Question 1

Marketers at Procter & Gamble have just finished up with a nationwide survey of their customers to determine the potential viability of a new product. Now the marketers must go over the data, tabulate the results, and form conclusions on whether the product idea should advance to the next level. What part of the environmental monitoring process is Procter & Gamble in at this stage?

Accepted Answer

Procter & Gamble is in the stage of environmental analysis, which involves gathering and analyzing data to understand the current state and trends of the market, as well as the needs and preferences of customers. This is a crucial step in deciding whether a new product idea has the potential to succeed in the market.

Question 2

When marketers define their target market, they simultaneously establish a set of

Accepted Answer

Defining the target market involves identifying the group of customers who are most likely to buy the company's product or service. In doing so, marketers also identify the competitors who are targeting the same group of customers, and therefore establish a set of competitors.

Question 3

Companies that market products with similar features, benefits, and prices to the same customer group are known as ____ competitors.

Accepted Answer

Brand competitors are those that offer similar products or services with comparable features and prices within the same market segment or industry, targeting the same customer group.

Question 4

Which of the following firms would be most likely to have a monopoly for its competitive environment?

Accepted Answer

TimeWarner Cable TV is most likely to have a monopoly because the cable TV industry tends to have high barriers to entry, such as infrastructure costs and government regulations. This makes it difficult for new firms to enter the market and compete.

Question 5

____ competitors are those that compete in the same product class, but their products have different features, benefits, and prices.

Accepted Answer

Competitors with different features, benefits, and prices refer to products competing within the same product class. Therefore, the best choice would be product. Total budget refers to competitors for a limited budget, generic competitors do not have unique features, brand competitors are based on consumer perception, and price competitors have similar products with similar features and benefits.

Question 6

What type of competitive structure exists when a firm produces a product that has no close substitutes?

Accepted Answer

When a firm produces a product that has no close substitutes, it is in a monopolistic market structure, which means there is only one dominant supplier of that product, creating a monopoly.

Question 7

____ competitors provide very different products that satisfy the same basic customer need.

Accepted Answer

Generic competitors provide different products but serve the same basic need. For example, aspirin and ibuprofen are generic competitors as they both serve the basic need of pain relief, but are different products.

Question 8

The Decca Electric Corporation produces light bulbs that are used in refrigerator manufacturing. Currently, only three other companies produce bulbs used in the production of refrigerators, with Decca as the leader in market share. In this case, Decca Electric Corporation would be considered

Accepted Answer

An oligopoly is a market structure in which a few companies control the majority of the market share. In this case, there are only three other companies producing bulbs used in refrigerator manufacturing, with Decca as the leader in market share. Therefore, Decca Electric Corporation would be considered an oligopoly.

Question 9

Which of the following is not at the generic competitor level for Ford's Expedition sport utility vehicle?

Accepted Answer

The answer of Which of the following is not at...

Question 10

Google is known for its successful products. It has the most popular search engine in the world, and its Android operating system gives competitor Apple a run for its money in the smartphone industry. Google has expanded into so many areas that it reorganized into a holding company called Alphabet. This holding firm includes Google as a search engine company as well as a number of other companies. According to the CEO, the new holding company will allow each firm to run more independently, which in turn keeps them more flexible to market opportunities. Google is also known for its strong lobbying efforts, having spent more than $4.5 million on lobbying within a four-month period. Google has most likely adopted a ____________ approach to environmental forces.

Accepted Answer

Google's active expansion into new areas and the formation of a holding company to allow for more independent operation show a proactive approach to environmental forces. The fact that Google also spends a considerable amount on lobbying efforts supports this proactive approach.

Question 11

In today's marketing environment, competitors can take on many forms. For example, Diet Coke can be seen as a competitor to Wrigley's Doublemint chewing gum. In this circumstance, these two products are described as ____ competitors.

Accepted Answer

Diet Coke and Wrigley's Doublemint chewing gum are considered total budget competitors because they are competing for the same discretionary spending of consumers, even though they are not direct substitutes or in the same product category.

Question 12

Marketers primarily focus their environmental analysis on ____ competitors.

Accepted Answer

Marketers primarily focus their environmental analysis on brand competitors because these competitors offer similar products or services to the same target market, making them the most direct competition.

Question 13

Companies delivering mixed concrete know that it cannot be shipped farther than 25 miles because the concrete might harden in the truck. Citrus County Concrete Company is the only supplier of mixed concrete to customers within a 30-mile radius. Citrus County Concrete is an example of which one of the following competitive structures?

Accepted Answer

Citrus County Concrete Company is an example of a monopoly because it is the only supplier of mixed concrete within a 30-mile radius, indicating it has exclusive control over the market in that area.

Question 14

Companies that compete for the same limited financial resources of the same customers are known as ____ competitors.

Accepted Answer

Total budget competitors are companies that compete for the same limited financial resources of the same customers, as they vie for a share of the overall spending capacity of consumers.

Question 15

Your company makes highly sophisticated components for military equipment. The U.S. Department of Defense is your largest customer. In recent years, you have expanded your customer base to include the militaries of all the major countries in the world.
The following headlines appeared recently in the Sunday New York Times:
"The Federal Reserve Board Chairman Sees Economic Growth Accelerating in the Third Quarter"
"Congressional Republicans and Democrats Fail to Reach Compromise on the New Immigration Bill"
"The Average Teen Spends Two Hours Per Day on Social Media Sites"
"State Department Considers Imposing New Sanctions on Exports of Sensitive Military Technology"
"Unemployment Rate Falls to 6.2%"
Which one of the following statements is true regarding these headlines?

Accepted Answer

Headline #4 regarding the State Department considering new sanctions on exports of sensitive military technology falls under the category of legal and regulatory forces in the company's marketing environment, as it could potentially impact the company's ability to export their products. The other headlines cannot be categorized as directly impacting the company's marketing environment.

Question 16

Using surveys to conduct marketing research is an example of environmental analysis.

Accepted Answer

Surveys for marketing research are a form of primary data collection focused on understanding consumer behaviors, preferences, or opinions, rather than analyzing the broader external factors that impact a business, which is what environmental analysis entails.

Question 17

The type of competitive structure that exists in the case where there are almost no substitutes for a product is a(n)

Accepted Answer

A monopoly is a competitive structure that exists when there are no close substitutes for a product, and a single firm controls the market. This means that the firm has complete market power and can set prices at its own discretion. In contrast, other competitive structures like monopolistic competition and pure competition have a larger number of firms and closer substitutes for the product, which limits a firm's ability to control prices.

Question 18

Explain the differences between the competitive structures of a monopoly and an oligopoly.

Accepted Answer

The answer of Explain the differences between the competitive structures...

Question 19

The four major competitive structures are

Accepted Answer

The four major competitive structures are oligopolies, monopolies, monopolistic competition, and pure competition. This is the commonly accepted classification in economics. Choice A is incorrect as "oligopolistic monopolies" is not a recognized term. Choice B uses subjective terms to categorize competition and is not a recognized classification. Choice C lists types of branding and budgeting, which are not related to competitive structures. Choice E is incorrect as "limited competition" is not a recognized classification.

Question 20

____ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other.

Accepted Answer

Brand competitors are considered the most significant to marketers because their products are seen as direct substitutes for each other by buyers, indicating a direct competition in the same product category or brand space.

Quiz 3: The Marketing Environment