4Ps Flashcards
Price: Less Price Sensitivity
- less aware of substitutes
- purchase is small compared to buyer’s income
- Part of cost is borne by another party
- Prestige products
- Individual differences (tightwads and spendthrifts)
Price: beer experiment
- Identical consumption experience
- No atmosphere
- No strategic reason
Price: price discrimination
1st: buyer charged max WTP
2nd: less to who buys in bulk
3rd: different “classes” charged differently
Place: Intermediaries add value by
Reducing consumers’ search time
Price: types of surplus
- unrealized
- consumer
- producer
Promotion: goals
- Make customers aware of offering
- Make offering attractive to customers
Promotion: common misconception
Commercials < Advertising < Marketing Communication
Promotion: Creative brief
document with background info on the brand, category, target..
Promotion: Objective components
- time horizon
- target
- communication task
- effect wanted (desired change)
Product: definition
anything that can be offered to a market to satisfy a want or a need
Product: should be conceptualized as
- A “bundle of benefits”
- A value-transfer mechanism
- An essential brand-building tool
Product: Circumvent Failure
- target segment & positioning
- do research
- interpret research
- Customer commitment
Product: common assumptions
- limited life
- sales pass through distinct stages
- require different marketing, financial, manufacturing strategies in each life-cycle stage
Product: classes of product attributes
- search (evaluated before)
- experience (evaluated after)
- credence (can’t be evaluated)
Promotion: consumer purchase funnel
awareness > consideration > preference > purchase > loyalty > advocacy
