MM51 1.04 The Marketing Mix

Goal

An objective or want that you plan to fulfill

Resource

Any item that is used to produce goods and services

Publicity

Any nonpersonal presentation of ideas, goods, or services that is not paid for by the company or individual that benefits from or is harmed by it

Advertising

Any paid form of nonpersonal presentation of ideas, images, goods, or services

Benefit

An advantage consumers receive from using a product

Discount

A deduction from the price of goods

Feature

A fact or characteristic of the product

Public relations

A function of business designed to establish good relations between the business and the public.

Marketing concept

A philosophy of conducting business that is based on the belief that all business activities should be aimed toward satisfying consumer wants and needs while achieving company goals

Warranty

A promise made by the seller to the consumer that the seller will repair or replace a product that does not perform as expected

Place

Marketing element focusing on considerations in getting a selected product in the right place at the right time

Promotion

Marketing element referring to the various types of communications that marketers use to inform, persuade, or remind customers of their products

Price

Marketing element requiring marketers to determine the amount of money they will ask in exchange for their products

Profit

Monetary reward a business owner receives for taking the risk involved in investing in a business

Strategies

Plans of action for achieving goals and objectives

Sales promotion

Promotional activities other than advertising, personal selling, and publicity that stimulate customer purchases

Tactics

Specific actions that will be used to carry out strategies

Value

The amount of satisfaction a good or service will provide a customer

Credit

The arrangement by which businesses or individuals can purchase now and pay later

Marketing mix

The combination of the four elements of marketing—product, place, promotion, and price.

Quality

The degree of excellence of a good or service—how good it is

Personal selling

The form of promotion that determines client needs and wants and responds through planned, personalized communication that influences purchase decisions and enhances future business opportunities

Media

The message channels used by a seller to promote a good, service, or idea; e.g., radio, television, newspapers, magazines, Internet

Income

The money received by resource owners and by producers for supplying goods and services to consumers

Expenses

The money that a business spends

Cost (of production)

The total amount of money spent on costs of materials, labor, taxes, etc. to manufacture economic goods and services