Fundamentals Ch. 4 and 5

Marketers usually work by themselves and have little contact with others in the business.

• True
• False

Businesses that use the marketing concept first develop a product or service and then decide how it will be marketed.

• True
• False

Bringing a new product to the marketplace is expensive.

• True
• False

Most services are exchanged directly between the producer and the customer.

• True
• False

Nonprofit groups such as the Red Cross have little need for marketing services.

• True
• False

Marketing has changed in recent years in that it

• is no longer thought of as a critical investment.
• has expanded in scope from a few activities to a variety of activities.
• is generally handled as a problem-solving tool.
• has become independent from other business functions.

All of the following are common reasons for business failure except

• the business understands and uses the marketing concept.
• the business believes it knows what customers want.
• the business does not study the market.
• the business does not use any available marketing tools.

With the marketing concept, planning begins by

• deciding on a promotional strategy.
• identifying potential customers and their needs.
• developing a product.
• developing a marketing mix.

The first stage in the consumer decision-making process is to

• evaluate choices.
• recognize a need.
• make a decision.
• identify alternatives.

Which of these statements is true regarding how pricing decisions are made?

• Most businesses set prices the same or slightly higher than their major competitors.
• Production, marketing, and operating costs make up a very small percentage of the final price of most products, so the net profit available often is quite large.
• Prices must be calculated carefully, so that businesses make a profit after expenses are paid.
• Manufacturers generally communicate price through tags or stickers, and customers pay the price that is marked.