THE 4Ps (Marketing Mix)

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23 Terms

1
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What is a product?

Anything that satisfies a consumer's want or need — tangible or intangible.

2
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What are the three product levels?

Three Product Levels (C-A-A):

Core customer value → the problem being solved (e.g. hygiene, eco-living).

Actual product → features, design, brand name, packaging.

Augmented product → warranty, support, delivery, customer service.

3
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What's involved in product classifications?

Consumer products: convenience, shopping, specialty, unsought.

Industrial products: materials/parts, capital items, supplies/services.

4
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What is the role of branding in marketing?

Branding: Creates identity & trust. Strong brands have high brand equity (positive consumer response due to brand knowledge).

5
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What are the three main functions of packaging? Refer to MGAC

Protects, informs, and promotes. Should be functional, ethical, and distinctive.

Example (WGAC): Bright wrapping and clever wording make toilet paper fun and uses 100% recycled packaging which reinforces the company’s purpose

6
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What is the product lifecycle?

Product Life Cycle (PLC):

Introduction → Growth → Maturity → Decline.

Each stage affects pricing, promotion, and distribution.

7
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At which PLC stage is Who Gives A Crap likely positioned, and why?

Stage: Growth

Why:

Rapid sales increase & strong brand awareness

Expanding product range (recycled + bamboo, tissues, towels)

Entry into retail (e.g. Woolworths) + global online growth

High marketing investment to reinforce differentiation

Growing competition from other eco-friendly paper brands

8
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What is price?

The amount of money customers exchange for a product's benefits — the only "P" generating revenue.

9
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What are the three main pricing approaches?

Three Major Pricing Approaches:

Customer Value-Based: set by buyer perceptions of value.

Cost-Based: set by cost + markup.

Competition-Based: set relative to rivals’ pricing.

10
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Define market-skimming and market-penetration pricing.

Pricing Strategies:

Market-Skimming: high initial prices → “premium perception.”

Market-Penetration: low prices → “rapid adoption.”

Psychological Pricing: using perceived value (e.g. $9.99).

Segmented Pricing: different prices for segments (students, locations).

Value-Added Pricing: add features to justify premium (e.g., eco donations).

11
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What is price elasticity?

Price Sensitivity (Elasticity):Elastic → big demand change when price changes.Inelastic → little demand change (e.g., necessities like toilet paper).

12
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How does WGAC justify its higher prices?

Example (WGAC): Uses value-based pricing — consumers pay slightly more knowing profits support global sanitation projects.

13
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What is place? (distribution)

Activities that make the product available to consumers at the right time and location.

14
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What is the difference between direct and indirect channels?

Distribution Channels:

Direct: producer → consumer (e.g. website, subscription).

Indirect: intermediaries like wholesalers or retailers.

15
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What are the three levels of distribution intensity?

Distribution Intensity:

Intensive: sold everywhere (e.g. Coke).

Selective: limited outlets.

Exclusive: one retailer per region.

16
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Why does WGAC use direct online channels?

Example (WGAC): Primarily uses direct online distribution via subscriptions, reducing intermediaries and supporting eco goals.

17
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What is promotion?

All communication activities used to inform, persuade, and remind customers.

18
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What is IMC?

Integrated Marketing Communications (IMC):

Delivering a consistent brand message across all channels.

19
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What are the 5 elements of the promotion mix?

Promotion Mix (A-P-S-S-D):

Advertising – paid, non-personal, wide reach.

Personal Selling – one-on-one persuasion.

Sales Promotion – short-term incentives (coupons, deals).

Public Relations (PR) – image building via goodwill.

Direct & Digital Marketing – targeted and interactive.

20
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Define push vs pull promotion.

Push vs Pull Strategies:

Push: promote to intermediaries → they push to consumers.

Pull: advertise to consumers → they create demand from retailers.

21
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What are the three main advertising appeal types?

Advertising Appeals:

Rational (facts, logic)

Emotional (humour, warmth, fear)

Moral (ethics, social cause)

22
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How does WGAC communicate its message effectively?

Example (WGAC): Uses humour and storytelling (emotional + moral appeal).Their PR and social media campaigns reinforce their mission — “Good for your bum, great for the world.”

23
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“How does Who Gives A Crap manage its product line, and why is this approach effective?”

Who Gives A Crap manages its product line by offering a small, focused set of closely related product items that meet a common end use — sustainable hygiene. Its two core toilet paper lines, made from either 100% recycled paper or premium bamboo, represent a line extension strategy within the same category.