Marketing 1 Final Exam Review

marketing
the process of planning, pricing, promotion, and distributing
utility
an attribute capable of satisfying a customer’s wants and needs
added value
function of marketing, adds value to the product
exchange
transaction between two individuals, money, or products
target marketing
group identified for a specific marketing program
marketing concept
businesses should satisfy customers’ needs and wants while making a profit
mass marketing
single marketing plan to reach all customers
time utility
having product available at certain times
information utility
communicate necessary information to customers
form utility
changing raw materials or putting parts together to make them more useful
place utility
having a product where customers can buy it
possession utility
the exchange of product for money
factors of production
land, labor, capital, entrepreneurship
land
everything contained in the earth or found in the seas
labor
all the people who work
capital
money to start and operate a business
resources
all the things used in producing goods and services
Geographics
segmentation of the market based on where people live
Demographics
statistics that describe a population in terms of personal characteristics such as age, gender, income, marital status, ethnicity, education, and occupation
psychographics
studies of consumers based on social and psychological characteristics
product benefits
benefit received by customers from owning a product
market share
a company’s percentage of total sales volume generated by all competition in a given market
marketing mix
the four basic marketing strategies, called the 4 Ps: product, place, price, and promotion
mixed economy
all economies in the world today are mixed; government interferes with the free market
command economy
a system in which the country’s government makes economic decisions and decides what, how, and for whom products and made and distributed
customization
the process of creating products or promotions for certain countries or regions
protectionism
a governments establishment of economic policies that restrict imports to protect domestic industries
WTO
a global coalition of more than 140 governments that makes rules governing international trade
GATT
reduced tariffs created a common set of trading rules
NAFTA
an international trade agreement among the U.S., Canada, and Mexico
Federal Reserve Board
government organization that independently monitors the economy and interest rates
Contract manufacturing
the process of hiring a foreign manufacturer to make products according to certain specifications
Foreign direct investment
investments in factories, offices, and other facilities in another country that are used for a business’s operations
public sector
local, state, and federal government agencies and services, such as public libraries and state universities
balance of trade
the difference in value between a nation’a exports and its imports
tariffs
a tax on imports, also known as a duty
imports
goods and service purchased from other countries
exports
goods and service sold to other countries
embargo
a total ban on specific goods coming into and leaving a country
quota
a limit on either the quantity or monetary value of a product that may be imported
deficit
when a country buys more than it sells
protective tariff
a high tax on imports to help domestic business
ethical behavior
basic value and moral principles that guide the behavior of individuals and groups
trademark
a brand name, brand mark, trade name, trade character, or a combination of these elements that is given legal protection by the federal government
production
the process of creating, expanding, manufacturing, or improving on goods and services
selling
providing customers with goods and services they want
generation y
sons and daughters of the late baby boomers
standard of living
a measurement of the amount and quality of goods and services that a nation’s people have that reflects their quality of life
trade surplus
more exports than imports
surplus
supply exceeds demand
supply
amount of goods producers are willing to make and sell
demand
consumer willingness and ability to buy products
recovery
a period of renewed economic growth
inflation
a period of rising prices
incentive
producers earned or given away through contests, sweepstakes, and rebates
derived demand
the demand for industrial goods based on the demand for consumer goods and services
risk
the potential for loss or failure
monopoly
1 business that controls the product
shortage
more demand than supply
productivity
the output per worker hour that is measured over a defined period of times, such as a week, month, or year
infrastructure
physical development of a country
prosperity
when the economy is flourishing, also known as expansion
recession
a period of economic slowdown that lasts for at least 6 months
depression
a period of prolonged recession
scarcity
the difference between wants and needs and available
wholesalers
channel of distribution that obtains goods from manufacturers and resells them to industrial users, other wholesalers, and retailers
GNP
Gross National Product: the total dollar value of goods and services produced by a nation, including the goods and services produced abroad by U.S. citizens and companies
Non-profit organization
an organization that can function like a business but uses the money it makes to find the cause identified in its charter
monopolies
1 business that controls the product
Capitalist economy
an economic system based on private ownership of capital
Market economy
no government involvement in economic decisions
customer profiles
a list of of information about a target market, such as age, income level, ethnicity, occupation, attitudes, lifestyle, and geographic residence
disposable income
the money left over after taxes are taken out of a consumer’s income
discretionary income
the money left over from a consumer’s income after paying for basic living necessities such as food, shelter, and clothing
external opportunities
opportunities found outside of the company
implementation
putting the marketing plan into action and managing it
environmental scan
an analysis of outside influences that may have an impact on an organization
executive summary
a brief overview of an entire marketing plan
specialization
creating a product for individuals
customer
a consumer who buys a product
consumer
a person who purchases goods or services for personal use
goods
tangible items of monetary value that satisfy needs and wants
products
a good sold by suppliers
services
intangible items of monetary value that satisfy needs and wants
product decisions
naming products and deciding how to match the target markets’ needs
price decisions
finding out what customers are willing to pay and taking into account what the competition charges as well as what price to sell a product to change industrial customers as well as resellers
place decisions
determine how and where a product will be distributed and decide which transportation methods and what stock levels are most effective
promotion decisions
deal with how potential customers will be told about a company’s products, including the message, special offers, and timing
distribution
the process of deciding how to get goods in customers’ hands
product/service management
obtaining, developing, maintaining, and importing a product
positioning
the image a product projects that sets it apart from competition
product planning
making decisions about the features and service of a product or idea that will help sell that product
free enterprise system
a system that encourages individuals to start and operate their own businesses in a competitive market without government involvement
price competition
the sale price of a product-the assumption that consumers will buy the product with the lowest price
non-price competition
competition based on factors that are not related to price (product quality, service and financing, business location and reputation)
licensing agreement
letting another company use a trademark, patent, special formula, company name or some other intellectual property for a fee or royalty