Marketing Chapter 1

Production
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Terms in this set (35)
Production
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 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—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.
Economies of scale
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.
Buying function
looking for and evaluating goods and services.
Selling function
promoting the product.
Transporting functionthe movement of goods from one place to another.Storing functionholding goods until customers need them.Standardization and gradingsorting products according to size and quality.Financingthe necessary cash and credit to produce, transport, store, promote, sell, and buy products.Risk takingbearing the uncertainties that are part of the marketing process.Market information functionthe 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.Intermediarysomeone who specializes in trade rather than production—plays a role in the exchange process.Collaboratorsfirms that facilitate or provide one or more of the marketing functions other than buying or selling.E-commerceexchanges between individuals or organizations—and activities that facilitate these exchanges—based on applications of information technology.Economic systemthe 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 economygovernment officials decide what and how much is to be produced and distributed by whom, when, to whom, and why.Market-directed economythe individual decisions of the many producers and consumers make the macro-level decisions for the whole economy.Simple trade eraa time when families traded or sold their "surplus" output to local distributors.Production eraa time when a company focuses on production of a few specific products—perhaps because few of these products are available in the market.Sales eraa time when a company emphasizes selling because of increased competition.Marketing department eraa 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 eraa 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 conceptmeans an organization aims all its efforts at satisfying its customers—at a profit.Production orientationwhen managers make whatever products are easy to produce and then try to sell them.Marketing orientationmeans trying to carry out the marketing concept (try to offer customers what they need).Triple Bottom Linemeasures an organization's economic, social, and environmental outcomesCustomer valuethe difference between the benefits a customer sees from a market offering and the costs of obtaining these benefits.Micro-macro dilemmawhat is "good" for some firms and consumers may not be good for society as a whole.Social responsibilitya firm's obligation to improve its positive effects on society and reduce its negative effects.Marketing ethicsthe moral standards that guide marketing decisions and actions.