Chapter 1

To act as a rough measure of value

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 -To prevent inflation in the economy -To locate potential competitive resources -To operate as a rough measure of a producing company's cost

Market-directed economy

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

Marketing company

In the _____ era the principles of marketing underlie all the operations of a firm. -Production -Marketing department -Marketing company -Industrial

Sales

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

Production

In the _____ era, individuals producers need to make only a few types of products because there are few if any other sources for the products. -Industrial -Sales -Simple trade -Production

Market-directed economy

In what type of economy do consumers and producers have the most freedom of choice? -Planned economy -Producer-led economy -Market-directed economy -Command economy

Intermediaries (intermediary)

Retailers and wholesalers are two kinds of _____, marketing specialists who play a role in trade rather than production. -Transporters -Intermediaries -Value producers -Commerce specialists

Universal functions of marketing

The processes of buying, selling, shipping, storing, financing, and risk-taking are components within the _____ functions of marketing.

responsibility

A company that strives to be have an overall positive effect on society is a company that practices social _____. -Profit -Causation -Responsibility -Satisfaction

Simple trade

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 -Marketing department -Production -Subsistence

-Political parties -Charities -Entrepreneurs

Marketing ideas are used to promote which of the following? -Political parties -Charities -Entrepreneurs -Assembly lines

Pure subsistence economy

The Smith family is totally self-sufficient and produces everything it consumes. The Smith family would be typical of a -Macro-marketing economy -Pure subsistence economy -Capitalist environment -Communist society

-A new father fills out a form to create his last will and testament at an online site -A mother locates and buys a hard-to-find child's toy on an online auction website -A search engine helps a customer find information about a Hitachi brand high-definition TV

Which of the following are examples of e-commerce? -A student buys a used but comfortable chair at a neighborhood yard sale -A businesswoman visits a shoe store where she tries on and buys new dress shoes -A new father fills out a form to create his last will and testament at an online site -A mother locates and buys a hard-to-find child's toy on an online auction website -A search engine helps a customer find information about a Hitachi brand high-definition TV

Production

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.

Coordinates with production, accounting, and financial activities

Marketing will be most successful if it -Coordinates with production, accounting, and financial activities -Takes direction from production, accounting and other financial activities -Allies with accounting to control production and financial activities -Ignores production, accounting, and financial activities

-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 exited about a new product his designers have created even though it doesnt 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 its 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.

Match each stage of marketing evolution (on the left) with the organization (on the right) that is characteristic of that stage

-Transporting: Trucks move apples from farm to market. -Marketing 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.

Match the marketing function (on the left) with the examples from the apple market (on the right).

1. The simple trade era 2. The production era 3. The sales era 4. The marketing department era 5. The marketing company era

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

Marketing department

The _____ _____ era describes a stage when a single department in a firm takes over the firm's marketing activities in an effort to improve marketing activities.

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.

Risk taking

The _____ function concerns facing the possible negative outcomes of marketing process. -Storing -Buying -Risk taking -Financing

Storing function

The _____ function of marketing involves keeping manufactured good until they are needed by customers.

Transporting function

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

Market information function

The _____ information function involves the gathering and evaluating of data for marketing activities. -Market -Grading -Buying -Product

Micro-macro dilemma

The _____-_____ dilemma refers to the fact that what benefits specific companies and their customers may not benefit all of society.

-Build an ongoing relationship with the customer -Determine future production needs

The two goals of marketing exchanges are to -Build an ongoing relationship with the customer -Determine future production needs -Focus on single transactions -Predict transportation needs for future sales.

-To make an exchange less expensive -To make an exchange easier

What are two reasons a producer or consumer would use an intermediary or collaborator? -To make an exchange less expensive -To contribute to a higher standard of living -To make an exchange easier -to foster homogeneity in demand

-An online camping store that provides customer reviews of backpacks -A retail electronics store with a knowledgeable staff -A grocery store providing many different foods in one place

Which of the following are examples of an intermediary that facilitates exchange? -An online camping store that provides customer reviews of backpacks -An advertising agency designing eye-catching and creative advertising -A retail electronics store with a knowledgeable staff -A grocery store providing many different foods in one place -A bank offering financing to a business

-Marketing research firms -Internet service providers -Product-testing laboratories

Which of the following are examples of collaborators? -Contract manufactures -Marketing research firms -Internet service providers -Product-testing laboratories

-An online bookseller -eBay's auction websites

Which of the following are examples of e-commerce? -A university library -A corner market -An online bookseller -eBay's auction websites

Collaborators

Which of the following are marketing specialists that help with marketing functions other than buying or selling? -Functionaries -Collaborators -Investors -Partners

Marketing ehtics

Which of the following are the moral standards for marketing activities? -Marketing orientations -Social norms -Marketing ethics -Macro-behavioral norms

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

Which of the following are true with respect to exchange in marketing? (Check all that apply) -Marketing involves a willingness of at least two parties to engage in exchange. -A customer must exchange money for an exchange to occur. -Marketing can occur with one party. -Sellers offer to exchange something that meets a need.

More production results in more competition

Which of the following is a reason for firms to move from the production era into the sales era? -The need for coordination inside a company increases -More production results in more competition -The company is based on services not products -Government regulations become less restrictive

Setting output levels for producers

Which of the following is not a role that government and governing agencies perform in a market-directed economy? -Creating laws for trade -Enforcing contracts -Setting interest rates -Setting output levels for producers

Customers

Which of the following is not an example of collaborators? -Savings and loans -Marketing research firms -Public relations companies -Customers

Financing

Which of the following is the universal marketing function that provides the cash and credit needed for carrying out the other marketing functions? -Market information -Selling -Financing -Risk taking

Buying

Which of the following marketing functions involves seeking and assessing goods and services? -Risk taking -Buying -Intermediary -Selling

-Marketing functions can be shared among firms in various ways

Which of the following statements about the marketing function from a micro viewpoint is true? -Marketing functions can be shared among firms in various ways -Most of the marketing functions can be eliminated for a majority of firms -All the functions must be performed at each level of production for all goods and services -All firms must carry out every function

The system should be evaluated against a society's objectives

Which of the following statements is true about the fairness and effectiveness of a macro-marketing system? -Effectiveness primarily depends on the ability to address discrepancies of assortment -The system should be evaluated against a society's objectives -Evaluating fairness is universal across cultures and countries -The fairness and effectiveness depend entirely on a country's level of economic develpment

-Relies on the universal marketing functions -Overcomes discrepancies of assortment and quantity

Which two of the following describe a market-directed macro-marketing system? -Relies on the universal marketing functions -Connects a homogeneous set of producers to a homogeneous set of customers -Overcomes discrepancies of assortment and quantity -includes no role for government

Standardization and grading

_____ involves sorting goods according to their characteristics. (Click the answer you think is right) -Standardization and grading -Holding and storing -Risk taking and financing -Buying and selling