The Seven Ps of the Marketing Mix Definitions Flashcards
Product life cycle
the length of time from when a product is first introduced to when it is removed from the market
Research and development stage(R&D)
the stage before the product is launched, where the business focuses on market research, product development and preparation of production
Introduction stage
the first stage of the product life cycle, when the product is initially launched into the market
Growth stage
the second stage of the product life cycle, which is characterised by an increase in sales over time
Maturity stage
the third stage of the product life cycle, where sales are stable over a period of time(i.e. sales will still be growing, but at a slower rate)
Decline stage
the fourth stage of the product life cycle, where sales and/or market share decreases
Extension strategies
methods used by businesses to keep a product in the maturity stage of the product life cycle(i.e. lengthen the maturity stage), rather than letting it go into the decline stage
Distribution channel
the network used to move a product from the manufacturer to the end users
Brand
a name, symbol or design that is used to identify a product or company
Brand awareness
the degree to which consumers recognise a product by its name and special characteristics
Brand development
the process of building brand awareness by cultivating the business’s values and consumer perceptions of the product
Brand loyalty
a situation where customers continue to buy a particular brand, even when alternatives exist
Brand value
the monetary worth of a brand as an intangible asset, if a business was to be interested in selling it
Markup
the amount of money added to the cost price of goods to cover overheads and profit
Overhead
referring to a cost that is incurred for the upkeep(running) of a business and not attributable to individual products or items
Cost-plus(markup) pricing
a pricing strategy whereby all direct costs and some allocation of indirect costs are added together, along with some markup(either a fixed or percentage amount) to determine the sales price to customers
Penetration pricing
a pricing strategy where the business sets a very low price on a new product or service to encourage customers to buy it; later the price is increased
Fast moving consumer goods(FMCG)
products that are sold quickly, consumed regularly, and typically have a short shelf life
Loss leader
a product that is sold at a loss to attract customers
Loss leader pricing
a pricing strategy in which a product is priced lower than its production cost in order to attract customers who can then be sold other, more expensive products
Monopoly
a situation in which a market is dominated by one supplier
Predatory pricing
a pricing strategy where a business sells a product or service at such a low price that businesses cannot compete and are forced to leave the market; the remaining business can then enjoy a monopoly position and raise prices accordingly
Premium pricing
a pricing strategy where a business sets the price of its products higher to create the impression that the products are of higher quality or value than their lower-cost equivalents