Chapter 1

Chapter 1 - Chapter 1 Production: actually making goods or...

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Chapter 1 Production: actually making goods or performing services Customer satisfaction : extent to which a firm fulfills a customer's needs, desires, and expectations Marketing : the performance of activities that seek to accomplish an organization's objectives by anticipating customer needs and directing a flow of need satisfying goods and services from producer to consumer o In advanced economies, marketing is about 50 cents of every dollar o Encourages innovation : the development and spread of new ideas, goods, and services o Should begin with potential customer needs not with the production process o Applies to both profit and non profit organizations o Focuses on facilitating exchanges Pure subsistence economy : when each family unit produces everything it consumes o No need to exchange goods and services o No marketing is involved Marco-marketing : 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 o Matches heterogeneous supply with heterogeneous demand Producer-Consumer separation Discrepancies in quantity Producers: large quantities Consumers: small quantities Discrepancies of assortment Producers: specialize in providing a narrow assortment of goods/services Consumers: need a broad assortment
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This note was uploaded on 03/05/2012 for the course BUSI 406 taught by Professor Perreault during the Fall '11 term at UNC.

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Chapter 1 - Chapter 1 Production: actually making goods or...

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