The Seven Ps of the Marketing Mix Definitions

Question 1

Product life cycle

Answer 1

the length of time from when a product is first introduced to when it is removed from the market

Question 2

Research and development stage(R&D)

Answer 2

the stage before the product is launched, where the business focuses on market research, product development and preparation of production

Question 3

Introduction stage

Answer 3

the first stage of the product life cycle, when the product is initially launched into the market

Question 4

Growth stage

Answer 4

the second stage of the product life cycle, which is characterised by an increase in sales over time

Question 5

Maturity stage

Answer 5

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)

Question 6

Decline stage

Answer 6

the fourth stage of the product life cycle, where sales and/or market share decreases

Question 7

Extension strategies

Answer 7

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

Question 8

Distribution channel

Answer 8

the network used to move a product from the manufacturer to the end users

Question 9

Brand

Answer 9

a name, symbol or design that is used to identify a product or company

Question 10

Brand awareness

Answer 10

the degree to which consumers recognise a product by its name and special characteristics

Question 11

Brand development

Answer 11

the process of building brand awareness by cultivating the business’s values and consumer perceptions of the product

Question 12

Brand loyalty

Answer 12

a situation where customers continue to buy a particular brand, even when alternatives exist

Question 13

Brand value

Answer 13

the monetary worth of a brand as an intangible asset, if a business was to be interested in selling it

Question 14

Markup

Answer 14

the amount of money added to the cost price of goods to cover overheads and profit

Question 15

Overhead

Answer 15

referring to a cost that is incurred for the upkeep(running) of a business and not attributable to individual products or items

Question 16

Cost-plus(markup) pricing

Answer 16

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

Question 17

Penetration pricing

Answer 17

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

Question 18

Fast moving consumer goods(FMCG)

Answer 18

products that are sold quickly, consumed regularly, and typically have a short shelf life

Question 19

Loss leader

Answer 19

a product that is sold at a loss to attract customers

Question 20

Loss leader pricing

Answer 20

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

Question 21

Monopoly

Answer 21

a situation in which a market is dominated by one supplier

Question 22

Predatory pricing

Answer 22

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

Question 23

Premium pricing

Answer 23

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

Question 24

Dynamic pricing/price discrimination

Answer 24

a pricing strategy where the same product is sold to different customers at different prices(based on time, the specific group of customers, etc.)

Question 25

Competitive pricing

Answer 25

a pricing strategy where the price of a company's goods or services is based upon what its competitors are charging for similar goods and services

Question 26

Contribution pricing

Answer 26

a pricing strategy where the price charged for a product reflects the variable(direct) costs plus some markup(the latter of which is the contribution to fixed costs)

Question 27

Contribution

Answer 27

the price of the product minus the variable(direct) costs per unit(in contribution pricing)

Question 28

Demand

Answer 28

the willingness and ability of customers to buy products at a particular price and time

Question 29

Price elasticity of demand(PED)

Answer 29

a measure of how sensitive consumer demand is to changes in the price of a product

Question 30

Price elastic demand

Answer 30

a situation where a price change in a product causes a more than proportional change in its demand

Question 31

Price inelastic demand

Answer 31

a situation where a price change in a product causes a less than proportinal change in its demand

Question 32

Unitary elastic demand

Answer 32

a situation where the demand for a product changes proportionally to its price

Question 33

Subsitute goods

Answer 33

a product that customers see as the same(or similar enough to) as another product

Question 34

Above the line promotion(ATL)

Answer 34

promotion aimed at mass audiences, and are generally not targeted

Question 35

Below the line promotion(BTL)

Answer 35

promotion aimed at specific segments and do not rely on mass market audiences

Question 36

Through the line promotion(TTL)

Answer 36

an intergrated marketing approach that includes both above the line and below the line elements

Question 37

Direct marketing

Answer 37

a form of marketing communication that uses one or more types of media(e.g. emails, phone calls, letters, etc.) to communicate directly with a target audience and measure their response

Question 38

Conversion

Answer 38

the process of getting customers or potential customers to respond to the 'call to action' of a business

Question 39

Digital marketing

Answer 39

the use of the internet, mobile devices, social media, search engines, and other channels to reach consumers

Question 40

Loyalty program

Answer 40

a marketing approach that recognizes and rewards customers who purchase or engage with a brand on a recurring basis

Question 41

Merchandising

Answer 41

the promotion of goods that are available for purchase for both wholesale and retail sales

Question 42

360-degree marketing

Answer 42

a marketing campaign that reaches customers at all possible points of contact(i.e. both ATL and BTL promotion)

Question 43

Intermediary

Answer 43

a person or business that acts a go-between in a transaction

Question 44

Wholesaler

Answer 44

a business selling goods in large quantities to retailers, generally at a low price

Question 45

Breaking bulk

Answer 45

a practice in which wholesalers break larger units of products into smaller units to deliver to retail outlets

Question 46

Place

Answer 46

an element of the marketing mix related to the physical distribution of products

Question 47

Agent

Answer 47

a person who acts on behalf of another person or group

Question 48

Commission

Answer 48

a type of payment to an employee or agent based on the number of sales or a percentage of the value of sales

Question 49

Distribution channel

Answer 49

the network of businesses or intermediaries through which a good or service passes until it reaches the end consumer

Question 50

Direct distribution

Answer 50

a type of distribution in which the producer deals directly with the customers(i.e. does not involve intermediaries)

Question 51

Indirect distribution

Answer 51

a type of distribution channel in which the producer reaches the customers via one or more intermediaries

Question 52

Broker

Answer 52

a person who buys and sells products for others

Question 53

People

Answer 53

those who are involved in offering a service; an element of the marketing mix

Question 54

Induction

Answer 54

training for new employees when they first start work at an organisation

Question 55

Process

Answer 55

an element of the (services part of) the marketing mix related to the activities needed in the interaction between the customer and the business

Question 56

Q-commerce(quick commerce)

Answer 56

a type of e-commerce where emphasis is placed on quick deliveries, typically in less than an hour

Question 57

Dark store

Answer 57

a warehouse store that provides items for online shopping(i.e. for e-commerce, especially Q-commerce) and are needed for the quick delivery og foods to a client

Question 58

After-sales service

Answer 58

the maintenance, help and information that a business procides to the customer after they purchase a product

Question 59

Product porfolio

Answer 59

the collection of all the products and services a company offers to its customers