5. Chapter 8: Marketing
Convenience Products
Products that make life easier.
Consumers buy often, don’t shop around
and don’t delay purchase.
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6. Chapter 8: Marketing
Shopping Products
Expensive or high quality products.
Consumers will shop around for best deal.
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7. Chapter 8: Marketing
Specialty Products
Unique, rare, hard to find products.
Consumers won’t shop around and may go
far to purchase specialty products.
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10. Chapter 8: Marketing
Skim Pricing
Initial price is set high because demand is high.
As demand reduces so to will the price in order
to increase demand.
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11. Chapter 8: Marketing
Penetration Pricing
Initial price is set very low to attract customers
in the hopes of establishing customer loyalty.
As customer loyalty increases (demand) the
price will be raised.
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13. Chapter 8: Marketing
Place (Channels of Distribution)
Channels of distribution are the paths of
ownership that goods follow as they pass
from the producer to the consumer.
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15. Chapter 8: Marketing
Direct Channel
Products are sold directly to the consumer.
Examples:
•Farmer’s market
•Bakery
•Factory Outlet
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16. Chapter 8: Marketing
Indirect Channel
Producer sells their product to an intermediary who
then sells it to the consumer. This adds to the price.
Producer Intermediary Consumer
Example:
Retailer
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17. Chapter 8: Marketing
Specialty Channel
Consumer buys from a place other than a retail
store.
Example:
• Online (e-commerce)
• Vending machine
• Catalogue
• Telemarketing
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18. Chapter 8: Marketing
Promotion
Promotion encourages
consumers to buy products
and services through:
•
•
•
•
•
Advertising
Sales promotions
Public relations
Personal selling
Direct marketing
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