Introduction to Business Final Terms
Broadcast media includes TV, radio, and billboards. T or F
False
If you pay a bike shop to repair your bike, you are buying goods. T or F
False
Money is a resource. T or F
False
Newspaper ads are the most expensive of all advertising media because an ad is guaranteed to be seen by consumers for weeks. T or F
False
Private wants are widely shared by many people. T or F
False
Profit is the amount of money taken in by a business before paying for the cost of producing its goods and services. T or F
False.
The first step in the decision making process is listing the alternatives. T or F
False.
There are enough resources in the world to satisfy everyone's wants. T or F
False.
Target Marketing
Finding and analyzing a specific group of consumers.
Grocery Store
Good, need, private.
Book store
Good, want, private.
Discount clothing store
Good, want, private.
The total of value of goods are services produced in a country in a given year is called its____.
Gross Domestic Product.
Bus driver
Human Resource
Corporate Manager
Human Resource
Teacher
Human Resource
Skilled, unskilled, physical, or intellectual are used in this chapter to describe____.
Human Resources.
Construction Worker
Human resource
Farmer
Human resource
Indirect Distribution
Involves one or more intermediates when distributing goods or services.
An example of a capitalist country is____.
Japan.
Corporation Ownership and Operations
Many stockholders, high start up costs, products and incomes taxed, limited liability, board of directors responsible, more money for investment, size, easy to attract talented people, and easy to raise money.
The economy of the United States_______.
Mixed Economy
Pop ups, banners, and screen ads are all types of cyber ads. T or F
True
Product marketing deals with how and where to sell a product. T or F
True
The cost of a TV as is twofold: the expense of actually producing the ad, and the expense of airing the ad during a TV show. T or F
True
Workers have more input about business is done today than they did 50 years ago. T or F
True
Companies engage in competition to win customers. T or F
True.
Print Media
Use writing and pictures to communicate. It includes newspapers, magazines, signs, and billboards.
Transit Advertising
Uses buses, subways, trains, airports, and taxis
Private Wants
Wants shared by a group of people (i.e. a new car, computing system, pool)
Public Wants
Wants widely shared by many people (i.e. highways, education, and drinking water) Satisfied by the government.
Internet Advertising
Webcasting, cyberads, banners, pop-ups, can be very targeted, can use sound effects and motion.
Advertising Rates
What determines the cost of an ad is the size of an ad, the # of ads it reaches, how often it appears, when it appears, where it is placed.
The nations debt is the total amount of money the government _____.
owes.
The four stages of the business cycle are____.
peak, recession, depression, recovery.
A channel of distribution directs_____.
products to consumers
Advertising
the paid, nonpersonal form of communication that businesses use to promote their products
The biggest impact distribution has on marketing is how it affects____.
the pricing of a product.
When a recession spreads from one industry to the other it's called___.
the ripple effect.
Automated teller machine
Capital resource
Printing press
Capital resource
Office Building
Capital resources
Marketing Mix
Consists of four main elements of marketing.
Market Research
Consists of gathering and studying data about buying habits of consumers.
_____ is not a stage of product development
Distribution
Henry Ford
Entrepreneurial Resource
Magazine publisher
Entrepreneurial Resource
Magazine Advertising
(broad circulation, regional/national reach, long lifespan, complex preparation, quality printing and paper. expensive)
Newspaper Advertising
(narrow circulation, local/regional reach, short lifespan, easy preparation, basic printing and paper, inexpensive)
Small business owner
Entrepreneurial resource
The _____ was a record period of prosperity in the US.
1990s
Partnership Ownership and Operations
2 or more ownership, low start up costs, taxed on just personal income, unlimited liability, partnership agreement for responsibility, more financial resources, shared management, risk of loss, share liability and cost, more money, and share profits.
Market
A group of consumers who share common wants and needs, and who have the ability to purchase a product.
Consumer
A person
An example of a capital resource would be_____.
An ice cream truck.
Business
Any activity that seeks profit by providing goods or services to others
Resource
Anything that people can use to make or obtain what they need or want (i.e. fuel, timber, and water)
Broadcasting Rates
Audience size, national network more expensive than local, time of day, special events, 10 or 30 or 60 agencies, and agencies.
Outdoor Advertising
Billboards, good for local ads/travel related businesses, easy to ignore
Relationship Marketing
Building customer loyalty through good customer relations.
Marketing Concept
Businesses' need to know their consumers' wants and needs.
Wholesaler
Buys large quantities of goods from manufacturers and resells them to other businesses.
Oil Rig
Capital Resource
Tractor
Capital Resource
Fertile Land
Natural Resource
Fish
Natural Resource
Water
Natural Resource
Tree
Natural resources
Needs
Necessary wants
Newspaper Rates
Newspaper and magazine rates are based on circulation, or the # of people who read them, sold by column column inch, premium position.
Sole Proprietorship Ownership and Operations
One large or small ownership, low start up costs, taxed just on personal income, unlimited liability, full responsibility to owner, hard to raise money, risk of loss, few legal controls, and flexible management.
Directory Advertising
Phone books, inexpensive, in every home, kept for 1 year, many ads, difficult to update,
_____ is not one of the functions of marketing
Production.
Goods
Satisfy wants and needs for material things that can be seen or touched
Retailer
Sells goods to the final consumer for personal use.
Direct-mail Advertising
Sent directly to a persons home or place of business, 3rd largest form after newspapers and TV, very targeted, many formats/may include special offers, expensive, "junk mail"
Electric Company
Service, need, private.
Barber Shop
Service, want, private.
Four star restaurant
Service, want, private.
Local Bus Company
Service, want, private.
Movie Theater
Service, want, private.
Post office
Service, want, public.
State College
Service, want, public.
Internet Rates
Size and format, length and time, number of "clicks"
Television Advertising
Sound, images, motion, national or local, infomercials, and expensive.
Decision Making Process
Step 1. Identify the Problem (Describe the conflict in order to find a solution) Step 2. List the Alternatives (List your options or choices could can make) Step 3. State your Criteria (What needs you desire in the end) Step 4. Evaluate Your Alternatives (See if they are the right path to head on for alternative) Step 5. Make a Decision (Finalize your choice) Step 6. Evaluate your Decision (Planning the outcome of your decision)
Services
Tasks that people or machines perform and also satisfy some of your wants for things that you cannot see or touch
Break-Even Point
The amount of money a company must make on a product to pay for the cost of producing it.
Profit
The amount of money left over after a business has paid for the cost of producing its goods and services
Competition
The contest between businesses to win customers.
Channel of Distribution
The means by which a product is distributed.
Marketing
The process of creating, promoting, and presenting a product to meet the wants and needs of consumers.
Demographics
The study of population in terms of age, gender, income, and education.
Wants
The things you wish you could have
Direct Distribution
When goods or services are sold directly to consumers.
Natural resources become factors of production_______.
When they are used to produce goods.
Radio Advertising
Wide audience with similar taste, music, dialogue, and sound effects, good medium for local advertising, reach people on the move.
This is not a question marketers considers to determine the price of a product_____
is the price fair?
Mass Media
means of communication such as TV, radio, and newspapers