Chapter 15: Marketing Mix: Product, Place, Price, And Promotion Flashcards
Value
Good quality at a fair price
Total product offer (value package)
Everything that customers evaluate when deciding whether to buy something
Product line
Group of products that are physically similar or are intended for a similar market
Product mix
The combination of product lines offered by an organization
Product differentiation
The creation of real or perceived product differences
Bundling
Grouping two or more products together and pricing them as one unit
Brand
A name, symbol, or design that identifies a good or service of one seller
Brand equity
The value of the brand name associated symbols
Brand loyalty
The degree to which customers are satisfied, enjoy the brand, and age committee to further purchase
Brand manager
The person in the company who has direct responsibility for one brand or one product line
Product life cycle
Theoretical model of what happens to saless and profits for a product class over time.
Four stages of product life cycle
Introduction, growth, maturity, and decline
Target costing
Designing a product so that’s it satisfies customers and meets the profit margins desired by the firm
Competition based pricing
A pricing strategy based on what all the other competitors are doing. The price can be set at, above, or below competitors prices
Price leadership
The strategy by which one or more dominant firms set the pricing practices that all competitors in an industry then follow
Break even analysis’s
The process used to determine profitability at various levels of sales
Total fixed costs
All expenses that remain the same regalesless of product sold
Variable cost
Costs that change according to the level of population
Skimming price stategy
A strategy in which a new product is priced high to make optimum profit while there is little competition
Penetration price strategy
Strategy in which the product is priced low to attract many customers and discourage competitors
Everyday low prices
Setting prices lower then competitors but never have any special sales
High - low pricing strategy
Set prices rhat are higher than everyday low prices stores, but have many speciali sales where the prices are lower than competitors
Psychological pricing
Pricing goods at price points that make products appear less expensive than they are
$499 is still $500
Marketing intermediaries
Organizations that assist in moving goods and services from producers to business and consumer users
Chanel of distribution
Set of marketing intermediaries such as agents, brokers, wholesalers, and retailers, that join together to transport and store goods in their path from producers to consumers
Agents / brokers
Marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but do not take title to the goods
Wholesaler
Marketing intermediary that sells to other organizations (hospital)
Retailer
Organization that sells to ultimate consumers
Intensive distribution
Distribution that puts products into as many retail outlets as possible
Candy, gum, magazines
Selective distribution
Distribution that sends products to only a preferred group of retailers in an area
Manufactures of appliances, furniture, clothing
Exclusive distribution
Distribution that sends products to only one retail outlet in a given geographic area
Online retailing
Selling products to ultimate consumers online
Social commerce
Using social media and user contributions to assist in the online buying and selling of products and services
Telemarketing
Sale of goods by telephone
Direct selling
Selling to customers in their homes or where they work
Promotion mix
The combination of promotional tools an organization uses
Intergrated marketing communication
Technique that combines all of the promotional tools into one comprehensive and unified promotional strategy
Digital marketing
The promotion of products or brands via one or more forms of electronic media
Advertising
Paid, non personal communication through various media by organizations and individuals who are in some way identified in the advertising message
Personal selling
Face to face presentation and promotion of goods and services
Tv at Best Buy, car at ford
Public relations
The function that evaluates public attitudes, changes policies and procedures in response to the public’s request, and executes a program of action and information to earn public understanding and acceptance
Publicity
Any information about an individual, product, or organization that is distributed to the public through the meida and is not paid for or controlled by the seller
Sales promotion
The promotional tool that stimulates consumer purchasing and dealer interest by means of short term activities
Direct marketing
Any activity that directly links manufactures or intermediaries with the ultimate consumer
Direct mail, cataloging, telemarketing
Push strategy
Promotional strategy in which the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise
Pull Strategy
Promotions strategy in which heavy advertising and sales promotion efforts are directed towards consumers so that they will request the products from the retailers
4 ways to segment consumer market
Demographic, geographic, behavioural, psychographic
What is product cycle
Introduction, growth, maturity, decline
supply chain places
Supplier, manufacturer, wholesaler, retailer, consumer
Chanel distribution places
manufacturer, wholesaler, retailer, consumer
Difference between channel of distribution and supply chain
Chanel of distribution does not have supplier
5 types of promotion
Advertising, personal selling, direct marketing, sales promotion, public relations
