Marketing Mix
The four primary components of the marketing mix.
Product. Place. Price. Promotion.
The process of dividing a market into smaller groups.
What is segmentation?
A company competes by using high-quality materials, reliable products, and careful attention to detail to give customers a better product.
What is competing on quality?
This utility is created when a product is available when customers want or need it, such as sunscreen being available during the summer.
What is time utility?
This is the place a product occupies in a customer's mind compared with competing products.
What is product positioning?
Advertising would fall under this component of the 4 P's.
What is promotion?
Market segmentation divides customers based on their values, attitudes, interests, and opinions
Psychographics.
Pricing strategy involves setting prices based on what customers perceive the product to be worth rather than on production costs.
Value-Based Pricing.
A company creates this utility by making a product available where customers want to buy it, such as a convenience store located near a gas station.
What is place utility?
A company creates a visual tool that shows how customers perceive different brands based on factors such as price and quality. This is called a positioning ______.
What is a positioning map?
Distribution would fall under this component of the 4 P's.
What is Place?
This is statistics about age, gender, income, ethnicity, education, occupation, etc.
What is demographics?
A restaurant trains its employees to be friendly, respond quickly to customer needs, and solve problems when something goes wrong. The business is competing based on this.
What is competing on service?
Offering credit cards, financing, or easy payment options helps create this utility by making it easier for customers to own a product.
What is Possession Utility?
A fictional profile of a company's ideal customer that includes details such as age, interests, lifestyle, needs, and buying habits is called this.
What is a buyer persona?
A drive-thru would fall under this component of the 4 P's.
What is place?
A company markets different versions of the same product based on what customers want the product to do for them, such as toothpaste marketed for whitening, cavity protection, or sensitive teeth. This type of segmentation focuses on this.
What is segmenting by product benefits?
A coffee shop chooses a location near a busy intersection and makes it easy for customers to stop on their way to work. The business is competing based on this factor.
What is competing on location?
Turning raw materials into a finished product, such as turning wheat into a box of Cheerios, creates this utility.
What is Form Utility?
This business concept focuses on making products cheap and widely available, based on the idea that customers prefer products that are affordable and easy to find.
What is the production concept?
The "life-cycle" would be under which component of the 4 p's?
What is Product?
A fast-food company offers spicier menu items in Texas and Southern California because customers in different areas may have different tastes and preferences. This type of market segmentation divides customers based on where they live.
What is geographics?
Customers choose a business because they recognize its name, trust its brand, and have heard positive things about it from others. The business is competing based on this.
What is competing on reputation?
Advertisements, product labels, websites, and salespeople create this utility by helping customers learn about a product.
What is Information Utility?
A company can position its product this way by identifying a group of customers whose needs are not being fully met by existing products or competitors.
What is an underserved market?