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

2. The US economy is referred to as
mixed economy.

3. 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.

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

5. 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.

6. Promotion utility
Any form of communication a business or organization uses to inform, persuade, or remind.
Service
Tasks performed for a customer.

7. Gross Domestic Product
a measure of the goods and services produced using labor and property
Imports
are goods and services purchased from other countries.

8. Benefits
are privileges, or monetary payments beyond salary or wages, that go with a job.
focuses on the sale price of a product

9. 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

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

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

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

13. 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

14. 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

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

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

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

18. Exports
are goods and services sold to other countries.

19. Customer
buys the products.

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

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

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

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

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

25. Geographics
information about where people live

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

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

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

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

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

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

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

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

34. 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.

35. Producer Price index
measures wholesale price levels in the economy.

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

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

38. Sherman Anti-Trust Act
was created to prevent monopolies.

39. Consumers
Persons who uses the product.

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

41. Place Utility
Having a product where customers can buy it.

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

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

44. 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

45. 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.

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

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

48. 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

49. 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.

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

51. Three types of trade barriers are
Tariffs
Quotas
and embargoes

52. 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

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

54. 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

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

56. 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.

57. 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