Marketing Mix (Chapter 6) Flashcards
What is the definition of Marketing Mix?
The combination of the 4P’s working together in order to achieve the marketing objectives that the business has set.
What is the definition of the 4P’s of marketing?
Product, Price, Promotion, Place: The 4P’s of marketing is a model for enhancing the components of your “marketing mix” or the way in which you take a new product or service to market.
What is the definition of “Product”?
It refers to the goods or services that the busines offers to the customer.
What are the 4 components of “Product”?
- Positioning
- Features
- Branding
- Packaging
What is Product Positioning?
Product positioning encompasses all the methods that are used to create a unique impression of the product in the minds of potential customers.
What is Packaging?
The designing and developing of the wrapper/container of a brand’s product to communicate the brand and product information by making it look attractive.
What is Branding?
The process where a business makes itself known to the public and differentiates itself from competitors.
What is the definition of “Price”?
The pricing process involves setting the price of the product. A good pricing strategy will ensure sales income and meet profit objectives.
What are the 4 different Pricing Strategies?
Skim, Penetration, Psychological and Premium.
What is the definition of Skim Pricing?
A pricing strategy where a company charges the highest price for the initial price customers will pay.
What is the definition of Penetration Pricing?
A pricing strategy where a company charges deliberately lower prices than their competitors to penetrate the market and gain a large market share.
What is the definition of Psychological Pricing?
A pricing strategy based on the theory that certain prices have a bigger psychological impact on consumers than others. E.g. $2.99, $1.95
What is the definition of Premium Pricing?
A pricing strategy that involves setting the price of a product higher than similar products to perceive it as a higher luxurious item.
What is the definition of Promotion?
Refers to the entire set of activities, which communicate the product, brand or service to the user.
What are 4 types of Promotion?
Viral, Direct, Push and Pull.
What is the definition of Push Promotion?
The creation of demand by “pushing” the product onto consumers.
What is the definition of Pull Promotion?
The creation of demand by “pulling” the consumer in.
What is Viral Marketing?
Viral marketing is the process of a multimedia message being passed along from person to person to create awareness and interest for a brand or product, e.g. social media, mobile applications, e-newsletters, e-commerce.
What is the definition of Place?
Refers to the distribution methods and location an organisation chooses to ensure its products or services are easily accessible to their target customers.
What are the 3 different Place Strategies?
Direct distribution, Indirect distribution, Location.
What is the definition of Direct Distribution?
When a business distributes its products directly to its customers.
What is the definition of Indirect Distribution?
When a business distributes its products indirectly to its customers, usually through retail outlets.
What is the definition of Location?
Refers to the place at which a business is situated so that they enable customers to access their products.
What are the extra 3P’s?
People, Process, Physical.
What is the definition of People?
The staff and employees who are working with the customers of the business.
What is the definition of Customer Relationship Management?
The process by which a business administers and manages its interaction with customers.
What is the definition of Process?
What the customers experience at each stage of the customers’ interactions.
What is the definition of Physical?
The presence of the business that encompasses all the elements of the business identity that the customer can see, e.g. signage, webpage, staff uniform.
What is the definition of Performance?
The evaluation of business marketing objectives using key performance indicators (KPIs), including: sales revenue, sales returns and customer satisfaction.
What are 2 strategies for Managing Customer Relationships?
Customer Loyalty, An Early Adopter.
