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Flashcards in Chapter 1 Deck (43):
1

Production

Actually making goods or performing services

2

Customer satisfaction

The extent to which a firm fulfills a customer's needs, desires, and expectations

3

Marketing encourages research and innovation - t

the development and spread of new ideas, goods, and services

4

Marketing

The performance of activities that seek to accomplish an organizatoin's objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from produce to customer or client

5

Marketing should begin with:

potential customer needs, not with the production process

6

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

7

Marketing does not occur unless:

two or more parties are willing to exchange something for something else

8

Macro-marketing

A social process that directs an economy's flow of goods and services from producers to consumers in a way that effectivey matches supply and demand and accomplishes the objectives of societyl

9

Discrepencies marketing needs to overcome

Discrepancies of Quantity - Producers prefer to produce and sell in large quantities. Consumers prefer to buy and consume in small quantities

Discrepancies of Assortment - Producers specialize in producing a narrow assortment of goods and services. Consumers need a broad assortment

10

Seperation marketing needs to overcome

Spatial Separation - producers tend to locate where it is economical to produce, while consumers are scattered

Separation in Time

Seperation of Information

Separation in Values

Separation of Ownership

11

Economies of Scale

That as a company produces larger numbers of a particular product, the cost of each unit of the product goes down

12

Universal functions of marketing

Buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information

13

Buying function

Looking for and evaluating goods and services

14

Selling function

Involves promoting the product

Includes the use of personal selling, advertising, and other direct ans mass selling methods

15

Transporting function

Means the movement of goods from one place to another

16

Storing function

Involves holding goods until customers need them

17

Standardization and grading

Involve sorting products according to size and quality

18

Financing

provides the necessary cash and credit to produce, transport, store, promote, sell and by products

19

Risk taking

Bearing the uncertainties that are part of the marketing process

20

Market information function

Involves the collection, analysis, and distribution of all the infomration needed to plan, carry out, and control marketing activities, whether in the firm's own neighborhood or in a market overseas

21

Intermediary

Someone who specializes in trade rather than production

22

Collaborators

Firms that facilitate or provide one or more of the marketing functions other than buying or selling

Ex. advertising agencies, marketing research firms, indpendent product-testing laboratories, internet service providers

23

E-Commerce

Refers to exchanges between individuals or organizations - and activties that facilitate these exchanges-based on applications of information technology

24

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

25

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 economies

26

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. 

They decide what is to be produced, through their dollar "votes"

27

5 stages in marketing evolution

1. Simple trade era

2. Production era

3. Sales era

4. Marketing department era

5. Marketing company era

 

28

Simple trade era

A time when families traded or sold their "surplus" output to local distributors

29

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

30

Sales era

A time when a company emphasizes selling because of increased competition

31

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

32

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

33

Marketing concept

Means that an organization aims all its efforts at satisfying its customers-at a profit

34

Product orientation

Making whatever products are easy to produce and then trying to sell them

35

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

36

3 basic ideas are included in the definition of the marketing concept:

1. customer satisfaction

2. a total company effort

3. profit-not just sales - as an objective

37

production orientation

A shorthand way to refer to this kind of narrow thinking-and lack of a central focus-in a business form

38

A manager who adopts the marketing concept sees _________ as the path to profits

customer satisfaction

39

customer value

the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits

40

Micro-Marcro dilemma

What is "good" for some firms and consumers may not be good for society as a whole

41

Social responsibility

A firm's obligation to improve its positive effects on society and reduce its negative effects

42

Marketing ethics

The moral standards that guide marketing decisions and actions

43