This document summarizes key aspects of marketing including the four Ps of marketing: product, price, place, and promotion. It describes different types of consumer products - convenience, shopping, and specialty - and pricing strategies like skim pricing, penetration pricing, and competitive pricing. It also discusses channels of distribution including direct, indirect, and specialty channels. The document provides an overview of marketing fundamentals and the key considerations for each element of the marketing mix.

1. Chapter 8: Marketing
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2. Chapter 8: Marketing
The Four Ps of Marketing
1. Product
2. Price
3. Place
4. Promotion
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3. Chapter 8: Marketing
Products and Services
The development of good products and services
considers:
- quality
- design features
- benefits
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4. Chapter 8: Marketing
Types of Consumer Products
1. Convenience
2. Shopping
3. Specialty
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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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8. Chapter 8: Marketing
Price
Businesses need to be
price sensitive and look
at their competitors’
prices for the same
products.
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9. Chapter 8: Marketing
Types of Pricing Strategies
1. Skim Pricing
2. Penetration Pricing
3. Competitive Pricing
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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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12. Chapter 8: Marketing
Competitive Pricing
Adjusting prices to match that of competitors’.
This may lead to PRICE WARS!
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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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14. Chapter 8: Marketing
Channels of Distribution
1. Direct
2. Indirect
3. Specialty
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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:
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•
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Advertising
Sales promotions
Public relations
Personal selling
Direct marketing
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