4 each party is free to accept or reject the exchange

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4. Each party is free to accept or reject the exchange offer. 5. Each party believes it is appropriate or desirable to deal with the other party.
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Exchange will not necessarily take place even if all these conditions exist. They are necessary for ex- change to be possible, but unless the buyer and seller reach an agreement, an exchange will not take place. PTS: 1 REF: 4 OBJ: 01-1 TOP: AACSB Communication | TB&E Model Strategy 4. What is the marketing concept? According to the marketing concept, what determines if a sale will ac- tually occur? ANS: The marketing concept is a simple and intuitively appealing philosophy. It states that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives. It is based on an understanding that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product. PTS: 1 REF: 5 OBJ: 01-2 TOP: AACSB Analytic | TB&E Model Strategy 5. Name and describe the four marketing management philosophies. ANS: PRODUCTION ORIENTATION. This orientation focuses firms on their internal production capabilit- ies rather than the desires and needs of the marketplace. SALES ORIENTATION. This orientation assumes that buyers will purchase more of any item if ag- gressive selling techniques are used. Again, this orientation does not address the needs and wants of the marketplace. MARKET ORIENTATION. This orientation is the foundation of contemporary marketing philosophy. It recognizes that a sale is dependent on the customer's decision to purchase a product and provides in- creased responsiveness to customer needs and wants. To market-oriented firms, marketing means building relationships with customers. SOCIETAL ORIENTATION. This orientation refines the marketing orientation by stating that the so- cial and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting the organization's objectives and preserving or enhancing both individuals' and society's long-term best interests. PTS: 1 REF: 4-6 OBJ: 01-2 TOP: AACSB Communication | TB&E Model Strategy 6. If a firm has a production orientation, what types of questions does management ask after assessing its resources? ANS: With a production orientation, management focuses on the internal capabilities of the firm. Manage- ment might ask: "What can we do best?", "What can engineering design?", and/or "What is economic- al and easy to produce with our equipment?" PTS: 1 REF: 4 OBJ: 01-2 TOP: AACSB Communication | TB&E Model Strategy
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7. An entrepreneur has set up a company to manufacture and market GPS systems for hunters. He has decided a sales orientation would best suit his new company. What are important considerations for this firm when it adopts this orientation? What are potential pitfalls of this orientation the owner needs to understand?
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