Marketing Final Exam Review

Marketing

The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives

Utility

added value

Added Value

the functions of marketing add value to a product. They make it more useful. UTILITY

Exchange

When a product is exchanged for money or product

Target market

a specific group of consumers that have similar wants and needs

Marketing concept

states that businesses must satisfy customers' needs and wants in order to make a profit

Mass Marketing

using a single marketing plan to reach all customers

Time utility

adding value to products by making them available WHEN they're needed

Information utility

the value added by INFORMING with the consumer. ex. displays, labels, manuals etc

Form utility

changing raw materials or putting parts TOGETHER to make them more useful.

Place utility

adding value to products by having them WHERE people want them

Possession utility

Credit cards and installment plans make products more ATTAINABLE for some customers.

Factors of Production

land, labor, capital, entrepreneurship

Land

everything on earth in its natural state

Labor

all people working in an economy

Capital

money to start a business and goods and raw materials to run a business.

Resources

anything that is used to produce goods or services

Geographic's

Segmentation of a market based on WHERE people live.

Demographics

statistics that describe a population in terms of personal characteristics like age, gender, income, education, and occupation.

Psychographics

study of consumers based on lifestyle, attitudes, and PERSONALITY and values that shape it.

Product benefits

the positive experiences or associations people derive from using a product or service

Market share

A company's product sales as a percentage of total sales for that industry

Marketing mix

includes four basic marketing strategies called the four Ps. Used in order to influence potential customers.

Customer profile

lists information about the target market

Disposable income

the money left after taking out taxes. The money spent on necessities.

Discretionary income

the money left after paying for all basic living expenses.

Implementation

Make the plan, Work the plan. 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 the entire market plan.

Specialization

Workers concentrate on producing those goods and services for which they have a competitive advantage.

Customer

someone who pays for goods or services

Consumer

a person who uses goods or services

Goods

tangible products that we use to satisfy our wants and needs

Products

things made to be sold

Services

intangible items that have monetary value and satisfy needs and wants

Product decision

what the customer needs or wants

Price decision

decision on pricing strategies

Place decision

decision on HOW the product reaches the customers

Promotion decision

decision how the company positions itself in the marketplace. The company's image.

product/service management

obtaining, developing, maintaining, & improving a product or product mix

free enterprise system

An economic system in which individuals depend on supply and demand and the profit margin to determine what to produce, how to produce, how much to produce, and for whom to produce.

Price competition

intense competition in which competitors cut the amount customers have to pay to gain business.

Non-rice competition

competition based on factors that are not related to price.

Standard of living

statistic based on the amount of goods and services people can buy with the money they have.

Trade surplus

occurs when a nation exports more than it imports

Surplus

Supply exceeds demand

Supply

The amount of goods producers are willing to make and sell.

Demand

Consumer willingness and ability to buy products.

Recovery

a period of renewed growth followed by a recession or a depression.

Inflation

rising prices

derived demand

The demand for industrial goods based on the demand for consumer goods and services.

Risk

the chance that a business will fail

monopoly

Exclusive control of a commodity or service in a particular market

Shortages

Demand exceeds supply

Productivity

output per worker hour. Per week, month year. Out/Workers x hours x weeks

Infrastructure

The physical development of a country.

Prosperity

period of economic growth. EXPANSION

Recession

an economic downturn

Depression

prolonged recession

recovery

renewed growth

Scarcity

exists when wants and needs exceed resources

Wholesalers

Channel of distribution that obtains goods from manufacturers and resells them to industrial users and retailers.

GNP

total dollar value of all goods and services produced in a nation

Capitalism

nations that practice democracy and believe that political power is in hands of the people. Same as free market.

Market economy

no government involvement. The market decides what, how and who.

Mixed economy

some government involvement in economic decisions. Regulation to protect business and consumers.

Command economy

a system in which the central government makes all economic decisions

Customization

involves creating specially designed products or promotions for certain countries or regions.

Protectionism

a government's policies that restrict imports in order to protect domestic industries

WTO

a coalition of nations that makes rules governing international trade

GATT

a multilateral agreement that sought to promote freer trade among countries; predecessor to the WTO

NAFTA

North American Free Trade Agreement; allows open trade with US, Mexico, and Canada

Federal Reserve Board

Executive agency that is largely responsible for the formulation and implementation of monetary policy.

contract manufacturing

the process of hiring a foreign manufacturer to make products according to certain specifications.

Foreign Direct Investment

the establishment of a business in a foreign country

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 exports and imports of a nation

Tariff

a tax on imports

imports

goods and services purchased from other countries.

Exports

goods and services sold to other countries

Trade embargo

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

Quota

limits either the quantity or the monetary value of a product that may be imported

deficit

happens when they import more than they export

Protective tariff

used to increase the price of imported goods so that domestic products can compete with them

ethics

guidelines for good behavior

trademark

a word, name, symbol, sound or color that identifies a good or service and that cannot be used by anyone but the owner

Production

The process of creating, expanding, manufacturing, or improving on goods and services.

selling

providing customers with the goods & services they want

generation Y

people born between 1980 and 2001; also referred to as "Echo Boomers" (many are the offspring of Baby Boomers)., spoild, lazy, and aware of the world