Deck 1: Marketings Value to Consumers, Firms, and Society

Question 1

From a micro view,marketing activities are performed only by profit-oriented organizations.

Answer 1

False
Explanation: Marketing applies to both profit and nonprofit organizations.

Question 2

Marketing can be viewed as a social process,but not as a set of activities performed by organizations.

Answer 2

False
Explanation: We can view marketing in two ways: from a micro view as a set of activities performed by organizations and from a macro view as a social process.

Question 3

Marketing encourages the development and spread of new ideas,goods,and services.

Answer 3

True
Explanation: Marketing encourages innovation,which is the development and spread of new ideas,goods,and services.

Question 4

Marketing is basically selling and advertising.

Question 5

Marketing is the performance of activities that seek to accomplish an organization's objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client.

Question 6

Marketing can be viewed as a set of activities performed by organizations,but not as a social process.

Question 7

Marketing plays an essential role in creating customer satisfaction.

Question 8

Estimating what price consumers are willing to pay for a product and assessing whether the firm can make a profit selling at that price is an example of a production activity.

Question 9

Marketing is both a set of activities performed by organizations and a social process.

Question 10

Customer satisfaction is the extent to which a firm fulfills a consumer's needs,desires,and expectations.

Question 11

The micro view of marketing sees it as the performance of activities that seek to accomplish an organization's objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client.

Question 12

Marketing,in the literal sense,means "selling" or "advertising."

Question 13

If a firm produces the right goods or services,marketing has little role to play in creating customer satisfaction.

Question 14

Marketing only applies to profit organizations.

Question 15

Marketing can provide needed direction for production and help make sure that the right goods and services find their way to interested consumers.

Question 16

Making goods or performing services is called marketing.

Question 17

Marketing discourages the development and spread of new ideas,goods,and services.

Question 18

In advanced economies,marketing costs only about 10 percent of each consumer's dollar.

Question 19

The micro view of marketing is mainly concerned with the activities performed by organizations.

Question 20

In advanced economies,it is estimated that marketing costs about 50 cents of each consumer's dollar.

Question 21

Macro-marketing emphasizes the activities of individual organizations.

Question 22

Effective marketing in an advanced economy is difficult because producers and consumers are often separated in several ways.

Question 23

Marketing should begin with the production process.

Question 24

The term "economies of scale" means that as a company produces larger numbers of a particular product,the cost for each unit of the product goes down.

Question 25

Marketing does not occur unless there are two or more parties who want to exchange something for something else.

Question 26

A marketing exchange is a single transaction between a firm and a customer,nothing more.

Question 27

Marketing only applies to for-profit organizations.

Question 28

Achieving effective marketing in an advanced economy is simplified by the fact that producers are separated from consumers in only two ways: time and space.

Question 29

"Economies of scale" prevent a company from taking advantage of mass production.

Question 30

Macro-marketing is concerned with examining the relationship of the entire production and distribution system.

Question 31

Marketing activities should be of no interest to a nonprofit organization.

Question 32

Macro-marketing emphasizes how the whole system works,rather than the activities of individual organizations.

Question 33

Macro-marketing is a set of activities that direct an economy's flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society.

Question 34

Production,not marketing,should determine what products are to be made.

Question 35

In a pure subsistence economy-when each family unit produces everything it consumes-no marketing is involved.

Question 36

Macro-marketing emphasizes how the whole marketing system works.

Question 37

Marketing activities should begin with potential customer needs,not with the production process.

Question 38

An effective macro-marketing system matches heterogeneous supply with heterogeneous demand.

Question 39

Marketing is concerned with individual transactions rather than with building ongoing relationships with customers,because that is the job of people in the public relations department.

Question 40

Micro-marketing is a social process that directs an economy's flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes society's objectives.

Question 41

E-commerce refers to exchanges between individuals,but not exchanges between organizations.

Question 42

The "universal functions of marketing" consist only of buying,selling,transporting,and storing.

Question 43

An effective macro-marketing system overcomes discrepancies of quantity and discrepancies of assortment by using the universal functions of marketing.

Question 44

Intermediaries specialize in trade and production.

Question 45

It is chiefly in our micro-marketing system,not macro-marketing system,that developments in e-commerce have significantly increased efficiency and effectiveness.

Question 46

In an advanced economy,all goods and services can be produced with mass production and its economies of scale.

Question 47

Marketing specialists such as intermediaries and collaborators hinder the exchange process between producers and consumers.

Question 48

"Economies of scale" means that as a company produces more of a product,the total cost of production goes up.

Question 49

The universal functions of marketing include transporting and storing.

Question 50

The advantages of working with intermediaries increase as the number of producers and customers,their distance apart,and the number and variety of competing products increase.

Question 51

Marketing functions are performed by producers,consumers,and a variety of marketing specialists.

Question 52

While intermediaries facilitate exchange,their cost makes the whole macro-marketing system less efficient.

Question 53

"Economies of scale" means that as a company produces more of a product,the cost of each unit produced goes down.

Question 54

E-commerce refers to exchanges between individuals and organizations-and the activities that facilitate those exchanges-based on applications of information technology.

Question 55

E-commerce refers to exchanges between organizations,but not exchanges between individuals.

Question 56

The universal functions of marketing are performed in the same way in all nations and economic systems.

Question 57

Marketing collaborators are any firms that provide the marketing functions of buying and selling.

Question 58

Compared to other innovations,firms have been relatively slow to adopt e-commerce.

Question 59

E-commerce refers to exchanges between organizations (not individuals)and the activities that facilitate those exchanges.

Question 60

Both mass production and effective marketing are needed to satisfy the economic needs of an advanced economy.

Question 61

During the production era a company focuses on production because few products are available in the market.

Question 62

In a market-directed economy,government officials decide what and how much is to be produced and distributed by whom,when,to whom,and why.

Question 63

Not all societies need an economic system.

Question 64

In a command economy,producers generally have little choice about what goods and services to produce.

Question 65

Responsibility for performing the marketing functions can be shifted and shared in a variety of ways,but no function can be completely eliminated.

Question 66

Only industrial nations need an economic system to decide what and how much is to be produced and distributed by whom,when,to whom,and why.

Question 67

In a market-directed economy,profit is guaranteed.

Question 68

In a market-directed economy,price is a rough measure of how society values particular goods and services.

Question 69

The American economy and most other Western economies are completely market-directed.

Question 70

During the sales era,the firm tries to improve short-run marketing policy planning to tie together its activities.

Question 71

In a command economy,the individual decisions of many producers and consumers make the macro-level decisions for the whole economy.

Question 72

In a market-directed economy,consumers enjoy complete freedom of choice.

Question 73

An economic system is the way an economy organizes to use scarce resources to produce goods and services and distribute them for consumption among various people and groups in the society.

Question 74

The marketing department era is a time when all marketing activities are brought under the control of one department.

Question 75

From the Industrial Revolution until the 1920s,most companies were in the production era.

Question 76

The simple trade era was a time when families traded or sold their "surplus" output to local distributors who resold these goods to other consumers or distant distributors.

Question 77

Market-directed economies tend to provide consumers with greater freedom of choice than command economies.

Question 78

Most Western economies are completely market-directed.

Question 79

The American economy is entirely market-directed.

Question 80

Marketing departments are usually formed when firms go from the production era to the sales era.