Glossary - Agribusiness Management - page 433

m arginal revenue In economics, the additional revenue generated by selling one more

unit of output.
m arginality In economics, a concept important in maximizing (profi t) or minimizing
(cost) a particular objective; focuses attention the incremental change in the objective
caused by an incremental change in a variable or variables.
market effi ciency A measure of productivity of the marketing process in terms of the
resources used and output generated during the process; involves operating effi ciency
and pricing effi ciency.
m arket forecast A forecast for a specifi c industry or type of products.
m arket information Any pertinent details and data such as news and industry specifi c
research which is used by buyers, sellers, inventory holders, wholesalers and others in
the industry to make decisions.
market mapping A tool for visually presenting information about a fi rm's customers and
markets by plotting relevant data on a map either manually or using a computer-based
geographic information system (GIS).
market penetration The proportion of a specifi c market that a fi rm controls..
market research The study of customers, competition, and trends in the marketplace,
with the goal of providing objective information on which to base marketing
decisions.
m arket risks Any number of uncertain outcomes involving the market for goods and serv-
ices; includes the possibility of price declines or increases, changes in consumer prefer-
ences, and / or changes in the nature of competition.
market segmentation In marketing, the process of classifying customers into
categories that have members who will react in a common way to a fi rm's marketing
offer.
marketable securities Stocks, bonds, and other investments that can be easily turned into
cash during an operating period (usually one year).
m arket-driven philosophy A marketing approach based on a true understanding of cus-
tomer needs; the focus on customer needs drives all decisions and activities in the
organization.
marketing In the macro sense, the process by which products fl ow through the
U.S. food production and marketing system from producer to fi nal consumer;
involves the physical and economic activities performed in moving products
from the initial producer through intermediaries to the fi nal consumer; from a
managerial perspective, the process of identifying customer needs, and creating,
pricing, promoting, and distributing products and services to meet those needs
profi tably.
marketing audit An objective examination and review of a company's entire marketing

strategy.
marketing channel The network of fi rms that manage the fl ow of products, services,
information, and money between producers and consumers.
marketing management One of the four functions of management; involves managing
the total process of identifying customer needs, developing products and services to
meet those needs, establishing promotional programs and pricing policies, and design-
ing a system of distributing products and services to customers.
marketing mix In marketing management, the combination of product, price, promotion,
and place strategies developed and implemented by a fi rm to support a specifi c position
in the market.