The Marketing Mix: The 7Ps of Marketing Flashcards
A widely accepted strategic marketing tool that combines the original 4Ps with the additional 3Ps in formulating marketing tactics for a product/service
The 7Ps of Marketing
what is 4Ps?
product, place, price, promotion
what is 3Ps?
people, packaging, process
It is any physical good, service, or idea that is created by an entrepreneur
Product
3 Level Concept of products or services that summarizes the reasons that a customer decides to buy the product or avail the service
Level 1: core benefits of the product/service
Level 2: Physical Characteristic of Product/Service
Level 3: Augmented Benefits of a Product/Service
it is the location/medium of transaction
place
what are the things needed when researching about the location?
area’s population, traffic, people’s common paths, buying behavior, and preferences forda location
it is the peso value that the entrepreneur assigns to a certain product/service
Price
It is the only P in 7Ps that generates revenue for the business
Price
2 Classification of Costs
Variable/Controllable Costs, Fixed Costs/uncontrollable costs
This is directly proportional to the number of products manufactured/ services performed
Variable Costs/ Controllable Costs
These are not directly proportional to the manufacturing of a prodct/ to performance of the service. These are usually the cost of equipment, employee remuneration, rental cost and utilities
Fixed costs/ Uncontrollable costs
the business will still incur these costs whether or not they provide more or less.
Fixed costs/ Uncontrollable costs
examples of these are costs that the business have to pay yearly or monthly. (eg. maintenance, weekly allowance, salary)
Fixed costs/ Uncontrollable costs
This is a strategy wherein 2 or more products/services in one reduced price
Bundling
A type of strategy wherein letting low price to increase market share, but the entrepreneur will eventually increase the price once the desired market is achieved
Penetration Pricing
a type of strategy wherein the opposite of penetration pricing. Prices are initially high and then they are lowered to offer the product/ service to a wide market.
Skimming
a type of strategy which refers to benchmaking prices with the competitors
Competitive Pricing
A type of strategy wherein pricing different product/ services within a parallel product array array using varying price points
Product Line Pricing
A type of strategy that considers the psychology and positioning of price in the market
Psychological Pricing
a strategy that refers to selling at a very high price to reflect elitism and superiority
Premium Pricing
a type of strategy that adds an extra product/ sevice on top of the original to generate more revenue
Optional Pricing
a type of strategy wherein the basis of markup/ interest is the cost of sales. (adding the products/ materials used in the business)
Cost-based pricing
A type of strategy wherein the markup is based on a certain percentage of cost
Cost Plus Pricing
Presenting the products/ services to the public and how these can address the public needs, wants, problems, or desires
Promotion
This is a type of communication that influences the behavior of a customer to choose the product/service of the entrepreneur over the competitors
Advertising
The act of trading a prodcut/service for a price or fee
Selling
Short-term promotional gimmick wherein practical incentives and appealing activities are incorporated to entice the customers
Sales Promotion
Image-building initiatives of the entrepreneur to make the name name of the business reputable to stakeholders
Public Relations/ Publicity
