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Unformatted text preview: MARKETING MIDTERM STUDY GUIDE CHAPTER ONE Production- actually making goods or performing services (part of the larger process of marketing) Customer satisfaction- the extend to which a firm fulfills a customers needs, desires, and expectations Marketing is important to you! It is everywhere and effects us multiple times a day • Encourages research and innovation- the development and spread of new ideas, goods, and services • Big impact on consumers standard of living Macro-view vs. micro-view of marketing • Micro- a set of activities performed by organizations (everyday marketing talk) • Macro- a social process that directs an economy’s flow of goods/services from producers to consumers in a way that effectively matches supply/demand and accomplishes the objectives of society o Emphasis on how to the WHOLE marketing system works o Economies of scale- as a company produces larger numbers of a particular product, the cost of each unit of the product goes down Universal functions of marketing: • Buying function- look for and evaluate goods/services • Selling function- involves promoting the product (most visible function) • Transporting function- movement of goods from one place to another • Storing function- holding goods until customers need them • Standardization and grading- involves sorting products, according to size and quality • Financing function- provides the necessary cash and credit to produce, transport, store, promote, sell, and buy products • Risk-taking function- involves bearing the uncertainties in the marketing process • Market information- involve collection, analysis and distribution of the information needed to plan, carryout, and control market activities Intermediary- someone who specializes in trade rather than production; beneficial to producers and consumers in the exchange process (retailers, wholesalers) Collaborators- firms that facilitate to provide on or more of the marketing functions other than buying or selling E. Commerce- exchanges between individuals or organizations based on applications of information technology Role of Marketing in the economic system Economic system- The way an economy organizes to use scarce resources to produce goods/services and distribute them for consumption by various people and groups in society • Command economy- government officials decide what and how much is to be produced and distributed by whom, when, to whom, and why o Also called planned economy o Works well in a simple economy, but as the market gets more complicated, this doesn’t work very well • Market-directed economy- the individual decisions of the many producers/consumers make the macro-level decisions for the whole economy o Price is a measure of value- rough measure of how society values particular goods/services o Greatest freedom of choice- not forced to buy any goods and services except those for the good of society o Role of the government- enforce “rules of the game”, export/import rules...
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This note was uploaded on 03/28/2012 for the course MARKETING 300 taught by Professor Lim during the Spring '11 term at Wisconsin.

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