Chapter 4 The Four P’s of Marketing

Advertising
Paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the advertising message.
Agents/Brokers
Marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don’t take title to the goods.
Benefit Segmentation
Dividing a market by determining which benefits of the product to promote.
Brand
A name, symbol, or design (or combination thereof) that identifies the goods or services of one seller or group of sellers and distinguishes them from those of others.
Brand Equity
The combination of factors, such as awareness, loyalty, perceived quality, images, and emotions that people associate with a given brand name.
Brand Loyalty
The degree to which customers are satisfied, like a brand, and are committed to future purchases.
Break-Even Analysis Strategy
Pricing a product based on how many you need to sell in order to make a profit.
Bundling Strategy
Grouping two or more products together and pricing them as a unit.
Cash-and-Carry Wholesalers
Wholesalers that serve mostly smaller retailers with a limited assortment of products.
Category Killer
A store that offers a wide selection of goods in a specific category at competitive prices.
Channel of Distribution
A set of marketing intermediaries, such as wholesalers and retailers that join together to transport and store goods in their path (or channel) from producers to consumers.
Demographic Segmentation
Dividing a market into demographic categories, such as age, income, or education level.
Drop Shippers
Wholesalers that solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer.
Event Marketing
Sponsoring events such as rock concerts or attending various events to promote your products.
Everyday Low Pricing (EDLP) Strategy
Setting prices lower than competitors and then not offering any special sales.
Focus Group
A small group of people who meet under the direction of a discussion leader who tries to understand their opinions about a product or service.
Geographic Segmentation
Dividing a market into geographic regions.
High-Low Pricing Strategy
Setting prices that are higher than EDLP, but offering many special sales where prices are lower than those of competitors.
Industrial Good
A product used in the production of other products.
Integrated Marketing Communication (IMC)
Combines all the promotional tools into one comprehensive and unified promotional strategy.
Loss Leaders
When a store advertises certain products at or below cost to attract people to the store.
Market Segmentation
The process of dividing the total market into several groups whose members have similar characteristics.
Marketing
The process of planning and executing the conception, pricing, promotion, and distribution of goods and services to facilitate exchanges that satisfy individual and organizational needs.
Marketing Intermediary
An organization that assists in moving goods and services from producers to industrial and consumer users.
Marketing Management
The process of overseeing all the aspects of marketing a particular product or service for the purpose of attracting and retaining customers.
Marketing Mix (The Four P’s)
Product, Price, Place, and Promotion. The four ingredients of a marketing program.
Marketing Research
The analysis of markets to determine opportunities and challenges and to find the information needed to make good marketing decisions.
Merchant Wholesalers
Independently owned firms that own the goods they handle.
Niche Marketing
The process of finding small but profitable market segments and creating products for them.
Penetration Strategy
Pricing a product low to attract many customers and discourage competition.
Personal Selling
The face-to-face presentation and promotion of goods and services.
Place
In marketing, the process of getting products to the places where they will be sold.
Price Leadership
The procedure by which one or more firms that dominate a market set pricing standards that all the others follow.
Primary Research
Research collected firsthand by a marketer.
Product Differentiation
An attempt to make buyers think similar products are different in some way.
Product Life Cycle
A theoretical model of what happens to sales and profits for a product class over time.
Product Placement
Putting products in TV Shows and movies, where they will be seen.
Psychographic Segmentation
Dividing a market using the group’s values, attitudes, and interests.
Psychological Pricing (Odd Pricing) Strategy
Pricing goods and services at price points that make the product appear less expensive than it is.
Public Relations (PR)
The management function that evaluates public attitudes, changes policies and procedures accordingly, and executes a program of action and information to earn public understanding and acceptance.
Publicity
Any information about an individual, product, or organization that’s distributed to the public through the media and that’s not paid for or controlled by the seller.
Rack Jobbers
Wholesalers that furnish racks or shelves full of merchandise to retailers, display products, and sell on consignment.
Relationship Marketing
A marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements.
Sales Promotion
A promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities.
Sampling
Letting consumers have a small sample of a product for no charge.
Secondary Research
Research collected by a marketer that has already been compiled by others and published in print or online.
Skimming Price Strategy
Pricing a new product high to make optimum profit while there’s little competition.
Target Costing
Designing a product so it satisfies customers and meets the profit margins desired by the firm.
Target Marketing
Selecting which market segments an organization can profitably serve.
Total Product Offer
Everything consumers evaluate when deciding whether to purchase a good or service.
Viral Marketing
The term used to describe everything from paying people to say positive things on the Internet to setting up multilevel selling schemes whereby consumers get commissions for directing friends to specific Web Sites.
Volume Segmentation
Diving a market by usage (volume of use).
Wholesaler
A marketing intermediary that sells to other organizations.
Word-of-Mouth Promotion
A promotional tool that involves people telling other people about products that they’ve purchased.
Sales Promotion
A promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities.