Mkt Ch1.1.

actually making goods or performing services.

the extent to which a firm fulfills a customer's needs, desires and expectations.

Innovation- the development and spread of new ideas, good and services.

The standard of living is met when firms develop products that really satisfy customers, fuller employment and higher incomes can result.

• Macro- as a social process. (broad)
• Micro- a set of activities performed by organizations. (detailed, small)

• when families produce everything it consumes.
• Not good for marketing because, marketing doesn't occur unless two or more parties are willing to exchange something for something else.

a 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.

buying, selling, transporting, storing, standardization and grading, financing, risk taking and market information.

• someone who specializes in trade rather than production.
• marketing function performed.

• firms that facilitate or provide one or more of the marketing functions other than buying or selling.
• These include advertising agencies, marketing research firms...

• the exchanges between individuals or organizations, and activities that facilitate these exchanges- based on applications of information technology.
• example- ebay.com, amazon.com

the way an economy organizes to use scarce resources to produce goods and services and distribute them for consumption by various people and groups in the society.

• government officials decide what and how much is to be produced and distributed by whom, when, to whom and why.
• market research, branding and advertising are usually neglected in this economy.

• the individual decisions of the many producers and consumers make the macro-level decisions for the whole economy.
• individuals have the great freedom of choice.