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Marketing Review - Chapters 3-4

Marketing Review Sheet

Chapter 3-4


  1. What is the Basic Economic Problem

Scarcity and Unlimited wants and needs of consumers

  1. 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

  1. 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)

  1. 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

  1. 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

  1. 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

  1. Define Supply and Demand and the Market Price.

Supply is the product and demand is the consumers wants  and needs

  1. 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

  1. 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)

  1. 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

  1. 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

  1. What is the purpose of economic utility?

The amount of satisfaction a customers receives from a product

  1. 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

  1. 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


  1. What is the Basic Economic Problem

Scarcity and Unlimited wants and needs of consumers

  1. 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

  1. 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)

  1. 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

  1. 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

  1. 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

  1. Define Supply and Demand and the Market Price.

Supply is the product and demand is the consumers wants  and needs

  1. 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

  1. 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)

  1. 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

  1. 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

  1. What is the purpose of economic utility?

The amount of satisfaction a customers receives from a product

  1. 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

  1. 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