Deck 3: Analyzing the Marketing Environment

Question 1

LandPort Transportation and Omega Warehousing help companies move and stock goods from their manufacturing plants to their destinations. These two businesses are examples of ________.

A) resellers
B) marketing services agencies
C) financial intermediaries
D) physical distribution firms
E) wholesalers

Answer 1

D

Question 2

A company's marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, and others. These organizations and groups are also known as ________.

A) media publics
B) marketing intermediaries
C) customers
D) citizen-action publics
E) internal publics

Answer 2

D

Question 3

Sparex Inc. is a manufacturer of metal bolts that are used by Boilex Inc. to manufacture heavy machineries. In this instance, Sparex acts as a ________.

A) financial intermediary
B) supplier
C) retailer
D) customer
E) local public

Answer 3

B

Question 4

Which is NOT part of the company environment that influences marketing decisions?

A) accounting
B) engineering
C) manufacturing
D) sales
E) retailers

Question 5

Which of the following is true with regard to media publics?

A) The primary function of this group is to protect the interests of minority groups.
B) This group carries news, features, and editorial opinion.
C) The primary function of this group is to critique the marketing decisions of companies.
D) This group includes neighborhood residents and community organizations.
E) This group directly influences the company's ability to obtain funds.

Question 6

Maria works for Sigma Inc., a firm that helps companies target and promote their products to the right markets. Sigma is most likely a ________.

A) financial intermediary
B) physical distribution firm
C) marketing services agency
D) reseller
E) wholesaler

Question 7

Jonathan works for a firm that assists companies in promoting, distributing, and selling their products to end consumers. The firm Jonathan works for is a ________.

A) licensor
B) supplier
C) marketing intermediary
D) local public
E) general public

Question 8

Boxes, Inc. sells products to end users or to other companies that will sell to end users. Boxes, Inc. is a ________.

A) reseller
B) marketing services agencies
C) financial intermediaries
D) physical distribution firms
E) wholesalers

Question 9

________ include banks, credit companies, insurance companies, and other businesses that help insure against the risks associated with the buying and selling of goods.

A) Financial intermediaries
B) Physical distribution firms
C) Resellers
D) Marketing services agencies
E) Wholesalers

Question 10

The interrelated departments within a company that influence marketing decisions form the ________ environment.

A) cultural
B) economic
C) company
D) political
E) technological

Question 11

A consumer organization in Ohio has challenged the marketing decision of a local firm alleging it to be against the larger social interest. In this instance, the firm is challenged by a(n) ________ public.

A) internal
B) general
C) government
D) citizen-action
E) media

Question 12

Companies can succeed against their competitors by all of the following except ________.

A) providing greater customer value and satisfaction
B) better meeting the needs of target customers
C) positioning their offerings strongly against competitors' offerings in the minds of consumers
D) considering their own size and position compared to the competition
E) providing the same product as the competition

Question 13

Sam has been directed to study the demographic, economic, political, and cultural forces that affect an organization. In this instance, Sam has been directed to study the ________ of the organization.

A) macroenvironment
B) microenvironment
C) internal environment
D) marketing mix
E) marketing intermediaries

Question 14

Dan has been directed to study the forces close to a company that affect its ability to serve its customers, such as the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. In this instance, Dan has been directed to study the ________ of the company.

A) macroenvironment
B) microenvironment
C) technological environment
D) demographic environment
E) political environment

Question 15

________ help companies stock and move goods from their points of origin to their destinations.

A) Retailers
B) Physical distribution firms
C) Marketing services agencies
D) Resellers
E) Suppliers

Question 16

________ provide the resources needed by a company to produce its goods and services.

A) Retailers
B) Marketing services agencies
C) Resellers
D) Suppliers
E) Financial intermediaries

Question 17

Which group includes neighborhood residents and community organizations?

A) local publics
B) government publics
C) internal publics
D) citizen-action publics
E) media publics

Question 18

Which of the following terms is used to describe the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers?

A) marketing environment
B) marketing orientation
C) strategic planning
D) target markets
E) marketing mix

Question 19

Which of the following is a component of a firm's microenvironment?

A) customer demographics
B) economic recessions
C) population shifts
D) marketing intermediaries
E) technological changes

Question 20

Which of the following groups influences the company's ability to obtain funds?

A) financial publics
B) local publics
C) general publics
D) citizen-action publics
E) internal publics

Question 21

Companies that watch variables such as income, cost of living, and interest rates, are more likely to be negatively affected by an economic change such as a recession or boom.

Question 22

________ markets buy goods and services for further processing.

A) Business
B) Reseller
C) Wholesale
D) Consumer
E) Retail

Question 23

Local publics include consumer organizations, environmental groups, minority groups, and others.

Question 24

Refer to the scenario below to answer the following question(s).
Casey Brickly opened The Landing, a convenience store on the north shore of Witmer Lake, in 1962. With a sandwich counter on one side and a bait shop and grocery on the other, The Landing was an immediate hit with weekend lake visitors and local residents alike. In the summer, boaters parked at the piers and bought all their fishing needs, such as rods and reels, bait, snacks, and soft drinks at The Landing. Even during the winter months, snowmobilers and ice fishermen were lured to The Landing for snacks and hot coffee or hot chocolate.
As time passed, the business changed and grew tremendously. What was formerly a weekend tourist area gradually became a full-fledged residential area. Many of the houses, which were built as cottages in the 1950s and 1960s, were remodeled into residential homes. By the end of the 1970s, the days of small motorboats and 10 mile-per-hour speed limits were gone; skiing and fast speedboats became the rage. Through it all, The Landing continued to attract flocks of patrons.
In the 1980s, however, Casey started to realize that the grocery area in The Landing could not compete with larger local retailers. He eventually enlarged the sandwich counter, transforming the bait shop and grocery into a restaurant with a full menu typical of any diner. "Getting rid of the bait shop was hard to do," Casey admitted. "I still had a summer crowd that relied on us for their fishing needs, but we couldn't survive a whole year on four months of profit."
In the early 2000s, the atmosphere of Witmer Lake and the neighboring lakes became upscale. "I could see that people were spending more on their speed boats than what they had originally paid for their cottages!" Casey exclaimed. Many of the cottages were inherited by children and grandchildren of the original owners. Once again, the scene started to change as many of the lake houses were used only as weekend lake homes. Unlike the previous generation, a vast number of the current owners could afford to live closer to their jobs while maintaining lake homes. "At this point, business wasn't growing," Casey said.
As local competition continued to increase, Casey converted the diner of The Landing into a bar with a lounge area. "The change might have been too drastic," Casey said, "but it was the only way we could maintain a strong, year-round business in spite of the population shifts and competitive forces."
Which of the following microenvironment actors has had the most influence on The Landing?

A) competitors
B) suppliers
C) marketing intermediaries
D) resellers
E) citizen-action publics

Question 25

Business markets buy goods and services for further processing or for use in their production processes.

Question 26

Sparks Inc. has a growing ________ market in the United States consisting of individuals and households that buy Sparks' products for personal use.

A) consumer
B) government
C) business
D) international
E) financial

Question 27

Government markets consist of government agencies that buy goods and services ________.

A) to produce public services
B) to resell at a profit
C) for further processing
D) for personal consumption
E) that are generally of poor quality

Question 28

Government agencies such as the Food and Drug Administration and the Consumer Product Safety Commission investigate and ban potentially unsafe products. Regulations created by these and other agencies result in higher research costs and longer times between new product ideas and their introduction.

Question 29

Cape Sky Inc., an international insurance and financial services company, is the primary sponsor of the annual New York City Marathon, which is attended by over one million fans and watched by approximately 300 million viewers worldwide. The Cape Sky logo and name are displayed throughout the racecourse. Cape Sky most likely sponsors this event in order to appeal to which of the following types of publics?

A) financial publics
B) citizen-action publics
C) government publics
D) general publics
E) internal publics

Question 30

The aim of the entire value delivery network is to serve target customers and create strong relationships with them.

Question 31

Marketing services agencies are the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the company target and promote its products to the right markets.

Question 32

The microenvironment consists of larger societal forces that affect a company, such as demographic, economic, political, and cultural forces.

Question 33

The macroenvironment consists of the factors close to the company that affect its ability to serve its customers, such as suppliers, customer markets, competitors, and publics.

Question 34

Marketing success requires building relationships with other company departments, suppliers, marketing intermediaries, competitors, various publics, and customers, which combine to make up the company's value delivery network.

Question 35

A business's suppliers are the most important actors in the company's microenvironment.

Question 36

Price & Malone Corp., a company based in Houston, caters to a market of individuals and households that buy goods and services for personal consumption. Price & Malone caters to a ________ market.

A) business
B) reseller
C) government
D) consumer
E) wholesale

Question 37

Rachel works for a furniture company in Ireland. She is responsible for buying and selling goods at a profit to small retailers. Rachel most likely operates in a ________ market.

A) business
B) reseller
C) wholesale
D) consumer
E) retail

Question 38

Trudie Jones works for a distribution channel firm that helps several electronics companies find customers or make sales to them. Trudie works for a reseller.

Question 39

Workers, managers, and members of the board are examples of ________ publics.

A) general
B) internal
C) local
D) citizen-action
E) media

Question 40

A company's marketing environment excludes the forces outside the marketing department that affect marketing management's ability to build and maintain successful relationships with target customers.

Question 41

What is a "public" in terms of the marketing environment? In a short essay, briefly describe the different types of publics that marketers must consider and explain how marketing might communicate with these publics.

Question 42

The single most important demographic trend in the United States is the ________.

A) changing age structure of the population
B) mobility of families
C) changing family structure of the population
D) increasing number of professional jobs
E) increasing birth rate

Question 43

A trend has been people's growing mastery over nature through technology and the belief that nature is bountiful, but also the realization that it is finite and fragile.

Question 44

Which of the following generations is the most educated to date?

A) Lost Generation
B) Baby boomers
C) Millennials
D) Generation X
E) Silent Generation

Question 45

Wholesome Soups, a maker of organic soups, is starting a new marketing campaign emphasizing the ease of preparing and eating Wholesome Soups. Print, television, and Internet ads feature college students enjoying Wholesome Soups in between classes and during study breaks. Wholesome Soups' new marketing campaign is most likely aimed at which of the following?

A) Baby Boomers
B) Gen Zers
C) Gen Xers
D) Millennials
E) the SOHO market

Question 46

Among the generational groups in U.S population, the ________ are still the wealthiest generation in U.S. history.

A) baby boomers
B) Generation Xers
C) Millennials
D) echo boomers
E) Silent Generation

Question 47

Which of the following is a trend that depicts the increasingly nontraditional nature of today's American families?

A) the low percentage of working women in the workforce
B) the low percentage of married couples with children
C) the sharply declining number of dual-income families
D) the sharply declining number of stay-at-home dads
E) the decreasing reliance on convenience foods and services

Question 48

Marketers can group people in a number of ways, including by birth date. However, the following combination of groups has proven to be more effective: ________.

A) income, lifestyle, life stage
B) profession, common values they seek in products they buy, lifestyle
C) lifestyle, life stage, common values they seek in products they buy
D) place of residence, life stage, lifestyle
E) race or nationality, lifestyle, common values they seek in products they buy

Question 49

What are marketing intermediaries and what are the various types?

Question 50

Marketers target Generation Z because they ________.

A) listen to their parents and follow their examples
B) dislike technology
C) spend an estimated $44 billion annually of their own money
D) prefer shopping in brick-and-mortar stores with actual products
E) have long attention spans and are easily targeted

Question 51

How have large retailers such as Walmart changed the dynamics of partnering with resellers?

Question 52

Which of the following is true of the baby boomers?

A) They tend to see themselves as far older than they actually are.
B) They represent a rapidly shrinking market for new housing and home remodeling.
C) They are long past their peak earning and spending years.
D) They control an estimated 70 percent of the United States' disposable income.
E) They have utter fluency and comfort with digital technology.

Question 53

The marketing team of 7 Star Inc., a company manufacturing smartphones, is currently studying the size, density, location, age, and occupation of its target market. Which of the following environments is being studied in this scenario?

A) demographic environment
B) political environment
C) economic environment
D) technological environment
E) cultural environment

Question 54

Which of the following is true of the Millennials?

A) They are the children of baby boomers and were born between 1977 and 2000.
B) They control an estimated 70 percent of the disposable income in the United States.
C) They have reached their peak earning and spending years.
D) They were the first to grow up in the Internet era.
E) They are less immersed in technology than Gen Xers.

Question 55

Marketing management can control environmental forces. A reactive approach is, therefore, the most beneficial approach to the marketing environment.

Question 56

Gen Zers are highly mobile, connected, and social. They base their purchases on ________.

A) input from their friends
B) text messages
C) social media ratings
D) product research on their own
E) their parents' opinions

Question 57

Which of the following is true of Gen Xers?

A) They are considerably larger than the boomer generation.
B) They were the first to grow up in the Internet era.
C) They are less educated than the baby boomers.
D) They are more materialistic than the Millennials.
E) They rarely research a product before purchasing it.

Question 58

Which of the following generational groups is most comfortable with digital technology and embraces that technology?

A) Generation X
B) Millennials
C) Baby Boomers
D) Silent Generation
E) Lost Generation

Question 59

Mary Adams is helping her company develop a marketing program for a new product line. The program is designed to appeal most to less materialistic consumer groups who are likely to prize experience, not acquisition. The marketing program is most likely designed to appeal to which of the following demographic groups?

A) Generation X
B) Millennials
C) Echo Boomers
D) Silent Generation
E) Lost Generation

Question 60

Who are the major players in a company's microenvironment? Explain the role that each actor plays.

Question 61

Currently, in the United States, job growth is the strongest for ________.

A) blue collar workers
B) manufacturing workers
C) professional workers
D) construction workers
E) sanitation workers

Question 62

Which of the following is an accurate statement about the income distribution of the American population?

A) The top 20 percent of earners achieves 68 percent of the country's adjusted gross income.
B) The bottom 40 percent of earners captures just 11 percent of total income.
C) The top 5 percent of American earners captures 18 percent of all income.
D) The distribution of income allows most companies to target earners of all income levels.
E) Changes in income and interest rates minimally impact spending patterns.

Question 63

The economic environment consists of economic factors that affect ________.

A) cultural patterns of communities
B) entrepreneurial orientation of a population
C) the quality of technological innovation
D) consumer purchasing power
E) the natural environment

Question 64

Which of the following demographic trends is the most likely cause for a rapid increase in telecommuting?

A) the migration toward micropolitan and suburban areas
B) the migration from rural to metropolitan areas
C) the increasing number of traditional households
D) the growing percentage of married couples who do not have children
E) the declining number of manufacturing workers in today's workforce

Question 65

Which of the following situations is expected to enhance the use of targeted advertising messages by marketers?

A) increase in derived demand in the market
B) increase in ethnic populations
C) rising global inflation rates
D) inadequate quality control
E) low advertising budgets

Question 66

Over the past two decades, the U.S. population has shifted toward the ________ states.

A) Northern
B) Northeast
C) Sunbelt
D) Midwest
E) Corn belt

Question 67

Which of the following is true with regard to the diversity segment of U.S. adults with disabilities?

A) Most individuals with disabilities are active consumers.
B) The market represented by U.S. adults with disabilities is smaller than that represented by African Americans or Hispanics.
C) The diversity segment, U.S. adults with disabilities, is a rather unattractive segment for the tourism industry.
D) The annual spending power of U.S. adults with disabilities is less than $100 billion.
E) Most companies are reluctant to reach out to consumers with disabilities.

Question 68

In the context of geographical shifts in population, the migration toward ________ areas has resulted in a rapid increase in the number of people who telecommute.

A) urban
B) remote
C) rural
D) metropolitan
E) micropolitan

Question 69

Which of the following statements about income distribution in the United States is NOT true?

A) Over the past several decades, the rich have grown richer.
B) Over the past several decades, the middle class has grown faster than other classes.
C) Over the past several decades, the poor have remained poor.
D) The top 20 percent of earners capture over 50 percent of all income.
E) The top five percent of American earners get nearly 22 percent of the country's adjusted gross income.

Question 70

Consumers' spending patterns since the Great Recession include ________.

A) spending freely, without caution
B) buying less and looking for greater value in what they buy
C) amassing record levels of debt
D) experiencing rapid increases in housing values
E) participating in a booming stock market

Question 71

Which of the following is an accurate statement about the diversity of the American population?

A) African Americans represent the largest non-white segment of the population.
B) More than 20 percent of the people living in the United States were born in another country.
C) By 2050, the Asian population is estimated to remain at 4.7 percent.
D) By 2060, Hispanics are estimated to be 28 percent of the population.
E) The United States has become more of a "melting pot" than a "salad bowl."

Question 72

An increasing number of American workers currently work from their homes or remote offices and conduct their business by phone or the Internet. This trend has created a ________.

A) booming real estate market in the big cities
B) booming SOHO market
C) decline in the demand for convenience foods
D) decline in the demand for financial services
E) steady increase in global enterprises

Question 73

By 2060, ________ will be an estimated 14 percent of the U.S. population.

A) African Americans
B) Asians
C) Hispanics
D) Native Americans
E) Native Hawaiians

Question 74

In the 1950s, Americans made a massive exit ________.

A) from the South to the Northeast
B) from the West to the Midwest
C) to foreign countries
D) from the cities to the suburbs
E) from the coastal towns to the cities

Question 75

Soon-Yi Park's chain of travel agencies has identified the lesbian, gay, bisexual, and transgender community as a growing market that spends an increasing percentage of its income on travel. Which of the following would be the LEAST effective component of a marketing plan for Soon-Yi to take advantage of this opportunity?

A) develop a presence on LGBT-oriented social networking sites
B) position his agency as focused on specialized experiences
C) implement a mass marketing campaign
D) place specially targeted ads in gay-themed publications
E) advertise on LOGO, the cable television network aimed at gays and lesbians and their friends and family

Question 76

Which of the following has lost population in the past two decades?

A) California
B) Florida
C) the Western states
D) the Northeast states
E) the Southern states

Question 77

A value marketer is most likely to ________.

A) offer consumers superior quality of goods and services at a very high price
B) offer consumers only those products that are associated with status and prestige
C) offer consumers low quality goods and services at very low prices
D) offer consumers a balanced combination of product quality at a fair price
E) deny discounts to consumers to increase profits

Question 78

In the United States, job growth currently is the weakest for ________.

A) white collar workers
B) manufacturing workers
C) salespeople
D) telecommuters
E) professional workers

Question 79

Micropolitan areas are ________.

A) likely to have a higher crime rate than metropolitan areas
B) less likely to attract telecommuters
C) likely to offer the same advantages as metropolitan areas
D) less likely to offer market expansion opportunities
E) generally unattractive to niche marketers

Question 80

With an expected increase in ethnic diversity within the American population, marketers are most likely to place a greater emphasis on ________.

A) geographic segmentation
B) targeted advertising messages
C) mass marketing
D) "do well by doing good" missions
E) corporate giving