P

4 Ps
product, place, price, promotion

7 Ps
product, place, price, promotion, process, people, physical evidence

Parallel importing
when importers buy products from distributors in one country and sell them in another to distributors who are not part of the manufacturer’s normal distribution; caused by big price differences for the same product between different countries

Parent company
a company which owns another

Penetration strategy
a low-priced new product launch designed to achieve maximum market share

Perception
the process by which people select, organize and interpret sensory stimulation into a meaningful picture of the world

Perceptual mapping
a useful tool for determining the position of a brand as seen by customers

Perishability
a characteristic of services, namely that the capacity of a service business, such as a hotel room, is perishable – if it is not occupied, that is lost income which cannot be recovered

Personal selling
oral communication with prospective purchasers with the intention of making a sale

Personality
the inner psychological characteristics of individuals that lead to consistent responses to their environment

Physical distribution
a set of activities concerned with the physical flows of materials, components and finished goods from producer to channel intermediaries and consumers

Physical evidence
that part of the services marketing mix which refers to the environment in which the service is delivered and tangible goods which facilitate the communication and performance of the service

PIMS
Profit Impact of Marketing Strategy

Place
the distribution channels to be used, outlet locations, methods of transportation

Portfolio planning
managing groups of brands and product lines

Position defence
to build a fortification around existing products

Positioning
the choice of target market (where the company wishes to compete) and differential advantage (how the company wishes to compete)

Positioning chart
a useful tool for determining the position of a brand as seen by customers (also known as a perceptual map)

Post-testing
the evaluation of the effectiveness after a campaign

Pre-emptive defence
usually involves continuous innovation and new product development

Premium
any merchandise offered free or at low cost as an incentive to purchase

Press relations
communications about a product or organization by placing news about it in the press without paying for the time or space directly

Pre-testing
the testing of advertisements before screening

Price unbundling
pricing each element in the offering so that the price of the total product package is raised

Price waterfall
the difference between list price and realised or transaction price

Price
(1) the amount of money paid for a product; (2) the agreed value placed on the exchange by a buyer and seller

Private label
retailer’s own brand

Problem children
Low share products in high growth markets

Process
procedure, flow of activities, sequence of tasks

Product
a good or service offered or performed by an organization or individual which is capable of satisfying customer needs

Product champion
an individual who takes on or is given responsibility to promote a particular product or project within an organization and bring it to a successful conclusion

Product churning
a continuous spiral of new product introductions

Product development
increasing sales by improving present products or developing new products for current markets

Product differentiation
the process of making a product distinctive along a factor or set of factors important for customer choice

Product features
the characteristics of a product that may or may not convey a customer benefit

Product form competitors
technically similar competing products

Product life cycle
a four-stage cycle in the life of a product illustrated as a curve representing the demand, the fours stages being introduction, growth, maturity and decline

Product line
a group of brands which are closely related in terms of the functions and benefits they provide

Product line pricing
taking account of the prices of the existing products when introducing a new product

Product manager
the person responsible for co-ordination of functional areas to support the success of the product

Product mix
the total set of products marketed by the company

Product portfolio
the total range of products offered by the company cf. Product mix

Product positioning
the creation of a unique image of the company’s product in the minds of the customer

Product repositioning
modification of the product to make it more acceptable to its present market

Product substitutes
products which customers regard as fulfilling the same needs although they are technically dissimilar

Product type
products can be classified into four main types, namely, materials, components, plant & equipment and maintenance/repair/ operation (MRO)

Production orientation
a business approach that is inwardly focused either on costs or on a definition of a company in terms of its production facilities

Profile segmentation
the grouping of people in terms of profile variables such as age and socio-economic group so that marketers can communicate to them

Project teams
the bringing together of staff from such areas as R&D, engineering, manufacturing, finance, and marketing to work on a project such as new-product development

Promotional mix
advertising, personal selling, sales promotions, public relations and direct marketing

Proposal analysis
the prediction and evaluation of proposals and demands likely to be made by someone with whom one is negotiating

Prospect
An individual or organization who is a possible buyer of a product

Prospecting
searching for and calling upon potential customers

Psychographic segmentation
the grouping people according to their lifestyle and personality characteristics

Public relations
the management of communications and relationships to establish goodwill and mutual understanding between an organization and its public

Publicity
the communication of a product or business by placing information about it in the media without paying for time or space directly

Pull strategy
Direct communication by manufacturers or service providers with consumers to draw them into channel intermediaries, usually using advertising and consumer promotions

Push strategy
an attempt to sell into channel intermediaries using personal selling and sales promotions