MARKETING DYNAMICS CH. MARKETING DYNAMICS CH. 1-4, 6 STUDY GUIDE1-4, 6 STUDY GUIDE

The US economy is referred to asThe US economy is referred to as

mixed economy.mixed economy.

An example of non price An example of non price competitioncompetition

is a bookstore that the store owners provide is a bookstore that the store owners provide literature seminars to parent and teacher literature seminars to parent and teacher groups, and they create recommended reading groups, and they create recommended reading lists for classroom use.lists for classroom use.

Discretionary incomeDiscretionary income

The money left from a person’s gross income The money left from a person’s gross income after paying for basic necessities such as food, after paying for basic necessities such as food, shelter, and clothing.shelter, and clothing.

An example of Marketing An example of Marketing researchresearch

Is filling out a survey from a business such as Is filling out a survey from a business such as a hotel.a hotel.

Possession utilityPossession utility

The exchange of a product for some monetary The exchange of a product for some monetary value.value.

Promotion utility

Any form of communication a business or organization uses to inform, persuade, or remind.

Service Tasks performed for a customer.

Gross Domestic Product

a measure of the goods and services produced using labor and property

Imports are goods and services purchased from

other countries.

BenefitsBenefits

are privileges, or monetary payments beyond are privileges, or monetary payments beyond salary or wages, that go with a job.salary or wages, that go with a job.

focuses on the sale price of a productfocuses on the sale price of a product

Target marketing

focusing all marketing decisions on a very specific group of people who you want to reach.

? information about the target market

with regard to the age, income level, ethnic

TariffTariff

is a tax on imports.is a tax on imports.

International TradeInternational Trade

is the exchange of goods and services between is the exchange of goods and services between nations.nations.

Disposable income

money left after taking out taxes.

Shortages

occur when demand exceeds supply

SurplusSurplus

occurs when the supply of goods exceeds occurs when the supply of goods exceeds demand.demand.

SellingSelling provides customers with goods and services provides customers with goods and services

they want.they want.

Securities and Exchange Commissions

responsible for regulating the sale of stocks and bonds

Marketing concept

The idea that businesses must satisfy customers’ needs and wants in order to make a profit

ProfitProfit

the money earned from conducting business the money earned from conducting business after all costs and expenses have been paid.after all costs and expenses have been paid.

Three factors that affect business cycles Three factors that affect business cycles areare

business, consumers and governmentbusiness, consumers and government

Embargo

is a total ban on specific goods coming into and leaving a country.

Marketing MixMarketing Mix

a combination of four strategies used to market a combination of four strategies used to market a product such as product, place, price and a product such as product, place, price and promotion.promotion.

Market segmentation

a way of analyzing a market by specific characteristics in order to create a target market.

ExportsExports

areare goods and services sold to other goods and services sold to other countriescountries..

Customer

buys the products.

PromotionPromotion

communicating with potential customers to communicating with potential customers to inform, persuade, or remind them about a inform, persuade, or remind them about a businesses products.businesses products.

Pricing

dictates how much to charge for goods and services in order to maximize profits.

Free Enterprise systemFree Enterprise system

encourages individuals to start and operate encourages individuals to start and operate their own businesses without government their own businesses without government intervention.intervention.

Financing

getting the money that is necessary to pay for the operation of a business.

ProductsProducts

includes goods and services, both of which includes goods and services, both of which have monetary value and satisfy customer's have monetary value and satisfy customer's needsneeds

GeographicsGeographics

information about where people liveinformation about where people live

Federal Trade CommissionFederal Trade Commission

investigates deceptive and misleading business investigates deceptive and misleading business practices, like false advertising.practices, like false advertising.

DistributionDistribution

involves deciding where and to whom involves deciding where and to whom products need to be sold in order to reach the products need to be sold in order to reach the finalfinal users. users.

PsychographicsPsychographics

involves studies of consumers based on social involves studies of consumers based on social and psychological characteristics.and psychological characteristics.

Occupational areaOccupational area

is a category of jobs that involves similar skills is a category of jobs that involves similar skills and aptitudes.and aptitudes.

Balance of TradeBalance of Trade

is the difference in value between exports and is the difference in value between exports and imports of a nation.imports of a nation.

GoodsGoods

are the kinds of things you can touch or hold are the kinds of things you can touch or hold in your hand.in your hand.

InfrastructureInfrastructure

is the physical development of a country is the physical development of a country including its roads, ports, sanitation facilities, including its roads, ports, sanitation facilities, and utilities, especially telecommunicationsand utilities, especially telecommunications..

MarketingMarketing

is the process of developing, promoting, and is the process of developing, promoting, and distributing products to satisfy customers' distributing products to satisfy customers' needsneeds

Consumer Price IndexConsumer Price Index

measures change in price over a time of some measures change in price over a time of some 400 specific retail goods and services used by 400 specific retail goods and services used by the average household such as food, housing, the average household such as food, housing, utilities, transportation and Medicare.utilities, transportation and Medicare.

Producer Price indexProducer Price index

measures wholesale price levels in the measures wholesale price levels in the economy.economy.

Career-sustainingCareer-sustaining

the marketing path that involves somewhat the marketing path that involves somewhat more education and training than entry level.more education and training than entry level.

RiskRisk

the potential for loss or failure in relation to the potential for loss or failure in relation to the potential for improved earnings.the potential for improved earnings.

Sherman Anti-Trust ActSherman Anti-Trust Act

was created to prevent monopolies.was created to prevent monopolies.

ConsumersConsumers

Persons who uses the productPersons who uses the product..

DemographicsDemographics

Statistics that describe a population in terms of Statistics that describe a population in terms of personal characteristics such as age, gender, personal characteristics such as age, gender, income, ethnic background, education, and income, ethnic background, education, and occupation.occupation.

Place UtilityPlace Utility

Having a product where customers can buy it.Having a product where customers can buy it.

PricePrice

The value of money placed on a good or The value of money placed on a good or service.service.

A business can get involved in international A business can get involved in international trade bytrade by

importing, exporting and/or setting up shop in importing, exporting and/or setting up shop in a foreign country a foreign country

As a funder of public libraries, the As a funder of public libraries, the

government is acting in what role?government is acting in what role? as a provider of servicesas a provider of services

Capital isCapital is The money needed to start and operate a The money needed to start and operate a

businessbusiness

EntrepreneurshipEntrepreneurship

The process of starting and managing your The process of starting and managing your own business.own business.

Four roles that our government plays in our Four roles that our government plays in our free enterprise system include free enterprise system include

providing general servicesproviding general services supporter of businessessupporter of businesses regulatorregulator and competitor.and competitor.

LaborLabor

All of the people who work in the economy.All of the people who work in the economy.

ProsperityProsperity Point in the business cycle when the economy Point in the business cycle when the economy

flourishes.flourishes.

ScarcityScarcity

The difference between wants and needs and The difference between wants and needs and available resources.available resources.

PsychographicsPsychographics

Studies of consumers based on social and Studies of consumers based on social and psychological characteristics.psychological characteristics.

Three goals of any economy are:Three goals of any economy are: Stable pricesStable prices ProductivityProductivity Low unemploymentLow unemployment

Federal Reserve BoardFederal Reserve Board

has the power to control the U.S. monetary has the power to control the U.S. monetary supply.supply.

The Occupational Safety and Health The Occupational Safety and Health AdministrationAdministration

is a governmental regulatory agency created to is a governmental regulatory agency created to protect employees.protect employees.

Three major businesses that make our Three major businesses that make our government a competitor in the market place aregovernment a competitor in the market place are

Tennessee Valley AuthorityTennessee Valley Authority AmtrakAmtrak U. S. Postal ServiceU. S. Postal Service

Three types of trade barriers Three types of trade barriers areare TariffsTariffs QuotasQuotas and embargoesand embargoes

Two economic factors that can Two economic factors that can discourage international trade discourage international trade

areare Labor costs and infrastructureLabor costs and infrastructure

Two political factors that can discourage Two political factors that can discourage international trade areinternational trade are

political corruption and government instability political corruption and government instability

What do U.S. fast food companies enter into in What do U.S. fast food companies enter into in order to open franchises in foreign countries?order to open franchises in foreign countries?

Joint VenturesJoint Ventures

What is the agency that was created to What is the agency that was created to police the General Agreement on Tariffs police the General Agreement on Tariffs and Trade (GATT)?and Trade (GATT)?

World Trade OrganizationWorld Trade Organization

What is the group that decides whether or not What is the group that decides whether or not a business will survive?a business will survive?

the consumersthe consumers

What is the term for the struggle What is the term for the struggle between companies for between companies for customers?customers? CompetitionCompetition

When does the potential for profit increase? When does the potential for profit increase? as the risk increasesas the risk increases

When the Federal and state governments When the Federal and state governments set a minimum wage that businesses set a minimum wage that businesses

must pay their employees,must pay their employees,

this is an example of government’s role as this is an example of government’s role as a(n) regulator.a(n) regulator.

HispanicsHispanics

Which of the four major U.S. ethnic markets Which of the four major U.S. ethnic markets considers music a major part of its culture, considers music a major part of its culture, allowing marketers to use radio advertising to allowing marketers to use radio advertising to reach this group?reach this group?

Who is the single largest U.S. consumer of Who is the single largest U.S. consumer of goods and services? goods and services?

the governmentthe government