Unit 4 - Chapter 26: The seven Ps of Marketing

Marketing mix

the key decisions that must be taken in the effective marketing of a product

Coordinated marketing mix

key marketing decisions complement each other and work together to give customers a consistent message about the product

Product

the end result of the production process sold on the market to satisfy a customer need

Consumer durables

manufactured products that can be reused and are expected to have a reasonably long life, such as cars

Product life cycle

the pattern of sales recorded by a product from launch to withdrawal from the market

Product portfolio

the collection of all of the products (goods and services) offered for sale by a business

Extension strategies

marketing plans that extend the maturity stage of the product before a brand new one is needed

Brand

an identifying symbol, name, image or trademark that distinguishes a product from its competitors

Brand awareness

the extent to which a brand is recognized by potential customers and is correctly associated with a particular product - can be expressed as a percentage of the target market

Brand development

measures the infiltration of product’s sales, usually per thousand population; if 100 people in 1000 buy a product, it has a brand development of 10

Brand value ( or brand equity)

the premium that a brand has because customers are willing to pay more for it than they would for a non-branded generic product

Trademark

a distinctive name, symbol, motto or design that identifies a business or its products - can be legally registered and cannot be copied

Cost-plus pricing

adding a fixed mark up to the unit cost of a product to cover overhead costs and for profit

Markup

the extra amount or percentage added to the cost of goods to give the retail or selling price

Price

Amount paid by consumers for a product

Penetration pricing

setting a relatively low price often supported by strong promotion in order to achieve a high volume of sales

Market skimming

setting a high price for a new product when a firm has a unique or highly differentiated product with low price elasticity of demand (i.e. smartphones)

Loss leaders

product sold at a very low price to encourage consumers to buy other products

Predatory pricing

deliberately undercutting competitors’ prices in order to try to force them out of the market

Premium pricing

setting a price above that of competitors with the aim of developing a superior image for the product

Promotion

the use of advertising, digital promotions, sales promotion, personal selling, direct mail, trade fairs, sponsorship and public relations to inform consumers and persuade them to buy

Promotion mix

combination of all forms of promotion used by a business for any product

Above-the-line promotion

a form of promotion that is undertaken by a business by paying for communication with consumers e.g., advertising

Below-the-line promotion

promotion that does not use directly paid-for means of communication but is based on targeting individual market segments or individual consumers with incentives to purchase, e.g., sales promotion techniques

Customer relationship management

the strategies and techniques a business uses to interact and communicate with customers

Sales promotion

incentives such as special offers of special deals directed at consumers or retailers to achieve short-term sales increases and repeat purchases by consumers

Through-the-line promotion

an integrated marketing strategy that combines elements of both above-the-line and below-the-line promotion

360-degree marketing

marketing campaign that uses a consistent marketing message through the use of all ATL and BTL platforms

Online marketing

advertising and marketing activities that use the internet, email and mobile communications to encourage direct sales via electronic commerce

Social media marketing

use of digital media platforms to promote goods or services, engage with customers, and increase brand awareness through targeted content and promotions and advertising

Viral marketing

the use of social media sites or text messages to increase brand awareness or sell products

Channels of distribution

the chain of intermediaries a product passes through from producer to final consumer

Distribution mix

combination of distribution channels by which a firm gets its products to end users

Intermediary

individual or firm that helps to distribute a product

Wholesaler

intermediary who sells products to other businesses for resale to final consumers

Retailer

intermediary who sells products directly to consumer - OWN the product

Agent

business with the authority to act on behalf of another firm

People

employees and managers of a business and how they relate to customers and communicate

Process

procedures and policies that are put in place to provide the service or the product to the consumer

Physical evidence

the ways in which the business its products are presented to customers

Intangible products

a non-physical product (a service) provided to a consumer, such as an insurance policy or a car repair

Tangible products

a physical object that can be touched, such as a building, car, tablet, computer, or clothing

Brand loyalty

Faithfulness of consumers to a particular brand, as shown by their repeat purchases, irrespective of the marketing pressure from competing brands

Industrial products

purchased by businesses, not final consumers

Consumer services

no physical existence but satisfy consumer needs in intangible ways