Chapter 11: Marketing and Distribution

Marketing
All the activities needed to generate consumer demand and to move goods and services from the producer to the consumer.
Consumer Sovereignty
The role of the consumer as ruler of the market when determining the types of goods and services produced.
Utility
The ability of any good or service to satisfy consumer wants.
Market Research
Gathering, recording and analyzing data about the types of goods and services that people want.
Market Survey
Information gathered by researchers about possible users of a product based on such characteristics as age, sex, income, education, and geographic location.
Test-Marketing
Offering a product for sale in a small area for a limited period of time to see how well it sells before offering it nationally.
Penetration Pricing
Selling a new product at a low price to attract customers away from an established product.
Price Leadership
A practice in some industries in which the largest firm publishes its price list ahead of its competitors, who then match those announced prices.
Promotion
Use of advertising to inform consumers that a new or improved product or service is available and to persuade them to purchase it.
Direct-Mail Advertising
Type of promotion using a mailer that usually includes a letter describing the product or service and an order blank or application form.
Product Life Cycle
Series of stages that a product goes through from first introduction to complete withdrawal from the market.
Channels of Distribution
Routes by which goods are moved from producers to consumers.
Wholesalers
Businesses that purchase large quantities of goods from producers for resale to other businesses.
Retailers
Businesses that sell consumer goods directly to the public.
E-Commerce
Business transactions conducted over the Internet.