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Marketing Part II: The four P;s


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Brand
A named product which customers sess as being different form other products.
Generic product
A product made by a number of different businesses in which customers see now difference between the product of one business compared to the product of another business.
Own brand
A product sold under the name of a supermarket rather than the name of the manufacturer
Premium price
A price which is above the average for products of a particular type.
Product differentiation
Making one product different from another e.g. through quality, design, packaging etc.
Product mix
The combination of products a business sells like soap powders, cosmetics and medicines.
Product range
A group of similar products sold by a business like different soap powders.
Competition based pricing
Setting a price similar to competitors.
Cost plus pricing
Adding a percentage profit margin to the cost of production of a good or service.
Creaming or skimming
Selling a product at a high price (often a new product) to get high profits initially.
Mark-up
The percentage added to the cost of production which equals the profit on the product (also called profit margin)
Penetration pricing
Setting an initial price which is low to attract customers and try and gain market share.
Price discrimination
Setting a different price for the same product in different market segments e.g. peak and off-peak rail travel.
Demand
How much of a product that will be a bought at any given price
Supply
How much producers of a product will sell at any given price
Market price
The price at which supply equals demand.
Advertising Agency
A business which specialises in organising the promotion of other businesses.
Direct mail
Advertising leaflets sent to potential customers through the post.
Point-of-sale material
Promotion of a product where it is sold e.g. special displays next to til areas.
Public relations
Promotion of a positive image of an product or business through launches, stunts etc. - trying to get other people particularly newspapers to talk positively about your product.
Above-the-line promotion
Promotion using media methods e.g. TV and newspaper advertising - aimed at a mass audience.
Below-the-line promotion
Promotional activities focused on particular groups to try and develop awareness e.g. sales promotions, sponsorship, PR stunts etc.
Sales promotions
Marketing activities aimed at giving a short run boost to sales e.g. buy one get one free (BOGOF), money off, competitions, free gifts, loyalty cards etc.
Channel of distribution
The path taken to get products form the manufacturer or service provider to the customer.
Wholesaler
A business which buys in bulk from a manufacturer and then sells the stock on in smaller quantities to retailers.
Online sales
Selling via the Internet - this has increased massively in recent years.
Passing trade
Impulse purchases that result form passersby popping into shops
Constraints on marketing
Legal restriction on marketing e.g. the Trade Descriptions Act which limit what firms can say or do e.g. in adverts.