Chapter 12 Vocab
1. Marketing-all activities needed to move goods and services from the producer to the
consumer; includes market research, advertising and promotion and distribution.
2. Utility-ability of any good or service to satisfy consumer wants
3. form utility-the conversion of raw materials to finished goods to satisfy consumer
wants.
4. place utility-utility created by having a good available where a consumer wants to buy
it.
5. time utility-utility created by having a good available when a consumer wants to buy
it.
6. ownership utility-utility created by assuring orderly transfer of ownership of desired
goods.
7. market research-gathering, recording, and analyzing data about the types of goods and
services that people want.
8. market survey-survey in which researchers gather information about possible users of a
product based on such characteristics as age sex, income, education and location; written
questionnaires and personal interviews are often used.
9. test marketing-offering a product for sale in a small area for a limited period of time to
see how well it sells before offering it nationally.
10. price leadership-practice of setting prices close to those charged by other companies
selling similar products; found especially in oligopolies.
11. penetration pricing-selling a new product at a low price to attract customers away
from an established product.
12. Promotion-use of advertising and other methods to inform consumers that a new or
improved product or Service is available and to persuade them to purchase it.
13. direct-mail advertising-type of promotion using a mailer that usually includes a letter
describing the product or service and an order blank or application from.
14. product life cycle-series of stages that a product goes through from first introduction
to complete withdrawal from the market; a cycle has no fixed number of months or
years.
15. channels of distribution-routes by which goods are moved from producers to
consumers.
16. Wholesalers-businesses that purchase large quantities of goods from producers for
resale to other businesses.
17. Retailers-Businesses that sell consumer goods directly to the public.