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Marketing

TermDefinition
Price One is given up in exchange to acquire goods or service
Profit maximization Setting prices so that the total revenue is as large as possible to total cost
Variable costs Costs that will vary based upon the numbers of produced
Fixed costs Stay the same over time, regardless of production
Satisfactory Profits Rather than maximizing profits, many organizations strive for profit satisfactory to the shareholders and management
Target Return on Investment Measures management's overall effectiveness in generating profits with the company's assets that have come from investors
Market Share A company's product sales as a percentage of total sales for that industry. Sales can be reported in dollars or in units of product
Sales Maximization A company with the objective of maximizing sales will ignore profits, competition, and the marketing environment as long as sales are rising
Created by: yoitsbella
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