Marketing Strategy: Product, Pricing, Distribution, and Promotion (Chapter 12) Cartes

What are the four elements of the marketing mix?

Product, Price, Promotion, and Distribution.

What is the role of product in the marketing mix?

Products are developed, classified, and identified as part of the marketing strategy.

Why is price important in the marketing mix?

Price directly relates to revenue and profits and can be adjusted quickly.

What factors affect distribution decisions?

Marketing channels and intensity of market coverage.

What activities are involved in promotion?

Promotional strategies and promotional positioning.

What is competitive advantage in marketing?

It occurs when a firm excels at one or more elements of the marketing mix.

What is the marketing mix?

A part of the marketing strategy involving decisions regarding controllable variables.

What are the steps in developing new products?

Idea development, new idea screening, business analysis, product development, test marketing, and commercialization.

How are products classified?

Products can be classified as consumer products (convenience, shopping, specialty) and business products.

What is a product line?

A group of closely related products treated as a unit due to a similar marketing strategy.

What is a product mix?

All the products offered by an organization.

What is branding?

The process of naming and identifying products.

What is a trademark?

A legally protected word, phrase, symbol, design, or combination of these elements.

What are manufacturer brands?

Brands owned by the manufacturer to identify products from production to purchase.

What are private distributor brands?

Brands owned and controlled by a wholesaler or retailer, often costing less than manufacturer brands.

What are generic products?

Products with no brand name, often in simple packaging with only their generic name.

What is packaging in marketing?

The external container that holds and describes the product, influencing consumer attitudes.

What is labeling?

The presentation of important information on the package, closely associated with packaging.

What are the four common pricing objectives?

Maximizing profits, boosting market share, maintaining the status quo, and survival.

What is price skimming?

Charging the highest possible price for a product to generate revenue from buyers willing to pay.

What is penetration pricing?

Setting a low price to help a product enter the market and gain market share rapidly.

What is psychological pricing?

Encouraging purchases based on emotional rather than rational responses to the price.

What are marketing channels?

Groups of organizations that move products from producers to customers.

What is the role of retailers in the marketing channel?

Retailers buy products from manufacturers and sell them to consumers for home use.

What is place utility in retailing?

The value added by making products available at convenient locations.

What is time utility in retailing?

The value added by making products available when consumers want them.

What is ownership utility in retailing?

The value added by transferring ownership of products to consumers.

What is a department store?

A large, full-service store organized by departments, such as Nordstrom or Macy's.

What is an internet retailer?

A direct marketer providing most products over the internet, like Amazon.

What is a convenience store?

A small, self-service store carrying many items for immediate consumption.

What type of retailer includes Target and Walmart?

Superstore

What is a hypermarket?

The largest retail stores that provide a wide range of food and nonfood products.

Name an example of a warehouse club.

Costco, BJ's Wholesale Club, or Sam's Club.

What is the purpose of wholesalers in the distribution channel?

They act as intermediaries who buy from producers and sell to retailers.

What is direct marketing?

The use of nonpersonal media to communicate products and opportunities to purchase.

What does supply chain management involve?

Connecting and integrating all parties in the distribution system to satisfy customers.

What are the three types of distribution intensity?

Intensive, selective, and exclusive distribution.

What is intensive distribution?

Making a product available in as many outlets as possible.

What is the role of logistics management?

Planning, implementing, and controlling the flow and storage of products.

What is the promotion mix?

A combination of advertising, personal selling, publicity, and sales promotion.

What is an advertising campaign?

A series of advertisements designed to reach a particular target audience.

What is personal selling?

Direct, two-way communication with buyers and potential buyers.

What distinguishes publicity from advertising?

Publicity is nonpersonal communication not paid for directly by the firm.

What is sales promotion?

Direct inducements offering added value or incentives for buyers.

What is a push strategy in marketing?

Motivating intermediaries to push the product down to their customers.

What is a pull strategy in marketing?

Using promotion to create consumer demand for a product.

What are the objectives of promotion?

To stimulate demand, stabilize sales, and inform, remind, and reinforce customers.

What is promotional positioning?

Using promotion to create and maintain an image of a product in buyers' minds.

What is a large-format convenience store known for?

Massive travel centers and homemade food offerings.

How does a product's life cycle stage affect its marketing strategy?

It influences how the product is marketed at different stages of its life.

What are the two ways to set the base price for a new product?

Cost-based pricing and value-based pricing.

What does the personal selling process involve?

Engaging with customers to understand their needs and offer solutions.