Deck 2: The Environment in Which Marketing Operates

Question 1

Which one of the following is NOT a part of the marketing environment?

A) Controllable factors
B) Uncontrollable factors
C) Interest rates
D) Adaptation

Answer 1

Interest rates

Question 2

Which is a major uncontrollable factor to both the firm and its marketers?

A) Overall objectives
B) Role of other business functions
C) Competition
D) Line of business

Answer 2

Competition

Question 3

A firm monitors uncontrollable factors and evaluates its strengths and weaknesses in

A) feedback.
B) adaptation.
C) control.
D) differential advantage analysis.

Answer 3

feedback.

Question 4

In which part of the marketing environment does a firm monitor uncontrollable factors and assess its strengths and weaknesses?

A) Adaptation
B) Corporate culture
C) Feedback
D) Target marketing

Question 5

The part of the marketing environment in which an organization plans changes in its marketing plan to reflect a new consumer trend is

A) corporate culture.
B) strategic planning.
C) feedback.
D) adaptation.

Question 6

After studying its uncontrollable environment, a firm decides to change its pricing strategy. This decision involves

A) feedback.
B) adaptation.
C) marketing myopia.
D) mass marketing.

Question 7

Which of the following are parts of a marketer's macroenvironment?

A) A firm's societal environment
B) The capabilities of the firm itself
C) A firm's distributors
D) A firm's pricing strategy

Question 8

The elements that are internally directed by a firm and its marketers are known as

A) the marketing mix.
B) controllable factors.
C) marketing strategies.
D) marketing tactics.

Question 9

Which of the following is NOT a controllable factor that is directed by top management?

A) Role of marketing
B) Overall objectives
C) Selection of a target market
D) Line of business

Question 10

Which of the following factors is NOT directed by top management?

A) Role of other business functions
B) Role of marketing
C) Determination of the target market
D) The firm's corporate culture

Question 11

When business managers outline a firm's functions, geographic coverage, and the specific business of the firm, they are detailing the firm's

A) corporate culture.
B) target market.
C) marketing organization.
D) line of business.

Question 12

An appliance retailer has decided to limit its business to marketing major appliances in a size suitable for smaller apartments. This represents its

A) role of marketing.
B) line of business.
C) corporate culture.
D) overall objectives.

Question 13

Marketing is given an important role in a company if

A) marketing functions are narrowly defined.
B) the firm invests heavily in distribution facilities.
C) marketing personnel have both short-term and long-term objectives.
D) marketing personnel have decision making authority and adequate resources are provided.

Question 14

A firm's corporate culture refers to its

A) short- versus long-term focus.
B) degree of consumer orientation.
C) shared values, norms, and practices.
D) role of marketing in the firm.

Question 15

Which of these factors is generally considered NOT to be controllable by marketing personnel?

A) The marketing mix
B) Overall objectives
C) The selection of a target market
D) The marketing organization

Question 16

A commonly used market segment would classify consumers on the basis of

A) perceived risk.
B) ownership.
C) age group.
D) risk tolerance.

Question 17

The particular group of customers a firm proposes to serve with a particular marketing program is its

A) unified segment.
B) benefit segment.
C) target market.
D) market segment.

Question 18

The process of subdividing a market into clear subsets of customers that act in the same way or have comparable needs is referred to as

A) demographic marketing.
B) market segmentation.
C) lifestyle segmentation.
D) target marketing.

Question 19

Which of these is NOT a marketing objective?

A) To reduce dependence on a key supplier
B) To improve a company's overall image
C) To increase a firm's average purchase from its customers
D) To increase customer inquiries

Question 20

Which of the following is an example of a marketing objective?

A) To maintain return on investment at 14 percent
B) To earn a 7-year payback period on a new plant
C) To double the current research and development budget
D) To increase market share to 15 percent

Question 21

The unique features in a firm's marketing program that cause consumers to patronize the firm, and not competitors, is its

A) marketing mix.
B) differential advantage.
C) corporate culture.
D) technological mix.

Question 22

A firm is a low-cost provider in an industry on the basis of cost economies due to its high market share and key patents. This illustrates its

A) differential advantage.
B) marketing objective.
C) target market.
D) marketing mix.

Question 23

The structural arrangement that directs marketing functions is outlined in the

A) marketing mix.
B) firm's objectives.
C) marketing organization.
D) corporate culture.

Question 24

In a functional form of marketing organization, responsibility is assigned on the basis of

A) customer location.
B) customer size.
C) buying, selling, promotion, and distribution.
D) product category.

Question 25

In which marketing organization format does a firm use a single individual to make packaging, advertising, distribution, and pricing decisions for each individual brand?

A) Centralized
B) Functional
C) Market-oriented
D) Product-oriented

Question 26

Managers are assigned on the basis of customer type and/or geographic market in which marketing organization format?

A) Centralized
B) Product-oriented
C) Market-oriented
D) Functional

Question 27

The specific combination of marketing elements used to achieve objectives and satisfy the target market is the

A) differential advantage.
B) marketing strategy.
C) marketing mix.
D) marketing plan.

Question 28

Which of the following is NOT a component in a firm's marketing mix?

A) Pricing decisions
B) Feedback and adaptation
C) Product decisions
D) Distribution decisions

Question 29

The marketing mix involves

A) planning, implementation, and control decisions.
B) product, distribution, promotion, and price decisions.
C) strengths, weaknesses, opportunities, and threats (SWOT) analysis.
D) product, packaging, personnel, and promotion decisions.

Question 30

Decision making relating to supplier choice and what functions to assign to others are part of

A) pricing decision making.
B) distribution decision making.
C) promotion decision making.
D) product decision making.

Question 31

Which statement concerning uncontrollable factors is correct?

A) Uncontrollable factors cannot be fully directed by an organization and its marketers.
B) While uncontrollable factors can be fully directed by top management, they cannot be directed by its marketers.
C) Uncontrollable factors cannot be incorporated into a marketing plan.
D) Uncontrollable factors are not susceptible to contingency planning techniques.

Question 32

Which of these is an uncontrollable factor for both an organization and its marketers?

A) The unemployment rate
B) The firm's marketing organization
C) The role of marketing in the firm
D) The firm's corporate culture

Question 33

In which competitive structure does a firm have the most control over its marketing plan?

A) Pure competition
B) Monopoly
C) Monopolistic competition
D) Oligopoly

Question 34

In a monopoly situation, the firm's key marketing task is to

A) differentiate its products on the basis of nonprice factors.
B) differentiate its products on any factors.
C) ensure a large product supply at low prices.
D) maintain its uniqueness and to prevent competitors from entering the market.

Question 35

In an oligopoly,

A) just one firm sells a particular good or service.
B) a few firms comprise most of an industry's sales.
C) several firms, each with a unique marketing mix, exist in an industry.
D) many firms sell virtually identical goods or services.

Question 36

In an oligopolistic competitive structure,

A) the market is often quite small.
B) there are no discernible consumer segments.
C) each firm has total control over its marketing plan.
D) firms like to engage in nonprice competition.

Question 37

Which competitive structure most closely describes the bottled/canned soda industry?

A) Oligopoly
B) Monopoly
C) Monopolistic competition
D) Pure competition

Question 38

When an industry has several firms, each of which is striving to offer a unique marketing mix, which competitive structure exists?

A) Monopolistic competition
B) Differentiated competition
C) Oligopolistic competition
D) Pure competition

Question 39

The most common competitive structure in the United States is

A) monopoly.
B) monopolistic competition.
C) oligopoly.
D) pure competition.

Question 40

An important characteristic of monopolistic competition is that

A) startup costs are relatively low.
B) major firms have significant patent protection.
C) barriers to entry exist which reduce competition.
D) most firms sell identical products.

Question 41

In which competitive structure are firms unable to create a long-run differential advantage?

A) Oligopoly
B) Monopolistic competition
C) Monopoly
D) Pure competition

Question 42

A firm that looks carefully at the marketing strategy of its indirect competitors

A) defines its competitors in generic terms.
B) is in a monopolistic competition competitive environment.
C) practices marketing myopia.
D) views competition in a narrow framework.

Question 43

Federal legislation affecting marketers can be divided into three major categories: antitrust, discriminatory pricing, and unfair trade practices; industry deregulation; and

A) natural resource conservation and protection.
B) consumer protection.
C) fraudulent business practices.
D) regulation of mergers and acquisitions.

Question 44

The goal of legislation designed to maintain "a level playing field" is to

A) reduce price competition among competing firms.
B) protect consumers from unethical marketing practices.
C) make domestic firms more competitive with foreign firms.
D) protect smaller firms from anticompetitive activities of larger firms.

Question 45

The major role of the Federal Trade Commission is to

A) ensure that consumers obtain low prices.
B) protect businesspeople from unfair competition from foreign-owned firms.
C) develop and enforce rules relating to consumer product safety.
D) enforce rules against unfair methods of competition and deceptive business practices.

Question 46

The annual value of goods and services produced in a country less net foreign investment is a country's

A) trade surplus.
B) gross domestic product.
C) balance of payments.
D) trade deficit.

Question 47

Real income is the

A) income earned by a person adjusted by the rate of inflation.
B) income earned by a person after deducting all costs for luxuries.
C) actual dollar income earned by a person.
D) actual after-tax income earned by a person.

Question 48

Technology refers to the development and use of

A) research and development.
B) major innovations.
C) machinery, products, and processes.
D) engineering resources.

Question 49

A consumer survey conducted by an industrial marketer to determine the images of its multiple brand is an illustration of which part of the marketing environment?

A) Feedback
B) Adaptation
C) Objectives
D) Uncontrollable factors

Question 50

In marketing myopia, a firm

A) defines its business in terms of broadly defined consumer needs.
B) acquires intermittent consumer feedback.
C) has an aggressive approach to marketing.
D) has a narrow-minded view of marketing and its environment.

Question 51

In developing a marketing plan, a marketing manager must take into account marketing factors that are uncontrollable by marketing personnel. These variables include

A) pricing and distribution management.
B) consumers and competition.
C) marketing objectives and technology.
D) marketing organization and supplier prices.

Question 52

When the top management of a computer manufacturer decides to purchase a former supplier of computer cases, this decision has the greatest impact on the company's

A) overall objectives.
B) marketing functions.
C) corporate culture.
D) line of business.

Question 53

A firm defines its line of business broadly to take advantage of potential opportunities. For example, instead of classifying itself as a manufacturer of high fidelity equipment, it views itself as an entertainment technology firm. The firm

A) defines competition in generic terms.
B) practices marketing myopia.
C) practices mass marketing.
D) has a flexible corporate culture.

Question 54

Which controllable factor is defined in broad terms for a conglomerate?

A) Corporate culture
B) Overall objectives
C) Line of business
D) Role of other business functions

Question 55

In contrast to its overall objectives, a firm's marketing objectives are more frequently stated in terms of

A) long-term objectives.
B) profits. .
C) return on investment.
D) consumer image

Question 56

The role of marketing is greatest in which competitive structure?

A) Monopolistic competition
B) Pure competition
C) Oligopoly
D) Monopoly

Question 57

A firm calls its employees "associates," prefers to promote from within, uses participative management, and focuses on long-term (not short-term) performance. These values reflect the firm's

A) formality.
B) controllable factors.
C) marketing orientation.
D) corporate culture.

Question 58

When the senior executives at a home improvement center communicate the firm's concern for high levels of customer service and for honesty in dealing with customers (they should sell a $1 washer instead of a $100 faucet, if only the washer is needed), the executives are communicating the firm's

A) marketing mix.
B) role of marketing.
C) corporate culture.
D) line of business.

Question 59

A restaurant appeals to consumers who desire family-oriented meals. It offers an informal dining atmosphere, family-size portions, and special menus for children accompanied by family members. Most of its patrons live within 5 miles of the restaurant, have annual family incomes in excess of $50,000, and dine with their children. These consumers comprise the restaurant's

A) marketing target.
B) marketing mix.
C) target market.
D) customer base.

Question 60

Objectives relating to the time span between a customer's ordering merchandise and its receipt, and customer satisfaction ratings are examples of

A) overall objectives.
B) marketing objectives.
C) short-term objectives.
D) long-term objectives.

Question 61

A hospital supply firm has a unique computer program which facilitates reordering hospital supplies. Orders are placed directly to the wholesaler who guarantees next day delivery. This program and order cycle time represent the wholesaler's

A) differential advantage.
B) marketing philosophy.
C) marketing mix.
D) target strategy.

Question 62

Without a differential advantage, a company would have a

A) poorly integrated marketing plan.
B) limited target market.
C) "me-too" philosophy.
D) mass-market orientation.

Question 63

Which statement about a differential advantage is correct?

A) It is most difficult to get and keep a differential advantage in a monopoly.
B) Only large firms can develop and maintain a differential advantage.
C) Individual firms can have no differential advantage in pure competition.
D) A firm can develop a differential advantage in pure competition through nonprice marketing factors.

Question 64

A personal computer manufacturer generates consumer loyalty through the use of direct marketing, Web-based ordering, high levels of customer service, and low prices due to its assuming wholesale and retail functions. These strategic elements constitute its

A) marketing plan.
B) market segmentation approach. .
C) marketing mix.
D) differential advantage

Question 65

A marketing organization

A) is usually headed by a product or sales manager.
B) is independent of a firm's corporate culture.
C) should adapt to situational factors.
D) is not subject to the control of top management.

Question 66

The Following Questions are linked to this scenario: As vice-president of marketing of a major appliance manufacturer (that specializes in refrigerators and ranges), you are considering various alternative organizational forms for the marketing function.

-One alternative structure would be based upon satisfying two criteria: (1) minimizing total personnel costs, and (2) having clear lines of authority and responsibility. The most appropriate organization form on the basis of these criteria is

A) market-oriented.
B) mixed.
C) product-oriented.
D) functional.

Question 67

The Following Questions are linked to this scenario: As vice-president of marketing of a major appliance manufacturer (that specializes in refrigerators and ranges), you are considering various alternative organizational forms for the marketing function.

-Another alternative organization design would be based upon best meeting the needs of different market segments. For example, organizational consumers (such as builders and property owners) often purchase major appliances on the basis of cost, the availability and cost of replacement parts, and ease of repair. Final consumers, on the other hand, typically purchase major appliances largely on the basis of style and color preferences. The most appropriate organization form for the firm is

A) product-oriented.
B) mixed.
C) market-oriented.
D) functional.

Question 68

A tire manufacturer has different managers responsible for different channel members (car manufacturers who buy direct versus final consumers who purchase replacement tires from service stations, tire retailers, and mass merchandisers like Wal-Mart), even though the tires are exactly the same for each channel. This firm is using what type of marketing organization?

A) Matrix-oriented
B) Market-oriented
C) Product-oriented
D) A mixture

Question 69

A plumbing parts manufacturer has distinct market segments (professional versus do-it-yourself) that require different distribution channels. What type of marketing organization should the firm use?

A) Matrix-oriented
B) Product-oriented
C) Market-oriented
D) A mixture

Question 70

A firm finds that its customers' needs vary significantly by their industry focus. The optimal marketing organization should be

A) functional.
B) market-oriented. .
C) product-oriented.
D) matrix-oriented

Question 71

A company has these marketing executives: two brand managers, one market research director, and three regional advertising managers. What marketing organization format is it using?

A) Product-oriented
B) Decentralized
C) Functional
D) A mixture

Question 72

An off-price retailer charges low prices for name-brand merchandise, does not advertise, uses low-rent locations, and relies on self-service. Together, these factors comprise the firm's

A) differential advantage.
B) marketing mix.
C) target market.
D) corporate culture.

Question 73

A maker of inexpensive computer software provides low-cost documentation (that is available on the Web through a frequently asked questions and search format), offers limited telephone support, and does not advertise. This strategy enables the software provider to undercut competitors, while offering a high-quality product. This marketing mix is

A) poorly integrated.
B) too expensive for the firm.
C) distinctive.
D) consistent.

Question 74

Contingency plans are most often used with what type of factor?

A) Uncontrollable factor
B) Controllable factor
C) A factor controllable by marketing, but not top management
D) A factor controlled by top management, but not marketing

Question 75

A firm with patent protection can utilize which competitive structure?

A) Pure competition
B) Monopolistic competition
C) Monopoly
D) Oligopoly

Question 76

When deregulation makes it easier for new firms to enter a market,

A) an oligopoly changes into monopolistic competition.
B) oligopolistic competitive structures change to monopolies.
C) pure competition competitive structures change to monopolistic competition.
D) a monopoly changes to an oligopoly.

Question 77

In an oligopoly situation, a firm should seek to

A) attain differential advantages through marketing mixes that are both different from competitors and desirable to consumers.
B) lower prices to drive competitors out of the market.
C) differentiate its products on the basis of nonprice factors.
D) maintain its unique status.

Question 78

An important characteristic of monopolistic competition is that

A) a kinked demand curve faces all firms.
B) few firms exist.
C) each firm has total control over price.
D) each firm seeks a differential advantage through any marketing factor.

Question 79

In the most common competitive structure in the United States, each firm seeks a

A) high price for its products.
B) price war.
C) cost advantage.
D) differential advantage.

Question 80

In which competitive structure does no single firm have any control over price?

A) Monopoly
B) Pure competition
C) Oligopoly
D) Monopolistic competition