4.5 The Marketing Mix

A comprehensive set of flashcards covering key terms and concepts related to the Marketing Mix.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers' purchase decisions.

The 7 P's

Product, Price, Place, Promotion, People, Processes, Physical Evidence.

Product

The item or service offered to meet customer needs and expectations.

Pricing Strategies

Methods used to set the price of products or services, considering factors like cost, competition, and demand.

Promotion

Activities that communicate the benefits of a product and encourage customers to make a purchase.

Place

The distribution channels and locations used to make the product available to customers.

People

The human resources involved in customer interactions and the service delivery process.

Processes

The sequence of activities, procedures, and systems involved in the delivery of a product or service, ensuring efficient execution of marketing strategies and a consistent customer experience. This includes operational workflows, service delivery protocols, complaint resolution procedures, and order fulfillment systems.

Physical Evidence

Tangible elements that customers can observe when interacting with a product or service.

Product Portfolio Analysis

A method to assess a company's product mix and make strategic decisions.

Cash Cow

A product with high market share in a mature market but low growth potential.

Problem Child/Question Mark

Products with low market share in a high growth market that require significant investment.

Star

Products with high market share in a high growth market, regarded as valuable assets.

Dog

Products with low market share and low growth, often divested.

Boston Matrix

A strategic tool used to categorize products based on market share and growth rate.

Harvesting Strategy

A strategy focused on maximizing short-term cash flow from a product or business unit by reducing investment, often resulting in a decline in market share or long-term potential.

Strategy for Cash Cows

To 'milk' them for cash by minimizing investment, maintaining their market share (if possible without large investment), and using profits to fund Stars and promising Question Marks. Harvesting is a common approach.

Strategy for Dogs

Often involves divesting (selling off or discontinuing) the product. Harvesting may be used to extract any remaining value before divestment by minimizing costs.

Strategy for Stars

Requires significant investment to maintain growth and market share in a rapidly expanding market, aiming to turn them into future Cash Cows. Harvesting is generally not applied.

Strategy for Question Marks (Problem Children)

Requires careful evaluation and significant investment to grow market share and turn them into Stars, or divestment if their potential is deemed too low. Harvesting is generally counterproductive as it limits growth potential.

Penetration Pricing

Setting a low price for a new product to attract customers and gain market share.

Price Skimming

Setting a high price for an innovative product to maximize revenue from segments willing to pay.

Loss Leader

Pricing a product below cost to attract customers to buy other profitable items.

Dynamic Pricing

Adjusting prices based on market demand patterns, often employed by online retailers.

Competitive Pricing

Setting prices based on the prices charged by competitors.

Contribution Pricing

Pricing that covers direct costs and contributes to covering indirect costs.

Demand Elasticity

A measure of how much the quantity demanded of a good responds to a change in price.

Price Elastic Demand

When a price increase leads to a proportionally larger decrease in quantity demanded.

Price Inelastic Demand

When a price increase leads to a proportionally smaller decrease in quantity demanded.

Substitutes

Products that can replace each other; their availability affects price elasticity.

Brand Loyalty

The tendency of consumers to continue buying a particular brand due to perceived value.

Below the Line Promotion

Direct means of communication with consumers, often through targeted marketing efforts.

Through the Line Promotion

Combining both above the line and below the line marketing strategies.

Sales Promotions

Short-term incentives to encourage the purchase of a product, such as discounts or special offers.

Public Relations (PR)

Managing communication between an organization and the public to foster a positive image.

Personal Selling

One-on-one interaction between a salesperson and a customer to promote products.

Customer Experience

The overall impression customers have based on their interactions with a brand.

E-commerce

Buying and selling of goods and services over the internet.

Customer Service

Support offered to customers before, during, and after purchasing products.

Retailer Markup

The additional cost added by retailers to cover expenses and generate profit.

Logistics

The management of the flow of goods from origin to destination.

Supply Chain Management

The management of the entire production flow of a good or service.

Intensive Distribution

A distribution strategy aimed at placing products in as many outlets as possible.

Exclusive Distribution

Limiting product availability to a select group of retailers to maintain a prestigious image.

Product Life Cycle

The stages a product goes through from introduction to decline. development, introduction, growth, maturity, decline

Development Stage

The initial phase where product ideas are generated and tested.

Introduction Stage

The phase where the product is first launched to the market.

Growth Stage

When sales begin to increase rapidly as the product gains acceptance.

Maturity Stage

Sales growth slows as the product reaches peak market penetration.

Decline Stage

Sales decrease as the product becomes outdated or loses market relevance.

Extension Strategies

Techniques to prolong the life cycle of a product reaching decline.

Product Improvements

Modifying existing products to enhance appeal and extend their life cycle.

Line Extensions

Introducing variations of an existing product to appeal to different customer segments.

Repositioning

Changing the target market or perception of a product to revive interest.

Informative Advertising

Advertising that seeks to educate consumers about a product.

Persuasive Advertising

Advertising designed to convince consumers to prefer one product over another.

Brand Recognition

The public's ability to identify a brand by its attributes.

Brand Equity

The additional value a branded product has compared to a non-branded version.

Market Research

Gathering information about consumer needs, preferences, and market trends.

Target Market

A specific group of consumers at which a company aims its products and services.

Market Segmentation

Dividing a market into distinct groups of buyers with different needs or behaviors.

Value Proposition

The promise of value to be delivered to customers and why they should buy it.

Customer Feedback

Information provided by customers about their experiences with a product or service.

Brand Ambassadors

Individuals who promote and positively advocate for a brand.

Consumer Behavior

The study of individuals' buying habits and the factors that influence them.

Sustainable Marketing

Promoting products based on their long-term benefits for society and the environment.

Corporate Image

The perception of a company as a whole, influenced by branding and customer experiences.

Cross-Promotion

Marketing campaigns that promote related products to encourage purchases.

Market Positioning

The process of defining how a product is perceived in comparison to competitors.

Promotional Mix

The combination of promotional tools used to reach marketing objectives.

Pricing Objectives

Goals that companies aim for in their pricing strategy.

Value-Based Pricing

Setting prices based on perceived value rather than solely on cost.

Marketing Automation

Technology that manages marketing processes and campaigns across multiple channels.

Social Media Marketing

Using social media platforms to promote products and engage with customers.

Influencer Marketing

Partnering with influential people to promote products to their followers.

Content Marketing

Creating and distributing valuable content to attract and engage a target audience.

Search Engine Optimization (SEO)

Enhancing online content to rank higher in search engine results pages.

Email Marketing

Using emails to send targeted messages to potential and existing customers.

Affiliate Marketing

A performance-based marketing strategy where a business rewards outside partners for generating traffic.

Customer Relationship Management (CRM)

Systems used to manage interactions with customers and analyze data.

User-Generated Content

Content created by customers that promotes products or services.

Brand Loyalty Programs

Incentives to encourage customers to continue buying a brand's products.

Experiential Marketing

Creating immersive experiences for customers to engage with a brand.

Retail Environment

The physical space where products are sold, influencing purchasing behavior.

Merchandising

The activities related to promoting products at retail locations.

Multichannel Retailing

Selling products through multiple channels, such as online, in-store, and mobile.

Customer Journey

The complete experience a customer has with a brand, from awareness to purchase and beyond.

Omnichannel Marketing

Integrating all channels of marketing to provide a seamless customer experience.

Tangible Evidence

Physical proof of a product or service that customers can evaluate.

Digital Footprint

The trail of data left by interactions in the digital environment.

Logistical Support

Assistance in managing the flow of products from manufacturer to end customer.

Market Differentiation

Strategies businesses employ to distinguish their products from competitors.

Branding Strategy

A long-term plan for the development of a successful brand.

Product Differentiation

Making a product distinct from others to attract a specific target market.

Trade Marketing

Marketing strategies focused on increasing demand within supply chains.

Relationship Marketing

Building stronger connections with customers to foster loyalty.

Cross-Selling

Encouraging customers to purchase related or complementary products.

Upselling

Encouraging customers to purchase a more expensive product or upgrade.

Lifetime Value (LTV)

The total worth of a customer over the entire duration of their relationship with a business.

Customer Churn Rate

The rate at which customers stop doing business with a company.