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