4.5 The four 4Ps: product, price, promotion & place

Maturity

or saturation: sales fail to grow, but they do not decline significantly either.

Predatory pricing

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

Consumer durables

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

Extension strategies

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

Psychological pricing

: setting prices that take account of customers perception of value of the product.

Growth

: if the product is effectively promoted and well received by the market, then sales should grow significantly.

Promotional pricing

: special low prices to gain market share or sell off excess stock includes "buy one get one free.

Introduction

is when the product has just been launched after development and testing.

emotional attachment

A(n) can develop between the brand and customers, increasing customer loyalty.

Market skimming

: setting a high price for a new product when a firm has a unique or highly differentiated product with low price elasticity of demand.

Boston Consulting Group

(BCG) matrix: method of analyzing the product portfolio of a business in terms of market share and market growth.

Loss leader

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

Internet

(online) marketing refers to advertising and marketing activities that use the , email and mobile communications to encourage direct sales via electronic commerce.

Penetration pricing

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

Brand

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

Channel of distribution

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

Promotion mix

: combination of promotional techniques that a firm uses to communicate the benefits of its products to customers.

Product

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

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

Growth

if the product is effectively promoted and well received by the market, then sales should grow significantly

Maturity or saturation

sales fail to grow, but they do not decline significantly either

Extension strategies

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

Boston Consulting Group (BCG) matrix

method of analyzing the product portfolio of a business in terms of market share and market growth

If its a newly launched product, its going to need heavy promotional costs to help it become established

this finance could come from the cash cow

Brand

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

Brand awareness

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

Brand loyalty

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

Brand value (or brand equity)

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

Family branding

marketing strategy that involves selling several related products under one brand name (also known as umbrella branding)

Product branding

each individual product in a portfolio is given its own unique identity and brand image (also known as individual branding)

Company or corporate branding

company name is applied to products and this becomes the brand name

Own-label branding

retailers create their own brand name and identity for a range of products

Manufacturers brands

producers establish the brand image of a product or a family of products, often under the company's name

Cost-plus pricing

adding a fixed mark-up for profit to the unit price of a product

Penetration pricing

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

Market skimming

setting a high price for a new product when a firm has a unique or highly differentiated product with low price elasticity of demand

Psychological pricing

setting prices that take account of customers perception of value of the product

Loss leader

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

Promotional pricing

special low prices to gain market share or sell off excess stock includes "buy one get one free"

Predatory pricing

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

Promotion

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

Above-the-line promotion

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

Below-the-line promotion

promotion that is not a directly paid-for means of communication but based on short-term incentives to purchase, e.g

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

Promotion mix

combination of promotional techniques that a firm uses to communicate the benefits of its products to customers

Viral marketing

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

Guerrilla marketing

unconventional way of performing marketing activities on a very low budget

Channel of distribution

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