Deck 2: The Dynamic Marketing Environment

Question 1

_____ is the process of gathering information about a company's external environment, analyzing it, and forecasting the impact of whatever trends the analysis suggests.

A) Macroenvironmental auditing
B) Environmental monitoring
C) An organizational assessment
D) An organization/environment match
E) A social audit

Answer 1

Environmental monitoring

Question 2

Environmental monitoring is also called:

A) a situational audit.
B) environmental scanning.
C) a situational assessment.
D) an organizational audit.
E) an external analysis.

Answer 2

environmental scanning.

Question 3

Personal computers contain noxious materials, such as cadmium, bromine, and lead. The recycling of PCs as they are now manufactured is expensive and tricky. Prior to the European Union requirement that PC manufacturers take responsibility for making sure that all PCs are properly recycled, Hewlerr-Packard's CEO challenged her research and development department to create a more environmentally-friendly PC. Through _____, the CEO would have learned the necessity for such a new product development.

A) a situational audit.
B) environmental scanning.
C) a situational assessment.
D) an organizational audit.
E) an external analysis.

Answer 3

environmental scanning.

Question 4

The two levels of external environmental forces are:

A) controlled and uncontrolled.
B) centralized and decentralized.
C) micro and macro.
D) direct and indirect.
E) extrinsic and intrinsic.

Question 5

Which of the following would be an example of a microenvironmental influence on an international organization's marketing system?

A) the way the company purchases its raw materials
B) an electrical blackout
C) terrorist killings in London
D) a reduction in the gasoline tax
E) an increase in the percentage of the population over age 40

Question 6

In recent years personal computer manufacturers have sold directly to consumers and phased out PC dealerships. Apparently, a recent move to properly handle the noxious materials that are found in obsolete PCs has caused PC manufacturers to reinstate the PC dealerships. These reinstated dealerships would take responsibility for seeing that used PCs were properly disposed of. This addition of dealerships indicates a:

A) microenvironmental influence on the PC industry
B) technological transition in the social responsibility perspective
C) macroenvironmental influence on all PC competition
D) social and cultural influence on manufacturing trends
E) deep commitment to social responsibility

Question 7

Which of the following would be an example of a microenvironmental influence on an amusement park?

A) an increase in the cost of electricity
B) unseasonably rainy weather
C) bankruptcy of a major supplier of arcade games
D) increase in average customer age
E) change in the federal government's safety regulations

Question 8

Which of the following would be an example of an external macroenvironmental influence on a state fair?

A) a strike by truckers who transport midway rides
B) bankruptcy of a major supplier of arcade games
C) death of owner of midway rides
D) injury to customer riding on carousel
E) inflation

Question 9

Which of the following could be an external macroenvironmental influence on an organization's marketing system?

A) an increase in the prime interest rate
B) a decrease in the number of single-parent families
C) the passage of a law governing landfill usage
D) the growing popularity of cellular phones
E) all of the above

Question 10

_____ refers to the characteristics of human populations, including such factors as size, distribution, and growth.

A) Target marketing
B) Demographics
C) Ecology
D) Typography
E) Psychography

Question 11

Which of the following describes a demographic factor that a marketer of baby furniture would need to consider before launching a growth strategy?

A) people's attitude toward having more than one child
B) consumers' beliefs about child nurturing
C) consumers' feelings about material possessions
D) the number of women of child-bearing age
E) opinions about recycling and consumerism held by its target audience

Question 12

Demographics:

A) studies microenvironmental forces and how they affect marketing programs.
B) refers to the characteristics of human populations, including such factors as size, distribution, and growth.
C) is an examination of how lifestyle changes influence marketing decision makers.
D) is a comparative study of federal and local legal restrictions.
E) is the study of business cycles.

Question 13

Which of the following statements describes a demographic factor that is likely to affect the marketing of homes in retirement communities?

A) Congress amended the Consumer Credit Protection Act.
B) Interest rates for homebuyers are below 10 percent.
C) Concern about water and air pollution has increased.
D) More than one-quarter of the U.S. population is at least 50 years old.
E) People are more willing to pay for convenience.

Question 14

In response to changes in _____ in its macroenvironment, the Girl Scout Council is looking to recruit Hispanic girls. Currently less than 2 percent of all Girl Scouts are Hispanic.

A) natural forces
B) technological forces
C) demographics
D) economic conditions
E) marketing intermediaries

Question 15

MTV ran a contest looking for the messiest college dorm room in the United States. The winner would receive the opportunity to be a guest host on MTV. This promotion shows MTV recognition of ______ as a macroenvironmental influence on its target marketing.

A) competition
B) technological forces
C) demographics
D) economic conditions
E) marketing intermediaries

Question 16

The fact Kroger has developed Food4Less grocery stores to cater to the needs of the rapidly growing Latino market is recognition of _____ as a macroenvironmental influence on its marketing program.

A) competition
B) the greening of America
C) demographics
D) economic conditions
E) social and cultural forces

Question 17

Generation Y is:

A) often called the baby boomer generation.
B) typically defined as a homogeneous market.
C) a term used to describe consumers born before 1966.
D) hard to distinguish from the generations that precede it.
E) described by none of the above.

Question 18

Which of the following statements about Generation X is true?

A) Generation X is barely distinguishable from the baby boomer generation.
B) Members of Generation X are very optimistic about their financial prospects.
C) Generation X refers basically to people born between 1966 and 1976.
D) Members of Generation X tend to exercise more economic power than any preceding generations.
E) Generation X is a homogeneous group that comprises about 20 percent of the adult population in the United States.

Question 19

A newspaper article on the world economy stated, "Both the Japanese government and its central banking system are debilitated by a decade-long battle against deflation." This statement means that:

A) there are no competitive influences in Japan.
B) the environment for organizations operating in Japan is most influenced by demographic forces.
C) the birthrate in Japan has dramatically decreased resulting in a decreasing number of consumers.
D) Japan has experienced ten years of declining prices.
E) the environment for organizations operating in Japan is most influenced by social and cultural forces.

Question 20

At the end of 2002, interest rates on new 30-year mortgages fell below six percent, and the industry operated under recessionary conditions. For the construction industry, this low interest rate was an example of how _____ forces influence its macroenvironment?

A) economic
B) demographic
C) technological
D) political and legal
E) social and cultural

Question 21

Which of the following is NOT one of the stages of the traditional business cycle?

A) prosperity
B) inflation
C) recovery
D) recession
E) depression

Question 22

Prosperity:

A) is the stage of the business cycle that occurs after recession and before recovery.
B) is a period of retrenchment for businesses and consumers.
C) occurs when personal incomes increase at a faster rate than price levels.
D) is a period of economic growth.
E) occurs when price levels increase at a faster rate than personal incomes.

Question 23

During which stage of the traditional business cycle do organizations tend to expand their marketing programs as they add new products and enter new markets?

A) prosperity
B) inflation
C) recovery
D) recession
E) depression

Question 24

_____ is a period of retrenchment for consumers and businesses.

A) Prosperity
B) Inflation
C) Recovery
D) Recession
E) Depression

Question 25

A recession:

A) occurs when personal incomes increase at a faster rate than price levels.
B) is a period of economic cutbacks for businesses and consumers.
C) is a period of economic growth.
D) is the period during which the economy is moving from recovery to prosperity.
E) occurs when price levels increase at a faster rate than personal incomes.

Question 26

As a stage of the business cycle, recovery:

A) is a period of economic plateau.
B) is a period of retrenchment for businesses and consumers.
C) occurs when personal incomes increase at a faster rate than price levels.
D) occurs when price levels increase at a faster rate than personal incomes.
E) is the period during which the economy is moving from recession to prosperity.

Question 27

As a stage of the business cycle, _____ is the period during which the economy is moving from recession to prosperity.

A) stagnation
B) inflation
C) recovery
D) retrenchment
E) depression

Question 28

When price levels increase at a faster rate than personal incomes, resulting in loss of buying power, the country is experiencing:

A) prosperity.
B) inflation.
C) recovery.
D) recession.
E) depression.

Question 29

Inflation:

A) is a rise in the prices of goods and services.
B) is a period of economic growth.
C) occurs when personal incomes increase at a faster rate than price levels.
D) is the period during which the economy is moving from recession to prosperity.
E) is a period of retrenchment for businesses and consumers.

Question 30

Periods of declining prices are often called times of:

A) negative prosperity.
B) excessive recession.
C) deflation.
D) cyclical losses.
E) negative earning power.

Question 31

A company that was trying to cope with disinflation would most likely:

A) give out more free samples than it would during a period of prosperity.
B) add new product features even if it requires that the product price be increased.
C) mail coupons to the homes and businesses of its target market.
D) redesign products to cut production costs.
E) increase the number of coupons issued on a monthly basis.

Question 32

An amusement park that was trying to cope with _____ and unable to raise ticket prices could shut down the rides that were expensive to operate and quit giving out free promotional tickets to maintain profitability.

A) a recession
B) a recovery period
C) deflation
D) a market trickle-down
E) the microenvironmental influence of the economy

Question 33

Galen Boja works as an x-ray technician in a Peruvian hospital. Last year he could easily afford to eat out three to four nights a week. This year Boja is earning the same salary, but he can't afford to eat out more than once a week because prices are so much higher. Boja is experiencing one of the ways _____ affects the individual.

A) a prosperity
B) an inflation
C) a recovery
D) a recession
E) a depression

Question 34

Which of the following is the best example of an economic environmental force that would affect the sale of gardening equipment?

A) Seventy-seven percent of the U.S. population buy from companies that use green marketing.
B) The U.S. is experiencing increased interest in health and physical fitness.
C) Inflation is expected to remain low for the rest of the decade.
D) The Environmental Protection Agency is in the process of limiting the availability of many popular insecticides.
E) Local communities are providing apartment dwellers with garden spots.

Question 35

A recent drought in Australia has been the primary cause of the inflation the nation experienced in the early months of 2003. This statement means the:

A) nation has less concern about its natural environment than in years past.
B) prices of goods and services has been steadily increasing.
C) country has experienced the business problems associated with the prosperity stage of the business cycle.
D) macroenvironment for companies operating in Australia has been influenced most by demographic changes.
E) prices of goods and services have been rising.

Question 36

Which of the following is the best example of an economic macroenvironmental force that would affect how fitness equipment for the home is marketed?

A) The economy moves into the prosperity stage of the business cycle.
B) Robotics is used to make production of the equipment more efficient.
C) Congress passes a law limiting the use of imported parts in the manufacturing of fitness equipment.
D) The number of working women increases.
E) Hiking and jogging increase in popularity.

Question 37

The Mother's Against Drunk Driving (MADD), Atlanta Symphony Orchestra, the Sierra Club, and the Special Olympics are all part of each other's _____ environment because they vie for donor dollars.

A) demographic
B) technological
C) legal
D) competitive
E) cultural

Question 38

Many people believe it is much simpler to take photographs with digital cameras and avoid the problems of having to wait for pictures to return from the film processor. Digital cameras are part the _____ environment for companies that engage in film processing.

A) demographic
B) technological
C) legal
D) competitive
E) cultural

Question 39

Krista Gomez is selling Girl Scout cookies. She has asked you to describe her competitive environment. What do you tell Krista?

A) Her only real competition is bakeries and supermarkets.
B) Her only competitors are other Girl Scouts.
C) Any cookie that is sold in a store is part of her competitive environment.
D) Her competition includes any food that someone would eat as a snack food.
E) She is part of a charity, so she does not face any competition.

Question 40

Edward needs to buy a new set of tires for his pickup truck. He should consider Firestone, Michelin, Goodyear, and Dunlop tires as examples of _____ competitors.

A) brand
B) horizontal
C) economic
D) general
E) social

Question 41

Duncan-Hines cake mixes, Pillsbury cake mixes, and Betty Crocker cake mixes are _____ competitors.

A) brand
B) cultural
C) demographic
D) general
E) social

Question 42

The 3M Company sells Scotch brand tape. Which of the following products is part of the tape's competitive environment?

A) Elmer's Glue-All
B) Ace brand masking tape
C) Faber-Castell glue stick
D) Manco sealing tape
E) all of the above

Question 43

Coca-Cola must compete for consumer dollars with all other carbonated beverages as well as all beverages that are used to quench thirst. This example shows the difficulty of dealing with _____ in the macroenvironment.

A) demographics
B) technological changes
C) legal requirements
D) substitute products
E) social norms

Question 44

Frito-Lay and its Lays potato chips face competition from other marketers of potato chips. A second form of competition the company must deal with comes from the producers of:

A) Ritz crackers.
B) popcorn.
C) granola cereal.
D) candy bars.
E) all of the above.

Question 45

There are many sources for fresh-cut flowers that are sold by florists, in supermarkets and in other retail outlets. It is hard to create a product mix that makes one company's products differ from and more desirable than another's. One company that has done so is Virginia Farms Direct. This company grows a greater variety of long-stem roses than any other company. Virginia Farm Direct's more than 80 varieties of roses gives the company a:

A) differential advantage.
B) sustained competitive edge.
C) marketing niche.
D) sustainable advantage.
E) long-term dominance.

Question 46

A _____ is any feature of an organization or brand that is perceived to be desirable and different from those of the competition.

A) differential advantage
B) positioning strategy
C) marketing niche
D) just noticeable difference
E) long-term dominance

Question 47

Organizations like Weight Watchers must advertise extensively and use other forms of promotion in order to attract customers and then keep similar organizations designed to help consumers lose weight from taking away these customers. The challenges faced by Weight Watchers are an example of how _____ influence a company's activities.

A) demographic mobility
B) technological changes
C) legal governances
D) competition
E) social norms

Question 48

Sales for Royal Baltic brand canned salmon were high until the product was recalled three times in less than six months due to the presence of a life-threatening bacteria in the processed fish. Each recall was heavily publicized by the news media. This recall has produced a _____ for Royal Baltic.

A) strategic impasse
B) roadblock
C) differential disadvantage
D) sustainable disadvantage
E) market boycott

Question 49

All enterprise wish to avoid a _____, which is any feature of an organization or brand that drives consumers away.

A) strategic impasse
B) roadblock
C) differential disadvantage
D) sustainable disadvantage
E) market boycott

Question 50

Ad for Zerex antifreeze coolant says that it is recommended for use in both gasoline and heavy duty diesel engines, and Prestone antifreeze is not. This ad is based on a(n) _____ that Zerex has.

A) differential advantage
B) cooperative synergy
C) value chain
D) economic influence
E) demographic advantage

Question 51

Unlike Tylenol, Excedrin Migraine has a special formula that's approved to relieve all your migraine symptoms. This statement describes the _____ that Excedrin Migraine pain reliever has over Tylenol.

A) differential advantage
B) cooperative synergy
C) value chain
D) economic influence
E) demographic advantage

Question 52

Which of the following statements about the North American Free Trade Agreement (NAFTA) is true?

A) NAFTA has increased the amount of trade between Canada and Mexico.
B) Critics of NAFTA fear the loss of U.S. jobs.
C) Supporters of NAFTA claim the agreement will increase competitiveness and efficiency.
D) The purpose of NAFTA is to promote trade by phasing out tariffs.
E) All of the above statements about NAFTA are True.

Question 53

Consumers today are more concerned about the quality of life than the quantity of products they can purchase. This change in viewpoint illustrates how _____ forces affect marketing.

A) demographic
B) technological
C) legal
D) economic
E) social and cultural

Question 54

At the beginning of 2004, India was the world's second-largest consumer of tobacco. By the middle of that year, the Indian government had instituted a ban on tobacco advertising as well as the prohibition of smoking in all public places. This is an example of how a(n) _____force can be used to modify _____ forces.

A) technological; demographic
B) demographic; economic
C) technological; economic
D) political and legal; social and cultural
E) economic; social and cultural

Question 55

If you were to buy a printer cartridge for your HP LaserJet Printer, you would find in the box everything you need to return the empty cartridge for recycling. The popularity of this type of recycling program that helps to reduce the amount of trash in landfills is an example of how concern for the _____ environment has influenced how business operate.

A) technological
B) natural
C) competitive
D) legal
E) social

Question 56

When Wal-Mart opened its first Eco-Mart in Lawrence, Kansas, it promised to only merchandise environmentally friendly products. The development and opening of this new store concept was in direct response to:

A) growing concern about the natural environment.
B) an increase in the number of impulse buys.
C) an increasing Hispanic population in the U.S.
D) a demand for more high-quality products.
E) a declining teenage population.

Question 57

Because of shortages of cedar, some pencil manufacturers are using wood from the rain forests in Indonesia. Faber-Castell has launched an advertising campaign based on the slogan, "Contains no rain forest wood." This campaign illustrates the strength of _____ forces in the macroenvironment.

A) demographic
B) technological
C) legal
D) economic
E) social and cultural

Question 58

The slogan for Revlon's New Age Naturals creams, "Because we believe what is good for the earth is good for all of us," illustrates the strength of _____ forces in the macroenvironment.

A) demographic
B) technological
C) legal
D) economic
E) social and cultural

Question 59

Which of the following is NOT one of the social and cultural forces in the external macroenvironment?

A) the erosion of stereotypes regarding men-women roles
B) the rapid growth of minority markets
C) the increased interest in health and physical fitness
D) the growing demand for convenience
E) the raising of our level of environmental consciousness

Question 60

Which of the following is one of the social and cultural forces in the external macroenvironment?

A) the growth of the Asian-American segment of our population
B) our population's move to the Southeastern United States
C) the emergence of Generation X
D) an increase in disposable income
E) growing concern for the natural environment

Question 61

Which of the following products most directly resulted from changes in how consumers view the natural environment?

A) vending machines
B) computer modems
C) paper towels made of completely recycled material
D) Hispanic television stations
E) low-interest-rate individual retirement accounts

Question 62

The importance of a second income to the survival of many families had led to the creation of several magazines, including Working Woman. These magazines reflect changes in the _____ forces of the macroenvironment that affect marketing.

A) demographic
B) technological
C) legal
D) economic
E) social and cultural

Question 63

Because so many women now work outside the home, there is a major increase in the demand for day-care services for (a) children under six and (b) older people who are unable to stay by themselves. This increase in the need for day-care services illustrates how changes in _____ forces affect marketing.

A) competitive
B) technological
C) legal
D) economic
E) social and cultural

Question 64

An industry expert's statement that Rally's restaurants are "fast-lane fast food and the perfect solution to working women who find eating out to be too much of a hassle" may be largely attributed to _____ in the macroenvironment

A) inflation
B) social and cultural influences
C) FTC regulations.
D) recession
E) technological forces

Question 65

A busy working mother can go to a Super Target store and buy everything from fresh-baked bread to towels to clothes to books to fresh turkey. This one-stop shopping environment is in direct response to recent changes in how _____ forces are affecting the macroenvironment.

A) social and cultural
B) political and legal
C) demographic
D) economic
E) technological

Question 66

Three reasons are given for the growing global markets for American brands. One is the idea that if a brand has become world famous, it must be good. Another reason is that by consuming a global brands, the user becomes part of a like-minded global community. The final reason is the extent of the brand's commitment to social responsibility. All of these reasons directly influence are _____ forces.

A) social and cultural
B) political and legal
C) demographic
D) economic
E) technological

Question 67

Some experts contend that an apparent decline in the sale of American brands in Europe is due to anti-American sentiment resulting from the Iraq war and the torture of prisoners at Abu Ghraib. Many more experts believe that people do not think about U.S. foreign policy when they are wondering which soft drink to buy. In this instance, _____ forces in terms of what experts believe is important and what is actually important differ.

A) social and cultural
B) political and legal
C) demographic
D) economic
E) technological

Question 68

Which of the following would be an external macro social and cultural change that has affected the marketing done by fast-food restaurants?

A) the decline in the number of teenagers
B) high interest rates, which encourage more eating at home
C) a growing concern with health and physical fitness
D) a growing Hispanic minority
E) new FDA regulations

Question 69

Avon Products, Inc. distributed 16 million brochures titled "10 Facts Every Woman Should Know about Breast Cancer" in a single month. This sort of marketing is a direct response to the _____ forces in the macroenvironment.

A) social and cultural
B) political and legal
C) internal
D) economic
E) technological

Question 70

Despite the much-triumphed freedom of movement across the European Union's member nations, an Austrian baker still has to obtain eight different licenses to open a store in Italy, only a few miles outside Austria. The complicated license requirements is how Italy uses the _____ environment to protect its bakers.

A) social and cultural
B) political and legal
C) internal
D) economic
E) technological

Question 71

China is not famous for protecting the copyrights of international companies. When Coko Toy Company made Lego-look-alike toys, Lego company, the manufacturer of interlocking bricks, sued for copyright infringement. In a landmark case, the Chinese manufacturer was found to be guilty and required to destroy the relevant molding equipment and pay Lego compensation. This case gives hope to other companies that are having difficulty protecting their copyrights and reflects a change in the _____ environment.

A) social and cultural
B) political and legal
C) internal
D) economic
E) technological

Question 72

Personal computers contain a lot of noxious material including lead, bromine, and cadmium. Recycling is tricky, but the European Union's Waste Electrical and Electronic Equipment Directive requires that PC manufacturers take responsibility for recycling efforts. This responsibility will be expensive for PC manufacturers to implement. These costs will be passed on to consumers who will feel the effect of changes in the _____ environment of PC manufacturers.

A) social and cultural
B) political and legal
C) internal
D) economic
E) technological

Question 73

Congress has considered a bill that would put a 15-year limit on liability lawsuits, and it would allow companies to defend themselves by arguing that their products met government standards in force when the products were made. Since product liability suits can destroy a company, this would be an important example of how _____ forces could affect marketing.

A) social and cultural
B) political and legal
C) demographic
D) economic
E) technological

Question 74

Which of the following does NOT describe a political and legal force in the macroenvironment?

A) tax legislation
B) fiscal and monetary policies
C) government deregulation of various industries
D) companies negotiating to form a trade association that would promote the industry's product
E) government subsidies to railroads

Question 75

In some communities, zoning restrictions prohibit building a liquor store within 200 feet of school property. This is an example of how _____ forces affect marketing.

A) social and cultural
B) political and legal
C) demographic
D) economic
E) technological

Question 76

Which of the following is the best example of how political and legal environmental forces in the macroenvironment might affect network television programming during this decade?

A) Working mothers have little time to monitor what their children watch on TV.
B) The increasing use of electronic censoring devices should help ease parents' minds.
C) Both major political parties have pledged to regulate the amount of violence and sex on television.
D) There is a large and growing middle-class market among minority groups in the U.S., whose opinion has not been heard.
E) Television viewing is on the decline as more people jump on the physical fitness bandwagon.

Question 77

Which of the following is an example of a political and legal force in the macroenvironment that could affect the marketing of farm products?

A) Congress passed anti-pollution laws that affect farm equipment.
B) The level of federal government purchases of food for military bases declined.
C) Price supports for corn and wheat increased by 20 percent.
D) Legal restrictions on the use of the term "naturally grown" became more commonplace.
E) All of the above describe ways that political and legal forces can affect the marketing of farm products.

Question 78

Rebate scamming, the illegal practice of obtaining unearned rebates from companies, is a growing concern to many marketers. Experts on rebate scamming estimate that over 100,000 people are actively involved in the practice and are costing businesses more than a half a billion dollars annually. Finding these individuals and prosecuting them is difficult and can often lead to bad publicity when the perpetrator is a 70-year-old grandmother. The prosecution of the rebate scam perpetrators is an example of how _____ forces affect marketing.

A) social and cultural
B) political and legal
C) demographic
D) economic
E) technological

Question 79

Government legislation falls into two basic groups; one is intended to regulate and maintain competition, and the other is designed to:

A) guarantee taxes are paid.
B) protect consumers.
C) prevent the creation of trusts.
D) control marketing programs.
E) assign organizational missions.

Question 80

Government legislation falls into two basic groups; one is designed to protect consumers, and the other is intended to:

A) guarantee taxes are paid.
B) prevent deception of consumers.
C) regulate and maintain competition.
D) control marketing programs.
E) assign organizational missions.