MARKETING STUDY GUIDE
Pricing Strategies
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Market Entry Pricing
o Penetration Pricing: Setting a low initial price to gain market share quickly.
o Skimming Pricing: Setting a high initial price and lowering it over time.
Demand-Oriented Pricing: Adjusting prices based on customer demand and perceived
value.
Dynamic Pricing: Prices change in real-time based on demand, competition, or other
variables.
Real-Time Price Adjustments: Automated pricing based on market data, often used in ecommerce.
Price Bundling: Selling products together at a combined price, often lower than buying
separately.
Competitive Pricing Analysis: Evaluating competitors’ prices to set or adjust your own.
Price Elasticity: Measures how sensitive demand is to price changes.
Demand Curve: Visualizes the relationship between price and quantity demanded.
FTC Regulations and Pricing: U.S. Federal Trade Commission ensures fair pricing
practices.
Marketing Mix (4Ps + 3Ps)
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Product Strategy: Managing features, design, branding, and lifecycle of a product.
Price Strategy: Determining how much to charge, considering costs, value, and
competition.
Promotion Strategy: Using advertising, sales promotions, PR, etc., to stimulate demand.
Place/Distribution Strategy: Delivering the product to the right place at the right time (not
listed, but part of 4Ps).
People: Employees and customers shaping the service experience.
Physical Environment: Tangible cues (decor, layout) in service delivery.
Process: Workflow and operations in service delivery.
Product Lifecycle
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Introduction Phase: High costs, low sales; focus on awareness.
Growth Stage: Rising sales and competition; focus on differentiation.
Maturity Stage: Peak sales, market saturation; focus on brand loyalty.
Decline Stage: Sales fall; consider discontinuation or rebranding.
Managing Product Lifecycle: Timely updates, rebranding, or repositioning.
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Product Modification: Updating features or design to sustain interest.
Advertising & Promotion
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Advertising Appeals
o Fear Appeal: Uses fear to drive behavior (e.g., smoking ads).
o Humor Appeal: Grabs attention, builds emotional connection.
o Emotional Appeal: Taps into feelings like love, pride, or nostalgia.
Reinforcement Advertising: Reassures consumers about their purchase.
Reminder Ads: Maintain brand awareness post-purchase.
Pioneering Ads: Promote a new product or category.
Public Service Ads (PSAs): Non-commercial messages for public good.
Comparative Advertising: Compares your product with competitors’.
Advertising Message Formulation: Crafting persuasive, targeted messaging.
Source Credibility: Trustworthiness of the spokesperson impacts effectiveness.
CPM (Cost per Thousand): Advertising cost per 1,000 impressions.
GRP (Gross Rating Points): Measure of total exposure (Reach × Frequency).
Advertising Media Choices: Selecting platforms (TV, social, print, etc.).
Nonpersonal Communication: Advertising through media, not direct human interaction.
Promotion to Sales Ratio: Measures how much sales promotion contributes to revenue.
Digital Marketing
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Web 3.0: Next-gen internet using AI, blockchain, and decentralized systems for
personalized, intelligent experiences.
Digital Personalization: Tailoring content based on user data and behavior.
User-Generated Content (UGC): Content created by consumers (reviews, photos) used in
marketing.
Blogs: Informative posts that build authority and improve SEO.
Digital Marketing Platforms: Tools like Google Ads, Meta, TikTok for online marketing.
YouTube & Brand Communication: Video platform for awareness and engagement.
Video Content in Marketing: Boosts engagement, especially on social platforms.
Print vs. Digital Media: Tradeoff between tactile trust of print and reach/metrics of
digital.
Social Media Disclosure: Influencers and brands must disclose paid relationships.
Brand Evangelists & Influencers: Loyal customers or paid influencers who promote
brands.
Choiceboards: Tools that let customers design products online (e.g., NikeID).
Sales & Budgeting
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Target Audience Identification: Segmenting and selecting potential customers.
Paid Advertising Basics: Budgeting for ads across platforms.
Marketing Budgeting Methods: Approaches include percentage of sales, objective-task,
etc.
Personal Selling & Its Limitations: Personalized persuasion with high cost and scalability
limits.
Customer Feedback Mechanisms: Surveys, reviews, or analytics to measure satisfaction.
Customer Value Enhancement: Strategies to improve perceived value (loyalty programs,
upgrades).
Website Design & Commerce: Usability, aesthetics, and trust in driving conversions.