Marketing Exam Flashcards
Characteristics of Money
durability,
portability (moving it around),
divisibility,
uniformity,
limited supply (to protect against inflation),
acceptability (“legal tender”)
3 Functions of Money
Store of value, unit of account, medium of exchange
Unit of Account
common measure of value across the economy
Medium of Exchange
widely accepted as a method of payment
Marketing
the activity or business of promoting and selling products or services, including market research and advertising
The goal of marketing
To meet customers’ needs (goods and services you need) and wants (goods and services you do not need but would like to have) with products that customers can and will buy
dynamic
constantly changing
Customer
an individual or group who buys products
Target Market
The specific group of customers whose needs a company will focus on satisfying
Four Ps of Marketing
Product, Place, Price, and Promotion
Product
Anything that can be bought or sold
Good
A physical item
Service
An action that is done for you
Idea
A concept, cause, issue, image, or philosophy that can be marketed
Place
The process of making products available to customers
Distribution
the process of physically delivering goods to customers
Price
The amount of money requested or exchanged for a product
Marketing Plan
A guide for a company’s product which includes Market Opportunities and Analysis, Strategy, and an Action Plan
SWOT Analysis
An analysis of a company’s strengths, weaknesses, opportunities, and threats
When to use a SWOT analysis
to assess your organization’s position before you decide on any new strategy
Forecast
A prediction of future sales or revenue
Need
Something that is necessary for survivalW
Want
Something a person desires but could function without
Economic Needs and Wants
Needs and wants that you can satisfy by buying something
Economic Goods and Services
The products that you buy to satisfy economic needs and wants
Exchange
To trade something of value for something you want
Money
A consistent item people accept in exchange for goods or work
Value
How much something is worth
Time Value of Money
The greater potential worth in the future than it does today
Store of Wealth
Money’s ability to keep and store wealth for long periods of time.
Business
The general term for all the activities involved in the development and exchange of products
Profit
The money that a business has left after all the expenses and costs of running the business are paid
Sole Proprietorship
A business owned by one person [who] has all the responsibility and gets all the profits from the business
Partnership
A business owned by a small number of people, usually two or three
Legal Entity
An artificial person that exists separately from [other people]
Corporation
A legal entity established for the purpose of doing business [who] can buy property, run a business, manufacture products, earn money, lose money, sue, and be sued
Stockholders
People who own a corporation
Stock
The right of partial ownership in a corporation
Two categories of business organizations
For-profit and not-for-profit
For-profit
A business organization whose goal is to make a profit for the owners
