Chapter 1

Question 1

Production

Answer 1

Actually making goods or performing services

Question 2

Customer satisfaction

Answer 2

The extent to which a firm fulfills a customer’s needs, desires, and expectations

Question 3

Marketing encourages research and innovation - t

Answer 3

the development and spread of new ideas, goods, and services

Question 4

Marketing

Answer 4

The performance of activities that seek to accomplish an organizatoin’s objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from produce to customer or client

Question 5

Marketing should begin with:

Answer 5

potential customer needs, not with the production process

Question 6

Pure subsistence economy

Answer 6

When each family unit produces everything it consumes - there is no need to exchange goods and services and no marketing is involved

Question 7

Marketing does not occur unless:

Answer 7

two or more parties are willing to exchange something for something else

Question 8

Macro-marketing

Answer 8

A social process that directs an economy’s flow of goods and services from producers to consumers in a way that effectivey matches supply and demand and accomplishes the objectives of societyl

Question 9

Discrepencies marketing needs to overcome

Answer 9

Discrepancies of Quantity - Producers prefer to produce and sell in large quantities. Consumers prefer to buy and consume in small quantities

Discrepancies of Assortment - Producers specialize in producing a narrow assortment of goods and services. Consumers need a broad assortment

Question 10

Seperation marketing needs to overcome

Answer 10

Spatial Separation - producers tend to locate where it is economical to produce, while consumers are scattered

Separation in Time

Seperation of Information

Separation in Values

Separation of Ownership

Question 11

Economies of Scale

Answer 11

That as a company produces larger numbers of a particular product, the cost of each unit of the product goes down

Question 12

Universal functions of marketing

Answer 12

Buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information

Question 13

Buying function

Answer 13

Looking for and evaluating goods and services

Question 14

Selling function

Answer 14

Involves promoting the product

Includes the use of personal selling, advertising, and other direct ans mass selling methods

Question 15

Transporting function

Answer 15

Means the movement of goods from one place to another

Question 16

Storing function

Answer 16

Involves holding goods until customers need them

Question 17

Standardization and grading

Answer 17

Involve sorting products according to size and quality

Question 18

Financing

Answer 18

provides the necessary cash and credit to produce, transport, store, promote, sell and by products

Question 19

Risk taking

Answer 19

Bearing the uncertainties that are part of the marketing process

Question 20

Market information function

Answer 20

Involves the collection, analysis, and distribution of all the infomration needed to plan, carry out, and control marketing activities, whether in the firm’s own neighborhood or in a market overseas

Question 21

Intermediary

Answer 21

Someone who specializes in trade rather than production

Question 22

Collaborators

Answer 22

Firms that facilitate or provide one or more of the marketing functions other than buying or selling

Ex. advertising agencies, marketing research firms, indpendent product-testing laboratories, internet service providers

Question 23

E-Commerce

Answer 23

Refers to exchanges between individuals or organizations - and activties that facilitate these exchanges-based on applications of information technology

Question 24

Economic system

Answer 24

The way an economy organizes to use scarce resources to produce goods and services and distribute them for consumption by various people and groups in the society

Question 25

Command economy

Answer 25

Government officials decide what and how much is to be produced and distributed by whom, when, to whom, and why

*also called planned economies

Question 26

Market directed economy

Answer 26

The individual decisions of the many producers and consumers make the macro-level decisions for the whole economy

In a pure market-directed economy, consumers make a society’s production decisions when they make their choices in the marketplace.

They decide what is to be produced, through their dollar “votes”

Question 27

5 stages in marketing evolution

Answer 27

1. Simple trade era
2. Production era
3. Sales era
4. Marketing department era
5. Marketing company era

Question 28

Simple trade era

Answer 28

A time when families traded or sold their “surplus” output to local distributors

Question 29

Production era

Answer 29

A time when a company focuses on production of a few specific products - perhaps because few of these products are available in the market

Question 30

Sales era

Answer 30

A time when a company emphasizes selling because of increased competition

Question 31

Marketing department era

Answer 31

A time when all marketing activities are brought under the control of one department to improve short-run policy planning and to try to integrate the firm’s activities

Question 32

Marketing company era

Answer 32

A time when, in addition to short-run marketing planning, marketing people develop long-range plans — sometimes five or more years ahead—–and the whole company effort is guided by the marketing concept

Question 33

Marketing concept

Answer 33

Means that an organization aims all its efforts at satisfying its customers-at a profit

Question 34

Product orientation

Answer 34

Making whatever products are easy to produce and then trying to sell them

Question 35

Marketing orientation

Answer 35

Means trying to carry out the marketing concept

Instead of just trying to get customers to buy what the firm has produced, a marketing-oriented firm tries to offer customers what they need

Question 36

3 basic ideas are included in the definition of the marketing concept:

Answer 36

1. customer satisfaction
2. a total company effort
3. profit-not just sales - as an objective

Question 37

production orientation

Answer 37

A shorthand way to refer to this kind of narrow thinking-and lack of a central focus-in a business form

Question 38

A manager who adopts the marketing concept sees _________ as the path to profits

Answer 38

customer satisfaction

Question 39

customer value

Answer 39

the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits

Question 40

Micro-Marcro dilemma

Answer 40

What is “good” for some firms and consumers may not be good for society as a whole

Question 41

Social responsibility

Answer 41

A firm’s obligation to improve its positive effects on society and reduce its negative effects

Question 42

Marketing ethics

Answer 42

The moral standards that guide marketing decisions and actions