MKT 320F Chapter 1

production
actually making goods or performing services
customer satisfaction
extent to which a firm fulfills a customer’s needs, desires, and expectations
innovation
development and spread of new ideas, goods, and services. as firms offer new and better ways of satisfying consumer needs, customers have more choice among products and this fosters competition for consumer’s money.
marketing
performance of activities that seek to accomplish an organizations’ 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
when each family unit produces everything it consumes
macro-marketing
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
means that as a company products 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, customer service, etc. Most visible function of marketing.
transporting function
means the movement of food from one place to another
storing function
involves holding goods until customers need them
standardization and grading
involves sorting products according to the size and quality
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. can never be sure customers will want the product or products can be damaged, stolen or outsated.
market information function
function that 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
collaborators
firms that facilitate or provide one or more of the marketing functions other than buying or selling. include advertising agencies, marketing research firms, independent product-testing laboratories, internet service providers, public warehouses, transporting firms, communications companies, and financial institutions
e-commerce
refers to exchanges between individuals or organizations and activities that facilitate these exchanges based on applications of information technology
economic system
the way an economy organizes to use scare resources to produce goods are 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 economy” bc is part of an overall government plan.
market economy
the individual decisions of the many producers and consumers make the macro-level decisions for a whole economy. consumers make a society’s production decisions when they make their choices in the marketplace. they decide what is to be produced and by whom by their dollar votes.
simple trade era
a time when families traded or sold their “surplus” output to local distributors
production era
from industrial revolution until the 1920s, a time when a company focuses on production of a few specific products, “if we can make it, it will sell” mentality because so few products were available on the market
sales era
time when problem wasn’t just what to produce, but to beat the competition and win customers; 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
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
production orientation
making whatever products are easy to produce and then trying to sell them, not concerned with the consumer’s needs
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.
three basic ideas included in definition
1) customer satisfaction
2) total company effort
3) profit, not just sales
triple bottom line
measures an organization’s economic, social, and environmental outcomes; some consider this a measure of long-term success. takes into account environmental responsibility, greater 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
micro-macro 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