Basic Marketing 19th edition Chapters 1,2 & 3

Command Economy
Government officials decide what and how much is to be produced and distributed by whom, where, to whom and why.
-Producers in a command economy generally have little choice about what goods and services to produce. Their main task is to meet production quota.
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.
Refers to exchange between individuals or organizations and activities that facilitate these exchanges-based on applications of information technology.
Firms that facilitate or provide one or more of the marketing functions other than buying or selling.
-Collaborators include advertising agencies, marketing research firms, independent product testing labs, ect.
Some who specializes in trade rather than production.
The Market Information Function
Involves the collection, analysis, and distribution of all the information needed to plan, carry out, and control marketing activities, whether in the firms own neighborhood or in a market overseas.
Risk Taking
Involves bearing the uncertainties that are part of the marketing process.
Provides the necessary cash and credit to produce, transport, store, promote, sell, and buy products.
Standardization and Grading
Involve sorting products according to size and quality.
Storing Function
Involves holding goods until customers need them.
Transporting Function
Means the movement of goods from one place to another.
Selling Function
Involves promoting the product.
-Includes the use of personal selling, advertising, customer service, and other direct and mass selling methods.
Buying Function
Means looking for and evaluating goods and services.
Universal Function of Marketing
Are buying, selling, transporting, storing, standardization and grading, financing, risk taking and market information.
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 and accomplishes the objectives of society.
The development and spread of new ideas, goods and services.
Marketing Management Process
Is the Process of: Planning marketing activities, directing the implementation of the plans, controlling these plans.
Marketing Strategy
Specifies a target market and a related marking mix.
Strategic Management Planning
The managerial process of developing and maintaining a match between an organizations resources and its market opportunities.
Marketing Mix
The controllable variables the company puts together to satisfy this target group.
Target Market
A fairly homogeneous group of customers to whom a company wishes to appeal.
Mass Marketing
The typical production-oriented approach- vaguely aim at “everyone” with the same marketing mix.
Target Marketing
Says that a marketing mix is tailored to fix some specific target customers.
Operational Decisions
Short-run decisions to help implement strategies-may be needed.
Marketing Plan
Is a written statement of a marketing strategy and the time-related details for carrying out the strategy.
Putting marketing plans into operation.
The product area is concerned with developing the right “product” for the target market.
Place is concerned with all the decisions involved in getting the “right” product to the target market’s place.
Is concerned with telling the target market or others in the channel of distribution about the “right” product.
Must consider the kind of competition in the target market and the cost of the whole marketing mix.
Any unpaid form of non personal presentation of ideas, goods, or services.
Personal Selling
Involves direct spoken communication between sellers and potential customers.
Sales Promotion
Refers to those promotion activities.
-That stimulate interest, trial, or purchase by final customers or others in the channel.
Any paid form of non personal presentation of ideas, goods, or services by on identified sponsor.
Mass Selling
Is communicating with large numbers of customers at the same time.
Customer Service
A personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase-is often a key to building repeat business.
Marketing Orientation
Trying to carry out the marketing concept.
Means moving into totally different lines of business.
-Perhaps entirely unfamiliar products markets, or even levels in the production-marketing system.
Customer Life-Time Value
Total stream of purchase that a customer could contribute to the company over the length of the relationship.
Product Development
Means offering new or improved products for present markets.
Market Development
Means trying to increase sales by selling present products in new markets.
-This may involve searching for new uses for a product.
Market Penetration
Means trying to increase sales of a firms present products in its present market-probably through a more aggressive marketing mix.
Smaller firms that control the entire market
Monopolistic Competition
A number of different firms offer marketing mixes that at least some customers see as different.
Pure Competition
Fewer barriers, a lot more firms competing with the same product.
Means that the marketing mix is distinct from what is available from a competitor.
S.W.O.T. Anaysis
Which identifies and lists the firms strengths, weaknesses, opportunities and threats.
Competitive Advantage
Means that a firm has a marketing mix that the target market sees as better than a competition mix.
Breakthrough Opportunities
Opportunities that help innovators develop hard to copy marketing strategies that will be very profitable for a long time.
Market Program
Blends all of the firm’s marketing plans into one big plan.
Customer Equity
Is the expected earning stream (profitability) of firms current and prospective customer over some period of time.
Mission Statement
Which sets out the organizations basics purpose for beings.
Competitive Environment
Affects the number and types of competitors the marketing manager faces and how they may behave.
Sustainable Competitive Advantage
A marketing mix that customers see as better than a competitors mix and cannot be quickly or easily copied.
Competitor Analysis
An organized approach for evaluating the strengths and weaknesses of current or potential competitors marketing strategies.
Competitor Matrix
An organized table that compares the strengths and weaknesses of a company with those of its competitive rivals.
Competitive Rivals
Firms that will be the closest competitors.
Economic Environment
Refers to macro-economic factors, including national income, economic growth, and inflation, that affect patterns of consumer and business spending.
Is the application of science to concert an economy’s resources to output. It affects marketing in two ways: 1. It creates opportunities for new products. 2. For new processes.
An emphasis on a country’s interests before everything else.
North American Free Trade Agreement (NAFTA)
Lays out a plan to reshape the rules of trade among the United States, Canada, and Mexico.
Cultural and Social Environment
Affects how and why people live and behave as they do. -Which affects customer buying behavior and eventually the economic, political, and legal environment.
Gross Domestic Product (GDP)
The total market value of all goods and services provided in a country’s economy in a year by both residents and nonresidents of that country.
Gross National Income (GNI)
Is a measure that is similar to GDP, but GNI does not include income earned by foreigners who own resources in that nation.
Baby Boomers
Those born between 1946-1964. They are a powerful demographic force, as there are large number of people in this group. Create new opportunities in tourism, healthcare and financial services.
Generation X
Refers to the gen. born immediately following the baby boomers from 1965 to 1977. Smaller group, College aggressively recruited people, more educated.
Generation Y
Sometimes called Millennials, refers to those born from 1978-1994. An increasingly attractive market for industries like housing, appliances, furniture and electronics.
An idea that its important to meet present needs without compromising the ability of future generations to meet their own needs.
Economies of Sale
Which means that as a company produces larger numbers of a particular product, the cost of each unit of the product goes down.
Separation of Information
Producers do not know who needs what, where, when, and at what price. Consumers do not know what is available from whom, where, when, and at what price.
Separation in Values
Producers value goods and services in terms of cost and competitive prices. Consumers value them in terms of satisfying needs and their ability to pay.
Separation of Ownership
Producers how title to goods and services that they themselves do not want to consume. Consumers want goods and services that they do not own.
Spatial Separation
Producers tend to locate where it is economical to produce. Consumers are located in many scattered place.
Separation in Time
Producers would prefer to produce them, and time may be required to transport goods from producer to consumer.
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.
Is the performance of activities that seek to accomplish an organization objectives by anticipating customer or client needs and directing a flow of need satisfying goods and services from producer to customer or client.
Channel of Distribution
Is any series of firms (or individuals) that participate in the flow of products from producers to final user or consumer.
Marketing Ethics
The moral standards that guide marketing decisions and actions.
Social Responsibility
A firms obligation to improve its positive effects on society and reduce its negative effects.
Micro-Macro Dilemma
Producers and consumers making free choices can cause conflicts and difficulties. What not be good for society as a whole.
Customer Vaule
The difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits.
Triple Bottom Line
Which measures an organizations economic, social and environmental outcomes-as a measure of long-term success. Profit is the economic outcome.
Marketing Orientation
Trying to carry out the marketing concept. Firms try to offer customers what they need.
Production Orientation
Making whatever products are easy to produce and then trying to sell them.
Marketing Concept
Means that an organization aims all its efforts at satisfying its customers at a profit.
Marketing Company Era
Is a time when, in addition to shirt-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 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 firms activities.
Sales Era
A time when a company emphasizes selling because of increased competition.
Production Era
Is a time when a company focuses on production of a few specific production.
Simple Trade Era
A time when families traded or sold their “surplus” output to local distributors.
Market-Directed Economy
The individual decisions of the many producers and consumers make the macro-level decisions for the whole economy.