MARKETING DYNAMICS CH. 1-4, 6 STUDY GUIDE

The US economy is referred to as mixed economy.

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

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

An example of Marketing research Is filling out a survey from a business such as a hotel. Possession utility The exchange of a product for some monetary 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.

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

Tariff is a tax on imports. International Trade is the exchange of goods and services between nations.

Disposable income money left after taking out taxes. Shortages occur when demand exceeds supply

Surplus Selling occurs when the supply of goods exceeds demand. provides customers with goods and services 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

Profit Three factors that affect business cycles are the money earned from conducting business after all costs and expenses have been paid. Three factors that affect business cycles are business, consumers and government

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

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

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

Exports are goods and services sold to other countries.

Customer buys the products.

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

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

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

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

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

Geographics information about where people live

Federal Trade Commission investigates deceptive and misleading business practices, like false advertising.

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

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

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

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

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

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

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

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

Producer Price index measures wholesale price levels in the economy.

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

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

Sherman Anti-Trust Act was created to prevent monopolies.

Consumers Persons who uses the product.

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

Place Utility Having a product where customers can buy it.

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

A business can get involved in international trade by importing, exporting and/or setting up shop in a foreign country

As a funder of public libraries, the government is acting in what role? as a provider of services Capital is The money needed to start and operate a business

Entrepreneurship The process of starting and managing your own business. Four roles that our government plays in our free enterprise system include providing general services supporter of businesses regulator and competitor.

Labor All of the people who work in the economy. Prosperity Point in the business cycle when the economy flourishes.

Scarcity The difference between wants and needs and available resources.

Psychographics Three goals of any economy are: Studies of consumers based on social and psychological characteristics. Three goals of any economy are: Stable prices Productivity Low unemployment

Federal Reserve Board has the power to control the U.S. monetary supply. The Occupational Safety and Health Administration is a governmental regulatory agency created to protect employees.

Three major businesses that make our government a competitor in the market place are Tennessee Valley Authority Amtrak U. S. Postal Service

Three types of trade barriers are Tariffs Quotas and embargoes

Two economic factors that can discourage international trade are Labor costs and infrastructure Two political factors that can discourage international trade are political corruption and government instability

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

What is the agency that was created to police the General Agreement on Tariffs and Trade (GATT)? World Trade Organization What is the group that decides whether or not a business will survive? the consumers

What is the term for the struggle between companies for customers? Competition When does the potential for profit increase? as the risk increases

When the Federal and state governments set a minimum wage that businesses must pay their employees, this is an example of government’s role as a(n) regulator.

Hispanics Which of the four major U.S. ethnic markets considers music a major part of its culture, allowing marketers to use radio advertising to reach this group? Who is the single largest U.S. consumer of goods and services? the government