(CHAPTER 8: Marketing strategies, page 211) • The marketing mix consists of four major elements: product, price, promotion and place. • Combined with these four Ps are people, processes and physical evidence to create the extended marketing mix. • Together, these seven Ps make up the strategies of marketing and become the centrepiece of the marketing plan. • The main goal of a marketing manager is to develop and maintain a marketing mix that precisely matches the needs of the customers in the target market. • Marketing segmentation involves dividing the total market into segments. • A business selects one of these segments to become the target market. • The ultimate aim of market segmentation is to increase sales, market share and profits by better understanding and responding to the desires of the different target customers. • The consumer market can be segmented according to four main variables: demographic — features of a population geographic — urban, regional and rural locations psychographic — personality characteristics behavioural — customers’ relationship to the product. • Product/service differentiation, in its broadest sense, is the process of developing and promoting differences between the business’s products or services and those of its competitors. • Product positioning refers to the technique in which marketers try to create an image or identity for a product/service compared with the image of competing products/services.
(CHAPTER 8: Marketing strategies, pages 218–19) • A product is a good or service that can be offered in an exchange for the purpose of satisfying a need or want. • Most products are combinations of tangible and intangible benefits — the total product concept. • With mass-produced products, it is often on the differences in the intangible benefits that product competition is based. • A brand is a