| A | B |
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| Marketing | The process of planning, pricing, promoting, selling, & distributing ideas, goods & services to create exchanges that satisfy customers |
| Goods | Tangible items that have monetary value & satisfy your needs, wants Ex: cars |
| Services | Intangible items that have monetary value & satisfy your needs & wants Ex: car wash |
| Utility | Added value; an attribute of goods & services that makes them capable of satisfying consumers’ wants & needs |
| Form Utility | Involves changing raw materials into usable goods or putting parts together to make them more useful |
| Place Utility | Involves having a product where customers can buy it |
| Time Utility | Having a product or service available at a certain time of year or convenient time of day |
| Possession Utility | Exchange of a product for money |
| Information Utility | Information or communication about a product |
| Market | All people who share similar needs & wants & who share the ability to purchase a given market |
| Consumer vs Customer | Consumer USES the product. Customer PURCHASES the product. |
| Market Share | A company’s percentage of the total sales volume generated by all companies that compete in a given market |
| Channels of Distribution | The path a product takes from its producers or manufacturer to the final customer |
| Intermediaries | Businesses involved in the moving of products from the manufacturer to the final user; Aka: Middlemen |
| Rack Jobbers | Manage inventory and merchandising for retailers by counting stock, filling the shelves when needed & maintaining store displays |
| Drop Shippers | Own the goods they sell, nut they do not physically handle the actual products; They sell the goods to other businesses & have the producer ship the product directly to buyers |
| Brick-and-Mortor Retailers | Traditional retailers; sell goods to other businesses & have the producer ship the merchandise directly to buyers |
| E-tailing | Involves retailers selling products over the internet to the customer |
| Exclusive Distribution | Involves distribution of a product in protected territories in a given geographic area |
| Selective Distribution | Means that a limited number of outlets in a given geographic area sell a manufacturer’s product |
| Intensive Distribution | Involves the use of all suitable outlets to sell a product |
| Agents | Act as intermediaries by bringing buyers and sellers together |
| Direct Distribution | Occurs when the producer sells goods and services directly to the customer with no intermediaries |
| Indirect Distribution | Involves one or more intermediaries |
| SWOT Analysis | An assessment that lists and analyzes the company’s strengths & weaknesses and its opportunities & threats that surround it |
| Sales Forecasts | The projection of future sales |
| Marketing Plan | A formal, written document that directs a company’s activities for a specific period of time |
| Performance Standard | An expectation for performance that reflects a plan’s objectives |
| Target Market | A group of people most likely to become customers, identified for a specific marketing program |
| Market Segmentation | The process of classifying (dividing) people who form a given market into even small groups |
| Demographics | Statistics that describe a population in terms of personal characteristics, such as age, gender, income, & martial status |
| Geographics | Segmenting a market based on where people live |
| Pyschographics | Grouping people with similar attitudes, interests and opinions such as lifestyles & shared values |
| Disposable Income | The money left after taking out taxes |
| Discretionary Income | The money left after paying for basic living necessities (food, shelter & clothing) |
| Mass Marketing | Using a single marketing strategy to reach all customers |
| Economy | The organized way a nation provides for the needs and wants of its people |
| Resources | All the things used in producing goods & services |
| Factors of Production | Comprised of 4 resources: land, labor, capital and entrepreneurship |
| Infrastructure | Physical development of a country |
| Entrepreneurship | Skills of people who are willing to invest their time and money to run a business |
| Scarcity | The difference between needs and wants and available resources |
| Traditional Economy | Economic system where Habits, traditions and rituals answer basic questions of what, how & from whom |
| Market Economy | No government involvement in economic decisions |
| Command Economy | Country’s government makes all economic decisions |
| Capitalism | Political & economic philosophy characterized by marketplace competition and private ownership of business **same as free enterprise system** |
| Socialism | System with democratic political institutions & increased government involvement in the economy **main goal to meet basic needs of all** |
| Communism | Social, political & economic philosophy in which government, usually authoritarian, controls the factors of production **no private ownership of property or capital** |
| Imports | Goods & services purchases from other countries |
| Exports | Goods and services sold to other countries |
| Balance of Trade | The difference in value between exports and imports |
| Free Trade | Commercial exchange between nations that is conducted on free market principles, without regulations |
| Tariff | Tax on imports **also called: duty** |
| Quota | Limits either the quantity or monetary value of a product that may be imported |
| Embargo | A total ban on specific goods coming into and leaving a country |
| International Trade | The exchange of goods and services among nations |
| Trade deficit | The exchange of goods and services among nations |
| Protectionism | A government’s establishment of economic policies that systematically restrict imports in order to protect domestic industries |
| World Trade Organization | Global coalition of nations that make the rules governing international trade |
| North American Free Trade Agreement | International trade agreement among US. Canada & Mexico. |
| Patent | A document granting an inventor sole rights to an item or idea for up to 20 yrs **make, use and sell** |
| Trademark | A word, name, symbol, sound or color that identifies a good or service; **can be renewed forever** |
| Copyright | Involves anything that is authored by an individual, such as writings (books, magazines articles, etc) music & artwork **life of author plus 70 yrs** |
| Competition | Forces businesses to product better quality products/services at reasonable prices |
| Price Competition | Focuses on the sale price of a product |
| Nonprice Competition | Businesses choose to compete on the basis of factors that are not related to price **quality, service, reputation, etc.** |
| Business Risk | The potential for loss or failure |
| Monopoly | Exclusive control over a product or the means of producing it |
| Private Enterprise | Business ownership by ordinary people, not the government |
| Profit | The money earned from conducting business after all costs and expenses have been paid |
| Supply | The amount of goods producers are willing to make and sell |
| Demand | Consumer willingness and ability to buy products |
| Domestic Business | A business that sells its products only in its own country |
| Global Business | A business that sells its product in more than one country |
| For-profit Business | Business that seeks to make a profit from its operations |
| Non-profit Business | A business that functions like a business but uses the money it makes to fund the cause identified in its charter |
| Private Sector | Businesses not associated with government agencies |
| Public Sector | Government-financed agencies, such as the Environmental Protection Agency |
| Wholesalers | A business that obtains goods from manufacturers and resells them to organizational users, other wholesalers, and retailers |
| Retailers | A business that buys goods from wholesalers or directly from manufacturers and resells them to consumers |
| Production | The process of creating, growing, manufacturing or improving on goods and servicesv |
| Management | The process of achieving company goals by effective use of resources through planning, organizing and controlling |
| Finance | The function of business that involved money management |
| Accounting | The discipline that keeps track of a company’s financial situation |
| Food and Drug Administration | Regulates labeling and the safety of food, drugs & cosmetics throughout US |
| Consumer Product Safety Commission | Responsible for overseeing the safety of products such as toys, electronics and household furniture |
| Equal Employment Opportunity Commission | Responsible for the fair & equitable treatment of employees with regard to hiring, firing, & promotions |
| Occupational Safety and Health Administration | Sets guidelines for workplace safety and environmental concerns |
| Securities and Exchange Commission | Regulates the sale of securities (stocks & bonds) |
| Environmental Protection Agency | To protect human health & our environment; includes monitoring & reducing air/water pollution |
| Federal Trade Commission | Responsible for enforcing the principles of private enterprise and protecting consumers from unfair or deceptive business practices |
| Ethics | Guidelines for good behavior; knowing the difference between right and wrong |
| Better Business Bureau | Non-profit organization that sets up self-regulation among businesses |
| Whistle Blowing | Reporting an illegal action of one’s employer |
| Price Gouging | Pricing products unreasonably high when the need is great or when consumers do not have other choices |
| Ad Council | Nonprofit organization that helps produce public service advertising campaigns for government agencies & other qualifying groups |
| Communication | The process of exchanging messages between a sender & a receiver |
| Channels | Or Media; The avenues through which messages are delivered |
| Feedback | A receiver’s response to a message |
| Barriers | Obstacles that interfere with the understanding of a message |
| Setting | Where communication takes place; includes place, time, sights & sounds |
| Distractions | Things that compete with the message for the listener’s attention; includes noises, conversations & competing thoughts |
| Emotional Barriers | Biases against the sender’s opinions that prevent a listener from understanding |
| Jargon | Specialized vocabulary used by members of a particular group |
| Persuade | To convince that person to change an opinion in order to get him or her do what you want |
| Enumeration | Listing items in order; often used when giving directions or explaining a process |
| Generalization | Listing items in order; often used when giving directions or explaining a process |
| Negotiation | The process of working with parties in conflict to find a resolution; requires willingness to work together |
| Management | The business function of planning, organizing and controlling all available resources |
| Vertical Organization | A hierarchical, up-and-down organizational structure in which the tasks and responsibilities of each level are clearly defined |
| Top Management | Those who make decisions that affect the whole company *CEO, President, CFO, VP, etc.* |
| Middle Management | Employees who implement the decisions of top management; Plans how the department under them can work to reach top management’s goals |
| Supervisory-Level Mangement | Managers supervise the employees who actually carry out the tasks determined by middle & top management |
| Horizontal Organization | Top management shares decision making with self-managing teams of workers who set their own goals and make their own decisions |
| Empowerment | Encourages team members to contribute to and take responsibility for the management process; reinforces team spirit |
| Planning | Involves setting goals and determining how to reach them |
| Organizing | Includes establishing a time frame in which to achieve a goal, assigning employees to the project & determining a method for approaching the work |
| Controlling | The process of setting standards & evaluating performance |
| Mission Statement | A description of the ultimate goals of the company |
| Exit Interview | A meeting that occurs when an employee leaves a company in order to gain employee/ manager feedback |
| Common Carriers | Trucking companies that provide transportation services to any business in their operating area for a fee |
| Contract Carriers | For-hire trucking companies that provide equipment & drivers for specific routes, according to agreements between carrier & the shipper |
| Private Carriers | Trucking companies that transport goods for individuals business |
| Exempt Carriers | Trucking companies that are free (exempt) from direct regulation of rates & operating procedures |
| Freight Forwarders | Private companies that combine shipments from several businesses & deliver them to their destinations |
| Ton-mile | The movement of one ton (2,000 pounds) of freight one mile |
| Carload | The minimum number of pounds of freight needed to fill a boxcar/car |
| Storage | Part of a marketing function & refers to the holding of goods until they are sold |
| Private Warehouse | A storage facility designed to meet the specific needs of its owner |
| Public Warehouse | A storage & handling facility offered to any individual or company that will pay for its use |
| Distribution Center | A warehouse designed to speed delivery of goods and to minimize storage costs |
| Bonded Warehouse | Public or private warehouses that store products that require payment of a federal tax (imports/exports) |
| Return on Investment | A calculation that is used to determine that relative probability of a product |
| Break-even point | The point at which sales revenue equals the costs and expenses of making and distributing a product |
| Demand Elasticity | The degree to which demand for a product is affected by its price |
| Law of Diminishing Marginal Utility | Law that states consumer will buy only so much of a given product, even if the price is low |
| Price Fixing | Occurs when competitors agree on certain price ranges within which they set their own prices |
| Price Discrimination | Occurs when a firm charges different prices to similar customers in similar situations |
| Unit pricing | Allows consumers to compare prices in relation to a standard unit of measure, such as an ounce or pound |
| Loss leader | An item priced at or below cost to draw customers into a store |
| Mark up | The difference between an item’s cost and sale price; usually expressed as a percentage |
| One-price policy | All customers are charged the same prices |
| Flexible-price policy | Customers pay different prices for the same type or amount of merchandise |
| Market position | Relative standing a competitor has in a given market in comparison to its other competitors |
| Skimming Pricing | Pricing policy that sets a very high price for a new product |
| Penetration Pricing | The opposite of skimming pricing--- price for a new product is set very low (encourages people to buy) |
| Price lining | Pricing technique that sets a limited number of prices for specific groups or lines or merchandise |
| Bundle Pricing | When a company offers several complementary, or corresponding products in a package that is sold for a single price |
| Psychological Pricing | Pricing techniques that help create an illusion for customers (there are 4 types) |
| Odd Even Pricing | Involves setting price figures that end in either odd or even numbers Odd convey bargain Even convey quality |
| Prestige Pricing | Sets higher-than-average prices to suggest status and high quality to the consumer |
| Everyday Low Prices | Low prices set on a consistent basis with no intention of raising them |
| Promotional Pricing | Used in conjunction with sales promotions wherein prices are reduced for a short period of time |
| Trade discounts | Not really discounts at all; the way manufacturers quote prices to wholesalers & retailers |
| Rebates | Partial refunds provided by the manufacturer to consumers |
| Coupons | Allow customers to take reductions at the time of purchase |
