Marketing Mix and Distribution Strategies #8/9

These flashcards cover key concepts related to the marketing mix and distribution strategies, focusing on product definitions, classifications, and the distribution process.

Marketing Mix (4Ps)

A framework describing the four key elements of marketing: Product, Price, Place (Distribution), and Promotion.

Product

A bundle of physical, service, and symbolic characteristics that fulfill consumer needs.

Consumer Product Classifications

Categories of consumer products including Convenience, Shopping, Specialty, and Unsought goods.

Convenience Products

Low effort, frequent purchases at low prices with mass promotion and intensive distribution.

Shopping Products

Infrequent purchases with higher prices involving brand comparisons and selective distribution.

Specialty Products

Unique products with high prices and strong brand loyalty, sold through exclusive distribution.

Unsought Products

Products that are not well-known or often thought about, requiring aggressive promotion.

Business Goods Classifications

Categories of products used in production or operation including raw materials, component parts, and capital goods.

Distribution Channel

The path goods take from the producer to the consumer, which can be direct or indirect.

Goal of Distribution Strategy

To deliver the product to the right place, at the right time, in the right form.

Intermediaries

Entities that help reduce the number of transactions between producers and consumers.

Direct Channels

Distribution channels with no intermediaries, exemplified by companies like Dell and Tesla.

Indirect Channels

Distribution channels that involve intermediaries such as wholesalers and retailers.

Channel Design Criteria

Factors to consider when designing a distribution channel, including economic, control, and adaptability.

Product Life Cycle

Stages through which a product goes that influence its distribution strategy: Introduction, Growth, Maturity, and Decline.

Distribution Intensity

The degree of market coverage a product receives, categorized as Intensive, Selective, or Exclusive.

Push Strategy

A distribution strategy where manufacturers push products to intermediaries and consumers.

Pull Strategy

A distribution strategy that creates consumer demand so they seek out the product.