19 - The marketing mix - price and product Flashcards
Define marketing mix
the four key decisions on product, price, promotion and place that must be taken to enable the effective marketing of a product
Define Goods
products which have a physical existence
Define services
products which have no physical existence, but satisfy consumer needs in other ways
Define brand
an identifying symbol, name, image or trademark that distinguishes a product from its competitors
Define intangible attributes
the subjective opnions of customers about a product, which cannot be measured or compared easily
Define tangible attributes
the measurable features of a product, which can be easily compared with other products
Define New product development (NPD)
the design, creation and marketing of new goods and services
Define Unique selling point
the special feature of a product that makes it different from competitors’ products
Define product differentiation
the unique qualities of a product that lead to a difference between the product and competitors’ products
Define product positioning
consumers’ view of a product or service as compared to its competitors
Define Product portfolio analysis
analysing the range of existing products of a business to help allocate resources effectively between them
Define Product life cycle
the pattern of sales for a product from launch to withdrawal from the market
Define consumer durable
a manufactured product that can be re-used and is expected to have a reasonably long life, such as a car or washing machine
Define extension strategy
a marketing plan to extend the maturity stage of the product before a completely new one is launched
Define Boston matrix
a method of analysing the product portfolio of a business in terms of market share and market growth
Define mark-up pricing
adding a fixed mark-up for profit to the unit cost of buying in product
Define cost-plus pricing
setting a price by calculating a total unit cost for the product and then adding a fixed profit mark-up
Define contribution-cost pricing
setting prices based on the variable costs of making a product, in order to make a contribution towards fixed costs and profit
Define competitive pricing
making pricing decisions based on the price set by competitors
Define price discrimination
charging different groups of consumers different prices for the same good or service
Define dynamic pricing
offering products at a price that changes according to the level of demand and the customer’s ability to pay
Define penetration pricing
setting a relatively low price to achieve a high volume of sales
Define market skimming
setting a high price for a new product when a firm has a unique or highly differentiated product with low price elasticity of demand
Define psychological pricing
setting a price at a level which matches consumers’ views about a product’s perceived value
