Marketing Mix Lecture Review

Flashcards covering key vocabulary from the marketing mix lecture, including product, place, price, promotion, people, packaging, and positioning.

Marketing Mix

A foundational concept typically started with product, involving various elements like communication, promotion, price, and placement to achieve strategic sales and performance.

Product (Marketing Mix)

Any goods or services produced to meet consumers' wants, tastes, and preferences, typically the starting point of a marketing strategy.

Goods

Tangible items like tires, MP3 players, and clothing, which can be categorized into business goods or consumer goods.

Services

Intangible offerings like hair salons and accounting firms, divided into consumer services and professional services.

Consumer Goods

Products whose demand is a 'direct demand', often bought by a great number of scattered buyers in small values, influenced by emotions, and where after-sale service is important for durables.

Business Goods

Products whose demand is a 'derived demand' from consumer goods, with a limited number of concentrated buyers, involving high purchase amounts, not influenced by emotions, and where after-sale service is of paramount importance.

Consumer Services

Services provided directly to end-users, such as lawn care or hair styling.

Professional Services

Specialized services like engineering, accounting, or consultancy.

Place (Marketing Mix)

The location where the buyer and seller exchange goods or services, also known as the distribution channel, which can include physical or virtual stores.

Distribution Channel

The system that provides a link between production and consumption, indicating how products reach the customer.

Wholesaler

An intermediary that buys and stores large quantities of goods from producers and then supplies retailers with smaller quantities.

Retailer

A company that buys products from a manufacturer or wholesaler and sells them to end users or customers.

Direct-Marketing Channel

A distribution channel with no intermediary levels, where the manufacturer sells directly to customers.

Price (Marketing Mix)

The value of money exchanged for a product or service; the amount or value a customer gives up to enjoy the benefits of having or using a product or service.

Pricing Strategy

Methods used by businesses to set prices for products and services to maximize profits on sales, considering factors like market conditions, costs, and customer perceived value.

Penetration Pricing

Setting an artificially low price for products and services to gain market share, which can then be increased once market share is attained.

Skimming Pricing

Charging a higher initial price and then slowly lowering it to make the product available to a wider market, typically used when a company has a considerable competitive advantage that may not be sustainable.

Competition Pricing

A pricing method where a seller uses prices of competing products as a benchmark instead of considering own costs or customer demand.

Product Line Pricing

Reviewing and setting prices for multiple products a company offers in coordination with one another to maximize sales of complementary products.

Bundle Pricing

Placing several products or services together in a single package and selling for a lower price than if the items were sold separately.

Premium Pricing

Setting the price of a product higher than similar products to create the perception that it has a higher value.

Psychological Pricing

Setting prices slightly lower than rounded numbers (e.g., $9.99) in the belief that customers perceive them as significantly lower prices.

Optional Pricing

A strategy where a main product has few features and is priced low, with the company earning more from selling optional or accessory products at a premium.

Cost Plus Pricing

Adding a markup percentage to the total cost (direct material, direct labor, and overhead) of goods and services to arrive at a selling price.

Value Based Pricing

A price-setting strategy where prices are set primarily based on consumers' perceived value of the product or service.

Promotion (Marketing Mix)

The complete set of activities that communicate the product, brand, or service to the user, aiming to create awareness, attract, and induce consumers to buy.

Promotional Mix

The combination of different communication methods used to promote a product, including advertising, public relations, personal selling, sales promotions, and direct marketing.

Advertising

A communication method involving various media (radio, TV, print, electronic) to convey messages about a product or brand to a target audience.

Word-of-Mouth Advertising

A credible form of advertising where satisfied customers recommend a product or service to others, influencing new customers.

Generic Promotion

The promotion of a particular commodity without reference to a specific producer, brand, or manufacturer, often self-funded by producers to expand total demand.

Public Relations (PR)

Sharing information with the public using unpaid platforms (e.g., social media, press releases) to shape public perception and present a positive image of a business.

Personal Selling

When an individual salesperson sells a product, service, or solution to a client by matching benefits to specific needs, often involving the development of long-standing client relationships.

Sales Promotion

Any initiative undertaken by an organization to promote an increase in sales, usage, or trial of a product or service, often involving techniques like free gifts, samples, or special pricing.

Direct Marketing

A promotional method involving presenting information about a company, product, or service directly to a target customer without an advertising middleman, often via email, mail, or phone calls.

People (Marketing Mix)

Refers to the staff, audience, and advertisers involved in the product or service, recognized as a crucial element, especially in the services industry, for creating customer awareness, interest, and closing sales.

Packaging (Marketing Mix)

The outside appearance of a product and how it is presented to customers, serving important functions like protection, containment, information, utility of use, and promotion.

Protection (Packaging Function)

A major function of packaging that shields products from natural deterioration, physical damage, and ensures safety for harmful goods, also contributing to waste reduction.

Containment (Packaging Function)

A packaging function that involves merging unit loads for shipping, using adhesives, straps, or wraps to secure multiple products together.

Information (Packaging Function)

Packaging's role in conveying necessary details to consumers, such as product features, ingredients, net weight, manufacturer details, price, usage instructions, nutritional benefits, and warning messages.

Utility of Use (Packaging Function)

The convenience aspect of packaging, designed for ease of use, dispensing, or disposal, such as prepackaged meals or disposable medical packaging.

Promotion (Packaging Function)

The use of attractive colors, logos, symbols, and captions on packaging to promote the product and influence customer purchasing decisions.

Positioning (Marketing Mix)

A process used by marketers to create a distinct image of a product or service in the minds of a target market, differentiating it from competitors.

Functional Positions

A basic concept of positioning that deals with solving a problem, providing benefits, and gaining a favorable perception from investors, stockholders, and consumers.

Symbolic Positions

A basic concept of positioning that deals with self-image enhancement, ego identification, belongingness, social meaningfulness, and affective fulfillment.

Experiential Positions

A basic concept of positioning that deals with providing sensory or cognitive stimulation.

Competitive Advantage

Some trait, quality, or capability that allows a company to outperform the competition, giving its product, service, or brand an edge in purchasing decisions through factors like price, features, or unique benefits.