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

Flashcards covering the major concepts from Chapter 1: Marketing’s Value to Consumers, Firms, and Society.

What is marketing?

The 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?

A system that matches producers and consumers with an emphasis on the whole system; every society needs it.

What are the universal functions of marketing?

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

Who performs marketing functions?

Intermediaries and collaborators, including transport firms, ISPs, product testing firms, ad agencies, research firms, wholesalers, retailers, producers, and consumers.

What is the Marketing Concept?

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

What is customer value?

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

How does customer value relate to customer satisfaction?

Customer value drives satisfaction; delivering higher value increases satisfaction and strengthens relationships.

What is the micro–macro dilemma in marketing?

The tension between satisfying individual needs and society's needs; addressed by social responsibility and marketing ethics.

What is a market-directed economy?

An economy where prices guide resource allocation, with freedom of choice and a limited government role; public-interest groups monitor outcomes.

What is a command economy?

An economy where government officials decide what to produce and how to distribute; may work in simple economies with little variety.

Name the seven discrepancies macro-marketing helps overcome.

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

What is the purpose of marketing functions in macro-marketing?

To bridge gaps and overcome discrepancies, creating value and directing the flow of need-satisfying goods and services.

What does economies of scale mean?

Lower unit cost achieved with higher production volume.

List the universal marketing functions.

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

Who are intermediaries and collaborators in marketing?

Intermediaries connect producers and consumers; collaborators are partners that help create value (suppliers, retailers, etc.).

How has the role of marketing evolved over time, according to the notes?

From a focus on selling surplus to a focus on long-run customer satisfaction, coordination, and providing value.

What are the three elements of the Marketing Concept as shown in Exhibit 1-3?

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

What does triple bottom line mean in marketing terms?

A framework for evaluating social, environmental, and financial performance.

What is an intermediary in marketing?

An entity that links producers and consumers to facilitate the flow of goods and services.

What is a market information function?

Gathers and analyzes data about markets, customers, and competitors to inform decisions.

What is a micro–macro dilemma in relation to ethics and social responsibility?

Marketing practices must balance individual customer needs with societal needs; ethics and social responsibility guide this balance.

What is the difference between marketing concept and production orientation?

Marketing orientation emphasizes identifying and satisfying customer needs; production orientation emphasizes producing what can be made.