Product Power
This gives a product an identity and helps customers distinguish it from competing products.
What is brand image?
A business calculates the cost of producing an item and then adds a fixed percentage to determine its selling price.
What is cost-plus pricing?
Within the marketing mix, this refers to how a product moves from the producer to the final customer.
What is place?
Paid communication through television, websites, magazines or billboards is known as this.
What is advertising?
Ingredients, expiry dates, logos and instructions are normally communicated through this part of a product.
What is packaging?
A new streaming service charges a very low subscription price to attract customers and quickly build market share.
What is penetration pricing?
This intermediary purchases products in large quantities from manufacturers and sells smaller quantities to retailers.
What is a wholesaler?
Buy one, get one free,” free samples and temporary discounts are examples of this promotional method.
What is sales promotion?
Customers repeatedly purchase Samsung phones and refuse to switch to another brand. This behaviour is known as this.
What is brand loyalty?
A supermarket sells cooking oil below its cost, expecting customers to buy other profitable products while visiting the store.
What is loss-leader pricing?
A bakery sells bread through its own website without using retailers or wholesalers. This is the distribution channel being used.
What is manufacturer-to-consumer/direct distribution?
A bank pays to have its name displayed on the shirts of a football club.
What is sponsorship?
This stage of new product development involves selling the product to a limited section of the market before releasing it nationally.
What is a test launch?
A unique gaming console is launched at a high price so that its producer can quickly recover research and development costs.
What is price skimming?
An Indonesian manufacturer entering an unfamiliar overseas market may use this intermediary because it has specialist knowledge of local distributors.
What is an agent?
A salesperson demonstrates a complex photocopier directly to an office manager and answers questions before completing the sale.
What is personal selling?
A soft-drink company redesigns its packaging and promotes the drink as an ingredient for mocktails to prevent falling sales. These actions are examples of this.
What are extension strategies?
The price of a product increases by 10%, but quantity demanded falls by only 4%. This is the classification of its demand.
What is price-inelastic demand?
Fresh strawberries spoil quickly and must reach many customers as soon as possible. This product characteristic will strongly affect the choice of distribution channel.
What is perishability/durability?
A company spends $40,000 on a promotional campaign, but the additional sales revenue does not cover the campaign’s cost. The company failed to consider this factor.
What is cost-effectiveness?