Marketing Mix 4Ps Lecture Review

A comprehensive set of vocabulary flashcards covering the 4Ps of marketing: Product, Price, Place, and Promotion, based on the lecture notes.

Consumer goods

Products that can be durable like clothes and furniture, or non-durable like food and drink.

Consumer services

Services provided to individuals, including education and consumer banking.

Producer services

Services that assist other businesses, such as accounting, auditing, and market research.

Producer goods

Items used to help with the production process, such as trucks and machinery.

USP (Unique Selling Point)

A special feature of a product that differentiates it from competitors and provides a competitive advantage.

Brand name

A unique name for a product that distinguishes it from other brands.

Brand loyalty

When consumers repeatedly purchase the same brand and prefer it over others.

Brand image

The specific identity and personality given to a product.

Packaging

The container for a product used for protection, ease of use, branding, and promotional appeal.

Product Life Cycle

A model showing the sales of a product from its introduction through to its eventual decline.

Introduction (PLC Stage)

The initial phase involving high research and development costs, low sales, and potentially negative profit.

Growth (PLC Stage)

The phase characterized by rapid growth in sales and profits as customer awareness and demand increase.

Maturity (PLC Stage)

The phase where sales reach their peak and competition is intense, but profits begin to fall.

Decline (PLC Stage)

The final stage where sales and profits fall, leading to limited production or withdrawal from sale.

Extension strategy

A method used to keep a product in the maturity stage and prolong its life cycle, such as rebranding or price reduction.

Cost-plus pricing

Setting a price by adding a fixed amount or percentage markup to the cost of making the product.

Competitive pricing

Setting a product's price based on the prices charged by competitors.

Penetration pricing

Setting a very low price to gain market share quickly, then gradually increasing it later.

Price skimming

Setting a high price before competitors enter the market, then gradually lowering it over time.

Promotional pricing

Offering better value for money for a short period to attract customers away from competitors.

Dynamic pricing

A strategy where businesses change the price of a product depending on the current level of demand.

Cost plus price formula

Calculated as $\text{Cost plus price} = (\frac{\text{total cost}}{\text{total output}}) + \text{percentage markup}$.

Distribution channels

The means by which a product is passed from the place of production to the consumer.

Intermediaries

Links within a distribution channel, such as wholesalers or retailers.

Breaking bulk

The process where wholesalers buy large quantities of goods and divide them into smaller quantities for retailers.

Agent

An intermediary used by producers to sell products on their behalf, often when entering new markets.

Promotion

The process of informing customers about products and persuading them to purchase.

Public relations (PR)

A form of promotion used to maintain a company's image through activities like sponsorships, donations, or press releases.

Marketing budget

A financial plan specifically allocated for the marketing activities of a product.