Q3 - Entrep Quiz #4 Flashcards
What is Marketing Mix?
- a business mechanism used for effective product marketing
- controllable and connected variables gathered by a company to satisfy customers better than competitors
What are the 7 P’s?
- Product
- Place
- Price
- Promotion
- People
- Packaging
- Positioning
Product
refers to any goods or services produced to meet the consumers’ demands
Place
- location where exchange of goods or services happens between buyers and sellers
- aka distribution channel
- physical/virtual stores
Stages of Distribution Channel
- Producer > Manufacturer > Retailers > Consumers
- Producer > Retailer > Consumer
- Producer > Consumer (Direct Marketing)
Price
value of money in exchange for product or service
Price determinants
- What buyer is willing to pay
- What seller is willing to accept
- What the competition is allowing to be charged
Penetration pricing
price charged for products or services is set artificially low to gain market share
Skimming pricing
high price then slowly lowers it to make the product available to a wider market
Competition pricing
using the price of competing products as a benchmark instead of the costs
Product line pricing
the practice of reviewing and setting prices for multiple products that a company offers in coordination with one another
Bundle pricing
placing several products or services together in a single package and selling for a lower price than separate
Premium pricing
setting the price higher than similars to create a higher value perception
Psychological Pricing
setting prices slightly lower than rounded numbers
Optional pricing
cross-selling products along with a basic core product
Cost plus pricing
adding a fixed markup price to the cost of goods and services
Cost based pricing
a percentage of the total cost is added to the cost
Value based pricing
pricing strategy where prices are based on the consumer’s perception of the product’s value
Promotion
complete set of activities to communicate the business to the user
Advertising Promotion Examples
Radio, TV, print, electronic, word of mouth, etc.
People
consists of each person who is involved in the product or service whether directly or indirectly
Packaging
outside appearance of a product and how it is presented to the customers
FIve Basic Functions of Packaging
- Protection
- Containment
- Information
- Utility of Use
- Promotion
Packaging decisions
- Packaging concept
- Engineering test
- Visual test
- Dealer test
- Consumer test
Positioning
process to create an image in the minds of a target market
Market Research
gathering, analyzing, and interpreting the information about the products or the services to be offered for sale
