performance of activities that seek to accomplish an organization’s objectives by anticipating a customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client. profit or non-profit. 

pure subsistence economy

 each family unit produces everything it consumes. no marketing and no need to exchange goods / services. 

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 large #, price/product goes down

universal functions of marketing

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

buying function

it  means looking for and evaluating goods and services

selling function

involves promoting the product, really. 

transporting function

means the movement fuck! 

storing function

holding goods until customers need them, really.

standardization and grading

sorting products according to size and quality.

financing

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

risk taking

involves bearing the uncertainties that are part of the mrkt process 

market information function 

involves the collection & analysis and distribution of all the info needed to plan, carry out and control marketing activities. 

intermediary

someone who specializes in trade rather than production. 

collaborators

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

e-commerce

exchanges btw individuals or organizations and activities that facilitate these changes based on applications of information technology. amazon.com!

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 a society.

command economy

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

market-directed economy

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

simple trade era

a time when families traded or sold their ‘surplus’ output to local distributors. 

production era

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

sales era

a time when a company emphasizes selling because of increased competition.

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

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. 

production orientation

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

marketing orientation

means trying to carry out the marketing concept (see above)

customer value

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

micro-macro dilemma 

when a firm focuses its efforts on satisfying some customers to achieve its objectives, there may be some negative effects on society. what’s good for some firms and customers may not be good for society as a whole.

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 decisions and actions.

marketing management process

process of (1) planning marketing activities (2) directing the implementations of the plans (3) just, controlling these plans, really. 

strategic (management) planning

the managerial process of developing and maintaing a match between and organization’s resources and its market opportunities. 

marketing strategy

specifies a target market and a related marketing mix. big picture of what a firm will do in some market. two parts: 

1. a target market = fairly homogeneous group of customers to whom the company wishes to appeal. 

(2) marketing mix - controllable variables the company puts together to satisfy the target      group

target marketing

says that a marketing mix is tailored to fit some specific target customers

mass marketing

the typical production oriented approach, it vaguely aims at everyone with the same marketing mix. assumes everyone is the same. everyone is a potential customer. 

marketing mix

the ‘four p’s’ make up a marketing mix

p r o d u c t

p l a c e 

p r i c e

p r o m o t i o n

channel of distribution

any series of firms or individuals that participate in the flow of products from producer to final user or consumer. “yeah, it’s just like a channel”.

personal selling

involves direct spoken communication btw sellers and potential customers. 

mass selling

communicating w/ large # @ same time

advertising

any paid form of non-personal presentation of ideas/goods/services by an identified sponsor

publicity

any unpaid form of non-personal presentation of ideas/goods/services

sales promotion

refers to those promotion activities other than advertising, publicity, and personal selling that simulate interest, trial, or purchase by final customers or others in the channel. can involve use of coupons, or sales, signs, catalogs, stuff like that

marketing plan

a written statement of a marketing strategy and the time related details for carrying out that strategy.

should spell out the following in detail: 

1. what marketing mix will be offered, to whom, and for how long?
2. what company resources will be needed at what rate? 
3. what results are expected?

implementation

 putting marketing plans into operation. 

operational decisions 

short run decisions to help implement strategies. managers make these. 

marketing program

- blends all of the firms marketing plans into one BIG PLAN

customer equity

expected earning stream (profitability of a firm’s current and perspective customers over some period of time)

breakthrough opportunities 

 help innovators develop hard to copy marketing strategies that will be very profitable for a long time. (kleenex fruit boxes)

competitive advantage

firm has a marketing mi that the target market sees better than a competitor's mix. 

differentiation

marketing mix is distinct and better than what is available from a competitor.

S.W.O.T. analysis

identifies and lists the firm’s strengths and weaknesses and its opportunities and threats. 

market penetration

trying to increase sales of a firm’s present products in its present markets - prolly through a more aggressive marketing mix.

market development

trying to increase sales by selling present products in new markets. 

product development

offering new or improved products for present markets. 

diversification

moving into totally different lines of business - perhaps entirely unfamiliar products, markets, or even levels in the production-marketing system.

the world is getting smaller, develop a competitive advantage at home and abroad, get an eraly early start in a new market, find better trends in variables, weight the risks of going abroad. 

external marketing environment

broad and includes 4 major areas:

economic, technological, political/legal, cultural social

competitive environment

affects the number and types of competitors a marketing manager must face and how they may behave

competitor analysis

an organized approach for evaluating the strengths and weaknesses of current competitors current or potential marketing strategies.

competitive rivals

firms that will be the closest competitors. 

competitive barriers

 the conditions that may make it difficult or even impossible for a firm to compete in a market 

economic environment

refers to macroeconomic factors including national income, economic growth and inflation that affect patterns of consumer and business spending 

technology

 the application of science to convert an economies resources to output. 

nationalism

an emphasis on a country’s interest before everything else. 

(NAFTA)

lays out a plan to reshape the rules of trade among US, Canada, & Mexico. 

cultural and social environment

affects how and why people behave as they do which affects customer buying behavior. 

sustainability

idea that it is important to meet present needs w/o compromising the ability of future generations to meet their own needs. 

strategic business unit 

 an organizational unit that focuses on some product markets and is treated as a separate profit center.