Marketing Mix

Flashcards on the marketing mix, its elements, and related strategies, based on lecture notes.

Marketing Mix

A widely accepted strategic marketing tool that combines the original 4Ps with the additional 3Ps in formulating marketing tactics for a product or service. It is an interconnected set of strategies and decisions to propel the growth of products and services.

7 P's of Marketing Mix

Product, Place, Price, Promotion, People, Packaging, Positioning

Product (Marketing Mix)

Indicates a description of the product or service that you are selling. It can be tangible goods, a service, an experience, an idea, or a digital product.

Place (Marketing Mix)

Pertains to the distribution strategy of your business to make your product or service available to the target market like physical location, online market- places, and direct sales.

Price (Marketing Mix)

The amount of money that a customer pays for a product or a service. Setting the correct price is crucial for any business's success.

Cost-plus pricing

A method where businesses add a fixed percentage on top of the cost it takes them to produce one product.

Competitive Pricing

Offering prices the same as to competitors; usually used in markets with high competition with similar products.

Bundling

A marketing strategy where multiple products or services are packaged together as a single combined offering, often at a discounted price compared to purchasing each item separately.

Value-Based Pricing

The company prices its products or services based on what the customers are willing to pay. This strategy involves understanding how much a customer believes a product is worth and pricing the product accordingly.

Penetration Pricing

Setting low prices to increase market share. A company enters a market with super low prices to try and draw attention and revenue away from the higher-priced competitors.

Skimming

Prices are initially high and then lowered to offer the product or service to a wider market.

Decoy Effect

A phenomenon in consumer behavior and decision-making where the presence of a third option (the decoy) can influence a person's choice between two other options.

Charm Pricing

A pricing strategy that involves setting prices just below a round number to make the price seem significantly lower to consumers.

Dynamic Pricing

A strategy where businesses set flexible prices for products or services based on current market demands.

Premium Pricing

Involves setting the price of a product or service significantly higher than the competition; intended to attract status-conscious consumers.

Price Ceiling

The most customers will pay for your product or service.

Price Floor

Assessment of how much it costs you to produce the product or service.

Promotion (Marketing Mix)

This element enables the entrepreneur to inform potential consumers about the product’s availability, or to educate the consumer about the product.

Advertising

Paid messages delivered through traditional and digital media.

Sales Promotion

Short-term tactics designed to stimulate quicker or greater sales of a product or service.

Public Relations (PR)

Activities aimed at creating and maintaining a favorable public image for the company or brand.

Personal Selling

A direct form of communication where sales representatives interact with potential buyers to explain or demonstrate the features of a product or service, with the goal of making a sale.

Direct Marketing

Communicating directly with targeted segments of customers to generate a response or transaction.

Digital Marketing

Utilizes the internet and online-based digital technologies to promote products or services.

People (Marketing Mix)

This element focuses on the role of human resources in propelling the growth of the business.

Packaging

Refers to how the product or service is presented to your customers in terms of its visual appeal; also considers the attributes of the product as it goes through distribution channels.

Positioning

This concept considers how your product or service offering is positioned in the minds of your target customers.

Positioning Based on Product Characteristics

Associates the brand with a certain characteristic that is beneficial to the community.

Positioning Based on Price

Aims to offer the cheapest or the most affordable product or service in the market.

Positioning Based on Quality or Luxury

Associates the brand with high quality or prestige such that the customer would desire it regardless of the price.

Positioning Based on Product Use or Application

Emphasizes the particular use of the product.

Positioning Based on Competition

This uses the competition as a reference for differentiating the uniqueness of one’s product or service; it follows similar benefits offered by the competitor.

Process

Refers to the standard procedures or systems involving internal marketing-related activities and external activities.