Comprehensive Marketing 201 Flashcards: 4 Ps, Product Life Cycle, Pricing, Distribution & Promotion

Marketing

Creating value for customers and capturing value for the organization.

Marketing Mix (4 Ps)

Product, Price, Place, Promotion.

Product

Anything offered to satisfy a want or need.

Core Benefit

The basic problem the product solves.

Actual Product

Physical product, brand, features, design.

Augmented Product

Extra services like warranties or support.

Consumer Products

Bought for personal or household use.

Industrial Products

Used to produce other goods or services.

Convenience Product

Inexpensive, frequent purchase.

Shopping Product

Compared on price and quality.

Specialty Product

Strong brand loyalty.

Unsought Product

Not actively searched for.

Durable Good

Lasts a long time.

Nondurable Good

Used quickly.

Product Mix

Total group of products sold by a firm.

Product Mix Width

Number of product lines.

Product Mix Depth

Variations within a product line.

New Product Development (NPD)

Process of developing and launching new products.

Stages of NPD

Idea → Screen → Concept → Strategy → Analysis → Development → Test → Commercialization.

Product Life Cycle (PLC)

Introduction, Growth, Maturity, Decline.

Price

Money, time, effort, and psychological cost.

Pricing Goals

Profit, market share, survival, quality leadership.

Cost-Plus Pricing

Cost + markup.

Experience Curve

Costs fall as experience increases.

Economies of Scale

Costs fall as production volume increases.

Price Elasticity of Demand

Sensitivity of demand to price changes.

Elastic Demand

Small price change → large demand change.

Inelastic Demand

Price change has little effect on demand.

Psychological Pricing

Prices influence perception ($9.99).

Discounting

Temporary price reductions.

Leasing

Paying to use rather than own.

Geographical Pricing

Pricing based on location/transportation.

Distribution

Making products available at the right time and place.

Time Utility

Product available when needed.

Place Utility

Product available where needed.

Channel of Distribution

Path product takes from producer to consumer.

Channel Members

Producer, wholesaler, retailer, consumer.

Intermediaries

Firms that help move products through channels.

Transactional Services

Buying, selling, risk taking.

Logistical Services

Transportation, storage.

Facilitating Services

Financing, market research.

Intensity of Distribution

Intensive, selective, exclusive.

Channel Conflict

Disagreements among channel members.

Promotion

Communication to inform, persuade, and remind.

Promotion Mix

Advertising, PR, sales promotion, personal selling, digital.

Communication Process

Sender → Message → Medium → Receiver → Feedback.

Push Strategy

Promote to intermediaries.