Money a customer must pay for a product or service
Amount added to the cost of a product to set the selling price equal to the expected gross margin
A reduction from the original selling price
Value added through changes in form, time, place or possession
A price decrease will decrease total revenue
A price decrease will increase total revenue
High price designed to emphasize the quality or uniqueness of the product
A very low price designed to increase the quantity sold of a product by emphasizing the value
-Supply and demand
Sales of durable and nondurable goods bought by consumers
Indirect Channel of Distribution:
Includes one or more other businesses between the producer and the consumer
A go-between company in an indirect distribution channel
Direct Channel of Distribution:
When there is no intermediary. products move from the producer straight to the consumer with no other organizations participating.
The final business organization in an indirect channel of distribution for consumer products (Department Stores, Discount Stores, Specialty Stores, Super Markets, Convenience Stores)
Specialty Stores, Warehouse Clubs, Factory Outlets, Superstores, Showroom Retailers.
Channel of Distribution:
Process and means of moving goods from the producer to the consumer.
All businesses that operate in the non-governmental sector of a free-market system.
Current or modern.
Business involved in selling the goods and services of producers to consumers and other businesses
Carries out activities that are consumed by its customers.
-does not offer products for sale
-fastest growing part of the economy
-more than 60 percent of all U.S. employment
Direct communication with a potential customer to determine and satisfy wants & needs.
Marketing Information Management
Using market information to improve business decision-making and performance.
EX: The money you forgo making by attending college instead of getting a full-time job right away.
EX: A local restaurant.
EX: The education and greater future employment opportunity you receive by attending college rather than working full-time out of high school.
THIS DOES... determines what goods and services will be available for sale.
The process of choosing which wants, among several options, will be satisfied.
In a typical free-market, THESE set the demand.
Determining the best ways for customers to locate, obtain, and use products and services of an organization.
The point where supply & demand meet.
Q. Ivory Coast exports a large supply of cocoa beans because...
A. They have surplus production.
Q. 19th Century New York City could best be described as...
A. A cultural epicenter that led in the creation of new markets and was a center for growth.
Q. Bruce Bartlett, free-trader & Washington Times columnist, argues that the US can afford high trade deficits because...
A. 1, the value of the dollar is an automatic adjustment mechanism, and 2, because countries like China use the money they receive from our purchase of consumer goods to reinvest in the US economy.
Q. A nation like America imports goods and services because...
A. Consumers want goods that are not available domestically.
Q. According to Brink Lindsey, a libertarian economist from the Cato Institute in Washington, D.C., "trade deficits don't matter, except politically" because...
A. Only trade balance matters."
Selling a bulk of manufactured products at below costs of production overseas in order to drive out competition.
Q. According to Yvonne Smith of the Port of Long Beach in California, a major contributing factor to the massive trade deficit with China is that...
A. We export raw materials and import finished products.
Q. ----- financially benefited most from expanded and regulated trade with China.
A. Big businesses companies like Boeing, Caterpillar, and Cargill.
Q. According to economist Larry Mishel, a large trade deficit could lead to...
A. Loss of foreign investor confidence in the US economy, which could in turn depress the exchange rate and lead to a major recession.
The study of how to meet unlimited wants and needs with limited resources.
Not enough resources to cover all your wants and needs.
Q. Who has to deal with scarcity?
Natural Economic Resources:
Gifts of nature- sunlight, water, land, trees, etc. used to produce goods and services
Human Economic Resources:
Physical and mental labor people use to produce goods and services
Capital Economic Resources:
Buildings, machines, technology and tools used to produce goods and services
Allow you to purchase other resources (MONEY)
What you must give up
What you will receive
Has a free-pricing system where prices of goods and services are dictated by supply and demand.
Generally includes a degree of private economic freedom intermingled with centralized governance of regulation and economic planning.
Based on community or regional customs and traditions and relies heavily on agricultural production and trade.
An economic theory that suggests government intervention into private sector decisions is sometimes needed to provide more stable and efficient outcomes.
Q. Deregulations, tax-cutes, and reduced spending were major rhetorical tenets of...
Typically centrally controlled and directed by the state.
•Meet the needs of stakeholders
•Buy inputs - raw materials, labor, machinery/equipment, land
•Produce outputs - goods and services
•Focus on efficient use of resources
Anyone who has an interest in the success of the business.
•Customers, Managers, Employees, Owners, Suppliers, Gov, Creditors
6-Step Market Analysis Process:
1.Define the Problem
2.Analyze the Situation
3.Obtain Data Specific to the Problem
4.Analyze and Interpret Data
6.Design a Plan (Conclusion)
Marketing Strategy Objectives:
•Determine if there is a market
•Establish the need for a Marketing Plan
•Collect Market Info
Marketing Mix- 7 P's:
•Product, Price, Place, Promotion (...People, Process, Physical Evidence)
Measures financial performance over a given accounting period (usually a quarter).
Summarizes company Assets, Liabilities, and Shareholder's Equity
*Shows that your Assets = Liabilities + Shareholder's Equity
Cash Flow Statement:
Records the amount of Cash and Cash Equivalents entering and leaving the company
When a specific entity has control and majority over the market for a product or service. Is able to undercut price, and create barriers to entry for smaller businesses.
Perfect Competition Criteria:
1.All firms sell an identical product
2.All firms are price takers
3.All firms have relatively small market share
4.Buyers know all products and the prices of each firm
5.Industry is characterized by freedom of entry and exit
Economy-wide fluctuations in production or economic activity
A small, specific group of consumers
Q. A Sole Proprietorship...
A. Spreads risk more than a Partnership.
Q. If your business is structured to become very large, the correct form of business to create is a...
LLC (Limited Liability Company):
A sort of middle ground between a Sole Proprietorship and a Corporation. It shields your personal assets from being held liable in the event of a lawsuit. Involves more paperwork than a Sole Proprietorship.
Q. When a bank has been nationalized...
A. The government has injected a large portion of funds into the system, and now has say in how the bank operates.
Revenue - Cost =
Q. Bank of America Corporate Headquarters is located in...
A. Charlotte, NC
A group of similar tasks or duties performed for pay.
Reasons People Work / Work Values:
Q. Employers ask for Work History to determine...
Level of experience
Pre-requisite skill set
Duration of employment
Q. Employers generally ask for your social security to...
A. Verify citizenship and run BG checks
The work an individual does throughout his/her lifetime
An activity directed toward a purpose or goal that produces something of value to oneself and/or society.
Process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task.
--- of communication in Non-Verbal
Q. To appropriate someone's property means to...
A. take exclusive possession of it
The conduct, aims, or qualities that characterize or mark a profession or a professional person
A group of related occupations with general characteristics in common but require different skill sets.
Understanding where another person is coming from by trying to put yourself in their position.