Buad301 Study Guide

Production--- actually making goods or performing service, rather, they are part of a larger process--- called marketing that provide need direction for production and helps make sure that the right goods and service are produced and find their way to consumers.

It’s enough to see that marketing plays an essential role in providing consumers with need-satisfying goods and services and more generally, in creating customer satisfaction, which is the extent to which a firm fulfills a customer’s needs and desires, and expectations.  

Macro-marketing is a social process that directs an economy’s flow of goods and service from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society.

 With macro-marketing we are still concerned with the flow of need- satisfying goods and services from producer to consumer. However, the emphasis with macro- marketing is not on the activities of individual organizations, instead, the emphasis on how the whole marketing system works. This includes how marketing affects society and vice versa.

Society needs a macro-marketing system to help match supply and demand. Different producers in society have different objectives, resources, and skills, likewise, not all consumers share the same needs, preferences, and wealth. In other words, within every society there are both heterogeneous (highly varied) supply capabilities and heterogeneous demand for the goods and service. The role of the macro- marketing is to effectively match heterogeneous supply and demand and at same time accomplish society’s objectives.

An effective macro-marketing system delivers the goods and services that consumers want and need, which get products to them at the right time, in right place, and at a price they are willing to pay its keep customer satisfied after the sale and bring them back to purchase again.

 Separation between producers and consumers. Quantity: Producers prefer to produce and sell in large quantities. Consumers prefer to buy and consume in small quantities. Assortment producers specialize in producing a narrow assortment of goods and services. Consumers need a broad assortment.  Spatial separation tends to locate where it is economical to produce, while the consumer are located in many scattered places. Separation in time: consumer may not want to consume goods and services at the time producers would prefer to produce them. Information: producers do not know who needs what, where, when, and at what price. Consumer do not know what is available from whom, where, when, and at what price. Value producer value goods and service in term of cost and competitive price, consumers value them in term of satisfying needs and their ability to pay. Ownership: producers hold title to goods and services, but they do not want to consume. Consumer want to goods and service that they do not own.