Microeconomics is the study of decision making by individuals and businesses. Microeconomics includes the study of resource allocation, output decisions, and pricing by businesses; how businesses respond to COMPETITION; and the different types of competitive environments within which businesses operate.

A metropolitan statistical area (MSA) is freestanding area with an urban center containing at least 50,000 people and a total MSA population of 100,000 or more. The U.S. CENSUS BUREAU defines and identifies MSAs, which are frequently used by marketers in developing geographic segmentation strategies.

Mergers and acquisitions (M&As;) are the joining together of two or more firms. Mergers generally bring together two similar-sized firms, while acquisitions usually involve larger firms taking control of smaller firms. In either case, the purpose of mergers and acquisitions is to increase shareholder value.

See JONES ACT.

Mercantilism was an economic theory based on the idea that national WEALTH and power could be increased through the accumulation of precious metals (primarily gold) and by maintaining a favorable TRADE BALANCE (an excess of exports over imports).

Matrix management is the use of a different MANAGEMENT structure for each type of work environment. It combines both functional and PRODUCT-organizational structures. In matrix management, an employee may report to several managers for different projects assigned to him or her.

The master of business administration (MBA) is a graduate degree offered by American and other universities around the world. Dartmouth’s Tuck School of Business created the first MBA program in 1900. In 2001 there were 344 accredited business schools in the United States, of which 188 graduated 50 or more MBA students in the previous year.

Mass merchandising is a method of RETAILING is characterized by high-volume, fast-turnover selling of staple goods for less than conventional prices. Establishments that satisfy these selling criteria are called mass merchandisers, discount department stores, discount variety stores, general merchandise discount stores, full-line discounters, or discount “houses.”

Mass customization is providing customers with highquality, competitively priced goods and SERVICES tailormade to their specifications or needs. Mass customization attempts to deliver the ECONOMIES OF SCALE of mass PRODUCTION along with the special attention associated with custom-made PRODUCTs and services.

To advance economic recovery in Europe following World War II, the Marshall Plan, or the European Recovery Program, was established. A draft of this plan took form in a commencement speech given at Harvard University on June 5, 1947, by U.S. Secretary of State George C. Marshall, who spoke of the importance of restoring “economic health” in order to assure “political stability” in the region.

The term market value is easy to throw into a business conversation but correspondingly difficult to define precisely. Since market value is often cited in CONTRACTs, law courts have developed a very precise definition that has been adopted in many valuation settings.

Virtually all businesspeople claim the markets they operate in are highly competitive. Colorful terms like dog-eat-dog, cutthroat COMPETITION, and economic Darwinism are used to describe behavior in markets. Market structure refers to models representing the degree of competition that exists in a market.

The market-share, market-growth matrix, created by the Boston Consulting Group, is a model used by companies to evaluate components (business units or PRODUCT groups) of their organization. This model allows firms to classify business units within the firm based on the company’s market share (high or low) and industry-growth rate (high or low).

Market segmentation—dividing the total market into smaller, relatively similar groups—is essential to target marketing, in which a company’s efforts are focused on meeting and anticipating the needs of those segments of the total market most likely to purchase their goods and SERVICES.

Market research is the development, interpretation, and communication of decision-oriented information for business managers. It is used to solve problems, identify opportunities, support promotional efforts, and improve CUSTOMER RELATIONS / SATISFACTION.

Market intelligence, also referred to as competitive intelligence or business intelligence, is the information one company is able to accumulate about another based on data gathered from public sources and effective interviewing.

Marketing strategy, part of an organization’s marketingplanning process, is a firm’s overall plan for selecting and meeting the needs of TARGET MARKETS. Marketing planning begins with comparing opportunities against the firm’s resources, then developing objectives and strategies to meet those objectives. Tactical plans for implementation and control are used to outline how the objectives will be achieved.

Marketing-information systems provide a continuous flow of information designed to assist decision making. Marketing-information systems differ from MARKET RESEARCH in the fact that they are continuously updated and utilized as opposed to being designed to address a specific problem. Marketing-information systems are or should be integrated into MANAGEMENT-information systems.

The marketing concept is a company-wide consumerorientation policy with the objective of achieving long-run commercial success. While this may seem like common sense, in fact the idea that a business exists to anticipate, meet, and exceed the needs of its customers is a relatively new concept in American business.

Marketing communications is the combination of personal and nonpersonal efforts companies use to inform and influence customers. Marketing communications, also referred to as integrated marketing communications, is a relatively new industry term created to emphasize the fact that promotion is more than just ADVERTISING and PERSONAL SELLING.

See DISTRIBUTION CHANNELS.

Market failure is a situation where the forces of SUPPLY and DEMAND in a market result in an outcome that is not efficient, not equitable, or not acceptable. The most common type of market failure occurs when a market does not include all the COSTS or benefits associated with the PRODUCTION or CONSUMPTION of a good.

Market concentration is the control of a large proportion of total sales by a small number of firms in an industry, leading to reduced COMPETITION. Economists and government regulators monitor market concentration closely.

Marginal analysis is an analytical method developed in which the impact of small economic changes is evaluated.