Final answer:
Marketing activities, as defined by the American Marketing Association, benefit both businesses and consumers by providing better or less expensive products and increasing profits, which in turn can increase income for employees. These benefits extend across various markets and households, positively impacting the overall economy.
Step-by-step explanation:
According to the American Marketing Association (AMA) definition of marketing, marketing activities benefit multiple stakeholders. It specifically benefits both businesses and consumers. For businesses, marketing helps in identifying and meeting the needs of consumers which can lead to better or cheaper products offered in the market. These enhanced offerings can then translate into increased profits for businesses. Moreover, the employees of these businesses can potentially earn more income as a result of successful marketing strategies.
From the consumer's perspective, they gain access to better or less expensive products through effective marketing, which meets their needs and wants. The overall impact of marketing, therefore, suggests that it adds value to the economy by improving the standard of living, encompassing benefits for firms in the goods market, firms in the financial market, households in the goods market, firms in the labor market, and households in the financial market.
Thus, when considering who benefits from marketing activities, it is clear that the correct answers according to the AMA definition are both businesses and consumers.