Page 566 - Business Principles and Management

C HAPTER 20 A SSESSMENT

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CHAPTER CONCEPTS

• Marketing helps to balance the supply of products with the demand
for those products. The goal of effective marketing is to create and
maintain satisfying exchanges between buyers and sellers. Every busi-
ness is involved in marketing. It is the primary activity of retailers
and wholesalers.
• Marketing involves eight activities: buying, selling, transporting, stor-
ing, financing, researching, risk taking, and grading and valuing.
• A business may be production oriented, sales oriented, or customer
oriented. The marketing concept focuses on the needs of consumers
during the design, production, and distribution of a product.

• Businesses use marketing research to identify target markets—customers
with very similar needs that the business wants to serve.
• The four elements of the marketing mix are product, price, distribu-
tion, and promotion. Marketing decisions center on these four ele-
ments. A written marketing plan coordinates the many decisions and
activities involved in marketing.
• The product life cycle consists of four stages: introduction, growth,
maturity, and decline.
• Consumer goods can be classified as convenience, shopping, specialty,
or unsought goods, based on their importance to consumers and how
much time they are willing to spend making buying decisions.

REVIEW TERMS AND CONCEPTS

Write the letter of the term that matches each definition. Some terms will
not be used.
1. Businesses that sell directly to final consumers
2. Keeping the needs of the consumer uppermost in mind during the
design, production, and distribution of a product
3. Emphasizing widespread distribution and promotion to sell products
4. Types of buyers a business wishes to attract and where those buyers
are located a. customer oriented
5. The study of a company’s current and prospective customers b. distribution (place)
6. Groups of customers with very similar needs to whom the company c. growth stage
plans to sell its product d. market
7. All attributes, both tangible and intangible, that customers receive in e. market research
exchange for the purchase price f. marketing concept
8. Detailed written description of all marketing activities that a busi- g. marketing mix
ness must accomplish to sell its products h. marketing plan
9. Set of activities required to transport and store products and make i. maturity stage
them available to customers j. price
10. Blend of all decisions related to the four elements of marketing— k. product
l. retailers
product, price, distribution, and promotion m. sales oriented
11. Amount of money given to acquire a product n. target markets
12. Product life cycle stage in which several brands of the new product
are available

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