Exam 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.
Innovation
the development and spread of new ideas, goods, and services
Marketing
the performance of activities that seek to accomplish an organization’s obj. by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client.
- should be with potential customer needs–not with the production process.
- doesn’t occur unless 2 or more parties are willing to exchange something for something else.
Pure Subsistence Economy
where each family unit produces everything it consumes and there is no need to exchange goods and services and no marketing is involved.
Macro-marketing
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 and accomplishes the objectives of society.
- still concerned w/the flow of need-satisfying goods and services from producer to consumer.
- the emphasis is not on the activities of individual organizations, it is on how the whole marketing system works.
Economies of Scale
means 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.
-Must be performed in all macro-marketing systems.
Buying Function
Means looking for and evaluating goods and services.
Selling Function
Involves promoting the product.
- Includes the use of personal selling, advertising, customer service, and other direct and mass selling methods.
- The most visible function of marketing.
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.
-Makes buying and selling easier b/c it reduces the need for inspection and sampling.
Financing
Provides the necessary cash and credit to produce, transport, store, promote, sell, and buy products.
Risk Taking
involves bearing the uncertainties that are part of the marketing process.
Marketing Information Function
Involves the collection, analysis, and distribution of all the information 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—plays a role in the exchange process.
Collaborators
Firms that facilitate or provide one or more of the marketing functions other than buying.
-Collaborators include ad agencies, marketing research firms, independent product-testing laboratories, Internet service providers, public warehouses, transporting firms, communications companies, and financial institutions (including banks).
E-commerce
Refers to exchanges b/w individuals or organizations—and activities 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.
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.
- Decide what is to be produced and by whom.
Five Stages of Marketing Evolution
The Simple Trade Era: A time when families traded or sold their “surplus” output to local distributors.
-This was the early role of marketing—and it is till the focus of marketing in many of the less-developed areas of the world.
The Production Era: A time when a company focuses on production of a few specific products—perhaps b/c few of these products are available in the market.
The Sales Era: A time when a company emphasizes selling b/c of increased competition.
The 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.
The 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 of its efforts at satisfying its customers—at a profit.
A simple but very important idea
Production Orientation
Making whatever products are easy to produce and then trying to sell them.
Marketing Orientation
Means trying to carry out the marketing concept.
Three Basic ideas of the Marketing Concept
- Customer satisfaction
- A total company effort
- Profit—not just sales—as an objective.
Triple Bottom Line
Which means an organization’s economic, social, and environmental outcomes—as a measure of long-term success.
- Profit=economic outcome
- Social refers to how the company’s business activities affect its employees and other people in the communities where it operates.
- The third bottom line takes into account environmental responsibility, usually seeking to at least not harm the natural environment.
- Together these are sometimes referred to as measures of people, planet, and profit.
Customer Value
The difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits.
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.
Marketing Mngmt. Process
The process of:
-Planning marketing activities
- Directing the implementation of the plans
- Controlling these plans
Strategic (management) Planning
The managerial process of developing and maintaining a match b/w an organization’s resources and its market opportunities.
Marketing Strategy
Specifies a target market and a related marketing mix.
Target Market
A fairly homogenous (similar) group of customers to whom a company wishes to appeal.
Marketing Mix
The “Four Ps”: Generally speaking no one “P” is more important than the other.
The four major parts of a marketing mix:
Product: Concerned w/ developing the right “product” for the target market.
- Physical good
- Service
- Features
- Benefits
- Quality level
- Accessories
- Installation
- Instructions
- Warranty
- Product Lines
- Packaging
- Branding
Place: Concerned with all the decisions involved in getting the right product to the target market’s Place.
- Objectives
- Channel type
- Market Exposure
- Kinds of intermediaries
- Kinds and locations of stores
- How to handle Transporting and storing
- Service levels
- Recruiting intermediaries
- Managing Channels
Promotion: Concerned w/ telling the target market or others in the channel of distribution about the right product. Includes personal selling, mass selling, and sales promotion.
- Objectives
- Promotion blend
- Salespeople:
- Kind
- Number
- Selection
- Training
- Motivation
- Advertising:
- Targets
- Kind of ads
- Media type
- Copy Thrust
- Prepared by whom
- Publicity
- Sales Promotion
Price: Price setting must consider the kind of competition in the target market and the cost of the whole marketing mix.
- Objectives
- Flexibility
- Level over product life cycle
- Geographic terms
- Discounts
- Allowances
The customer is not part of the marketing mix
Target Marketing
A marketing mix that is tailored to fit some specific target customers.
Mass Marketing
The typical production-oriented approach that vaguely aims at everyone w/ the same marketing mix.
Channel of Distribution
Any series of firms or individuals who participate in the flow of products from producer to final user or consumer.
Personal Selling
Direct spoken communication b/w sellers and potential customers, usually in person but sometimes over the telephone or even via a video conference over the internet.
