Marketing Chapter 5
when Joe took a job with the local government, it was his first experience working in the ______________
public sector
supply
the amount of goods producers are willing to make and sell
accounting
the discipline that keeps track of a company's financial situation
finance
the function of business that involves money management
profit
the money earned from conducting business after all costs and expenses have been paid
business risk
the potential for financial gain, loss, or failure
management
the process of achieving company goals by effective use of resources through planning, organizing, and controlling
production
the process of creating, growing, manufacturing, or improving on goods and services
non-price competition
when businesses choose to compete on the basis of factors that are not related to price, including the quality of the products, service, financing, business location, and reputation
price competition
- a focus on the sale price of a product - the assumption is that, all other things being equal, consumers will buy the products that are lowest in price
demand
- consumer willingness and ability to buy products - the law of demand is the economic principle that price and demand move in opposite directions
public sector
- government-financed agencies - ie: the Environmental Protection Agency
what are some of the factors businesses use in non-price competition?
- quality of their product - location - the friendliness of their employees
5 "rights" of merchandising
- right goods - right time - right place - right price - right amount
competition
a business relation in which parties compete to gain customers
retailer
a business that buys goods from wholesalers or directly from manufacturers and resells them to consumers
wholesaler
a business that obtains goods from manufacturers and resells them to organizational users, other wholesalers, and retailers, also called distributors
for-profit business
a business that seeks to make a profit from its operations
global business
a business that sells its products in more than one country
domestic business
a business that sells its products only in its own country
patent
a document granting an inventor sole rights to an item or an idea
industry
a group of establishments primarily engaged in producing or handling the same product or group of products or in rendering the same services
non-profit organization
a group that functions like a business but uses the money it makes to fund the cause identified in its charter
trademark
a word, name, symbol, sound, brand name, brand mark, trade name, trade character, color, or a combination of these elements that identifies a good or service and cannot be used by anyone but the owner because it is registered with the federal government and has legal protection
copyright
anything that is authored by an individual, such as writings (books, magazine articles, etc.), music, and artwork
private enterprise
business ownership by ordinary people, not the government
it would be a big _____________ to spend more money on a new advertising campaign than the campaign would generate
business risk
private sector
businesses not associated with government agencies
she worries about ____________ because a clothing store opened up near hers
competition
why is competition an essential part of a free enterprise system?
competition forces businesses to produce better-quality goods and services at prices that consumers can pay
they realized ____________ was down for their product when they ran out of room in the warehouse
demand
derived demand
demand in the organizational market that is based on, or derived from, the demand for consumer goods and services
the board members decided they did not want to sell things to overseas; they were happy being a _______________
domestic business
a state of ____________ exists when the number of products supplied equals the amount of product demanded
equilibrium
monopoly
exclusive control over a product or the means of producing it
the company was about to become a _____________ when it began exporting products to Costa Rica
global business
what are some ways to protect intellectual property?
patents, trademarks, & copyrights
he made a nice _________ when he sold his car for $1200 more than what he paid for it
profit
