Deck 2: Situation Assessment: the External Environment

Question 1

occurs when a product provides more value to each customer when more overall customers own or use the product.

A)Network effect
B)Economy
C)Virtuous circle
D)Synergy

Answer 1

A

Question 2

A marketer who is conducting a broad exploration of customer insights and emerging market trends is most likely involved with .

A)customer relationship management
B)strategy formation
C)segmentation
D)customer assessment

Answer 2

D

Question 3

A supply side approach to market definition focuses on the .

A)primary industry
B)customers' perspectives
C)budget competition
D)alternative products

Answer 3

A

Question 4

In the marketing process,which of the following is NOT one of the four Cs considered essential during a situation assessment?

A)conversions
B)context
C)competition
D)customers

Question 5

Competitive rivalry,the bargaining power of suppliers and customers,and the threat of substitute products and new entrants are the forces that jointly influence .

A)industry profitability
B)product scale effects
C)demographic trends
D)economies of scope

Question 6

PIMS data shows a strong correlation between _ and _ .

A)profitability; marketing success
B)market share; product quality
C)market share; profitability
D)unit costs; marketing strategy

Question 7

Demographics,norms,and lifestyles are factors in the context that marketers must always consider.

A)regulatory
B)social
C)physical
D)political

Question 8

In a concentric market,which of the following is the core?

A)product category
B)budget competition
C)generic competition
D)product form

Question 9

Producing more than one product and lowering the cost of production of all products is best known as .

A)experience curve effects
B)virtuous circles
C)diseconomies of scale
D)economies of scope

Question 10

Which term refers to increases in unit costs as production increases?

A)vicious circle
B)diseconomies of scale
C)economies of scope
D)experience curve effects

Question 11

Which of the following best describes a situation in which more people are buying a product,more retailers are wanting to stock the product,and sales of the product are increasing?

A)virtuous circles
B)learning curve effects
C)economies of scope
D)synergy

Question 12

Major strategic gains and losses will most likely occur at which stage of the product life cycle?

A)maturity
B)growth
C)decline
D)introduction

Question 13

Which of the following would most likely lower unit costs while increasing reliability and conformance quality?

A)learning curve effects
B)network effects
C)diseconomies of scale
D)economies of scope

Question 14

Economies of scale are primarily increased by .

A)knowledge retention rates
B)higher units of production
C)strict industrial standards
D)major quality modifications

Question 15

In which stage of the product life cycle would share building most likely be difficult and lead to price competition?

A)introduction
B)growth
C)maturity
D)decline

Question 16

Which of the following would most likely occur during an assessment of the external marketing environment?

A)contacting financial resources
B)evaluating core competencies
C)analyzing the specific industry
D)establishing strategic moves

Question 17

Which of the following is most likely to result from higher market share?

A)higher profits
B)lower volume
C)higher unit costs
D)lower reliability

Question 18

What is the broadest level of a concentric market?

A)generic competition
B)product form
C)budget competition
D)product category

Question 19

Marketers should be aware of tax codes,operating rules,and guidelines that affect business and industry in a given society. This is the context.

A)social
B)political
C)physical
D)economic

Question 20

Which of the following is NOT a challenge presented to marketers by the product life cycle?

A)A firm must be effective at adapting its marketing strategies for different life cycle stages.
B)Sales and profits for all products eventually decline.
C)It is difficult to plot the life cycle stages as a product goes through them.
D)Changing tastes and technologies affect the marketing of a product as it passes through life cycle stages.

Question 21

Which term best describes the effect that occurs when production volume increases and unit costs decline?

A)experience curve
B)competitive advantage
C)virtuous circles
D)single sourcing

Question 22

In order to be the most effective,the scope of a market definition should be fixed.

Question 23

The micro environment consists of larger societal forces that affect a company,such as demographic,economic,political,and cultural forces.

Question 24

For the most effective situation assessment,which of the following should occur first?

A)evaluating technology
B)defining the market
C)determining a marketing mix
D)reviewing customer needs

Question 25

Which stage of the marketing process primarily involves monitoring the environment,evaluating the firm's core competencies,and anticipating future events?

A)situation assessment
B)market segmentation
C)budget analysis
D)positioning

Question 26

Most significant strategic gains and losses occurring during the growth phase of a market.

Question 27

Why is it important to conduct a situation assessment? What are the primary external factors to consider during a situation assessment?

Question 28

The product life cycle,scale effects,and market share effects are generalizations in strategic marketing that cannot be changed.

Question 29

What is the primary goal of customer assessment?

A)predicting future patterns of customer needs
B)analyzing historical consumer trends
C)attracting interest among new customers
D)customizing product offerings to consumers

Question 30

Why is it important to define the market when conducting a situation assessment?

Question 31

Findings about customers discovered through techniques often lead to marketing opportunities.

A)value networking
B)data mining
C)data warehousing
D)product branding

Question 32

According to the text,identifying customer insights is the first step in .

A)maintaining economies of scale
B)branding products
C)discovering new markets
D)implementing the marketing mix

Question 33

Which of the following is NOT one of the forces that drive industry analysis?

A)threat of new entrants
B)competitive rivalry
C)product- market evolution
D)bargaining power of buyers

Question 34

Using interviews and ethnographies to gather customer insights produces general findings that can be applied to the mass market.

Question 35

How do marketers benefit from understanding where a product and an industry are in the product life cycle?

Question 36

Marketers can most likely use the product life cycle concept as a tool for .

A)collecting data for product analysis
B)conducting advertising tests
C)predicting sales trends
D)targeting niche consumers

Question 37

Which of the following would most likely be used by a marketer gathering customer insights about unmet and unrecognized customer needs?

A)data mining
B)loyalty surveys
C)in- depth interviews
D)trendspotting

Question 38

A broad,subjective search for trends across media and other environments is known as .

A)positioning
B)data mining
C)coolhunting
D)targeting