A Fertilizer Company Would Be Considered a Part of the ______Sector of the Food Industry

 A fertilizer company would be considered a part of the ______sector of the food industry.

 The behavioral approach is one of the three approaches to the study of food markets. The ______approach answers the “what” and the _____ approach answers the “who” of marketing.

Functional, institutional

 The marketing function adds “cost” as well as ______to the farm products.

 You are a U.S. importer/exporter trading with France. The current exchange rate of Franc/dollar is 6.9 to 1. The exchange rate has just gone to 7.7 to 1. Who now has the advantage, the U.S. importer or the U.S. exporter?

Importer

 A food with a negative sloping Engel curve would be considered a(an) ______good.

Inferior

 A strategy of maximizing market share for the growing number of competitors and early adopter customers occurs in the ______- stage of the product life cycle.

Growth

 Risk is defined as the probability of ______due to uncontrollable events.

 A trade surplus occurs when ______exceeds ______.

Exports, imports

 The marketing technique of developing separate products and marketing programs to appeal to different consumer classes.

Market segmentation

 Related grocery stores are considered to be a part of a chain when the number of related stores equals or exceeds ______.

 Food ______are caused by price floors while food ______(shortages/surpluses) are caused by price ceilings. Surplus, shortage

 Food retailers would select products with ______(elastic/inelastic) demands if the point were to increase total revenue with a higher price.

Inelastic

 If the typical farmers of a commodity like corn increased output by 10% as a result of a new seed variety, farm corn prices would ______by more than 10%.

Decrease

 The farmer’s demand for corn and hay to feed dairy cows is a ______demand resulting from the consumers demand for milk & milk products.

Derived

 The market structure where farmers or ranchers find themselves facing only one buyer for their commodity or product is called ______.

Monopsony

 For the long run, zero economic profits are associated with normal accounting profits for which industry market structure?

Competitive market

 A ______is a measurement used to predict the effect on prices for a given change in agricultural output (% change price / % change quantity). This measurement is important in the short run.

Price flexibility

 The type of integration represented when one food processor buys out a competitor is called ______.

Horizontal integration

 ______(centralized/decentralized) markets lead to operational efficiency while ______(centralized/decentralized) markets lead to pricing efficiency.

Decentralized, centralized

 ______costs are the largest component cost of the food marketing bill.

Labor  The supply elasticity for a consumer good is 1.35 and the demand elasticity for the same good in absolute terms is 0.58. If the government places and excise tax upon this good, which group bears more of the tax burden, the producer or the consumer?

Consumer

 A rancher is interested in capturing some of the profits from the functions performed in the marketing channel beyond the farm gate for a commodity she produces. She might consider ______integration.

Vertical

 The difference on what the consumer pays for food and what the farmer receives is called the ______.

Marketing Margin

 Demand consisting of wants and needs backed by the ability to pay.

Effective demand

 The reason for agriculture’s “small crop reward, large crop penalty.”

Inelastic demand

 Product branding helps to address the problem faced by food processors and food manufacturers who face a highly ______(inelastic, elastic) demand curve.

Elastic

 The 4 strategies of the marketing mix are product, place price, and ______. Promotion

 Marketing ______are producer controlled organizations with government monopoly power over a broad range of farm products and are common in Canada and Australia.

Boards

 The ability to advantageously influence markets, market behavior, or market results is known as ______.

Market power

 The requirement that turkey pie must contain at least 14% cooked turkey meat is an example of a ______in the food industry.

USDA standard  Farmers who produce the ____ (lower/higher) quality products would gain from selling on a graded basis at the expense of those producing the ______(lower/higher) quality products.

Higher, lower

 The transportation methods of _____ and _____ have the characteristics of being able to handle large volumes at low cost.

Rail, water

 Transportation contributes to ______utility.

 The contribution of transportation to a food’s final monetary value varies by the distance it is shipped and the food product characteristics of ______and ______.

Perishability and bulkness

 Of the 4 modes of transportation to a food’s final monetary value varies by the distance it is shipped and the food product characteristics of ______and ______.

 Cooperatives return earnings to its member/owners by way of a ______. Patronage refund

 Sunkist orange juice is an example of a ______cooperative.

Processing, marketing

 The difference between the futures price and the cash price is known as the basis. A farmer who has initiated a pre-harvest or selling hedge would prefer that the basis _____.

Narrow

 A ______is one that attempts to anticipate and profit from future price movements.

Speculator

 An exporter that has sold soybean oil for future delivery and wanted to use the futures market to establish a hedge would probably use a ______hedge.

Sell, short  In the futures market, a bear is a trader that thinks prices will ______, while a bull thinks prices will ______.

Fall, rise

 A feedlot that wants to limit the upside risk of feed costs without losing the ability to buy cheaper feed would enter into a ______option.

 A cooperative that helps farmers reduce input costs for inputs such as fuel, fertilizer, and chemicals is called a ______cooperative.

Purchasing cooperative

 Name the four types of Agricultural cooperatives.

Processing, marketing, purchasing, service

* When a firm analyzes its objectives and performance, availability of resources, structure and culture, it is examining its:

Internal Environment

* A set of firms competing in a specific market are called

An industry

* What represents the largest segment of the dollar spent for food>

Labor inputs

* What are the 4 Ps of Marketing

Price Product Place Promotion

* What is the name for an item that a business sells at a loss to attract more sales.

Loss leader

* What is the name for the group of people you are trying to reach through marketing?

Target market

* Sorting a product into uniform categories according to quality standards is referred to as what?

Grading

* Point in the product cycle beyond which sales decline. Market saturation

* The difference between what the consumer pays for food and what the farmer receives is the ______.

Marketing margin

* What is a market structure in which there is only one buyer of a given product?

Monopsony

* The small firms in an industry that provide competition for the dominant core firms are:

Competitive fringe

* This is created to make customers and prospects respond or buy your product quickly.

Urgency

* Reason that prospects should do business with you instead of with a competitor that sells similar products or services.

Competitive advantage

* What are the 4 P's of marketing?

Product, Pricing, Place, and Promotion

* ______increases consumer loyalty, encourages repeat business, allows easier introduction of new products, better corporate image, higher sales/profits.

Branding

* ______help solve the quantity-assortment problem.

Intermiediaries

* A price ______is set so that price may never fall below this minimum.

Floor.

* It is better to trade when countries hold the ______in production of products, such that each country specifying production increases world supply.

Competitive Advantage

* The curve the depicts the development, rise, and decline of a product is called the...... ?

Life cycle

* This website focuses on ______trading. Pollution

* The two option of traders are ______and ______.

Point and non-point

* To view cash/credit transactions, select the ______tab.

Balance Sheet

* In NutrientNet, point source polluters must obtain sufficient credits by either ______or implementing ______practices.

Trading; treatment

* In NutrientNet, non-point source polluters must hold a _____ balance greater than or equal to zero at the end of the trading period.

Credit

* As a non-point source polluter should wait until they have ______credits before committing to a BMP.

* Dividing a market into different income groups

Income segmentation

* What is a distribution channel?

A set of interdependent organizations involved in the process of making a product or service available to the consumer.

* What is people differentiation?

Hiring and training better people than the competition

* Name the 5 stages in the Marketing system.

Production, Assembly, Processing, wholesaling, Retailing, Consumption

* What are the parts of a marco view of marketing?

Functional approach, Institutional approach, behavioral systems approach

* Name 3 marketing functions

Transportation, Storage, Processiong, Buying/Selling, Standardization, Market Intelligence, Financing/Risk Bearing

* Name the four P's of marketing

Product, Price, Place, Promotion

* Who created the fundamental theory of business and marketing, the Five Forces Model?

Michael Porter of Harvard Business School

* What would be the pricing strategy during the declination stage of the product life cycle?

Cut Prices

* ______refers to an individual firm associated with the production of agricultural products.

Agribusiness

* The small firms in an industry that provide competition for the dominant core firms are called the ______.

Competitive fringe

* This is unpaid mass selling

Publicity

* To be blinded by familiarity when marketing a product

Marketing myopia

* User status, usage rate, and loyalty status are characteristics of a ______target market.

Behavioral

* Name two sales promotions on the wholesale level

Price deals, sales contests, gifts, promotional allowances

* List the characteristics of the growth stage of the product life cycle

Average cost per customer, rising profits, early adopters, growing number

* A food with a negative sloping Engel curve would be considered a (an) ______good.

Inferior

* The difference on what the consumer pays for food and what the farmer receives is called the ______. Marketing Margin

* Name the four types of Agricultural cooperatives.

Processing, marketing, purchasing, service

* What are the four P’s of marketing?

Product, price, promotion, place

* How does a cooperative return benefits to its members?

Patronage refunds or dividends

*Which curve depicts the development, rise and decline of a given product?

Product Life Cycle *If Frito Lay's marketing department collects data from several government agencies as a part of its analysis of the external environment, they are using a______.

Secondary Data Source

* General qualitative statements that indicate desired accomplishments or outcomes

Marketing Goals

* Overall the total gross sales of all US food retailing firms (both store and food services) are approaching______.

One Trillion Dollars

* The change in consumption due to the increase or decrease in a consumers purchasing power is

income effect

* What do you call the end of the food chain where some price setting occurs?

terminal markets

* Name 3 of the 5 barriers to market entry.

capital requirements, degree of product differentiation, patents, secret processes, government licensing

* ______states that marginal utility will decline as more of a good or service is consumed during a specified period of time.

Law of Dimishing Marginal Utility

* ______elasticity of demand tells us if products are luxury items or inferior goods. Income Elasticity

* Please list 3 of the 5 Barriers to Market Entry.

Capital Requirements, degrees of product differentiation, Patents, Secret Processes, Government Licensing.

* Sorting a product into uniform categories according to quality standards is referred to as what?

Grading

* What are the 4 Ps of Marketing

Price Product Place Promotion

______increases consumer loyalty, encourages repeat business, allows easier introduction of new products, better corporate image, higher sales/profits.

Branding

* Fluctuating prices reflect the interdependence of several factors. Name two.

Production, Transportation, Storage, Processing, Merchandising, or Consumption

* What model shows how prices could be in continual disequilibrium?

Cobweb Model

* For individual items, the difference between consumer’s price and farm value of the ingredients is referred to as the ______.

Price Spread * ______states that as disposable income increases the % of income spent on food decreases.

Engel's Law

* A change in technology and workers wages has what kind of effect?

Shifts the supply curve

* Name 3 characteristics of atomistic competition

Large number of sellers, homogeneous product, easy entry/exit, horizontal demand curves (price takers), compete on cost, timing of sales is their market strategy

* What refers to the limitations on a consumer's income?

Budget constraint

* What are three of the six marketing functions?

Marketing Research, Buying and Selling, Credit (Finance), Transportation and Storage, Risk Management, Standardization

* A market with a large number of sellers, homogenous product, and a horizontal demand curve is said to be what kind of market?

Atomistic market

* As disposable income increases, percent of income spent for food decreases.

ENGLE'S LAW

* Name two of the three things that can cause the Supply Curve to shift:

CHANGE IN: PRICE OF INPUTS, TECHNOLOGY, AND/OR WORKER'S WAGES

* Responsible for developing the idea of Absolute Advantage: ADAM SMITH

* Responsible for developing the idea of Comparative Advantage:

DAVID RICARDO

* Income elasticity of demand determines if a good is ______or ______.

Inferior, luxury

* Agriculture comprises what percentage of the national employment?

17.4 percent

* In 1996 sales terms, what are the top two components of the food system?

Retail food and food service

* ______is the price specified in an option at which futures contracts can be bought or sold.

Strike Price

* A market structure in which there is only one buyer.

Monopsony

* Level of sales a firm can expect to receive from a target market.

Sales Forecast

* If a country can produce a good at a lower cost relative to another country they are said to have a ______in that good.

Comparative Advantage

* The study of how scare resources are allocated among a group.

Economics

* A business owned and operated by an individual person that makes them solely responsible for all actions of the company.

Sole Proprietorship

* Name the components of the Food Marketing System

farm Supply, farms, 1st handler, processor, distributor, retailer

* What is grading, when referring to commodities?

dividing of a commodity into different quality classes

* What are slotting allowances?

lump sum payments made to retailers by manufacturers in order to stock a new product

* The satisfaction one derives from consumption of a good or service

Utility

* A market system with only one buyer

Monopsony

* The Capper-Volstead Act of 1922 was significant to agricultural cooperatives how

It exempted them from federal anti-trust regulation