Marketing Basics
The sum of all activities involved in getting goods and services from the original producer to the ultimate consumer.
What is marketing?
These are the four key elements of marketing strategy.
What are Product, Place, Price, and Promotion?
A tech company launches a new smartphone at a very high price, targeting early adopters before lowering it months later.
What is price skimming?
Sell directly from the producer to the consumer
What is Business to Consumer?
This is the ultimate destination in the marketing process.
Who is consumer?
Choosing between e-commerce and retail stores is a strategic decision related to this “P.”
What is Place?
A firm enters a highly competitive foreign market with significantly lower prices than established competitors to quickly gain market share, even at low profit margins.
What is penetration pricing?
The use of the Internet by businesses to sell products and services to customers in a much larger area than could be reached through a traditional retail location
What is E-commerce?
A company studying consumer preferences before launching a product abroad is engaging in this broader marketing function
What is Market research?
In order to be sold outside Canada, products must be modified to adapt to foreign language, culture, laws and/or regulations
What is Product?
A luxury brand raises its prices above competitors specifically to reinforce exclusivity and perceived quality, even though production costs are similar.
What is premium pricing?
This type of business sells goods directly to the end user, representing the final stage of most traditional distribution systems.
What is a retailer?
A company that helps with entry into new countries and provides information about border crossings, cultural differences, and legal requirements.
What is an Importer?
This “P” includes factors like tariffs and exchange rates.
What is Price?
A manufacturer offers lower prices only to wholesalers purchasing in large quantities, aiming to increase total sales volume rather than per-unit profit.
What is discount pricing (B2B pricing strategy)?
This distribution structure is characterized by a sequential flow of goods through multiple independent businesses before reaching the consumer.
What is the traditional distribution channel?
This concept explains why companies must adapt marketing strategies internationally, as consumer expectations are shaped by differing cultural norms, legal systems, and economic conditions.
What is market adaptation (or adapting to international differences)?
A company must balance all four Ps simultaneously—this is known as this overall strategy.
What is the marketing mix?
A company prices a product at $199 instead of $200, relying on consumer perception rather than actual cost difference to influence buying decisions.
What is psychological pricing?
Three major advantages are:
▪ Shipping costs are lower
▪ Import regulations and tariffs are not an issue
▪ Product modifications are easie
What are Branch Plants?