TERMS Unit 4: Marketing Chapter 26: The seven Ps of the marketing mix

digital promotion

the use of the internet, mobile devices social media, search engines and other channels to communicate with consumers to provide information about products and encourage the purchase of them

marketing mix

the key decisions that must be taken in the effective marketing of a product

coordinated marketing mix

key marketing decisions complement each other and work together to give customers a consistent message about the product

product

the end result of the production process sold on the market to satisfy a customer need

consumer durables

manufactured products that can be reused and are expected to have a reasonably long life, such as cars

product life cycle

the pattern of sales records by a product from launch to withdrawal from the market

product portfolio

the collection of all of the products (goods and services) offered for sale by a business

extension strategies

marketing plans that extend the maturity stage of the product before a brand new one is needed

extension strategies examples

- add features to the original product

- repackage a product

- discount the price

- rebrand

- sell into new markets, e.g. export markets

brand

an identifying symbol, name, image or trademark that distinguishes a product from its competitors

brand awareness

the extent to which a brand is recognised by potential customers and is correctly associated with a particular product - can be expressed as a percentage of the target market

brand loyalty

the faithfulness of consumers to a particular brand as shown by their repeat purchases irrespective of the marketing pressure from competing brands

brand development

measures the infiltration of a product's sales, usually per thousand population; if 100 people in 1000 buy a product, it has a brand development of 10

brand value (or brand equity)

the premium that a brand has because customers are willing to pay more for it than they would for a non-branded generic product

trademark

a distinctive name, symbol, motto or design that identifies a business or its products - can be legally registered and cannot be copied

cost-plus pricing

adding a fixed mark up to the unit cost of a product to cover overhead costs and for profit

mark up

the extra amount or percentage added to the cost of goods to give the retail or selling price

penetration pricing

setting a relatively low price often supported by strong promotion in order to achieve a high volume of sales

loss leader

product sold at a very low price to encourage consumers to buy other products

predatory pricing

deliberately undercutting competitors' prices in order to try to force them out of the market

premium pricing

setting a price above that of competitors with the aim of developing a superior image of the product

dynamic pricing

offering products at a price that changes according to the level of demand and the customer's ability to pay

competitive pricing

making pricing decisions based on the price set by competitors

contribution pricing

setting prices based on the variable costs of making a product, in order to make a contribution towards fixed costs and profit

price elasticity of demand (PED)

a measure of the responsiveness of demand for a product following a change in its price;

PED = percentage change in quantity demanded / percentage change in price

promotion

the use of advertising, digital promotions, sales promotion, personal selling, direct mail, trade fairs, sponsorship and public relations to inform consumers and persuade them to buy

above-the-line promotion

a form of promotion that is undertaken by a business by paying for communication with consumers, e.g. advertising

below-the-line promotion

promotion tat does not use directly paid-for means of communication but is based on targeting individual market segments or individual consumers with incentives to purchase, e.g., sales promotion techniques

customer relationship management

the strategies and techniques a business uses to interact and communicate with customers

sales promotion

incentives such as special offers or special deals directed at consumers or retailers to achieve short-term sales increases and repeat purchases by consumers

through-the-line marketing

an integrated marketing strategy that combines elements of both above-the-line and below-the-line promotion

online marketing

advertising and marketing activities that use the internet, email and mobile communications to encourage direct sales via electronic commerce

viral marketing

the use of social media sites or text messages to increase brand awareness or sell products

channel of distribution

the chain of intermediaries a product passes through from producer to final consumer

process

procedures and policies that are put in place to provide the service or the product to the consumer

physical evidence

the ways in which the business and its products are presented to customers

intangible product

a non-physical product (a service) provided to a consumer, such as an insurance policy or a car repair

tangible product

a physical object that can be touched, such as a building, car, tablet computer or clothing