Chapter 5 - Small Business Marketing Flashcards
What are the 4 p’s of marketing?
The four major components of a marketing effort are product, price, promotion, and placement. SOmetimes called the marketing mix.
What are goods?
physical products?
what are services?
a nonphysical product
What is tangibility?
an item’s capability of being touched, seen, tasted, or felt.
What is perishability?
a service exhibits perishability in that if it is not used when offered it cannot be saved for later use.
what is inseparability?
a quality of a service in which the service being done cannot be disconnected from the provider of the service.
What is heterogeneity?
a quality of a service in which each time it is provided it will be slightly different from the previous time.
What is a total product?
the entire bundle of products, services, and meanings of your offering; includes extras like service, warranty, or delivery, as well as what the product means to the customer.
What is augmented product?
core product plus features that tend to differentiate it from the competition.
What is a core product?
The very basic description of what a product is a bar of soap, a house cleaning service.
What is a target market?
The group of people on which a marketer focuses promotion and sales effort.
What are me-too products?
Products essentially similar to something already on the market.
What is optimum price?
The highest price that will produce your desired level of sales in your intended market.
What is markup pricing?
a price-setting method where an amount is added to the cost of a product to set the retail price and provide a profit.
What is margin?
the amount of profit, usually stated as a percentage of the total price.
What is markup?
the amount an entrepreneur adds to costs to provide a profit.
What is elasticity?
from economics the ideas that the market’s demand for a product or service is sensitive to changes in its price.
What is an inelastic product?
product for which there are few substitutes and for which a change in price makes very little difference in quantity purchased.
What is an elastic product?
product for which there are any number of substitutes and for which a change in price makes a difference in quantity purchased.
What is the law of supply and demand?
The economic theory that describes how the demand for products(or services) and the supply of them affect each other.
What is price gougin?
charging an outrageously high price for something.
What is internal reference price?
a consumer’s mental image of what a product’s price should be.
What is an external reference price?
an estimation of what a price should be based on information external to a consumer, such as advice, advertisements, or comparison shopping.
What is skimming?
Setting a price at the highest level the market will bear, usually because there is no competition at the time.
