Question 1

According to the General Electric strategic planning grid, a business that is the strongest in its industry:

Accepted Answer

A)  should still be considered as a "no-growth" prospect unless the industry attractiveness is high. 
B)  is a good prospect, provided the industry has at least medium attractiveness. 
C)  should automatically receive a large investment. 
D)  All of the above are true. 
E)  None of the above is true. 
A)  should still be considered as a "no-growth" prospect unless the industry attractiveness is high. 
B)  is a good prospect, provided the industry has at least medium attractiveness. 
C)  should automatically receive a large investment. 
D)  All of the above are true. 
E)  None of the above is true.

Question 2

Competitive barriers are conditions that make it difficult for a firm to compete in a market.

Accepted Answer

A) True 
 B)False

Question 3

The direct market environment

Accepted Answer

A)  includes customers, the company, and competitors. 
B)  consists of variables that can be controlled. 
C)  is broader in scope than the external environment. 
D)  includes economic and technological environments. 
E)  is made up of the political, legal, and social environments. 
A)  includes customers, the company, and competitors. 
B)  consists of variables that can be controlled. 
C)  is broader in scope than the external environment. 
D)  includes economic and technological environments. 
E)  is made up of the political, legal, and social environments.

Question 4

Which of the following types of products is LEAST sensitive to environmental changes, according to the "continuum of environmental sensitivity"?

Accepted Answer

A)  Industrial products. 
B)  Commodity-type consumer products. 
C)  Consumer products linked to cultural variables. 
D)  "Me-too" products. 
E)  Fad products. 
A)  Industrial products. 
B)  Commodity-type consumer products. 
C)  Consumer products linked to cultural variables. 
D)  "Me-too" products. 
E)  Fad products.

Question 5

Which of the following statements about company objectives is True?

Accepted Answer

A)  Company objectives should be stated in vague terms to provide flexibility to lower-level managers. 
B)  Company objectives should be set by top management with no input from marketing managers. 
C)  A good mission statement can substitute for more specific company objectives. 
D)  Company objectives should be compatible with each other. 
E)  All of the above. 
A)  Company objectives should be stated in vague terms to provide flexibility to lower-level managers. 
B)  Company objectives should be set by top management with no input from marketing managers. 
C)  A good mission statement can substitute for more specific company objectives. 
D)  Company objectives should be compatible with each other. 
E)  All of the above.

Question 6

Pill Makers Pharmaceuticals extensively tests all of its drugs to assure that it follows the _____.

Accepted Answer

A)  Sherman Act 
B)  Pure Food and Drug Act 
C)  Federal Trade Commission Act 
D)  Magnuson-Moss Act 
E)  Clayton Act 
A)  Sherman Act 
B)  Pure Food and Drug Act 
C)  Federal Trade Commission Act 
D)  Magnuson-Moss Act 
E)  Clayton Act

Question 7

Marketing managers should remember that there are many variables in the ____________ that affect strategy planning.

Accepted Answer

A)  economic and technological environments 
B)  competitive environment 
C)  cultural and social environment 
D)  political and legal environments 
E)  all of the above 
A)  economic and technological environments 
B)  competitive environment 
C)  cultural and social environment 
D)  political and legal environments 
E)  all of the above

Question 8

In a _____________ situation, competitors offer very similar products which customers see as close substitutes, and managers just compete with lower and lower prices as profit margins shrink.

Accepted Answer

A)  capitalistic competition 
B)  pure competition 
C)  monopoly 
D)  monopolistic competition 
E)  collectivist competition 
A)  capitalistic competition 
B)  pure competition 
C)  monopoly 
D)  monopolistic competition 
E)  collectivist competition

Question 9

In the total profit approach, management forecasts potential sales and costs during the life of the plan to estimate likely profitability.

Accepted Answer

A) True 
 B)False

Question 10

According to the "continuum of environmental sensitivity":

Accepted Answer

A)  industrial products usually need to be adapted to foreign markets more than consumer products. 
B)  consumer products that are linked to other social or cultural variables are easily adaptable to foreign markets and thus involve very little risk in international marketing. 
C)  it is extremely risky to market basic commodities in international markets. 
D)  some products are more adaptable to foreign markets than others--and thus may be less risky. 
E)  All of the above are true statements. 
A)  industrial products usually need to be adapted to foreign markets more than consumer products. 
B)  consumer products that are linked to other social or cultural variables are easily adaptable to foreign markets and thus involve very little risk in international marketing. 
C)  it is extremely risky to market basic commodities in international markets. 
D)  some products are more adaptable to foreign markets than others--and thus may be less risky. 
E)  All of the above are true statements.

Question 11

With regard to a firm's resources (when searching for attractive opportunities):

Accepted Answer

A)  a manufacturer needs skilled production people more than skilled salespeople. 
B)  lack of financial strength is often a barrier to entry. 
C)  large companies always have an advantage over smaller companies. 
D)  a familiar brand name is not very important since there are many new brand names. 
E)  a patent owner has a 3-year monopoly to develop its product. 
A)  a manufacturer needs skilled production people more than skilled salespeople. 
B)  lack of financial strength is often a barrier to entry. 
C)  large companies always have an advantage over smaller companies. 
D)  a familiar brand name is not very important since there are many new brand names. 
E)  a patent owner has a 3-year monopoly to develop its product.

Question 12

Regarding the competitive environment:

Accepted Answer

A)  It is easy to find environments that are "competitor-free." 
B)  Monopoly situations are more common than are situations characterized by monopolistic competition. 
C)  "Competitive rivals" are a firm's closest competitors. 
D)  Competitor analysis should begin with an identification of competitors from the viewpoint of the manager, not the consumer. 
E)  All of the above. 
A)  It is easy to find environments that are "competitor-free." 
B)  Monopoly situations are more common than are situations characterized by monopolistic competition. 
C)  "Competitive rivals" are a firm's closest competitors. 
D)  Competitor analysis should begin with an identification of competitors from the viewpoint of the manager, not the consumer. 
E)  All of the above.

Question 13

According to the "continuum of environmental sensitivity," which of the following types of products would be most sensitive to environmental changes?

Accepted Answer

A)  Consumer products that are basically a commodity--like gasoline 
B)  Industrial products 
C)  Consumer products that are tied to cultural differences--like diet colas 
D)  Manufacturing products 
E)  Engineering products 
A)  Consumer products that are basically a commodity--like gasoline 
B)  Industrial products 
C)  Consumer products that are tied to cultural differences--like diet colas 
D)  Manufacturing products 
E)  Engineering products

Question 14

The major shortcoming of competitor analysis is that it focuses on the weaknesses of competitors--but ignores their strengths.

Accepted Answer

A) True 
 B)False

Question 15

Using General Electric's "strategic planning grid," an opportunity rated "medium" in terms of industry attractiveness and "medium" in terms of business strengths would be evaluated as:

Accepted Answer

A)  yellow--borderline. 
B)  red--for no growth. 
C)  green--for growth. 
D)  could be yellow, red, or green--because the grid really doesn't deal with "medium" ratings. 
A)  yellow--borderline. 
B)  red--for no growth. 
C)  green--for growth. 
D)  could be yellow, red, or green--because the grid really doesn't deal with "medium" ratings.

Question 16

The Robinson-Patman Act specifically aims at:

Accepted Answer

A)  unfair methods of competition. 
B)  price discrimination. 
C)  deceptive advertising. 
D)  firms that rely on salespeople who sell "door to door." 
E)  attempts to monopolize. 
A)  unfair methods of competition. 
B)  price discrimination. 
C)  deceptive advertising. 
D)  firms that rely on salespeople who sell "door to door." 
E)  attempts to monopolize.

Question 17

Marketers no longer encounter differences among European countries.

Accepted Answer

A) True 
 B)False

Question 18

General Electric's "strategic planning grid":

Accepted Answer

A)  focuses on market share and market growth rate. 
B)  ignores some important issues--such as competitive structure and the environmental impact of a plan. 
C)  requires that all opportunities be judged either "High" or "Low." 
D)  substitutes quantitative estimates for management judgment. 
E)  None of the above is true. 
A)  focuses on market share and market growth rate. 
B)  ignores some important issues--such as competitive structure and the environmental impact of a plan. 
C)  requires that all opportunities be judged either "High" or "Low." 
D)  substitutes quantitative estimates for management judgment. 
E)  None of the above is true.

Question 19

Of the following objectives, the LAST objective(s) that a firm should specify is its ______________ objective(s).

Accepted Answer

A)  marketing 
B)  sales promotion 
C)  price 
D)  company 
E)  promotion 
A)  marketing 
B)  sales promotion 
C)  price 
D)  company 
E)  promotion

Question 20

The Magnuson-Moss Act regulates product warranties.

Accepted Answer

A) True 
 B)False

Exam 3: Evaluating Opportunities in the Changing Marketing Environment

According to the General Electric strategic planning grid, a business that is the strongest in its industry:

Competitive barriers are conditions that make it difficult for a firm to compete in a market.

The direct market environment

Which of the following types of products is LEAST sensitive to environmental changes, according to the "continuum of environmental sensitivity"?

Which of the following statements about company objectives is True?

Pill Makers Pharmaceuticals extensively tests all of its drugs to assure that it follows the _____.

Marketing managers should remember that there are many variables in the ____________ that affect strategy planning.

In a _____________ situation, competitors offer very similar products which customers see as close substitutes, and managers just compete with lower and lower prices as profit margins shrink.

In the total profit approach, management forecasts potential sales and costs during the life of the plan to estimate likely profitability.

According to the "continuum of environmental sensitivity":

With regard to a firm's resources (when searching for attractive opportunities):

Regarding the competitive environment:

According to the "continuum of environmental sensitivity," which of the following types of products would be most sensitive to environmental changes?

The major shortcoming of competitor analysis is that it focuses on the weaknesses of competitors--but ignores their strengths.

Using General Electric's "strategic planning grid," an opportunity rated "medium" in terms of industry attractiveness and "medium" in terms of business strengths would be evaluated as:

The Robinson-Patman Act specifically aims at:

Marketers no longer encounter differences among European countries.

General Electric's "strategic planning grid":

Of the following objectives, the LAST objective(s) that a firm should specify is its ______________ objective(s).

The Magnuson-Moss Act regulates product warranties.

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

Filters