Deck 2: The Marketing Environment

Question 1

In order to make sense of the external environment we use a framework known as PESTLE. PESTLE stands for the:

A) Production, Economic, Social, Technological, Legal, and Ecological environments.
B) Political, Economic, Social, Technological, Legal, and Ecological environments.
C) Political, Economic, Systematic, Territorial, Legal, and Ecological environments.
D) Psychological, Economic, Sociological, Technological, Lifestyle, and Ecological environments.

Answer 1

B

Question 2

Sometimes organizations hire special industry lobbyists that have a good understanding and specialist knowledge of political and legal affairs. These specialists are often hired for which of the following reasons?

A) Trueo represent the organization to government decision-makers.
B) To provide strategic advice to the organization on how to design their campaigns.
C) To provide administrative support for the organizations on the changing political and legal environment.
D) All of the above options are correct.

Answer 2

D

Question 3

Analysis of the performance environment has concentrated on the nature and characteristics of a firm's ______________.

A) competitive resources
B) competitive environment
C) competitive behaviour
D) competitive position

Answer 3

C

Question 4

The external environment:___________

A) does not change over time.
B) must be continually monitored by marketing managers.
C) can be controlled in much the same manner as the internal marketing mix.
D) does not have an impact on Fortune 500 companies.

Question 5

By understanding who the main competitors are, it becomes possible to make judgements about the nature and intensity of the competition. This also provides a view about how a firm's ___________ should evolve.

A) environment scanning
B) vision and mission
C) marketing strategy
D) brand positioning

Question 6

The fast developments in digital technologies and the popularity of social media have led to the generation of large amounts of consumer data that are mined by marketers to improve their offerings. Internet of Things (IoT)This trend will further expand with the development of wearable technology and the ____________

A) reverse engineering
B) me-too marketing strategy
C) web-based marketing
D) Internet of Things (IoT)

Question 7

New technology results in new goods and services, and it can also:________

A) lower the available level of customer service.
B) lower the quality of existing products.
C) bring back products that were considered obsolete.
D) reduce prices through new production and distribution methods.

Question 8

The differentiation of a firm's products or services to promote environmental responsibility is referred to as:_________

A) brand personality
B) eco-branding
C) social branding
D) me-too branding

Question 9

_____________ is an important analytical tool as it draws attention to the cash flow and investment characteristics of each of a firm's offerings and indicates how financial resources can be maneuvered to attain optimal strategic performance over the long term.

A) Political analysis
B) Competitive analysis
C) Portfolio analysis
D) SWOT analysis

Question 10

Whitla (2009) suggests that the role and process of -------------- is to identify a task or group of tasks currently conducted in-house and then to release the task(s) to a 'crowd' of outsiders, who are invited to perform the task(s) on behalf of the company (for a fee or prize) or prize). or prize).

A) Pro-consuming
B) Crowdsourcing
C) Co-consuming
D) Pro-suming

Question 11

Difficulties arise when comparing factor prices across different countries. Rather than compare costs for individual products by means of the prevailing exchange rate, economists prefer to calculate prices for a particular basket of goods-a fixed list of common items-and compare the cost of that basket in one country with its cost in another. This is known as the……..

A) Wage inflation.
B) purchasing power parity (PPP) exchange rate .
C) Price inflation.
D) Gross domestic product (GDP) per capita .

Question 12

Online gamers or motorcycle enthusiasts that can develop very elaborate beliefs that influence the life and consumption patterns of group members are a good examples of subcultures.

Question 13

In the European Union (EU), general directives and the monitoring of the European Commission do not enforce general safety standards. Specific industries, which are more sensitive because of the products they sell (e.g., cosmetics, toys, technology) do not have dedicated regulations to respect both in terms of product testing and manufacturing but also in terms of labelling and waste management.

Question 14

Some companies have developed a proactive environmental scanning approach by considering potential switching costs facing their company.

Question 15

Organizations can out-perform other organizations over time if they can manage their relationships with government and regulatory bodies better than their competitors.

Question 16

With price inflation, where there is a scarcity of supply, there is usually an increase in the price of that consumer good or service.

Question 17

Buyers may also decide to increase their bargaining power through backward integration, when a company moves into manufacturing the products or services it previously bought from its suppliers.

Question 18

Codes of practice exist for both radio and TV typically with specific regulations for alcohol advertising, specifying that claims can only be made in relation to sexual prowess, fitness or health, courage or strength benefits of alcohol consumption.

Question 19

An important ecological trend is the rise in consumer concern for the environment and the demand for more 'organic' food.

Question 20

Porter's Five Forces is the most common technique used to conduct a product portfolio analysis.

Question 21

One of the popular methods for assessing the variety of businesses/products that an organization has involves the creation of a two-dimensional graphical picture of the comparative strategic positions. This technique is referred to as the Boston Consulting Group (BCG) matrix.

Question 22

the strategy of a market leader, which identifies little competition, will be different from that of a small firm trying to establish a small market share. The former may try to dominate the whole market, whereas the latter may attack the leader or find a small underserviced segment, called a -------------, and make that market its own.

A) niche market
B) mass market
C) Competitive advantage
D) mass media

Question 23

_____________ should be undertaken on a regular, annual, basis and be regarded as a positive activity that can feed into marketing strategy and should not be instigated in response to a crisis.

A) PESTLE analysis
B) Product portfolios analysis
C) Marketing audit
D) Environmental scanning

Question 24

………….. comprise indicators of the relative performance of the company and include measures such as profitability, market share and revenue. They also include measures of awareness, customer satisfaction and retention/loyalty

A) portfolio issues
B) marketing audit
C) internal metrics
D) External metrics

Question 25

The_____________ consists of those organizations that either directly or indirectly influence an organization's operational performance.

A) external environment
B) performance environment
C) internal environment
D) environmental scanning

Question 26

Companies frequently develop new propositions based on their competitor's offerings, through _________ strategies. In fact, this kind of strategy lies at the heart of the inability of firms to turn their technological advances into sustainable competitive advantages.

A) niche
B) blue ocean
C) me-too
D) divest