marketing mix (4Ps) Flashcards
(20 cards)
Define
product
product portfolio
- goods/services sold by a business and purchased by customers
- the range of products owned by a business at any one point in time
Define
branding
brand awareness
brand development
- the extensive use of a symbol, name, or design that is used to identify an org. or product
- the extent to which people recognize the brand
- the ongoing/long-term process of improving/enlargening the brand name to increase sales revenue
Define marketing myopia
- when businesses become complacent in product strategy, falling to keep up with market changes
Define product cannibalization
- occurs when 2 brands of a business are competing with each other
Competitive pricing (HL)
setting price of products to similar levels of competitors
Contribution pricing (HL)
setting price higher than direct production costs to make sure there is a positive contribution made towards payment of indirect costs
Cost-plus/Mark-up pricing
adding a % or specific amount of profit to the cost per unit of output to determine selling price
Penetration pricing
setting low price to gain entry into a new market
Premium pricing
price of product is set much higher than similar competing products (high quality/unique)
Dynamic pricing (HL)
varying price of product to reflect changing market demand
Loss leader pricing (e.g. , costco chicken)
setting the price of a product below its production costs; purpose is to entice customers to buy other products with high profit margins
Predatory pricing
temporarily setting prices so low that competitors cannot compete at a profitable level
Promotion
methods used to inform, persuade or remind people about a firm’s products and brands
Informative promotion
Persuasive promotion
Reminder promotion
- alerting the market about a firm’s products
- convince customers to make a purchase
- retaining customer awareness/interest in a firm’s products/brands
Above the line promotion
paid-for mass media promotion
Examples of above-the-line promotion
- state an advantage & disadvantage of TV /radio
- TV, radio, magazine
- low cost per exposure for mass market promotion/ production cost is high or absolute cost is high (TV)
- low cost / low attention
Below the line promotion
not paid-for mass media promotion
Examples of below-the-line marketing
- direct marketing = selling a product straight to the customer (personalized/can be perceived as junk mail)
- personal selling = sales rep. persuading customers to buy (personalized/expensive to hire sales agents)
- sales promotion = short-term incentives to increase interest in the product
- public relations = improving brand image via positive media coverage
- trade shows = promotional events
Through-the-line promotion
- find example: TV ads + sales promotion
promotional strategies that involve both above and below the line methods
Social media marketing
a promotional strategy that involves gaining Internt traffic through social media platforms like Instagram or Twitter
