Marketing Chapter 3-5

Industry
A group of establishments primarily engaged in producing/handling the same product or group of products or rendering the same service
Private Sector
Businesses not associated with government agencies
Finance
Function of business that involves money management
Management
The process of achieving company goals by effective use of resources through planning, organizing, and controlling
Production
Process of creating, growing, manufacturing, or improving on goods/services
Non-Profit Organization
Functions like a business but uses the money it makes to fund the cause identified in the charter
Profit Organization
Seeks to make a profit from its operations
Global Business
Sells its products in more than one country
Retailers
Buy goods from wholesalers and resell them to organizational users, wholesalers, and retailers
Wholesalers
Obtain goods from manufacturers and resell them to organizational users, other wholesalers, and retailers
Derived Demand
Demand for consumer goods/services
Accounting
Discipline that keeps track of a company’s financial situation
Patent
You alone own the rights to an item or an idea
Private Enterprise
Business ownership by ordinary people, not the government
Competition
The struggle for customers between businesses
Copyright
Anything authored by an individual and gives the author the exclusive right to reproduce or sell the work
Trademark
Word/Name/Symbol/Sound/or Color that identifies a good or service
Monopoly
Exclusive control over a product or the means of producing it
Non-price competition
Businesses choose to compete on the basis of factors that are not related to price
Price Competition
Focuses on the sale price of an item
Domestic Business
Business that sells its products only in its own country
Demand
Consumer willingness and ability to buy products
Supply
Amount of goods producers are willing to make and sell
Profit
Money earned from conducting business after all costs and expenses have been paid
Business Risk
The potential for loss or failure
Public Sector
Government financed agencies
Customization
Creating specifically designed products/promotions for certain countries/regions
Exports
Goods or Services sold to other countries
Imports
Goods/Services purchased from other countries
International Trade
Exchange of goods/services among nations
Free Trade
Commercial exchange between nations conducted on free market principles
Balance of trade
Difference in value between exports and imports
Embargo
Total ban on specific goods coming into and leaving a country
Quota
Limits either the quantity/monetary value of product that may be imported
Tariff
Tax on imports
European Union
Europe’s trading bloc
NAFTA
Trade agreement between US, Canada, and Mexico
World Trade Organization
Global coalition of nations that make rules governing international trade
Protectionism
A government establishes economic policies that restrict Imports in order to protect domestic industries
Foreign direct investment
Establishment of a business in a foreign country
Joint Venture
Establishment of a business in a foreign country
Contract Manufacturing
Hiring a foreign manufacturer to make a product according to specifications
Licensing
Letting another company use a trademark/other intellectual property for a fee or royalty
Adaptation
Company’s use of existing product/promotion from which changes are made
Globalization
Complete Standardization
Mininationals
Small to midsize companies with operations in foreign countries
Multinationals
Large corporations with operations in several countries
Producer Price Index
Measures wholesale price levels in the economy
Business cycle
Expansion, Recession trough,recovery
Expansion
When the economy is flourishing
Entrepreneurship
The skills of people who are willing to invest their time/money to run a business
Gross National Product
Total dollar value of goods/services produced abroad by US citizens and companies
Inflation
Rising Prices
Consumer Price Index
Change in price over a period of time of 400 specific retail goods
Resources
All the things used in producing goods/services
Factors of Production
Land, Labor, Capital, Entrepreneurs
Infrastructure
The physical development of a country
Economy
The organized way a country provides for the needs and wants of its people
Command Economy
The government makes all economic decisions
Productivity
Output per worker hour measured over a defined period of time
Gross Domestic Product
Output of goods and services produced by labor and property located within a country
Scarcity
Difference between wants and needs and available resources
Traditional Economy
Habits and Traditions and rituals answer basic questions of what how and for whom
Market Economy
No government involvement in economic decision
Recession
Period of economic slowdown that lasts for at least 2 quarters, or 6 months
Depression
Period of prolonged recession
Recovery
Period of renewed economic growth following a recession/depression