11.

Marketing

I. Introduction to the topic

Marketing and advertising: the difference

Marketing
Marketing is the creative process of satisfying customer needs profitably. It deals with the
following areas: advertising, after sales service, design, delivery and distribution, packaging
and presentation, pricing, promotion, research, quality control and assurance and testing.
The marketing concept requires an organisation to be consumer-orientated and to have an
integrated marketing strategy. The marketing mix depends on a number of decisions with
regard to four major variables (the four P-s):
- product (the product should be appropriate for the market segment it is sold in)
- place (the product should be available through the most cost-effective channels of
distribution)
- promotion (the product is presented to customers through advertising, packaging,
publicity, public relations and personal selling)
- price (the product must be priced so that it competes effectively with rival products in
the same market)


Advertising
Advertising is an important element of marketing which is directed at a target audience. It
reaches potential customers through several media print media, outdoor displays
(billboards, neon signs), radio, TV, cinema, the Internet, direct mail. There are three types of
advertising: consumer advertising, trade advertising and industrial advertising.

Arguments for advertising
it informs the public about products and services
it influences the decision to purchase a good by allowing the consumer to make a
more informed choice
it plays an important role in creating new needs

Arguments against advertising
it increases costs and as a result, price
it forces customers to buy products children are especially sensitive to advertising
messages
it can be deceptive

Banned advertisements
There are certain products the advertising of which is restricted or banned. These products,
like cigarettes and alcohol, have an unhealthy and harmful impact on people, especially on
children.

Advertising techniques
Some of the most popular techniques of persuasive advertising are: repetition of a slogan,
endorsement, comparison of rival products, presenting scientific authority, making special
offers and using emotional appeal.


Vocabulary exercises based on the introductory text


A. Match each item in the left-hand column with one similar in meaning from the
list opposite


1. cost-effective a. attracting public attention to a product

2. publicity b.yielding satisfactory profit

3. public relations c. competing

4. rival d. activity aimed at giving a company an attractive image

5. direct mail e. easily influenced

6. consumer advertising f. marketing activity targeting producers

7. trade advertising g. product advertising featuring a famous person

8. industrial advertising h. marketing activity targeting customers

9. sensitive i. advertisements sent through the post

10. endorsement j. marketing activity targeting wholesalers and retailers


B. For each item listed below, find in the text a word or phrase given in bold that is
similar in meaning
1. designing of wrappers/containers in which products are sold
2. collecting of information (about potential demand)
3. checking of standards (two words)
4. suitable
5. part of the market, a specific category of customers (two words) ...
6. potential customers aimed at (two words) ...
7. information channels
8. misleading
9. having the power to influence others
10. presenting a product in relation to another one ..

II. Hungarian text
Exercise 1
Cover the English words and expressions given on the right and try to guess the English equivalents
of the underlined parts of the Hungarian text..

Exercise 2
After checking your guesses against the equivalents listed on the right, give an oral summary of the
text in English.

Kiengedik a szellemet a palackbl?
Vilggazdasg 2006. szeptember



Szerepelhet-e
1
mrks plban
2
a msorvezet
3
a televzi kpernyjn? Mutathatja-e a
kamera, hogy milyen autval rkeznek a sztrok egy-egy televzis felvtelre
4
? Ma mg
klnbz vlaszokat adnak az Eurpai Uni tagllamaiban a fenti krdsekre. Az Eurpai
Bizottsg olyan j javaslatot kszt el, amely egysgesten
5
a televzis hirdetsekre
6

vonatkoz szablyokat
7
.

Az eurobrokratk
8
azt tekintik
9
az egyik legfontosabb krdsnek, hogy miknt
szablyozhat
10
a reklmidn kvli
11
televzis reklm. A mdiban termkelhelyezsnek
12

nevezett hirdetsi forma
13
ugyanis a cgek vlasza arra a jelensgre
14
, hogy cskken a
reklmok nzettsge
15
s hatkonysga
16
. Az internet trnyerse
17
ugyanis jabb felletet
jelent a hirdetknek,
18
a digitlis televzizs pedig lehetv teszi, hogy a nz maga dntsn,
nz-e reklmot, vagy sem.
A kszl unis javaslat nem nveln az rnknti reklmidt, az tovbbra is egysgesen
19

tizenkt perc maradna, de enyhten
20
a reklmblokkokon
21
kvli termkelhelyezsre
vonatkoz szablyokat. A javaslat kvetn az Egyeslt llamokban bevett gyakorlatot
22
,
miszerint a hr s gyermekmsorok
23
kivtelvel nem kzvetlen gazdasgi cllal
24

bemutathatk
25
a mrkk. Mikzben a hirdetk s a mdiacgek a szablyozs liberalizlsa
mellett rvelnek
26
, a brit kzszolglati mdium,
27
a BBC kpviselje
28
agglyait fogalmazta

1
appear
2
branded T-shirt
3
presenter
4
recording session
5
unify
6
television commercials
7
regulations
8
eurobureaucrats
9
consider
10
capable of being regulated
11
non-commercial airtime
12
product positioning
13
form of advertising
14
phenomenon/trend
15
viewership
16
efficiency
17
increased use of the Internet
18
advertisers
19
uniformly
20
relax
21
commercial spots
22
generally accepted practice
23
news and childrens programmes
24
with a direct economic purpose
25
can be presented
26
argue for
27
public service medium
28
representative
meg,
29
mondvn, ha kiengedik a szellemet a palackbl, vagyis ha mindent elnthetnek a
hirdetsek, a msorok tartalmt nem az jsgrk
30
, hanem a hirdetk fogjk alaktani
31
.

Magyarorszgon egyelre minden vdjegy
32
bemutatsa burkolt reklmnak
33
minsl. A
kereskedelmi csatornk nzi
34
gyakran tallkozhatnak azzal a jelensggel, hogy a jl
felismerhet mrkkat
35
kitakarjk
36
a trsasgok. Sarkadi Ildik jogsz
37
szerint azrt van
szksg erre, mert a mdiahatsg
38
szigoran bnteti
39
a direkt reklmnak minstett
termkelhelyezst. Kolosi Pter, az RTL Klub programigazgatja
40
arra hvja fel a
figyelmet, hogy a reklm finanszrozza
41
a televzizst. Ha cskken a hirdetsek
hatkonysga, akkor vagy j reklmozsi formkat kell keresnik a cgeknek, vagy a
nzkkel kell megfizettetni a tvzst.
1878 n

III. English text
The next big thing

The Economist, 4 October 2007

1. ADVERTISING on mobile phones is a tiny business. Last year spending on mobile ads
was $871m worldwide according to Informa Telecoms & Media, a research firm, compared
with $24 billion spent on Internet advertising and $450 billion spent on all advertising. But
marketing wizards are euphoric about it. It is destined, some say, to supplant not only Internet
advertising, the latest fad, but also television, radio, print and billboards, the four traditional
pillars of the business.
2. At the moment, most mobile advertising takes the form of text messages. But telecoms
firms are also beginning to deliver ads to handsets alongside video clips, web pages, and
music and game downloads, through mobiles that are nifty enough to permit such things.
Informa forecasts that annual expenditure will reach $11.4 billion by 2011.
3. The 2.5 billion mobile phones around the world can potentially reach a much bigger
audience than the planet's billion or so personal computers. The number of mobile phones in
use is also growing much faster than the number of computers, especially in poorer countries.
Better yet, most people carry their mobile with them everywheresomething that cannot be
said of television or computers.
4. Yet the biggest selling point of mobile ads is what marketing types call relevance.
Advertisers believe that about half of all traditional advertising does not reach the right
audience. Less effort and money is wasted with online advertising: half of it is sold on a pay-
per-click basis, which means advertisers pay only when consumers click on an ad. But
mobile advertising through text messages is the most focused: if marketers use mobile firms'

29
expressed concern
30
journalists
31
form/shape
32
trademark
33
hidden advertising
34
viewers of commercial channels
35
easily recognisable brands
36
cover
37
lawyer
38
media authority
39
strictly penalises
40
programme manager
41
finances
profiles of their customers cleverly enough, they can tailor their advertisements to match
each subscriber's habits.
5. But there are some problems. While consumers are used to ads on television and radio,
they consider their mobiles a more personal device. A flood of advertising might offend its
audience, and thus undermine its own value.
1691n

Important terms

mobile ads advertising sent to mobile phones

text messages text as opposed to conversation used for communicating
between 2 mobile phones (also referred to as SMS - short
message service)

telecoms firms companies that deal with telecommunications (telephone,
Internet, TV, etc.)

handset mobile phone

relevance appropriateness to the target audience

customer profile information about the wants and needs of customers



Extended vocabulary

euphoric: very excited, enthusiastic
supplant: replace one thing with another
the latest fad: the most recent fashion / craze, unlikely to last long
nifty: clever
tailor (their ads): create or adapt (for a particular person/audience), adjust
undermine: (here) reduce


Comprehension questions


1. In terms of money spent, how does mobile advertising compare with Internet advertising?



2. How much money is spent in total on all advertising?



3. What sort of future do marketing enthusiasts predict in mobile advertising?



4. What are the four pillars of advertising referred to?



5. Currently, what is the main form that mobile advertising takes?



6. What other forms of mobile advertising are marketers starting to use?



7. How much do analysts predict will be spent on mobile advertising by 2011?



8. What are the main advantages that mobile phones have over computers?



9. What is meant by advertising relevance?



10. What might be a possible downside to mobile advertising?


IV. Discussion questions


A. Discussion questions related to the text

1. What is your opinion about mobile phone advertising do you think it will replace internet
advertising and all the other forms of advertising (TV, radio, print, billboards), is will it be just a
passing fad? What do you think are the greatest benefits mobile advertising brings to the customer?

2. Do you think mobile phone advertising is an invasion of personal privacy that users will be
offended by? Give reasons for your answer. How can users private space be protected from
marketers?

3. Do you think it is ethical for marketers to use the information (profiles) that mobile companies
have compiled about their customers to create ads that match each subscribers habits?


B. Additional discussion questions

1. What is your opinion about advertising in general does it perform a useful function in
society or does it only encourage people to buy things they dont need?

2. Do you think certain advertisements should be banned? If so, on what basis should they be
banned?

3. What are the advantages of online advertising over conventional methods like direct mail
and promotions?


V. Role-playing exercises

21. Promotional strategies

Student:
You are an advertising agency with a good reputation for promoting brands and increasing
consumer awareness. A sports shoe manufacturer has contacted you and asked for
suggestions for a campaign to promote their brand. You are aware that they have a budget
of HUF 700,000.

Examiner:
You work in the marketing department of a sports shoe manufacturer. You have contacted
an advertising agency and asked for suggestions for a campaign to promote your brand.
You want to run a campaign within a budget of HUF 700,000.



22. Hiring a new CEO: from inside the company or outside?

Student:
You are the chairman of the board of a company that needs to hire a new CEO. Will you
select the number-two man (president) to succeed the number-one executive (CEO), or will
you go outside the company? Your shareholders want to hear what your views are about the
advantages and disadvantages of hiring from inside the company.


Examiner:
You are a shareholder of a company that needs to hire a new CEO. At the shareholders
meeting, you want to hear what the chairman of the board thinks are the advantages and
disadvantages of hiring from inside the company.