Advertising and promotion

Marketing

Marketing is the system promoting goods and services in order to get profit and to satisfy custome’s needs.

The marketing concept means that we must produce what customers want, but not what we want to produce.

The marketing MIX is the 5Ps. There are people, product, price, place and promotion.

The first P is people. People are out customers and their needs. We must put the customers wants.

The second P is product. The product is the goods or the service that you are marketing. A “total product” includes the image, design, quality, reliability, its features and benefits.

Life-cycle means stages the product appears the market than the comes the rise stages than retention stages than decline stages after which the product disappearance from the market.

The 3d P the price. Price means making it easy for the customer to buy the product.

Pricing takes account of the value of a product and its quality, the ability of the customer to pay, the volume of sales requires and the prices of the competition.

The 4^th P is place. Place means getting the product to the customer.

Retail products may go through various channels of distribution. For example from produce to market then to wholesalers then to retailer and then to end-users.

Each stage must add value to the product to justify the costs.

One principle behind this is “breaking down the bulk”: the producer may sell in minimum quantities of, say 10 000 to the wholesaler, who sells in minimum quantities of 100 to the retailer, who sells in minimum quantities of 1 to the end-user.

The 5^th P is promotion. Promotion means presenting the product to the customer.

Promotion involves the packaging and presentation of the product, its image, the product’s brand name, advertising and slogan, brochures, price list, after-sales service and training, trade exhibitions or fairs, public relations, publicity and personal selling.

Every product must possess a “unique selling proposition” (USP) – the features and benefits that make it unlike any other product in its market.

Marketing affects every aspect of a company’s operations. We must be aware of our firm’s strengths and weaknesses as well as the opportunities and threats we face in the market. This is SWOT analysis.

 

 

Bank and banking

Bank is an organization which provides financial services to physical and legal person.

Bank services are the following:

· Safeguarding deposits

· Providing a means of payment

· Electronic banking and other services

Safeguarding deposits. Money in a bank is safe. Bank keep cash in fireproof vaults and are insured against the loss of money in a robbery. The government also insures bank deposits protect people if the bank is unable to repay the funds.

           A bank is not only a safe place to keep money but also a profitable one. Money placed in a savings account earns interest at a specified annual rate.

Providing a means of payment. The next bank services are providing a means of payment. People who have money in a bank current account can pay bills by simply writing a cheque and posting it. Money held in deposit accounts can be transferred or withdrawn quite simply, but holders of these accounts do not have cheque books. Many banks also offer credit cards as a means of payment.

Electronic banking. Banks receive money from people who do not need it at the moment and lend in to those who do. Banks can safely loan or invest a large percentage of the funds deposited with them. In most countries, the government specifies the percentage of a bank’s funds that may be used for loans.

Like all businesses, banks try to make a profit. They do so by borrowing money from their depositors at one rate of interest and lending the funds at a higher rate.

The next bank services is Electronic banking, which is presented by the system called electronic funds transfers (EFT). EFT includes three types of facilities:

· Cash dispensers

· Automates clearing houses

· And point of sale terminals

Cash dispensers, also called automated teller machines, are computer terminals located everywhere. A customer inserts a special plastic card into the cash dispenser and uses the keyboard to enter a personal identification number (PIN). People can use the machine to withdrawcash up to a specified limited to transfer funds from one account to another and so one. With the help people can hour of the day or night, 7 days a week.

           Automated clearing houses are computer centers for the automatic deposit of regular income and the automatic payment of many bills, for example salaries, insurance premiums, mortgage instatments and soon.

           Point of sale terminals are computer terminals that operate in retail stores in many countries. To pay for purchase a customer gives the cashier an identification card, which the cashier puts into the terminal. Within seconds, the system transfers the amount of the stores account.

           Other services. Banks also provide other services such as trust services, safe deposit boxes and so on.

Banks differ in the services they provide and in how they are owned. They can be:

1. Commercial banks

2. Building societies

3. Saving banks

4. Credit unions

5. Investment banks

6. International banks

7. Central banks

Commercial banks offer a full range of services, including current and savings accounts, loans, and trust services. They serve both businesses and individuals.

Building societies have been the chief source of home mortgages.

Savings banks are banks where people can save their money. Laws ensure the safety of depositor’s money by limiting the investments such banks can make and by insuring the deposits.

Credit unions are usually working for the same company of living in one building. The members pool their savings. When one of them needs money he may borrow from the credit union.

Investment banks provide long-term loans and capital to industry. Central banks in every country are first and foremost banker to the government. They do not lend money to the general public. They control the money supply of the country. The central banks are usually responsible for the regulation of other banks.

           In all countries, the central bank receives as deposits all the government revenues and foreign reserves.

The central bank is responsible for the issuing of currency, and often for the design and printing of notes and the minting of coins.

Bank appears long time ago since then they have played the most important role in the world economy.

 

Advertising and promotion

The total demand for the goods or services offered byany small firm can be divided into established demandand newly created demand, sometimes called promoted demand.

Established demand is that volume of sales whichcomes without conscious outside promotion by the firm. People buy because they have had positive experiences with the firm's products, find the firm conveniently placed, or are attracted by the firm's appearance.

Newly created or promoted demand by contrast, is thevolume of sales that results from firm's engaging in various types of activities to draw people to the firm. Promoted demand customers, if pleased, can become established customers. Those firms that supplement established demand with promoted demand show much better salesvolume and profits.

All the activities that into the development of salescan be grouped. Advertising one of promotion methods.

Advertising can be defined as commercial messages to the public designed to inform potential and established customers and to encourage sales for the advertiser. Advertising can be either institutional (designed to sell the firm’s name) or direct- action (designed to sell the firm’s product or service).

Among the media generally used in advertising are: television, radio, newspapers, magazines, outdoor billboards, specialty advertising (distribution of such items as notebooks, pencils, calendars, blotters, gummed labels, telephone pads, shopping bags), public transportation, yellow pages, direct mail, other media (catalogues, samples, handouts, leaflets, etc.)

Whenever possible every advertising program undertaken should be checked for its effectiveness. Some of the ways the small firms can do this are:

1. Advertise one item in one ad only. By having no references to the item on the sales floor and then counting the calls and requests, ad results can be identified.

2. Place identical ads with identifying marks in two separate publications. The reader is asked to bring the ad to the firm to obtain a special price or prize. Count how many ads come in from each source.

3. Omit a regular advertising project for intermittent and watch for any change in sales.

4. Check sales results when a new advertisement is placed.

5. Publicity has always been described as advertising that is not paid for. It includes such things as public news items about the owner of the firm that tend to brighten the firm’s image or make friends for the business.