AGEC 340 EXAM 1-SPRINGFIELD WITH
COMPLETE SOLUTIONS
What xdoes xthe xfollowing xstatement xmean xto xyou? x- xcorrect xanswers x-
*"Agribusiness xmanagement xis xabout xthe xintegration xof xscience xand xbusiness
xmanagement."
Combining xScience, xTechnology, xand xBusiness xManagement. xToday's xagri‐food
xsystem xis xthe xresult xof: x- xcorrect xanswers x-1. xThe xtransformation xof xscience
xinto xtechnology, xand
2. xThe xapplication xof xeffective xbusiness xmanagement
Evolution xof xthe xMarketing xSystem x- xcorrect xanswers x-1. xSpecialization xand xtrade
x
2. xCentral xmarkets
3. xMoney
4. xMiddlemen
The xRole xof xMarketing xin xthe xEconomy x- xcorrect xanswers x-Increases xthe xlevel
xof xconsumer xsatisfaction xin xthe xeconomy.
, Five xBarriers xto xConsumer xSatisfaction x- xcorrect xanswers x-1. xInability xto xtransfer
xownership x(ownership xseparation)
2. xProduct xis xnot xavailable xwhen xit xis xdesired x(time xseparation)
3. xProduct xis xnot xwhere xconsumers xneed xit x(space xseparation)
4. xProduct xis xnot xin xthe xform xconsumers xdesire x(value xseparation)
5. xLack xof xinformation xabout xthe xproduct x(information xseparation)
Marketing xfinds xways xto xovercome xthese xseparations.
The xNine xMarketing xFunctions x- xcorrect xanswers x-The xBuying xFunction xand xThe
xSelling xFunction
• xovercome xthe xseparation xof xownership xby xtransferring xlegal xtitle xof xthe xproduct
xfrom xthe xseller xto xthe xbuyer
The xStorage xFunction
• xovercomes xthe xseparation xof xtime xby xmaintaining xthe xproduct xin xgood xcondition
xbetween xproduction xand xfinal xsale.
The xTransportation xFunction
• xovercomes xthe xseparation xof xspace xby xmoving xthe xproduct xfrom xwhere xit xis
xproduced xto xwhere xconsumers xdesire xit.
xThe xProcessing xFunction
• xovercomes xvalue xseparation xby xtransforming xa xcommodity xinto xa xform xthat xhas
xgreater xvalue xto xthe xconsumer.
The xFacilitating xFunctions
• xmake xthe xsystem xwork xmore xefficiently xThe xGrades xand xStandards xFunction
•overcomes xinformation xseparation xby xproviding xa xclassification xsystem xthat
xrequires xadherence xto xspecific xdescriptions xof xcommodities xand xproducts.
The xFour xUtilities xof xMarketing x- xcorrect xanswers x-1. xForm xUtility-comes xfrom
xprocessing xthe xproduct xinto xa xform xmore xdesirable xto xconsumers.
Place xUtility-involves xtransporting xthe xproduct xto xa xlocation xdesired xby
xconsumers. x
Time xUtility-results xfrom xstoring xthe xproduct xuntil xthe xconsumer xneeds xit x
Possession xUtility-facilitates xthe xprocess xof xgaining xownership xof xthe xproduct xso
xbuyers xcan xuse xit xfully.
2. xThe xfunction xof xmarketing xin xour xeconomic xsystem xmakes xsure xthat
xconsumers xget xthe xproducts xthey xdesire.
This xmeans:
• xinsuring xthat xthe xright xproduct x(form xutility)
• xis xavailable xat xthe xright xplace x(place xutility)
• xat xthe xright xprice x(possession xutility)
• xat xthe xright xtime x(time xutility) xto xfully xsatisfy xthe xconsumer.
Long-Run xBusiness xSuccess xEquation x- xcorrect xanswers x-Long‐Run
Business x= xEfficiency x+ xEffectiveness x+ xEconomic xWell‐Being x
Success
COMPLETE SOLUTIONS
What xdoes xthe xfollowing xstatement xmean xto xyou? x- xcorrect xanswers x-
*"Agribusiness xmanagement xis xabout xthe xintegration xof xscience xand xbusiness
xmanagement."
Combining xScience, xTechnology, xand xBusiness xManagement. xToday's xagri‐food
xsystem xis xthe xresult xof: x- xcorrect xanswers x-1. xThe xtransformation xof xscience
xinto xtechnology, xand
2. xThe xapplication xof xeffective xbusiness xmanagement
Evolution xof xthe xMarketing xSystem x- xcorrect xanswers x-1. xSpecialization xand xtrade
x
2. xCentral xmarkets
3. xMoney
4. xMiddlemen
The xRole xof xMarketing xin xthe xEconomy x- xcorrect xanswers x-Increases xthe xlevel
xof xconsumer xsatisfaction xin xthe xeconomy.
, Five xBarriers xto xConsumer xSatisfaction x- xcorrect xanswers x-1. xInability xto xtransfer
xownership x(ownership xseparation)
2. xProduct xis xnot xavailable xwhen xit xis xdesired x(time xseparation)
3. xProduct xis xnot xwhere xconsumers xneed xit x(space xseparation)
4. xProduct xis xnot xin xthe xform xconsumers xdesire x(value xseparation)
5. xLack xof xinformation xabout xthe xproduct x(information xseparation)
Marketing xfinds xways xto xovercome xthese xseparations.
The xNine xMarketing xFunctions x- xcorrect xanswers x-The xBuying xFunction xand xThe
xSelling xFunction
• xovercome xthe xseparation xof xownership xby xtransferring xlegal xtitle xof xthe xproduct
xfrom xthe xseller xto xthe xbuyer
The xStorage xFunction
• xovercomes xthe xseparation xof xtime xby xmaintaining xthe xproduct xin xgood xcondition
xbetween xproduction xand xfinal xsale.
The xTransportation xFunction
• xovercomes xthe xseparation xof xspace xby xmoving xthe xproduct xfrom xwhere xit xis
xproduced xto xwhere xconsumers xdesire xit.
xThe xProcessing xFunction
• xovercomes xvalue xseparation xby xtransforming xa xcommodity xinto xa xform xthat xhas
xgreater xvalue xto xthe xconsumer.
The xFacilitating xFunctions
• xmake xthe xsystem xwork xmore xefficiently xThe xGrades xand xStandards xFunction
•overcomes xinformation xseparation xby xproviding xa xclassification xsystem xthat
xrequires xadherence xto xspecific xdescriptions xof xcommodities xand xproducts.
The xFour xUtilities xof xMarketing x- xcorrect xanswers x-1. xForm xUtility-comes xfrom
xprocessing xthe xproduct xinto xa xform xmore xdesirable xto xconsumers.
Place xUtility-involves xtransporting xthe xproduct xto xa xlocation xdesired xby
xconsumers. x
Time xUtility-results xfrom xstoring xthe xproduct xuntil xthe xconsumer xneeds xit x
Possession xUtility-facilitates xthe xprocess xof xgaining xownership xof xthe xproduct xso
xbuyers xcan xuse xit xfully.
2. xThe xfunction xof xmarketing xin xour xeconomic xsystem xmakes xsure xthat
xconsumers xget xthe xproducts xthey xdesire.
This xmeans:
• xinsuring xthat xthe xright xproduct x(form xutility)
• xis xavailable xat xthe xright xplace x(place xutility)
• xat xthe xright xprice x(possession xutility)
• xat xthe xright xtime x(time xutility) xto xfully xsatisfy xthe xconsumer.
Long-Run xBusiness xSuccess xEquation x- xcorrect xanswers x-Long‐Run
Business x= xEfficiency x+ xEffectiveness x+ xEconomic xWell‐Being x
Success
