Marketing: Chapter 5 Vocabulary

Free enterprise system
Encourages individuals to start and operate their own businesses and competitive system, without government involvement.
Patent
If you get a ______ on an invention, you alone own the rights to that item or idea.
Trademark
A word, name, symbol, sound, or color that identifies a good or service that cannot be used by anyone but the owner.
Copyright
Involves anything that is authored by an individual, such as writings (books, magazine articles, et.) music, and artwork.
Competition
The struggle for customers.
Price competition
Focuses on the sale price of a product.
Nonprice competition
Businesses chose to compete on the basis of factors that are not related to price.
Monopoly
Exclusive control over a product or the means of producing it
Business Risk
The potential for loss or failure
Profit
The money earned from conducting businesses after all costs and expenses have been paid.
Supply
The amount of goods producers are willing to make and sell.
Demand
Refers to consumer willingness and ability to buy products.
Domestic Business
A business that sells its products only in its own country.
Global Business
Sells its products in more than one country.
For-Profit business
Seeks to make a profit from its operations
Nonprofit organization
Functions like a business but use the money it makes to fund the cause identified in its charter.
Public sector
Government financed agencies.
Private sector
Businesses not associated with the government
Industry
A group of establishments primarily engaged in producing or handling the same product or group of products or in rendering the same service.
Derived demand
The industrial market is based on, or derived from, the demand for consumer goods and services.
Wholesalers
Obtain goods from manufacturers
Retailers
Buy goods from the wholesalers or directly from manufacturers and resell them to the consumer.
Production
The process of creating, expanding, manufacturing, or improving on goods and services.
Management
The process of achieving company goals by effective user of resources through planning, organizing, and controlling.
Finance
The function of business that involves money management.
Accounting
The discipline that keeps track of a company’s financial situation.