Deck 2: The Global Marketing Environment

Question 1

Which of the following can have a profound effect on a company's prosperity?

A)The general state of a nation's and the world economy
B)The general state of a nation's economy
C)The general state of the world economy
D)None of the above

Answer 1

A

Question 2

The economic environment has a critical impact on the success of companies through its effect on which of the following?

A)Profit and turnover
B)Success and prices
C)Supply and demand
D)Sales and prices

Answer 2

C

Question 3

The key actors in the firm's immediate environment that affect its capabilities to operate effectively in its chosen markets are which of the following?

A)Customers, staff, distributors and competitors
B)Customers, staff, distributors and retailers
C)Suppliers, distributors, customers and retailers
D)Suppliers, distributors, customers and competitors

Answer 3

D

Question 4

_______ rates are an important aspect of the economy that impact on businesses as they affect the rate at which money is borrowed by businesses and individuals.

A)Interest
B)Exchange
C)Rent
D)Mortgage

Question 5

Distributors are an important element of the microenvironment as they provide many valuable services, such as ________.

A)making products available to customers
B)providing specialist services
C)breaking bulk
D)all of the above

Question 6

Low growth rates in an economy can affect which of the following?

A)Can affect consumer spending power
B)Can affect competitors' pricing strategies
C)Can affect investment in advertising
D)Can affect consumer confidence

Question 7

Which of the following is an accurate characteristic of the macroenvironment?

A)The macroenvironment is largely uncontrollable
B)The macroenvironment is largely controllable
C)The macroenvironment is influenced by the size and resources of a company
D)The macroenvironment is influenced by the products and services that a company offers

Question 8

_______ are an important element of the microenvironment as ultimately, they determine the success or failure of a business.

A)Suppliers
B)Distributors
C)Competitors
D)Customers

Question 9

Which of the following is not a major economic influence on the marketing environment of companies?

A)Economic growth and unemployment
B)The development and implications of the Single European Market
C)Further political integration of the European Union
D)Interest and exchange rates

Question 10

The marketing environment consists of which of the following?

A)Microenvironment and Macroenvironment
B)Microenvironment and Mini Environment
C)Macroenvironment and Mini Environment
D)Mini Environment and Major Environment

Question 11

Which of the following are not major macroeconomic forces that affect marketing decisions?

A)Physical, competitors and economic
B)Social, economic and legal
C)Social, legal and technological
D)Physical, technological and legal

Question 12

In times of economic recession, consumers tend to shop more at which of the following?

A)Supermarkets
B)Luxury stores
C)High street stores
D)Discount Stores

Question 13

Which of the following statements is true?

A)A marketing-orientated firm looks at exploiting any opportunities in foreign markets.
B)A marketing-orientated firm looks internally at the organization and adapts, taking advantages of strengths, and to minimise potential weaknesses.
C)A marketing-orientated firm looks outward to the environment in which it operates adapting to take advantage of emerging opportunities, and to minimise potential threats.
D)None of the above

Question 14

The marketing environment consists of which of the following?

A)Actors and forces
B)Customers and staff
C)Competitors and staff
D)None of the above

Question 15

The marketing environment affects which of the following?

A)It affects primarily a company's pricing strategies and tactics
B)It affects primarily a company's advertising and promotional strategies
C)It affects primarily a company's capability to operate effectively in providing products and services to its customers
D)It affects primarily a company's competitors and the company's ability to compete in their designated niche market

Question 16

To be successful in the marketplace, companies must not only consider customers as an important element of the microenvironment, but must also consider ________ and how the company can gain a differential advantage over them.

A)competitors
B)suppliers
C)distributors
D)employees

Question 17

Which of the following are major macroeconomic forces that affect marketing decisions?

A)Economic, physical and technological
B)Economic, competitors and social
C)Social, legal and distributors
D)Social, competitors and legal

Question 18

The macroeconomic forces shape the character of which of the following?

A)The future marketing plans for a company
B)The strengths and weaknesses of a company
C)The opportunities and threats facing a company
D)The immediate capabilities of a company

Question 19

In times of economic recession, consumers tend to do which of the following?

A)To accelerate spending, hoping that the recession will end
B)To postpone spending and/or become more cost conscious
C)To postpone spending and/or buy mainly commodity items
D)To accelerate spending, looking for value for money items

Question 20

Suppliers are important actors in the _______ as powerful suppliers can extract profitability from an industry by restricting the supply of essential components and forcing prices up.

A)microenvironment
B)macroenvironment
C)minienvironment
D)majorenvironment

Question 21

International marketers must take account of the fact that floating _______ rates (rates at which one currency buys another) can have a significant impact on the profitability of a company's international operations.

A)interest
B)exchange
C)rent
D)mortgage

Question 22

Taxation is an economic factor that impacts on consumers' levels of _______ income (the amount of money available after essentials) and thereby influences the purchase of goods and services.

A)discretionary
B)preliminary
C)recessionary
D)progressionary

Question 23

Which of the following types of product is more difficult to standardize due to local preferences?

A)Industrial Goods
B)Consumer durables
C)Clothing
D)Food

Question 24

Standardization appears to depend mainly upon which of the following?

A)Product type
B)Competitors' offering
C)Manufacturing costs
D)Newness of product

Question 25

What is "parallel importing"?

A)Parallel importing is where similar goods are sourced from different countries according to supply and demand
B)Parallel importing is where goods that are sold in different countries at varying prices are exported from low to high price countries
C)Parallel importing is where goods are sourced from different countries taking advantage of different taxation rates
D)All of the above

Question 26

How many consumers are in the European Union?

A)120 million consumers
B)320 million consumers
C)520 million consumers
D)820 million consumers

Question 27

Inflation is an economic factor that measures the cost of living in an economy. Rapid rises in inflation affect marketing as they affect the prices of goods and services and also _______ the future value of savings, investments and pensions.

A)grow
B)maintain
C)increase
D)reduce

Question 28

NAFTA stands for:

A)North American Free Trade Association
B)North American Free Trade Agreement
C)North American Financial Trade Agreement
D)North American Financial Tariff Association

Question 29

When considering the social environment, two major aspects need to be examined: demographic changes and _______ differences that exist between nations.

A)legal
B)political
C)cultural
D)economic

Question 30

Standardization of "FMCG's" is more difficult due to differences in local tastes. "FMCG" stands for which of the following?

A)Fast Moving Consumer Goods
B)Fixed Managed Company Goods
C)Fair, Modest, Competitively-Priced Goods
D)None of the Above

Question 31

Which of the following factors has promoted the realization of pan- European marketing?

A)The introduction of the euro
B)Increasing mobility of consumers
C)Increasing information flow across borders
D)All of the above

Question 32

Which of the following is not a key social force that has implications for marketing?

A)Changes in the demographic profile of the population
B)Increasing levels of globalization
C)Social responsibility and marketing ethics
D)The influence of the consumer movement

Question 33

Businesses often try to influence political processes through the use of _______. This involves businesses attempting to influence decisions made by officials in government, most often legislators or regulatory agencies.

A)lobbying
B)positioning
C)begging
D)targeting

Question 34

Which company is perceived as the world's most ethical company?

A)Accenture
B)ABB Asea Brown Boveri Ltd.
C)Capgemini
D)Atlas Copco AB

Question 35

How many countries have as their common currency, the euro?

A)17
B)10
C)23
D)15

Question 36

Which country is not a member of the European Union?

A)United Kingdom
B)Norway
C)Finland
D)Greece

Question 37

Which of the following factors has hindered the realization of pan- European marketing in the EU?

A)Trade Barriers
B)Persistence of local tastes
C)Some countries have not adopted the Euro
D)All of the above

Question 38

Which of the following is an emerging implication of the development of the "Single European Market"?

A)Globalization
B)International Marketing
C)Global Marketing
D)Pan- European Marketing

Question 39

Many decisions may be influenced by political legal forces which determine the rules by which business is conducted. Political forces describe the close connections that politicians and senior business people often have, sometimes known as '_______ capitalism'

A)crony
B)phony
C)felony
D)proxy

Question 40

ASEAN stands for:

A)Advertising Standards, Ethics and Negotiations
B)Association of Standards for Economic Activity in Norway
C)Association of South East Asian Nations
D)Advertising Standards for European and Asian Nations

Question 41

The dramatic growth in the world's population presents _______ for marketers in the form of growing markets but also raises questions about the sustainability of this global growth.

A)opportunities
B)threats
C)weaknesses
D)problems

Question 42

Demographic forces affect which of the following?

A)Changes in population
B)Changes in technology
C)Changes in the marketplace
D)Changes in climate

Question 43

Recent demographic trends have led to a growth in the number of household units and a _______ in household sizes.

A)fall
B)increase
C)growth
D)ascent

Question 44

Which of the following groups need to pay particular attention to the possible impact of culture?

A)International marketers
B)Key account managers
C)Marketers
D)Top management

Question 45

The rapid movement of global populations has meant that _______ based subcultures have sprung up in most developed countries, creating potentially lucrative niche markets for products and services.

A)ethnically
B)socially
C)age
D)gender

Question 46

Which of the following is a major demographic force?

A)Increasing marketing opportunities
B)Increasing foreign competition
C)Increasing technological innovation
D)Increasing world population

Question 47

The moral principles and values that govern the actions and decisions of an individual or group refer to which of the following?

A)Norms
B)Religion
C)Ethics
D)Culture

Question 48

What is meant by the term "cause- related marketing"?

A)Cause-related marketing is philanthropy where organizations give money to a charity or a cause not expecting any return for their donation, thereby boosting their corporate image
B)Cause-related marketing is a commercial activity by which businesses and charities or causes form a partnership with each other to market an image, goods or service for mutual benefit
C)Cause- related marketing is where a company adopts an issue or a concern and acts as a public advocate of the issue or concern
D)Cause- related marketing is where a company sets forward a long term marketing objective for a company to achieve. This objective helps form a company's mission statement

Question 49

Which of the following is a major demographic which will affect demand for products and services

A)Rising proportions of people over 60
B)A fall in proportion of people over 60
C)An increase in 30 to 40 year olds
D)An increase in the current birth rate

Question 50

What is meant by "grey purchasing power"?

A)"Grey purchasing power" refers to the fact that retailers are increasingly sourcing product from low priced countries, not using manufacturers established channels of distribution, thereby creating a "grey market".
B)"Grey purchasing power" refers to the fact that the over 65-year-old market is of increasing importance for marketers.
C)"Grey purchasing power" refers to the fact that the over 45-year-old market is of increasing importance for marketers.
D)None of the above

Question 51

_______ has given rise to significant movement of labour from poorer areas of Central and Eastern Europe to the wealthier Western European countries.

A)Standardization
B)Globalization
C)Localization
D)Nationalization

Question 52

Which of the following is a macroenvironmental force?

A)Customers
B)Suppliers
C)Competitors
D)Social

Question 53

Which of the following is a major demographic force?

A)Changing technology
B)Increases in consumer spending
C)Increases in competition
D)Changing age distribution

Question 54

What is meant by the term "green marketing"?

A)The term 'green marketing' is used to describe marketing efforts to produce and promote products, which meet legal regulations concerning the environment.
B)The term 'green marketing' is used to describe marketing efforts to produce and promote organic food products
C)The term 'green marketing' is used to describe marketing efforts to produce, promote, and reclaim environmentally sensitive products
D)None of the above

Question 55

What is meant by the term "social reporting"?

A)Social reporting is where firms conduct independent audits of their social performance
B)Social reporting is where firms act as issue advocates
C)Social reporting is where firms acknowledge and rectify any ethical or environmental misdemeanours
D)Social reporting is where firms conduct market research on latest consumer trends

Question 56

Why is corporate social responsibility a key part of business strategy?

A)Because of the close scrutiny of pressure groups
B)Because of the close scrutiny of institutional investors
C)Because of the close scrutiny of shareholders
D)All of the above

Question 57

The combination of values, beliefs and attitudes that is possessed by a national group or sub-group is called:

A)Religion
B)Norms
C)Culture
D)Society

Question 58

Corporate social responsibility refers to which of the following?

A)Refers to the ethical principle that a person or an organization should be accountable for how its acts might affect the physical environment and the general public
B)Refers to that company's need to be aware that they have a responsibility to society and to meet their minimum legal responsibilities
C)Refers to companies having "to be seen to be green" in their policies, processes and products
D)Refers to companies having to meet all national and international environmental regulations

Question 59

International marketers must be aware of the significant differences that exist between cultures. For example, The East is deeply culturally bound in complex _______ networks, whereas greater levels of independence are more important for those living in the West.

A)company
B)brand
C)business
D)social

Question 60

There is huge variation in population growth worldwide. Population growth is slowing in the _______ world and increases in population are forecast in Africa, Asia and Latin America.

A)developing
B)developed
C)emerging
D)third

Question 61

The process of monitoring and analysing the marketing environment of a company is called:

A)Situational Analysis
B)Market Analysis
C)Market Scanning
D)Environmental Scanning

Question 62

How can political and legal forces influence marketing decisions?

A)By determining hoe products can be segmented, targeted and positioned
B)By determining the level of foreign competition
C)By determining health and safety regulations under which a firm operates
D)By determining the rules by which business can be conducted

Question 63

Recognition of the finite nature of the world's resources has stimulated a drive towards conservation. This is reflected in the demand for ________.

A)energy-efficient housing
B)fuel-efficient cars
C)solar panels
D)all of the above

Question 64

Pollution, climate change and animal testing are all examples of which of the following macroenvironmental forces?

A)Political
B)Social
C)Ecological
D)Legal

Question 65

Potentially relevant environmental forces are those that:

A)Are controllable by the company
B)Are uncontrollable by the company
C)Have the most likelihood of affecting future business prospects
D)Have the most likelihood of affecting future costs

Question 66

In general, who in the organization is not responsible for monitoring and analyzing the company's marketing environment?

A)Senior Management Team
B)Front line Staff
C)Separate Organizational Unit
D)All of the above

Question 67

Which of the following is not part of a complete environment scanning system?

A)Keep information on the business environment for top management use only
B)Provide a focal point for the interpretation and analysis of environmental information identified by other people in the company
C)Monitor trends, issues and events and study their implications
D)All of the above

Question 68

Political action may translate directly into legislation. One key area in Europe where regulators act is ensuring that competition is fair, legal and operates in a way so that consumers and _______ benefit.

A)society
B)shareholders
C)suppliers
D)employees

Question 69

Explosion in the world's population and the resulting economic growth has brought the issue of environmental sustainability to centre stage and as a result _______ forces have become of greater concern.

A)ecological
B)social
C)technological
D)legal

Question 70

The "consumer movement" represents which of the following to marketing managers?

A)A threat
B)An opportunity
C)An annoyance
D)None of the above

Question 71

Control of monopolies in Europe increased in 1990 when the EU introduced its first direct mechanism for dealing with mergers and takeovers: the Merger _______.

A)Law
B)Regulation
C)Code
D)Directive

Question 72

The "consumer movement" refers to which of the following?

A)A collection of individuals, organizations and groups whose objective is to protect the rights of consumers
B)To people demanding higher quality from the products and services they buy
C)To people demanding more environmentally friendly products and organizations to be socially conscious in their actions
D)To the rise of consumerism in modern society

Question 73

_______ change has the potential to have a major impact on business and society. Many commentators argue that human activity is hastening the depletion of the ozone layer and impacting negatively on our ecology.

A)Demographic
B)Climate
C)Cultural
D)Social

Question 74

Why is the monitoring and analysis of the marketing environment so essential?

A)This is essential because of increasing use by competitors of imitation strategies
B)This is essential because of the increasing turbulence of the marketing environment
C)This is essential because of increasing price fluctuations in the marketplace
D)This is essential because of threat of foreign competition

Question 75

When monitoring and analysing the marketing environment, what are the two key decisions to be made?

A)What to scan and how to organize the activity
B)How to find information and how to analyze it
C)What to research and what information to ignore
D)All of the above

Question 76

Pollution is an ecological issue that has become relevant in recent years. Rapidly growing economies like China and India have particular problems in this regard, with China having overtaken the USA as the world's biggest emitter of _______.

A)CO2
B)H2O
C)CFC
D)HO2

Question 77

The Body Shop's initial success was due to its consideration of ecological issues, in particular that its products were not subject to _______.

A)pollution
B)recycling
C)animal testing
D)climate change

Question 78

Marketers need to be aware of consumer legislation. Many countries throughout Europe have some form of Consumer Protection Act that outlaws practices that are deemed to be unfair, misleading or _______.

A)protective
B)progressive
C)aggressive
D)competitive

Question 79

Consumer groups can exert enormous power on companies by influencing which of the following?

A)Public opinion
B)Competitors
C)Government
D)Investors

Question 80

The self-regulatory Code of Advertising Standards and Practice is designed to do which of the following?

A)To keep advertising legal and decent
B)To keep advertising legal and honest
C)To keep advertising truthful and honest
D)All of the above