Deck 3: Understanding the Marketing Environment

Question 1

Since the Colorado Rockies baseball team does not have any direct competitor within 500 miles of Denver,it does not need to worry about the competition factor of the external marketing environment.

Answer 1

False

Question 2

Because of the difficulties associated with self-regulation,most sports brands and industries prefer government regulation and oversight.

Answer 2

False

Question 3

Horse racing typically faces greater government regulations than industry regulations.

Answer 3

True

Question 4

Cultural differences among the various ethnic groups can be used to not only market game/event tickets but to create advertising and marketing materials that speak to each ethnic group.

Question 5

The external marketing environment is the term used to describe characteristics,developments,and trends occurring outside an organization that could potentially impact it.

Question 6

While the economic environment cannot be controlled by a sports property,it is important to monitor because it does impact marketing decisions.

Question 7

Because consumers have less leisure time,commitments to multi-game ticket packages for spectator sports are easier to attain.

Question 8

Over 80% of consumers believe companies have a responsibility to support causes.

Question 9

A recent popular trend in foodservice at sporting events is "all-you-can-eat" seats.

Question 10

Sports that entail higher levels of risk to participants typically face greater government regulations.

Question 11

The Buying Power Index estimates local market buying power based on disposable income,retail sales,and population of the market area.

Question 12

The amount of time Americans spend each week on leisure activities has declined.

Question 13

A situation analysis is a snapshot at a particular point in time.

Question 14

Objectives are general statements about what an organization wants to be or become.

Question 15

Values are a system of shared beliefs,customs,behaviors,and artifacts that members of a society use to cope with their world and one another.

Question 16

Because only 35% of women follows sports closely or somewhat closely,they are not a viable market for sports brands.

Question 17

Objectives state the outcomes,or what should be achieved as a result of the investment in marketing activities.

Question 18

People in the U.S.have more hours of leisure time than people in other industrialized nations.

Question 19

While industry regulation agencies impact how sports properties market themselves,they also provide greater latitude.

Question 20

Most sports properties are monitored by industry regulators and are not required to comply with government agencies.

Question 21

The economic indicator that provides a quarterly estimate of the output of goods and services by labor and property in the U.S.is the

A)Consumer Sentiment Index
B)Gross Domestic Product
C)Buying Power Index
D)Consumer Confidence Index

Question 22

Goals are broad statements that are not necessarily measurable as stated.

Question 23

The factors of an external marketing environment include the following except

A)competition
B)technology
C)economy
D)nonprofit agencies

Question 24

The external environment should most likely be monitored on a regular basis because of

A)frequent environmental changes
B)quickly aging populations
C)cultural transitions
D)environmental regulations

Question 25

Foodservice operations at sports properties have sped up the process of serving customers through the following technologies except

A)tickets loaded with credits to spend at concession
B)dessert carts that allow for easy access by customers
C)food ordering capabilities from seats using wireless devices
D)innovative tap dispensers that reduce the pouring time of beer

Question 26

Brad is the marketing manager for a minor league baseball team in New Orleans.He noticed that attendance fell during the Jazz Festival.This is an example of

A)generic competition
B)brand competition
C)price competition
D)category competition

Question 27

Head-to-head competitors such as the Los Angeles Lakers and the Los Angeles Clippers (both NBA teams in Los Angeles)are considered

A)generic competitors
B)brand competitors
C)price competitors
D)category competitors

Question 28

Category competition involves brands or firms that

A)sell either goods or services at the same price
B)offer goods or services that meet the same or similar customer needs
C)a customer might consider when making utilitarian purchases
D)target similar customers with comparable products and prices

Question 29

Danielle is trying to decide if she should go to the Dallas Mavericks basketball game or if she should spend the money on a new backpack she needs for college.This illustrates

A)generic competition
B)brand competition
C)price competition
D)category competition

Question 30

Generic competition involves brands or firms that

A)sell either goods or services at the same price
B)offer goods or services that meet the same or similar customer needs
C)a customer might consider instead of the purchase of a ticket to a sporting event
D)target similar customers with comparable products and prices

Question 31

The economic indicator that tracks monthly changes in the amount consumers spend for a representative basket of goods and services is the

A)Consumer Sentiment Index
B)Consumer Price Index
C)Buying Power Index
D)Consumer Confidence Index

Question 32

The economic indicator that measures consumers' beliefs about future business conditions,job market,and personal income is the

A)Consumer Sentiment Index
B)Consumer Price Index
C)Buying Power Index
D)Consumer Confidence Index

Question 33

Consumers have a limited amount of money they can spend.When an individual thinks about paying bills,saving money,purchasing food,buying gas for the car,or purchasing clothes instead of purchasing a ticket to a professional basketball game,it is

A)generic competition
B)brand competition
C)price competition
D)category competition

Question 34

Monitoring competition requires the following except

A)realizing who the competitors are
B)knowing the political position of each competitor
C)understanding the strengths and weaknesses of each competitor
D)predicting the future moves of each competitor

Question 35

Brand competition involves brands or firms that

A)sell either goods or services at the same price
B)offer goods or services that meet the same or similar customer needs
C)a customer might consider when making utilitarian purchases
D)target similar customers with comparable products and prices

Question 36

According to the opening vignette,recent changes in foodservice at sporting events include the following except

A)serving premium quality food
B)using technology to improve customer service
C)investing in stadium-based chain restaurants
D)offering more value-priced meals

Question 37

Primary data represents information that already exists and could be used in the evaluation of the marketing environment.

Question 38

A hockey team in Cincinnati has to consider other forms of entertainment,such as water parks,movie theaters,and even dining out,as competitors.This situation describes

A)generic competitors
B)brand competitors
C)price competitors
D)category competitors

Question 39

Competition for sports entertainment can be classified as each of the following categories except

A)brand competition
B)category competition
C)generic competition
D)price competition

Question 40

Of the different categories of competitors that must be considered when analyzing the competition,the category of least concern would be

A)generic competition
B)brand competition
C)price competition
D)category competition

Question 41

A permanent shift in consumer behavior occurred in respect to the purchase of season tickets for professional sports.To meet this change,a strategy that most professional teams took was to

A)reduce the prices of season tickets
B)offer an added value to season tickets,such as free parking
C)include drinks and food as part of the purchase price
D)create multiple game packages that did not involve the entire season

Question 42

Which of the following technologies tried by sports properties turned out to be more costly than the benefits it produced?

A)cashless systems for concessions
B)paperless tickets
C)wireless in-game communications for sports stats and replays
D)loyalty programs that offered rewards for frequent attendance

Question 43

The ultimate goal of industry regulation agencies,such as the U.S.Golf Association,is to

A)manage the overall brand and its image
B)ensure consistency in how each sports brand is marketed
C)establish equity among players and sponsors
D)gain greater bargaining power with government agencies

Question 44

Recent events in ________ have created controversy about unfairness.As a result Congress has held hearings to consider if the industry should be subject to antitrust laws of the Sherman Act.

A)college baseball
B)professional football
C)college football
D)professional basketball

Question 45

The generation that will have significant impact on businesses in the foreseeable future is

A)baby boomers
B)Generation X
C)Generation Y
D)Millennials

Question 46

How would declining consumer confidence and sentiment most likely affect sports brands?

A)Consumers will have higher disposable incomes and will invest in discretionary purchases,such as sports event tickets.
B)Businesses will postpone making investment decisions in sports-related advertising and sponsorships.
C)Ticket sales will decline,and businesses will be more reluctant to invest in sponsorships.
D)Consumers will have less money to spend on utilitarian goods and services.

Question 47

The opportunities and challenges of marketing to the 65+ age group include the following except

A)they have more leisure time
B)they have higher incomes
C)baseball is their favorite sport
D)football is their least favorite sport

Question 48

In terms of marketing to women,an area where sports properties have made significant progress is

A)season and partial season tickets
B)branded merchandise geared towards females
C)seminars such as "Football 101" and "Hockey 101"
D)value-priced food offerings at sports facilities

Question 49

Technology can impact sports in the following ways except by

A)adding benefits to product consumption
B)reducing the sacrifices necessary to consume a product
C)offering new ways of direct consumption
D)increasing sports organization revenues through improved operations

Question 50

The following indicators are aggregate measures of consumer activities that can provide evidence of consumer spending on sports except

A)Consumer Sentiment Index
B)Personal Income and Outlays
C)Retail Sales Outlook
D)Advance Monthly Sales for Retail and Food Services

Question 51

Which of the following facts about the buying power of women is false?

A)60% of Internet users are women,but they purchase less online than men.
B)90% of women hold veto power over family buying decisions.
C)75% of all mothers are now in the workforce.
D)70% of all new businesses are now started by women.

Question 52

Until the 1970s ________ could not get a bank loan without a co-signer,and in the 1980s many states did not allow them to have only their names on a property deed.

A)Blacks
B)Asians
C)Hispanics
D)women

Question 53

Sociodemographic trends that have recently impacted sports marketing include the following except

A)aging population
B)greater ethnic diversity
C)increased leisure time
D)increased buying power among women

Question 54

Paperless tickets offer value to sports properties in the following ways except

A)reducing printing and delivery expenses
B)expanding ticket sales in the secondary market
C)providing information about ticket holders
D)identifying future prospects for ticket sales

Question 55

A study by Pew Research examined the interest of women in sports.The following statements are findings of the research except

A)10% of women follow sports very closely
B)most women do not identify themselves as sports fans
C)40% of women follow sports somewhat closely
D)less women have an interest in sports than men

Question 56

Sociodemographic trends that have recently impacted marketing of sports include the following except

A)aging population
B)geographic changes in different U.S.regions
C)demand for social responsibility
D)increased buying power of Millennials

Question 57

Of the professional sports,the one that is exempt from the antitrust laws created by the Sherman Act is

A)National Football League
B)Major League Baseball
C)National Basketball Association
D)National Hockey League

Question 58

Nearly ________ percent of the fan base for minor league baseball is female,which has altered the way minor league teams market their brands.

A)20
B)35
C)50
D)65

Question 59

In terms of ethnic diversity,each of the following statements is true except

A)growth rates for Whites has slowed
B)growth rates for Hispanics has increased
C)growth rates for Asians has slowed
D)growth rates for Blacks has slowed

Question 60

In terms of the external marketing analysis,technology should be thought of as

A)advances in both computerization and communications
B)advances in computers and related information processing technologies
C)ways tasks are accomplished and new methods of conducting business
D)inventions that alter the way sports brands are played or consumed

Question 61

All of the following could be examples of weaknesses in a SWOT analysis except

A)high employee turnover
B)low cost structure
C)limited geographic market reach
D)limited product offering

Question 62

All of the following could be examples of strengths in a SWOT analysis except

A)high employee turnover
B)high brand awareness
C)brand loyal customers
D)facilities

Question 63

In a SWOT analysis,the ________ are external to the firms and indicate occurrences or trends taking place beyond the walls of the organization.

A)strengths and weaknesses
B)opportunities and threats
C)strengths and opportunities
D)weaknesses and threats

Question 64

The fourth step in the strategic planning process is to

A)set goals and objectives
B)develop a strategic plan
C)conduct a situation analysis
D)gather information

Question 65

Of the 12 franchises added or relocated during 1990-2000,ten located in the ________ regions of the U.S.

A)northeast and midwest
B)south and midwest
C)northwest and west
D)south and west

Question 66

Approaches to identifying strengths and weaknesses of a sports brand include the following except

A)examination of the performance of the marketing mix elements
B)examination of the firm's customer relationships and ticket renewals
C)evaluation of the organization's assets
D)evaluation of the opportunities and threats facing the organization

Question 67

The second step in the strategic planning process is to

A)set goals and objectives
B)determine values and mission
C)conduct a situation analysis
D)gather information

Question 68

Of the following areas of green marketing and environmental concern,the one of most interest to sports properties is

A)recycling materials
B)green construction materials
C)green cleaning supplies
D)energy consumption

Question 69

In a SWOT analysis,the ________ are internal characteristics or issues in the sports property.

A)strengths and weaknesses
B)opportunities and threats
C)strengths and opportunities
D)weaknesses and threats

Question 70

In conducting a SWOT analysis,which of the following questions is least useful in determining if an issue is external or internal?

A)If our organization went away,would the issue go away?
B)Do other organizations in the industry face this same issue?
C)How will this issue affect government regulations?
D)Can this issue be controlled by our organization?

Question 71

In terms of social responsibility,an area that many professional teams have become involved is

A)youth programs
B)recycling
C)heart disease awareness
D)disaster assistance

Question 72

Anthony is reviewing the SWOT analysis conducted by his marketing team.The following were identified as opportunities.Which one is not an opportunity?

A)economic recovery
B)missteps by a competitor
C)growth of customer markets
D)increase in brand loyal customers

Question 73

The total number of hours Americans spend on leisure activities (weekdays plus weekends)is approximately ________ hours per week.

A)5
B)10
C)15
D)20

Question 74

The fifth step in the strategic planning process is to

A)set goals and objectives
B)develop a strategic plan
C)conduct a situation analysis
D)gather information

Question 75

The third step in the strategic planning process is to

A)set goals and objectives
B)develop a strategic plan
C)conduct a situation analysis
D)gather information

Question 76

The term ________ refers to companies that make claims about their environmental practices that are deemed questionable or self-serving.

A)social responsibility
B)cause-related marketing
C)green marketing
D)greenwashing

Question 77

A good starting point for identifying the strengths and weaknesses of a sports brand is

A)determining the target markets of the sports property
B)evaluating the mission statement and marketing objectives
C)reviewing the performance of the marketing mix elements
D)analyzing the past year's marketing communications plan

Question 78

The first step in the strategic planning process is to

A)set goals and objectives
B)determine values and mission
C)conduct a situation analysis
D)gather information

Question 79

The production,distribution,and promotion of products that promote environmental protection is

A)social responsibility
B)cause-related marketing
C)green marketing
D)greenwashing

Question 80

Recent review of U.S.census data shows the fastest growth rates are for the ________ regions.

A)northeast and midwest
B)south and midwest
C)northwest and west
D)south and west