Ch.12&13: Marketing Mix Flashcards
Marketing Mix
4 marketing decisions needed for the effective marketing of a product
4 Ps
The right product at the right price with the right promotion in the right place
Product
The goods and services produced to satisfy a customer need or want
Brand
A name, image or symbol that distinguishes a product from competitors’ products
Brand image
The general impression of a product held by consumers
Product life cycle
The pattern of sales of a product from introduction to its withdrawal from the market
Extension strategies
Marketing activities to extend the maturity stage of a product
Price
The amount paid by the customer to the supplier when buying a good or service
Product quality
The product meets the needs and expectations of customers
Market skimming
Setting a high price for a new product that is unique or very different from any other product on the market
Penetration pricing
Setting a low price to attract customers to buy a new product
Competitive pricing
Setting a price similar to that of competitors’ products which are already established in the market
Price leadership
Smaller firms set their price based on the price set by the dominant firm in the industry
Loss-leader pricing
Setting the price of a small number of products at below cost to attract customers into the outlet in the hope that they will buy other products priced to earn profit
Cost-plus pricing
Setting price by adding a fixed amount to the cost of making or buying the product
Demand
The quantity of goods and services consumers are willing and able to buy
Price elasticity of demand
Measures by how much demand for a product changes when there is a change in its price
Price inelastic demand
The percentage change in demand is less than the percentage change in price
Price elastic demand
The percentage change in demand is greater than the percentage change in price
Revenue
The amount earned by a business from the sale of its products
Channels of distribution
How a product gets from the producer to the final consumer
Wholesaler
A business that buys products in bulk from producers and then sells them to retailers
Retailer
Shops and other outlets that sell goods and services to the final consumer
Middlemen
These are the intermediaries in the channels of distribution, for example wholesalers and retailers
Direct selling
The product is sold by the producer directly to the final consumer without the need for any middlemen.
Promotion
Marketing activities used to communicate with customers to inform and persuade them to buy a business’s products
Advertising
Paid-for communication with consumers which uses printed and visual media. The aim is to inform and persuade consumers to buy a product
Informative advertising
Information about the product communicated to consumers to create product awareness and attract their interest
Persuasive advertising
Communication with consumers aimed at getting them to buy a firm’s product rather than a competitor’s product
Below-the-line promotion
Promotion that is not paid-for communication but uses incentives to encourage consumers to buy
Sales promotion
Incentives used to encourage short-term increases in sales or repeat purchases
Personal selling
Sales staff communicate directly with the consumer to achieve a sale and form a long-term relationship between firm and consumers
Direct mail
Also known as ‘mailshots’; printed materials which are sent directly to the addresses of customers
Sponsorship
Payment by a business to have its name associated with a particular event
Marketing budget
The amount of money made available by a business for its marketing activities during a particular period of time
E-commerce
Use of the internet and other technologies by businesses to market and sell goods and services to customers
