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Research is the basic too! of marketing. A marketer must determine what customer needs are. Marketing experts have developed techniques for determining the needs of prospective customers. It's done by way of market segmentation.
How can market segmentation be of help to a manager who wants to develop a new product? Every market can be divided into segments or, in other words, into separate groups of consumers. First mere are demographic factors like age, income, educational background, occupation, size of family, type of home and neighborhood, etc. Then mere are psychographic factors - me customer's opinions and interests, hobbies, vacation sports, favorite sports, etc.
Then a product is compared with the goods already established in the market by quality and quantity standards. To be a success you must be ahead of your competitors.
Competition never stops. That is why market segmentation must never stop as well. It should be on a permanent bases
In introduction of a pioneer product can immediately change the composition and number of a consumer grouping.
The fundamental principles for a marketer are:
1. understand the customer (through research)
2. understand the grouping (to which me customer or his business belongs)
3. create a choice (a difference in price, concept or value that will distinguish your product)
4. communicate that choice (through promotion and advertising).
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