Chapter 1 Flashcards
Production
Actually making goods or performing services
Customer satisfaction
The extent to which a firm fulfills a customer’s needs, desires, and expectations
Marketing encourages research and innovation - t
the development and spread of new ideas, goods, and services
Marketing
The performance of activities that seek to accomplish an organizatoin’s objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from produce to customer or client
Marketing should begin with:
potential customer needs, not with the production process
Pure subsistence economy
When each family unit produces everything it consumes - there is no need to exchange goods and services and no marketing is involved
Marketing does not occur unless:
two or more parties are willing to exchange something for something else
Macro-marketing
A social process that directs an economy’s flow of goods and services from producers to consumers in a way that effectivey matches supply and demand and accomplishes the objectives of societyl
Discrepencies marketing needs to overcome
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
Seperation marketing needs to overcome
Spatial Separation - producers tend to locate where it is economical to produce, while consumers are scattered
Separation in Time
Seperation of Information
Separation in Values
Separation of Ownership
Economies of Scale
That as a company produces larger numbers of a particular product, the cost of each unit of the product goes down
Universal functions of marketing
Buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information
Buying function
Looking for and evaluating goods and services
Selling function
Involves promoting the product
Includes the use of personal selling, advertising, and other direct ans mass selling methods
Transporting function
Means the movement of goods from one place to another
Storing function
Involves holding goods until customers need them
Standardization and grading
Involve sorting products according to size and quality
Financing
provides the necessary cash and credit to produce, transport, store, promote, sell and by products
Risk taking
Bearing the uncertainties that are part of the marketing process
Market information function
Involves the collection, analysis, and distribution of all the infomration needed to plan, carry out, and control marketing activities, whether in the firm’s own neighborhood or in a market overseas
Intermediary
Someone who specializes in trade rather than production
Collaborators
Firms that facilitate or provide one or more of the marketing functions other than buying or selling
Ex. advertising agencies, marketing research firms, indpendent product-testing laboratories, internet service providers
E-Commerce
Refers to exchanges between individuals or organizations - and activties that facilitate these exchanges-based on applications of information technology
Economic system
The way an economy organizes to use scarce resources to produce goods and services and distribute them for consumption by various people and groups in the society
Command economy
Government officials decide what and how much is to be produced and distributed by whom, when, to whom, and why
*also called planned economies
Market directed economy
The individual decisions of the many producers and consumers make the macro-level decisions for the whole economy
In a pure 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, through their dollar “votes”
5 stages in marketing evolution
- Simple trade era
- Production era
- Sales era
- Marketing department era
- Marketing company era
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 - perhaps because few of these products are available in the market
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 the 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 — sometimes five or more years ahead—–and the whole company effort is guided by the marketing concept
Marketing concept
Means that an organization aims all its efforts at satisfying its customers-at a profit
Product orientation
Making whatever products are easy to produce and then trying to sell them
Marketing orientation
Means trying to carry out the marketing concept
Instead of just trying to get customers to buy what the firm has produced, a marketing-oriented firm tries to offer customers what they need
3 basic ideas are included in the definition of the marketing concept:
- customer satisfaction
- a total company effort
- profit-not just sales - as an objective
production orientation
A shorthand way to refer to this kind of narrow thinking-and lack of a central focus-in a business form
A manager who adopts the marketing concept sees _________ as the path to profits
customer satisfaction
customer value
the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits
Micro-Marcro dilemma
What is “good” for some firms and consumers may not be good for society as a whole
Social responsibility
A firm’s obligation to improve its positive effects on society and reduce its negative effects
Marketing ethics
The moral standards that guide marketing decisions and actions
