Question 1

The direct market environment
A) includes customers, the company, and competitors.
B) consists of variables that can be controlled.
C) is broader in scope than the external environment.
D) includes economic and technological environments.
E) is made up of the political, legal, and social environments.

Accepted Answer

The direct market environment includes customers, the company, and competitors. It is the immediate environment that affects the company's operations and can be directly controlled or influenced. It is narrower in scope than the external environment and includes factors such as suppliers, distributors, and regulatory agencies. The economic and technological environments are part of the external environment. The political, legal, and social environments are also part of the external environment and can indirectly affect the direct market environment.

Question 2

When setting objectives for the whole firm, TOP MANAGEMENT should:
A) involve the marketing manager in the objective setting process.
B) set objectives that focus on the highest possible immediate profit potential.
C) stick to general objectives--in order to maintain flexibility.
D) set objectives beyond what can actually be achieved--so everyone will work harder.
E) all of the above.

Accepted Answer

Involving the marketing manager in objective setting will ensure that the objectives align with the firm's marketing goals and strategies. Setting objectives solely based on immediate profit potential may not align with long-term strategic goals and may lead the firm to miss out on future opportunities. Sticking to overly general objectives may not provide enough guidance for employees to achieve specific outcomes, while setting unattainable objectives may lead to frustration and demotivation among staff.

Question 3

SBUs are small businesses that try to compete with major divisions of larger multiproduct companies.

Accepted Answer

Strategic Business Units (SBUs) are divisions within a larger company that operate as independent entities, focusing on specific markets or products, not small businesses competing with larger companies.

Question 4

Which of the following statements about company objectives is True?
A) Company objectives should be stated in vague terms to provide flexibility to lower-level managers.
B) Company objectives should be set by top management with no input from marketing managers.
C) A good mission statement can substitute for more specific company objectives.
D) Company objectives should be compatible with each other.
E) All of the above.

Accepted Answer

Company objectives should be compatible with each other to ensure that they work together to ultimately achieve the overall goals of the company. Stating objectives in vague terms, setting them without input from relevant departments, or relying solely on a mission statement cannot ensure that they are compatible and aligned with each other.

Question 5

Nike claims in its Annual Report that "the reasons every NIKE employee comes to work every day is to create great product, to lead the athletic industry in innovation, and to serve the athlete." This is Nike's:
A) competitive barrier.
B) technology.
C) portfolio management.
D) mission statement.
E) competitor analysis.

Accepted Answer

The statement is Nike's mission statement which outlines its purpose and reason for existence.

Question 6

The basic objective of a firm should be to:
A) engage in some specific business activity that will perform a socially and economically useful function.
B) develop an organization to carry on the business and implement its strategies.
C) earn enough profit to survive.
D) All of the above.
E) Only B and C above.

Accepted Answer

The basic objective of a firm should be to engage in some specific business activity that will perform a socially and economically useful function, develop an organization to carry on the business and implement its strategies, and earn enough profit to survive. All three objectives are equally important for the success and sustainability of a firm. Therefore, option D is the correct choice.

Question 7

Portfolio management tends to emphasize current profitability and return on investment, often neglecting the long run.

Accepted Answer

Portfolio management often focuses on short-term financial metrics to assess performance, which can lead to a neglect of long-term strategic goals and sustainability.

Question 8

In the short run, a marketing manager usually cannot control:
A) the competitive environment.
B) the cultural environment.
C) the legal environment.
D) the economic environment.
E) Any of the above.

Accepted Answer

In the short run, a marketing manager usually cannot control the competitive environment, cultural environment, legal environment, or economic environment. These factors are outside of the control of a marketing manager and are often influenced by larger societal and economic forces. Therefore, the best choice is E, which indicates that none of these factors can be controlled by a marketing manager in the short run.

Question 9

Most industrial products tend to be near the "insensitive" end of the continuum of environmental sensitivity.

Accepted Answer

This is generally true as industrial products are designed to withstand harsh conditions and may not be as affected by environmental factors. However, there are exceptions to this such as biodegradable plastics or products that release harmful chemicals into the environment.

Question 10

All of the following are part of the direct market environment EXCEPT:
A) customers.
B) competitors.
C) the company itself.
D) the technological environment.

Accepted Answer

The direct market environment includes elements that the company can directly interact with, such as customers, competitors, and the company itself. The technological environment refers to the broader societal and economic forces that impact the company but are not necessarily directly controllable or influenced by the company. Therefore, option D, the technological environment, is not part of the direct market environment.

Question 11

If the risks of getting into international marketing are difficult to evaluate, it usually is best to start with a joint venture.

Accepted Answer

The answer of If the risks of getting into international...

Question 12

Marketing managers should remember that there are many variables in the ____________ that affect strategy planning.
A) economic and technological environments
B) competitive environment
C) cultural and social environment
D) political and legal environments
E) all of the above

Accepted Answer

All of the above options are factors that impact strategy planning for marketing managers. The economic and technological environments shape consumer preferences and behaviors, while the competitive environment influences pricing, advertising, and product offerings. The cultural and social environment often dictate what is socially acceptable and how products should be marketed, and the political and legal environments impact regulations and restrictions on advertising and promotion. Therefore, it is essential for marketing managers to consider all of these variables when creating and implementing their marketing strategies.

Question 13

Overall company objectives should:
A) be specific.
B) focus on returning some profit to the business.
C) be realistic and achievable.
D) be compatible with one another.
E) all of the above.

Accepted Answer

Overall company objectives should be specific, focused on returning some profit to the business, realistic and achievable, and compatible with one another. All of these factors are important for ensuring that the company's goals are clear, attainable, and aligned with its overall mission and vision. A lack of specificity or realism could lead to confusion or frustration, while incompatible goals could cause conflicts and hinder progress. Focusing on profitability is important for ensuring the company's ongoing sustainability and success. Therefore, all of these factors are key considerations when setting overall company objectives.

Question 14

A good mission statement should NOT
A) focus on a few key goals.
B) be a substitute for more specific objectives.
C) embrace everything the firm stands for.
D) supply guidelines when managers face difficult decisions.
E) none of the above is correct.

Accepted Answer

A good mission statement should not embrace everything the firm stands for, as this can lead to a vague and unclear statement that lacks focus. Instead, it should focus on a few key goals, provide guidelines for decision-making, and not be a substitute for specific objectives.

Question 15

Typically, firms need a hierarchy of objectives. Which of the following best represents a correct hierarchy of a firm's objectives?
A) Company objectives, sales promotion objectives, marketing objectives, promotion objectives.
B) Marketing objectives, company objectives, promotion objectives, sales promotion objectives.
C) Company objectives, marketing objectives, promotion objectives, sales promotion objectives.
D) Marketing objectives, promotion objectives, sales promotion objectives, company objectives.
E) Promotion objectives, sales promotion objectives, company objectives, marketing objectives.

Accepted Answer

A firm's primary objective is to achieve its company objectives, which may include increasing revenue, expanding market share, or investing in new technology. Marketing objectives, such as increasing brand awareness and targeting specific customer segments, are developed to help the firm achieve its overall company objectives. Promotion objectives, including advertising and public relations initiatives, are developed to support the marketing objectives. Finally, sales promotion objectives, such as offering discounts or special offers, are developed to support the promotion objectives. Therefore, the correct hierarchy of a firm's objectives is company objectives, marketing objectives, promotion objectives, and sales promotion objectives.

Question 16

The "continuum of environmental sensitivity" suggests that industrial products are more sensitive to the cultural environments in which they are placed than high-style consumer products.

Accepted Answer

The "continuum of environmental sensitivity" suggests that high-style consumer products (like fashion or luxury goods) are more sensitive to the cultural environments in which they are placed than industrial products, due to their closer ties to individual identities and cultural tastes.

Question 17

According to the text, which of the following is NOT a basic guideline for setting a firm's objectives?
A) Engaging in specific activities that will perform an economically useful function.
B) Identifying its current and prospective competitors.
C) Earning enough profit to survive.
D) Developing an organization to carry on the business and implement its strategies.
E) Ensuring that the firm's activities are socially useful.

Accepted Answer

Identifying current and prospective competitors is not a basic guideline for setting a firm's objectives; it is more related to strategic planning and market analysis.

Question 18

Company objectives
A) should be set within the framework of marketing objectives.
B) are made redundant by mission statements.
C) should always be overly ambitious.
D) should only be revised every five years.
E) guide managers as they search for and evaluate opportunities.

Accepted Answer

Company objectives should guide managers as they search for and evaluate opportunities. They should not be set within marketing objectives alone but should encompass the overall goals and strategies of the company. Mission statements are not a replacement for company objectives as they focus on the purpose and values of the organization. Company objectives should be ambitious but also realistic and achievable. They should be reviewed and revised periodically to ensure they remain relevant and aligned with the company's vision and market conditions.

Question 19

In multiproduct firms, the emphasis in portfolio management is usually on the long run rather than the short run.

Accepted Answer

The answer of In multiproduct firms, the emphasis in portfolio...

Question 20

A mission statement
A) should never be revised.
B) sets out the organization's basic purpose for being.
C) should embrace everything rather than focus on a few key goals.
D) substitutes for more specific objectives.
E) supplies guidelines for general situations but not for situations where managers face difficult decisions.

Accepted Answer

A mission statement sets out the organization's basic purpose for being. It should be revisited periodically and revised if necessary to ensure that it still reflects the organization's purpose and values. It should be specific and focused, rather than trying to embrace everything, and it should complement more specific objectives rather than replacing them. It can provide guidelines for a wide range of situations, including difficult decisions.

Quiz 3: Evaluating Opportunities in the Changing Marketing Environment

The direct market environment

When setting objectives for the whole firm, TOP MANAGEMENT should:

SBUs are small businesses that try to compete with major divisions of larger multiproduct companies.

Which of the following statements about company objectives is True?

Nike claims in its Annual Report that "the reasons every NIKE employee comes to work every day is to create great product, to lead the athletic industry in innovation, and to serve the athlete." This is Nike's:

The basic objective of a firm should be to:

Portfolio management tends to emphasize current profitability and return on investment, often neglecting the long run.

In the short run, a marketing manager usually cannot control:

Most industrial products tend to be near the "insensitive" end of the continuum of environmental sensitivity.

All of the following are part of the direct market environment EXCEPT:

If the risks of getting into international marketing are difficult to evaluate, it usually is best to start with a joint venture.

Marketing managers should remember that there are many variables in the ____________ that affect strategy planning.

Overall company objectives should:

A good mission statement should NOT

Typically, firms need a hierarchy of objectives. Which of the following best represents a correct hierarchy of a firm's objectives?

The "continuum of environmental sensitivity" suggests that industrial products are more sensitive to the cultural environments in which they are placed than high-style consumer products.

According to the text, which of the following is NOT a basic guideline for setting a firm's objectives?

Company objectives

In multiproduct firms, the emphasis in portfolio management is usually on the long run rather than the short run.

A mission statement