Chapter 1 Marketing 306

production
actually making goods or performing services
customer satisfaction
the extent to which a firm fulfills a consumer’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 objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client
pure subsistence economy
each family unit produces everything it consumes
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
economies of scale
as a company produces larger numbers of a particular products, the cost of each unit of the product goes down
universal functions of marketing
buying, selling, transporting, storing, standardizing and grading, financing, risk taking, and market information
buying function
looking for and evaluating goods and services
selling function
promoting the product
transporting function
the movement of goods from one place to another
storing function
holding goods until customers need them
standardization and grading function
sorting products according to size and quantity
financing
provides the necessary cash and credit to produce, transport, store, promote, sell, and buy products
risk taking
bearing the uncertainties that are part of the marketing process
market information function
the collection, analysis, and distribution of all the info needed to plan, carry out, and control marketing activities
intermediary
someone who specializes in trade rather than production
collaborators
firms that provide one or more of the marketing functions other than buying or selling
e commerce
exchanges between individuals or organizations – and activities that facilitate those exchanges – based on applications of info 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, what, 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
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 efforts is guided by the marketing concept
marketing concept
the idea that an organization should aim all its efforts at satisfying its customers – at a profit
production orientation
making whatever products are easy to produce and then trying to sell them
marketing orientation
trying to carry out the marketing concept
triple bottom line
a measure of long term success that includes an organization’s economic, social, and environmental outcomes
customer value
the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits
micro macro dilemma
what is good for some producers ans consumers may not be good for society as a whole
social responsibility
a firms obligation to improve its positive effects on society and reduce its negative effects
marketing ethics
the moral standards that guide marketing decisions and actions