Questions and Answers
What are the four factors of the Marketing Mix?
What is Product Standardisation?
The process of setting uniform characteristics for a particular product, system or service.
What does 'Place' refer to in the Marketing Mix?
How the product reaches the customer, not limited to physical stores.
Define 'Price' in terms of marketing.
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What are Trigger Products?
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What are Incremental Products?
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What is the role of Promotion in the Marketing Mix?
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Explain Penetration Pricing.
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What is Competitor-based Pricing?
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What is Psychological Pricing?
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Define Cost Plus Pricing.
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What is Product Line Pricing?
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What does Demand Price mean?
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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.
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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.
