Marketing Principles Vocabulary E - F

Economic Activities

an extra tax, usually on imported goods.

Economic Conditions

the state of the economy at any given time.

Economic Flow

the movement of resources from resource owners to producers and from producers to consumers.

Economic Goods

physical objects that are useful, scarce and transferable which satisfy economic wants.

Economic Incentive

a monetary motivation for complying with government regulation, e.g., a tax reduction given to a business for installing fuel-efficient equipment.

Economic Market

arrangement for the buying and selling of goods and services; includes buyers and sellers.

Economic Resources

the human and natural resources and capital goods used to produce goods and services.

Economic Risks

chances of loss due to changes in the market that force a lowering of price, change of products or even failure or businesses.

Economic Services

productive acts that satisfy economic wants.

Economic System

the organized way in which a country handles its economic decision and solves its economics problems; the plan followed by a society in making economic decisions.

Economic Vote

term used to describe consumer approval of products expressed by the purchase of products.

Economic Wants

Desires for items which can be valued in monetary terms.

Economics

the study of how people satisfy unlimited, competing, economic wants with limited resources.

Economizing

the process of deciding which goods and services will be purchased or provided so that the most satisfaction can be obtained; deciding how scarce resources will be used.

Economy

the system in which people make and spend their incomes.

Efficiency

the ability to use minimum amounts of resources to the best advantage; accomplishing a task with a minimum expenditure of time and effort.

Elastic Demand

a form of demand for products on which changes in price correspond to change on demand.

Elasticity

an indication of how changes in price will affect changes in the amounts demanded and supplied.

Electronic Surveilance Devices

equipment used to prevent theft or to assist in the identification of thieves; closed circuit television and encoded tags.

Emergency

a situation requiring immediate action.

Emotional Motives

buying motives which involves an appeal to the customer's emotions or feelings.

Empathize

to put yourself in another person's place.

Employee Assistance Programs

projects organized and sponsored by a company in order to provide some form of help to its employees.

Employee Discount

a reduction from the selling price given as a benefit to employees

Endless Chain

a method of prospecting in which salespeople ask every prospect to whom they make presentations to give the names of others who might interested in their products.

Entrepreneur

an individual who assumes the risk of starting and operating a business.

Equilibrium Price

The point at which the quantity of a good that buyers want to buy and the quantity that sellers are willing to sell at a certain price are exactly equal.

Equipment

Industrial goods used in the operation of a business but not used in the actual production of a good or service.

Establishing Relationships

the phase of the selling process which involves prospecting for potential customers and making initial contact with them in order to create the right selling environment.

Ethical Standards

unwritten rules of good conduct

Excess Demand

the situation that exists when demand is greater than supply. Prices increase.

Excess Supply

the situation that exists when supply is greater than demand. Price decreases.

Exchange Price

the amount of money that the buyer is willing to pay and the seller is willing to accept for a goods or service.

Excise Tax

a special government tax on such items as gasoline

Exclusive Agreement

An illegal agreement forbidding customers from buying goods and services from competitors. (ex: NBA stars that advertise with NIKE can't wear any other shoe)

Exclusive Distribution

distribution confined to one dealer in an area (ex: McDonald's)

Excuse

an insincere and invalid statement used to "cover up" a real reason for not buying

Existing Products

products which are currently being sold

Expansion

growth

Express Warranty

a warranty that is written or expressed verbally

Fact Finder Personality

a basic type of customer personality characterized by the customer's challenging a salesperson to know the merchandise, doing comparison shopping, liking to see variety and/or wanting factual information.

Fair Credit Reporting Act

a federal law which gives consumers the right to inspect the files of their credit histories at any credit agency and to have mistakes corrected.

Fair Packaging and Labeling Act

a federal law that makes it illegal to use unfair or deceptive packaging or labeling for certain consumer products.

Feature

physical characteristic or quality which may be used to describe a good or service.

Form Utility

usefulness created by altering or changing the form or shape of a good to make it more useful to the consumer.

Four P's of Marketing

product, place, promotion, and price.

Franchise

a contractual agreement between a parent company and a franchisee to distribute goods and services.

Free Enterprise Economy

an economic system characterized by competition, individual freedom of choice, private ownership, the profit motive and limited government control.

Full Warranty

a warranty which covers the entire product.