Chap 1 Flashcards
Marketing:
Provides needed direction for production and helps make sure that right goods and services are produced and find their way to consumers. The aim of marketing is to identify customer’s needs and to meet those needs so well that the product almost sells itself.
Macro-marketing:
Is a social process that directs an economy’s flow of goods and services from producers to consumers in a way that effectively matches supply and demand. The emphasis with macro-marketing is on how the whole marketing system works, not on the activities of individual organizations.
Economies of scale:
The cost of each unit goes down as companies produce large numbers of a particular good.
Production sector:
Specialization and division of labor result in heterogeneous supply capabilities.
Consumer sector:
Heterogeneous demand for different goods and services and when and where they need to be to satisfy needs and wants.
Separation between producers and consumers = Marketing is needed to overcome discrepancies and separations between production and consumer sector
Discrepancies of Quantity – Producers prefer to produce and sell in large quantities. Consumers prefer to buy and consume in small quantities. Discrepancies of Assortment – Producers specialize in producing a narrow assortment of goods and services. Consumers need a broad assortment. Spatial Separation – Producers tend to locate where it is economical to produce, while consumers are located in many scattered places. Separation in Time – Consumers may not want to consume goods and services at the time producers would prefer to produce them, and time may be required to transport good from producers to consumers. Separation of Information – Producers do not know who needs what, where, when and at what price. Consumers do now know what is available from whom, where, when and at what price. Separation in Values – Producers value goods and services in terms of costs and competitive prices. Consumers value them in terms of satisfying needs and their ability to pay. Separation of Ownership – Producers hold title to goods and services that they themselves do not want to consume. Consumers want goods and services that they do not own.
Universal functions of marketing:
Buying – Looking for and evaluating goods and services. Selling – Promoting the product. Transporting – Movement of goods from one place to another. Storing – Holding goods until costumers need them. Standardization and grading – Sorting products according to size and quality. Financing – Provides the necessary cash and credit to produce, transport, store, promote, sell and buy products. Risk taking – Involves bearing the uncertainties. Market information – Collection, analysis and distribution of all the information needed to plan, carry out and control marketing activities.
Intermediary:
Someone who specializes in trade rather than production.
Collaborators:
Firms that facilitate or provide more than other marketing function other than selling and buying.
E-commerce:
Exchanges between individuals or organizations based on applications of IT.
Economic system:
The way an economy organizes to use scare resources to produce goods and services and distribute them for consumption by various people and groups in the society.
Market-directed economy:
Consumers make a society’s production decisions when they make their choices in the marketplace. They decide what is to be produced and by whom.
Marketing evolution
Simple trade era – A time when families traded or sold their “surplus” output to local distributors. Production era – A time when a company focuses on production of a few specific products. “If we can make it, it will sell” Sales era – A time when a company emphasizes selling because of increased competition. Marketing department era – A time when all marketing activities are brought under control of one department to improve short-run policy planning and to try to integrate the firm’s activities. Marketing company era – A time when, in addition to short-run marketing planning, marketing people develop long-range plans and the whole company effort is guided by the marketing concept.
Marketing concept:
An organization aims all its efforts at satisfying it customers – at a profit. Three basic ideas are included in the definition of marketing concept: Customer satisfaction A total company effort Profit – not just sales- as an objective
Production orientation:
Making whatever products are easy to produce and then trying to sell them.
