What Is Marketing?

Which one of these is the best definition of marketing?

• Selling products that have been produced by advertising and promotion

• Convincing customers that they really want to buy a firm's product rather than those of a competitor

• Finding out consumers wants, providing this information to the operations department and then persuading costumers to buy product

• Selling products at the lowest price possible with the aim of increasing sales and markets share

One of the main reasons why a business sets marketing objectives is to:

• provide a clear focus for the marketing department's strategies

• encourage consumers to purchase the product

• make sure that the firm achieves all of its corporate objectives

• ensure that the firms' cash flow is always positive

Which one of the following is an example of market oriented business decision?

• Selling only products that are environmentally friendly as all consumers are interested

• Increasing advertising spending on a product that is becoming less attractive to many consumers

• Reducing the price of a product that is experiencing increased competition from rival's new products

• basing new product decisions on market research data

Which one of the following is most likely to lead to an increase in the equilibrium price of crude oil?

• A huge new oil field is discovered

• Improved production efficiency reduces the cost of making cars

• Increasing publicity on the dangers of global warming

• Improved production efficiency allow much smaller oil fields to be developed

A small manufacturing business, company A, produces high quality leather steering wheels for makers of luxury sports cars. Which one of the following is the most likely effect on Company A of operating in a niche market?

• Sales will be higher than if Company A made steering wheels for family cars

• Advertising costs will be high as Company A has to advertise the steering wheels to consumers who buy cars

• Economies of scale will be limited as the production level is likely to be blow

• Selling prices to makers of luxury sports cars will be low as many large manufacturers of steering wheels will be competing in this market

Company B produces white T-shirts and sell them in street markets. If the company decided to use market segmentation and developed different styles and colors of T-shirts it would be likely to:

• sell fewer white T-shirts but sell more T-shirts of other designs at higher prices

• increase prices of white T-shirts as demand would increase

• reduce total production costs

• reduce its total sales but increase market share