Exam 3: Evaluating Opportunities in the Changing Marketing Environment

Before the Pure Food and Drug Act was passed, it was assumed that the common law and the warning "let the buyer beware" would take care of consumers.

GE's strategic planning grid considers two dimensions -- industry attractiveness and market growth -- to identify opportunities that may be growth, borderline, or no growth.

Over the long run, most product-markets tend toward monopolistic competition.

Key countries in Europe have moved to the euro, a new unified money system for the European Union.

Ownership of patents, a familiar brand name, and financial strength are some of the many resources of a firm that a manager should evaluate when searching for new opportunities.

A mission statement can help a manager decide which opportunities to pursue and which to screen out.

With the "unification of Europe":

A mission statement substitutes for more specific objectives.

SBUs are small businesses that try to compete with major divisions of larger multiproduct companies.

The economic environment:

Because the Consumer Product Safety Commission has no power to force a product off the market, safety is not a very important consideration in product design.

The Sherman Act and the Clayton Act:

The competitive environment affects the number and types of competitors the marketing manager must face and how they may behave.

The Sherman Act is primarily designed to:

Organizational units (within a larger company) which focus their efforts on selected product-markets and are treated as separate profit centers are called:

Good marketing objectives should be ambitious and almost impossible to achieve.

Product-market screening criteria should:

Smaller producers always have a great advantage in competing with larger producers because of their flexibility.

Managers are now applying a new screening criteria, sustainability, that reinforces the importance of meeting present needs without compromising the ability of future generations to meet their own needs.

Which of the following laws focuses on price discrimination on goods of "like grade and quality" without a cost justification?