Essential Marketing Concepts: Mix, PLC, and Consumer Goods Types

Essential Marketing Concepts and Definitions

Convenience Goods: Products ready to be purchased immediately.
Sporadic Purchase Goods: These goods require more planning and thought during the purchasing process by consumers (e.g., electronics, furniture).
Specialty Goods: This category is composed of goods that are deemed luxuries.

Advertising: A paid promotion method where a sponsor calls for public attention through paid announcements (e.g., TV, newspapers).
Public Relations (PR): Marketers try to build a favorable image in the market by creating relations with the general public. Companies carry out several PR campaigns with the objective of gaining the support of all people associated with the company, either directly or indirectly.
Direct Marketing: Utilizing technology, companies reach customers directly without any intermediaries or paid media (e.g., mail, SMS).
Point of Sale (POS): Influence used to make a last-minute purchase, often in the checkout queue.

Introduction: This phase requires investment in advertising and marketing campaigns focused on making consumers aware of the product’s benefits.
Growth: If the product is successful, it moves to the growth stage. This is characterized by growing demand, an increase in production, and expansion in its availability.
Maturity: The most profitable stage, while the cost of producing and marketing declines.
Decline: The product takes on increased competition as other companies emulate its success, sometimes with enhancements or lower prices. The product may lose market share and begin its decline.

Product: Refers to a good or service that a company offers to customers. Ideally, a product should fulfill an existing consumer demand. Alternatively, a product may be so compelling that consumers believe they need to have it, thereby creating a new demand.
Price: The cost consumers pay for a product. Marketers must link the price to the product’s real and perceived value, but they also must consider supply costs, seasonal discounts, and competitors’ prices. Business executives may raise the price to give the product the appearance of being a luxury. Alternatively, they may lower the price so more consumers can try the product.
Promotion: Includes advertising, public relations, and promotional strategy. The goal is to reveal to consumers why they need the product and why they should pay a certain price for it.
Placement (Distribution): When a company makes decisions regarding place, they determine where they should sell a product and how to deliver it to the market. The goal is always to get products in front of the consumers most likely to buy them.

In addition to the 4 Ps, the extended marketing mix includes:

Note: The Product remains the most important element.

These formulas are used to measure price sensitivity:

Arc Elasticity Formula:

((Q2-Q1)/Q1) / ((P2-P1)/P1)

Point Elasticity Notation:

P1/Q1 x inQ/inP