Question 1

More women working outside the home and greater interest in leisure are examples of changes in the ______________ environment.

Accepted Answer

A)  technological 
B)  cultural and social 
C)  economic 
D)  legal 
E)  competitive 
A)  technological 
B)  cultural and social 
C)  economic 
D)  legal 
E)  competitive

Question 2

The Internet changes how consumers shop and marketers market.

Accepted Answer

A) True 
 B)False

Question 3

According to the General Electric strategic planning grid, an opportunity which is low on the "business strengths" dimension but high on the "industry attractiveness" should be:

Accepted Answer

A)  called a strategic business unit. 
B)  supported if it is an existing business, but probably not supported if it is a new opportunity. 
C)  immediately supported with large investment. 
D)  sold off or discontinued. 
E)  viewed as a "green" (high growth) opportunity. 
A)  called a strategic business unit. 
B)  supported if it is an existing business, but probably not supported if it is a new opportunity. 
C)  immediately supported with large investment. 
D)  sold off or discontinued. 
E)  viewed as a "green" (high growth) opportunity.

Question 4

____ refers to market situation where one firm completely controls a broad product-market.

Accepted Answer

A)  Monopoly 
B)  Oligopoly 
C)  Pure competition 
D)  Monopolistic competition 
E)  Collectivist competition 
A)  Monopoly 
B)  Oligopoly 
C)  Pure competition 
D)  Monopolistic competition 
E)  Collectivist competition

Question 5

The ____ prohibits exclusive dealing contracts.

Accepted Answer

A)  Antimerger Act 
B)  Clayton Act 
C)  Magnuson-Moss Act 
D)  Wheeler-Lea Amendment 
E)  Federal Trade Commission Act 
A)  Antimerger Act 
B)  Clayton Act 
C)  Magnuson-Moss Act 
D)  Wheeler-Lea Amendment 
E)  Federal Trade Commission Act

Question 6

The business strengths dimension of the GE grid focuses on:

Accepted Answer

A)  market diversity. 
B)  the question: Does this product-market plan look like a good idea? 
C)  the ability of the company to pursue a product-market plan effectively. 
D)  industry profitability. 
E)  the social and legal environment. 
A)  market diversity. 
B)  the question: Does this product-market plan look like a good idea? 
C)  the ability of the company to pursue a product-market plan effectively. 
D)  industry profitability. 
E)  the social and legal environment.

Question 7

Using the General Electric strategic planning grid, an opportunity rated "medium" in terms of both industry attractiveness and business strengths is an opportunity that the firm should always avoid.

Accepted Answer

A) True 
 B)False

Question 8

When evaluating the potential of possible opportunities (product-market strategies), a marketing manager should:

Accepted Answer

A)  evaluate each opportunity over the life of the project, since short-term losses may hide long-term profitability. 
B)  avoid using quantitative criteria because they tend to oversimplify the problem. 
C)  look at each opportunity on its own, since there is no good way to compare different plans. 
D)  look only at internal resources, since they are controllable. 
E)  All of the above are true. 
A)  evaluate each opportunity over the life of the project, since short-term losses may hide long-term profitability. 
B)  avoid using quantitative criteria because they tend to oversimplify the problem. 
C)  look at each opportunity on its own, since there is no good way to compare different plans. 
D)  look only at internal resources, since they are controllable. 
E)  All of the above are true.

Question 9

Strategic planning in some multiproduct firms is done with the ____________ approach, which treats strategic business units in a manner similar to stock investments.

Accepted Answer

A)  Return-on-investment (ROI) 
B)  Total profit 
C)  GE planning grid 
D)  Portfolio management 
E)  Defined-benefit 
A)  Return-on-investment (ROI) 
B)  Total profit 
C)  GE planning grid 
D)  Portfolio management 
E)  Defined-benefit

Question 10

The Consumer Product Safety Act provides for the creation of safety standards but has no power to set penalties for failure to meet these standards.

Accepted Answer

A) True 
 B)False

Question 11

A mission statement should focus on just the key goals for the organization.

Accepted Answer

A) True 
 B)False

Question 12

If the cost of production per unit goes down as the quantity produced increases, small producers can be at a great cost disadvantage.

Accepted Answer

A) True 
 B)False

Question 13

The North American Free Trade Agreement (NAFTA):

Accepted Answer

A)  Provides a plan to reshape the rules of trade among Canada, the United States, and Colombia. 
B)  Has resulted in the movement of production jobs to Mexico due to lower labor costs. 
C)  Eliminates the need for companies to adjust strategies. 
D)  Makes it more difficult to resolve trade disputes among the countries participating in NAFTA. 
E)  None of the above. 
A)  Provides a plan to reshape the rules of trade among Canada, the United States, and Colombia. 
B)  Has resulted in the movement of production jobs to Mexico due to lower labor costs. 
C)  Eliminates the need for companies to adjust strategies. 
D)  Makes it more difficult to resolve trade disputes among the countries participating in NAFTA. 
E)  None of the above.

Question 14

The Tennis Products Group is an organizational unit within Sporting Goods for America Company (SGA) that focuses on the design, production, marketing, and sales of tennis balls, tennis racquets, and other tennis-related products. Tennis Products Group is a ____ for SGA.

Accepted Answer

A)  functional unit 
B)  strategic alliance partner 
C)  portfolio group 
D)  franchise unit 
E)  strategic business unit 
A)  functional unit 
B)  strategic alliance partner 
C)  portfolio group 
D)  franchise unit 
E)  strategic business unit

Question 15

A change in the _____ environment can affect consumer purchases of homes, cars, and other items usually bought on credit.

Accepted Answer

A)  legal 
B)  political 
C)  social/cultural 
D)  technological 
E)  economic 
A)  legal 
B)  political 
C)  social/cultural 
D)  technological 
E)  economic

Question 16

Which of the following U.S. antimonopoly laws deals with conspiracy to fix prices?

Accepted Answer

A)  Clayton Act (1914) 
B)  Magnuson-Moss Act (1975) 
C)  FTC Act (1914) 
D)  Sherman Act (1890) 
E)  Wheeler-Lea Amendment (1938) 
A)  Clayton Act (1914) 
B)  Magnuson-Moss Act (1975) 
C)  FTC Act (1914) 
D)  Sherman Act (1890) 
E)  Wheeler-Lea Amendment (1938)

Question 17

Product-market screening criteria should be mainly quantitative in nature, because qualitative criteria are too subjective.

Accepted Answer

A) True 
 B)False

Question 18

In the short run, a marketing manager usually cannot control:

Accepted Answer

A)  the competitive environment. 
B)  the cultural environment. 
C)  the legal environment. 
D)  the economic environment. 
E)  Any of the above. 
A)  the competitive environment. 
B)  the cultural environment. 
C)  the legal environment. 
D)  the economic environment. 
E)  Any of the above.

Question 19

A firm may find that both the competitive and economic environments are better in a foreign market than in its domestic market.

Accepted Answer

A) True 
 B)False

Question 20

The profit potentials of alternative strategic plans can be evaluated at the same time only if the plans are very similar.

Accepted Answer

A) True 
 B)False

Exam 3: Evaluating Opportunities in the Changing Marketing Environment

More women working outside the home and greater interest in leisure are examples of changes in the ______________ environment.

The Internet changes how consumers shop and marketers market.

According to the General Electric strategic planning grid, an opportunity which is low on the "business strengths" dimension but high on the "industry attractiveness" should be:

____ refers to market situation where one firm completely controls a broad product-market.

The ____ prohibits exclusive dealing contracts.

The business strengths dimension of the GE grid focuses on:

Using the General Electric strategic planning grid, an opportunity rated "medium" in terms of both industry attractiveness and business strengths is an opportunity that the firm should always avoid.

When evaluating the potential of possible opportunities (product-market strategies), a marketing manager should:

Strategic planning in some multiproduct firms is done with the ____________ approach, which treats strategic business units in a manner similar to stock investments.

The Consumer Product Safety Act provides for the creation of safety standards but has no power to set penalties for failure to meet these standards.

A mission statement should focus on just the key goals for the organization.

If the cost of production per unit goes down as the quantity produced increases, small producers can be at a great cost disadvantage.

The North American Free Trade Agreement (NAFTA):

The Tennis Products Group is an organizational unit within Sporting Goods for America Company (SGA) that focuses on the design, production, marketing, and sales of tennis balls, tennis racquets, and other tennis-related products. Tennis Products Group is a ____ for SGA.

A change in the _____ environment can affect consumer purchases of homes, cars, and other items usually bought on credit.

Which of the following U.S. antimonopoly laws deals with conspiracy to fix prices?

Product-market screening criteria should be mainly quantitative in nature, because qualitative criteria are too subjective.

In the short run, a marketing manager usually cannot control:

A firm may find that both the competitive and economic environments are better in a foreign market than in its domestic market.

The profit potentials of alternative strategic plans can be evaluated at the same time only if the plans are very similar.

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Focusing Marketing Strategy With Segmentation and Positioning

Demographic Dimensions of Global Consumer Markets

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers,wholesalers,and Their Strategy Planning

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Implementing and Controlling Marketing Plans: Evolution and Revolution

Managing Marketings Link With Other Functional Areas

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Economics Fundamentals

Marketing Arithmetic

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