Business Basics
In this country, the government owns all major industries and decides what products will be made, how much they will cost, and who can buy them.
Command Economy
A smartphone is sold in electronics stores, online through the company’s website, and through phone carriers.
Place
A smoothie shop gives out samples and asks people to fill out a short survey about which flavor they like best.
Primary Data
A bakery spends $500 on ingredients and supplies. After selling 100 cupcakes at $5 each, it earns $500. From that point on, any cupcakes sold make a profit.
Break-even Point
A pizza place mails out flyers with a $5 discount code for any large order made that week.
Coupons
Maria saw a need for affordable tutoring in her neighborhood, so she started her own mobile tutoring business with money she saved from babysitting.
Entrepreneur
The person who uses the product and the person who buys the product.
Consumer and customer
A company reads a government report on teenage spending habits to help decide how to price their new backpack line.
Secondary Data
A fast food restaurant sells a meal that includes a burger, fries, and a drink for $8, instead of charging $4, $3, and $2 for each item on its own.
Bundle Pricing
An electronics store posts a video online showing the new features of this year’s smartphone to convince people to buy it.
Product Promotion
The U.S., Canada and France all have this type of economic system
Mixed Economy
Women ages 25–40, middle income, active lifestyle, interested in fashion and fitness.
Customer Profile
A shoe company tests different materials to see which ones are most comfortable and asks athletes for feedback on how the shoes perform.
Product Research
A concert ticket costs more for front-row seats because more people want to sit close to the stage.
Demand-based Pricing
A coffee company runs ads about how it supports local farmers and uses eco-friendly packaging, to show it cares about the environment.
Institutional Promotion
There’s only one pizza place in town, and they know it. Last Friday, they charged $25 for a single slice, made me wait 90 minutes, and still forgot the cheese. When I complained, they said, 'Where else you gonna go?
Monopoly
A company releases a new laundry detergent designed for use in all households, regardless of age, income, or location.
Mass Market
This is the process used to study how TV ads affect what snacks kids want to eat.
Media Research
A car dealership may sell the same model to two different customers at different prices, depending on how well each one negotiates.
Flexible-price Policy
A cleaning product company uses bright green on its label to make people think of freshness and health.
Color Psychology in Branding
Kevin runs his own lawn care business. He makes all the decisions, keeps the profits, and is personally responsible for any losses.
Sole Proprietor
A makeup brand creates a new line just for teens with sensitive skin and advertises it on social media apps popular with that age group.
A structured way companies collect, organize, and analyze data about customers, competitors, and market trends to help make better decisions about selling products or services.
Marketing Information Systems
Out of all the phones sold last year, one brand made up 40% of the total sold in the country, making it the top seller.
Market Share
A snack company pays a grocery chain to put their new chips on eye-level shelves in every store across the region.
Slotting Allowance