MKT 300 1nd Edition Lecture 2 Outline of Last Lecture I. Antioxidant and redox regulation of gene transcription Outline of Current Lecture II.Chapter 1 TermsIII. Chapter 1 Concepts to ApplyCurrent LectureII. Chapter 1 Terms• productionactually making goods or performing services • customer satisfactionthe extent to which a firm fulfills a customer’s needs, desires, and expectations • innovationthe development and spread of new ideas, goods, and services• marketingperformance of activities that seek to accomplish an organization’s objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client • macro-marketingsocial 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 accomplished the objectives of societyemphasis on how the whole marketing system works a.k.a affecting society and vice versa • economies of scaleas a company produces larger numbers of a particular product, the cost ofeach unit of the product goes down• universal functions of marketing (help overcome separations and discrepancies for macro marketing)buying, selling, transporting, storing, standardization and grading financingrisk taking and market info • buyinglooking for and evaluating goods and services• sellingThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.promoting the product (advertising etc.)• transportingmovement of goods from one place to another• storingholding goods until customers need them • standardization and grading sorting products according to size and quality (reduces need for inspectionand sampling) • financingnecessary cash and credit to produce, transport, store, promote, sell and buy products • risk-takingbearing the uncertainties that are part of the marketing process• simple trade eraa time when families traded or sold their “surplus” output to local distributors; these specialists resold the goods to other consumers or other distributors (think less developed countries)• production eraindustrial revolution until 1920s: time when a company focused on production of a few specific products “if we can make it, it will sell” • sales era1930: time when a company emphasizes selling because of increased competition aka beat competitors and win consumers • marketing department eratime 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 • marketing company eratime when in addition to short run marketing planning, marketing people develop long range plans, sometimes five or more years ahead and the whole company effort is guided by the marketing concept • marketing conceptan organization aims all of its efforts at satisfying its customers at a profit. three basic ideas: customer satisfaction, total company effort and profit • production orientationwhen managers show little interest in customers’ needs; making whatever products are easy to produce and then trying to sell them; think customersby output instead of trying to serve customers • marketing orientationwhen companies try to carry out the marketing concept; tries to offer customers what they need• customer valuethe difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits • micro-macro dilemmawhen a firm focuses its efforts on satisfying some consumers—to achieveits objectives-there may be negative effects on society producers and consumers making free choices can cause conflicts and difficulties what is good for some companies might not be good for society as a whole NYC water bottles vs. good tasting safe tap water• social responsibility a firm’s obligation to improve its positive effects on society and reduce its negative effects • marketing ethicsthe moral standards that guide marketing decisions and actionsChapter 1 Concepts to Apply• What is marketing?The performance of activities that seek to accomplish an organization’s objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client• Why is marketing important to you?I’ll be a consumer the rest of my life; things available when and where I want them; I pay for cost of marketing activities as a consumer; career opportunities • How does marketing differ from production? Why is that distinction important?Marketing should begin with potential customer needs; marketing should try to anticipate needs; marketing, rather than production, should determine what goods and services are to be developed • How is customer satisfaction linked to the marketing concept?Customer satisfaction guides the whole system; companies used to fence in their area in the company but that’s not good; better job work together • Explain the relationship between customer satisfaction and profitEmployees that are satisfied are more likely to world harder: increase productivity, decrease turnover, and increase customer satisfaction.Customers that are satisfied are more likely to be loyal: increase customerlifetime value and increase customer willingness to pay premium costs. Firms must satisfy customers; cost more to satisfy. Profit - difference between a firm’s revenue and its total costs. Is the bottom line measure of the firm’s success and ability to survive ; it is the balancing point that helps the firm determine what needs it will try to satisfy with its total effort • What is the micro-macro dilemma? Examples? How can you resolve it ethically?What is good for some firms and consumers may not be good for society as whole; consumers and producers making free choices can cause conflicts and difficulties NYC water bottle issue Terrain vehicles are fun for some people, but may result in injuries (killingproductive people to society) or damage to wildness areas NYC passed law prohibiting the sale of sweetened drinks of more than 16 ounces handguns• Name a recent product evolution. Why do you feel it is an evolution not a revolution? . Purina Dog Food zip lock top is an evolution of hard dog food. A revolution wouldbe the breakthrough invention of preservative hard dog