4ps Flashcards
What are the 4 Ps of marketing
Product - the right goods and services
Price -at the right price
Place - where customers want it
Promotion - by providing the right sort of encouragement
Market definition
A place where a buyer and seller meet
Market research
the action or activity of gathering information about consumers needs and preferences.
Marketing
the action or business of promoting and selling products or services, including market research and advertising.
Primary research
Involves gathering new data that has not been collected before
More expensive but the only person to know it
Secondary research
Involves gathering existing data that has already been produced
Less expensive but easy for other companies to find aswell
Quantitive data
Measures the values or counts and are expressed as numbers
Qualitative data
Information about qualities
Cost based pricing
Price determined by using the whole say cost of an item as the basis for the price charged
Competitive pricing
Competitive pricing is setting the price of a product or service based on what the competition is charging. This pricing method is used more often by businesses selling similar products, since services can vary from business to business, while the attributes of a product remain similar.
Penetration pricing
A penetration pricing strategy is designed to capture market share by entering the market with a low price relative to the competition to attract buyers. The idea is that the business will be able to raise awareness and get people to try the product. Even though penetration pricing may initially create a loss for the company, the hope is that it will help to generate word-of-mouth and create awareness amid a crowded market category.
Premium pricing
Premium pricing strategy establishes a price higher than the competitors. It’s a strategy that can be effectively used when there is something unique about the product or when the product is first to market and the business has a distinct competitive advantage. Premium pricing can be a good strategy for companies entering the market with a new market and hoping to maximize revenue during the early stages of the product life cycle.
Economy pricing
Economy pricing is a familiar pricing strategy for organizations that include Wal-Mart, whose brand is based on this strategy. Aldi, a food store, is another example of economy pricing strategy. Companies take a very basic, low-cost approach to marketing–nothing fancy, just the bare minimum to keep prices low and attract a specific segment of the market that is very price sensitive.
Price skimming
Businesses that have a significant competitive advantage can enter the market with a price skimming strategy designed to gain maximum revenue advantage before other competitors begin offering similar products or product alternatives.
Psychological pricing
Psychological pricing strategy is commonly used by marketers in the prices they establish for their products. For instance, $99 is psychologically “less” in the minds of consumers than $100. It’s a minor distinction that can make a big difference.
