Marketing Mix: The Four P's Flashcards

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.

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.