19. Glossary Flashcards
Marketing mix
Definition
the four key decisions on product, price, promotion and place that must be taken to enable the effective marketing of a product.
Brand
Definition
an identifying symbol, name, image or trademark that distinguishes a product from its competitors.
Intangible attributes
Definition
the subjective opinions of customers about a product, which cannot be measured or compared easily.
Tangible attributes
Definition
the measurable features of a product, which can be easily compared with other products.
New product development
Definition
the design, creation and marketing of new goods and services.
Unique selling point (USP)
Definition
the special feature of a product that makes it different from competitors’ products.
Product differentiation
Definition
the unique qualities of a product that lead to a difference between the product and competitors’ products.
Product positioning
Definition
consumers’ view of a product or service as compared to its competitors.
Product portfolio analysis
Definition
analysing the range of existing products of a business to help allocate resources effectively between them.
Product life cycle
Definition
the pattern of sales for a product from launch to withdrawal from the market.
Consumer durable
Definition
manufactured product that can be re-used and is expected to have a reasonably long life, such as a car or washing machine.
Consumer durable
Definition
manufactured product that can be re-used and is expected to have a reasonably long life, such as a car or washing machine.
Extension strategy
Definition
marketing plan to extend the maturity stage of the product before a completely new one is launched.
Boston Matrix
Definition
method of analysing the product portfolio of a business in terms of market share and market growth.
Boston Matrix
Definition
method of analysing the product portfolio of a business in terms of market share and market growth.
Mark-up pricing
Definition
adding a fixed mark-up for profit to the unit cost of buying in a product.
Cost-plus pricing
Definition
setting a price by calculating a total unit cost for the product and then adding a fixed profit mark-up.
Contribution cost pricing
Definition
setting prices based on the variable costs of making a product, in order to make a contribution towards fixed costs and profit.
Competitive pricing
Definition
Dynamic pricing
Definition
offering products at a price that changes according to the level of demand and the customer’s ability to pay.
Price discrimination
Definition
charging different groups of consumers different prices for the same good or service.
Penetration pricing
Definition
setting a relatively low price to achieve a high volume of sales.
Price skimming
Definition
setting a high price for a new product when a firm has a unique or highly differentiated product with low price elasticity of demand.
Psychological pricing
Definition
setting a price at a level which matches consumers’ views about a product’s perceived value.
