Chapter 1 : Marketing’s value to consumers, firms, and society
1. Marketing affects “innovation” and standard of living : the development and spread of new
ideas, good, and services
2. Idea of marketing : a set of activities done by an individual organization to satisfy its customers
3. Two ways to view marketing : macro view, micro view
4. Micro view of marketing : a set of activities performed by organizations; not every firm must
perform all of the functions
5. Macro view of marketing : a social process that directs and 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 society
6. Marketing defined : 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
7. The aim of marketing : is to identify customers needs and meet those need so well that the
product almost “sells itself”
8. Marketing should begin with who’s needs & not the what : customer needs & not the
production process
9. Pure subsistence economy : in which each family unit produces everything it consumers – there
is no need need to exchange goods and services and no marketing is involved
10. Emphasis on whole system : this includes how marketing affects society and vice versa. Every
society needs a macro-marketing system to help match supply and demand
11. Economies of sale : which means that as a company produces larger numbers of a particular
product, the cost of each of these products goes down
12. The universal functions of marketing : buying, selling, transporting, storing, standardization and
grading, financing, risk taking, and market information
13. Buying function : means looking for and evaluating goods and services
14. The selling function : involves promoting the product
15. Standardization and grading : involve sorting products according to size and quality
16. Risk taking : involves bearing the uncertainties that are part of the marketing processes
17. The market information function : involves the collection, analysis, and distribution of all the
information
18. Collaborators : firms that facilitate or provide one or more of the marketing functions other than
buying or selling
19. Example of collaborate : advertising agencies, marketing research firms independent product-
testing laboratories
20. Economic system : the way an economy organizes to use scarce resources to produce goods and
services distribute them for consumption by various people and groups in the society
21. What are the two basic kinds of economic systems : command economies and market-directed
economies
22. Command economy : in a command economy, government officials decides what and how much
is to be produced and distributed by whom, when, to whom, and why
23. Market directed economy : the individual decisions of the many producers and consumers make
the macro-level decisions for the whole economy
24. Price is a measure of value, in a market-directed economy
25. Five stages in marketing evolution : the simple trade era; the production era; the sales era; the
marketing department era; the marketing company era
26. Production Orientation : making whatever products are easy to produce and then trying to sell
them
27. A marketing orientation : means trying to carry out the marketing concept. Well-managed firms
have replaced this
