Podcast
Questions and Answers
What is the primary purpose of a Unique Selling Proposition (USP)?
What is the primary purpose of a Unique Selling Proposition (USP)?
- To create a brand name
- To differentiate a product from competitors (correct)
- To identify new market trends
- To increase production costs
A strong USP should focus on addressing emotional needs of customers.
A strong USP should focus on addressing emotional needs of customers.
True (A)
What are three essential factors to consider when determining your target market?
What are three essential factors to consider when determining your target market?
Gender, age, and income are three crucial factors to consider when identifying the target market.
The marketing mix, also known as the 7Ps, includes Product, Price, Place, Promotion, People, ____, and Positioning.
The marketing mix, also known as the 7Ps, includes Product, Price, Place, Promotion, People, ____, and Positioning.
Match the following marketing mix elements with their appropriate descriptions:
Match the following marketing mix elements with their appropriate descriptions:
Which pricing method is based on the interaction of demand and supply?
Which pricing method is based on the interaction of demand and supply?
Value for Money Pricing aims to maximize profit on each individual sale.
Value for Money Pricing aims to maximize profit on each individual sale.
In the context of marketing, what does the term 'Place' refer to?
In the context of marketing, what does the term 'Place' refer to?
The ______ distribution channel involves a producer selling directly to the consumer without intermediaries.
The ______ distribution channel involves a producer selling directly to the consumer without intermediaries.
Match the pricing techniques with their descriptions:
Match the pricing techniques with their descriptions:
Which of these is NOT a stage in the distribution channel?
Which of these is NOT a stage in the distribution channel?
Marked Down Pricing is typically used when demand is high and competition is low.
Marked Down Pricing is typically used when demand is high and competition is low.
What is the primary goal of Psychological Pricing?
What is the primary goal of Psychological Pricing?
Flashcards
Unique Selling Proposition (USP)
Unique Selling Proposition (USP)
A factor that differentiates a product from competitors, addressing customer desires.
Determining Your Target Market
Determining Your Target Market
Identifying the group most likely to buy your product or service.
Market Targeting
Market Targeting
The process of identifying buyers with shared needs and characteristics.
Product
Product
Any goods or services produced to meet consumer preferences.
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Promotion
Promotion
Activities designed to communicate a product or brand to attract buyers.
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Pricing
Pricing
The strategy used to set a product's sale price based on various factors.
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Place
Place
The distribution channels used to deliver the product to consumers.
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People
People
Refers to the individuals involved in service delivery and customer interaction.
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Cost-plus Method
Cost-plus Method
A pricing strategy where cost is calculated and a profit margin is added.
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Market-Oriented Method
Market-Oriented Method
A pricing strategy based on demand and supply interaction.
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Loss Leader Strategy
Loss Leader Strategy
Selling products at a loss to attract customers to other items.
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Psychological Pricing
Psychological Pricing
Setting prices slightly lower to create a perception of value.
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Marked Down Pricing
Marked Down Pricing
Temporary price reductions to attract price-sensitive consumers.
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Direct Distribution
Direct Distribution
A distribution method where the producer sells directly to the consumer.
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People in Marketing
People in Marketing
The staff and audience involved in marketing efforts.
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Entrepreneurship: Unique Selling Proposition (USP)
- A USP is how you sell a product or service to a customer, focusing on their desires and needs.
- It's crucial for effective selling and advertising.
- A USP differentiates a product from competitors, highlighting aspects like low cost, high quality, or being the first of its kind.
- Examples: Revlon emphasizing "hope," airlines offering different services, or stores focusing on luxury or bargains.
- Determining your USP involves:
- Listing unique product/service features and benefits.
- Identifying the emotional needs your product/service fulfills.
- Highlighting aspects not imitable by competitors.
- Creating concise, clear phrases about your product/service.
- Answering the customer's "what's in it for me?" question.
Marketing Mix (7Ps)
- Product: Goods/services designed to meet consumer wants, tastes, and preferences. How can you make your product more appealing than competitors'?
- People: Everyone involved in the product or service, from the team to marketers and customers. Consider how this group influences your brand/product.
- Promotion: Activities to communicate your product or service to customers, attracting them over competitors. How can you get customers to buy this product?
- Packaging: Protection, containment, information, utility, and promotion aspects of packaging.
- Pricing: Value of money exchanged for a product/service, often using methods such as cost-plus or market-oriented pricing, loss leader strategies, and psychological pricing.
- Place: Location of exchange (physical or online). Effective distribution channels.
- Positioning: How your brand/product is seen by the customer, considering competitor pressures. How does your brand/product differentiate itself?
Target Market
- The target market includes people most likely to buy your product or service, having similar needs or characteristics.
- Identifying a target market involves questions like: customer gender/age, location, profession, income level, etc.
- Research the target market, understanding their needs and characteristics.
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