Deck 2: Situation Assessment - the External Environment

Question 1

What is the broadest level of a concentric market?

A) product form
B) product category
C) budget competition
D) generic competition

Answer 1

C

Question 2

In a concentric market,which of the following is the core?

A) generic competition
B) product form
C) budget competition
D) product category

Answer 2

B

Question 3

A marketer who is conducting a broad exploration of customer insights and emerging market trends is most likely involved with ________.

A) segmentation
B) strategy formation
C) customer assessment
D) customer relationship management

Answer 3

C

Question 4

What is the primary goal of customer assessment?

A) analyzing historical consumer trends
B) attracting interest among new customers
C) customizing product offerings to consumers
D) predicting future patterns of customer needs

Question 5

Marketers should be aware of tax codes,operating rules,and guidelines that affect business and industry in a given society.This is the ________ context.

A) social
B) political
C) economic
D) physical

Question 6

Findings about customers discovered through ________ techniques often lead to marketing opportunities.

A) data mining
B) value networking
C) data warehousing
D) product branding

Question 7

According to the text,identifying customer insights is the first step in ________.

A) implementing the marketing mix
B) maintaining economies of scale
C) discovering new markets
D) branding products

Question 8

Which stage of the marketing process primarily involves monitoring the environment,evaluating the firm's core competencies,and anticipating future events?

A) market segmentation
B) situation assessment
C) budget analysis
D) positioning

Question 9

Marketers can most likely use the product life cycle concept as a tool for ________.

A) predicting sales trends
B) targeting niche consumers
C) conducting advertising tests
D) collecting data for product analysis

Question 10

Demographics,norms,and lifestyles are factors in the ________ context that marketers must always consider.

A) social
B) political
C) physical
D) regulatory

Question 11

A supply side approach to market definition focuses on the ________.

A) primary industry
B) budget competition
C) alternative products
D) customers' perspectives

Question 12

Which of the following would most likely occur during an assessment of the external marketing environment?

A) analyzing the specific industry
B) evaluating core competencies
C) contacting financial resources
D) establishing strategic moves

Question 13

Which of the following is NOT a challenge presented to marketers by the product life cycle?

A) Sales and profits for all products eventually decline.
B) It is difficult to plot the life cycle stages as a product goes through them.
C) A firm must be effective at adapting its marketing strategies for different life cycle stages.
D) Changing tastes and technologies affect the marketing of a product as it passes through life cycle stages.

Question 14

In the marketing process,which of the following is NOT one of the four Cs considered essential during a situation assessment?

A) context
B) customers
C) conversions
D) competition

Question 15

Which of the following would most likely be used by a marketer gathering customer insights about unmet and unrecognized customer needs?

A) trendspotting
B) in-depth interviews
C) data mining
D) loyalty surveys

Question 16

Which of the following is NOT one of the forces that drive industry analysis?

A) competitive rivalry
B) threat of new entrants
C) product-market evolution
D) bargaining power of buyers

Question 17

A broad,subjective search for trends across media and other environments is known as ________.

A) targeting
B) coolhunting
C) positioning
D) data mining

Question 18

Major strategic gains and losses will most likely occur at which stage of the product life cycle?

A) introduction
B) maturity
C) decline
D) growth

Question 19

For the most effective situation assessment,which of the following should occur first?

A) determining a marketing mix
B) reviewing customer needs
C) evaluating technology
D) defining the market

Question 20

Competitive rivalry,the bargaining power of suppliers and customers,and the threat of substitute products and new entrants are the forces that jointly influence ________.

A) industry profitability
B) economies of scope
C) product scale effects
D) demographic trends

Question 21

Economies of scale are primarily increased by ________.

A) strict industrial standards
B) knowledge retention rates
C) major quality modifications
D) higher units of production

Question 22

Why is it important to define the market when conducting a situation assessment?

Question 23

Which term refers to increases in unit costs as production increases?

A) vicious circle
B) economies of scope
C) diseconomies of scale
D) experience curve effects

Question 24

Which of the following best describes a situation in which more people are buying a product,more retailers are wanting to stock the product,and sales of the product are increasing?

A) synergy
B) virtuous circles
C) economies of scope
D) learning curve effects

Question 25

PIMS data shows a strong correlation between ________ and ________.

A) market share; profitability
B) unit costs; marketing strategy
C) market share; product quality
D) profitability; marketing success

Question 26

Which of the following would most likely lower unit costs while increasing reliability and conformance quality?

A) network effects
B) economies of scope
C) diseconomies of scale
D) learning curve effects

Question 27

In order to be the most effective,the scope of a market definition should be fixed.

Question 28

In which stage of the product life cycle would share building most likely be difficult and lead to price competition?

A) growth
B) decline
C) maturity
D) introduction

Question 29

Which of the following is most likely to result from higher market share?

A) higher unit costs
B) lower reliability
C) higher profits
D) lower volume

Question 30

The product life cycle,scale effects,and market share effects are generalizations in strategic marketing that cannot be changed.

Question 31

Using interviews and ethnographies to gather customer insights produces general findings that can be applied to the mass market.

Question 32

Most significant strategic gains and losses occurring during the growth phase of a market.

Question 33

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

Question 34

Which term best describes the effect that occurs when production volume increases and unit costs decline?

A) competitive advantage
B) experience curve
C) virtuous circles
D) single sourcing

Question 35

How do marketers benefit from understanding where a product and an industry are in the product life cycle?

Question 36

________ occurs when a product provides more value to each customer when more overall customers own or use the product.

A) Network effect
B) Virtuous circle
C) Economy
D) Synergy

Question 37

Why is it important to conduct a situation assessment? What are the primary external factors to consider during a situation assessment?

Question 38

Producing more than one product and lowering the cost of production of all products is best known as ________.

A) experience curve effects
B) diseconomies of scale
C) economies of scope
D) virtuous circles