Exam 1 Flashcards
(101 cards)
Production
actually making goods or performing services
Customer Satisfaction
the extent to which a firm fulfills a customer’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 obj. by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client.
- should be with potential customer needs–not with the production process.
- doesn’t occur unless 2 or more parties are willing to exchange something for something else.
Pure Subsistence Economy
where each family unit produces everything it consumes and there is no need to exchange goods and services and no marketing is involved.
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.
- still concerned w/the flow of need-satisfying goods and services from producer to consumer.
- the emphasis is not on the activities of individual organizations, it is on how the whole marketing system works.
Economies of Scale
means that as a company produces 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.
-Must be performed in all macro-marketing systems.
Buying Function
Means looking for and evaluating goods and services.
Selling Function
Involves promoting the product.
- Includes the use of personal selling, advertising, customer service, and other direct and mass selling methods.
- The most visible function of marketing.
Transporting Function
Means the movement of goods from one place to another
Storing Function
Involves holding goods until customers need them.
Standardization and Grading
Involve sorting products according to size and quality.
-Makes buying and selling easier b/c it reduces the need for inspection and sampling.
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.
Marketing Information Function
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—plays a role in the exchange process.
Collaborators
Firms that facilitate or provide one or more of the marketing functions other than buying.
-Collaborators include ad agencies, marketing research firms, independent product-testing laboratories, Internet service providers, public warehouses, transporting firms, communications companies, and financial institutions (including banks).
E-commerce
Refers to exchanges b/w individuals or organizations—and activities that facilitate these exchanges—based on applications of information 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, 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.
- In a pure market-directed economy, consumers make a society’s production decisions when they make their choices in the marketplace.
- Decide what is to be produced and by whom.
Five Stages of Marketing Evolution
The Simple Trade Era: A time when families traded or sold their “surplus” output to local distributors.
-This was the early role of marketing—and it is till the focus of marketing in many of the less-developed areas of the world.
The Production Era: A time when a company focuses on production of a few specific products—perhaps b/c few of these products are available in the market.
The Sales Era: A time when a company emphasizes selling b/c of increased competition.
The 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.
The 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.
Marketing Concept
Means that an organization aims all of its efforts at satisfying its customers—at a profit.
A simple but very important idea
