Marketings Role in Global Economy

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chapter 1
Marketing’s Role in the Global Economy

When You Finish This Chapter, You Should 1. Know what marketing is and why you should learn about it. 2. Understand the difference between micro-marketing and macro-marketing. 3. Know why and how macromarketing systems develop. 4. Understand why marketing is crucial to economic development and our global economy. 5. Know why marketing special— ists—including middlemen and — facilitators—develop. 6. Know the marketing functions and who performs them. 7. Understand the important new terms (shown in red).


When it’s time to roll out of bed in the morning, does your
General Electric alarm wake you with a buzzer—or by playing your favorite radio station? Is the station playing
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You can buy a basic bike for less than $50. Or, you can spend more than $2,500 for a custom frame— not including the wheels! This variety of styles and features complicates the production and sale of bicycles. The following list shows some of the many things a firm should do before and after it decides to produce a bike. 1. Analyze the needs of people who might buy a bike and decide if they want more or different models. 2. Predict what types of bikes—handlebar styles, type of wheels, weights, and materials—different customers will want and decide which of these people the firm will try to satisfy. 3. Estimate how many of these people will be riding bikes over the next several years and how many bikes they’ll buy. 4. Predict exactly when these people will want to buy bicycles. 5. Determine where in the world these bike riders will be—and how to get the firm’s bikes to them. 6. Estimate what price they are willing to pay for their bikes—and if the firm can make a profit selling at that price.

Marketing’s Role in the Global Economy


7. Decide which kinds of promotion should be used to tell potential customers about the firm’s bikes. 8. Estimate how many competing companies will be making bikes, how many bikes they’ll produce, what kind, and at what prices. The above activities are not part of production—actually making goods or performing services. Rather, they are part of a larger process—called marketing—that provides needed direction for production and

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