Marketing Mix: 7 Ps

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the 'Price' element of the marketing mix, and what are some of its components?

The 'Price' element of the marketing mix refers to the prices charged for different versions (sizes) of a product, including payment terms such as credit or cash.

What is the 'Promotion' element of the marketing mix, and what are some of its components?

The 'Promotion' element of the marketing mix refers to specific advertising that reaches the target market, and can be achieved through advertising, sponsorship, sales promotions, and sales teams.

What is the 'Physical Environment' element of the marketing mix?

The 'Physical Environment' element of the marketing mix refers to the physical premises of a business.

What is the 'People' element of the marketing mix, and who are some examples of the types of people involved?

The 'People' element of the marketing mix refers to those who are directly or indirectly involved in the marketing of a product, such as people who serve customers in a shop. Signup and view all the answers

What is the 'Product' element of the marketing mix, and what are some of its components?

The 'Product' element of the marketing mix refers to the physical features and specifications of a product, including its design, reliability, and durability. Signup and view all the answers

What is the 'Process' element of the marketing mix, and how can it affect customer satisfaction?

The 'Process' element of the marketing mix refers to how a product is bought, and can affect customer satisfaction through the ease and convenience of the process. Signup and view all the answers

What are some external influences that can impact the marketing mix, and what does PEST-C stand for?

External influences that can impact the marketing mix include Political and Legal, Economic, Social, Technological, and Competition factors, which are collectively known as PEST-C. Signup and view all the answers

What is the 'Place' element of the marketing mix, and what are some of its components?

The 'Place' element of the marketing mix refers to the distribution channel, including wholesalers, distributors, and retailers, which move goods from the source to the final customer. Signup and view all the answers

What is the main characteristic of the decline stage of the product life cycle?

Sales are falling and growth rate is negative. Signup and view all the answers

What is the purpose of the Boston Matrix in portfolio analysis?

To analyze the overall position of products in terms of market share and growth of market. Signup and view all the answers

What is the main reason for the growth in sales of the loom bands?

Increased awareness of the product, trends, and word of mouth advertising. Signup and view all the answers

What is the main characteristic of the maturity stage of the product life cycle?

The rate of growth begins to slow down. Signup and view all the answers

What is one possible extension strategy to prevent the decline of a product?

Increasing promotional expenditure to renew interest and increase usage. Signup and view all the answers

What is the name given to products in the Boston Matrix with a high market share but in a slow growth market?

Cash Cows. Signup and view all the answers

What is the main reason for the decline in sales of the loom bands?

Less interest, people finding issues with the product, and the introduction of better alternatives. Signup and view all the answers

What is the purpose of the product life cycle?

To show the different stages a product may go through from conception to withdrawal from the market. Signup and view all the answers

Study Notes

7 Ps of Marketing Mix

Price: prices charged for different versions of a product, including payment terms or credit/cash
Promotion: specific advertising that reaches the target market through advertising, sponsorship, sales promotions, and sales teams
Physical Environment: physical premises of a business
People: those directly or indirectly involved in the marketing process
Product: physical features and specifications of a product, including design, reliability, and durability
Process: how customers buy the product, affecting customer satisfaction
Place: distribution channel, including wholesalers, distributors, retailers, and direct sales (0-level channel)

Influences on Marketing Mix

Internal influences: changes in financial position, staff, operations, and objectives
External influences: PEST-C (Political, Economic, Social, Technological, and Competition factors)

Types of Products

Consumer Products: goods bought for consumption by the general public
- Convenience items: frequently purchased goods, e.g., milk
- Shopping goods: less frequently purchased goods, e.g., washing machines
- Specialty products: rarely purchased goods, e.g., new cars
Industrial Products: goods bought for use in business processes

Product Life Cycle

Development: product development, testing, and investment in research and development (R&D)
Introduction: product launch, slow sales, and high investment in promotion
Growth: rapid sales increase, customer awareness, and promotion
Maturity: slowing growth rate, competitor entry, and potential sales loss
Decline: falling sales, negative growth rate, and better product alternatives

Value of Product Life Cycle

Shows different stages a product goes through from conception to withdrawal
Duration and nature of each stage vary from product to product

Extension Strategies

Increase promotional expenditure to renew interest
Revamp product, e.g., new flavors
Find new target market segments, e.g., new countries
Find new usage occasions for the product

The Boston Matrix

Plots product position in terms of market share and market growth
Products are categorized into four quadrants:
- Dogs: low market share in a slow-growth market
- Cash Cows: high market share in a slow-growth market

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge of the 7 Ps of marketing mix, including price, promotion, physical environment, people, and product. Learn how to effectively market your product or service.