MKT 350 Ch. 1

Customer Value
Difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits.
Marketing Concept
Organization aims all its efforts at satisfying its customers, to a profit. Full company participation.
Market Information Function
The collection, analysis, and distribution of all the information needed to plan, carry out, and control marketing activities.
Risk Taking
Bearing the uncertainties that are part of the marketing process
Financing
Provides the necessary cash and credit to produce, transport, store, promote, sell, and buy products.
Standardization and Grading
Sorting products according to size and quality.
Storing Function
Holding goods until customers need them.
Transporting Function
Movement of goods from one place to another.
Selling Function
Promoting the product.
Production
Making goods or performing services, not part of MKT.
Customer Satisfaction
Extent to which a firm fulfills a customer’s needs, desires, and expectations.
Marketing
Anticipating customer needs and directing a flow of need-satisfying goods and services from producer to customer. More than selling and advertising.
Macro-Marketing
Social Process.
Micro-Marketing
Set of activities performed by organizations to satisfy its customers.
Command Economy
Gov’t driven and planned.
Market-Directed Economy
The individual decisions of the many producers and consumers make macro-level decisions for the whole economy. Free market driven.
Buying Function
Looking for and evaluating goods and services.
Micro-Macro Dilemma
What’s good for some producers and consumers doesn’t mean it’s good for society as a whole necessarily. Profits vs general good of society.
Economies of Scale
As a company produces larger quantity of a particular product, the cost of each unit of the product goes down.
Spatial Seperation
Primary purpose of storing and transporting functions marketing needs to overcome.
Discrepancy of Assortment
Idea that companies make multiple varieties of products but individuals only purchase few.