Riassunti topics inglese

The 4 Ps of the marketing mix

The 4 Ps are:

Product. Deciding what to sell. The 3 aspects to any product are the core

• benefit (in-use benefit, psychological benefits), the tangible product (quality,

styling, brand name) and the augmented product (warranty, installation,

delivery)

Price. Deciding what prices to charge (related to the quality of the product).

• Premium (high price), mid-range (mid-priced), entry level (low price).

discounting

Place. Deciding how the product will be distributed and where people will buy

• it. There are many types of store such as chain store (shops that is part of a

group of shops), convenience store (open long hours), discounter (very low

prices), hypermarket (large shop with many goods).

Promotion. Deciding how the product will be supported with advertising.

•

Advertising

Advertising informs customers about the existence and benefits of products and

services, and attempts to persuade them to buy them. Most companies use

advertising agencies to produce their advertising for them. There are many

advertising mediums: radio and television commercials, billboards, hoardings,

coupons, advertisements in newspapers and magazines.

The best form of advertising has always been the word-of-mouth advertising:

people telling their friends about good products and services.

Promotional tools

Promotional tools are non-personal promotional efforts that are designed to have

an immediate impact on sales. Examples include:

Coupons. A coupon is a ticket or document that can be exchanged for a

• financial discount on a product. They are often distributed through mail,

magazines, newspapers, and the internet

Rebates. Consumers are offered money back if the receipt and barcode are

• mailed to the producer. They are heavily used for advertised sales in retail

stores in the US. Only a small percentage of people remember to mail the

coupons.

Contests/games. The consumer is automatically entered into the event by

• purchasing the product

Checkout dispensers. On checkout the customer is given a coupon based on

• products purchased

Free-standing insert (FSI). A coupon booklet (opuscolo) is inserted into the

• local newspaper for delivery

Necker. A coupon placed on the neck of a bottle

•

Sales promotions can be directed at either the customer, sales staff, or distribution

channel members (such as retailers).

Banks and financial institutions

A bank is an organization, usually a corporation, chartered by a state or federal

government, which does most or all of the following: receives deposits, and pays

interests on them; makes loans, and invests in securities, collects checks, drafts

and notes.

Different types of banks specialize in different lines of business:

Investment banks. They help organisations use investment markets (they

• help companies issuing stocks and bonds). Investment banks also consult on

mergers and acquisitions, among other things. Some large investment banks

also serve as commercial banks or retail banks (Italy)

Retail banks. They work with consumers and provide basic banking services

• to the general public, including checking and saving accounts, CDs

(Certificate of deposits), mortgages, loans, credit cards, safe deposit boxes

Commercial banks. They handle banking needs for large and small

• businesses, including basic accounts such as savings and checking, lending

money for real and capital purchases, lines of credit, foreign exchange

Online banks

•

Stocks and shares

If investors say they own stocks, they are generally referring to their overall

ownership in one or more companies. Technically, if someone say that they own

shares – the question then becomes – shares in what company?

A stock is a share in the ownership of a company. Stock represents a claim on the

company’s assets and earnings. As you acquire more stocks, your ownership stake

in the company becomes greater.

Whether you say shares, equity, or stock, it all means the same thing.

Stocks and shares are known collectively as securities.

Bonds

A bond is an interest-bearing certificate of debt, usually issued in series, by which

the issuer obligates itself to pay the principal amount at a specified time, usually 5

years or more after date of issue, and to pay interest periodically, usually

semiannually.

When a government or business needs to raise money, they may decide to issue a

bond. A bond is always issued with a certain face amount, also called the principal.

Every bond pays a certain rate of interest, and typically (but not always) that rate is

fixed over the life of the bond which is known as the bond’s maturity. The rate of

interest is a percentage of the face amount and is typically paid out twice a year.

In some cases, you can buy a bond directly from the issuer and sell it back directly

to the issuer, but in most cases bonds are bought and sold through a brokerage

house or a bank.

The stock market

The stock market is the place where stocks are bought and sold.