Unit 2

Question 1

marketing functions

Answer 1

buying, selling, transporting, storing, financing, market research, and risk bearing

Question 2

buying

Answer 2

the act of selecting and obtaining the kind, quality, and quantity of goods and services that are needed or wanted

Question 3

selling

Answer 3

the act of seeking customers and making goods or services available to those customers

Question 4

transporting

Answer 4

the movement of goods from where they are produced or stored to where they are sold

Question 5

storing

Answer 5

the means of stocking goods for future use

Question 6

financing

Answer 6

granting credit to customers so they can buy a company’s goods or services

Question 7

consumer credit

Answer 7

allowing people to get goods or services now and pay for them later

Question 8

trade credit

Answer 8

credit extended from one business to another

Question 9

market research

Answer 9

the process of gathering and analyzing data to help make

marketing decisions

Question 10

focus group

Answer 10

a group of people who are brought together to talk about a product or service that is being provided by a business

Question 11

risk bearing

Answer 11

a means of being prepared for the loss that a business may incur

Question 12

target market

Answer 12

a specific group of customers that a company wants to serve

Question 13

product

Answer 13

all the decisions involved in making the right product for the company’s target market

Question 14

price

Answer 14

the decisions and methods used to determine profitable and

justified prices for goods and services

Question 15

place

Answer 15

the decisions and activities used in getting the right product to the right destination

Question 16

promotion

Answer 16

the company’s communication with its various target markets

Question 17

legal environment

Answer 17

an environment designed to maintain a competitive marketing system

Question 18

competitive

environment

Answer 18

the interaction that occurs in the marketplace

Question 19

pure competition

Answer 19

a type of competition that exists when many companies in an industry make the same or very similar products and no company commands a very large market share

Question 20

homogeneous product

Answer 20

a good that the consumer sees as basically the same no matter who produces it, so they seek out the lowest price

Question 21

monopolistic competition

Answer 21

when a company with many potential competitors attempts to develop a different marketing strategy to establish its own market share

Question 22

heterogenous product

Answer 22

a good the consumer sees as different from other products

Question 23

oligopoly

Answer 23

when only the largest companies sell the majority of a

particular good

Question 24

monopoly

Answer 24

when one company controls an entire market or industry

Question 25

societal environment

Answer 25

a marketer’s relationship with society

Question 26

economics

Answer 26

the study of how a society uses its scarce resources to meet the needs of its members

Question 27

prosperity

Answer 27

occurs when unemployment rates are very low and income for the average person is high

Question 28

recession

Answer 28

a drop in productivity that lasts for a period of six months or longer

Question 29

depression

Answer 29

a time in which economic circumstances are more severe than a recession and last for a longer period of time

Question 30

recovery

Answer 30

when the economy is moving from a recession to prosperity

Question 31

inflation

Answer 31

a period of generally rising prices

Question 32

stagflation

Answer 32

when the economy simultaneously has high unemployment rates and rising price levels