MKT 3301 Chapter 1 Questions

____ refers to exchanged and related activity between various parties by means of information technology.

E-commerce

The system by which a society is organized to produce goods and services and distribute them to the members of the society is called?

Economic system

Which of the following statements reflects the behavior of a firm practicing the marketing concept

Everyone in the organization thinks about how to satisfy customers

True or false: Management-oriented micro-marketing skills are only important to those who want to manage a major corporation.

False

Which of the following are reasons why marketing is important to economic growth and development?

Firms that make products customers want will likely create more jobs and hire more people. Marketing fosters innovation. Competition motivates firms to offer lower prices.

Which of the following are examples of collaborators?

Internet service providers product-testing laboratories marketing research firms

Which three of the following statements are true about a market-directed macro-marketing system?

It efficiently and effectively connects heterogeneous supply with heterogeneous demand The universal functions of marketing enhances its effectiveness It overcomes discrepancies and separation between producers and consumers

Which of the following is not true about marketing?

It should take control of production, accounting, and finance in order to be more effective.

____ refers to the social process that is concerned with matching supply and demand and meeting the needs of society by doing so.

Macro-marketing

Which of the following is a reason for firms to move from the production era into the sales era?

More production results in more competition

Which of the following are true statements about the marketing concept and nonprofit organizations?

Nonprofits face competition for the resources and support they need. Nonprofit organizations should have an agreed-upon measure of long-run success.

Which of the following are true with respect to exchange in marketing?

Sellers offer to exchange something that meets a need. Marketing involves a willingness of at least two parties to engage in exchange.

Which of the following are questions raised by the issue of social responsibility?

Should the Consumer Product Safety Commission recommend banning skiing and snowboarding because about 40 people are killed each year while doing it? Should a power company increase its use of wind power- which might cut its profits? Should Ford Motor Company produce safer but more expensive cars? Should Frito Lay produce snacks that are healthier but less tasty?

Match each stage of marketing evolution (on the left) with the statement (on the right) that relates to it. Simple trade era Production era Sales era Marketing department era Marketing company era

Simple trade era-A family farmer says: "I now sell my surplus crops to a local food store." Production era-A CEO says, "We specialize in a narrow product line, we make them cheap. Don't worry, they will sell." Sales era-The sales manager brags, "Our salespeople are the best in the business-we know the competition inside and out and we know how to bring in customers." Marketing department era-An advertising manager notes, "I'm now required to work with my boss to coordinate ad campaigns with market research, shipping, and the sales force. All this more work for me." Marketing company era-A marketing manager tells a new hire, "we develop long-term plans that get everyone in the company working together to satisfy customers and make profits.

Which of the following statements are true with respect to marketing an nonprofit organizations?

The marketing objective for a nonprofit organization may be to increase membership. The clients of a nonprofit organization may be consumers or business firms. Government agencies can be customers of nonprofit organizations.

True or false: The universal functions of marketing help overcome separations and discrepancies between the production and consumption sectors.

True

Which of the following might be considered benefits to a person going on a vacation to Hawaii?

a complimentary drink in the hotel lobby free transportation to and from the airport a nice swimming pool

The purpose of ______ is to match supply and demand among the producers and consumers of society as a whole.

a macro-marketing system

Discrepancies of ____ occurs because producers want to focus on making a narrow range of goods and services, whereas consumers prefer more variety.

assortment

The two goals of marketing exchanges are to

build an ongoing relationship with the customer determine future production needs

The ____ function concerns locating a product and judging its suitability.

buying

Standardization and Grading

categorizing goods according to specific characteristics

Which of the following are examples of how a firm can build relationships with customer value?

changing a production procedure to reduce the number of defective parts efforts by delivery personnel to increase customer satisfaction

Carry-all is a company that makes backpacks for students to use for carrying books. Which of the following activities would be part of the marketing for Carry-all?

choosing retailers that will sell the backpacks determining the prices and styles of backpacks sold by competing firms deciding on a promotion to inform potential customers about Carry-all backpacks analyzing student preferences for colors and styles

In which of the following industries would you be less likely to see films utilizing the marketing concept because they do not have much competition?

coal producers electric utilities chemical producers

An ___ is a marketing specialist who assists with certain marketing functions, such as advertising, transportation, or warehouse.

collaborator

Which of the following are marketing specialists that help with marketing functions other than buying or selling?

collaborators

In Cuba, government officials make decisions about what products to produce, how many of each to produce, and the level of prices to be charged. Cuba is an example of a(n) _____ economy

command

In some countries, government officials figure out how much corn and wheat to grow, how much bread to bake, and how much chicken and beef to make available in the market. This description fits a

command economy.

Marketing will be most successful if it

coordinates with production, accounting, and financial activities

The part of marketing that involves fulfilling the desires and expectations of customers is called

customer satisfaction.

Which one of the following is not an example of collaborators?

customers

Which of the following is the main reason why a firm would move into the marketing department era?

A company needs to coordinate the activities of its production, purchasing, shipping, and sales departments.

In a command economy, the production and distribution of goods and services is planned and set by

government officials

Standardizing and ____, which involves separating goods according to their size and quality, streamlines the selling and buying process

grading

In terms of ethics, most businesspeople take into account ____ when making decisions.

honesty fairness

Separation ____ refers to producers focusing on costs and competitive prices and consumers thinking about getting what they want at a price they can afford

in values

Marketing spurs ____, which means coming up with new ideas, goods, and services.

innovation

Which of the following would likely be considered costs, as opposed to benefits, to people purchasing a new car?

interest charges to finance the car waiting three weeks for delivery the price they pay

Which of the following is a market specialist whose role in the exchange process is to focus on trade?

intermediary

Storing

keeping goods until they are acquired by customers

The term production refers to which of the following?

making goods performing services

In a(n) ____-directed economy, the macro economy is the result of the multitude of individual decisions made by consumers and producers

market

The ____ information function involves the gathering and evaluation of data for marketing activities.

market

Some countries allow consumers and producers to make decisions about what to make and what to buy. This description fits a

market directed economy

The _____ function involves the gathering and evaluating of data for marketing activities

market information

In what type of economy do consumers and producers have the most freedom of choice?

market-directed economy

In general, a(n) ________ orientation is focused on offering customers what they need rather than getting customers to buy what is available for sale.

marketing

The activities in a firm that try to identify customer needs and focus the flow of goods or services in the firm in order to meet those needs is called ____.

marketing

In which era of marketing are all the activities of a company defined in terms of marketing based on both short-term and long-term plans?

marketing company era

The _____ is based on the idea that everything a company does should be based on satisfying the company's customer while still making a profit.

marketing concept

Which of the following is the market era in which a company creates a single department to assume command of all the company's market activities?

marketing department era

The numeric data that marketing managers use to evaluate how well a marketing program performed based on intended goals are called ____.

marketing metrics

Which of the following is not a criticism of marketing?

marketing reduces discrepancies of assortment

The ____ - _____ dilemma refers to the fact that what benefits specific companies and their customer maty not benefit all of society

micro macro

Which of the following would represent ways to increase value for Taco Bell customers?

offering better tasting meals lowering prices delivering orders faster

Which of the following describe a market-directed macro-marketing system?

overcomes discrepancies of assortment and quantity. relies on the universal marketing functions.

The separation that occurs when producers possess products they do not want consume and consumers want products they do not own is separation of ____.

ownership

Effective marketing should start with

potential customer needs

Which of the following are part of marketing?

predicting the styles that will appeal to customers analyzing customer needs, forecasting future sales determining what the competition charges for similar products

Margo's company decided to produce the infant-sized football jerseys because they knew they would sell easily. Margo's company is demonstrating the _____ era of marketing.

production

Refers specifically to manufacturing goods or performing services

production

The ____ era is a time when companies focus on the production of a few specific products perhaps in response to a lack of these products in the existing markets.

production

The _____ orientation refers to the managerial point of view that a company first makes the products that it wants to make and then the company needs to find the customer to buy the products.

production

Match the type of manager orientation (on the left) with a statement (on the right) that is characteristic of the orientation. production orientation marketing orientation

production orientation-"Customers are there to buy our products." marketing orientation-"Customers are there for us to discover and meet their needs."

Which of the following are the basic ideas central to the marketing concept?

profit (or another measure of long-term success) customer satisfaction total company effort

selling function

promoting to potential buyers

Which of the following is not an ethical value advocated in the American Marketing Association's Code of Ethics?

prosperity

The Smith family is totally self-sufficient and produces everything it consumes. The Smith family would be typical of a

pure subsistence economy

Discrepancies of ____ refers to the fact that it is economical for producers to sell in large amounts, but individual consumers use products in relatively small amounts.

quantity

Marketing helps overcome which of the following discrepancies?

quantity assortment

A company that strives to be have an overall positive effect on society is a company that practices social ____.

responsibility

The ____ function concerns facing the possible negative outcomes of the marketing process.

risk taking

In the ____ era, companies focus on selling their products in face of growing competition.

sales

Buying function

seeking and evaluating goods and services

The universal functions or marketing include which of the following?

selling storing market information

Which of the following are not types of separation that marketing helps overcome?

separation if collaborators intermediary separation macro separation

Which of the following refers to the problem in which producers do not know who needs what at what price, while consumers do not know what is available from whom at what price?

separation of information

In advanced economies, challenges to producer consumer exchange include which of the following?

separation of ownership separation of time

Which of the following are types of separation that marketing helps overcome?

separation of ownership spatial separation separation in time

Which of the following is not a role that the government performs in a market-directed economy?

setting output levels for producers

A craftsman who makes pottery for his family brings extra pieces that he has made to his general store for sale. this craftsman operates in the ____ era.

simple trade

The _______ _______ era was characterized by families or other small groups that might sell or trade to local distributors any extra goods that they might produce.

simple trade

The macro view of marketing sees the marketing as a(n) ____ process.

social

Which of the following headlines from a business newspaper would be about macro marketing topics

"Rail system in India Results in Faster Deliveries, Fresher Produce" "Faster Internet Opens Market for Video Downloads"

Place the components of the model that leads to building superior customer relationships in the order in which they are performed, as shown in the diagram, starting with "offer superior customer value" at the top.

1. offer superior customer value 2. attract customers 3. satisfy customers 4. retain customers 5. increase sales to customers

Which of the following are true about competition and customer value?

A firm that creates customer value that is superior to its competition is likely to retain customers A firm offering better values than its competition is likely to acquire heed customers marketing will be most

Which of the following statements are true with respect to marketing ethics?

A person's ethics emerge from that person's own values Marketing ethics guide marketing decisions Ethics can vary from one society to another

Which of the following statements about marketing functions are true?

All the universal functions of marketing must be performed well or the macro marketing system will be harmed the universal functions may be shared across multiple organizations

Which of the following reasons for studying marketing?

Because marketing costs can be an important part of a product's price, we should know what we are paying for. We are all consumers, so we should learn about buying and selling. Marketing helps ensure that the things we buy are available when we need them.

Which of the following are examples of the micro-macro dilemma?

Many motorcycle riders do not want to wear helmets, but their injuries may be paid for by all with higher health insurance premiums. Starbucks coffee cups keep the coffee hot but are not biodegradable or good for the environment.

Which of the following statements about marketing are correct?

Marketing builds relationships with customers. Marketing is more than just persuading customers.

Which of the following are reasons why marketing can be important for future employment?

Marketing can help in selling your ideas in a new job. Marketing can help in getting a job.

How should marketing and production work together?

Marketing helps production by determining which goods or services should be produced

Which of the following statements describing marketing is correct?

Marketing involves more than just selling and advertising.

Which of the following statements are true about the usefulness of studying marketing?

Marketing offers many interesting jobs Marketing concepts will help you learn to "sell" your ideas Marketing concepts can 'sell' yourself to a potential employer

Which of the following statements about a market-directed economy are true?

Prices are used to provide an indication of how much value consumers place on various goods and services. Except for goods and services deemed as good by society, consumers do not have to buy any particular products. The government sets rules for exchange.

Match each stage of marketing evolution (on the left) with the organization (on the right) that is characteristic of that stage. Simple trade era Production era Sales era Marketing department era Marketing company era

Simple trade era-In Somalia, the Kabongo family farm produces more than the family needs and it brings the excess to a market. Production era-FONE-APP creates apps for smart phones. The CEO is excited about a new product his designers have created even though it doesn't seem to fit a customer need. He claims, "We can make it, it is cool, it will sell." Sales era-Bright Lights, a distributor of lighting supplies, faces tough competition in its market, so it trains its salespeople about how it products are better than the competition. Marketing department era-The VP of marketing at MegaService is charged with getting greater coordination among the research, sales, advertising, and shipping groups in his firm. Marketing company era-The accounting firm Jones and Co. develops long-range plans that focus on getting the whole company to work together to satisfy customers and generate profits.

Which three of the following reflect how a restaurant adopting a marketing orientation would operate?

The restaurant makes what customers are interested in ordering. Customers needs determine how the restaurant operates. Restaurant management tries to identify customer needs.

Which of the following statements is true about the fairness and effectiveness of a macro-marketing system?

The system should be evaluated against a society's objectives

What are two reasons a producer or consumer would use an intermediary or collaborator?

To make an exchange less expensive To make an exchange easier

Marketing helps overcome which of the following discrepancies?

discrepancies of quantity discrepancies of assortment

The market information function includes which of the following?

distributing information analyzing information

What three things are measured when considering a company's triple bottom line?

economic results environmental impact social outcomes

Which of the following refers to the ability of a company to reduce the per unit cost of a product by producing greater quantities of the product?

economies of scale

Which of the following are activities of government in a market-directed economy?

enforcing contracts ensuring producers deliver a level of quality they promise creating regulations to govern trade

Marketing ideas apply to the activities of which of the following?

entrepreneurs charities political parties

Marketing ____ are the moral standards for making marketing decisions and actions.

ethics

The purpose of the _____ function is to supply the cash and credit a company needs for producing, transporting, storing, and selling products.

financing

market information fuction

gathering and handling the data needed for marketing activities

______ occurs because producers prefer to locate where it is necessary to produce, and consumers would rather buy where it is convenient and in many different places

spatial separation

The ____ function of marketing involves keeping manufactured goods until they are needed by customers.

storing

Transporting

taking goods from location to another

Risk taking

taking on the potential negative consequences of the marketing process

A command economy can work pretty well when

the economy has a relatively limited number of goods and services

Which of the following refers to the fact that there may be a conflict between what is beneficial to specific companies and society as a whole?

the micro-macro dilemma

An electric utility produces low-cost electricity but produces a great deal of air pollution in the process. This an example of

the micro-macro dilemma.

Place the five stages in marketing evolution in the proper order from the earliest to latest (with the earliest stage at the top) the production era the marketing department era the marketing company era the simple trade era the sales era

the simple trade era the production era the sales era the marketing department era the marketing company era

In a market-directed economy, the macro level decisions of the economic system are

the sum of individual decisions by producers and consumers

Together, _______ help to overcome separations and discrepancies between producers and consumers

the universal functions of marketing

Which of the following statements about Internet-based intermediaries are accurate?

they can help cut costs of marketing functions they have increase macro marketing system effectiveness they include firms such as amazon.com and paypal

Separation in ____ occurs when consumers may not want to consume goods and services when producers would prefer to produce them.

time

In a market-directed economy, which of the following describes the role of the price of goods and services?

to act as a rough measure of value

Which of the following is a basic function of an economic system?

to produce goods and services from the limited resources available to a society

The ____ function of marketing refers to taking goods from one location to another.

transportaion

Match the marketing function (on the left) with the examples from the apple market (on the right). transporting market information function selling function standardization and grading buying function

transporting-Trucks move apples from farm to marker market information function-Market research determines which apples are preferred by customers selling function-Signs in stores tell customers about how each apple tastes. standardization and grading-Apples are divided between those that look good and are sent to stores and bruised apples which are used to make pies and apple sauce. buying function-Consumers look through different types of apples at the grocery store.

Customers ____ refers to the relative benefit that a customer believes he or she gets from a product or service compares to the cost of obtaining it.

value