5.3 The marketing mix

• The marketing mix combines 4 key elements known as the 4Ps
• The 'Price' element of the marketing mix is the amount customers pay for the product
• What does 'Product Strategy' involve decisions about?

  Target market, USP, competitive advantage
• Steps involved in 'Product Development'

  1️⃣ Market research

  2️⃣ Prototyping

  3️⃣ Testing

  4️⃣ Launching
• 'Value-based Pricing' considers the perceived benefits of the product to customers.


  True
• Value-based pricing sets the price based on the perceived value and benefits the product offers to customers.


  True
• Skimming pricing involves setting a high initial price to skim profits from early adopters.


  True
• Product strategy involves planning for the features, design, and positioning of a product.

  True
• What are businesses using to effectively price their products?

  Pricing methods and strategies
• Value-based pricing considers the perceived benefits of the product to customers.


  True
• Match the pricing strategy with its definition:

  Penetration Pricing ↔️ Low initial price for market share

  Skimming Pricing ↔️ High initial price for early adopters

  Premium Pricing ↔️ High price to signal quality
• Selling directly to the customer is an example of an indirect distribution channel.

  False
• The promotion element of the marketing mix focuses on communicating and advertising the product to customers
• Public relations aims to build a positive brand image through press releases, sponsorships, or events
• What does the 'Product' element of the marketing mix refer to?

  The good or service offered
• Optimizing the 4Ps of the marketing mix can help businesses create a compelling marketing approach.


  True
• Match the aspects with their focus:

  Product Strategy ↔️ Overall plan for the product

  Product Development ↔️ Creating and improving the product
• 'Competition-based Pricing' involves setting the price based on what competitors are charging.
• Competition-based pricing involves setting the price based on what competitors are charging for similar products.
• Penetration pricing involves setting a low initial price to quickly gain market share
• Logistics includes activities such as transportation, warehousing, and inventory management.


  True
• The marketing mix is crucial for developing an effective marketing strategy
• Match the pricing method with its definition:

  Cost-based Pricing ↔️ Setting price based on production cost

  Competition-based Pricing ↔️ Setting price based on competitors

  Value-based Pricing ↔️ Setting price based on perceived value
• What is the basis for competition-based pricing?

  Competitor prices
• What is the primary goal of skimming pricing?

  Maximize early profits
• Distribution channels refer to the different pathways a product takes to reach the customer
• What is the primary goal of logistics in distribution?

  Efficient flow of goods
• Personal selling involves direct interaction between sales staff and customers.


  True
• What are the 4Ps of the marketing mix?

  Product, Price, Place, Promotion
• The marketing mix is crucial for developing an effective marketing strategy.

  True
• Match the 4Ps with their definitions:

  Product ↔️ The good or service being offered

  Price ↔️ The amount customers pay for the product

  Place ↔️ How and where the product is distributed

  Promotion ↔️ How the product is advertised
• 'Product Development' includes activities such as market research, prototyping, testing, and launching
• What is 'Cost-based Pricing'?

  Setting price based on cost
• Cost-based pricing involves setting the price based on the cost of producing the product plus a desired profit margin
• Match the pricing method with its definition:

  Cost-based Pricing ↔️ Setting price based on production cost

  Competition-based Pricing ↔️ Setting price based on competitors

  Value-based Pricing ↔️ Setting price based on perceived value
• Premium pricing involves setting a high price to signal quality and exclusivity
• Match the distribution channel with its description:

  Direct ↔️ Selling directly to the customer

  Indirect ↔️ Using intermediaries to sell

  Multi-channel ↔️ Combining direct and indirect channels
• Product development involves creating and improving a product through research, prototyping, and testing
• Cost-based pricing involves setting the price based on production cost plus a desired margin
• Penetration pricing involves setting a low initial price to gain share