Marketing Mix: The Four P's Flashcards

Study Notes

Marketing Mix

Comprises four critical factors: Product, Place, Price, and Promotion.
Developed through market research to guide designers on market needs and requirements.

Product Standardisation

Involves establishing uniform characteristics for a specific product, system, or service to streamline offerings.

Product

Defined by multiple variables, primarily through market analysis and competitive evaluation.

Place

Encompasses how products reach customers, including both physical and virtual platforms.

Price

Represents the monetary amount a customer pays for a product or service, inclusive of various pricing strategies.

Trigger Products

Designed to attract consumers with inherent function and performance capabilities essential for basic tasks.
Examples include Kitchen Aid appliances and the PS4 gaming console.

Incremental Products

Consumers engage in purchasing these products as add-ons to enhance their primary product experience.
Examples include Kitchen Aid attachments and PS4 VR rigs.

Promotion

Encompasses methods for communicating product information to consumers and stakeholders.
Includes advertising, publicity, personal selling, and more.

Penetration Pricing

Involves setting a low introductory price to establish a new product in the market.
Example: Music streaming services like iMusic/Spotify often offer initial free months.

Competitor-based Pricing

Pricing strategy that positions a product relative to similar items based on price.
Can be lower, equal, or higher priced depending on perceived quality.

Psychological Pricing

Uses pricing tactics to create a perception of lower cost, e.g., pricing at $1.99 instead of $2.00.

Cost Plus Pricing

Adds a set percentage to the total production costs to determine the product's selling price, ensuring profitability.

Product Line Pricing

Different products within the same range are priced at various levels based on features or capabilities.
Example: iPhone models with increased memory are priced higher.

Demand Pricing

Sets prices based on the product's demand, often starting high and decreasing over time to capture various market segments, such as with gaming consoles.

Description

Explore the essential elements of the marketing mix, focusing on the Four P's: Product, Place, Price, and Promotion. This quiz provides flashcards that detail critical terminology and concepts required for understanding market requirements and product standardization.