The elements of the marketing mix: price, product, promotion and place key terms

Price penetration

A pricing strategy that sets a low initial price to quickly attract a large customer base and gain market share.

Price elasticity of demand

A measure of how much the quantity demanded of a product changes in response to a change in its price.

Price skimming

A pricing strategy where a firm sets a high initial price for a new product and gradually lowers it over time to attract different customer segments.

Price elasticity of demand

The percentage change in quantity demanded divided by the percentage change in price, indicating how sensitive consumers are to price changes.

Innovation

Innovation is the process of creating new or improved products, services or processes that add value for customers and the business.

Product Image

The overall perception and visual impression that consumers have of a product, shaped by its design, packaging, branding and marketing communications.

Unique Selling Point

A specific feature or benefit that sets a product apart from competitors and is communicated to customers.

Product life cycle

The four stages—introduction, growth, maturity, decline—that a product experiences from launch to withdrawal, each with distinct demand patterns.

Product line extension

A strategy that adds new variants to an existing product range to attract new customers or increase sales.

Boston Matrix

A visual representation that classifies products into Stars, Question Marks, Cash Cows and Dogs based on market growth and relative market share.

Boston Box

A portfolio analysis tool that categorises products by market growth and market share into Stars, Question Marks, Cash Cows, and Dogs.

Social media

Online platforms that enable users to create, share, and interact with content, used by businesses for targeted advertising, engagement, and brand building.

Promotion

The set of activities that communicate the benefits of a product or service to target customers to influence buying decisions.

Promotional mix

The combination of advertising, sales promotion, public relations, personal selling and direct marketing that a business uses to influence consumer behaviour.

Promotion

A marketing communication tool used to inform, remind, persuade, and influence consumer behaviour towards a product or service.

telesales

A distribution channel where sales are made directly to customers via telephone or online communication, bypassing physical retail outlets.

distribution

The process of getting a product from the producer to the consumer, including the choice of channels and methods used.

m‑commerce

M‑commerce refers to the buying and selling of goods or services through mobile devices such as smartphones and tablets.

m‑commerce

Mobile commerce, the buying and selling of goods or services through mobile devices such as smartphones and tablets.

Marketing mix

The combination of product, price, promotion and place that a business uses to meet customer needs and achieve its objectives.

Marketing activities

Actions taken by a business to promote its products or services, including advertising, sales promotions, public relations and personal selling.

Marketing mix

The set of controllable, tactical marketing tools—product, price, place, promotion—that a firm uses to achieve its marketing objectives.

Marketing mix

The combination of price, product, promotion and place that a business controls to influence customer demand.