Exam 2: The Environment in Which Marketing Operates

A major credit card provider views any form of payment (including cash, debit cards, and checks ) as competition. This firm is defining its competition

A firm defines its line of business broadly to take advantage of potential opportunities. For example, instead of classifying itself as a manufacturer of high fidelity equipment, it views itself as an entertainment technology firm. The firm

In marketing myopia, a firm

The role of marketing is greatest in which competitive structure?

A law limiting the price discounts that a manufacturer can legally provide to an important large retailer has the impact of

In a functional form of marketing organization, responsibility is assigned on the basis of

A firm's line of business represents a definition of the business opportunities in which the firm seeks to be involved.

With monopolistic competition, firms seek to establish and maintain differential advantages through a distinctive marketing mix.

As a patent expires, a firm's competitive structure can change from a monopoly to monopolistic competition.

A manufacturer of battery-operated watches has decided to introduce a line of manual winding watches based upon high levels of interest among a small, but important group of customers. This definition of its line of business indicates that the firm

A functional marketing organization assigns responsibility on the basis of geographic markets and customer types.

Discuss the line of business for each of the following: a. Your college/university store. c. Your local library. b. A local pizza shop. d. McDonald's.

When the top management of a computer manufacturer decides to purchase a former supplier of computer cases, this decision has the greatest impact on the company's

Objectives relating to the time span between a customer's ordering merchandise and its receipt, and customer satisfaction ratings are examples of

A plumbing parts manufacturer has distinct market segments (professional versus do-it-yourself) that require different distribution channels. What type of marketing organization should the firm use?

The market for a commodity product (such as agricultural produce) most closely resembles monopolistic competition.

Which one of the following is NOT a part of the marketing environment?

When deregulation makes it easier for new firms to enter a market,

A person's annual earnings rise from $100,000 to $125,000, while the inflation rate rises by 3 percent. As a result, his/her real income increases by 25 percent.

Some controllable factors are directed by top management; these are not controlled by marketers.