution, advertising, promotion, and product improvement. 1. should กา รศ ึก We use should when we want to say that it’s a good/bad idea to do something. เพื่อ Subject + should/shouldn’t + infinitive Example: I think we should sell this sofa at a lower price. ิทย าล ัยส วน ดุส ิต Marketers should persuade target customers to try the product. In the long term, the marketers should modify the product to satisfy changes in consumer needs or market conditions. 2. have to We use have to when it’s necessary to do something and don’t have to when you Subject + have/has to + infinitive "ม หา ว don’t need to do something. Example: You have to wear a hard hat in the building. Marketers have to identify or anticipate a consumer needs. Marketers have to develop particular features, attractive packaging, and effective advertising that will influence consumers’ wants. 10 3. Must We use must instead of have/has to say ‘it’s necessary to do something’. It has the same meaning as have to, but is used less often. นั้น " Subject + must + infinitive Marketers must design a product or service that meets that need ษา เท่า Example: กา รศ ึก better than any competing products or services. Defining Marketing products selling marketing customers marketing concept target market producers marketing research ิทย าล ัยส วน ดุส ิต marketers satisfy เพื่อ Complete the passage below with the words given. It is significant to understand the meaning of (1) __________. Marketing is not only about (2)___________ products to customers; it is also about creating (3)__________ and directing them to customers. How can (4)____________ know what to create is a good question. Marketers have to understand (5)_____________ and know what they need and what they want. Therefore, (6)_______________ or หา ว product planners have to do (7)____________ in order to know customers’ need, "ม want, and demand. The most important thing of the product is to (8) ___________ customers’ need and convince them to buy. In addition, non-profit organizations can also use this kind of (9) _____________ in order to direct the flow of message from their organizations to their (10)________________ such as persuading people not to smoke, or to give money to people in poor countries (Kotler. & Armstrong. 1990) 11 Practice 3: Defining Marketing A. Read the passage “Defining Marketing” again. Then decide if the sentences are TRUE or FALSE. " 1. Marketing is about selling products to customers only. นั้น 2. Producers know exactly what to make or create. ษา เท่า 3. Marketers understand customers’ need, want and demand from doing marketing research. กา รศ ึก 4. marketers or product planners have to conduct the market research before producing the products เพื่อ 5. It is not worth doing market research because it costs a lot of money and spends big budget of the company. ิทย าล ัยส วน ดุส ิต 6. Marketing is the activities, which direct the movement or the flow of goods or services from manufacturer or producer to consumer or user. 7. The most important thing of the product is to satisfy customers’ need and convince them to buy. 8. Non-profit organizations cannot use marketing concept. หา ว B. Match the words (1 – 3) with the correct definitions (a – e). "ม 1. Marketing a. things that you cannot touch or taste 2. Product b. the way you define your product, promote your product, distribute your product, and to maintain a relationship with your customers 3. Services c. a physical object d. they are actions, which are performed for a charge e. item that you buy 12 Language Notes: Guessing meaning from context Using context clues to understand the meaning of unknown words Synonym context clue " When you are reading the text, you might have problems finding the นั้น meanings of unknown words. The writer could include a synonym or similar word in ษา เท่า that text in order to help the readers to understand the meaning of unknown words. A synonym is a word that has the same meaning or nearly the same as another กา รศ ึก word. Example: “They create something and trade or exchange it with something else.” เพื่อ From the example above, the synonym “exchange” helps the reader understand the meaning of “trade” by guessing from the synonym context clue - ิทย าล ัยส วน ดุส ิต ‘or.’ Example: “The basic motive (a reason to do something) for trading is that one person has something you want more than what you already have.” From the example above, the synonym “a reason to do something” in a bracket explains the meaning of the word “motive”. Therefore, the reader figures out the meaning by looking at the word in the bracket as a context clue. "ม หา ว (Building Vocabulary: Using Context Clues to Learn Word Meaning. 2008) How can marketing occur? Read the passage below and answer the questions after reading passage using synonym context clues to help you. 13 Understanding the basic idea of marketing Marketing is occurred when producers create something and trade or exchange it with something else that they want or need with the other party – " other group of people. The important thing is the other party has to agree, or have นั้น the same opinion, to exchange that thing also. This is the basic idea of marketing. ษา เท่า Actually, the basic motive (a reason to do something) for trading is that one person has something you want more than what you already have. When both กา รศ ึก parties are willing, or ready to do something, to exchange what they have for what they want, a mutually satisfactory transaction – an instance of buying and selling เพื่อ something – can be happened. In the past, before the invention, a creative ability, of exchange currency (a ิทย าล ัยส วน ดุส ิต medium of exchange), people would trade the goods and services to each other or barter in order to obtain what they needed. Each party was willing to exchange their goods with something else because of the shortage (lack of something) of goods. Generally speaking, trade is the exchange of surplus (more than needed) items for items shortages. For example, people in Village A could grow rice very well. They have หา ว plenty of rice but they could not raise any chickens in their village. At the same "ม time, people in the Village B could raise chickens but their land was not suitable for growing rice. Therefore, people from Vilage A trade their rice with the chickens from people in Village B. In other words, both villages trade their goods to each other and satisfy with that. (Mazur. 2009) 14 Practice 4: Comprehension Check 1. From the passage, what does ‘marketing’ mean? ______________________________________________________________________ " 2. What is the difference between ‘create’ and ‘exchange’? นั้น ______________________________________________________________________ ษา เท่า 3. According to the passage, find out the meaning of the words below using synonym context clues technique. กา รศ ึก 3.1 Exchange currency _________________________________________________ 3.2 Barter _____________________________________________________________ เพื่อ 3.3 Trade _____________________________________________________________ 3.4 Shortage ___________________________________________________________ ิทย าล ัยส วน ดุส ิต 3.5 Surplus ____________________________________________________________ 4. According to the passage, find out the antonyms of the word “shortage” ______________________________________________________________________ Marketing Exchange Relationship Read the passage about ‘Marketing Exchange Relationship’ and do the following หา ว exercises (Practice 5 and 6). "ม It is important to understand the condition of marketing exchange relationship. Before exchange relationship takes place, there are four conditions involving participation, possession, willingness and communication. In addition, students should understand the meaning of “something of value.” This means anything that has value for the person who possesses it. They can be products, 15 financial resources (such as money, credit, salary, etc.), or services (such as hotel services, tourism services, etc.) The first condition is participation. This consists of two or more parties and " both party needs to participate in this exchange. ษา เท่า possess “something of value” which is desired by the other party. นั้น The second condition is possession. Each party must has something or The third condition is willingness. Both parties must be willing to give up กา รศ ึก “something of value” in order to receive “something of value” in return. They are free to accept or reject that ‘something of value’. The fourth condition is communication. Each party must be able to party and also capable of delivery. เพื่อ communicate to each other so they will know what they have available for the other ิทย าล ัยส วน ดุส ิต In brief, the objective of this marketing exchange relationship is to receive something that is needed, wanted or desired more than what is given up. Normally, we consider ‘money’ as ‘a medium of change’. Consequently, we ‘give up’ money to get the ‘goods or services’ we want. To understand this exchange relationship thoroughly, students can see the "ม หา ว illustration in figure 1.2. Something of Value Sellers Buyers Something of Value Figure 1.2: Marketing Exchange Relationship 16 The illustration in Figure 1.2 above shows the process of marketing exchange. As the two arrows indicated, the two parties communicate to each other to make their ‘something of value’ available. The ‘something of value’ นั้น such as money or credit. When an exchange occurs, products are traded for " held by the two parties are most normally products and/or financial resources ษา เท่า either products or financial resources. กา รศ ึก (Adapted from Lamb, Hair, & McDaniel. 2009) Practice 5: Comprehension Check Relationship’ เพื่อ Write down your answers according to the reading passage ‘Marketing Exchange ิทย าล ัยส วน ดุส ิต 1. From the passage, what is the objective of exchange relationship? ______________________________________________________________________ ______________________________________________________________________ 2. Write down the definition of “something of value” in your own word. ______________________________________________________________________ ______________________________________________________________________ หา ว 3. Write down the examples of “something of value”? "ม ______________________________________________________________________ ______________________________________________________________________ 4. In case of exchange relationship to occur, what conditions are there? ______________________________________________________________________ ______________________________________________________________________ 17 Practice 6: Marketing Exchange Relationship Match the situation below (A, B, C, …) with the correct conditions. Participation Willingness Communication ___________________ นั้น " A. Customers stay in the hotel. Possession C. The hotel has facilities, accommodation, etc. D. Customers want to stay in the hotel. ___________________ กา รศ ึก to serve the customers. ษา เท่า B. Customers has credit card for paying hotel charges ___________________ ____________________ เพื่อ E. The hotel promotes their services through _____________________ ิทย าล ัยส วน ดุส ิต newspaper advertisement about their promotion. The Importance of Marketing Read the following text about the importance of marketing and match the topics given with the paragraphs (one topic does not belong to any paragraph): The importance of marketing is about the summary of market we studied in หา ว this unit. Students need to know several aspects of marketing. There are various "ม terms of marketing which are significant such as selling and marketing concepts, market opportunities, market research, company-to-company marketing, and marketing mix. 18 TOPICS company-to-company marketing identifying market the importance of ษา เท่า the selling and marketing " the marketing mix นั้น opportunities market research กา รศ ึก concepts Paragraph 1 _____________________ เพื่อ Most marketers are usually looking for market opportunities or all possibilities of filling the gap of unsatisfied needs of consumers and ิทย าล ัยส วน ดุส ิต gaining profit. This market opportunities can be the areas of new wants of consumers that the company creates in order to apply its distinctive competencies (the particular thing it does well) so they can have competitive advantage. Once they find the appropriate market opportunities, they will identify a target market and launch the หา ว product or service into that market. (MacKenzie. 2002: 64-68) "ม Paragraph 2 _____________________ Most companies conduct market research (GB) or marketing research (US) before launching a product or service because they do not want to fail in producing new product into the market. They start from collecting and analyzing information about the size of a potential 19 market, about consumers’ reactions to particular product or service of the company, and so on. The people who talk to the customers and are the important source of information is sales representatives. " (MacKenzie. 2002: 64-68) นั้น Paragraph 3 _____________________ ษา เท่า Once the product concept, has been established, the company has to think about the marketing mix, that are the various elements of a กา รศ ึก marketing that need to be integrated in order to influence the target market. The best-known classification of these elements is the ‘4 Ps’: product, place, promotion and price. The first ‘P’ is product; it includes เพื่อ quality, features (standard and optional), style, brand name, size, packaging, services and guarantee. The second one is place which is ิทย าล ัยส วน ดุส ิต about distribution channels, locations of points of sale, transport, inventory size, etc. The third ‘P’ is price; it includes the basic list price, discounts, the length of the payment period, possible credit terms, and so on. The last ‘P’ is promotion. It is about advertising, publicity, sales promotion, and personal selling. It is the job of a product manager or a หา ว brand manager to look for ways to increase sales by changing the "ม marketing mix. (MacKenzie. 2002: 64-68) Paragraph 4 _____________________ It must be remembered that there are two main types of market which are consumer market and producer market. Consumer market is the market that people buy products for direct consumption. On the other 20 hand, there is an enormous producer or industrial or business market, consisting of all the individuals and organizations that acquire goods and services that are used in the production of other goods, or in the นั้น manufactured parts and components that go into consumer goods. " supply of services to others. It is the market of all the raw materials, ษา เท่า There is also capital equipment such as buildings and machines, supplies such as energy and pens and paper, and services ranging from กา รศ ึก cleaning to management consulting. (MacKenzie. 2002: 64-68) เพื่อ Practice 7: Vocabulary Match the words or expressions on the left with the definitions on the right. Words/Expressions Definitions ิทย าล ัยส วน ดุส ิต Answers 1. distribution channel A. the way or the route that the products are moved from the producer to the consumer. 2. to launch a product B. an idea for a new product, such as size, flavor, design, etc. which is tested before the actual product is developed. "ม หา ว 3.market opportunities 4. market research C. characteristics of a product such as shape, appearance, color, quality, price, reliability, etc. D. dividing a market into various groups of buyers based on different buying behaviors. 5. market segmentation E. places for selling goods to the public such as shops, stores, kiosks, market stalls, etc. 21 Answers Words/Expressions 6. packaging Definitions F. chances or possibilities of filling unsatisfied needs of customers so a company can get " profits from producing goods or services. G. people who sell goods to customers, and get นั้น 7. points of sale 8. product concept ษา เท่า the commission in return H. finding out the information about one กา รศ ึก particular marketing situation by collecting, analyzing and reporting data. I. to issue a new product into the market. เพื่อ 9. product features 10. sales J. things that wrap the product or the containers of any products. ิทย าล ัยส วน ดุส ิต representatives (MacKenzie. 2002: 64-68) Language Notes: Word study (Verb and Noun) Complete the list below by inserting the missing forms: หา ว Verb Verb Noun a (1)___________ to act an (2)___________ to (3)__________ sales to (4)__________ a producer to promote (5)_____________ to consume a (6)____________ to (7)___________ participation to (8)__________ communication to (9)__________ creation to deliver a (10)____________ "ม to decide Noun 22 Verb Noun Verb Noun to exchange an (11)___________ to (12)__________ willingness to (13)__________ performance a (14) ___________ " to possess ษา เท่า NOUN เพื่อ กา รศ ึก VERB นั้น Now, it’s your turn. Write down your own verbs and nouns found in the text: ิทย าล ัยส วน ดุส ิต Practice 8: Vocabulary Choose the best word or phrase to fill each gap. Index Co. makes wooden furniture to use in the garden such as tables and chairs. Sales this year are much higher because the company has spent a lot on (1) __________. (selling/distributing/marketing) First, the product planners did a หา ว survey to find out about customer (2)__________. (wants/needs/uses) Then, they redesigned all their (3)__________ (products/benefits/services) to include the "ม special (4) __________ (goods/profits/features) that people want. Their (5)__________ (presenting/promotion/persuasion) included a competition in all the major gardening magazines where the prize was a set of their furniture. Most importantly, they’ve made sure all their (6)___________ (prices/costs/charges) are very competitive because their customers want value for money. 23 Summary This unit presented various definitions of marketing including the special terminology in basic marketing. To comprehend marketing exchange relationship, " students need to recognize how can marketing occurs, what the objective of นั้น marketing. This unit also equips students with reading skill using context clues and ษา เท่า writing skill in writing definitions. Next unit will familiarize the students more about กา รศ ึก consumer behavior. 1. What does ‘marketing’ mean? เพื่อ Review Questions 2. What is the difference between the words ‘customer’ and ‘consumer’? ิทย าล ัยส วน ดุส ิต 3. What is the antonym of ‘deficit’? 4. What is the objective of ‘marketing exchange relationship’? 5. What does ‘something of value’ mean? 6. What are the conditions of ‘marketing exchange relationship’? 7. According to the reading passage ‘The Importance of Marketing’, why do หา ว marketers always look for market opportunities? 8. According to the reading passage ‘The Importance of Marketing’, what is the "ม difference between ‘consumer market’ and ‘producer market’? 9. What is the verb form of ‘information’? 10. What is the noun form of ‘distribute’? 24 References 2013 January 25. Available from: http://www.oknation.net/blog/ นั้น print.php?id=203449. " “Building Vocabulary: Using Context Clues to Learn Word Meaning” (2008). Cited ษา เท่า Burnett, S. (1994). Cited in Kotler, P. & Armstrong, G. (1994). Principles of marketing. 6th Edition. London: Prentice-Hall International กา รศ ึก “Cambridge Dictionary Online” (2013). Cited 2013 April 23. Available from: http://dictionary.cambridge.org/dictionary/business-english/profit_1?q=profit เพื่อ Drucker, P. F. (1994). Managing for results. NY: Harper and Row. Kotler, P. & Armstrong, G. (1990). Marketing: an introduction, Second Edition, ิทย าล ัยส วน ดุส ิต Englewood Cliffs: Prentice Hall. Kotler, P. (2002). Marketing management (Eleventh Edition). London: Prentice Hall. Lamb, C. W., Hair, J. F., McDaniel, C. (2009). Essentials of marketing. USA: Cengage Learning. Mackenzie, I. (2002). English for business studies. Cambridge: Cambridge University. Mazur, P. (2009). cited in Jain, A. (2009). Principles of marketing. New Delhi: J.N. หา ว Printers. "ม Packard, D. (n.d.). “BrainyQuote.com”. Cited 2012 November 21. Available from: http://www.brainyquote.com/quotes/quotes/d/davidpacka191099.html Unit 2 นั้น " Consumer Behavior ษา เท่า In this unit, students will be introduced to basic terminology about consumer behavior including the ideas behind it. The focus is on the management of the กา รศ ึก organization concerning the customers’ needs and wants relating consumer behavior. Key Vocabulary in Context เพื่อ Exercises are given form students practicing. In order to clearly understand basic consumer behavior, students need to ิทย าล ัยส วน ดุส ิต study necessary basic consumer behavior terminology. Below are some important consumer behavior terms for this unit. Study these special terminologies and do the following exercise. Word หา ว 1. Customer 2. Consumer Meaning a person who buys goods or a service a person who buys goods or services to use on their own "ม money received from the trade or business after deducting the costs of producing and selling goods and services a particular set of ideas about knowledge, truth, the nature and 4. Philosophy meaning of life, etc. 5. Needs the state of having to have something that you do not have 3. Profit 6. Wants a lack of something, needs 26 10. Quality 11. Performance 12. Innovative 13. Feature 14. Improvement " 9. Distribution นั้น 8. Production ษา เท่า 7. Competition Meaning when someone is trying to win something or be more successful than someone else the process of making or growing goods to be sold the process of giving things out to several people, or spreading or supplying something how good or bad something is how well a person, machine, etc. does a piece of work or an activity using new methods or ideas a typical quality or an important part of something กา รศ ึก Word when something gets better or when you make it better 22. Consumption the amount of something that someone uses, eats, or drinks 23. Consumer market markets dominated by products and services designed for the 24. Stimuli something that causes something else to happen ิทย าล ัยส วน ดุส ิต เพื่อ 21. Final consumer group of people who might want to buy something that is sold something that is made to be sold by an industrial process things for sale or the things that you own the total amount of products that a person or organization can produce, or the ability of the equipment to produce something or a person to do a particular thing when someone buys or sells something, or when money is exchanged process by which customers select, purchase, and use goods and services, in satisfaction of their needs and wants a person who buys goods or services to use on their own at the end of the buying process 15. Market 16. Products 17. Goods 18. Capacity 19. Transactions "ม หา ว 20. Customer buying behavior general consumer 27 Word Meaning 25. Household a group of people, often a family, who live together 26. Product feature a typical quality or an important part of product " to come to an opinion about something, or have a belief about something นั้น 27. Perceive to act in a particular way as a direct result of something else 29. Economic relating to trade, industry and money 30. Dealer a person who trades in something กา รศ ึก ษา เท่า 28. React เพื่อ Fill in the blanks with the correct terms from the box. reacted transaction capacity perceived distribution production customer stimulus market improvement features performance need product features profit philosophy consumer markets ิทย าล ัยส วน ดุส ิต economic final consumers goods households consumption competition . หา ว 1. Mr. Pongsit is our regular consumers products innovative quality wants 2. The new telephone rates will affect all including businesses. "ม 3. She makes a big____________ from selling waste material to textile companies. 4. René Descartes is regarded as the founder of modern 5. There's a growing for cheap housing in the larger cities. 6. As a marketer, I have to know customers’ in order to produce the appropriate cell phone. 7. There's a lot of . between computer companies. 28 8. Coke is used in the of steel. 9. Has the Channel Tunnel improved the (= supplying for sale) of goods between the British Isles and mainland Europe? . " 10. Their electrical products are of very high 12. She was an imaginative and manager. 13. Our latest model of phone has several new . in the economy 15. Are you sure there's a for the product? 16. They do a range of skin-care กา รศ ึก 14. There is a slight . 18. The stadium has a seating of 50 000. at the foreign exchange counter seems to take forever. ิทย าล ัยส วน ดุส ิต 20. The until the end of the week เพื่อ 17. There is a 25% discount on all electrical 19. Each นั้น (= fast, powerful and easy to control) cars are the most expensive. ษา เท่า 11. High- of detergent market are housewives. 21. We need to cut down on our fuel 22. Office stationary is one of the 23. Foreign investment has been a . to the industry. had a TV. หา ว 24. By the 1960s, most by having fewer cars on the road. "ม 25. Our latest model of phone has several new 26. Women's magazines are often 27. The judge 28. The government's . to be superficial. angrily to the suggestion that it hadn't been a fair trial. policies have led us into the worst recession for years. (Cambridge Dictionary Online. 2013) 29 Discussion: Typical Consumer Get in pairs and read about typical customer below. Then, write down the meanings of different phrases in the space provided. เพื่อ กา รศ ึก Our typical customer is health concern and enjoys keeping fit, especially in riding bicycles. They do not play sport professionally. He or she is more interested in sport as a hobby. Our customer pays attention to the bikes with good value for money more than with having cuttingedge designs. ษา เท่า นั้น " Jake works for a small sporting goods store in Bangkok. Read what he says about his typical consumer. ิทย าล ัยส วน ดุส ิต Think of yourself as a typical customer. Write down Figure 2.1: Typical Consumer the meaning of phrases in Thai in the box below. typical customer _______________________________________________ health concern_________________________________________________ keeping fit ____________________________________________________ หา ว interested in____________________________________________________ "ม pay attention _________________________________________________ good value____________________________________________________ cutting-edge fashions____________________________________________ (Gore. 2007: p.11) 30 Practice 1: Customer นั้น ษา เท่า new trends clients competitors listening find out loyal customers search terms sales records " Use the words in the box to complete the following list of ways to learn about your customers. 1. He should email ___________________ directly with one or two questions about our กา รศ ึก products. examine the ___________________. เพื่อ 2. To look for items that people type into our website’s search function, we need to aren’t? ิทย าล ัยส วน ดุส ิต 3. What areas in marketing approach are our _________________ targeting that we 4. Schedule a social event, such as a ‘Thanking Customers’ party, for existing or potential ________________, and use this as an opportunity to __________________ more about what they want. 5. _________________ to people in a shop or at a trade fair is a good way to know what หา ว they talk about and what questions they ask. 6. When you study your _______________, you will see what facts you already have "ม about the people who buy from you. 7. In order to stay ahead of the competition, you should read trade journals to learn about ___________________. (Gore. 2007: p.11) 31 Model of Consumer Behavior Before reading: ษา เท่า นั้น " 1. What does ‘Consumer Behavior’ mean? _________________________________________________________________________ 2. What are the causes of different consumer behaviors? _________________________________________________________________________ Reading: Consumers are people who buy product to use on their own individual กา รศ ึก consumption. They are different in age, income, education level, and tastes. Some consumers can be in early thirties, work in the office, and get high salary. Some might be เพื่อ in group of blue collar workers and get standard wage. These two groups of consumer are different; they have different income so their tastes are probable not the same. ิทย าล ัยส วน ดุส ิต Their buying behaviors for goods and services for their own personal consumption are different. Most consumers have to make many buying decisions daily. Still, there are many factors around consumers which have an impact toward their choices of buying because there are various products, services, and companies in the consumer market. หา ว Consequently, the companies truly need to acquire (= gain or get) these consumer buying decisions in details. The best way to do for the company is to conduct research "ม on consumer buying decisions which are comprised of what consumer buy, where consumers usually buy, how and how much consumers buy, when consumers buy, and why consumers buy. Marketers can easily find out what the customers buy, where they buy, and how much they buy. However, the difficult task is to investigate why they buy the product. The answers of this consumer buying behavior are often locked (= protected) inside the consumer’s head. 32 In addition, the marketers have to evaluate how the consumers respond (= react or reply) to various marketing efforts (= hard work) that the company use, such as product features, prices, advertising appeals (= demand or request), etc. The companies " that really understand these consumers’ responses would have a great advantage (= นั้น benefit) over its competitors. These can be shown in the stimulus-response model of ษา เท่า buyer behavior. The marketing and other stimuli enter the consumer’s “black box” and produce certain responses. Marketers must figure out what is in the buyer’s black box. กา รศ ึก (Kotler, & Armstrong. 2001) After reading: Let’s check your reading comprehension… a. what consumers buy เพื่อ Which one is difficult to find out about consumer buying decisions? ิทย าล ัยส วน ดุส ิต b. where consumers buy c. how and how much consumers buy d. when consumer buy e. why consumers buy หา ว Language Notes: Adverbs of Manner "ม Adverbs of manner describe actions in more detail. They normally come at the end of a sentence. Example: she drives carefully. He drove fast. They work well. 33 The form of most adverbs is: adjectives + ly: Easy > easily Serious > seriously The companies truly need to acquire these consumer buying นั้น Example: " Quick > quickly ษา เท่า decisions Consumers make buying decisions daily. กา รศ ึก (Ibbotson, & Stephens. 2006: 111) Frequency Adverb of frequency Always Example I always study after class. ิทย าล ัยส วน ดุส ิต 100% เพื่อ Language Notes: Adverb of Frequency Usually I usually take a bus to work. 80% Normally/Generally I normally get good grades. 70% Often/Frequently I often read before going to bed at night. 50% Sometimes I sometimes sing in the shower. 30% Occasionally I occasionally go to bed late. 10% Seldom I seldom put salt on my food. 5% Hardly ever/Rarely I hardly ever get angry. 0% Never Vegetarians never eat meat. "ม หา ว 90% The form of adverb of frequency is subject + adverb + main verb OR subject + verb to be + adverb 34 Example: The company really understands the consumers’ responses. Consumers usually buy. The answers are often locked inside the consumer’s head. นั้น " (Adverb of frequency chart. 2012) ษา เท่า Practice 2: Consumer Behavior correct position. 1. Most consumers make buying decisions (always) กา รศ ึก Rewrite the complete sentence using the adverb in brackets in its เพื่อ ______________________________________________________________. 2. Marketers can study actual consumer. (easily) ิทย าล ัยส วน ดุส ิต ______________________________________________________________. 3. Learning about the whys of consumer buying behavior is easy. (hardly ever) ______________________________________________________________. Consumer Behavior Model Read the paragraph below about consumer behavior model and fill in the "ม หา ว blanks in the box. Marketing Buyer responses Other Buyer’s black box stimuli _________ Economic Buyer _________ _________ Characteristics Place _________ __________ Cultural _______________ Buyer _______________ Decision _______________ Process _______________ _______________ __________ 35 From the chart, it shows consumer behavior model, the first box on the left contains marketing stimuli – something that causes activities. It consists of the four Ps: product, price, place, and promotion. Other stimuli are about buyer’s environments " which are economic, technological, political, and cultural. นั้น All these stimuli go into the buyer’s black box in the consumer head. This can ษา เท่า be divided into two parts; the first one is buyer’s characteristics which are the personality and the perception of consumers that react to the stimuli. The second part กา รศ ึก is buyer’s decision process; it affects the buyer’s behavior directly. For example, the customers would like to buy shampoo. She perceive marketing stimuli which is low price, and she usually likes to buy discount product. She probably reacts to this เพื่อ stimulus by making decision to buy this shampoo. The last box, on the right, shows the process of changing the two elements ิทย าล ัยส วน ดุส ิต inside buyer’s black box into observable buyer responses which are product choice, brand choice, dealer choice, purchase timing, and purchase amount. (Kotler, & Armstrong. 2001) Practice 3: Consumer Behavior Model หา ว From the examples below, please explain the consumer behavior model briefly. "ม Example 1: You’d like to buy a camera at a mall so you ask the salesman how to operate this, what the capacity is, what the megapixel is, etc. Example 2: Kanit makes comparison between two brands: Coach and Marvel. ……………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………………………… 36 Characteristics affecting consumer behavior When the consumers would like to buy something, their purchasing behaviors can be influenced by cultural, social, personal, and psychological characteristics. " Most marketers must consider these four factors carefully because they cannot ษา เท่า นั้น control them easily. All those four factors are described in details as follows. 1. Cultural factors กา รศ ึก Cultural factors is significant because they are the broadest and deepest influence on consumer behavior. The marketer needs to understand details of each เพื่อ factor which are the buyer’s culture, subculture, and social class. a. Culture is a way of thinking or behaving that exists in one particular society ิทย าล ัยส วน ดุส ิต or group. Each country has different culture, therefore, the marketers need to understand this factor and adjust to these differs. Otherwise, ineffective marketing or embarrassing mistakes can be occurred. b. Subcultures are groups of people who shared value systems based on common life experiences and situations. The examples are nationalities, religions, racial groups, and geographical areas. หา ว c. Social classes are society’s shared values, interests, and behaviors which "ม are similar. The examples are occupation, income, education, and so on. (Kotler, & Armstrong. 2001) 2. Social factors Social factors are closely related to consumers and they influence consumer behavior. They are the consumer’s small groups, family, and social roles and status. 37 a. Group is a number of people that are considered as a unit. The products that are bought and used by someone in a group are affected by group influences because they notice each other. " b. Family is the most important consumer buying organization in society. นั้น Most marketers are interested in the roles and influence of the husband, wife, and ษา เท่า children on the purchase of different products and services. c. Roles and Status are the person’s part and position in each group. A role กา รศ ึก is the part that someone has in a family or society and a status is the position or rank of someone when compared to others. People often choose products that show เพื่อ their status in society. (Kotler, & Armstrong. 2001) ิทย าล ัยส วน ดุส ิต Practice 4: Cultural and Social Factors Matching the words with the correct definitions role group culture family status subcultures social class 1. ______________ includes occupation, income, education, wealth, and other variables. หา ว 2. ______________ include nationalities, religions, racial groups, and geographic "ม regions. 3. _____________ is the most basic cause of a person’s wants and behavior. 4. ___________ is a number of people or things that are put together as a unit. 5. ____________ is the roles and influence of family members on the purchase of different products and services. 38 6. A ________ consists of the activities people are expected to perform according to the persons around them. 7. Each role carries a _________ reflecting the general esteem given to it by นั้น " society. ษา เท่า 3. Personal Factors Personal factors are about personal characteristics which influence buyer’s กา รศ ึก decisions on purchasing products. They are the buyer’s age and life-cycle stage, occupation, economic situation, lifestyle, and personality and self-concept. a. Age and life-cycle stage People change the goods and services they buy เพื่อ over their lifetimes. Buying behaviors and tastes in food, clothes, furniture, and ิทย าล ัยส วน ดุส ิต recreation are often age and life-cycle related. b. Occupation affects the goods and services bought. Blue-collar workers tend to buy more rugged work clothes, whereas white-collar workers buy more business suits. c. Economic Situation will affect product choice. Buying behaviors are affected by personal income, savings, and interest rates. หา ว d. Lifestyle is a person’s pattern of living. Lifestyle plays a big role in buying "ม behavior based on a person’s whole pattern of acting and interacting in the world. e. Personality is emotional qualities and ways of behaving that makes a person different from other people. Each person’s distinct personality influences his or her buying behavior. (Kotler, & Armstrong. 2001) 39 4. Psychological Factors A person’s buying choices are further influenced by four major psychological factors: motivation, perception, learning, and beliefs and attitudes. " a. Motivation is a force or influence that causes someone to do something. It ษา เท่า would like to buy things in order to satisfy their needs. นั้น starts from a person need then it is aroused to seek satisfaction. Therefore, buyers b. Perception is the process by which people select, organize, and interpret กา รศ ึก information to form a meaningful picture of the world. c. Learning describes changes in an individual’s behavior arising from the marketer builds up. เพื่อ experience. Learning occurs through the stimuli, responses, and reinforcement that ิทย าล ัยส วน ดุส ิต d. Beliefs and Attitudes will influence customers buying behavior later. A belief is a descriptive thought that a customer has about product and brand images. It can affect buying behavior. Attitude describes a customers’ feelings, and tendencies toward a product. Attitude can make customer like or dislike products, and move toward or away from products also. (Kotler, & Armstrong. 2001) หา ว Practice 5: Personal Factors and Psychological Factors "ม Matching the words with the correct definitions personality perception attitude motive age belief learning self-image lifestyle 40 1. Tastes in food, clothes, furniture, and recreation are often _________ related. 2. _______________ is a person’s pattern of living as expressed in his or her psychographics. นั้น to relatively consistent and lasting responses to one’s own environment. " 3. _______________ refers to the unique psychological characteristics that lead ษา เท่า 4. _______________ is the people’s possessions contribute to and reflect their identities. กา รศ ึก 5. A __________ is a need that is sufficiently pressing to direct the person to seek satisfaction. 6. ________________ is the process by which people select, organize, and เพื่อ interpret information to form a meaningful picture of the world. 7. ______________ describes changes in an individual’s behavior arising from ิทย าล ัยส วน ดุส ิต experience. 8. A _____________ is a descriptive thought that a person has about something. 9. ______________ describes a person’s relatively consistent evaluations, "ม หา ว feelings, and tendencies toward an object or idea. 41 Self-study Assignment กา รศ ึก ษา เท่า นั้น " A. Write down all factors in each box according to the reading about characteristics affecting consumer behavior. CULTURAL PERSONAL เพื่อ SOCIAL ิทย าล ัยส วน ดุส ิต BUYER "ม หา ว PSYCHOLOGICAL B. Write down a summary report of characteristics affecting consumer behavior toward the product ‘smartphone’. 42 Summary This unit presented the meanings of marketing terminology in the area of different characteristics affecting consumer behavior. This will relate to the ษา เท่า นั้น concept of marketing and marketing mix in the next unit. Review Questions 2. What does ‘production concept’ mean? เพื่อ 3. Please explain the steps of marketing process. กา รศ ึก 1. What is the difference between ‘selling concept’ and ‘product concept’? 4. How many characteristics affecting consumer behavior mentioned in this unit? ิทย าล ัยส วน ดุส ิต 5. What are the cultural factors affecting consumer purchases? 6. What are the social factors affecting consumer purchases? 7. What are the personal factors affecting consumer purchases? หา ว 8. What are the psychological factors affecting consumer purchases? "ม " consumer behavior. It covered the model of consumer behavior and the 43 References http://www.woodwardenglish.com/adverbs-of-frequency-chart/. " “Adverb of frequency chart” (2012). Cited 2012 May 28. Available from: นั้น “Cambridge Dictionary Online” (2013). Cited 2013 April 23 Available from ษา เท่า http://dictionary.cambridge.org/dictionary/business-english/profit_1?q=profit Gore, S. (2007). Oxford express series: English for marketing and advertising. กา รศ ึก Oxford: Oxford University. Kingdom: Cambridge เพื่อ Ibbotson, M. & Stephens, B. (2006). Business start-up 2: student’s book. United Kotler, P. & Armstrong, G. A. (2001). Principles of marketing: activebook version 1.0. "ม หา ว ิทย าล ัยส วน ดุส ิต NJ: Prentice Hall. "ม ิทย าล ัยส วน ดุส ิต หา ว เพื่อ นั้น ษา เท่า กา รศ ึก " 44 Unit 3 นั้น " Marketing Mix ษา เท่า This unit will present a description of marketing mix which is one of the basic knowledge of marketing. The terminology 4 P’s is outlined. This comprises of In addition, student will be able to กา รศ ึก product, price, place, and promotion. comprehend the reading passages about marketing mix, explain the concept, and give examples of each P’s in marketing mix at the end of this unit. Short case studies เพื่อ of each P’s are also provided for students. ิทย าล ัยส วน ดุส ิต Key Vocabulary in Context In order to clearly understanding basic marketing mix, students need to be able to identify each basic marketing mix terminology. Study the definitions below and do the exercise afterward. "ม หา ว Word Meaning 1. Marketing mix planned mix of the controllable elements of a product's marketing plan commonly termed as 4P's: product, price, place, and promotion to transfer ownership of a property in exchange for money or 2. Sell value. 3. Sale an act of exchanging something for money 4. Sales the number of products sold 5. Classification the act of dividing things into groups according to their type 46 Word 6. Distribution 9. Demand Meaning the process of giving things out to several people, or spreading or supplying something a person whose duties include the identification of the goods and services desired by a set of consumers, as well as the marketing of those goods and services on behalf of a company to make goods available to buyers in a planned way which encourages people to buy more of them, for example by advertising a need for something to be sold or supplied 10. Quality how good or bad something is 11. Design 14. Packaging to make or draw plans for something, for example clothes or buildings a distinctive characteristic of a good or service that sets it apart from similar items the name given to a particular product by the company that makes it, such as Apple, Coca Cola, IBM, Mercedes, Shell, Sony, Toyota the materials in which objects are wrapped before being sold 15. Sizes one of the standard measures according to which goods are ษา เท่า กา รศ ึก ิทย าล ัยส วน ดุส ิต 12. Features เพื่อ 8. Market (v) นั้น " 7. Marketer หา ว 13. Brand name "ม 16. Services 17. Returns made or sold the act of dealing with a customer in a shop, restaurant or hotel by taking their order, showing or selling them goods, etc. goods that have been taken back to the shop where they were bought by customers because they are damaged or unsuitable 18. Advertising the business of trying to persuade people to buy products or services 47 Meaning face to face selling in which a seller attempts to persuade a selling buyer to make a purchase 20. Sales sales-stimulation achieved through contests, demonstrations, promotion discounts, exhibitions or trade shows, games, giveaways, point-of- นั้น " Word 19. Personal ษา เท่า sale displays, etc. the effort to create and maintain goodwill of an organization’s relations various publics through publicity and other non-paid forms of กา รศ ึก 21. Public communication 22. Publicity type of promotion that relies on public relations effect of a news 23. Channels เพื่อ story carried usually free by mass media employed to distribute goods or services from producers to ิทย าล ัยส วน ดุส ิต consumers 24. Assortments a group of different types of something 25. Location slightly formal a place or position 26. Inventory the amount of goods a shop has, or the value of materials and goods held by a firm "ม หา ว 27. Logistics 28. List price a business planning framework for the management of material, service, information and capital flows the price at which the maker of something suggests it should be sold (Synonym: Manufacturer suggested retail price (MSRP)) 29. Discounts a reduction in the usual price 30. Allowances amount deducted from an invoice as an incentive for a large order, or to compensate the buyer for an expense or mistake 48 Meaning a fixed discount that the buyers are offered on the price of a new allowances model or item in exchange for an older model or item 32. Payment an amount of money paid 33. Period a length of time 34. Warranty a written promise from a company to repair or replace a product (or guarantee) that develops a fault within a fixed period of time. (Synonym: ษา เท่า นั้น " Word 31. Trade-in กา รศ ึก guarantee) 35. Credit terms Standard or negotiated terms (offered by a seller to a buyer) that เพื่อ control the credit amount, maximum time, and so on. Fill in the blanks (1-30) with the correct terms in the box provided. publicity marketer warranty returns feature period sales distribution design advertising location payment sales promotion credit terms packaging personal selling inventory trade-in allowances ิทย าล ัยส วน ดุส ิต sale quality logistics services channels discount demand market (v.) sizes sells assortments brand name หา ว 1. Namcha ___________ jewellery at Siam Square. 2. _________this year exceeded the total for the two previous years. "ม 3. I haven't made a ________all morning. 4. Has the Channel Tunnel improved the ________________ (= supplying for sale) of goods between the British Isles and mainland Europe? 5. Chakri is working as a __________with UniLever. 6. Their products are very cleverly _____________ 49 7. There was little _____________for tickets. 8. I only buy good-___________ wine. 9. Who _____________ this beautiful furniture? " 10. A unique ___________of these rock shelters was that they were dry. ษา เท่า 12. All our ____________ is biodegradable. นั้น 11. The famous _____________of notebook is Acer. 13. Do these shoes come (= Are they made) in children's ___________? กา รศ ึก 14. The only trouble with this cafe is that the ____________is so slow. 15. The shop accepts my ___________because that product is broken. people to buy the products. เพื่อ 16. Fiona works in _______________ and her work is mainly about persuading 17. Jarinya works in _______________ business, she needs to go to different ิทย าล ัยส วน ดุส ิต customer’s houses to sell her products. 18. CP Fresh Mart makes a ______________by giving a discount on some products. 19. We have planned an exciting ____________campaign with our advertisers 20. We need to search for more ___________for our products. 21. An______________of vegetables is arranged into different kinds. หา ว 22. A map showing the _____________of the property will be sent to you. "ม 23. Our ____________of used cars is the best in town. 24. We need to look at the _______________ of the whole aid operation. 25. They usually give you a ____________if you buy multiple copies. 26. Tom sells his old car to a dealer for a _________________________. 27. Usually we ask for _____________on receipt of the goods. 28. The bank allows the ______________ for customers who want to get the loan. 50 29. The __________ covers the car mechanically for a year, with unlimited mileage. 30. Unemployment in the first half of 1993 was 2% lower than in the same ___________the year before. นั้น " (Cambridge Dictionary Online. 2013) ษา เท่า Discussion: Four P’s Most company needs to design a ‘marketing mix’ or ‘four P’s’ which made up กา รศ ึก of controllable factors – product, price, place, and promotion, in order to sell the products effectively. In order to get familiar with the concept of ‘four P’s’, the "ม หา ว ิทย าล ัยส วน ดุส ิต เพื่อ students should do the following warm-up activity. Figure 3.1: Four P’s 51 Students get in groups of four, discuss the elements of four P’s, and give example of each P. Then, write them down in the box provided. Price Place Promotion ิทย าล ัยส วน ดุส ิต เพื่อ กา รศ ึก ษา เท่า นั้น " Product Practice 1: Key vocabulary Fill in the blanks with the correct vocabulary. Advertising Packaging Discounts ReturnsSales Payment Assortments Sell 1. _______________ is a reduction in the usual price. หา ว 2. An amount of money paid is called ___________________. "ม 3. A group of different types of something is ____________________. 4. _____________ are goods that have been taken back to the shop 5. The materials in which objects are wrapped before being sold are called ________. 6.The number of products sold is _______________. 7. To transfer ownership of a property in exchange for money is called ___________. 8. _____________ is the business of trying to persuade people to buy products. 52 Language Notes: Countable Noun and Uncountable Noun When students read any marketing articles or write down the words to complete the exercises. It is necessary for the students to understand part of speech " especially ‘noun’ so the students can comprehend the reading passage better and ษา เท่า person, place or thing. Nouns can be countable or uncountable: นั้น write down short sentences correctly. First of all, let see details of a noun, it is a Countable Nouns กา รศ ึก Countable nouns are the names of separate objects, people, etc. which we one book two books some children ิทย าล ัยส วน ดุส ิต a child เพื่อ can count; they have singular and plural forms. For example: Uncountable Nouns Uncountable nouns are the names of things which we do not see as separate and which we cannot count; they do not have plural forms. It also refers to something a person cannot physically interact with, such as traffic, weather, happiness, "ม หา ว information, etc. coffee corn skill transaction knowledge traffic 53 Practice 2: Countable Noun and Uncountable Noun Put the vocabulary into the correct box based on the types of noun (Countable Noun, Uncountable Noun or Both) Improvement Quality Concept Competition Production Consumer Market Distribution Capacity Transactions Performance Product Goods Feature Want นั้น ษา เท่า Countable or Uncountable noun กา รศ ึก Uncountable Nouns ิทย าล ัยส วน ดุส ิต เพื่อ Countable Nouns " Organization Language Notes: To Infinitive of Purpose Look at sentences from the reading passage about marketing concept. “The marketing concept is all efforts that an organization aims at satisfying its customers to get a profit. “ หา ว “…firms should analyze the needs of their customers and then make "ม decisions to satisfy those needs,…” “Therefore, the question is what philosophy should guide the marketing effort in carrying out tasks to build profitable relationships with target consumers” We can use ‘a’ to infinitive to talk about a person purpose – why someone does something. 54 For example, Lauren is going out to do some shopping. Skyler’s saving is up to buy a motor bike. However, in a more formal style, we use in order to or so as to. นั้น We left the office early so as to have plenty of time. " For example, I went to Seoul in order to learn Korean. ษา เท่า (Beaumont, & Granger. 1992) กา รศ ึก Practice 3: To infinitive of purpose Join each idea in A with an idea from B. Make sentences using in order to or so เพื่อ as to A B ิทย าล ัยส วน ดุส ิต 1. Our customer drank lots of black coffee disturb the neighbors 2. The manager often write things down save time 3. She took an umbrella get a better job 4. We’ll use the computer forget them 5. I want to pass the exams keep awake 6. We turned down the music get wet "ม หา ว (Beaumont, & Granger. 1992) 1. _______________________________________________________________________ 2. _______________________________________________________________________ 3. _______________________________________________________________________ 4. _______________________________________________________________________ 5. _______________________________________________________________________ 6. _______________________________________________________________________ 55 Now, your turn….. Write down the meaning of the purpose of each sentence below. 1. “The marketing concept is all efforts that an organization aims at satisfying its " customers to get a profit.” นั้น To get a profit means ____________________________________________________ ษา เท่า 2. “Therefore, the question is what philosophy should guide the marketing effort in carrying out tasks to build profitable relationships with target consumers” "ม หา ว เพื่อ ิทย าล ัยส วน ดุส ิต Marketing Mix กา รศ ึก To build profitable relationships means ____________________________________ Figure 3.2: Marketing Mix Before reading: Let’s answer the questions below with your partner…. 1. Are ‘marketing mix’ and ‘four P’s’ the same or difference in your opinion? 2. Why does the marketer need to know about marketing mix? 56 Reading: According to Dictionary of Marketing Terms, the definition of marketing mix is “the mix of controllable marketing variables that the firm uses to pursue the desired " level of sales in the target market. The most common classification of these factors นั้น is the four factor classification called the “Four Ps” – price, product, promotion, and ษา เท่า place (or distribution)” (Bennett. 1995: 166) These four P’s or marketing mix should be applied by the marketer in order to increase sales. กา รศ ึก After recognizing the definition of marketing mix, it is obvious that the marketer needs to make a plan to combine product, price, place, and promotion เพื่อ together in the appropriate proportion by using marketing strategies as the guidelines. After that, the marketer has to put this marketing plan into action in order to market ิทย าล ัยส วน ดุส ิต a product and influence the demand of customer. Then, the customers obtain the information about the product. However, these combination techniques are not easy to do because they involve many factors. In brief, the four Ps can be a summary of marketing mix because it includes the activities that the marketer needs to combine them in the appropriate หา ว proportion in order to sell the products successfully. "ม After reading: Choose the correct term (A, B, C, or D) to match each short case studies given (1-12) A. Product B. Price C. Place D. Promotion ______ 1. Ford Focus product consists of nuts and bolts, spark plugs, headlights, and thousands of other parts. 57 ______ 2. Ford dealers rarely charge the full sticker price. ______ 3. Ford spends more than $1.2 billion each year on advertising to tell consumers about the company and its products. " ______ 4. Ford offers several styles and dozens of optional features. นั้น ______ 5. The dealers keep an inventory of Ford automobiles, demonstrate them to ษา เท่า potential buyers, negotiate prices, close sales, and service the cars after the sale. กา รศ ึก ______ 6. Ford maintains a large body of independently owned dealerships that sell the company’s many different models. เพื่อ ______ 7. Dealership salespeople assist potential buyers and persuade them that Ford is the best car for them. ิทย าล ัยส วน ดุส ิต ______ 8. Ford and its dealers offer special promotions – sales, cash rebates, low financing rates - as added purchase incentives. ______ 9. Ford dealers negotiate the price with each customer, offering discounts, trade-in allowances, and credit terms to adjust for the current competitive situation and to bring the price into line with the buyer’s perception of the car’s value. หา ว ______ 10. Ford Focus car comes fully serviced and with a comprehensive warranty. "ม ______ 11. Ford selects its dealers carefully and supports them strongly. ______ 12. Ford calculates suggested retail prices that its dealers might charge for each Focus. 58 Practice 4: Kellogg’s and Marketing Mix Following is the case study of Kellogg Company. This company is the world’s leading producer of cereals and a market leader in health and nutrition. It has done " business worldwide and applied marketing mix into its company effectively. นั้น Let work in a small group of four and match the topics (1-6) on the left with details. 1. Price Details กา รศ ึก Topics ษา เท่า the appropriate details (A - J) on the right. Some topics might have more than one A. Kellogg (Thailand) Ltd. is located in Rayong. their money เพื่อ 2. Founders B. Make ensure that customers receive the best possible product for ิทย าล ัยส วน ดุส ิต 3. Promotion C. Introducing exciting new products to the market regularly 4. Product D. W.K. Kellogg and his brother, Dr. John Harvey Kellogg 5. Branch E. Help ensuring its products are available wherever shoppers are 6. Place F. Kellogg also has a factory in Thailand. G. Delivering engaging and exciting marketing communications H. It was founded in 1898 "ม หา ว I. Offering a wide range of popular products J. Available at supermarkets, or on the internet 59 It is interesting to see how successful the company is. Kellogg’s balances the 4 Ps effectively. Marketing mix can be varying from business to business; however, the purpose of balancing these four Ps is to meet the needs of the customers. " Therefore, the company will succeed. The key point is creating the right product, นั้น sold at the right price, in the right place, and using the most suitable method of ษา เท่า promotion. กา รศ ึก (Business Case Studies LLP. 2015) The Four P’s or Eight P’s เพื่อ As mentioned earlier, the four Ps are comprised of product, price, place and promotion. However, there was a research study that reviewed the elements of ิทย าล ัยส วน ดุส ิต marketing mix in different points of view from various marketing experts. It found that marketing mix was still mainly the same which were product, price, place, and promotion, even though some marketing experts presented the fifth P such as packaging, people, or process. The use of the framework of ‘Four P’s’ remains strong and many marketing textbooks have provided that. The market nowadays has been changed to online business. Internet has played a big role and some marketers หา ว considered using E-marketing mix. Then again, the basic marketing mix is still "ม significant. (Goi. 2009) Consequently, students need to comprehend marketing mix thoroughly. Let’s take a look both ‘Four P’s’ and ‘Eight P’s’ in details. Product is about making decision what to produce or what to sell and also making the product 60 Price is about making decision how much should the product cost. In the other word, it is the amount of money that the customer is willing to pay in order to receive the product. นั้น making it convenient for the customers to find the products easily. " Place is about making decision where should the products be sold, distributed, ษา เท่า Promotion is about communication or sending messages about the quality of the products to customers. Most important thing is persuading them to buy the publicity, personal selling, direct marketing, etc. กา รศ ึก products through the promotional mix which are advertising, sales promotion, As mentioned earlier, some marketer will include additional 4 more P’s which เพื่อ are people, physical presence, process, and physical evidence. People can be divided into two groups which are (1) the employees or staff ิทย าล ัยส วน ดุส ิต of the company who has skills and experience and (2) the clients of the company. Physical presence is the way that the company decorates the shop or designs the website. Processes is the way that the company builds and delivers the products, or to guarantee consistent service. หา ว Physical evidence is the tangible form of the service that customers can "ม touch and hold such as tickets, policies, and brochure (Farrall. & Lindsley. 2008) Practice 5: Elements of Four P’s Students need to realize that marketing mix is about selling the right product, through appropriate distribution channels, at the right price in relation to other 61 products and for the profitability of the company, with the correct support in terms of advertising, sales force, etc. The following exercise will enhance students to recognize each element of four P’s or marketing mix. ิทย าล ัยส วน ดุส ิต product product variety qualtiy Quality Allowances Services Inventory Credit terms 1 2 1 3 4 3 5 6 price list price allowances 2 2 4 7 หา ว "ม 1 2 3 4 5 5 target customer place channels locations Design Coverage Advertising Warranties Channels ษา เท่า Returns Brand name Sizes location List price Logistics กา รศ ึก Product variety Features Packaging public relations Trade-in Allowances Transportation เพื่อ Payment Period Sales promotion Personal selling Discounts Direct marketing Assortments นั้น " Choose the appropriate elements from the box to fill each gap. promotion personal selling sales promotion 2 1 3 62 Summary This unit provided students with a description of marketing mix which was one of the important tools in achieving marketing goals. It also presented plenty " examples of each P’s in marketing mix in order to enhance students’ ษา เท่า นั้น comprehension. Review Questions กา รศ ึก 1. What does marketing mix mean? 3. What are the elements of eight P’s? เพื่อ 2. What are the elements of four P’s? 4. What is the meaning of launching a product? ิทย าล ัยส วน ดุส ิต 5. What does ‘trade-in allowance’ mean? 6. Which P is included ‘direct marketing’? 7. What is the synonym of the word ‘sales force’? 8. Which P is about the look of the website? 9. What are the examples of product? "ม หา ว 10. What are the examples of place? 63 References Beaumont, D. & Granger C. (1992). The Heinemann ELT English grammar. Oxford: " Macmillan-Heinemann. นั้น Bennett, D. (1995). Dictionary of marketing terms. Virginia: NTC Business Books. ษา เท่า Business Case Studies LLP. (2015). “Balancing the marketing mix through creative and innovative strategies” Cited 2015 April 25. Available from กา รศ ึก http://businesscasestudies.co.uk/kelloggs/balancing-the-marketing-mix2016 เพื่อ through-creative-and-innovative-strategies/#teaching-resources on May 6, “Cambridge Dictionary Online” (2013). Cited 2013 April 23. Available from ิทย าล ัยส วน ดุส ิต http://dictionary.cambridge.org/dictionary/business-english/profit_1?q=profit Farrall, C. & Lindsley, M. (2008). Professional English in use: marketing. Oxford: Cambridge University. Goi, C. L. (2009. May). “A review of marketing mix: 4 Ps or more?” International "ม หา ว Journal of Marketing Studies. 1 (1). "ม ิทย าล ัยส วน ดุส ิต หา ว เพื่อ นั้น ษา เท่า กา รศ ึก " 64 Unit 4 ษา เท่า น ั้น " Product Concept In this unit, students will learn more about product and services terminologies กา รศ ึก including the concepts behind it. This unit is a continuation of unit three, expanding more details about Product Concept. Product is one of the essential elements in marketing mix. The unit will cover product concept, product level, product . ิทย าล ัยส วน ดุส ิต writing from the exercises given เพื่อ classifications, and branding. Moreover, students are expected to practice reading and Key Vocabulary in Context In order to clearly understand the basic concept of product, students should study necessary basic terminology about product and the following exercises. Below are some important product terms, which are related to the content in this unit. Study หา ว these terms and do the following exercise. "ม Word Meaning 1. Product planners those marketers who design and plan programs for developing new goods or services 2. Merger the legal combining of two or more business enterprises into a single entity, usually by the transfer of properties and capital 66 Word Meaning all the company employees who persuade customers to buy their company's products or services (Synonyms: sales representative) 4. Capacity the quantity of things that a factory can produce with their own equipment or resources 5. Raw material materials that are in their natural state, before they are processed or used in manufacturing 6. Product line a group of related products produced by one manufacturer, used for similar purposes or to be sold in similar types of shops 7. Product all the products sold by a particular company range 8. Launch to begin something such as a plan or introduce something new such as a product 9. Benefits a helpful or good effect, or something intended to help 10. Tangible the product that is real and able to be shown, touched, or product experienced 11. Agricultural farming or relating to farming 12. Branding the act of giving company or company’s products a specific design or symbol which different from the competitors in order to advertise its products and services 13. Packaging the materials in which objects are wrapped before being sold 14. Labeling a piece of paper or other material that gives customer information about the object it is fixed to "ม หา ว ิทย าล ัยส วน ดุส ิต เพื่อ กา รศ ึก ษา เท่า นั้น " 3. Sales force Fill in the blanks (1-12) with the correct terms from the box. sales force tangible launch benefits capacity packaging branding raw material product planner merger label agricultural 67 1. __________________ are designing new refrigerator styles. 2. The _____________ of these two companies would create the world's biggest accounting firm. " 3. There is a big amount of _____________in this company. นั้น 4. All our factories are working at (full) _____________ (= are producing goods as ษา เท่า fast as possible). 5. Plastic beads are an important _____________for producing ball-point pens. กา รศ ึก 6. The airline will _____________ its new transatlantic service next month. 7. The discovery of oil brought many _____________to the town. in the market. เพื่อ 8. We need to see the _____________ product before launching the samples to test 9. The country's economy is mainly _____________ (= based on farming). ิทย าล ัยส วน ดุส ิต 10. The successful _____________ and marketing of the new beer has already boosted sales and increased profits. 11. All our _____________ is biodegradable. "ม หา ว 12. Washing instructions should be on the _____________. (Cambridge Dictionary Online. 2013) 68 กา รศ ึก Figure 4.1: Japanese Products ษา เท่า นั้น " Discussion: Product Concept Pair up with your friend. Talk to your partner and list all the name of the ิทย าล ัยส วน ดุส ิต เพื่อ products around you that you know or use. หา ว Figure 4.2: Products The name of the products "ม Products you know Products you use 69 Practice 1: Key Vocabulary Match the words with their correct definitions. Put the letters (A, B, C, …) in front of the numbers. a. A group of closely related products that have similar " 1. Product range ษา เท่า within given price ranges. นั้น functions, same customer groups, same types of outlets, or fall b. the range of products that it produces. 3. Launch c. all the products sold by a particular company. 4. Product mix d. the state of being fully developed. 5. Product line e. the quantity of things that a factory or industry can produce เพื่อ กา รศ ึก 2. Raw material or deliver with the equipment or resources that are available. f. materials that are in their natural state, before they are ิทย าล ัยส วน ดุส ิต 6. Maturity processed or used in manufacturing. 7. Capacity g. a company makes a product available to the public. Reading: Defining the Product Read the passage about ‘What is a Product?’ then summarize the text, and "ม หา ว write down the main idea of this passage in the space provided. Before talking about the product in depth, it is important to mention the meaning of the product. There are several meanings about the product. It can be (1) something natural, (2) something made to be sold or (3) a service. Moreover, there is the word “produce” which refers to agricultural products such as rice, crops or fruit which are provided by the farmers. These fresh produce can be found at a farmers’ market. 70 In addition, Kotler and Armstrong (2001: p. 7) defined the meaning of product that “product is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.” Products have a very " broad meaning because it covers physical objects, manufactured goods, services, นั้น agricultural produces. In short, products refer to anything capable of satisfying a ษา เท่า need or want of customers. กา รศ ึก Practice 2: Defining product What is a Product? Summary ____________________________________________________________ เพื่อ Topic: ____________________________________________________________ ____________________________________________________________ ิทย าล ัยส วน ดุส ิต Main Idea: ____________________________________________________________ Language Notes: Finding the main idea When we talk about main ideas, this means we are talking about the most หา ว important idea of that paragraph. It tells the readers what the writer want to talk about. The main idea is important for the readers, it can be called ‘the central idea’ "ม or ‘main point’ of the paragraph. There are two types of main idea, it can be told directly or it may be implied. First, the main idea expressed directly in the text, it is easy for the readers to identify a main idea. There are commonly found at the beginning or at the end of the passage. Some main ideas might be found in the middle of the passage, as the guidelines below: 71 Main ideas that are found at the beginning of paragraphs will appear in the first o sentence. It often explains the subject being discussed in the passage. Main ideas that are found in the end of a paragraph will be the conclusion. It o " can be expressed as a summation of the information in the paragraph as well as นั้น a link to the information in the next paragraph. ษา เท่า Second, the main idea is implied or inferred in the passage and not always clearly stated. This kind of main idea is more difficult to identify. It can be implied main idea in the passage as follows: กา รศ ึก through other words in the paragraph. There are several ways to look for an implied Several sentences in a paragraph can imply the main idea by introducing facts o เพื่อ about the topic before actually stating the topic. Implied ideas can be drawn from facts, reasons, or examples that give hints or o ิทย าล ัยส วน ดุส ิต suggestions concerning the main idea. Students need to understand the hints in order to discover the main idea in the selected text. o After finish reading a paragraph, ask yourself the following questions to determine the correct main idea of this paragraph. "What point is the author making in this passage?" “Does this passage discuss a person or group of people?” (Who) “Does the information contain a reference to time?” (When) “Does the text name a place?” (Where) “Do you find a reason or explanation for something that happened?” (Why) “Does this information indicate a method or a theory?” (How) "ม หา ว (Adapted from Columbia College. 2011) 72 Practice 3: Finding the main idea Read the passage below and see if you can pick up the main idea. Then, fill out the blanks in the chart below. นั้น " Product planners need to think about their products on three levels before ษา เท่า designing the product which are core product, actual product, and augmented product. The most basic level is the core product – the main reason why the buyer กา รศ ึก really wants to buy the product. Therefore, marketers must uncover the needs hiding under every product and sell benefits not features. Marketers have to apply เพื่อ the needs and wants of customers into product benefit because when customers buy the products, they buy product benefits, not product features only. ิทย าล ัยส วน ดุส ิต Next level, the core product has to be turned into a tangible product which is an actual product. This may have as many as five characteristics: features, brand name, styling, packaging and quality levels. Final level, the product may offer additional services and benefits that make up an augmented product. Physical products can usually be augmented by หา ว benefits such as customer advice, delivery, credit facilities, a warranty or guarantee, "ม maintenance, after-sales service, and so on. Topic: ____________________________________________________________ Main idea: who/what:___________________________________________________ when: _______________________________________________________ why ________________________________________________________ how: ________________________________________________________ 73 5._________ warranty 1._________ " actual product 4._________ 3._________ ษา เท่า 2._________ นั้น installation aumented product packaging กา รศ ึก core benefit feature ิทย าล ัยส วน ดุส ิต เพื่อ core product (Kotler, & Armstrong. 2001: 191) Practice 4: Product Classification Arrange the words in the box into the correct product levels. หา ว to communicate black customer advice Nokia/ iPhone after-sale service small "ม Core Product 12-month guarantee to listen to the radio 1-year credit term maintenance durable feature to take a picture Actual Product Augmented Product 1. 1. 1. 2. 2. 2. 3. 3. 3. 4. 4. 5. 74 Product Categories It would be easier for the marketers when the products are sort out into meaningful types based on the purposes of their use or the users. Then, the " marketers are able to apply appropriate marketing strategies and design marketing นั้น plan effectively. ษา เท่า For the main category, products and services can be divided into two categories – consumer products and industrial products. This is based on the type เพื่อ Consumer Products กา รศ ึก of consumer who uses that products and services (Kotler, & Armstrong. 2001: 226). Consumer products are products bought by final consumers or end user for ิทย าล ัยส วน ดุส ิต personal consumption. They do not buy it to sell to someone else. Marketers usually classify these goods further based on how consumers consider buying them. Common categories of consumer products are convenience products, shopping products, specialty products, and unsought products. Keep in mind that, these products differ in the ways that consumers buy them, and therefore in how they are หา ว marketed. (Kotler, & Armstrong. 2001: p. 226) The first category is convenience products; they are consumer products that "ม the customer usually buys frequently, immediately, and minimum buying effort. Examples include soap, candy, and newspapers. They are usually low priced, and can be found in many outlets The second category is shopping products; they are consumer products that customers compare carefully on suitability, quality, price, and style. Therefore, consumers buy them less frequently. Examples include furniture, clothing, and cars. 75 They are distributed through fewer outlets but provide deeper sales support to help customers in their comparison efforts. The third category is specialty products; they are consumer products with " unique characteristics or brand identification. There is a small group of buyers. นั้น Examples include specific brands and types of cars, high-priced photographic ษา เท่า equipment, and custom-made men’s suits. The last category is unsought products; they are consumer products that the กา รศ ึก customer does not normally think of buying. The customer becomes aware of them through advertising. Examples include life insurance and blood donations to the Red Cross. Unsought products require a lot of advertising, personal selling, and other ิทย าล ัยส วน ดุส ิต เพื่อ marketing efforts. (Kotler, & Armstrong. 2001: 226) Practice 5: Product Categories Write down the name of the products you know under the correct classifications in the box and present your work in front of the class. "ม หา ว Convenience Products Shopping Products Specialty Products Unsought Products 76 Industrial Products Industrial products are purchased by the factory or company for further processing or for use in conducting a business. These can be divided into three " groups which are materials and parts, capital items, and supplies and services. นั้น (Kotler, & Armstrong. 2001: p. 227) ษา เท่า Firstly, materials and parts consist of raw materials (such as farm products or natural products) and manufactured materials and parts กา รศ ึก Secondly, capital items are industrial products which help the business’s production or operations. เพื่อ Thirdly, supplies and services include operating supplies, repair and maintenance items. Services can be maintenance and repair services and business ิทย าล ัยส วน ดุส ิต advisory services. (Kotler, & Armstrong. 2001) To conclude, the distinction between a consumer product and an industrial product is based on the purpose for which the product is bought. If a consumer buys a computer laptop for use on their own, the computer laptop is a consumer product. If the same consumer buys the same computer laptop for use in (Farrall, & Lindsley. 2008) "ม หา ว a language translation business, the computer laptop is an industrial product. Practice 6: Industrial products Read the passage about “Industrial Products” and complete the mind mapping below. 77 ___________ ___________ ___________ ___________ ___________ กา รศ ึก ___________ ___________ เพื่อ ___________ Branding ษา เท่า Industrial Products นั้น " ___________ ิทย าล ัยส วน ดุส ิต Before reading: Get in groups of three. Look at the picture below, think about "ม หา ว brand names you know, and share with your friends in your group. Figure 4.3: Branding Source: Honest Digital T/A The Honest Agency (2015) 78 What is a brand? Products need to have brands so the customers can refer to, recall, and mention them when they need. A brand is a name, term, design, symbol, or any " other feature that a company gives to its products so they can be easily recognized นั้น and distinguished from its competitors. Customers are able to identify one seller’s ษา เท่า goods or service as distinct from those of other sellers. There are many way to brand the products. It may be the name of the กา รศ ึก company itself: the make of the product. For products like cars, you refer to the make and model, the particular type of car, for example, the Ford (make) Focus ิทย าล ัยส วน ดุส ิต เพื่อ (model). Figure 4.4: Ford Focus Logo Source: Auta5p (2004) After the marketers planning on the product, they have to consider how to select the appropriate brand name for their products. There are actually many ways หา ว to brand their products or services. They could use a "ม name, a symbol or a design to identify it and differentiate it from the competitor’s brands or rival brands. It should be short (one-or-two-syllable) and easy for customers to say and recall. Examples are Rolex, Ray-Ban, and Disney. Figure 4.5: Rolex Logo Source: Swiss watch brands (2015) 79 Figure 4.7: Disney Logo Source: ProProfs Quiz Maker (2015) " Figure 4.6: Ray-ban Logo Source: Dipple & Conway (2015) นั้น In addition, there are five more terms about branding that students should ษา เท่า know which are brand name, brand mark, trademark, and trade name. The first term is brand name; a brand name is the name given to a product กา รศ ึก or a range of products – goods of a similar type that are marketed together – or the name that the manufacture gives it. Please remember, a brand name can be ิทย าล ัยส วน ดุส ิต Colgate and Uniqlo). เพื่อ spoken, including letter, words, and numbers (for example, Phillips, Sony, Coco-Cola, Figure 4.9: Coca-cola Logo Source: KrystalGrant.com (2012) หา ว Figure 4.8: Uniqlo Logo Source: Wikipedia, The Free Encyclopedia (2015) "ม Secondly, brand mark is a part of a brand comprised of a symbol, picture, or design, which is not made up of words. Figure 4.10: Nestle Brand mark Source: History of All Logos. (2010) 80 Thirdly, trademark is the legal protection for the brand, its logo and its brand name. The owner has exclusive use of a brand or a part of a brand and others ษา เท่า นั้น " are prohibited by law from using it. กา รศ ึก Figure 4.11: Google’s Trademark Source: Planet of-tunes (1999) Finally, the last term, trade name is the full and legal name of an เพื่อ organization. For example, the trade name or the company that produce mineral ิทย าล ัยส วน ดุส ิต water ‘Mont Fleur’ is Saha Pathanapibul Public Limited Company. (Farrall, & Lindsley. 2008) Practice 7: Branding Look at the pictures of brand names in the left column, search for the name of the company that produces them from Internet. "ม หา ว Brand Names Figure 4.12: Honda Jazz Source: caradvice (2015) 1. Company 81 Brand Names Company 2. นั้น " Figure 4.13: Nestle logo Source: History of All Logos (2010) ษา เท่า 3. กา รศ ึก Figure 4.14: Evian logo Source: Logok (2015) ิทย าล ัยส วน ดุส ิต เพื่อ 4. Figure 4.15: Lego logo Source: Goodlogo.com (2010) Brand in Newspaper "ม หา ว Pair up with your friend, read the news article, and answer the questions. 82 Dell rebrands Dell to Dell Technologies, Dell EMC, and Dell " Michael Dell shakes family tree of names on company's 32nd birthday. เพื่อ Peter Bright กา รศ ึก ษา เท่า นั้น by Kelly Fiveash (UK) - May 3, 2016 8:13pm WIB Dell has followed in the footsteps of its rival HP by hitting the reboot button on its various brands. ิทย าล ัยส วน ดุส ิต "We're a little bit late to the party, but what we've unveiled today puts us ahead." Chief Michael Dell confirmed that Dell—which turned 32 years of age on Tuesday—had a new name: "our family of businesses will officially be known as Dell Technologies," he said. Things got a little bit more garbled, however, when Dell (Mister Dell, that is) confirmed that Dell's client solutions business will be branded simply "Dell." To this, Dell said, "The brand equity in the Dell PC is irreplaceable. We have incredible momentum, gaining share in 13 straight quarters. And above all, it’s critically important to our customers." หา ว But wait, there's more: Dell's enterprise business will be renamed "Dell EMC" because the two monikers, we're told, "stand for something very special to you and our customers." Dell confirmed in "ม October last year that it was buying EMC for $67 billion (~£43.6 billion)—the biggest tech deal in history. Dell (Mister) added that he thought Dell Technologies had a "nice ring" to it, before pledging that "with the EMC transaction moving forward as planned, I think we’re about to get a whole lot bigger and able to do a whole lot more for customers. You better believe the best is yet to come." Source: Fiveash (2015) 83 After finishing reading the news article, answer the questions below. 1. What is the headline of this news article? 2. What kind of product is it? " 3. What happened in this news article? กา รศ ึก Self-study assignment ษา เท่า brand name strategy in your opinion? นั้น 4. What is the advantage or disadvantage of changing brand names based on Students search the Website of Suan Dusit University and write down the เพื่อ name of consumer products you found. Give one example of each type of consumer products with the reason in the box below. Example ิทย าล ัยส วน ดุส ิต Types of consumer products Convenience product Shopping product Specialty product "ม หา ว Unsought product Reason 84 Summary This unit has described in details the concept of product. This comprises of product levels, product classification, branding, etc. Students are expected to " distinguish the meanings of consumer product and industrial product. Also, they นั้น know the way to set the brands. Next unit, student will gain more knowledge in the ษา เท่า second P which is price concept. กา รศ ึก Review Questions 2. What is the meaning of product? เพื่อ 1. What is the difference between ‘product line’ and ‘product range’? 3. Haw many types of product classification? What are then? ิทย าล ัยส วน ดุส ิต 4. Please explain the meaning of unsought product and give the example. 5. How do you select the brand name? 6. What does ‘packaging’ mean? 7. How many levels of packaging and what are they? 8. What is the benefit of labeling toward the product? หา ว 9. How many types of industrial market? What are they? "ม 10. What does ‘capacity of the company’ mean? 85 References Auta5p. (2004). “Ford focus 1.6 comfort” Cited 2015 May 5. Available from: " http://auta5p.eu/zkusenosti/ford_focus_2/focus.php. นั้น Cambridge Dictionary Online. (2013). Cited 2013 April 23. Available from: ษา เท่า http://dictionary.cambridge.org/dictionary/business-english/profit_1?q=profit Caradvice. (2015). “Honda jazz vibe” Cited 2015 May 5. Available from: กา รศ ึก http://www.caradvice.com.au/213750/honda-jazz-vibe-japan-sourced-specialeditions-return/photos/. เพื่อ Columbia College. (2011). “Finding main idea” Cited 2011 September 12. Available from: http://www.ccis.edu/ writingcenter/studyskills/mainidea.html. ิทย าล ัยส วน ดุส ิต Dipple & Conway. (2015). “Ray-Ban” Cited 2015 May 5. Available from: http://www.rbeusa.co/. Farrall, C. & Lindsley, M. (2008). Professional English in use: Marketing. Oxford: Cambridge University. Fiveash, K. (2015). “Dell rebrands Dell to Dell Technologies, Dell EMC, and Dell” Cited on 2015 May 5. Available from: "ม หา ว http://arstechnica.com/business/2015/05/dell-rebrands-dell-to-dell- technologies-and-dell/. Goodlogo.com. (2010). “Lego logo” Cited 2015 May 5. Available from: https://goodlogo.com/extended.info/lego-logo-2462. History of All Logos. (2010). “All Nestle logos” Cited 2013 April 23. Available from: http://logoshistory.blogspot.com/2011/03/all-nestle-logos.html. 86 Honest Digital T/A The Honest Agency. (2015). “What makes a good logo?” Cited 2015 May 5. Available from: http://thehonest.agency/what-makes-a-goodlogo/. " Kotler, P. & Armstrong, G. A. (2001). Principles of marketing: activebook version 1.0. นั้น NJ: Prentice Hall. ษา เท่า KrystalGrant.com (2012). “Coca-cola logo” Cited 2013 April 23. Available from: http://www.krystalgrant.com/2012/05/07/wedding-vows-and-coca-cola/coca- กา รศ ึก cola-logo/. Logok. (2015). “Evian logo” Cited 2015 May 5. Available from: http://logok.org/evianlogo/. เพื่อ Planet of-tunes. (1999). “Trademarks” Cited 2013 April 23. Available from: http://www.planetoftunes.com/project- ิทย าล ัยส วน ดุส ิต management/copyright/trademarks.html#.V29IyI9OKIU. ProProfs Quiz Maker. (2015). “Which Disney character are you?” Cited 2015 May 5. Avialble from: http://www.proprofs.com/quiz-school/story.php?title=whichdisney-character-are-you_7. Swiss watch brands. (2015). “Top Swiss watch brands” Cited 2015 April 23. Available หา ว from: http://swiss-watch-brands.com/. "ม Wikipedia, The Free Encyclopedia. (2015). “Uniqlo” Cited 2015 May 23. Available from: https://en.wikipedia.org/wiki/Uniqlo. Unit 5 นั้น " Pricing Strategy ษา เท่า This unit presents terminology related to pricing strategy. It also covers different price expressions, and pricing strategies. Students will be practiced reading กา รศ ึก and calculating basic pricing figures. After finishing studying this unit, students should Key Vocabulary in Context เพื่อ be able to describe pricing terminology and explain different pricing strategies. ิทย าล ัยส วน ดุส ิต In order to understand basic pricing strategy terms thoroughly, students need to know necessary basic pricing terminology which is related to the content in this unit. Study words in the box below and do the following exercises. Word 1. Price "ม หา ว 2. Budget priced goods 3. Recommended retail price 4. Discount 5. Margin Meaning the amount of money that the customers have to pay in order to buy the product low-priced goods the price which the retailers have to pay the manufacturer for a product a reduced price offered after a period on offer at a higher price the difference between the cost of a product and the selling price 88 Meaning a price that sets low but also allows a reasonable profit the price a manufacturer asks when selling a product to a wholesaler or retailer the typical price that different companies are asking for similar products 9. Retail price the price consumers actually pay 10. Wholesale price the price a retailer pays a wholesaler for a product 11. Unit cost the costs involved in making one single example of a product 12. Overheads regular day-to-day cost for running a company 13. Fixed costs the costs which do not depend on quantity of production, such as rent, insurance, etc. 14. Variable costs the costs which change according to the quantity of production, such as raw materials, components, etc. 15. Total cost the cost which combine fixed cost and variable costs 16. Production all the expenses a manufacturer has to pay to produce a costs product. (Synonym: Cost of production) 17. Selling costs total costs involved in making a product, distributing, promoting and selling a product. (Synonym: Costs of sales) 18. Competitionthe policy of setting a price for goods or services based on the based pricing price charged by the competitors 19. Cost-based the policy of setting a price for goods or services based on pricing how much it costs to produce, distribute and market them 20. Marketthe policy of setting a price for goods or services based on an orientated pricing analysis of the market and consumer 21. Penetration the policy of setting a low price for goods or services in order pricing to encourage sales 22. Pricing strategy the system of prices the company sets for the goods it produces or the service it provides 23. Price-sensitive the market for a product or service is affected by changes in price "ม หา ว ิทย าล ัยส วน ดุส ิต เพื่อ กา รศ ึก ษา เท่า นั้น " Word 6. Economic price 7. Factory gate price 8. Market price 89 Meaning its official price, before any discounts are included the amount of money that is needed in order to make it an item in the store that is sold at very low price to attract that customers to buy that particular products and other goods at the same shop the amount of money that a company earns from selling the products in a given period กา รศ ึก ษา เท่า 28. Revenue นั้น " Word 25. List price 26. Cost (noun) 27. Loss leader Fill in the blanks (1-16) with the correct terms from the box. overheads variable cost profit budget priced เพื่อ margin selling cost fixed cost strategy price revenue cost cost price market price ิทย าล ัยส วน ดุส ิต wholesale price unit costs discount list price 1. The ___________ of oil has risen sharply. 2. Many airlines offer _______________ tickets online. 3. They usually give you a _____________ if you buy multiple copies. 4. Using cheap labour increases profit _______________. หา ว 5. They're asking £400,000 for their flat, but the_____________ is nearer £350,000. "ม 6. Firms can still cut their _______________ by expanding their markets. 7. Many big companies have been hit by high_____________ and falling sales. 8. When you take 2,000 people out of your business you will inevitably have_____________ reductions. 9. One way to reduce car usage is to increase the________ of using a car. 10. ________ is incurred in various forms, of which advertisement is the main one. 90 11. We were able to buy the furniture from a friend at ___________. 12. Their marketing ________ for the product involves obtaining as much free publicity as possible. นั้น 14. When you buy a new computer, you usually get software included at no extra " 13. Taxes provide most of the government's ________ ษา เท่า _______ Restaurants may charge as much as four times the __________ for wine. 15. It is selling for ฿180.50 instead of for the __________ of ฿340.75. กา รศ ึก 16. He will make a ฿431m __________ on the sale (Cambridge Dictionary Online. 2013) เพื่อ Practice 1: Key Vocabulary A. Use the terms in the box to complete the paragraph below. pricing strategies market price discounting price-sensitive price price-sensitive ิทย าล ัยส วน ดุส ิต cost list price Price is part of the marketing mix, and all companies must decide how to (1) _________ their products or services. This can be very difficult, as consumers are หา ว heavily influenced by the (2) _________________ of something. A product may be set up a full (3) _______________ but this price may rarely be charged because of "ม (4) _________________by sellers. When a price of similar products has been ‘decided’ by the market, it is known as the (5) _________________. The market for one particular product can be easily affected by changes in price, in which case it is (6) _________________, and consumers, too, if the price influences their spending decision, they are also (7) _______________. The company is able to choose any one of several (8) _________________ or policies in order to set its own price. 91 B. Match the sentences about pricing strategies on the left with the correct reason on the right. i. because they think a careful analysis of the market will penetration pricing help them set the best price. B. Company B is using ii. to get its products into a new market. นั้น ษา เท่า competition-based pricing " A. Company A is using iii. because adding a percentage profit margin to the based pricing production costs is a quick and easy way of setting a price. D. Company D uses iv. so consumers won’t think their products are more market-orientated pricing expensive than those of their competitors. ิทย าล ัยส วน ดุส ิต Discussion: What is price? เพื่อ กา รศ ึก C. Company C uses cost- Do you think all of these words below are about ‘PRICE’? tuition interest bribe retainer fee toll dues salary fare premium commission wage หา ว rent rate honorarium assessment income taxes Pair up with your friend and write down the meanings of the terms in "ม the box that you know the meaning. ……………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………………………... 92 Below is a ‘fun’ text which shows some of the different expressions there are in English for ‘price’. Read it and do an exercise in Practice 2. When you study, you pay tuition for your education. When you are sick, you " “Price is everywhere! Where you live, you pay rent for your apartment. นั้น pay a fee to your physician or dentist. When you travel by airplane, railway, ษา เท่า taxi, or bus, you have to pay a fare. The local utilities call their price a rate. When you borrow money, the local bank charges you interest. When you company charges you a premium. กา รศ ึก drive on express way, you have to pay a toll. When you insure your car, the The guest lecturer charges an เพื่อ honorarium for giving a special talk. A government official took a bribe to help a shady character steal dues (or the payments that someone makes in ิทย าล ัยส วน ดุส ิต order to belong to an organization) collected by a trade association. When you belong to any clubs or societies, they make a special assessment to pay unusual expenses. Your regular lawyer may ask for a retainer to cover her services. When you work, your income as an executive is a salary, the ‘price’ of a sales person maybe a commission, and the price of a worker is a wage. Finally, at the end of the year, you have to pay income taxes which "ม หา ว deducted from your salary, wages or commissions.” Practice 2: Vocabulary Using information from the text above, make your own table listing price expressions and any other combinations you can think of. Example: to pay rent for an apartment Preposition Objects Noun phrase to pay rent to pay to charge __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ for for __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ you _______ _______ ________ ________ ________ ________ ______ ________ ________ ________ an apartment tuition a premium ____________ ___________ ____________ ____________ ____________ ___________ ____________ ____________ ____________ ____________ ษา เท่า กา รศ ึก เพื่อ ิทย าล ัยส วน ดุส ิต นั้น Verb " 93 Practice 3: Price terms Match the price terms on the left with the person in charge and write down the meanings of each term in Thai: Price terms Person/organization charging a. visiting lecturer 2. rate b. insurance company 3. premium c. white-collar worker 4. fare d. local council 5. commission e. social club 6. fee f. blue-collar worker "ม หา ว 1. salary Definitions 94 h. sales agent 9. retainer i. private school 10. tuition j. lawyer 11. wage k. bridge owner 12. toll l. bank 13. honorarium m. architect 14. interest n. property owner Reading: What is Price? นั้น 8. dues ษา เท่า g. taxi driver กา รศ ึก 7. rent Definitions " Person/organization charging เพื่อ Price terms ิทย าล ัยส วน ดุส ิต Price is the amount of money exchanged for the ownership or use of a good or service. Talking about marketing mix, price is the most flexible elements because it is the only element that produces income for the company. The other elements (product, place, and promotion) represent costs. "ม หา ว (Kotler, & Armstrong. 2001) Figure 5.1: Different Prices of Japanese Products 95 Word combinations with ‘price’ There are more pricing terminologies which are words combined with ‘price’ and have definite meaning. They commonly found in marketing articles as follows: The situation when prices are rising quickly. A good period for sellers " Price boom นั้น Price controls The situation when the government efforts to limit price increases The situation when a price is reduced Price hike The situation when an increase in price Price war The situation when competing companies reduce prices in response to กา รศ ึก ษา เท่า Price cut each other A company that is first to reduce or increase prices Price tag Label attached to goods, showing the price; also mean ‘price’ ิทย าล ัยส วน ดุส ิต เพื่อ Price leader (Mascull. 2002) Practice 4: Word combinations with ‘price’ Complete the sentences below with the appropriate form of words in หา ว the box above. "ม 1. A price ____________ by Coca-cola may indicate the start of price increases by other producers. 2. Bangkok’s house price _______________ has gone beyond Pathumthanee, with properties in Phayathai now worth 20 percent more than a year ago. 3. Consumers who use DTAC will get price ______________ of eight percent off phone bills from May. They will pay less than before. 96 4. When the President of the country ended price _____________, electricity, phone, and transport costs went up. 5. Petron is a price ______________; it’s usually the first to offer lower prices. นั้น ____________ for each helicopter from ฿330 million to ฿780 million. " 6. There is a high cost in designing the helicopter, pushing up the price ษา เท่า 7. There is a price __________ between Bangkok Airways and Air Asia on the route of Bangkok to Chiang Mai. กา รศ ึก (Mascull. 2002) เพื่อ Reading: Pricing Strategies As we know that price is the amount of money charged for a product or ิทย าล ัยส วน ดุส ิต service. It also can be the value exchanged for the benefits of the product or service. For a new product, the marketers must understand their positioning before setting a price. If the price is too low, the product will not be taken seriously. At the same time, if it is too high, the potential customer will not take the risk. Marketers need to carefully study pricing strategy or the system of setting the price for the goods and services. หา ว There are many ways to price a product. Let's have a look at first four pricing "ม strategy which are premium pricing, penetration pricing, economy pricing, and price skimming. And try to understand the best policy or strategy in various situations. Premium Pricing This strategy sets high price for high quality product. It can use a high price because there is a unique feature of the product or service. This approach is used where a substantial competitive advantage exists. 97 Penetration Pricing This strategy set low price for high quality products. Marketers apply this strategy because they would like to gain market share. After they achieved, the price " will be adjusted and increased. This approach was appropriate to attract new clients. นั้น Economy Pricing ษา เท่า This strategy sets low price for low quality product. The producers try to reduce the cost of marketing and manufacture at a minimum. Supermarkets often กา รศ ึก have their own economy brands for instant noodles, water, rice, etc. Price Skimming เพื่อ This strategy charges a high price for low quality product because the company has a substantial competitive advantage. However, this advantage does not ิทย าล ัยส วน ดุส ิต last or it is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply. Practice 5: Pricing Strategy Matrix Read the text about pricing strategies again and complete the pricing "ม หา ว strategy matrix below. 98 2. _______ 3. _______ 4.________ กา รศ ึก ษา เท่า นั้น " 1. _______ เพื่อ Figure 5.2: Pricing Strategy Matrix Language Note: Topic of a Paragraph ิทย าล ัยส วน ดุส ิต What is the Topic? A Topic is a word or phrase that tells what something is about. It can be a thing, a person or an idea. Example o You are talking with a friend about person you both know. You say to หา ว your friend, “He’s always talking about baseball.” In other words, "ม Baseball is his favorite topic of conversation. o You are reading a book and a friend asks, “What is it about?” You answer, “It’s about mountain climbing.” Mountain climbing is the topic of the book. 99 To sum up, the topic is important in written English. Writers think about the topic as they are writing, and their ideas follow from that topic. If you want to understand the ideas, you must start by looking for the topic. " Choosing the Topic of a Paragraph นั้น The topic tells what a paragraph is about. It should not be general (too big) or ษา เท่า too specific (too small). In a paragraph, all of the sentences are about the same thing; that is, they are all about the same topic and they make sense together. กา รศ ึก (Jeffries, & Mikulecky. 2009) เพื่อ Practice 6: Choosing Topic of a Paragraph Read each paragraph and choose the correct topic from the box ิทย าล ัยส วน ดุส ิต below. Geographical Pricing Psychological Pricing Captive Product Pricing Optional Product Pricing Product Line Pricing Promotional Pricing 1. __________________________ This approach is used when the marketer wants the consumer buys product หา ว because of an emotional basis, not a rational basis. For example, setting 'price point "ม perspective' is 199 baht, not 200 baht. 2. __________________________ This approach is used to set the price for a range of product or services so the other products will get benefits of parts of the range. The range of price is not big different. Hair product is a good example. Shampoo could be ฿80, hair conditioner ฿120, and the whole package ฿200. 100 3. __________________________ This approach offers alternatives for customers with extra price. Once customer starts to buy products and spends money, the companies will offer " optional 'extras' which cost some money. For example airlines will charge optional นั้น extras for guaranteeing a window seat. ษา เท่า 4. __________________________ This approach is suitable with the products that have complements. The กา รศ ึก companies will charge a premium price where the consumer is captured. For example, a computer manufacturer will charge a low price for computer and charge high price for the printer which design only for this computer model. เพื่อ 5. __________________________ This approach aims to promote a product which is very common. There are ิทย าล ัยส วน ดุส ิต many examples of promotional pricing including approaches such as Buy One Get One Free (BOGOF). 6. __________________________ This approach charges variations in price in different parts of the world. If that หา ว product is rare in that area, the price is definitely high because of the shipping costs. (McCarthy, & Perreault. 1993) "ม Practice 7: Pricing Strategies Match up the remarks with the name of pricing strategies in the box. Economy Pricing Psychological Pricing Premium Pricing Price Skimming Promotional Pricing Geographical pricing Penetration Pricing 101 1. Use a high price where there is uniqueness about the product or service. _____________________________________________________________________ 2. Set low price for products and services in order to gain market share. " ______________________________________________________________________ นั้น 3. This is a no frills low price. ษา เท่า ______________________________________________________________________ 4. Charge a high price because the product has a substantial competitive advantage. กา รศ ึก ______________________________________________________________________ 5. There are variations in price in different parts of the world. 6. Buy One Get One Free เพื่อ ______________________________________________________________________ ______________________________________________________________________ ิทย าล ัยส วน ดุส ิต 7. The price of T-shirt is 299 baht. ______________________________________________________________________ (Mascull. 2002) หา ว Summary In this unit, students have learned pricing terminologies and also basic "ม knowledge on different pricing strategies. Price terms and different word combinations were mentioned in this unit. Next unit, students will learn about place which is the third P in marketing mix. 102 Review Questions 1. What does price mean? 2. What is the difference between ‘production cost’ and ‘selling cost’? 6. Please explain ‘penetration pricing’? นั้น กา รศ ึก 5. What is the example approach of ‘promotional pricing’? ษา เท่า 4. How many pricing strategies? What are they? " 3. What is the difference between ‘price boom’ and ‘price hike’? 8. What does ‘price strategy’ mean? เพื่อ 7. What is the different between ‘premium pricing’ and ‘economy pricing’? ิทย าล ัยส วน ดุส ิต 9. Which pricing strategy have you seen in your real life? 10. Please explain with your own reason, which pricing strategy will you apply if "ม หา ว you have your own product? Why? 103 References Cambridge Dictionary Online. (2013). Cited 2013 April 23. Available from: นั้น " http://dictionary.cambridge.org/dictionary/business-english/profit_1?q=profit ษา เท่า Jeffries, L. & Mikulecky, B. (2009). Reading power 1. White Plains, NY: Longman. Kotler, P. & Armstrong, G. A. (2001). Principles of Marketing: Activebook Version 1.0. กา รศ ึก New Jersey: Prentice Hall. Mascull, B. (2002). Business Vocabulary in use. Cambridge: Cambridge University. "ม หา ว ิทย าล ัยส วน ดุส ิต เพื่อ McCarthy, E. J. & Perreault, W. D. (1993), Basic marketing. Homewood: Irwin. "ม ิทย าล ัยส วน ดุส ิต หา ว เพื่อ นั้น ษา เท่า กา รศ ึก " 104 Unit 6 นั้น " Place Concept ษา เท่า Distribution Channel is an important role in marketing mix. It is called “Place”. This unit focuses on the concept of the flow process of the products starting from กา รศ ึก the manufacture to the store or ultimate customers. Students are expected to be able to describe the meaning of channel of distribution, physical distribution and also the concept behind them. เพื่อ Moreover, the students will be familiarized with the concept of retailing and wholesaling relating distribution channel. This unit also describes the roles of retailers ิทย าล ัยส วน ดุส ิต and wholesalers in the distribution channel and major types of retailers and wholesalers. It also give examples of each type as well. After studying this unit, the students should be able to describe and explain different types of retailers and wholesalers. หา ว Key Vocabulary in Context "ม In order to clearly understand the concept of distribution channel, students should study necessary basic terminology about place and complete the exercise afterward. Below are some important distribution channel terms, which are related to the contents in this unit. Study the terms and do the following exercise. 106 Word Meaning 1. Channels of the path or the route which goods or services travel through from distribution the producers to customers in order to be marketed an independent business or people who works as a link between producers and ultimate consumers (Synonym: intermediary) 3. Customers the actual purchaser of products or services 4. Target market 5. Inventory a group of customers that a company wishes to sell the product to the amount of goods being stored (Synonym: stock) 6. Warehouse a physical facility used for storing or keeping goods เพื่อ a set of combined similar product that taken together, delivering to the customers 8. Wholesaler a merchant engaged in buying, storing and handling goods in large quantities and reselling the goods to retailers 9. Retailer a merchant engaged in selling small quantities to ultimate consumers 10. Retailing a set of business activities deal with the selling of goods and providing services for personal, family, or household use 11. Agent a business unit or a person agent that negotiates buying and selling for the store or the merchant 12. Broker an agent who buys or sells for someone else, on a commission or fee basis, without owning the goods 13. Sales those people who represent a company and sell to retailers. It representatives can be called “sales reps” for short 14. Sale a defined region in which a representative or agent can sell a territory product or service 15. Franchise the permission granted by a manufacturer to a distributor or retailer to sell its products 16. Direct mail the advertising matter mailed to large numbers of customers "ม หา ว ิทย าล ัยส วน ดุส ิต 7. Assortment กา รศ ึก ษา เท่า นั้น " 2. Middleman 107 Fill in the blanks (1-16) with the correct terms from the box. broker middleman wholesale channel of distribution customers retailing franchise target market inventory sale territory agent warehouse assorted retailers direct mail นั้น ษา เท่า 1. Marketers need to plan on before launching a new product กา รศ ึก into the market. from the factory. 3. Mrs. Wilson is one of our regular . is young people. ิทย าล ัยส วน ดุส ิต 4. The paper and buying directly เพื่อ 2. You can lower the price by cutting out the 5. Our " sales representative of used cars is the best in town. 6. The goods have been sitting in a _____________ for months because a strike has prevented distribution. 7. A case of wines is in that shop. and retail. หา ว 8. He raised prices slightly for 9. Factory gate prices may be rising, but it is and wholesalers, not "ม consumers, who are shouldering this burden. 10. This model of computer is 11. Please contact our 12. I called my at 21,650 in Spain for further information. for advice about investing in the stock market. 13. My father works as a 14. He was a car dealer in Northern for computer company. . 108 15. John just starts his fast-food ____________________ 16. Susan is in ______________ business, she has to write to her customers frequently in order to persuade them to buy her products. นั้น " (Cambridge Dictionary Online. 2013) ษา เท่า Channels of Distribution กา รศ ึก Before reading: Answer these questions before reading the passage. 1. Who do the selling job? c. middleman 2. What does ‘scale of operation’ mean? b. buyer d. target market เพื่อ a. producer ิทย าล ัยส วน ดุส ิต a. Communication with someone b. Knowledge or skill that you get from doing and seeing c. The process of becoming an expert in a particular area d. The amount of activities in delivering goods or services 3. Why don’t the producers distribute the products themselves? หา ว a. The producers don’t want to do it "ม b The producers do not like to do this kind of job. c. The producers do not have experience in selling job. d. The producers do not have enough staffs to do it. 109 Reading: Channels of Distribution Most producers try to form a distribution channel – a set of interdependent organizations (e.g. agent, broker, retailers, or wholesaler) helping in facilitating the " process of making a product available for use by the consumer or business user. นั้น (Armstrong, Armstrong, & Kotler. 2007) This channel of distribution is important for ษา เท่า the company since they expect their customers to received product at the right time and at the right place. กา รศ ึก Therefore, the producers give the selling job to intermediaries or middlemen because of their greater efficiency. These people have lots of เพื่อ experiences in making goods available to target markets through their contacts. They are the experts because of their specialization. In addition, using intermediaries can ิทย าล ัยส วน ดุส ิต save cost for the producers. Part B "ม หา ว Part A Figure 6.1: Using intermediaries Figure 6.1 above shows the way to provide economies by using intermediaries. Part A shows three manufacturers, each uses its own marketing to reach three customers directly. This system requires nine different contacts. Part B 110 shows the three manufacturers working through one distributor, who contacts the three customers. This system requires only six contacts between producers and consumers. In this way, intermediaries help to reduce the amount of work " In addition, the role of marketing intermediaries is matching supply and นั้น demand between the producers and the consumers, and transforming the ษา เท่า assortments of products made by producers into the assortments wanted by consumers and serve customers’ need. (Armstrong, Armstrong, & Kotler. 2007) กา รศ ึก It is obvious that intermediaries are a part of distribution channel which have different channel levels and different channel length. Each layer of marketing intermediaries that bring the product closer to the final buyer is a channel level. เพื่อ Both the producer and the final consumer are part of every channel. We use the number of intermediary levels to indicate the length of a channel. Figure 6.2 "ม หา ว ิทย าล ัยส วน ดุส ิต shows several consumer distribution channels of five different lengths. Door-to-door Figure 6.2: Consumer Distribution Channels 111 After reading: Read the statement below and decide if it is TRUE or FALSE. of making a product or service available for use by the consumer. นั้น TRUE/FALSE " 1. A distribution channel is an intermediary helping organizations in the process ษา เท่า 2. Producers give the selling job to middleman because of their greater efficiency in making goods available to target markets. TRUE/FALSE กา รศ ึก 3. Intermediaries play the role of increasing the amount of work for both producers and consumers. TRUE/FALSE demand. TRUE/FALSE เพื่อ 4. Inventory management plays an important role in matching supply and ิทย าล ัยส วน ดุส ิต 5. Distribution channels can be described by the number of channel levels "ม หา ว involved. TRUE/FALSE Figure 6.3: ‘Place’ in Japan 112 Practice 1: Key vocabulary Match the words on the left with their correct definitions on the right. a. Intermediary 2. Assorting b. The structure of internal and external agents through c. A similar group of customers that a company is interested in selling to ษา เท่า 3. Inventory นั้น which a commodity product or service is marketed. " 1. Target market กา รศ ึก 4. Channels of distribution d. A combination of similar products that are taken together in one set for definite purpose. e. The amount of goods being stored 6. Franchising f. A person or company that sells goods in large เพื่อ 5. Middleman ิทย าล ัยส วน ดุส ิต amount to other businesses or other retailers 7. direct mail g. Someone who owns a shop selling goods to individual customer. 8. Retailer h. A contractual system which grants the right to sell goods and services from one party to another party "ม หา ว 9. Wholesaler i. The use of the mail delivered by the delivery services as an advertising media vehicle. 113 Practice 2: Consumer Distribution Channels Look at the chart below and write down the answers in your own word. broker wholesaler retailer consumer wholesaler retailer consumer ษา เท่า Manufacturer นั้น " Manufacturer own store consumer Manufacturer retail store consumer websites consumer กา รศ ึก Manufacturer direct calls consumer ิทย าล ัยส วน ดุส ิต Manufacturer เพื่อ Manufactuer Figure 6.4: Consumer Distribution Channels 1. Which channel distribution alternatives is the best channel in your point of view? Why? Please explain briefly according to the text above. ______________________________________________________________________ ______________________________________________________________________ หา ว ______________________________________________________________________ "ม 2. If you manufacture grand piano, which channel of distribution are you going to choose? Why? ______________________________________________________________________ ______________________________________________________________________ _____________________________________________________________________ 114 Distribution Relationship (wholesalers, retailers and customers) Before reading: Write down the meanings of the terms in the table below before reading the passage. " Definitions นั้น Terms ษา เท่า 1. distribution 2. wholesaler กา รศ ึก 3. retailer 4. reseller ิทย าล ัยส วน ดุส ิต 6. middleman เพื่อ 5. distributor Reading: To begin with, students need to understand the word ‘distribution.’ It means the process of giving things out to several people, or supplying the products to customers. There are many terms related to distribution as follows: หา ว First one is a wholesaler – someone who buys and sells goods in large "ม amounts to shops and businesses. Second term is a retailer, opposite to wholesaler. It means someone who sells goods in small quantity to customers for personal use. The third one is a shop selling a particular product, such as cars, which is called a dealer (a person who trades in something). Next one is similar to a retailer, it is a reseller which is a company that buys products from manufacturers and sells them to customers. 115 Wholesalers, retailers, dealers, and resellers are distributors which mean a person or company that buys products from a producer or manufacturer and sells them to other businesses, stores, or customers for a profit, by transporting the goods " to different places. All these distributors are sometimes called middleman – a นั้น person who buys goods from the factory and sells them to a shop or a user to make ษา เท่า a profit. (Mascull. 2002) กา รศ ึก After reading: Use expressions above from reading passage to complete this presentation of Mr. Robert Coulson. เพื่อ “Hi, my name’s Robert Coulson. I started out in the leather hand bag business 17 years ago. When I first bought leather hand bags to sell, there was a ิทย าล ัยส วน ดุส ิต complicated (1) d_____________ c____________ between the manufacturer and the customer. All (2) w_____________, (3) r____________ and (4) r_____________ are added to the costs, but this didn’t show much value for the (5) c____________’s point of view. Now, at the new company, we make every hand bags to order and deliver directly to the buyer. That way, our company can cut out the (6) (Mascull. 2002) "ม หา ว m____________.” Practice 3: Retailing Listen to the teacher talking about key vocabulary in retailing and fill in the blanks below. 1. (1) _____________ is the business of selling products to the final customers. Most (2) ____________ sell from (3) ________ or (4) ___________ which are called 116 (5) ____________. There are large retail (6) _____________ in most countries, which are organized nationally by the same owner and sell a different selection of products. Their outlets are often located at the same place in (7) " ______________ ______________ (US malls), where there is a large variety of นั้น stores. ษา เท่า 2. Some large retailers are located out of town, providing parking facilities for customers, known as either (8) ________________ (over 30,000 square meters) or กา รศ ึก (9) _________________ (under 30,000 square meters). They may be on a (10) ______________, where there are a number of large stores. 3. (11) ___________________, such as Central in Bangkok, are large shops which sell เพื่อ a wide range of products, usually located in a city center. As the name suggests, they are organized in departments, each with its own manager. ิทย าล ัยส วน ดุส ิต (Tullis, & Trappe. 2004) Retailing Before reading: Think about retail stores. Look at examples below and discuss หา ว with your partner which one is about retailing. Bic C? "ม Reading: Makro? Tops? Foodland? Amway representatives? Tesco Lotus? Holiday Inn? A doctor treating patients? Retailing is about the activities of selling goods or services directly to final consumers for their personal use. There are two types of retailer which are stores retailing and nonstore retailing. Most retailing is done by retailers: businesses whose sales come primarily from retailing. Obviously, most retailing is done in retail stores, but nowadays, 117 nonstore retailing has grown tremendously. Examples are selling by mail, telephone, door-to-door contact, vending machines, and numerous electronic means, online and Internet marketing. (Kotler, & Armstrong. 2001) " Stores Retailing นั้น A shop (BrE) or store (AmE) is the place where people buy things. ษา เท่า Companies may call it a retail outlet or sales outlet. Retail stores are different in shapes and sizes, and new types of retail store are emerging everyday. This part กา รศ ึก covers convenience stores, shopping stores, shopping center, specialty stores, department stores, supermarket, drug store, hypermarket, chain stores, and ิทย าล ัยส วน ดุส ิต Practice 4: Store Retailing เพื่อ franchises. Read the definitions of retail stores and choose the appropriate topics from the box below. supermarket shopping center drug store convenience stores department stores chain stores หา ว specialty store hypermarket franchises shopping store "ม 1. A _____________________ is a small shop located in a residential area and open long hours. In addition, they’re so handy, easy parking, fast checkout and easy-to-find merchandise. (McCarthy, & Perreault. 1993) The examples are 7-eleven, Family Mart, 108 shop, etc. 118 2. A_____________________ is a shop that attracts customers from greater distances because of the width and depth of their assortments. They focus on their displays, demonstrations, information, and knowledgeable salesclerks. " 3. A_____________________ or shopping precinct (in Britain) is a purpose-built area นั้น or building in a town center with a number of shops. Outside towns, there are ษา เท่า shopping malls, where it is easy to park. 4. A_____________________ is a shop for customers who insist on a certain brand of กา รศ ึก a product. They have developed a strong attraction because of unique service, selection, or reputation. Examples are IKEA, Index or HomePro. 5. _____________________ are very large stores with a wide variety of goods that are เพื่อ organized into many separate departments. It is usually located in a town center. Examples are Nordstrom’s in Seattle, Harrods in London, and Central in Bangkok. ิทย าล ัยส วน ดุส ิต 6. _____________________ are large stores specializing in food or groceries with selfservice and wide assortments. Supermarkets sell convenience products – but in quantity. 7. _____________________ is a shop in a town center in the US which sells medicines. It also provides coffee and meal there. หา ว 8. _____________________ is very large shop with a various types of goods, usually "ม outside a town 9. A_____________________ is one of several stores owned and managed by the same firm. They are part of a group of shops, all with the same name. 10. _____________________ are owned by the people who have granted the rights to sell only the goods of one company (franchisees), That company (the franchisor) provides goods, organizes advertising, and offers help and support. 119 Nonstore retailing Nonstore retailing is the selling of goods and services outside of shops and stores. It does " not require to have a store, this can be called machine, telephone and direct-mail, door-todoor selling, and online and Internet marketing. ษา เท่า นั้น ‘home shopping’ They are automatic vending Practice 5: Nonstore Retailing กา รศ ึก Figure 6.5: Automatic Vending Machine topics from the box below. เพื่อ Read the definitions of nonstore retailing and choose the appropriate ิทย าล ัยส วน ดุส ิต Online and Internet marketing Telephone and direct-mail retailing Door-to-door selling Automatic vending 1. _____________________ is selling and delivering products through vending machines. Automatic vending is convenient for customers but it is high cost for sellers. หา ว 2. _____________________ allows consumers to shop at home by placing orders on "ม the phone, email, or Internet – and charging the purchase to a credit card or transferring to a bank account. 3. _____________________ means going directly to the consumer’s home. It meets some consumers’ needs for convenience and personal attention. 120 4. _____________________ is similar to direct-mail retailing, but it is a direct sales via electronic commerce by using Websites, Application Line, Facebook or social media want to: 1. visit different shops outside of town with easily parking. ษา เท่า นั้น After reading: Look at types of shop above and say where the place is if you " sites like Twitter. กา รศ ึก __________________________________________________________ 2. visit various different shops at the same location in a British town center. เพื่อ __________________________________________________________ 3. buy a packet of sugar when all the supermarkets are closed. ิทย าล ัยส วน ดุส ิต __________________________________________________________ 4. have a snack in an American city without going to a restaurant. __________________________________________________________ 5. buy food very cheap. __________________________________________________________ หา ว (Mascull. 2002) "ม Language Notes: Prepositions A preposition is commonly use in English sentence; it links a noun, pronoun, or noun phrase to some other part of the sentence. It is used to show direction, location, or time, or to introduce an object. Examples are in, to, at, for, from. 121 Practice 6: Prepositions Read the passage about wholesaling and fill in the blanks with the ษา เท่า นั้น to, to, to, to, in, in, in, for, from, at " appropriate prepositions from the box below. Wholesaling กา รศ ึก Wholesaling is about the activities involved (1) _____ selling goods and services (2) _____those buying (3) _____ resale or business use. For example, a retail bakery is engaging (4) _____ wholesaling when it sells bread and pastry (5) _____ the เพื่อ local restaurant and hotel. Wholesalers are those firms which involved primarily (6) _____ wholesaling activity. Mostly, they buy (7) _____ producers or manufacturer and ิทย าล ัยส วน ดุส ิต sell mostly (8) _____ retailers, industrial consumers, and other wholesalers. But why don’t they sell directly (9) _____ retailers or consumers? Why do they use wholesalers? This is quite simple; it is because the wholesalers are often better (10) _____ performing in several functions such as selling and promoting, warehousing, (McCarthy, & Perreault. 1993) "ม หา ว transportation, etc. Practice 7: Wholesaling Read the statements below and decide if it is TRUE or FALSE, according to the reading passage ‘wholesaling’ 1. Wholesaler is a firm engaged primarily in wholesaling activity. TRUE/FALSE 122 2. Company that resells the products does not involve in wholesaling activities. TRUE/FALSE 3. Merchant wholesalers cannot trade their products with other wholesalers; they นั้น 4. Broker is a wholesaler who brings buyers and sellers together and assist in " have to sell their products to retailers only. TRUE/FALSE ษา เท่า negotiation. TRUE/FALSE กา รศ ึก 5. Retail store might engage in wholesaling business. TRUE/FALSE Summary เพื่อ After studying this unit, students were able to tell the concept of channels of distribution and intermediaries. In addition, retailing and wholesaling business were ิทย าล ัยส วน ดุส ิต mentioned in this unit in order to make the place concept comprehensible for the "ม หา ว students. Next unit, it will state the last P of marketing mix which is promotion. 123 Review Questions 1. What does ‘channel of distribution’ mean? 3. What are the differences between ‘retailers’ and ‘resellers’? ษา เท่า 5. How many types of retailer? What are they? นั้น 4. What is the meaning of ‘distributor’? 6. What is the difference between ‘wholesaler’ and ‘retailer’? กา รศ ึก 7. What is the advantage of intermediaries? 8. How many groups of wholesalers? What are they? เพื่อ 9. What is non-store retailing? หา ว ิทย าล ัยส วน ดุส ิต 10. Which type of non-store retailing that used the most nowadays? "ม " 2. What are the roles of intermediary? 124 References Armstrong, G. M., Armstrong, G., & Kotler, P. (2007). Marketing: An Introduction. NJ: " Pearson Prentice Hall. นั้น Cambridge Dictionary Online. (2013). Cited 2013 April 23. Available from: ษา เท่า http://dictionary.cambridge.org/dictionary/business-english/profit_1?q=profit Kotler, P. & Armstrong, G. A. (2001). Principles of Marketing: Activebook Version 1.0. กา รศ ึก NJ: Prentice Hall. Mascull, B. (2002). Business Vocabulary in Use. Cambridge: Cambridge University. เพื่อ McCarthy, E. J. & Perreault, W. D. (1993), Basic Marketing. Homewood: Irwin. "ม หา ว ิทย าล ัยส วน ดุส ิต Tullis, G. & Trappe, T. (2004). New insights into business. London: Longman. Unit 7 นั้น " Promotion Concept ษา เท่า This unit presents Marketing Communications Mix or Promotion Mix which is the specific mix of advertising, personal selling, sales promotion, public กา รศ ึก relations, and direct marketing. Students will learn each elements of promotion mix in detail. It focuses on reading passages on advertising, personal selling, sales ิทย าล ัยส วน ดุส ิต Key Vocabulary in Context เพื่อ promotion, public relations and direct marketing throughout the unit. In order to clearly understand the basic concept of promotion, students should study necessary basic terminology about promotion mix and complete the following exercises. Below are some important promotion terms, which are related to the contents in this unit Word หา ว 1. Promotion Meaning any communication for purposes of selling a product or service, including advertising, personal selling, public relations and publicity the short-term activity that encourage purchase or sale of a product or service 3. Advertising the practice of calling public attention to a product or service by paid announcements, e.g. newspapers, magazine, TV, or radio "ม 2. Sales promotion 126 Meaning any vehicle (newspapers, TV, billboards, radio, etc.) used to deliver an advertising message 5. Slogan a short, easily remembered phrase used by a company so that people will recognize it or its products นั้น 4. Media " Word a short sentence or phrase that expresses a belief or purpose of a company or its product 7. Spot a brief announcement, usually a radio or television advertisement or commercial during or after a program 8. Display an arrangement of merchandise designed to induce sales; usually seen at trade conventions, in store windows, and at point-ofpurchase counters 9. Publicity public notice resulting from mention in the media and verbal communication among people. It does not have to be paid for 10. Sample a part of a product used to show the quality, style, and nature of the whole 11. Premium a prize or bonus given as an inducement to purchase products or to use services 12. Cold call trying to sell the product to customer on the phone without being asked by the customer to do so 13. Sales lead a prospective buyer showing interest in the products or intent to buy 14. Personal the firm’s sales representative making sales and building customer selling relationships on behalf of the company 15. Public the way to build good relationships with the company’s various relations publics by concentrating on a good "corporate image" 16. Direct communicating with targeted individual consumers directly about marketing the products, obtaining an immediate response and building lasting customer relationships "ม หา ว ิทย าล ัยส วน ดุส ิต เพื่อ กา รศ ึก ษา เท่า 6. Motto 127 promotion cold call spot sales lead in the supermarket and they were giving away free glasses of wine. holds the main role in the promotional activities of a large กา รศ ึก 2. sample display slogan motto ษา เท่า 1. There was a media premium public relations direct marketing นั้น personal selling sales promotion advertising publicity " Fill in the blanks (1-16) with the correct terms from the box. number of organizations. agency is employed to plan, design, place, and supervise ads or เพื่อ 3. An ad campaigns. ิทย าล ัยส วน ดุส ิต 4. The issue has been much discussed in the 5. The organization hired a . agency to help them improve their image. 6. The company's advertising in the 1970s and 1980s was "You can be sure of Shell". 7. advertising is targeted, in that it seeks to create direct contact หา ว with individual consumers. about its new shampoo "ม 8. P & G needs to spread an advertising message or brand over a wide area so people will recognize it. 9. There's an Egyptian art collection on at the museum at the moment. 10. We have planned an exciting ___________campaign with our advertisers. 11. A free of shampoo is available in front of the store. 12. We're willing to pay a for the best location. 128 13. We were 14. A by a company offering savings on our phone bill. is the opposite of making a cold call. is "Work hard, play hard". 16. They ran a in July that helped clear some of last year's " 15. Her นั้น inventory. เพื่อ กา รศ ึก ษา เท่า (Cambridge Dictionary Online. 2013) ิทย าล ัยส วน ดุส ิต Figure 7.1: Promotion in the Japanese bus Discussion: Ways of advertising Identify these different advertising media. Pair up with your friend and look at six different ways of advertising illustrated below. Write down the name of advertising media in your own opinion. Then, classify them "ม หา ว according to the advertising costs, ranging from the most expensive to the cheapest. A) B) 129 C) " Don’t forget: Sale starts Monday. นั้น D) เพื่อ ิทย าล ัยส วน ดุส ิต F) กา รศ ึก Closing Down Sales! ษา เท่า E) Figure 7.2: Ways of Advertising Order of advertising cost (from the most expensive to the cheapest) หา ว Name of advertising media A "ม B C D E F (Mackenzie. 2002) 130 Practice 1: Key vocabulary Match the words on the left (1-7) with their correct definitions on the right (a-g). 1. Sales promotion a. the presentation and promotion of products or " services in the paid form by an identified sponsor b. the promotion of a good reputation with the public 3. Advertising c. public notice resulting from mention in the media ษา เท่า นั้น 2. Media and verbal communication among people. d. an arrangement of merchandise designed to induce กา รศ ึก 4. Public relations sales e. short-term activity that encourage purchase or sale เพื่อ 5. Slogan of a product or service. f. the various mass media that carry advertising ิทย าล ัยส วน ดุส ิต 6. Display messages to target markets for products or services. 7. Publicity g. a motto adopted for advertising a product (Mackenzie. 2002) หา ว Promotional Strategies Before reading: Fill in the blanks with the appropriate words from the box "ม below. believable channel incentives message advertising loyalty communication marketing mix aimed expressive medium target trial preference tactics attempt 131 1. A product that satisfies a customers’ need has to be made known to its _________________ customers. 2. The well-known ‘Four Ps’ formulation is called _______________ (product, " place, promotion and price). นั้น 3. Advertising informs or tells consumers about the existence and benefits of ษา เท่า products and services, and _____________ to persuade them to buy the products. 4. Advertising lets the seller repeat a ____________ many times, and allows กา รศ ึก the buyer to receive and compare the messages of various competitors’ products. 5. Advertising is very ____________ because it lets the company dramatize its เพื่อ products by using the artful print, sound and color. 6. Advertising is able to carry on only a one-way ________________ with the ิทย าล ัยส วน ดุส ิต audience because the audience does not have to pay attention or respond. 7. Public Relations is very _______________ because it presents in the form of news stories, press conference, and events which seem more believable and real to readers. 8. Publicity is the way to mention company’s products in any ____________ that the company’s customers read, view or hear, aimed at assisting sales without "ม หา ว the need to pay for. 9. Sales promotion tools are temporary ____________ designed to stimulate stronger sales of a product in a short period of time. 10. Free samples can generate the initial ____________ of a new product, especially when they combined with extensive advertising. 11. Sales promotion provides inducements that give additional value to consumers in order to offer strong ____________ or motive to purchase. 132 12. The effects of sales promotion are usually short-lived and are not much effective in building long-run brand _______________. 13. Sales promotions can be ____________ at distributors, dealers and " retailers, in order to encourage them to stock more new items. นั้น 14. Sales promotions are designed to gain entry to new markets or it can be ษา เท่า strengthen brand _____________ among retailers. 15. Personal selling is used as a complement to __________________. กา รศ ึก 16. Salespeople are often the only staff from a company that sees our customers; they are an extremely important _____________ of information. เพื่อ (Mackenzie. 2002) ิทย าล ัยส วน ดุส ิต Reading: The Four Major Promotional Tools First of all, talking about using promotional tools in a company, marketers have to decide which tools – advertising, public relations, sales promotion, or personal selling – to use, and in what proportion because the budgets are limited. They have to spend it worthily and wisely. We are going to look in details of each หา ว promotional tool. Advertising "ม The first promotional tool is advertising. Marketer uses it to tell customers about the product and persuade customers to buy it. In fact, the best form of advertising is word-of-mouth advertising, which occurs when satisfied people tell their friends about the products or services that they have purchased. Especially nowadays, the social media is a big part of customers’ life, ‘review’ and ‘comment’ 133 on the product usage is commonly found in social media sites. However, no providers of goods or services rely on this alone; they still need to use paid advertising. " Advertising is the tool that the company can repeat the message many times นั้น because they can turn on their commercials on TV or radio quite often. In addition, ษา เท่า they apply the artful use of print, sound and color on their commercial abundantly. The function of advertising is also build up a long-term image for a product (Coca- กา รศ ึก Cola ads) and to trigger quick sales (Central Department Store Midnight Sale). As you can see that advertising can reach masses of buyers at a low cost per exposure, เพื่อ there are millions of people, spread out geographically, watch one TV commercial. On the other hand, advertising can be very costly because it requires very large ิทย าล ัยส วน ดุส ิต budgets. Unlike newspaper or radio advertising that can be done on small budgets. Advertising also has some shortcomings; it is not on for a long time. In addition, advertising is impersonal and a one-way communication, it cannot be as persuasive as a company salesperson. หา ว (Mackenzie. 2002) "ม Practice 2: Advertising Draw up a table summarizing the positive and negative features of advertising Positive features Negative features 1. 1. 2. 2. 3. 3. 134 Public Relations The second promotional tool is public relations (often abbreviated to PR), it is about maintaining, improving or protecting the image and reputation of a company " or product. Public relations offer better qualities than advertising because it seem นั้น more real and believable to the buyers. Publicity is also an important element of might read, view, or hear, which assists the product sales. ษา เท่า PR, it is the message about company’s products shown in the media that customers กา รศ ึก The good thing about public relations is that it can attract attention of customer who avoids salespeople and advertisements because buyers receive the เพื่อ message of a product or service as ‘news’. Also, public relations can describe a company or product beautifully, like advertising. ิทย าล ัยส วน ดุส ิต In addition, a lot of research has shown that customers are more likely to believe in what they read more than advertising. It can cause a huge impact on public awareness and this publicity does not require an enormous cost. (Mackenzie. 2002) Practice 3: Public Relations หา ว Draw up a table summarizing the positive and negative features of public "ม relations (PR) Positive features Negative features 1. 1. 2. 2. 3. 3. 135 Sales promotion The third promotional tool is sales promotion which includes different kinds of techniques – coupons, free samples, price reductions, competitions, contests, " premiums, and others. These techniques are used for short period in order to นั้น stimulate sales volume or stronger sales of a product. For example, free samples ษา เท่า (addition to advertising) can attract customers’ attention and make customers interested in a new product. Customers get information about new products and กา รศ ึก might want to buy them in the future. Company offers premiums or coupons with the purchase to customers so they feel that they get additional values. เพื่อ However, the effects of sales promotion are short-lived and it cannot build long-run brand loyalty. Because customers buy products only when they offer price ิทย าล ัยส วน ดุส ิต reductions, premium, discount coupons, or special sales promotion such as ‘Buy One Get One Free’, ‘Buy Two Get One Free’, etc. Some stores use ‘loss leaders’ technique by reduce prices of some specific item in order to bring customers into the shop, then customers will buy other goods at regular prices. This creates a stronger and quicker response. หา ว Moreover, sales promotions can be used with distributors or retailers in order "ม to encourage them to stock new items or larger quantities. In brief, sales promotions invite customers to buy and get reward quickly. While advertising says ‘buy our product’, sales promotion says ‘buy it now.’ (Mackenzie. 2002) 136 Practice 4: Sales Promotion Draw up a table summarizing the positive and negative features of sales promotion 2. 2. 3. 3. Personal selling The last promotional tool is personal selling which is the most expensive เพื่อ . นั้น 1. กา รศ ึก 1. " Negative features ษา เท่า Positive features and the most effective tool of the buying process. It involves personal interaction ิทย าล ัยส วน ดุส ิต between sellers and buyers, so the seller can observe buyer’s needs and characteristics and make quick adjustments to satisfy their needs. Personal selling can be used to enforce advertising. Personal selling has several unique qualities such as giving information about a company’s products and services, selling these products and services, answering customers’ questions, and assisting customers with หา ว possible technical problems. Significantly, salespeople are the only staff from a "ม company that meet customers and collect important information of customers These tools with unique qualities can cost a lot for the company. A sales force requires a longer-term commitment than advertising. The company has to pay salary, wages, or commission to all sales representatives. But advertising can be turn off if the company doesn’t want to pay, but sales force size is harder to change. (Mackenzie. 2002) 137 Practice 5: Personal Selling Draw up a table summarizing the positive and negative features of personal 1. 2. 2. 3. 3. กา รศ ึก 1. นั้น Negative features ษา เท่า Positive features " selling answer the following questions เพื่อ After reading: Read the text “The four major promotional tools” again and 1. What is a free advertising that happy customers recommend products they use ิทย าล ัยส วน ดุส ิต to their friends? ______________________________________________________________________ 2. What sorts of goods is personal selling most suited to? ______________________________________________________________________ หา ว 3. Which promotion tool is the most expensive? "ม ______________________________________________________________________ 4. Which promotion tool is the most effective? _____________________________________________________________________ 5. Which promotion tool is one-way communication? ___________________________________________________________________ 138 Practice 6: Vocabulary There is a logical connection among three of the four words in each of the following groups. Which is the odd one out, and why? " 1. A. competitors B. advertising C. publicity D. sales promotion นั้น ……………………………………………………………………………………………………………………………………….. ษา เท่า 2. A. media plan B. advertising agency C. advertising campaign D. word-of-mouth …………………………………………………………………………………………………………………………………….. กา รศ ึก 3. A. advertising manager B. sales reps C. brand-switcher D. marketing manager …………………………………………………………………………………………………………………………………….. เพื่อ 4. A. guarantee B. after-sales service C. optional features D. points of sale ………………………………………………………………………………………………………………………………………. ิทย าล ัยส วน ดุส ิต 5. A. brand awareness B. brand loyalty C. brand preference D. brand name ……………………………………………………………………………………………………………………………………….. 6. A. coupons B. free samples C. competitions D. line-stretching ……………………………………………………………………………………………………………………………………… 7. A. credit terms B. list price C. discount D. packaging …………………………………………………………………………………………………………………………………….. หา ว 8. A. growth B. introduction C. product improvement D. decline "ม …………………………………………………………………………………………………………………………………….. 9. A. focus group interviews B. media plan C. questionnaire D. internal research …………………………………………………………………………………………………………………………………….. 10. A. packaging B. place C. product D. promotion ……………………………………………………………………………………………………………………………………… (Mackenzie. 2002) 139 Reading: Direct marketing Another tool of promotional mix which has not yet mentioned is direct marketing. It means direct " communications with targeted นั้น consumers individually to receive ษา เท่า an immediate response and build a long-lasting relationship with กา รศ ึก customers. Below is the story of Benja who works in direct Figure 7.3: Direct Marketing Source: AMS Direct Marketing Solutions (2016) เพื่อ marketing business. ิทย าล ัยส วน ดุส ิต Hi, I’m Benja and I work in a direct marketing company in Bangkok. Our staffs organize mailings for different products and services. This is called direct mail but most people do not like it and often call it junk mail. We have to target our mailing lists very carefully: for example, we don’t send brochures for garden tools to people who live หา ว in condominiums! "ม We also do telemarketing, selling by telephone, including cold calls to people who do not have any contact with us before. Most Figure 7.4: Tupperware Party Source: The Irish Times (2016) people do not like it and rude to the workers in our call centers. (Mascull. 2002) 140 Practice 7: Direct Marketing Read the sentences in each bubble. Which expression above does the ‘it’ in each sentence refer to? 2. 50,000 well-targeted letters to cat-lovers? We can ษา เท่า coming through my letterbox. organize it, no problem. 3. กา รศ ึก It hardly stops. 4. I have to do it. I’ve never เพื่อ It’s a terrible place to work. We have to make 35 calls an spoken to them before, but I have got no choice. ิทย าล ัยส วน ดุส ิต hour, with just few breaks. 5. นั้น I really hate it, all that stuff " 1. 6. The two key activities that make it up are telemarketing "ม หา ว and all mailings. People who always receive phone messages, selling things, tend to hate it. (Mascull. 2002) 141 Summary This unit presented the details of promotional mix – advertising, public relations, publicity, personal selling, sales promotion, and direct marketing. Students " learnt the advantage and disadvantage features of each promotional tool. Next unit, นั้น marketing strategies will be presented, focusing on TP analysis and Product-market กา รศ ึก ษา เท่า strategies. Review Questions เพื่อ 1. What is the difference between ‘public relations’ and ‘publicity’? 2. What are the elements of promotion mix? ิทย าล ัยส วน ดุส ิต 3. What does ‘advertising’ mean? 4. Please tell the example of ‘sales promotion’ 5. What does ‘direct mail’ mean? 6. What is the best form of advertising which is no paid? 7. What is the advantage of personal selling? "ม หา ว 8. What is the disadvantage of sales promotion? 142 References AMS Direct Marketing Solutions. (2015). “Multichannel marketing and communication Cited 2015 June 25. Available นั้น http://justaroundthecorner.net.au/. from: " solutions” ษา เท่า Cambridge Dictionary Online. (2013). Cited 2013 April 23. Available from: http://dictionary.cambridge.org/dictionary/business-english/profit_1?q=profit กา รศ ึก Mackenzie, I. (2002). English for business studies. Cambridge: Cambridge University. Mascull, B. (2002). Business vocabulary in use. Cambridge: Cambridge University. เพื่อ The Irish Times. (2015). “Buying into direct selling for extra cash” Cited 2015 June 25. Available from: http://www.irishtimes.com/business/personal-finance/buying- "ม หา ว ิทย าล ัยส วน ดุส ิต into-direct-selling-for-extra-cash-1.2397663. 143 Unit 8 นั้น " Marketing Strategy ษา เท่า This unit presents the marketing strategies, STP analysis, competition, and product-market strategy. Students will learn about expressions used in marketing กา รศ ึก strategies such as market niche, market segment, market share, and target market. This is very important to achieve success in marketing management. Moreover, some important marketing strategies, that is STP analysis which including market เพื่อ segmentation, market targeting and market positioning, and Product-Market Strategy will be discussed. To enhance comprehension about marketing strategies, many ิทย าล ัยส วน ดุส ิต reading exercises are provided. Key Vocabulary in Context In order to understand the basic marketing strategies thoroughly, students should know some essential terminology for marketing strategies. Below are some หา ว important marketing strategies terms, which are related to the content in this unit. "ม Word Meaning 1. Strategy a detailed long-term plan for achieving the company’s goals 2. Market segmentation the way to divide all possible customers into groups based on their needs, age, education, income, etc. 144 Meaning 3. Market segment 4. Market targeting 5. Target market a group of customers who respond in a similar way because they similar in their needs, age, education, etc. the process of selecting market segment to enter by evaluating the attractiveness of each market segment the group of people in which a company is trying to sell its products or services 6. Market positioning placing a product into a clear and desirable position comparing with the competing products in the areas of price, quality, etc. ษา เท่า นั้น " Word a company that has the highest sales of the products in its market, more than most of its competitors do 8. Market an organization or product that has the second-largest market Challengers share in its market or industry 9. Market a small company in a market, which presents no threat to the follower market leader 10. Niche market a market for a product or service that has a small group of buyers because the product might be expensive or unusual 11. Market share the proportion of the total sales of one product in relation to other products in the same market or industry 12. Geography an area where a company operates or sells a product 13. Demography the study of human population changes such as the numbers of births, marriages, deaths, etc. in a particular area หา ว ิทย าล ัยส วน ดุส ิต เพื่อ กา รศ ึก 7. Market leader "ม Fill in the blanks (1-20) with the correct terms from the box. target market competition market challenger market segment market share segmentation competitor demographic product line market positioning niche market market position market followers segmentation rivals strategies occupy geographies demography market leader market 145 1. This (young teenagers) is the fastest growing age group using the site. 2. At least one major is gearing up to provide local service at lower " prices. senior positions on Wall Street. นั้น 3. An increasing number of women . ษา เท่า 4. Longer hours should give the store an advantage over the 5. The strong pound will leave large sections of British manufacturing in the rest of Europe. 6. Apple's iPod is a very successful price points. with models at a wide range of is the statistical study of human populations. เพื่อ 7. กา รศ ึก uncompetitive against 8. The company added that there had been a "business slowdown in all ิทย าล ัยส วน ดุส ิต __________. 9. The company has increased its . 10. The company makes luxury cars for a small but significant 11. . must know how to hold current customers. 12. With around 10% to 15% market share, the company is a หา ว 13. The supermarket chain is now the . in baby goods. . "ม 14. They should focus on areas where they have a strong 15. Our North American business performed strongly in the quarter as a result of our __________________. 16. The key for this newspaper is middle aged professionals. 17. Tablet computers are aimed at the home user . 146 18. Business environments and are constantly changing in response to economic and financial variables. 19. is the key to legal services of the market. " 20. The key to marketing success lies in ษา เท่า นั้น (Cambridge Dictionary Online. 2013) Discussion: Marketing Strategy กา รศ ึก Work in a small group of 3-5 and write down the meanings of those words in Thai. You may consult dictionary. Then, arrange the items below into the correct Words Meanings in Thai ______________________________________ ิทย าล ัยส วน ดุส ิต 1. market segmentation เพื่อ topics in the table below. ______________________________________ 3. strength ______________________________________ 4. market targeting ______________________________________ 5. market penetration ______________________________________ 6. weakness ______________________________________ 7. market development ______________________________________ 8. opportunity ______________________________________ "ม หา ว 2. product development 9. diversification ______________________________________ 10. threat ______________________________________ 11. market positioning ______________________________________ 147 Product-Market Strategy 1. 1. 2. 2. 2. 3. 3. 3. 4. 4. ษา เท่า 1. " SWOT Analysis นั้น STP Analysis Practice 1: Key Vocabulary ___1. market leader กา รศ ึก Match the correct definitions with the terminologies given on the left. a. a group of customers who respond in a ___2. market follower เพื่อ similar way to marketing stimuli b. the company with the second-largest market ิทย าล ัยส วน ดุส ิต share ___3. market challenger c. a market in which a company is trying to sell its products or services ___4. Competitors d. the company with the largest market share. ___5. Target market e. a small company which has no threat to the market leader in a market "ม หา ว ___6. Market segment f. companies who are selling similar goods or services to the same group of people 148 Marketing Strategies Read the passage below and answer the following questions in practice 2. The company sets up goals that need to be achieved and it has to plan " carefully how to do it. This is called marketing strategy, which is a statement นั้น identifies how a product or brand will achieve its objectives. This strategy provides ษา เท่า information about market segmentation, target market, identification of market positioning, marketing mix elements, product-market strategy, and expenditures. กา รศ ึก Bennett (1995) said that “a marketing strategy suggests a broad direction to all functions in the organization which is an integral part of a business strategy.” เพื่อ Therefore, marketing strategy is a long-term planning for the company focusing on หา ว ิทย าล ัยส วน ดุส ิต combining all marketing tools in order to achieve the company’s goals. "ม Figure 8.1: A seller and a buyer in Japanese tea shop Language Notes: Adjectives versus Adverbs Adjectives describe words or modify nouns to be clearer or more exact meanings. Therefore, the writer uses different adjectives in his or her writing then the readers are able to understand the sentence better, such as what color is it, what size is it, which one is it, etc. 149 For example, “A marketing strategy is an integral part of a business strategy, it also provides broad direction to all main functions in an organization.”, and “The company must divide the total market into market segments, choose the " best segments, and design strategies particularly for that chosen segments to make นั้น profit better than its competitors do.” ษา เท่า Adverbs describes verbs, added to the verbs in order to modify the actions so the readers know when, where, how, in what manner or to what extent an action กา รศ ึก is performed. For example, “A company has to plan carefully how to do it.” เพื่อ Practice 2: Adjective and Adverbs in Context Now read the passage about Marketing Strategies again and write all adverbs ิทย าล ัยส วน ดุส ิต and adjectives you find in the box provided below. Adjectives 1. 2. 3. 4. 1. 2. 3. 4. 5. "ม หา ว 5. Adverbs Reading: STP Analysis In a company, marketing plays a big role in helping each business unit to accomplish the same strategic objectives. The main thing that the company has to do is satisfying consumers by understanding their needs and wants. However, they 150 cannot satisfy all consumers in a one particular market. Consumers are different, they have different kinds of needs which are too many for the marketer to manage. Thus, each company must divide up the total market into different groups of " buyers with different needs, characteristics, or behavior. This is call market นั้น segmentation. Each group requires different products or marketing mix. The ษา เท่า company needs to evaluate the attractiveness of each market segment and select one or more segment to enter, this is called market targeting. After that, the กา รศ ึก company must decide what positions it wants the product to occupy in those segments, relative to competitors in consumers’ mind (in the aspect of price, quality, value, etc.) This is called marketing positioning. Most companies need to design เพื่อ strategies for market segments that company targets in the position that better than its competitors do. This process is called STP Analysis involves three steps: market ิทย าล ัยส วน ดุส ิต segmentation, market targeting, and market positioning. (Armstrong, Armstrong, & Kotler. 2007) Practice 3: Marketing Strategies Match the verbs on the left with the appropriate phrases on the right, based on หา ว the paragraph above. Write down letters (a – e) in front of the numbers (1-5). "ม 1. To accomplish… a. …appropriate strategies 2. To satisfy… b. …in those segments 3. To enter… c. …consumers’ needs 4. To occupy… d. …the objective 5. To design… e. …new market segment 151 Practice 4: Adjectives versus Adverbs A. Complete each sentence below by choosing the word chosen from the heavily late slightly well successful normally lately generous rapidly ษา เท่า นั้น hard " following list. 1. Our bicycle in the shop is so __________ that we are _____________ running กา รศ ึก out of stock. 2. ___________, we invest ____________ at this time of year. เพื่อ 3. Profits have only ____________ increased; therefore we have had to consider cutting back on the next investment project. ิทย าล ัยส วน ดุส ิต 4. __________ , Thomas has been arriving ___________ at every company meeting. 5. Last year, the financial department performed ___________, the profit has reached the peak so we have given all the staffs a ___________ bonus. 6. Jimmy worked so __________ that he fell asleep on his chair. หา ว B. Look at the following sentence taken from the reading passage: "ม ‘In a truly great marketing organization . . .’ The underlined phrase that showed in the sentence above comprises of adverb (truly) and adjective (great). This commonly uses because it describe the situation clearly. Let do the exercise below. 152 Complete the sentences below by combining two adjectives from the complex tremendous different good radical sufficient unusual qualified commercial technical difficult นั้น oriented " following list: ษา เท่า 1. She’s very _________ ____________. I think she should pass the interview and get the job. กา รศ ึก 2. The computer application is _________ ______________. It’s too hard for me to understand it. เพื่อ 3. Normally this process is easy, but it has proved ________ _________ this time. 4. He’s ___________ ______________ but not ____________, so he’d probably ิทย าล ัยส วน ดุส ิต be a good technician but not a salesman. 5. The company policy is not ___________ _________ from last year. We will basically try to increase our sales and market share. Reading: Companies and Markets หา ว There is a relation between the company and the market. The word ‘market’ means group of people or organizations who buy particular goods or services, such "ม as the ‘computer market’, or ‘the market for hotel services’. In short, they form a market as a place to buy and sell. Students should get familiar with the expressions: enter/penetrates abandons/get out of/ leave dominate, corners/monopolize drive another company out. 153 For examples: If a company enters/penetrates a market, it starts selling there for the first time. " If a company abandons/gets out of/ leaves a market, it stops selling there. นั้น If a company dominates a market, it is the most important company selling ษา เท่า there. If a company corners/ monopolizes a market, it is the only company selling กา รศ ึก there. If a company drives another company out of a market, it makes the other เพื่อ company leave this market, because it cannot compete any longer. (Mascull. 2002) ิทย าล ัยส วน ดุส ิต Practice 5: Companies and Markets Read the text ‘Companies and Markets’ again and complete the sentences below, use the correct form of the words in brackets to complete the sentences. 1. Korean films do not export well: Korean moves barely _________________ หา ว (corner/abandon/penetrate) the US market. "ม 2. Nowadays, film cameras almost_________________ (enter/corner/leave) the amateur photography market, until then ___________________ (penetrate/ abandon/dominate) by digital cameras. 3. The Pearly Sisters tried to fix pearl prices and to ____________ (corner/enter/ leave) the pearl market, ____________ (drive out/enter/monopolize) all competitors. 154 4. In the 1940s, MGM _____________ (abandon/monopolize/get out of) the market on film musicals. However, Warner Bros had also started buying film rights to musicals by the late 1950s. ษา เท่า Practice 6: Word combinations with ‘market’ นั้น " (Mascull. 2002) A. Fill in the blank with the word combinations with ‘market’ which is often use กา รศ ึก – market segment, market growth, market leader, market segmentation, and market share. was incredible. เพื่อ 1. In the early 2000s, social media use was doubling every 100 days. ______________ ิทย าล ัยส วน ดุส ิต 2. Women are an interesting target for the Toyota VIOS. They are obviously an important ______________for Toyota. 3. The computer company divides the market of computer notebook into large companies, small companies, and home office users. This is its _______________. 4. Among convenience stores, Seven-eleven sells more than any of the other similar หา ว stores. It has the highest ______________. 5. Apple iPhone is the ______________ among smart phone markets as it sells more "ม than any of the other competitive brands. B. Replace the underlined expressions with word combinations found in the text above. I’m Karen and I’m marketing manager for Dao Coffee in a country called Noblemarket. In this market, we (1) sell more than any other fresh brew coffee. In fact, we (2) have 55 percent of the market 155 (3) Sales are increasing at eight to nine percent per year. There are two main (4) groups of users; those who drink coffee in coffee shops, cafes and restaurants, and those who buy instant coffee to drink at office or home. Of course, many users " belong to both groups, but this is our (5) way of dividing our consumers. นั้น (1) are the ______________________ ษา เท่า (2) have a 55% __________________ (3) _____________________ is กา รศ ึก (4) _____________________ ิทย าล ัยส วน ดุส ิต Reading: Competition (Mascull. 2002) เพื่อ (5) _____________________ To begin with, competition is the situation in which the company is trying to be more successful than someone else. There are many related terms as follows. Competitors and competition Competitors or rivals are those companies or products in the same market competing with each other to sell more and gain more market share in order to be หา ว more successful, etc. In a market, the most significant companies are often referred "ม to as key players. Competition is about the activity of trying to sell more and be more successful. When there is a strong competition, that market is stiff, intense, fierce or tough. If the market is weak, it may be described as low-key. The competition refers to all the products, or companies competing in the same situation, or market. 156 Mass markets and niches Mass market is the market that produces goods to sell in large quantities. For example, family cars such as Toyota, Honda, Nissan, are a mass market product. ษา เท่า Lamborghini are a niche in the car industry. นั้น which may be profitable to sell to. For example, sports cars, like Ferrari or " In contrast, a niche or niche market is a small group of buyers with special needs, (Mascull. 2002) กา รศ ึก Practice 7: Competition Read this description of an English language schools in ‘Successland’ and draw answer the questions below. เพื่อ a diagram to describe the situation of English language school market. Then, ิทย าล ัยส วน ดุส ิต “In ‘Successland’, there are 105 English language schools. However, 90 percent of sales are made by the top five English language schools. The size of overall market is not growing. School A has 35 percent of the market, and faces tough competition from school B, which has about 25 percent of the market, and from school C, school D, and school E, who each have 10 percent, but trying to grow in this market by "ม หา ว charging less for their courses.” 157 1. How many competitors are there in this market? ________________________________________________________________ " 2. Is this market having strong competition? นั้น ________________________________________________________________ ษา เท่า 3. Which school is the market leader? ________________________________________________________________ กา รศ ึก 4. Which schools are the two key players? ________________________________________________________________ competition? เพื่อ 5. From the point of view of market leader, which school mainly makes up the ________________________________________________________________ ิทย าล ัยส วน ดุส ิต 6. In the case that one competitor increases its market share; can other schools keep their market share at the same level? ________________________________________________________________ หา ว Reading: Product-market Strategies Another strategy that most companies use is the decision made about its "ม target markets and its products. This is called ‘Product-market strategy’; it represents a decision about the current and future direction of the organization. The following is the useful device for identifying market opportunities – product/market expansion grid, which can help illustrate the strategy. 158 new products exitsting market market penetration product development new market market development diversitfication กา รศ ึก ษา เท่า นั้น " existing products เพื่อ Figure 8.2: Product-market Expansion Grid ิทย าล ัยส วน ดุส ิต Practice 8: Product-market Strategies A. Study figure 8.2 and fill in the blanks with the appropriate topics of each definition. 1) ______________________ - making more sales to same group of customers or same market without changing products in any way. 2) ______________________ - developing new markets for its current products. หา ว 3) ______________________ - combining different products into one package or it "ม could start up a new business or buy businesses outside of its current products and markets. 4) ______________________ - offering modified or new products to current markets. (Kotler, & Armstrong. 2001) 159 B. Match the examples of each product-market strategy with the correct type of each strategy below. นั้น " Product range extension กา รศ ึก ษา เท่า Market penetration Product development ิทย าล ัยส วน ดุส ิต เพื่อ Market development Example 1: Suan Dusit Place Hotel opened up a new market by offering ‘Thai Massage and Spa Service’ in its hotels. Example 2: Pizza Pizza’s marketing strategy is to increase consumption of its pizza. This product was traditionally Italian food, but Pizza Pizza’s successfully promoted หา ว the idea of Thai style pizza, such as Tom-yum pizza, Ka-praw Moo pizza, as a suitable "ม Thai purchase. The product aims at the concepts of Thai taste for Thai markets. Example 3: A breakfast cereal manufacturer “Nestle” brought out a new ‘whole grain’ pack to appeal to health-concern customers who liked the freedom of choosing a new healthy cereal each morning. 160 Example 4: Manufacturers of wrist watches soon combined the watch function with a steps-count component. This not only attracted health-lover customers who liked " the novelty of the idea, but seriously threatened the traditional wrist watch market. นั้น Summary ษา เท่า This unit presented the idea of various marketing strategies, especially in the areas of STP analysis, SWOT analysis, and Product-market strategies. These strategies กา รศ ึก would be helpful to analyze when reading different marketing case studies in the Review Questions เพื่อ future. ิทย าล ัยส วน ดุส ิต 1. What are the elements of STP analysis? 2. What is ‘market positioning’? 3. What is the difference between ‘market leader’ and ‘market follower’? 4. What are the relations between ‘company’ and ‘market’? 5. What is the effect of competition against the company? หา ว 6. What is the difference between ‘mass market’ and ‘niche market’? 7. What does ‘market leader’ mean? "ม 8. What does ‘market challenger’ mean? 9. What are the elements of product-market strategy? 10. In product-market expansion grid, what does ‘diversification’ mean? 161 References Armstrong, G. M., Armstrong, G., & Kotler, P. (2007). Marketing: an introduction. NJ: " Pearson Prentice Hall. นั้น Bennett, D. (1995). Dictionary of marketing terms. VA: NTC Business Books. ษา เท่า Cambridge Dictionary Online. (2013). Cited 2013 April 23. Available from: http://dictionary.cambridge.org/dictionary/business-english/profit_1?q=profit. กา รศ ึก Kotler, P. & Armstrong, G. A. (2001). Principles of marketing: activebook version 1.0. NJ: Prentice Hall. "ม หา ว ิทย าล ัยส วน ดุส ิต เพื่อ Mascull, B. (2002). Business vocabulary in use. Cambridge: Cambridge University. "ม ิทย าล ัยส วน ดุส ิต หา ว เพื่อ นั้น ษา เท่า กา รศ ึก " 162 163 “Adverb of frequency chart” (2012). Cited 2012 May 28. Available from: " Bibliography นั้น http://www.woodwardenglish.com/adverbs-of-frequency-chart/. Cited 2015 http://justaroundthecorner.net.au/. June 25. Available from: กา รศ ึก solutions” ษา เท่า AMS Direct Marketing Solutions. (2015). “Multichannel marketing and communication Pearson Prentice Hall. เพื่อ Armstrong, G. M., Armstrong, G., & Kotler, P. (2007). Marketing: an introduction. NJ: Auta5p. (2004). “Ford focus 1.6 comfort” Cited 2015 May 5. Available from: ิทย าล ัยส วน ดุส ิต http://auta5p.eu/zkusenosti/ford_focus_2/focus.php. Beaumont, D. & Granger, C. (1992). The Heinemann ELT English grammar. London: Macmillan-Heinemann Bennett, D. (1995). Dictionary of marketing terms. VA: NTC Business Books. “Building Vocabulary: Using Context Clues to Learn Word Meaning” (2008). Cited http://www.oknation.net/blog/ หา ว 2013 January 25. Available from: print.php?id=203449. "ม Burnett, S. (1994). cited in Kotler, P. & Armstrong, G. (1994). Principles of marketing. 6th Edition. London: Prentice-Hall International Business Case Studies LLP. (2015). “Balancing the marketing mix through creative and innovative strategies” Cited 2015 April 25. Available from http://businesscasestudies.co.uk/kelloggs/balancing-the-marketing-mix- 164 through-creative-and-innovative-strategies/#teaching-resources on May 6, 2016 Caradvice. (2015). “Honda jazz vibe” Cited 2015 May 5. Available from: นั้น http://dictionary.cambridge.org/dictionary/business-english/profit_1?q=profit " “Cambridge Dictionary Online” (2013). Cited 2013 April 23. Available from: ษา เท่า http://www.caradvice.com.au/213750/honda-jazz-vibe-japan-sourced-specialeditions-return/photos/. กา รศ ึก Columbia College. (2011). “Finding main idea” Cited 2011 September 12. Available from: http://www.ccis.edu/ writingcenter/studyskills/mainidea.html. เพื่อ David Packard. (n.d.). BrainyQuote.com. Cited 2012 November 21. Available from: BrainyQuote.com Web site: http://www.brainyquote.com/quotes/quotes/d/ davidpacka191099.html ิทย าล ัยส วน ดุส ิต Dipple & Conway. (2015). “Ray-Ban” Cited 2015 May 5. Available from: http://www.rbeusa.co/. Drucker, P. F. (1994). Managing for results. NY: Harper and Row. Farrall, C. & Lindsley, M. (2008). Professional English in use: Marketing. Oxford: Cambridge University. หา ว Fiveash, K. (2015). “Dell rebrands Dell to Dell Technologies, Dell EMC, and Dell” "ม Cited 2015 May 5. Available from: http://arstechnica.com/business/2016/05/dell-rebrands-dell-to-delltechnologies-and-dell/. Goi, C. L. (2009. May). “A review of marketing mix: 4 Ps or more?” International Journal of Marketing Studies. 1 (1). 165 Goodlogo.com. (2010). “Lego logo” Cited 2015 May 5. Available from: https://goodlogo.com/extended.info/lego-logo-2462. Gore, S. (2007). English for marketing & advertising. Oxford: Oxford University Press. นั้น http://logoshistory.blogspot.com/2011/03/all-nestle-logos.html. " History of All Logos. (2010). “All Nestle logos” Cited 2013 April 23. Available from: ษา เท่า Honest Digital T/A The Honest Agency. (2015). “What makes a good logo?” Cited 2015 May 5. Available from: http://thehonest.agency/what-makes-a-good- กา รศ ึก logo/. Ibbotson, M. & Stephens, B. (2006). Business Start-up 2: Student’s Book. UK: Cambridge เพื่อ Jeffries, L. & Mikulecky, B. (2009). Reading power 1. White Plains, NY: Longman. ิทย าล ัยส วน ดุส ิต Kotler, P. & Armstrong, G. (1990). Marketing: an introduction, Second Edition, Englewood Cliffs: Prentice Hall. Kotler, P. & Armstrong, G. (2001). Principles of marketing. NJ: Prentice Hall. Kotler, P. (2002). Marketing management (Eleventh Edition). London: Prentice Hall. KrystalGrant.com (2012). “Coca-cola logo” Cited 2013 April 23. Available from: http://www.krystalgrant.com/2012/05/07/wedding-vows-and-coca-cola/coca- หา ว cola-logo/. "ม Lamb, C. W., Hair, J. F., McDaniel, C. (2009). Essentials of marketing. USA: Cengage Learning. Li, B. & Kim T. S. (1995). Modern certificate guides: certificate commerce. Oxford: Oxford University Press. Logok. (2015). “Evian logo” Cited 2015 May 5. Available from: http://logok.org/evianlogo/. 166 Mackenzie, I. (1995). Financial English. Cambridge: Language Teaching Publications. Mackenzie, I. (2002). English for business studies. Cambridge: Cambridge University. ษา เท่า McCarthy, E. J. & Perreault, W. D. (1993), Basic Marketing. Homewood: Irwin. นั้น Mazur, P. (2009). cited in Jain, A. (2009). Principles of marketing. New Delhi: J.N. Printers. " Mascull, B. (2002). Business vocabulary in use. Cambridge: Cambridge University. Packard, D. (n.d.). “BrainyQuote.com”. Cited 2012 November 21. Available from: http://www.brainyquote.com/quotes/quotes/d/davidpacka191099.html http://www.planetoftunes.com/project- กา รศ ึก Planet of-tunes. (1999). “Trademarks” Cited 2013 April 23. Available from: เพื่อ management/copyright/trademarks.html#.V29IyI9OKIU. ProProfs Quiz Maker. (2015). “Which Disney character are you?” Cited 2015 May 5. ิทย าล ัยส วน ดุส ิต Avialble from: http://www.proprofs.com/quiz-school/story.php?title=whichdisney-character-are-you_7. Stillman, D. M. & Gordon, R. L. (1983). English for banking and finance. Singapore: McGraw-Hill. Swiss watch brands. (2015). “Top Swiss watch brands” Cited 2015 April 23. Available หา ว from: http://swiss-watch-brands.com/. The Irish Times. (2015). “Buying into direct selling for extra cash” Cited 2015 June 25. "ม Available from: http://www.irishtimes.com/business/personal-finance/buyinginto-direct-selling-for-extra-cash-1.2397663. Tullis, G. & Trappe, T. (2004). New insights into business. London: Longman. Wikipedia, The Free Encyclopedia. (2015). “Uniqlo” Cited 2015 May 25. Available from: https://en.wikipedia.org/wiki/Uniqlo.
