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IB BM Marketing 4.5 Promotion, Price, Product & Place
Terms in this set (58)
Are negotiators who help to sell a vendor's products, such as real estate brokers selling residential and commercial property for their clients.
Channels of distribution
The ways that a product gets from the manufacturer to the consumer. Examples include wholesalers, agents, retailers, e-commerce and vending machines.
Independent businesses that act as intermediaries by specializing in the trade of products made by certain manufacturers.
Agents or other businesses that act as a middle person in the chain of distribution.
One-channel distribution network
A method of distribution that involves the use of a single intermediary, such as an agent or retailer.
The distribution of products, i.e. how products get from the producer to the consumer. For example, products could be available at large warehouses, at retail outlets, through agents or via the internet (e-commerce)
The sellers of products to the general public (i.e. consumers) that operate in outlets (or 'shops' in everyday language)
Specialty channel of distribution
Any indirect way to distribute products that does not involve retailers, i.e. distribution without the use of intermediaries such as e-commerce, vending machines and mail order.
The use of telephone systems (audio and text messaging) to sell products directly to potential customers.
Three-channel distribution network
Type of distribution channel that uses three intermediaries. It typically involves a wholesaler and retailer.
Two-channel distribution network
Method of distribution that involves the use of two intermediaries. These are typically wholesalers and retailers.
Businesses that purchase large quantities of products from a manufacturer and then separate or 'break' the bulk-purchases into smaller units for resale, mainly to retailers.
Zero-level distribution channel (direct distribution)
Skips any intermediaries, i.e. the producer sells directly to the consumer.
Above the line (ATL) promotion
Paid-for promotion through the mass media (such as television and radio) to reach a wide audience.
Below the line (BTL) promotion
Techniques used by businesses to reach their target market more directly than using mass media. Typically in the form of short-term incentives to purchase goods or services
Refers to promotional activities that aim to sell a product straight to a customer rather than by using an intermediary. e.g. by mail order or telephone selling, rather than through retailers.
Is a promotional strategy that aims to
ambush or catch the attention of customers through unusual, innovative, unconventional and/or shocking techniques, on a relatively low budget.
Are a form of product differentiation that use a visual symbol to represent a business, its brands or its products
methods used by a business to inform, persuade and remind customers about its products
Refers to the combination of individual ATL and BTL promotional methods used by a business, such as advertising, direct marketing, packaging and sales promotion.
Public Relations (PR)
Refers to business activities aimed at
establishing and protecting a favorable public image
Are short-term incentives designed to
stimulate demand for a product, e.g. discount coupons, prize draws, price cuts and trade fairs.
Refers to the marketing practice of gaining internet
traffic through social media websites such as Facebook, Twitter, YouTube and Google.
Refers to any platform used mainly by
individuals to build social relationships between people, often because they are friends or share things in common. Social network services include Google+, Instagram and Facebook.
Are catchphrases designed to represent the essence of a business or its products using a memorable set of words.
Is a promotional technique that involves funding,
supporting or donating resources for an event or business venture in return for prominent publicity.
the use of social media sites or text messages to increase brand awareness or sell products
Word of mouth (WOM)
Is the spreading of marketing messages about a firm and the quality of its products or its customer service. It is perhaps the most cost-effective form of promotion.
is a long-term product strategy that involves strengthening the name and image of a brand to boost its appeal and sales.
occurs when customers buy the same brand of a product time and time again. They are devoted to the brand since they have brand preference over other brand names.
refers to the premium that customers are willing to pay for a brand over and above the value of the product itself, i.e. customers are willing to pay more for a reputable brand.
refers to the use of an exclusive name, symbol or design to identify a specific product or organization. It differentiates a product from similar ones offered by rival firms.
is a term used by the Boston Consulting Group to refer to any product that generates significant money due to its large market share in a mature market.
are products bought for personal consumption, such as consumer durables (e.g. furniture, computers and cars) m d perishables (e.g. food and flowers).
are products in the BCG matrix that have low market share and operate in low growth or stagnant markets. Hence, dogs do not generate much cash or profit for a business.
is an attempt by marketers to lengthen the life cycle of a particular product, typically used during the maturity or early decline stages of the product's life cycle.
refers to any strategy used to make a product appear to be distinct from others, such as quality, branding and packaging.
product life cycle (PLC)
is the typical process that products go through from their initial design and launch to their decline and eventual withdrawal. Different products undergo each of the five stages (research, launch, growth, maturity and decline) at varying speeds.
refers to the range of products or strategic business units owned and developed by an organization at any one point in time
refers to any physical or non-physical item (good or service) that is purchased by commercial or private customers.
(Boston Consulting Group matrix) is a marketing tool for analysing the product portfolio of a business. It shows whether products have high or low market share and operate in high or low market growth industries.
measures the extent to which potential customers or the general public recognise a particular brand. It is usually expressed as a percentage of the sample surveyed.
(or problem children) are products in a BCG matrix that compete in high market growth industries, but have low market share. They consume lots of cash but do not generate much profit, if any.
Rising stars (or stars)
are products in the BCG matrix that have high or rising market share in a high growth market.
Cost-Plus Pricing (mark-up pricing)
Adding a fixed mark-up for profit to the unit price of a product
A firm will base its price upon the price set by its competitors
One dominant firm in a market sets a price and other firms simply charge a price based upon that set by the market leader.
Deliberately undercutting competitors' prices in order to try and force them out of the market
Setting a relatively low price often supported by a strong promotion in order to achieve a high volume of sales
Setting a high price for a new product when it has a unique feature or highly differentiated features
Product sold at a very low price to encourage consumers to buy other products
Setting prices that take account of customers' perception of the value of the product. Roundings prices down to make prices seem lower (49 vs 50, 99 vs 100)
Special low prices to gain market share or sell off excess stock - includes 'buy one get one free'
Setting prices based on the costs of production rather than the level of demand or the prices set by competitors
The amount of products that customers are willing and able to buy at each price. For the vast majority of products, as the price increases, demand will tend to fall
A pricing strategy that involves charging different prices to different groups of customers for the same product (e.g. child and adult fares at the cinema and on flights)
Firms compete by a series of intensive price cuts
Prestige pricing or Premium pricing
a pricing strategy used by luxury goods marketers in which they keep the price high to maintain a favorable image of the product
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