Four Ps of Marketing
What is Product?
The item or service offered to meet customer needs.
What does GAAP stand for?
Generally Accepted Accounting Principles
Name one type of sole proprietorship.
A small business owned by one person, such as a local bakery.
What is demand?
The desire and ability of consumers to purchase goods and services.
What is Price?
The amount of money customers must pay to acquire the product.
What is a balance sheet?
A financial statement that summarizes a company’s assets, liabilities, and equity at a specific point in time.
What is a partnership?
A business owned by two or more individuals who share profits and responsibilities.
What is supply?
The total amount of a product that producers are willing to sell at various prices.
What is Place?
The distribution channels through which a product reaches the consumer.
What is an income statement?
A financial statement that shows a company’s revenues and expenses over a period of time.
What are corporations?
Legal entities that are separate from their owners and can own assets, incur liabilities, and enter contracts.
What is equilibrium?
The point where supply equals demand, resulting in a stable market price.
What is Promotion?
The marketing communication that informs and persuades potential customers about the product.
What is the accounting equation?
Assets = Liabilities + Equity.
Name a benefit of LLC.
Limited liability for owners, protecting personal assets from business debts.
What happens when demand increases?
Prices typically rise as sellers respond to higher demand by increasing prices.
How do the four Ps influence each other?
Changes in one P can impact the others; for example, a higher price might necessitate a promotional strategy.
Why is financial accounting important?
It provides key information for stakeholders to make informed business decisions.
Compare a corporation and a sole proprietorship.
A corporation is owned by shareholders and has limited liability; a sole proprietorship is owned by one individual and has unlimited liability.
How does consumer behavior affect supply and demand?
Changes in consumer preferences can shift demand, impacting prices and production levels.