A strong product or service is only a starting point for building a successful business. Customers also need to know about it, be able to obtain it, and consider its price worthwhile. This lesson introduces the marketing mix and explores two of its four elements: product and price.
The four elements work together. For example, a company’s choice of product features may affect its costs and price; its promotion needs to reach the customers who are most likely to value those features; and its place decisions must make the product accessible to those customers.
All flashcards
What is the marketing mix?
The set of tactics a company uses to promote and sell its offerings and influence consumers to buy.
What are the 4Ps of marketing?
Product, price, place, and promotion: the offering, its cost to customers, access to it, and communication about it.
What is the difference between minimum viable and maximum acceptable price?
The minimum viable price allows the company to make a profit; the maximum acceptable price is the highest customers are likely to pay.
What does place mean in the marketing mix?
The channels and arrangements that make a product available to customers and move it to where they can obtain it.
What guides the selection of a promotional channel?
Whether the channel can effectively reach the intended customers.
Quiz questions
Why might a company design different backpacks for children and working adults?Answer: The groups may value different features and have different needs.
A company wants to set a profitable price customers will accept. Which two limits should it consider?Answer: A minimum that supports profit and a maximum customers are likely to accept.
A backpack company is choosing a magazine in which to advertise. Which consideration is most relevant?Answer: Whether the magazine's readership matches the intended customer group.
What is internet advertising?Answer: Marketing messages delivered through the internet.
A company's headquarters is in one city, but its products are sold nationwide. What does place focus on?Answer: How products reach customers and where they can obtain them.
Based on Principles of Marketing by Dr. Maria Gomez Albrecht, Dr. Mark Green, Linda Hoffman (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.