Chapter 3 Marketing Vocabulary

Wages
Money earned for working
Barter
Exchange of one good or service for another good or service
Money
Anything of value that is accepted in return for goods or services
Medium of exchange
Concept that money is used in exchange for goods and services
Unit of value
Common measure of what something is worth or what something costs
Store of value
Item that can be saved, or stored, and used at a later date while holding its value
Time value of money
Idea that money is worth more today than it would be in the future
Production
Any activity related to making a product
Finance
All activities involving money
Management
Process of controlling and making decisions about a business
Liability
Legal responsibility; A debt of the business, or what it owes to others
Sole proprietorship
The only person who owns a business and is personally responsible for all its debts
Partnership
Relationship between two or more people who join to create a business
Corporation
As defined by the U.S. Supreme Court, is “an artificial being, invisible, intangible, no existing only in contemplation of the law.”
Contract
Legally-binding agreement
Nonprofit organization
Organization that is an entity that exists to serve some public purpose
Utility
Characteristics of a product that satisfies human wants and needs
Adding value
Enhancing a feature or service to inspire a customer to purchase
Form utility
Value that is added when a business changes the form of something to make it more useful
Place utility
Value that is added when products are available at convenient places
Time utility
Value that is added when products are made available at the times that customers need and want them
Information utility
Value that is added when marketing provides information about a product to a customer
Possession utility
Value added when it becomes easier for a customer to acquire a product
Consumer market
Customers who buy products for their own use
Business-to-consumer
Consumer market of business selling primarily to individual consumers
Business-to-business
Business market of businesses selling primarily to other business
Industry
Group of business that produce similar good or services
Commercial
Buying or selling on a large scale
Business market
Customers who buy products for use in a business