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