Chapter 1 Marketing’s Value to Consumers, Firms, and Society

A set of practice flashcards covering key concepts from Chapter 1: Marketing’s Value to Consumers, Firms, and Society.

What is marketing?

Performance of activities that accomplish objectives by anticipating customer needs, from producer to customer, and directing a flow of need-satisfying goods and services.

What is macro-marketing?

The system that matches producers and consumers and directs the flow of need-satisfying goods and services; emphasizes the whole system; every society needs it.

Name the universal functions of marketing.

Buying, Selling, Transporting, Storing, Standardization & Grading, Financing, Risk Taking, and Market Information.

Who performs marketing functions?

Producers, consumers, and marketing specialists such as transport firms, ISPs, product testing firms, ad agencies, research firms, wholesalers, retailers, and other specialists.

What is the marketing concept?

Profit (or another long-term measure of success) as an objective; total company effort; and customer satisfaction.

What is customer value?

Benefits minus costs; benefits include functional, emotional, and life-changing; costs include monetary and inconvenience.

How are social responsibility and marketing ethics related to the marketing concept?

The marketing concept guides ethics; decisions should balance customer needs with societal interests, addressing micro–macro dilemma.

What is a market-driven (market-directed) economy?

An economy where price is the value measure, there is freedom of choice, and government’s role is limited; the system adjusts to meet consumer needs.

Describe the Market-Directed Macro-Marketing System.

Many producers and consumers; intermediaries and collaborators perform universal marketing functions; to overcome producer–consumer discrepancies and create value; monitored by government and public interest groups.

How has marketing’s role changed over the years?

From a focus on selling surplus to long-run customer satisfaction; from increasing supply to coordinating and controlling; eras include Simple Trade, Production, Sales, Marketing Department, and Marketing Company eras.

What is the relationship of the Consumption Sector to marketing?

Consumption sector marketing facilitates production and consumption; production sector relies on marketing to overcome discrepancies and separations.

What discrepancies do marketing overcome?

Discrepancies of quantity, assortment, spatial separation, time, information, ownership, and values.

What does 'Marketing Bridges the Gap' signify?

Marketing functions connect producers and consumers to overcome separations and to produce output more efficiently.

What are the marketing functions listed as 'universal'?

Buying, Selling, Transporting, Storing, Standardization & Grading, Financing, Risk Taking, Market Information.

What is the Total Company Effort to Satisfy Customers?

Build profitable customer relationships by attracting customers, offering superior customer value, satisfying and retaining customers, and increasing sales to customers.

How does the marketing concept apply to nonprofit organizations?

Nonprofit organizations can apply the marketing concept; newcomers to marketing will have satisfied customers who offer support; bottom line may not be organized for marketing.

What is the micro–macro dilemma?

The tension between satisfying society's needs (macro) and a firm's own objectives; the marketing concept helps guide ethics in this tension.

What are common criticisms of marketing?

Advertising everywhere; poor quality or unsafe products; too many unnecessary products; serves the rich and exploits the poor; overpromising service; privacy concerns; pollution; excessive credit.

What is the triple bottom line?

A framework measuring social, environmental, and financial performance.

What is the difference between marketing orientation and production orientation?

Marketing orientation bases decisions on customer needs and satisfaction; production orientation emphasizes producing what can be sold and minimizing costs.