Questions and Answers
What are the four components of the Marketing Mix?
What is Product Standardisation?
The process of setting uniform characteristics for a particular product, system or service.
In marketing, what is a Product?
A market offering informed by analysis of the market and competition.
What does 'Place' refer to in marketing?
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What does Price mean in a marketing context?
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What are Trigger Products?
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What are Incremental Products?
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What is Promotion in marketing?
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What is Penetration pricing?
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What is Competitor-based pricing?
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What is Psychological Pricing?
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What does Cost Plus Pricing involve?
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What is Product line pricing?
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What is Demand Price?
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Study Notes
Marketing Mix
- Comprises four essential elements: Product, Place, Price, Promotion, known as the 4 Ps.
- These factors are shaped by market research to inform designers about market needs.
Product Standardisation
- Involves defining uniform characteristics across a specific product, service, or system.
- Ensures consistency in offering, making products recognizable and reliable.
Product
- Defined by market analysis, considering customer preferences and competition.
- Influences how various products are developed based on consumer demand.
Place
- Encompasses all methods by which products reach customers, including physical and digital channels.
- Recognizes that distribution can occur through online platforms as well as traditional stores.
Price
- Relates to the total cost a customer incurs to acquire a product or service.
- Encompasses various pricing strategies that can affect consumer purchasing behavior.
Trigger Products
- Standalone products known for their strong performance and function.
- Designed to meet essential consumer needs, e.g., Kitchen Aid appliances and gaming consoles like PS4.
Incremental Products
- Offer consumers additional features or enhancements related to trigger products.
- Encourage purchases of complementary items, such as Kitchen Aid attachments or PS4 accessories.
Promotion
- Refers to strategies used to communicate product information to consumers.
- Includes various methods like advertising, personal selling, and publicity.
Penetration Pricing
- Involves setting a low initial price for a new product to gain market entry.
- Example known in the industry: services like iMusic or Spotify offering free trials before charging.
Competitor-based Pricing
- Establishes a product's price according to the pricing strategies of similar products.
- Businesses may choose to price products lower, equal to, or higher than competitors based on perceived quality.
Psychological Pricing
- A tactic that prices products to create a favorable perception among consumers.
- Example: pricing something at $1.99 instead of $2 to suggest a bargain.
Cost Plus Pricing
- A strategy where companies add a markup to the total costs of production to ensure profitability.
- Captures all expenses including production, design, and distribution in its pricing structure.
Product Line Pricing
- Positions various products within the same line at different price levels based on features.
- Example: iPhones priced higher for more storage or advanced features.
Demand Price
- Sets prices depending on actual consumer demand for a product.
- Commonly seen in gaming consoles where initial high prices are reduced over time to target various market segments.
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Description
Explore the essential concepts of the marketing mix through flashcards. This quiz covers the four P's: Product, Place, Price, and Promotion, along with related terms like product standardization. Perfect for students and professionals looking to deepen their marketing knowledge.
