Deck 2: The External Marketing Environment

Question 1

Governments and industry regulators have minimal impacts on marketing decisions.

Answer 1

False

Question 2

A monopoly is a market situation in which a few large firms control the market.

Answer 2

False

Question 3

Indirect competition is competition from substitute products that offer customers the same benefit.

Answer 3

True

Question 4

Market leader refers to the company with the highest level of recognition in the mind of the target market.

Question 5

A small airline like Porter Air that focuses on providing in-flight experiences not offered by WestJet and Air Canada could be called a market nicher.

Question 6

In Canada, the Competition Act is the entity that regulates the legal environment for marketing and other business practices in Canada.

Question 7

Canadians are protected by multiple privacy laws that place limits on collection, use, and disclosure of personal info.

Question 8

The total value of goods and services produced in a country on an annual basis is called the GDP or Gross Domestic Product.

Question 9

If inflation rises, a $50,000 income in 2006 will be worth more than it would have been in 2005.

Question 10

A lower bank rate can help boost the economy by making it less expensive for businesses and individuals to borrow money.

Question 11

As Canadians work more and longer hours, businesses are adjusting by offering convenience services.

Question 12

A beverage company that donates 1% of their sales to charities while producing profitable, environmentally sustainable drink bottles is focused on the "triple bottom line."

Question 13

Consumers doing research online is evidence that education and technology are producing more informed consumers.

Question 14

More Canadians than ever before are moving to rural areas.

Question 15

The people born in the mini-boom that occurred in the late 1980s are now more frequently referred to as Generation Y, or millennials.

Question 16

Essentially, families are getting larger and more traditional in structure.

Question 17

An individual born in 1968 is part of the "baby bust"generation.

Question 18

An increasing number of Canadian children are born and raised outside of marriage.

Question 19

The sandwich generation is so named because their fast-paced lifestyles have them consuming greater quantities of fast-food products, such as submarine sandwiches and burgers.

Question 20

The economic prosperity of the early part of the millennium has increased the spending power of the average Canadian consumer.

Question 21

The demand for higher education is delaying the age of marriage in Canada.

Question 22

To secure future success, companies must recognize Canada's cultural diversity by targeting and meeting the needs of various ethnic groups.

Question 23

The traditional 40-hour work week is a myth.

Question 24

Although the Canadian business community is working toward it, socially responsible marketing is not valued by consumers.

Question 25

Mass customization is a system that can personalize messages to a target audience of one.

Question 26

Marketing communications budgets are redirecting funds from traditional media (television, radio, newspaper, magazine, and outdoor advertising) to technology-based, direct consumer communications.

Question 27

E-commerce has been widely adopted by marketers because of the growing use of tablets and smartphones.

Question 28

Trends indicate that e-commerce has reached a plateau in Canada.

Question 29

Artificial Intelligence in marketing can involve using software and algorithms to write marketing content with minimal human contact.

Question 30

In 2016, total online sales in Canada were 10% higher than they were in 2012.

Question 31

A running shoe company allowing an audience to create their own gear online is an example of a direct-to-consumer channel.

Question 32

What external influences affect the marketing mix?

A) the competition, the economy, and the distribution channels
B) social and demographic trends, public relations, and technology
C) product, price, and place
D) technology, laws and regulations, and the economy
E) laws and regulation, profit share, and pricing policies

Question 33

What kind of market structure is an oligopoly?

A) One where one firm serves an entire market.
B) One where many firms market essentially the same products.
C) One where a few large firms dominate the market.
D) One where many firms offer products with unique features and prices.
E) One where only a few products are sold.

Question 34

What kind of market structure is pure competition?

A) One where there are few firms.
B) One where the difference between one company's product over another company's product is not that clear to consumers.
C) One where one firm serves the market.
D) One where firms offer a unique marketing mix based on price and other variables.
E) One where products are clearly distinguished by brand names.

Question 35

Which type of Canadian market is regulated by the government to ensure that market control is limited?

A) oligopoly
B) pure competition
C) monopoly
D) monopolistic competition
E) direct competition

Question 36

What is the term for a competitive strategy from substitute products offering the same benefits to customers?

A) pure competition
B) indirect competition
C) free enterprise
D) alternate competition
E) direct competition

Question 37

What is the best definition of market share?

A) profit of one competitor expressed as a percentage of the total industry profit
B) total sales volume of all competitors
C) sales volume of one competitor expressed as a percentage of the leader's sales
D) total market sales volume divided by the number of competitors
E) sales volume of one competitor expressed as a percentage of the total market sales

Question 38

A brand that has entered the market late and is content for its market share to be lower than a more dominant brand is called a

A) market laggard.
B) status quo brand.
C) nicher.
D) challenger.
E) market follower.

Question 39

What is the term for concentrating resources in one distinguishable segment of the market?

A) market laggard
B) market challenger
C) market follower
D) market nicher
E) market leader

Question 40

Molson and Labatt breweries control over two-thirds of the Canadian beer market. What kind of market structure are they part of?

A) monopoly
B) partnership alliance
C) strategic alliance
D) monopolistic competition
E) oligopoly

Question 41

What market structure are laundry detergent and candy bars part of?

A) pure competition
B) monopoly
C) open
D) monopolistic competition
E) oligopoly

Question 42

The diversity of brands in the toothpaste market is characteristic of which kind of market structure?

A) monopolistic competition
B) pure competition
C) indirect competition
D) diverse competition
E) oligopoly

Question 43

What type of competition is there between a cola drink and bottled water?

A) alternate competition
B) indirect competition
C) marginal competition
D) head-on competition
E) direct competition

Question 44

Which of the following is an example of direct competition?

A) Coca-Cola competing with milk for a share of the beverage market
B) Iam's cat food competing with Meow Mix cat food for share of the cat food market
C) Air Canada competing with VIA Rail for share of the transportation market
D) Wine coolers competing with beer for share of the beverage market
E) Cheerios competing with Dad's Cookies for share of the breakfast food market

Question 45

What would be the best way to classify Morrison's Shoes, which concentrates only on the oversize footwear market segment?

A) market leader
B) market challenger
C) market specialist
D) market nicher
E) market follower

Question 46

Which regulation governs company collection and use of customer information?

A) Consumer Affairs Act
B) Canadian Marketing Association Act
C) Competition Act
D) PIPEDA
E) Industry Canada

Question 47

What is the best description of gross domestic product?

A) The total value of goods and services produced annually in a country.
B) The total value of goods and services available for sale in domestic markets.
C) The total value of goods and services imported annually into a country.
D) The total value of goods and services exported annually from a country.
E) The total value of goods and services produced by a domestic manufacturer.

Question 48

In 2017, the Government of Canada announced which changes to food labelling laws?

A) Standardizing serving sizes, changing recommended daily values.
B) Using more scientific language to gain credibility with the medical community.
C) Allowing for fewer health claims related to fruits and vegetables.
D) Allowing more freedom for manufacturers around declaring allergens.
E) Ensuring that all food colours be listed by their chemical designations.

Question 49

Which offices administer laws, regulations, and policies that influence business and marketing activities?

A) Office of Packaging and Labelling and Bureau of Product Safety
B) Communications Policy Bureau and Bureau of Corporate Affairs
C) Bureau of Consumer Affairs and Bureau of Corporate Affairs
D) Competition Bureau and Office of Consumer Affairs
E) Bureau of Competition Policy and the Bureau of Consumer Affairs

Question 50

At a "home show,"visitors are offered a chance to win a gift certificate from a renovations company. To enter, they must complete a ballot with personal information including their name, address, telephone number, and also information about their home. The information collected is protected by which piece of Canadian legislation?

A) Fair Information Practices Act
B) Personal Information Protection and Electronic Documents Act
C) Corporate Information Control Act
D) Competition Act
E) Privacy Protection Act

Question 51

Which Industry Canada bureau would investigate a proposed merger between the country's two largest home retailers?

A) Bureau of Communications Policy
B) Competition Bureau
C) Bureau of Fair Competition
D) Office of Consumer Affairs
E) Bureau of Corporate Affairs

Question 52

The Competition Bureau recently found Bell Canada in violation of the National Do Not Call List, which meant.

A) the company had to pay a minimal fine to the bureau
B) the CRTC (Canadian Radio-Television Telecommunications Commission) temporarily shut down Bell's sales department.
C) Bell Canada is no longer allowed to call Canadians to offer them sales promotions.
D) Bell Canada was required to change their practice and pay a record-setting fee.
E) Competitors like Rogers and Telus were given an advantage by the bureau to "even the playing field."

Question 53

How will the purchasing power of an income of $30,000 be affected if inflation increases?

A) It will be able to buy more.
B) It will be taxed more.
C) It will be taxed less.
D) It will be worth more than $30,000.
E) It will be able to buy less.

Question 54

What does the term "disposable income"refer to?

A) One's actual income before taxes.
B) One's actual income after taxes.
C) One's actual income after taxes and other expenses.
D) One's income available for all expenses.
E) One's income available for necessary expenses.

Question 55

Why is it important for Canadian marketers to consider the state of the U.S. economy as an important factor of the external marketing environment?

A) The United States is Canada's largest trading partner.
B) Most Canadian businesses are managed out of the United States.
C) Canada's negative trade balance is due to U.S. policy.
D) Laws in the United States supersede Canadian business law.
E) 81% of U.S. exports are purchased by Canadians.

Question 56

Which of the following was the fastest growing economy in the Group of Seven Industrialized Democracies (G7) in 2017?

A) France
B) Germany
C) Italy
D) Japan
E) Canada

Question 57

When the Canadian dollar is worth $0.85 USD, what is the effect on Canadian-produced goods?

A) They are attractive to U.S. buyers because they are a lower price than U.S.-produced goods.
B) They are unattractive to U.S. buyers because they risk supporting a weak economy.
C) They are unattractive to U.S. buyers because they are a higher price than U.S.-produced goods.
D) They are attractive to U.S. buyers because the higher Canadian quality justifies the high prices.
E) They are unattractive to U.S. buyers because they are subject to tariffs and duties.

Question 58

What are the most important indicators for assessing the state of the Canadian economy?

A) GDP, the unemployment rate, trade balance, value of the Canadian dollar in terms of U.S. dollars
B) GDP, annual interest rate, the U.S. economy
C) interest rates, GDP, inflation
D) value of the Canadian dollar, inflation, trade with China
E) imports, the U.S. economy, interest rates

Question 59

The inflation level in 2014 was 1%, and Samantha Gibbons was just told her annual 2014 salary of $45,000 was not going to increase in 2015. How will this affect Samantha?

A) She will suffer from economic recession.
B) She will be able to purchase less.
C) She will suffer from inflation.
D) She will have reduced disposable income.
E) Her purchasing power will inflate.

Question 60

Which of the following would have the greatest positive impact on your U.S. vacation plans?

A) The U.S. experiences a recession.
B) The North American Free Trade Agreement is terminated.
C) Your airline merges with a European carrier.
D) The value of the Canadian dollar relative to the U.S. dollar increases by 5 cents.
E) The value of the Canadian dollar drops by 5 cents relative to the U.S. dollar.

Question 61

Which of the following is an example of an economic condition that will influence a firm's marketing activity?

A) Interest rates will decrease next year.
B) The birth rate will decline next year.
C) The rise in education levels will continue.
D) The role of women in society is changing.
E) Technology will continue to advance at a rapid pace.

Question 62

Consumers are expressing a stronger concern for health and welfare. Marketers are responding by

A) making changes to their products by packaging smaller single-serving sizes.
B) lobbying governments to change the laws around food labelling.
C) ensuring that health claims are at the forefront of all marketing communications efforts.
D) completely restructuring all their product lines to align with these concerns.
E) helping Canadians find more free time by reducing the working hours of company staff.

Question 63

Panasonic established the Green Plan 2018 initiative, which is

A) a plan led by the legal department to ensure compliance with all environmental regulations.
B) a marketing communications program designed to inspire consumers to make better choices.
C) a set of measures designed to create products that have less impact on the environment.
D) a branding initiative that shifts their corporate colours to shades of green.
E) a set of competitive actions that will ensure Panasonic earns higher profits in 2018.

Question 64

What is the term given to the generation of people simultaneously trying to take care of dependent children and aging relatives?

A) mini-boomers
B) caregivers
C) sandwich
D) blended family
E) dependers

Question 65

What is the name of the demographic group of which Ken and Irene, born in 1949 and 1951 respectively, are members?

A) baby boomer
B) mini-boomer
C) baby buster
D) sandwich generation
E) blended family generation

Question 66

The greying population in Canada is an example of which of the following forces?

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

Question 67

The concentration of wealth among higher-income groups in Canada is a trend most favourable to marketers of which of the following?

A) home-care services
B) ethnic cuisine
C) pharmaceuticals
D) town houses
E) Rolex watches

Question 68

What is a CMA?

A) central management aspect
B) central marketing area
C) Canadian metropolitan area
D) census metropolitan area
E) Canadian marketing area

Question 69

Home Depot's choice to strengthen its marketing by focusing on "breaking down the gender barrier and on appealing to culturally diverse market segments"demonstrates its consideration of which type of environmental force?

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

Question 70

About two-thirds of Canada's population growth over the last five years can be attributed to which factor?

A) economic growth
B) death rates
C) immigration
D) birth rates
E) improved health care

Question 71

Given the forecasts regarding the aging trends of the Canadian population, which of the following product segments is likely to grow the most?

A) products that extend longevity and vitality
B) toys
C) infant products
D) educational services and products
E) fashion clothing and accessories

Question 72

The trend toward the increasing use of online and mobile media is especially important to the marketer targeting

A) the sandwich generation.
B) the baby boomers.
C) blended families.
D) the grey market.
E) Generation Z.

Question 73

The growing success of drive-thrus, frozen prepared meals, and other such conveniences are a result of which environmental force?

A) food safety laws
B) lifestyle changes
C) technology improvements
D) declining disposable income
E) demographics

Question 74

What is the ultimate goal of CRM marketing?

A) to simplify the collection of market research information
B) to develop market strategies for each customer
C) to reduce the costs of acquiring a new customer
D) to mass market via computers
E) to zero in on a market niche

Question 75

What is the strategy where companies customize products to meet the precise needs of customers?

A) target of one
B) niche product
C) personal service
D) mass customization
E) bull's eye

Question 76

Which of the following trends in media usage is driving marketing now?

A) integrated media
B) targeted TV
C) online sales
D) television growth
E) Internet usage

Question 77

Marketing communications are emphasizing direct communication with individuals through which of the following media?

A) magazines
B) newspapers
C) television
D) radio
E) digital media

Question 78

Loyalty programs, such as Shoppers Drug Mart's Optimum points, encourage loyal purchasing behaviour. Loyalty programs are an example of CRM programs. What is the other essential function of these programs?

A) to provide customer information that can be analyzed
B) to provide rewards to the best customers
C) to provide market segmentation of customers
D) to increase sales
E) to enable direct marketing to customers

Question 79

What is the most important advantage that online and interactive communications technologies have over traditional communications media?

A) They have been readily adopted by all target markets.
B) They are more easily managed.
C) They enable constant change.
D) They enable two-way communication between the company and its customers.
E) They facilitate the creation of mass communication messages to customers.

Question 80

As of 2013, which media do consumers spend the most time with?

A) magazines
B) radio
C) television
D) the Internet
E) newspapers