Intro To Business Flashcards

1. Identify the four types of businesses.

   • Extractor – (Definition and examples)

   • Manufacturer – (Definition and examples)

   • Marketer – (Definition and examples)

   • Service Business – (Definition and examples)

2. Compare major types of business ownership.

   • Sole Proprietorship – (Definition, Advantages & Disadvantages)

   • Partnership – (Definition, Advantages & Disadvantages)

   • Corporation – (Definition, Advantages & Disadvantages)

   • Limited Liability Corporation (LLC) – (Definition, Advantages & Disadvantages)

3. Franchising – (Definition, Advantages & Disadvantages)

4. Explain the marketing concept, define target market, explain market segmentation.

   • What is the marketing concept?

   • What is the difference between a consumer and a customer as they relate to marketing?

   • What is the goal of marketing?

   • Define target market.

   • What is market segmentation?

   • List and describe the four types of market segmentation factors. Give an example of each:

     • Demographic

     • Geographic

     • Psychographic

     • Behavioral

5. Describe the elements of the marketing mix.

   • What are the 4 P’s of Marketing? Define and give an example of each.

   • What is the 5th P?

6. Describe the marketing functions.

   • List, describe, and give an example of each marketing function.

You can create individual flashcards by turning each question into its own card with the answer or definitions on the back.

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no give the answers to the questions that the answers aren't given

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Here are the answers to the questions that were not already provided in the study guide:

1. Identify the four types of businesses:

   • Extractor – Businesses that take resources from nature, such as mining, fishing, and agriculture.

   • Manufacturer – Businesses that produce goods by converting raw materials into finished products, like car manufacturers or food processors.

   • Marketer – Businesses that sell and promote products or services, such as retail stores or advertising companies.

   • Service Business – Businesses that provide intangible services, like banks, salons, or educational institutions.

2. Compare major types of business ownership:

   • Sole Proprietorship – A business owned by one person.

     • Advantages: Easy to start, owner has complete control.

     • Disadvantages: Unlimited liability, limited capital.

   • Partnership – A business owned by two or more people.

     • Advantages: Shared skills, more capital.

     • Disadvantages: Shared liability, potential for conflict.

   • Corporation – A legal entity separate from its owners.

     • Advantages: Limited liability, easier to raise capital.

     • Disadvantages: Complex to start, double taxation.

   • Limited Liability Corporation (LLC) – A business structure that offers limited liability to its owners while allowing for pass-through taxation.

     • Advantages: Limited liability, flexible management.

     • Disadvantages: More paperwork than a sole proprietorship or partnership, self-employment taxes.

3. Franchising:

   • Definition: A franchise is a type of business in which the owner (franchisor) grants another party (franchisee) the right to operate a business using the franchisor's business model and branding.

   • Advantages: Established brand, support from franchisor.

   • Disadvantages: Initial franchise fees, less control over business decisions.

4. Explain the marketing concept, define target market, explain market segmentation:

   • Marketing Concept: A business philosophy where the focus is on identifying and meeting the needs and wants of customers better than competitors.

   • Consumer vs. Customer:

     • Consumer: The person who uses the product or service.

     • Customer: The person who buys the product or service.

   • Goal of Marketing: To satisfy customer needs and generate profits for the company.

   • Target Market: A specific group of consumers that a company aims to reach with its products or services.

   • Market Segmentation: The process of dividing a broad consumer or business market into sub-groups of consumers based on shared characteristics.

5. List and describe the four types of market segmentation factors:

   • Demographic: Segmenting by age, gender, income, education, etc. Example: Targeting high-income earners with luxury goods.

   • Geographic: Segmenting based on location, such as cities, regions, or countries. Example: Offering snow gear in colder climates.

   • Psychographic: Segmenting by lifestyle, values, or personality. Example: Targeting eco-conscious consumers with sustainable products.

   • Behavioral: Segmenting based on consumer behavior, such as purchase patterns or brand loyalty. Example: Offering discounts to frequent buyers.

6. Describe the elements of the marketing mix:

   • The 4 P’s of Marketing:

     • Product: The goods or services offered. Example: A smartphone with unique features.

     • Price: How much the product costs. Example: Setting a premium price for high-end products.

     • Place: Where the product is sold. Example: Online stores, retail outlets.

     • Promotion: How the product is advertised. Example: Social media marketing campaigns.

   • The 5th P: People – Refers to the customer service and the individuals involved in the transaction. Example: Friendly and knowledgeable staff.

7. Describe the marketing functions:

   • 1. Product/Service Management: Designing, developing, and improving products.

   • 2. Distribution: Deciding how to get products to consumers.

   • 3. Financing: Getting funds to start and run the business.

   • 4. Pricing: Setting prices to maximize profit while considering customer value.

   • 5. Promotion: Communicating the value of a product to customers.

   • 6. Selling: Direct interaction with customers to satisfy needs.

   • 7. Marketing Information Management: Gathering and analyzing data to make marketing decisions.