Packaging |
The activities of designing and producing the container or wrapper for a product |
Penetration pricing |
Penetration pricing involves the setting of lower, rather than higher prices in order to achieve a large, if not dominant market share |
Penetration strategy |
A marketing strategy based on low prices and extensive advertising to increase a product's market share. For penetration strategy to be effective the market will have to be large enough for the seller to be able to sustain low profit margins. |
Personal selling |
Oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale |
Porter’s Five Forces Model |
An analytic model developed by Michael E. Porter. The five forces in terms of which the model analyses businesses and industries are: Buyers, Suppliers, Substitutes, New Entrants and Rivals |
Portfolio planning |
Portfolio planning is the process of managing groups of brands and product lines |
Positioning |
Positioning is how a product appears in relation to other products in the market |
Pre-emptive pricing |
Pre-emptive pricing is a strategy involves setting low prices in order to discourage or deter potential new entrants to the suppliers market. It is especially suited to markets in which the supplier does not hold a patent, or other market privilege and entry to the market is relatively straightforward. |
Prestige pricing |
Prestige pricing refers to the practice of setting a high price for an product, throughout its entire life cycle – as opposed to the short term ‘opportunistic’, high price of price ‘skimming’. This is done in order to evoke perceptions of quality and prestige with the product or service |
Price |
The price of a product may be seen as a financial expression of the value of that product |
Price discrimination |
Price discrimination occurs when a firm charges a different price to different groups of consumers for an identical good or service, for reasons not associated with costs |
Price elasticity of demand |
Price elasticity of demand measures the responsiveness of a change in demand for a product following a change in its own price |
Price sensitivity |
Price sensitivity is the effect a change in price will have on customers |
Price skimming |
Price skimming involves charging a relatively high price for a short time where a new, innovative, or much-improved product is launched onto a market |
Primary research data |
Primary market data is data collected specifically for the market research project and obtained directly from the relevant source |
Problem/Need recognition |
The first stage in the buying process where the potential customer recognises that a problem or a need can be met by buying a product or a service |
Product |
A product is defined as anything that is capable of satisfying customer needs |
Product class |
Product class is a broad category of product such as cars, washing machines, newspapers. |
Product form |
Within a product class, there are different forms that the product can take. For example, people carriers or two-seater sports cars are product forms within the motor cars product class |
Product group |
A product group (or product line) is a group of brands that are closely related in terms of their functions and the benefits they provide |
Product life cycle |
The course of a product's sales and profitability over its lifetime. The model describes five stages, each of which represents a different opportunity for the marketer:
- Development
- Introduction
- Growth
- Maturity
- Decline |
Product map |
A product map defines the market in terms of the way buyers perceive key characteristics of competing products |
Product mix |
The set of all product lines and items that a particular business offers for sale to buyers |
Product quality |
The ability of a product to perform its functions (“fit for purpose”). Quality is a function of several factors including reliability and ease of use |
Promotion |
One of the four “P’s” of the marketing mix. Promotion is all about businesses communicating with customers |
Promotional mix |
The promotional mix consists of a blend of five main kinds of promotional tools: advertising; direct marketing; personal selling; sales promotion and public relations |
Psychographic segmentation |
Psychographic (or “lifestyle”) segmentation seeks to classify people accordingly to their values, opinions, personality characteristics and interests. |
Public relations |
The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation and its publics |
Publicity |
Promotional activities designed to promote a business and its products by obtaining media coverage not paid for by the business |
Pull promotion |
Pull promotion, in contrast to Push promotion, addresses the customer directly with a view to getting them to demand the product, and hence “pull” it down through the distribution chain. It focuses on advertising and above the line activities. See also 'push promotion' |
Purchase decision |
The stage in the customer buying process when the purchase decision is actually made |
Push promotion |
Push promotion relies on the next link in the distribution chain - e.g. a wholesaler or retailer - to “push” out products to the customer. It revolves around sales promotions - such as price reductions and point of sale displays - and other below the line activities. See also 'Sales Promotion' |
