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Unformatted text preview: Chapter 1 • 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 • Universal functions of marketing (macro-marketing): Buying function, selling function, transporting function, storing function, standardization and grading, financing, risk taking, information, centralized exchange system • Principles of The Marketing concept: o Take the customer’s point of view o Customer value o Target customers o Integrated marketing o Build relationships w/ customer value o Profitable sales • The Value concept: o Traditional definition: Value = Quality / Price o Modern Definition: Value = (Quality + convenience + service + experience + innovation)/ price • New Product Development process: Screening, idea evaluation, development, comercialization • Each producer specializes in producing and selling large amounts of narrow assortment of goods and services, but each consumer wants only small quantities of a wide assortment of goods and services • The purpose of macro-marketing system is to overcome these separations and discrepancies. • Universal functions of marketing are buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information. Must be performed in macro-marketing system. • Two kinds of economic systems: command and market-directed economies • Every economy is a mixture of the two • Command economy—government officials decide what and how much is to be produced and distributed by whom, when, to whom and why. • Market-directed economy—the individual decisions of the many producers and consumers make the macro-level decisions for the whole economy. • 5 stages in marketing evolution: o 1) Simple trade era—families traded or sold their “surplus” output to local middlemen (didn’t change much until Industrial Revolution a little over 100 years ago) o 2) The production era- (industrial revolution to 1920s) a time when company focuses on production of a few specific products—perhaps because few of these products are available in the market. “if we can make it, it will sell” o 3) The sales era—(1930-1950s)a time when a company emphasizes selling because of increased competition o 4) Marketing department era—(1950-1960)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 o 5) Marketing company era—time when, in 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 • Some managers have not made it to the final stages • subsistence economy—each family raised and consumed everything it produced • Marketing concept—means that an organization aims ALL its efforts at satisfying its customers—...
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- Fall '08
- Marketing, producer, marketing program Customer equity