The links below are designed for print; more screen reader friendly documents can be found on the Students: Additional Lumen Resources page.<\/p>
Product is the core of the marketing mix. Product defines what will be priced, promoted, and distributed. If you are able to create and deliver a product that provides exceptional value to your target customer, the rest of the marketing mix is\u00a0easier to manage.\u00a0A successful product makes every aspect of a marketer\u2019s job more effective.<\/p>\r\n
Brands are powerful and valuable assets that simplify consumer choices, make promises about products or companies, and create market perceptions. Organizations can employ various strategies to develop and extend their brands to stakeholders, including customers, retailers, supply chain partners, and the organization itself.<\/p>\r\n
The product life cycle<\/strong> (PLC) starts with the product\u2019s development and introduction, then moves toward maturity, withdrawal and eventual decline. The marketer needs to be aware of the characteristics that apply to a given product as it moves through the various stages.<\/p>\r\n Developing new products is a costly and risky process, with high failure rates, but companies can increase their chances of success by setting clear goals, generating new ideas through sources like focus groups and brainstorming, screening concepts, developing prototypes and marketing strategies, test-marketing the product, and finally introducing it to the market with logistical coordination and necessary adaptations for international markets.<\/p>\r\n When businesses\u00a0make decisions about pricing, they can adopt profit-oriented pricing, competitor-oriented pricing, or customer-oriented pricing. Customer-oriented pricing focuses on the price-value equation: Value = Perceived Benefits \u2013 Perceived Costs. In order to increase value, the business can either increase the perceived benefits or reduce the perceived costs. Today\u2019s marketing tends to favor customer-oriented pricing because it\u00a0prioritizes the customer and the customer\u2019s perception of value.<\/p>\r\n Distribution channels cover all the activities needed\u00a0to transfer the ownership of goods and move them\u00a0from the point of production to the point of consumption. These activities can be organized as\u00a0five important channel flows: product flow, negotiation flow, ownership flow, information flow, and promotion flow. While channels can be very complex, there is a set of channel structures that can be identified in most transactions: the direct channel, the retail channel, the wholesale channel, and the agent channel.<\/p>\r\n There are many different marketing communication methods that can be used in the promotion mix. Integrated marketing communication is the process of coordinating all the promotional activity across these different methods. There are also seven common types of marketing communication: advertising, public relations, personal selling, sales promotion, digital marketing, direct marketing, and guerrilla marketing, each with their own advantages and disadvantages.<\/p>\r\n An elevator pitch is a brief introduction used in networking situations to present yourself professionally and make connections. It can be used in various contexts, such as job fairs, interviews, networking events, and starting conversations, and should consist of introducing yourself, stating your career interest, and highlighting relevant experience or personal attributes in just a few key sentences.<\/p>\r\n advertising<\/strong><\/p>\r\n any paid form of communication from an identified sponsor or source that draws attention to ideas, goods, services or the sponsor itself<\/p>\r\n agent channel<\/strong><\/p>\r\n also called a broker channel; adds the addition of an agent or broker as an intermediary between the producer and the wholesaler<\/p>\r\n brainstorming<\/strong><\/p>\r\n the members of a group think of as many ways to vary a product or solve a problem as possible<\/p>\r\n brand<\/strong><\/p>\r\n all the features that distinguish the goods and services of one seller from another: name, term, design, style, symbols, customer touch points, etc<\/p>\r\n branded house strategy<\/strong><\/p>\r\n a range of products are sold under one unifying brand<\/p>\r\n brand extension<\/strong><\/p>\r\n moving an existing brand name into a new product category, with a new or somehow modified product<\/p>\r\n brand licensing<\/strong><\/p>\r\n the process of leasing or renting the right to use a brand in association with a product or set of products for a defined period and within a defined market, geography, or territory<\/p>\r\n bundling<\/strong><\/p>\r\n grouping two or more related products together and pricing them as a single product<\/p>\r\n business products<\/strong><\/p>\r\n also called industrial products and B2B products; are purchased by other businesses and organizations to be used in production or to support their production process<\/p>\r\n cash discounts<\/strong><\/p>\r\n reductions given to customers for paying cash or within some short time period<\/p>\r\n channel partners<\/strong><\/p>\r\n the organizations that collectively support the distribution channel<\/p>\r\n co-branding<\/strong><\/p>\r\n an arrangement in which two established brands collaborate to offer a single product or service that carries both brand names<\/p>\r\n competitor-oriented pricing<\/strong><\/p>\r\n copies the competitor\u2019s pricing strategy or seeks to use price as one of the features that differentiates the product<\/p>\r\n consumer products<\/strong><\/p>\r\n those that are purchased by the final user of the product<\/p>\r\n convenience product<\/strong><\/p>\r\n an inexpensive product that requires a minimum amount of effort on the part of the consumer in order to select and purchase it<\/p>\r\n customer-oriented pricing<\/strong><\/p>\r\n also called value-oriented pricing; seeks to charge the highest price that supports the value received by the customer<\/p>\r\n digital marketing<\/strong><\/p>\r\n an umbrella term for using digital tools to promote and market products, services, organizations and brands<\/p>\r\n direct channel<\/strong><\/p>\r\n the producer sells directly to the consumer<\/p>\r\n distribution channel<\/strong><\/p>\r\n a set of interdependent organizations involved in the process of making a product or service available for use or consumption, as well as providing a payment mechanism for the provider<\/p>\r\n elevator pitch<\/strong><\/p>\r\n a brief introduction that you use when you meet someone while networking<\/p>\r\n focus groups<\/strong><\/p>\r\n eight to twelve participants led by a moderator in an in-depth discussion on one particular topic or concept<\/p>\r\n heterogeneous shopping products<\/strong><\/p>\r\n unique products where the consumer\u2019s decision can be influenced by variations in features<\/p>\r\n homogeneous shopping products<\/strong><\/p>\r\n similar products where the consumer\u2019s decision is more likely to be influenced by price<\/p>\r\n house of brands strategy<\/strong><\/p>\r\n a company invests in building out a variety of individual brands<\/p>\r\n Integrated Marketing Communications (IMC)<\/strong><\/p>\r\n coordinating all promotional activities\u2014advertising (including direct marketing), sales promotion, personal selling, public relations, social media and e-commerce, packaging, and other forms of promotion\u2014to produce a consistent, unified message that is customer focused<\/p>\r\n leader pricing<\/strong><\/p>\r\n pricing products below the normal markup or even below cost to attract customers to a store where they wouldn\u2019t otherwise shop<\/p>\r\n line extension<\/strong><\/p>\r\n introducing a new variety of offering within the same product category<\/p>\r\n loss leader<\/strong><\/p>\r\n a product priced below cost<\/p>\r\n no-brand branding<\/strong><\/p>\r\n a type of branding whose feature is the absence of a brand name<\/p>\r\n odd-even pricing<\/strong><\/p>\r\n also called psychological pricing; setting a price at an odd number to connote a bargain and at an even number to imply quality<\/p>\r\n organizational branding<\/strong><\/p>\r\n strategies for developing a brand image and marketing engine around an organization, promoting the mission, goals, and\/or work of the organization<\/p>\r\n penetration pricing<\/strong><\/p>\r\n offering new products at the lowest price possible in the hope of capturing as many customers as possible<\/p>\r\n personal allowance<\/strong><\/p>\r\n an offer to pay expenses if an intermediary will aggressively promote a product or service<\/p>\r\n personal branding<\/strong><\/p>\r\n strategies for developing a brand image and marketing engine around an individual, treating persons and their careers as products to be branded and sold to target audiences<\/p>\r\n personal selling<\/strong><\/p>\r\n uses in-person interaction to sell products and services<\/p>\r\n place (nation) branding<\/strong><\/p>\r\n cities, regions, and nations brand and promote places to compete for people, investment, tourism, economic development, and other resources<\/p>\r\n prestige pricing<\/strong><\/p>\r\n raising the price of a product so consumers will perceive it as being of higher quality, status, or value<\/p>\r\n price orientation<\/strong><\/p>\r\n the relative importance of one factor compared to the others in pricing a product<\/p>\r\n price skimming<\/strong><\/p>\r\n the practice of introducing a new product on the market with a high price and then lowering the price over time<\/p>\r\n price-valuation equation<\/strong><\/p>\r\n Value = Perceived Benefits \u2013 Perceived Costs<\/p>\r\n private label branding<\/strong><\/p>\r\n brands created by retailers<\/p>\r\n production goods<\/strong><\/p>\r\n raw materials or component parts used in the production of the final product<\/p>\r\n product life cycle<\/strong><\/p>\r\n starts with the product\u2019s development and introduction, then moves toward maturity, withdrawal and eventual decline<\/p>\r\n profit-oriented pricing<\/strong><\/p>\r\n the price per product is set higher than the total cost of producing and selling each product to ensure that the company makes a profit on each sale<\/p>\r\n promotional mix<\/strong><\/p>\r\n the combination of communication methods used to promote a product<\/p>\r\n public relations (PR)<\/strong><\/p>\r\n the process of maintaining a favorable image and building beneficial relationships between an organization and the public communities, groups, and people it serves<\/p>\r\n quantity discounts<\/strong><\/p>\r\n reductions in base price given as the result of a buyer purchasing some predetermined quantity of merchandise<\/p>\r\n retail channel<\/strong><\/p>\r\n the retailer markets and sells the goods on behalf of the producer<\/p>\r\n Retailing<\/strong><\/p>\r\n all activities required to market consumer goods and services to ultimate consumers who are purchasing for individual or family needs<\/p>\r\n rollout<\/strong><\/p>\r\n a new product\u2019s introduction to the market<\/p>\r\n sales promotions<\/strong><\/p>\r\n activities that go on for a limited period of time with the goal of stimulating sales<\/p>\r\n seasonal discounts<\/strong><\/p>\r\n price reductions given for out-of-season merchandise<\/p>\r\n shopping product<\/strong><\/p>\r\n products that are purchased occasionally and are more expensive compared to convenience products; consumers want to be able to compare before making a decision<\/p>\r\n specialty products<\/strong><\/p>\r\n products are so unique that it\u2019s worth it to go to great lengths to find and purchase them<\/p>\r\n supply chain<\/strong><\/p>\r\n the system through which an organization acquires raw material, produces products, and delivers the products and services to its customers<\/p>\r\n support goods<\/strong><\/p>\r\n machinery, fixed equipment, software systems, and other tools that assist in the production process<\/p>\r\n test-market<\/strong><\/p>\r\n selling a product for a limited time and in limited places to reach potential users<\/p>\r\n trade discounts<\/strong><\/p>\r\n price reductions given to middlemen (e.g., wholesalers, industrial distributors, retailers) to encourage them to stock and give preferred treatment to an organization\u2019s products<\/p>\r\n trade-in allowance<\/strong><\/p>\r\n a reduction in price of the buyer trades in the old model of product that they are replacing with a purchase<\/p>\r\n unsought products<\/strong><\/p>\r\n products the consumer never plans or hopes to buy<\/p>\r\n value-added<\/strong><\/p>\r\n increasing the perceived benefits of a product<\/p>\r\n wholesale channel<\/strong><\/p>\r\n wholesaler is primarily engaged in buying and usually storing and physically handling goods in large quantities, which are then resold (usually in smaller quantities) to retailers or to industrial or business users and then finally sold to customers<\/p>","rendered":" The links below are designed for print; more screen reader friendly documents can be found on the Students: Additional Lumen Resources page.<\/p>\n Product is the core of the marketing mix. Product defines what will be priced, promoted, and distributed. If you are able to create and deliver a product that provides exceptional value to your target customer, the rest of the marketing mix is\u00a0easier to manage.\u00a0A successful product makes every aspect of a marketer\u2019s job more effective.<\/p>\n Brands are powerful and valuable assets that simplify consumer choices, make promises about products or companies, and create market perceptions. Organizations can employ various strategies to develop and extend their brands to stakeholders, including customers, retailers, supply chain partners, and the organization itself.<\/p>\n The product life cycle<\/strong> (PLC) starts with the product\u2019s development and introduction, then moves toward maturity, withdrawal and eventual decline. The marketer needs to be aware of the characteristics that apply to a given product as it moves through the various stages.<\/p>\n Developing new products is a costly and risky process, with high failure rates, but companies can increase their chances of success by setting clear goals, generating new ideas through sources like focus groups and brainstorming, screening concepts, developing prototypes and marketing strategies, test-marketing the product, and finally introducing it to the market with logistical coordination and necessary adaptations for international markets.<\/p>\n When businesses\u00a0make decisions about pricing, they can adopt profit-oriented pricing, competitor-oriented pricing, or customer-oriented pricing. Customer-oriented pricing focuses on the price-value equation: Value = Perceived Benefits \u2013 Perceived Costs. In order to increase value, the business can either increase the perceived benefits or reduce the perceived costs. Today\u2019s marketing tends to favor customer-oriented pricing because it\u00a0prioritizes the customer and the customer\u2019s perception of value.<\/p>\n Distribution channels cover all the activities needed\u00a0to transfer the ownership of goods and move them\u00a0from the point of production to the point of consumption. These activities can be organized as\u00a0five important channel flows: product flow, negotiation flow, ownership flow, information flow, and promotion flow. While channels can be very complex, there is a set of channel structures that can be identified in most transactions: the direct channel, the retail channel, the wholesale channel, and the agent channel.<\/p>\n There are many different marketing communication methods that can be used in the promotion mix. Integrated marketing communication is the process of coordinating all the promotional activity across these different methods. There are also seven common types of marketing communication: advertising, public relations, personal selling, sales promotion, digital marketing, direct marketing, and guerrilla marketing, each with their own advantages and disadvantages.<\/p>\n An elevator pitch is a brief introduction used in networking situations to present yourself professionally and make connections. It can be used in various contexts, such as job fairs, interviews, networking events, and starting conversations, and should consist of introducing yourself, stating your career interest, and highlighting relevant experience or personal attributes in just a few key sentences.<\/p>\n advertising<\/strong><\/p>\n any paid form of communication from an identified sponsor or source that draws attention to ideas, goods, services or the sponsor itself<\/p>\n agent channel<\/strong><\/p>\n also called a broker channel; adds the addition of an agent or broker as an intermediary between the producer and the wholesaler<\/p>\n brainstorming<\/strong><\/p>\n the members of a group think of as many ways to vary a product or solve a problem as possible<\/p>\n brand<\/strong><\/p>\n all the features that distinguish the goods and services of one seller from another: name, term, design, style, symbols, customer touch points, etc<\/p>\n branded house strategy<\/strong><\/p>\n a range of products are sold under one unifying brand<\/p>\n brand extension<\/strong><\/p>\n moving an existing brand name into a new product category, with a new or somehow modified product<\/p>\n brand licensing<\/strong><\/p>\n the process of leasing or renting the right to use a brand in association with a product or set of products for a defined period and within a defined market, geography, or territory<\/p>\n bundling<\/strong><\/p>\n grouping two or more related products together and pricing them as a single product<\/p>\n business products<\/strong><\/p>\n also called industrial products and B2B products; are purchased by other businesses and organizations to be used in production or to support their production process<\/p>\n cash discounts<\/strong><\/p>\n reductions given to customers for paying cash or within some short time period<\/p>\n channel partners<\/strong><\/p>\n the organizations that collectively support the distribution channel<\/p>\n co-branding<\/strong><\/p>\n an arrangement in which two established brands collaborate to offer a single product or service that carries both brand names<\/p>\n competitor-oriented pricing<\/strong><\/p>\n copies the competitor\u2019s pricing strategy or seeks to use price as one of the features that differentiates the product<\/p>\n consumer products<\/strong><\/p>\n those that are purchased by the final user of the product<\/p>\n convenience product<\/strong><\/p>\n an inexpensive product that requires a minimum amount of effort on the part of the consumer in order to select and purchase it<\/p>\n customer-oriented pricing<\/strong><\/p>\n also called value-oriented pricing; seeks to charge the highest price that supports the value received by the customer<\/p>\n digital marketing<\/strong><\/p>\n an umbrella term for using digital tools to promote and market products, services, organizations and brands<\/p>\n direct channel<\/strong><\/p>\n the producer sells directly to the consumer<\/p>\n distribution channel<\/strong><\/p>\n a set of interdependent organizations involved in the process of making a product or service available for use or consumption, as well as providing a payment mechanism for the provider<\/p>\n elevator pitch<\/strong><\/p>\n a brief introduction that you use when you meet someone while networking<\/p>\n focus groups<\/strong><\/p>\n eight to twelve participants led by a moderator in an in-depth discussion on one particular topic or concept<\/p>\n heterogeneous shopping products<\/strong><\/p>\n unique products where the consumer\u2019s decision can be influenced by variations in features<\/p>\n homogeneous shopping products<\/strong><\/p>\n similar products where the consumer\u2019s decision is more likely to be influenced by price<\/p>\n house of brands strategy<\/strong><\/p>\n a company invests in building out a variety of individual brands<\/p>\n Integrated Marketing Communications (IMC)<\/strong><\/p>\n coordinating all promotional activities\u2014advertising (including direct marketing), sales promotion, personal selling, public relations, social media and e-commerce, packaging, and other forms of promotion\u2014to produce a consistent, unified message that is customer focused<\/p>\n leader pricing<\/strong><\/p>\n pricing products below the normal markup or even below cost to attract customers to a store where they wouldn\u2019t otherwise shop<\/p>\n line extension<\/strong><\/p>\n introducing a new variety of offering within the same product category<\/p>\n loss leader<\/strong><\/p>\n a product priced below cost<\/p>\n no-brand branding<\/strong><\/p>\n a type of branding whose feature is the absence of a brand name<\/p>\n odd-even pricing<\/strong><\/p>\n also called psychological pricing; setting a price at an odd number to connote a bargain and at an even number to imply quality<\/p>\n organizational branding<\/strong><\/p>\n strategies for developing a brand image and marketing engine around an organization, promoting the mission, goals, and\/or work of the organization<\/p>\n penetration pricing<\/strong><\/p>\n offering new products at the lowest price possible in the hope of capturing as many customers as possible<\/p>\n personal allowance<\/strong><\/p>\n an offer to pay expenses if an intermediary will aggressively promote a product or service<\/p>\n personal branding<\/strong><\/p>\n strategies for developing a brand image and marketing engine around an individual, treating persons and their careers as products to be branded and sold to target audiences<\/p>\n personal selling<\/strong><\/p>\n uses in-person interaction to sell products and services<\/p>\n place (nation) branding<\/strong><\/p>\n cities, regions, and nations brand and promote places to compete for people, investment, tourism, economic development, and other resources<\/p>\n prestige pricing<\/strong><\/p>\n raising the price of a product so consumers will perceive it as being of higher quality, status, or value<\/p>\n price orientation<\/strong><\/p>\n the relative importance of one factor compared to the others in pricing a product<\/p>\n price skimming<\/strong><\/p>\n the practice of introducing a new product on the market with a high price and then lowering the price over time<\/p>\n price-valuation equation<\/strong><\/p>\n Value = Perceived Benefits \u2013 Perceived Costs<\/p>\n private label branding<\/strong><\/p>\n brands created by retailers<\/p>\n production goods<\/strong><\/p>\n raw materials or component parts used in the production of the final product<\/p>\n product life cycle<\/strong><\/p>\n starts with the product\u2019s development and introduction, then moves toward maturity, withdrawal and eventual decline<\/p>\n profit-oriented pricing<\/strong><\/p>\n the price per product is set higher than the total cost of producing and selling each product to ensure that the company makes a profit on each sale<\/p>\n promotional mix<\/strong><\/p>\n the combination of communication methods used to promote a product<\/p>\n public relations (PR)<\/strong><\/p>\n the process of maintaining a favorable image and building beneficial relationships between an organization and the public communities, groups, and people it serves<\/p>\n quantity discounts<\/strong><\/p>\n reductions in base price given as the result of a buyer purchasing some predetermined quantity of merchandise<\/p>\n retail channel<\/strong><\/p>\n the retailer markets and sells the goods on behalf of the producer<\/p>\n Retailing<\/strong><\/p>\n all activities required to market consumer goods and services to ultimate consumers who are purchasing for individual or family needs<\/p>\n rollout<\/strong><\/p>\n a new product\u2019s introduction to the market<\/p>\n sales promotions<\/strong><\/p>\n activities that go on for a limited period of time with the goal of stimulating sales<\/p>\n seasonal discounts<\/strong><\/p>\n price reductions given for out-of-season merchandise<\/p>\n shopping product<\/strong><\/p>\n products that are purchased occasionally and are more expensive compared to convenience products; consumers want to be able to compare before making a decision<\/p>\n specialty products<\/strong><\/p>\n products are so unique that it\u2019s worth it to go to great lengths to find and purchase them<\/p>\n supply chain<\/strong><\/p>\n the system through which an organization acquires raw material, produces products, and delivers the products and services to its customers<\/p>\n support goods<\/strong><\/p>\n machinery, fixed equipment, software systems, and other tools that assist in the production process<\/p>\n test-market<\/strong><\/p>\n selling a product for a limited time and in limited places to reach potential users<\/p>\n trade discounts<\/strong><\/p>\n price reductions given to middlemen (e.g., wholesalers, industrial distributors, retailers) to encourage them to stock and give preferred treatment to an organization\u2019s products<\/p>\n trade-in allowance<\/strong><\/p>\nPrice<\/h3>\r\n
Place<\/h3>\r\n
Promotion<\/h3>\r\n
Career Connection: Elevator Pitch<\/h3>\r\n
Glossary<\/h2>\r\n
Download a pdf of this page here.<\/a><\/h4>\n
Download the Spanish version here.<\/a><\/h4>\n
Essential Concepts<\/h2>\n
Product<\/h3>\n
Price<\/h3>\n
Place<\/h3>\n
Promotion<\/h3>\n
Career Connection: Elevator Pitch<\/h3>\n
Glossary<\/h2>\n