1.THE CENTRALITY OF MARKETING 1. Most management and marketing writers distinguish between selling and marketing.

The selling concept assumes that consumers have to be persuaded by hardselling techniques to buy non-essential goods or services. The marketing concept assumes that the producers task is to f ind wants and f ill them. In others words, as well as satisfying existing needs, marketers can also anticipate and create new ones.So you dont sell what you make, but sell what will be bought. The markets for the walkman, c.d., mountain bike,videogame, the internet, for example, were largely created rather than identif ied. 2. Marketers are always looking for market opportunities which are general ly isolated by market segmentation.Once a target market has been identif ied, a company has to decide what goods or service to offer. This means that much of the work of marketing has been done before the f inal product or service comes into existence and it has to be understood by all the company. The company must also take into account the existence of competitors, who always have to be identif ied, monitored and defeated in the search for loyal customers. 3. So, most companies undertake market research in GB or marketing research in US. They collect and analyse information about the size of a potential market, about consumers relations to a particular product or service features, and so on.Sales representatives are another important source of information. 4. The company has to think about the marketing mix. The best-know classif ication of these elements is the four Ps: product, place, promotion and price. Products include quality, features, style, size, services and so on. Place includes such factors as distribution channels, locations of points of sale, transport, etc. Promotion includes advertising, publicity, sales promotion, and personal selling. Price includes the basic list price, discounts, the length of the payment period, and so on.It is the job of a product manager to change the marketing mix. 5. Quite apart from a consumer market there exists a 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 supply of services to others. The producer market is actually larger than the consumer market. There is consequently more industrial than the consumer market.

2.The importance of market research What is Marketing Research? Marketing research can be defined as the process of gathering recording and analyzing the data related to certain products and services. This need for market research is derived from the concept that only by understanding the needs and wants of the target audience and by effectively meeting them, you will be able to achieve the organizational goals and surpass the competition in the specific market. Thus, arises the need to collect data about the customers, competitors, and other forces in the marketplace. This data in turn is collected and analyzed to make relevant marketing decisions, be it in relation to setting up a business, developing a product, creating a brand or coming up with an advertising campaign. While primary research seeks to understand customer motivations, opinions and needs through quantitative and qualitative field research, secondary market research uses already existing sources of information to gather the data. What is the Importance of Marketing Research? To Make Marketing Decisions: Marketing research helps the marketers to make a decision about the product or service. Sometimes a marketer might believe that the new product or service is useful for the customers. However, research may show that customers do not need a product or are meeting their needs with a certain competitor product and so on. Similarly good marketing research strives to provide options for the successful introduction of new products and services. This makes the market entry of a new product or service less risky. Survive the Competition: Marketing research helps in ascertaining and understanding competitor information such as their identity, marketing network, customer focus and scale of operations. This helps in surviving and in certain cases, even leaving behind the competition. Moreover, with market research you can also help understand the under-served consumer segments and consumer needs that have not been met. Helps to Decide Target Markets: Research helps provide customer information in terms of their location, age, buying behavior and gender. This helps the marketers zero in on the target markets and customers for their products and services. Maximize Profits: Apart from profit maximizing steps such as item optimization, customer profitability analysis, and price elasticity, marketing research allows you to find out methods that can help you maximize profits. For example, a product's price elasticity research can help you ascertain the

impact of an increased price on the sales and the profits of a product. This emphasis on profitability also helps the company's focus to shift from maximizing sales to increasing the profits of a company. This helps the company survive in the long run and maximize its profits. Increasing the Sales: Increasing the sales of your products or services helps a company in maximizing its profits. By understanding the customer's needs, wants and attitude towards the products and determining whether your products fit the bill, marketers can increase their sales. This helps in not only increasing the sales to the target customers and people already using the product but also converting the non users into customers for the product. 3.Ways of advertising Advertising persuades members of a particular market to take some form of action, such as buying a product or service. There are many ways to spread an advertising message. A good ad campaign incorporates several types of advertising to get maximum exposure.

Television Advertising
TV commercials are a popular way to mass-market messages to large audiences. Although this medium has the ability to reach a high number of potential buyers, it is also one of the most costly forms of advertising. For example, one 30-second TV commercial during the Super Bowl cost about $3 million in 2009. Infomercials are another form of television advertising. The infomercial is different than a commercial because it is longer, includes more product information, and has more of a personal tone. Although they are also costly to produce, infomercials are highly effective in creating impulse buys because of their demonstrative and persuasive nature.

Radio Advertising
Radio commercials are an effective way for businesses to target a group of people based on location or similar tastes. For example, a local night club seeking college student clientele would probably consider advertising on a local pop station. Likewise, a country and western bar would choose a local country station.

Print Advertising
Magazine and newspaper ads are another way to spread the word about a product or service. Print also offers the ability to target a specific audience

based on geography or common interests. Print advertising usually includes larger display ads, as well as classified advertising. The classifieds are typically very affordable, whereas display ads are a bit more pricey.

Online Advertising
Advertising online is an increasingly popular method for promoting a business. There are many forms of online advertising. Banner ads are image ads displayed on web pages. Google AdWords is another popular form of online advertising that matches an ad to an Internet user's search inquiry. Social network marketing has been the fastest-growing form of Internet advertising. This includes using sites like Facebook, Twitter, and LinkedIn to promote a product or service. Many social networks have advertising available, such as Facebook Ads.

Billboard Advertising
Billboard ads are large advertisements displayed on structures in public places. Most commonly, billboards are located along highways to target passing motorists. Another type of billboard advertising is a mobile banner or billboard. This can range from the signs seen at major sporting event arenas to billboard advertisements pasted on the sides of semi trailers.

In-Store Advertising
In-store advertising takes place within a retail store. For example, a company that produces a new cleaning product might include an end cap display when they ship the product to stores. This gives the store an attractive display that draws attention to the new product. Other types of in-store advertising include banners and display cases.

Word of Mouth Advertising

While some may argue that word of mouth is not advertising because it's free, this form of promotion is one of the most credible and priceless assets of any business. Even if business owners can't buy word of mouth advertising, they can encourage their customers to tell their friends and family about the great product or service they purchased.

Endorsements
Endorsement is similar to word of mouth promotion but typically does cost money. Having a product or service endorsed by a celebrity can increase sales and product awareness. Not every company can afford to have a major A-list celeb promoting a product, though. For smaller companies, consider using local

celebrities or well-known individuals within the product's niche market. For example, many equine companies look for professional horse trainers to endorse their products. 4.HOW COMPANIES ADVERTISE Advertising informs consumers about products and services and tries to persuade them to buy them.The best way of advertising is when people tell their friends about the benef its of products and services they have bought . But most providers use paid advertising. Although large companies could have their own advertising departments, they tend to use the services of large advertising agencies.These agencies have more knowledge about advertising than a single company. Besides ,the most talented advertising people preffer to work for agencies rather than individual companies, because this gives them the chance to work on advertising many different products and services. A company usually tells the advert ising company how much they want to spend, and what are the objectives of their advertising campaign. The agency creates advertisements (abbreviated to adverts or ads) and specifies which media will be used newspapers,magazines, television, cinema, poster etc. and in which proportions. Sometimes, before the final choice for a national campaign, they pre-test the advertisements in newspapers,television etc. The agencys media planners must decide what percentage of the target market they want to reach, and how many t imes the ads will be seen . For companies it is very difficult to decide how much to spend on advertising. Some spend as much as their competitors. Some spend a percentage of their sales revenues. Excessive advertising is counter-productive, because after too many exposures people stop noticing the ads, or they find them irritating. 5.Promoting a new product Companies have to develop good products or services,price them attractively,and make them accessible to their target costumers.According to classification the advertising is only one of 4 standart promotional tools:sales promotions,public relations,and personal selling.Instructions: 1.Package your product. The package should be simple in its design yet informative in its print to catch the attention of the perspective buyer at a first glance. 2.Put your product on the Internet. 3. Create a promotional video.. 4. Utilize trade show opportunities. 5.Create and distribute promotional flyers.

6.Spread the word. Word-of-mouth marketing is the most simple but often the most successful tool in promoting a product. 7.Stay positive. Promoting a new product can be tedious and challenging; if you believe in your product do not let an unsuccessful start discourage you from continuing your efforts.

6.PROMOTIONAL TOOLS Every product, even a very good one, will not sell by itself .Potential customers, distributors, dealers and retailers must be informed about the products existence, its features, its advantages.. To promote a product, marketers must decide which tools they should use advert ising, public relations, sales promotions etc. Public relations try to improve and protect the image of a company or product. Publicity (non paid mention of a product) is the most important element of public relations. Many companies try to place stories or information about a product or service in news media.Publicity can achieve more than advertising,because people usually read and believe publici ty more than advertising. Sales promotions such as free samples , price reductions, competitions, and so on, try to stimulate sales of a product. Free samples and advertising may generate the initial channel of a new product. The trial stage of the life cycle of a product may last many years. During this time marketers can try many promotional strategies. To attract price-conscious customers they can sell reduced-price packs in supermarkets.Sales promotions can also be aimed at distributors, dealers and retailers, to encourage them to stock new items,or to encourage off season buying, or to strengthen brand loyalty among retai lers. Personal selling is the most expensive promotional tool. Since a salesperson is often the only person from a company that costumers see, they are a very important medium of information.The majority of new product ideas come from customers via salespeople. 7.Market structure and competition

A market is a gathering of people for buying and selling, the place where they meet. According to the character of concluded contracts there are two types of markets: spot markets and futures markets. In the spot market you can buy or sell goods, currency or securities that are available for immediate delivery. Futures market means the buying and selling of these things for delivery at a future date for a price fixed in advance. We also can define several types of markets according to their function:

Commodity markets/exchanges Stock markets/exchanges Foreign exchange markets In most markets there is a definite market leader: the firm with the largest market share (thats a companys sales expressed as a percentage of a total market). This is often the first company to have entered the field, or at least the first to have succeeded in it. The market leader is frequently able to lead other firms in the introduction of new products, in price changes, in the level or intensity of promotions and so on. And despite the fact of being already the leader, very often these companies want to increase their market share even further, or at least to protect their current market share. One way of market expanding is to stimulate more usage, nowadays, for instance, for many families one TVset isnt enough. In many markets, there is often also a distinct market challenger, with the second-largest market share. Market challengers can either attempt to attack the leader, or to increase their market share by attacking various market followers who concentrate on market segmentation: finding a profitable niche (a small and specific market segment) in the market that is not satisfied by other goods or services and that offers growth potential or gives the company a differential advantage because of its specific competencies. Market followers present no threat to the leader.A market follower who doesnt establish its own niche is in a vulnerable position: if its product doesnt have a unique selling proposition there is no reason for anyone to buy it. Although small companies are generally flexible and can quickly respond to market conditions, their narrow range of customers causes problematic fluctuations in turnover (a businesss total sales revenue) and profit. Furthermore they are vulnerable in a recession when, largely for psychological reasons, distributors, retailers and customers all prefer to buy from big, well-known suppliers.

There are four main market structures with perfect competition at one extreme and pure monopoly at the other. Perfect competition exists when products are homogeneous, and there are many firms too small to have any influence on the market price, and firms can easily enter and exit the industry. And the situation where even one producer can affect the price of a good by increasing or withholding output is called imperfect competition. Monopolistic competition exists when many producers of slightly differentiated products are able to sell them at well above their marginal cost. A monopoly as a market in a particular product in which a single producer can fix an artificial price. The opposite situation, where there is only one buyer is described as monopsony. The situation where there are only a few sellers is called an oligopoly. This frequently arises in manufacturing industry because of economies of scale continuously declining unit costs as production increases and the cost barriers of entering an industry. The situation in which there are only a small number of relatively large buyers in the market is an oligopsony. One more barrier for new comers is cartel - where companies in the same industry collaborate by coordinating prices, sharing out markets, etc. In many countries this is illegal, under anti-trust laws. 8.Efficiency and employment Among the big social problems, like the growing gap between rich and poor, there is grpwing a new range of risks which cause social distress and exclusion. Unemployment and low pay are no longer considered the sole measures of inequality and lack of social well-being. Have rised the rate of new forms of casualized, temporary and contract forms of employment, even those on average incomes and above can become victims pf pressures beyond their control. More and more risk has accrued on workforces as succesive employment acts have reduced employee protection, companies being under the pressure of pension funds and insurance company shareholders. In this case companies can profitably manage their economical activity if they reduce their core staff to a minimum and hire adittional workers on temporary contracts, until the rough times will come. The risk is borne by their fluctuation labour force. (The famous example is of Burger King were young workers werw clocked only when customers appeared, which reduced their wages to a derisory level). The full-time workers which are qualifying only for tenure after 2 years, the recent hiring of them means little. Last 10 years the employment conditions have changed a lot and there appeared new options of employment, such as:

part-timers without any job security, contract workers, which have been selfemployed. Market testing, contacting-out, down-sizing and delayering are steadily tansfering workers in much less secure work paterns. Thats why the full-time tenured employment is becoming a minority form of work. 10.Profits and social responsibility In the 1920s, many large American corporations have began, on a wide scale to establish pension funds, employee stock ownership, life insurance schemes, unemployment compensation funds, limitations on working hours and high wages. Those corporations have built houses, churches,schools and libraries, provided medical and legal services and gave money to charities. In The Generous Corporation, Neil J. Mitchel argues that the reason for many of these actions was that large corporations had a legitimacy problem. In consequence, the corporations, introduced welfare capitalism as a way of creating favourable public opinion. Rational capitalists, starting with Henry Ford, realized that a better paid work force is more loyal, educated and more efficient. On the other side, pure free market theorists disapprove of welfare capitalism and they attempt to maximize their profits and ignore the social responsibility. Milton Friedman has critized them for being unbussinesslike and for that they threaten the survival of individual corporations, but also the general vitality of the capitalism. He argued that the responsibility of pure free markets is to make as much money as possible, while conforming to the basic rules of society and while this is legal and ethical. In John Galbraiths book The New Industrial State , business managers are made responsible of all groups of people with a stake in or a claim on the firm. These includes suppliers, customers, employees amd stockholders. A firm which is managed for the benefit of all its stockholders, will not pollute the areea around its factories, or close down a factory employing hundreds of people in a small town. Proponents of the stakeholders suggest that suppliers, customers, employees and stakeholders should be proudly represented on a companys board of directors.

11.The role of government The Government is responsible of a lot of tasks, to improve the comunity wellbeing. Such tasks are: -education -health care -housing -working conditions(working hours, child labour, minimum wages) -social security( unemployment and sikness benefits, old age pensions) -defence (army, navy, airforce) -the police, the justice system,prisons -public tansport (trains,buses) -traffic regulations( driving test, speed limits, seat belts, alcochol limit,safety of cars, parking restrictions,size and weight of lorries and trucks) -health, safety and cleanliness regualtions(concerning factories, shops,restaurants, food, medicine etc) -control of the sale of alcohol, drugs, guns -the press, broadcasting, the arts, entertainment, freedom of expresion 12.Two views of the role of government J.K.Galbraiths view: The good society accepts the basic market system and its managers, but there are some things which are the responsibility of the state. A very important responsability of the government is to provide good low-costing housing. He affirms that state doesnt concern about the badly housed or even homeless people. The healthcare system also ignores the poor people, not offering them the necessary care and assistance. The state has a range of another essential functions. Such services like parks and recreational facilities, police, libraries, the arts are more needed by the underclass than by the affluent. The market system invests for relatively short-run return, though this is the responsibility of the state. Even if the government doesnt accomplish all its tasks, still there were obtained some important industrial achievements in such fields like, agricultural productivity,modern air transport, advanced electronics. Investment in the long-run return interest the environment. Friedmans view:

Since the government has developed its role above the societys development it has brought the limitation of the economic freedom and it has also limited our human freedom. The economic freedom is limited by state in a very subtle way: more than 40 % of our income is disposed by government at federal, state and local levels combined. As consumers we are not even free to choose how to spend the part of income which is left after taxes, because our phisician is not free to prescribe many drugs for us that he may regard as the most effective for our ailments or we cannot buy a car without seat belts. Today you are not free to offer your services as a lawyer, a phisician, a dentist, a mortician, a plumber until you get a permit or a licence from a government official. You are not free to work overtime even if you and your employer agreed. People are also limited in freedom of setting up a bank,starting a taxicab business, selling electricity or telephone services without receiving a permission from a government official. Freedom cannot be absolute, because we live in an interdependent society, but the urgent need is to eliminate restrictions, not to add them 13.THEORIES FOR THE BUSINESS CYCLE Internal theories consider a business cycle self -generating,regular and indefinitely repeating. A peak is reached when people begin to consume less.Some theories suggest that a business cycle results f rompeople infecting one another with optimistic or pessimist expectation. When times are good and people feel good about the future,they spend more.When interest rates are high and people spend more on their mortgage ,they consume less. And if people think that they may lose their jobs, they save more. Investment depends on consumption, so as soon as demands stops growing, investment will drop.Another theory is that during every per iod of growth, employees will begin to demand higher salaries. As a result employers either reduce investment or lay off workers, and so a downswing will begin. External theories look for causes outside economic activity: scientific advances, natural disasters, elections or political shocks. Joseph Schumpeter believed that the business cycle is caused by important technological inventions: the steam engine, railways, cars, electr icity, microchips etc. 14.Protectionism and free trade A great part of economists sustain the comparative cost principle, which proposes that all nations ca raise their living standarts and real income if they

specialize in production of goods and services which can reach the highest productivity, thanks to different factors of production, like climate, division of labour, economies of scale... This theory explains why there is international trade between North and South( semiconductors going from USA to Brazil), but there is still a dilemma about the 75% of the exports of the advanced industrial countries is transfered to the similar advanced countries. Democratic governments often impose tariffs and quotas in order to protect what they see as strategic industries, like agriculture, in case if there were a war , the country would be out of danger.Other reasons to impose tariffs: -to make imports more expensive than home-produced substitutes, and in this way to reduce a payment deficit; -as a protection of dumping; - to counter-atack against restrictions imposed by other countries; -to protect infant industries until they grow and achieve economies of scale and compete internationally. With tarrifs it is imposible to know the quantity of imports, because prices might be elastic. With quotas, governments can limit the quantity of imports but they gain no revenue. The General Agreement of Tariffs and Trade( GATT) an international organization set up in 1947, which initially had the objectives to encourage the international trade, to make the tariffs the only form of protectionism and to reduce them as much as posible. Most developing countries opposed free trade, because wanted to industrialize in counteract by using the same comodity proces as the competitor. They practised import substitution and imposed high tariff bariers to protect their infant industries. Nowadays , many developing countries depend of International Monetary Fund, borrowing money for producing and providing services. Below the IMF pressure ,third world governments are aware of the huge exports of the Asian Tigers and of the colapse of the Soviet Union, being affraid to be excluded from the international trading system by the development of such trading blocks ,like European Union or NAFTA, both signed in early 90s. So those countries tend to liberalize their economies, lowering trade barriers and opening up to international trade. 15.Poluttion and market solution Nowadays is very actual the polution problem. The Chicago Board of Trade set up a market for sulphur dioxide. Polution rights or emission rights, long advocated by economists were endorsed in 1990. Southern Carolina became the first region which adopted the market aproach in buying and selling sulphur

dioxide allowances or credits. Businesses that develop technologies to reduce their emissions below required level, would acumulate credits and sell on open market to other companies which have not adopted them yet. The United Nations Conference on Trade and Development (UNCTAD) adopted a market aproach to combat the global warming, caused by carbon dioxide emissions from factories, power generators and cars. UNCTAD proposes to issue each company with a certain number of carbon dioxide credits a year, traded in bundles of 100. The number of the credits would be tightly controled by the Enviromental Protection Agency(EPA), and reduced over few years. Veronica Kun, a staff scientist in LA, affirms that limiting pollution rights to less damaging gases(nitrogen oxide) would also avoid the danger of building up polution hot spots. The number of credits owned by a company depends on how much it has reduced its emissions. In late 70s, when EPA first experimented with trading in emissions, appeared a lot of cheatings, such as selling rights based on a plant which was closed long time ago. Enviromental Action and Greenpeace strongly oppose to notion of polution as a property right and argue that the market-based aproach becomes a way to legitimize poluttion. By investing cheaply in industries in developing countries, a company from the industrialized country reduces pollution at home, but still polutes somewhere else. Developing countries are becominng international poluttion hot spots