EOPA - Marketing

• Marketing


  A process of developing, promoting, pricing, and distributing goods and services to customers in order to satisfy customer needs and wants
• Marketing Concept

  The idea that a business should satisfy the wants and needs of consumers while generating a profit
• Financing


  Decisions about how to find money to invest in the business and helping customers find ways to purchase the product
• Product/ Service Management


  The process of planning, improving, and/ or adding to a firm's product line
• Market Research

  Collecting and analyzing information in order to make decisions about a product or service
• Selling


  Personally communicating with the customer in order to help them purchase a product
• Promotion


  Informing, reminding or persuading customers about a product, the company, or a social cause that is important to the company
• Distribution

  Decisions surrounding the transportation and storage of goods from producer to consumer
• Pricing


  Deciding the amount to charge customers for products or services based on demand, competition, and the cost of raw materials
• Retailer


  Obtains goods in order to sell them directly to consumers
• Agent


  Brings buyers and sellers together but does not take ownership of the actual product
• Wholesaler


  An intermediary that obtains goods to sell them to industrial users
• Economic Factors of Production

  Land, labor, capital, and entrepreneurship
• Supply


  The quantity of goods and services that producers are willing and able to manufacture
• Demand


  The quantity of goods and services that consumers are willing and able to purchase
• Opportunity Costs


  Alternative choices given up for something else
• Command Economy


  The dictator of a country makes the decisions which affect the jobs and living conditions of people living there
• Market Economy

  Promotes private ownership of businesses where competition among business owners drives prices
• Traditional Economy


  Based mainly on agricultural products such as coffee
• Mixed Economy


  When both the government and individuals own factors of production
• Scarcity


  The difference between wants and needs and available resources
• Convenience Items


  Products purchased without much planning because they are purchased frequently
• Supplies


  Items that are frequently purchased by businesses that are indirectly related to the production process
• Materials


  Parts and raw materials that are purchased by a business in order to turn them into products to eventually sell to consumers
• Utility

  Add value in economic terms
• Form Utility


  Turning raw materials into a product that is more valuable
• Time Utility


  Making products available at certain times of day or year so it is available to customers
• Information Utility


  Providing instructions, warnings, etc. on products to make it easier to understand or work with a product such as owner's manuals or tags in clothing
• Place Utility


  Having products available in a location easy for customers to find and purchase
• Possession Utility


  Providing ways for customers to conveniently purchase a product such as lay away, credit cards, etc.
• Competition


  The struggle for customers between two or more companies. Leads to lower prices and higher quality products
• Direct Competition


  Market situation where two or more firms offer essentially the same good or service
• Indirect Competition


  Competition among the suppliers of different types of products that satisfy the same needs
• Price Competition


  This competition focuses on the sale price of a product
• Non-price Competition


  Competition that focuses on the quality or brand loyalty of a product
• Free Enterprise Economy


  An economy in which both consumers and private businesses make the majority of the economic decisions
• Profit =

  total revenue - total expenses
• Seller's Market


  An economy in which goods or shares are scarce and sellers can keep prices high
• Buyer's Market


  A situation in which supply exceeds demand, prices are relatively low, and buyers therefore have an advantage
• The Concept of Supply and Demand (In Terms of Pricing)

  As supply increases, prices should decrease; if demand increases, prices should increase; vice versa