| A | B |
|---|
| Production | actually making goods or performing services |
| marketing | applies to profit and nonprofit organizations and is more than just selling or advertising |
| pure subsistence economy | an economy where each unit produces everything it consumes and no marketing is involved |
| macro-marketing | emphases how the whole marking system works |
| economies of scale | when a company produces a large number of a particular product, the cost to produce each unit decreases |
| universal functions of marketing | includes buying, selling, transporting, storing, standardization and grading, financing, risk taking and market information |
| buying function | looking for and evaluating goods and services |
| selling function | promoting the product |
| transporting function | moving goods from one place to another |
| storing function | holding goods until customers needs them |
| innovation | the development and spread of new ideas, goods and services |
| customer satisfaction | the extent to which a firm fulfills a customer's needs, desires and expectations |
| standardization and grading | soring products by size, quality and sampling |
| financing | providing the necessary cash and credit to produce goods and services |
| risk taking | bearing the uncertainties that are a part of the marketing process |
| market information function | involves collection, analysis and distribution of all the information needed to plan, carry out, and control marketing activities |
| intermediary | someone who specializes in trade rather than production |
| collaborators | specialists that provide more of the marketing functions other than buying or selling |
| e-commerce | amazon and e-bay are examples of companies that engage in this |
| economic system | the way that an economy organizes to use scarce resources to produce goods and services and distribute them for consumption |
| market-directed economy | consumers make a society's production decisions when they make purchases in the marketplace |
| simple trade era | a time when families traded or sold their surplus output to local distributors |
| production era | a time when a company focuses on production of a few specific products |
| sales era | a time when a company emphasizes selling because of increased competition |
| marketing department era | a time when all marketing activities are brought under control of one department to improve short-run policy planning |
| marketing company era | a time when the whole company is guided by long-range plans |
| marketing concept | an organization aims all its efforts at satisfying its customer at a profit |
| production orientation | making whatever products can be produced and trying to sell them |
| marketing orientation | occurs when companies try to offer customers what they need |
| customer value | the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits |
| micro-macro dilemma | what is good for some firms and customers may not be good for society as a whole |
| social responsibility | a firms' obligation to improve the positive effects on society and reduce its negative effects. |
| marketing ethics | the moral standards that guide marketing decisions and actions |
| command economy | government officials decide what and how much is produced and distributed by whom, when, to whom and why |
