Chapter 1 Flashcards
Micro View
- Set of activities
- Performed by individual organizations
Macro view
- Social process
- Matches supply with demand
“Micro-Macro Dilemma”
The “Micro-Macro Dilemma” looks at the fact that what is good for some producers and customers may not be good for society as a whole.
Producers
are those who create and make available physical Products and/or Services. (Producers who make physical products are sometimes called manufacturers.)
Wholesaling
refers to the activities of those persons or establishments that sell to retailers and other merchants, or to industrial, institutional, and commercial users, but who do not sell in large amounts to final customers.
Retailing
refers to all of the activities involved in the sale of products to final consumers.
Command Economy
A Command Economy (also called a Planned Economy) is one in which the government makes all the decisions regarding production and distribution of goods and services. This type of economy is generally found in underdeveloped countries.
Market Directed Economy
A Market Directed Economy is characterized by consumers who pay what they think things are worth, rather than what they’re told to pay (we vote on the value of an offering by what we’re willing to pay for it; EBay and Craig’s List are great examples of how to determine the going market rate of something.)
The Marketing Concept
The Marketing Concept is the idea that a company should focus on satisfying the needs of the customer while at the same time trying to achieve the goals of the company (usually including the making of a profit!)
The key to this concept in four words is a
“company-wide consumer orientation”.
The four P’s
The creation of the term “the 4 P’s” was intended to remind one of the four critical categories of marketing: product, place, price, promotion.
