4 P’s of Marketing Vocabulary

product
end result of production process sold on the market to satisfy a customer need
consumer durables
manufactured products that can be re-used and are expected to have a reasonably long life, such as cars and washing machines
product line
different variations of the same product sold by a business
product mix
the variety of product lines that a business produces or a retailer stocks
product range
all types of products made by a business
product life cycle
the pattern of sales of a product from launch to withdrawal
extension strategies
marketing plans that are designed to extend the maturity stage of a product before a brand new one is needed
brand
an identifying symbol, name, image or trademark that distinguishes a product from its competitors
brand awareness
extent to which a brand is recognized by potential customers and is correctly associated with a particular product, can be expressed as a % of target market
brand development
measures the infiltration of a product’s sales, usually per thousand population. (If 100 people in 1000 buy a product, it has a brand development of 10.)
brand loyalty
the faithfulness of consumers to a particular brand as shown by their repeat purchases irrespective of the marketing pressure from competing brands
cost-plus pricing
adding a fixed mark-up for profit to the unit price of a product
full-cost / absorption-cost pricing
setting a price by calculating a unit cost for the product (allocated fixed and variable costs) and then adding a fixed profit mark-up
competition-based pricing
a firm using this technique will base its price upon the price set by its competitors
price leadership
one dominant firm in a market sets a price and other firms simply charge a price based upon that set by the market leader
going-rate pricing
the price charged is based upon a study of the conditions that prevail in a certain market and the prices set by major competitors
penetration pricing
setting a relatively low price often supported by strong promotion in order to achieve a high volume of sales
market skimming
setting a high price for a new product if a firm has a unique or highly differentiated product with low price elasticity of demand
promotion
the use of advertising, sales promotion, personal selling, direct mail, trade fairs, sponsorship and public relations to inform and persuade consumers to buy
above-the-line promotion
a form of promotion that is undertaken by a business by paying for communication with consumers (eg: advertising)
below-the-line promotion
promotion that is not a directly paid-for means of communication but based on short-term incentives to purchase (eg: sales promotion techniques)
sales promotion
incentives such as special offers or deals directed at consumers or retailers to achieve short-term sales increases and repeat purchases by consumers
promotion mix
the combination of promotional techniques that a firm uses to communicate the benefits of it products to customers
channel of distribution
this refers to the chain of intermediaries a product passes through from producer to final consumer