Basic Marketing 18E Ch.1 Key Terms

Front 1

Production

Back 1

the actual making of goods or performing services

Front 2

• Customer Satisfaction

Back 2

the event to which a film fulfills a customer’s needs, desires, and expectations

Front 3

• Innovation

Back 3

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

Front 4

• Marketing

Back 4

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 foods and services from producer to customer or client

Front 5

• Pure-subsistence economy

Back 5

each family unit produces everything it consumes

Front 6

• Macro-marketing

Back 6

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

Front 7

• Economies of scale

Back 7

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

Front 8

• Universal functions of marketing

Back 8

in a macro-market system, it is the buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information

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• Buying function

Back 9

looking for and evaluating goods and services

Front 10

• Selling function

Back 10

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

Front 11

• Transporting function

Back 11

movement of goods from one place to another

Front 12

• Storing function:

Back 12

holding goods until customers need them

Front 13

• Standardization and grading:

Back 13

sorting products according to size and quality. makes buying and selling easier because it reduces the need for inspection and sampling

Front 14

• Financing:

Back 14

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

Front 15

• Risk taking:

Back 15

beating the uncertainties that are part o the marketing process

Front 16

• Market information function:

Back 16

involves the collection, analysis, and distribution of all the information needed to plan. Carry out, and control marketing activities

Front 17

• Intermediary:

Back 17

someone who specializes in trade rather than production—plays a role in the exchange process

Front 18

• Collaborators:

Back 18

firms that facilitate or provide one of more of the marketing functions other than buying or selling. Include advertising agencies, marketing research firms, independent product-testing labs, internet service providers, public warehouses, transporting firms, communication companies, and financial institutions (including banks)

Front 19

• E-commerce:

Back 19

exchanges between individuals or organizations and activities that facilitate these changes

Front 20

• Economic system:

Back 20

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

Front 21

• Command (“Planned”) economy:

Back 21

government officials decide what and how much is to be produced and distributed by whom, when, to whom, and why

Front 22

• Market-directed economy:

Back 22

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

Front 23

• Simple trade era:

Back 23

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

Front 24

• Production era:

Back 24

a time when a company focuses on production of a few specific products

Front 25

• Sales era:

Back 25

a time when a company emphasizes selling because of increased competition

Front 26

• Marketing department era:

Back 26

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

Front 27

• Marketing company era:

Back 27

a time when, in a addition to short-run marketing planning, marketing people develop long-range plans—sometimes 5 or more years ahead—and the whole company effort is guided by the marketing concept

Front 28

• Marketing concept:

Back 28

when an organization aims all of its efforts at satisfying its customers—at a profit

Front 29

• Production orientation:

Back 29

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

Front 30

• Marketing orientation:

Back 30

trying to carry out the marketing concept. Rather than getting customers to buy what the firm has produced, instead they offer customers what they need

Front 31

• Customer value:

Back 31

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

Front 32

• Micro-macro dilemma:

Back 32

what is “good” for some firms and consumers may not be good for society as a whole

Front 33

• Social responsibility:

Back 33

a firm’s obligation to improve its positive effects on society and reduce its negative effects

Front 34

• Marketing ethics:

Back 34

the moral standards that guide marketing decisions and actions