Marketing Review - Chapters 3-4
Marketing Review Sheet
Chapter 3-4
What is the Basic Economic Problem
Scarcity and Unlimited wants and needs of consumers
What are the three Economic Questions that each market structure must answer?
What good and services will be produced?
How will they be produced
For who will they be produced
What is a command economy and how does this economy answer the three Economic Questions?
economic system in which the government answers the three economic questions (North Korea)
What is a Free/Market Economy and how does this economy answer the three Economic Questions?
resources are owned by individuals and Edison’s are made independently with no attempt at gov regulation or control.
The people (consumers and demanders) answer the question
What is a Mixed Economy and how does this economy answer the three Economic Questions?
some goods and services are provided by the gov and some by private enterprise
What is the difference between a consumer and a producer?
A consumer is the person who buys goods and services
The producer- businesses that produce goods and services
Define Supply and Demand and the Market Price.
Supply is the product and demand is the consumers wants and needs
What is the significance of the Market Price?
It produces a steady supply and demand for consumers wants and needs, without having shortage or surplus
What is the difference between a surplus of goods and a shortage of goods? Recognize this on a supply and demand graph.
Surplus- too much produced (on the top)
Shortage- not enough produced (on the bottom)
Define the Law of Demand and the Law of Supply.
Demand- when the products price rises the demand will lessen
Supply- when the good is increased more will be demanded
What are the four economic resources?
Natural resources, capital, equipment, labor
Recognize characteristics of the four forms of economic competition; pure/perfect competition, monopolistic competition, oligopoly, and monopoly.
Pure- the type of market in which many suppliers offer very similar products
Monopolistic-the type of market where many firms compete with products that are somewhat different
Oligopoly- a few businesses offer very similar products or services
Monopoly-a market in which one supplier offers a unique product and had very little competition
What is the purpose of economic utility?
The amount of satisfaction a customers receives from a product
Recognize and define the four economic utilities; form, place, time, and possession.
Form- name of product, picture of drawing or product, and description
Place- where are you going to sell it?
Time- When are you going to sell it?
Possession- What will you take as an exchange for product? Credit card, PayPal, cash, check, etc
Recognize and define the 4 P’s of the Marketing Mix; product, place, price and promotion.
Product-product itself. Who needs it, and why? What does it do that no competitor's product can do?
Place-where the product should be available
Price-amount that consumers will be willing to pay for a product. Marketers must link the price to the product's real and perceived value, while also considering supply costs
Promotion-communicate to consumers that they need this product and that it is priced appropriately
Marketing Review Sheet
Chapter 3-4
What is the Basic Economic Problem
Scarcity and Unlimited wants and needs of consumers
What are the three Economic Questions that each market structure must answer?
What good and services will be produced?
How will they be produced
For who will they be produced
What is a command economy and how does this economy answer the three Economic Questions?
economic system in which the government answers the three economic questions (North Korea)
What is a Free/Market Economy and how does this economy answer the three Economic Questions?
resources are owned by individuals and Edison’s are made independently with no attempt at gov regulation or control.
The people (consumers and demanders) answer the question
What is a Mixed Economy and how does this economy answer the three Economic Questions?
some goods and services are provided by the gov and some by private enterprise
What is the difference between a consumer and a producer?
A consumer is the person who buys goods and services
The producer- businesses that produce goods and services
Define Supply and Demand and the Market Price.
Supply is the product and demand is the consumers wants and needs
What is the significance of the Market Price?
It produces a steady supply and demand for consumers wants and needs, without having shortage or surplus
What is the difference between a surplus of goods and a shortage of goods? Recognize this on a supply and demand graph.
Surplus- too much produced (on the top)
Shortage- not enough produced (on the bottom)
Define the Law of Demand and the Law of Supply.
Demand- when the products price rises the demand will lessen
Supply- when the good is increased more will be demanded
What are the four economic resources?
Natural resources, capital, equipment, labor
Recognize characteristics of the four forms of economic competition; pure/perfect competition, monopolistic competition, oligopoly, and monopoly.
Pure- the type of market in which many suppliers offer very similar products
Monopolistic-the type of market where many firms compete with products that are somewhat different
Oligopoly- a few businesses offer very similar products or services
Monopoly-a market in which one supplier offers a unique product and had very little competition
What is the purpose of economic utility?
The amount of satisfaction a customers receives from a product
Recognize and define the four economic utilities; form, place, time, and possession.
Form- name of product, picture of drawing or product, and description
Place- where are you going to sell it?
Time- When are you going to sell it?
Possession- What will you take as an exchange for product? Credit card, PayPal, cash, check, etc
Recognize and define the 4 P’s of the Marketing Mix; product, place, price and promotion.
Product-product itself. Who needs it, and why? What does it do that no competitor's product can do?
Place-where the product should be available
Price-amount that consumers will be willing to pay for a product. Marketers must link the price to the product's real and perceived value, while also considering supply costs
Promotion-communicate to consumers that they need this product and that it is priced appropriately