Marketing Mix Flashcards
What is marketing
Marketing is a management process focused on understanding and meeting customer needs profitably. It involves building and maintaining relationships with customers and benefiting various stakeholders, including customers, employees, managers, suppliers, and the government.
What are the 7P’s of mix?
Product
price
promotion
place
people
process
physical evidence
what is product?
- it is what organization decide to sell, it can be tangible or intangible
Tangable = goods
Intangible = Services.
A product is simply a physical good or intangible service provided by a business. Some marketers argue that product is the most important of the 7Ps in the marketing mix - after all, without a product, there is nothing to promote, distribute (place), or price.
what are examples of consumer goods?
Consumer goods are products bought for personal consumption, rather than for business use.
Examples include home appliances, furniture, food and drink, and house plants
What is Product life cycle
It is the succession of stages of a product from launch to decline, it has 2 variables: size and sales
it has 5 elements:
- research and design
- launch
- growth
- maturity
- decline
What is price?
Price refers to the value of a good or service that is paid by the customer. Price will usually cover the costs of production, allowing the business to earn profit.
what are the 5 strategies of pricing
- Cost plus pricing: it is when a manager adds a markup to the cost to dermic the price
- Penetration: setting a product at a low price to penetrate the market and attract customers
- Loss ladder: setting some products at a low price that is not profitable to attract customers to other products
- Predatory pricing: it is a temporary measure to remove competitors by setting products at a low price
- Premium pricing = setting a high price for premium high quality products
What is Penetration?
Setting a product at a low price to penetrate the market and attract customers
What is cost plus pricing?
it is when a manager adds a markup to the cost to dermic the price.
What is loss ladder
Setting some products at a low price that is not profitable to attract customers to other products
What is promotion
communicating messages and information about a product/brand to customers, it aims for these objectives:
- to inform
- to pressure
- remind
ATL = promotion through mass media, (eg: tv commercial)
BTL: it is a direct promotion through displays (eg: window shops)
What is Predatory pricing?
Predatory pricing: it is a temporary measure to remove competitors by setting products at a low price
What is place:
it is a decisions about delivering the right products and the right time and how it reaches the end distributer through distribution channels.
What are intermediaries?
they are individuals who help move products from end producer to customers (eg: retailers, brokers and wholesalers).
the more intermediaries the more levels there are in a distribution channel;
zero level = no intermediaries, it is when products are delivered from producer to customers directly,
one level = one intermediaries, premium good are sold this way
two levels: includes 2 intermediaries, it is when a producer is far away from a customer. (eg: wholesalers)
What is people
it is an element of service that is concerned with employee customer relationships . it refers to all the interactions made with customers
- manners
- appearance
- comunivcation
are all things that is related to this service
