Production

Actually making goods or performing services

Marketing (broad definition)

provides a needed direction for production and helps make sure that the right goods and sercices are produced and find their way to consumers

Customer Satisfaction

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

Innovation

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

Marketing

(micro view point/more common view point)

the performance of actvities 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

Macro-Marketing

a social process that directs an economy's flow of goods and services from producer to consumers in an way that effectively matches supply and demand and accomplishes the objectives of society

- emphasis 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

- taking advantage of mass production

universal functions of marketing

are buying, selling, transporting, storing, standardization and grading, financing, risk takingand market information

- must be perfomed in all macro-marketing systems

- how and by whom may differ among nations and economic systems

buying function

means looking for and evaluating goods ans services

selling function

involves promoting the product - includes: the use of personal selling, advertising, and other direct and mass selling methods

- most visable function of marketing

transporting function

means the movement of goods from one place to another

storing function

involves holding goods until customer need them

Standardization and grading

involve sorting products according to size and inspection and sampling

financing

provides the necessary cash and credit to produce, transport, store, promote, sell and buy product

Risk taking

involes bearing the uncertainties that are part of the marketing process

-A firm can never be sure that cutomer will want to buy its products

Market information function

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

intermediary

someone who specializes in trade rather than produciton

- When an inermediary plays a roll in the exchange process both producers and consumers may benefit

- retailers and wholesalers are two types of intermediaries

collaborators

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

- advertising agencies, marketing research firms, independent product-testing laboratories, internet service providers, public warehouses, transporting firms, communications companies, and financial insitutions (including banks)

- help smooth exchanges between producers, consumers, or intermediaries

e-commerce

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

- internet-based intermediaries: amazon.com, eBay

- this has increased the efficiency of our macro-marketing system

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

- usually part of overall government plan; therfore these economies are also called "planned" economies

Market-Directed Economy

the individual decisions of the many producers and consumers make the macro-level decisions for the whole economy

- comsumer's make a society's production decisions when they make their choices in the marketplace

-they decide what is to be produced and by whom - through their dollar "votes"

Simple Trade Era

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

- this was basically "markeing" in the US until the Industrial Revolution just over a hundred years ago

Production Era

(Industrial Revolution until the 1920s)

a time when a company focuses on production of a few specific products, perhaps because few of these products are available in the market

- "if we make it, it will sell" was the production era way of thinking

Sales Era

1930 - at least 1950

a time when a company emphasizes selling because of increased competiion

- now Western nations had more production capability than ever before

- now companies couldn't just produce goods, they had to beat the competition and win customers

Marketing

Department Era

a time when all marketing activites are brought under the control of one department to improve short-run policy planning and to try to integrate the firm's activites

- replaced the sales era

- tied together the efforts of research, purchasing, production, shipping ans sales

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

- the whole company effort is guided by the marketing concept

Marketing Concept

means that an organization aims all its efforts at satisfying its customer - at a profit

- some managers show little interest in customers' needs; still use production orientation

company wide effort + customer satisfaction + a profit =

The Marketing Concept

Marketing Orientation

means trying to carry out the marketing concept - instead of just trying to get customers to buy what the firm has produced

- offering customers what they need

- the basic ideas of the markeing concept are the objective: customer satisfaction, total company effor, and profit

- not just sales as an objective

Customer Value

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

- the more the benefits exceed the costs the higher the value and customer satisfaction

- low price does not always equal high customer value

micro-macro dilemma

a dilemma that occurs when something is "good" for some firms and consumers but may not be good for society as a whole

- bottled water (the plastic bottles add to unnecessary wast)

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 decions and actions