The Marketing Mix (Four P's)
Product positioning: - many competitors want consumers' _____ - limited number of ______ in consumers' mind
- attention - positions
Factors affecting channel design: - buyer _____ - ______ shoppers - _____-______ purchases - product ______ - product ______ - _____ sophisticated products; ____ unit value - _______, _______ products
- behavior - frequent - high involvement - categories - variables - tech; high - standardized; homogeneous
Branded product processors: - account for _____ of ______ - ____ reactions of consumers - relative ______ of ______ products
- profitability; distributors - price - availability; competitive
Price discrimination: - ... - charge different price in each ____ _____ - same ____ product
- when different market segments have different elasticities of demand - market segment - basic
Business to business market promotional mix: 1. ______ selling 2. sales ______ (trade shows, formulas, processing assistance, samples) 3. ______ (trade journals, direct mail, directories) 4. ______ relations
1. personal 2. promotion 3. advertising 4. public
Personal selling (promotion)
salespeople
Identical products will occupy ____ position
same
Commodity suppliers
don't actively price their products
______ dominates commodity markets
external influences
Doesn't affect market price
individual firm's cost of production
Channel design uses _______ (agents, wholesalers, retailers)
intermediaries
Place =
market channel
Internal influences of price establishment
market strategy; cost
Principles for all marketing
commodity; industrial; distributors; consumer
Mass selling (promotion)
advertising and publicity
Sales promotion
anything not advertising/publicity
Price is also related to the ____ of ___ materials
cost; raw
NOT apart of the marketing mix
customer
Product position
the consumer's perception of the place a product holds in the marketplace
Four P's: - surround the _____ - should ___ ______ - final decisions on P's should be made _____
- customer - tie together - together
Product decisions: - _____ (accessories; warranty) - ____ to customer - _____ level - product ____ - ______ - ______
- features - benefits - quality - lines - packaging - branding
Pricing: - ... - consider the _____ - estimate customer _____ to possible prices - know _____ practices
- finding the right price for the product - competition - reaction - current
Product position and market segment: - they are ______ - ______ should be considered together - product may have a different ______ in each market segment - ______ and ______ must relate to particular segment
- interrelated - selection - position - branding; packaging
4 steps of product positioning: - consumers identify ____ ______ - consumers place _______ products based on key characteristics - company positions own product relative to competition by ______ and ______ - consumer's confirm _____ _____
- key characteristics - competitive - design; promotion - product position
Promotional mix depends on: - nature of the _____ - nature of the _____ - market ______ - _____ transmitted - _____ - _____ available
- market - product - segment - message - cost - methods
Place decisions: - _____ _____ (distribution) - _____ of stores - ______ and _____
- market channels - location - transportation; storage
Promotion goals: - acquire ___ customers - retain _____ customers - win back _____ customers
- new - current - former
Product categories: - convenience goods: - shopping goods: - specialty goods:
- no brand awareness - brand awareness; comparison shopping - favorite brand; specialist supplier
Consumers may compare products based on: - _____ - _____ - _____
- price - convenience - appearance
4 P's of marketing: - Product: Price - Place: - Promotion:
- the good/service for the target market - reaching the target market; market channels - telling/selling the target market
Consumer market promotional mix: 1. ______ (TV, radio, newspapers, magazines, outdoor signs) 2. sales ______ (displays, contests, recipes, demos, samples) 3. _____ selling 4. _____ relations
1. advertising 2. promotion 3. personal 4. public
4 P's of marketing
product; price; place; promotion
Public relations
building good relations with customers/public
External influences of price establishment
customers; competition
All prices derived from ____ _____ (derived demand)
final consumer
Market channel delivers product to chosen _____ _____ with appropriate ____ and ____ and the right product _____
market segment; quality; quantity; image
Specialized ingredient supplier
values technical benefits to processor; relative to competing suppliers
Personal selling
oral presentation in conversation with prospective buyer; more important for processor than retailer
Advertising
paid message; non-personal; usually delivered by newspapers, TV, radio, magazines
Break-even analysis
price X volume of sales minus (VC + FC)
Price is the key determinant of ______
profitability
Differentiated products will occupy _____ positions
unique
Task of product positioning:
use marketing mix to get the best position