4Ps Long Quiz

Product

Anything that can be offered to a market for attention, acquisition, use, or consumption that want to satisfy a want or need

Product (2)

The starting point of the Marketing Mix (4Ps of Marketing

Tangible (touchable)

Goods

Intangible (untouchable)

Services

Business Product

Used to manufacture other goods or services

Consumer Product

Bought to satisfy an individual’s personal wants

Convenience Products

Customers usually buy frequently + immediately & with a minimum comparison and buying effort

Shopping Products

Less frequently purchased that customers compare carefully on quality, price, and style

Specialty Products

Unique characteristics or brand identification

Unsought Products

Consumer knows about but does not normally think of buying

Quality Level

Performance quality

Quality Conformance

Quality consistency

Features

• How you like the product 

• Which specific features did you like the most

• Which features to add to improve the product 

Design

Style and Design is another way to add customer value

Style

appearance of a product

Design

contributes to a product’s usefulness 

Branding

Process of creating a distinct identity for a business in the mind of a consumer

Brand

name/term/sign/symbol that identifies the maker or seller of a product/service

Brand Names

help consumers identify products that might benefit them

Packaging

1. Protects the product 

2. Communicating brand personality

Labeling

1. Identify the product/brand

2. Describe attributes of and provide promotion 

Intangibility

1. Customers can’t see, touch, or smell a service 

2. Can’t be inspected before purchase

Inseparability

Impossible to separate the production of a service from consumption of that service

Variability

1. The same service even if performed by the same individual for the same customer

Perishability

Impossible to store a service for later sale or consumption

New Product Failure

Because of competitive advantages, poor product positioning, bad timing

Idea Generation [Product Development Process]

Source of Ideas, Study present consumer behavior

Idea Screening [Product Development Process]

• First idea-reducing stage 

• Spot good ideas & drop poor ideas

• Strengths and Weaknesses

Idea Evaluation [Product Development Process]

• Concept testing

• Reactions from customer 

• If results are discouraging, kill the idea

Product Development [Product Development Process]

• Product concept to Physical Product

• Design a initial market strategy to introduce the product to the market

Commercialization [Product Development Process]

Actually introducing the product to the market

[Stage 1]: Market Introduction (Product Life Cycle)

1. Investing in the Future

2. Low sales because the consumers are unaware of the product 

Marketing Strategy: Invest in informative promotions

[Stage 2]: Market Growth (Product Life Cycle)

Profits go up & down

Marketing Strategy: Branch out

[Stage 3]: Market Maturity (Product Life Cycle)

1. Sales level off, profits continue to go down

Marketing Strategy: Provide satisfaction and gain consumers’ trust

[Stage 4]: Sales Decline (Product Life Cycle)

1. Time of Replacement

Marketing Strategy: Phasing out

Price

• The sum of all values that consumers give up in order to gain the benefits of having/using a product or service 

• what consumers pay to get the benefits of a product or service.

Setting Prices

1. Customer Perception of Value

2. Marketing Strategy, Objectives, and Mix

3. Market Competition

4. Product Costs

Price Skimming

Pricing strategy that charges a high initial price then gradually lowers it to attract more price-sensitive customers

Price Penetration

Charges a lower initial price to help a new product/service penetrate the market and attract more customers away from competitors

Place

Set of organizations involved in the process of making a product or service available for use/consumption

Intermediaries

Offer producers greater efficiency in making goods available to target markets

Conventional Distribution

1 or more independent producers/wholesalers, and retailers

Vertical Marketing System

Producers/wholesalers/retailers acting as a unified system 

Promotion

Process of communicating information between the seller and the potential buyer

Promotion Mix

1. Advertising 

2. Sales Promotion

3. Public Relations

4. Direct Marketing

5. Personal Selling

Advertising

Paid, non-personal promotion of goods/services

Sales Promotion

Short-term incentives to encourage the purchase of a product/service

Public Relations

Building good relations with the company’s publics 

Direct Marketing

Message normally directed to a specific person

Personal Selling

Building up buyer’s preferences and actions

Events

Tool of promotions from product launches to press conferences

Advocacy

Influence public policy and resource allocation