Deck 5: The Global Marketing Environment

Question 1

Forces close to the organisation that affect its ability to develop and maintain successful transactions with its target customers is known as:

A) external environment.
B) market environment.
C) competitive environment.
D) macroenvironment.
E) microenvironment.

Answer 1

E

Question 2

Members of the group of people known as Generation X were born between which years?

A) 1986 and current year
B) 1946 and 1959
C) 1960 and 1965
D) 1977 and 1985
E) 1965 and 1976

Answer 2

E

Question 3

In light of the demographic changes occurring in Australia, many organisations are abandoning "shotgun" approaches aimed at the mythical "average consumer" and are instead designing products and marketing programmes targeting specific:

A) hypermarkets.
B) market segments.
C) mass markets.
D) micromarkets.
E) target markets.

Answer 3

D

Question 4

A new youth segment has been observed by some demographers. Aged between 10 and 14, this segment is perceived as maturing much more quickly and seeking the goods and services previously reserved for the 19- 21- year- old markets. This segment is known as:

A) tweens.
B) millenials.
C) teens.
D) cruisers.
E) treens.

Question 5

The tourism industry has felt the impact of the global recession more than many other industries. Yet, many consumers still find the means to take annual holidays. Tourism operators have noticed that many travellers have switched to short breaks, typically holidays of 2- 4 days duration rather than the longer holidays of the past. Prospective travellers are MOST likely to be responding to changes in which environment?

A) Political
B) Economic
C) Natural
D) Demographic
E) Cultural

Question 6

Which of the following would NOT be considered to be a member of the microenvironment?

A) government agencies
B) suppliers
C) the public
D) marketing intermediaries
E) competitors

Question 7

In Australia, the Marriage Act currently defines marriage as a union between a man and a woman. Gay rights activists are currently lobbying Parliament to change this definition to include same- sex partners. These activists are seeking to change:

A) core values.
B) culture.
C) secondary values.
D) sub- culture.
E) all of the above

Question 8

The most important demographic trend in Australia and New Zealand is the:

A) changing structure of the family.
B) mobility of the population.
C) increasing participation of women in the workforce.
D) slowing birth rate.
E) changing age structure of the population.

Question 9

Suppliers, intermediaries, competitors and publics are all members of which environment?

A) competitive environment
B) external environment
C) microenvironment
D) corporate environment
E) macroenvironment

Question 10

The observation that as family income rises, the percentage spent on food declines, the percentage spent on housing remains constant and both the percentage spent on other categories and that devoted to savings increase is known as:

A) Marx's law.
B) Heinrich's law.
C) Engel's law.
D) Epstein's law.
E) Pareto principle.

Question 11

Marketing analysts working in the wine industry have observed that Australians are drinking less wine in terms of volume, but are actually spending more on wine on an annual basis. This phenomenon has been widely interpreted as a shift to premium. That is, people are drinking less, but when they chose to drink they prefer to drink superior quality wines. This observation concerns changes in which environment?

A) Demographic
B) Natural
C) Cultural
D) Economic
E) Political

Question 12

A society's core beliefs and values have a high degree of:

A) conformity.
B) similarity.
C) ethno- centrism.
D) persistence.
E) simplicity.

Question 13

The study of human populations in terms of size, density, location, age, sex, race, occupation and other statistics is known as:

A) sociology.
B) socioeconomics.
C) population trend analysis.
D) culture studies.
E) demography.

Question 14

A marketer is considering which of the elements in the macroenvironment best help to understand consumers' beliefs, values, and views of the world. The marketer is thinking about the environment.

A) demographics
B) technological
C) political
D) cultural
E) economic

Question 15

Empty- nesters are defined as those:

A) couples who are yet to start their families.
B) grand- parents who are caring for children.
C) couples who are barren.
D) parents whose youngest child has left home.
E) couples who have adopted or fostered children.

Question 16

In Australia, the law that has the greatest impact on marketers is known as:

A) Personal Property and Securities Act, 2009.
B) Equal Opportunity Act, 2010.
C) National Consumer Credit Protection Act, 2009.
D) Electronic Transactions Act, 1999.
E) Competition and Consumer Act, 2010.

Question 17

Assume that you are a manager at a firm that has hired lobbyists to influence legislation affecting your firm's industry to its advantage. Your client's firm takes a(n) approach to the marketing environment.

A) adversarial
B) team work
C) proactive
D) reactive
E) aggressive

Question 18

In Australia, legislation affecting business serves a number of purposes. Which of the following is the primary purpose of such legislation?

A) to protect consumers from unscrupulous businesses
B) to protect organisations from each other
C) to prevent unfair competition
D) all of the above
E) none of the above

Question 19

Larger societal forces that affect the organisation, including demographic, cultural, technological, political and natural forces are known as:

A) marketing environment.
B) macroenvironment.
C) external environment.
D) the environment.
E) microenvironment.

Question 20

Consumer rights organizations and environmental action groups are examples of _ _ publics.

A) media
B) general
C) government
D) citizen- action
E) local

Question 21

Trendspotter, Faith Popcorn, has observed that some people have responded to an increasingly depersonalised society, by seeking out products and services that provide them with the recognition they desire. Personalised vehicle license plates are just one example of this shift which Popcorn calls "egonomics." Faith Popcorn is describing a change in which environment?

A) technological
B) economic
C) natural
D) political
E) cultural

Question 22

Firms that take aggressive actions to affect the publics and forces in their marketing environment by engaging in such activities as: hiring lobbyists to influence legislation affecting their industries; staging media events to gain favourable press coverage and running advertorials to shape public opinion. Such companies are said to be:

A) change agents.
B) market leaders.
C) industry leaders.
D) opinion leaders.
E) proactive companies.

Question 23

Which of the following statements BEST describes the accelerating pace of technological change?

A) Government has taken a leadership role in technology innovation through supportive state and federal regulations.
B) Corporate investment in research and development has increased.
C) Improved bio- medical technologies have led to increasing human life spans.
D) The decreasing time interval between an innovation's launch and its peak production
E) The speed at which one can communicate with the rest of the world

Question 24

When cultural shifts take place, it is more likely to have occurred by shifts in:

A) dynamic values.
B) ruling class values.
C) sub- cultural values.
D) secondary values.
E) core values.

Question 25

Ernst Engel's laws generally have been supported by recent studies. He discovered that as family income rises, the percentage spent on declines and the percentage spent on remains about constant.

A) food; housing
B) clothing; recreation/entertainment
C) food; clothing
D) recreation/entertainment; savings
E) savings; transportation

Question 26

A café proprietor is discussing the environment when he tells his customers that Colombia produces some of the finest coffee in the world.

A) cultural
B) geographic
C) natural
D) demographic
E) economic

Question 27

Which of the following combinations of expenses use up most household income?

A) housing, insurance, taxes
B) food, housing, transportation
C) food, travel, savings
D) housing, taxes, transportation
E) food, housing, retirement planning

Question 28

In the face of dwindling oil supplies, many international petroleum companies, are investing heavily in alternative fuels such as bio- fuels, compressed air, hydrogen, liquid nitrogen and other possibilities. These petroleum companies are responding to changes in which environment?

A) Natural
B) Cultural
C) Demographic
D) Economic
E) Political

Question 29

A reactive stance to the marketing environment is BEST described as one where marketers:

A) view change as something that must be investigated occasionally.
B) attempt to forecast changes and develop strategies for minimizing the impact of change.
C) do nothing and hope that change will not impact on operations or markets.
D) treat the environment as an uncontrollable element to which they must respond or adapt.
E) view change as undesirable, threatening and potentially dangerous.

Question 30

Any group that has an actual or a potential interest in, or impact on, an organisation's ability to achieve its objectives is known as a(n):

A) supplier.
B) public.
C) channel influencer.
D) change- agency.
E) intermediary.

Question 31

Factors that affect consumer buying power and spending patterns are known as:

A) microtrends.
B) economic factors.
C) demographic factors.
D) macrotrends.
E) social factors.

Question 32

Marketers have some chance of changing _ values but little chance of changing values.

A) strong; weak
B) dynamic; persistent
C) socialised; learned
D) tertiary; secondary
E) secondary; core

Question 33

Which of the following is an example of a secondary value?

A) Marriage is a union between a man and a woman.
B) People should always repay their debts.
C) Capital punishment is wrong.
D) Young people should go to clubs with their friends to celebrate 21st birthdays.
E) Children have the right to feel secure.

Question 34

A marketer of herbicides is likely to be the LEAST concerned about which of the following?

A) increased pollution
B) increased government intervention
C) chemical pollutants in the food supply
D) persistence of cultural values
E) shortages of raw materials

Question 35

The state planning authority of Canberra intends to make significant increases in its investment in aged care services over the next three decades. Strategic planning documents provide an explanation for this shift in spending, explaining that, "The population aged 65 years and over is projected to increase from 10.4% of the population in 2010 to 16.5% in 2030 and 21.9% by 2059." The state planning authority is responding to changes in which environment?

A) Economic
B) Cultural
C) Demographic
D) Natural
E) Political

Question 36

Which of the following would NOT be considered to be an internal public?

A) volunteers
B) workers
C) board of directors
D) suppliers
E) managers

Question 37

Trendspotter, Faith Popcorn, has noticed more and more people are living what she calls "99 lives" -a phenomenon that refers to the way that we occupy multiple roles seemingly simultaneously. Many people increasingly find themselves as part of a family, a work group, an online virtual world, a social network along with other groups and clubs. These "lives" frequently intersect and intrude on each other when, for example, a person seeks to relax with their family and their beeper or pager sounds, demanding attention from their working world. Faith Popcorn is describing a change in which environment?

A) cultural
B) natural
C) technological
D) political
E) economic

Question 38

The so- called "sea- change phenomenon" in which professional households swap their urban homes for rural lifestyles has placed considerable pressure on small seaside towns which often lack the necessary infrastructure like railway lines, schools, hospitals and government services to accommodate rapidly increasing population sizes. Many local governments are being forced to provide additional services with limited budgets to cope with the unexpected influx of new developments spawned by the sea- changers. These local governments are responding to changes in which environment?

A) Natural
B) Demographic
C) Cultural
D) Economic
E) Political

Question 39

A manufacturer of skincare products observed considerable channel switching amongst the target market. Instead of purchasing their preferred brands from pharmacies, customers are switching to supermarkets and department stores for skincare products. This manufacturer has observed a change in which environment?

A) macroenvironment
B) microenvironment
C) economic environment
D) competitive environment
E) external environment

Question 40

Which of the following is an example of a core value?

A) Professionals should wear business clothes to work.
B) Marriage is a union between a man and a woman.
C) The comforts of home are more important than entertainment outside of the home.
D) Australians should display their patriotism.
E) Extended warranties are never worth the money consumers pay for them.

Question 41

According to the National Centre for Social and Economic Modelling, baby boomers, are more concerned about leaving their descendants a generous inheritance than to spend their savings on their own lifestyle.

Question 42

In November, 1989, the Australian Bureau of Statistics estimated the size of Australia's population at 22.76 million.

Question 43

In October, 2011, the world's population reached a total of billion and is expected to reach billion by 2040.

A) 9; 14
B) 10; 12
C) 7; 9
D) 7; 15
E) 9; 11

Question 44

The single most important demographic trend in Australia and New Zealand is the changing age structure of the population.

Question 45

The main difference between core beliefs and secondary beliefs is that core beliefs are more persistent and more difficult to change.

Question 46

The development of medical diagnostic equipment, computers, and easy- to- use flea control methods are all examples of what is happening in the environment.

A) natural
B) social
C) political
D) cultural
E) technological

Question 47

By international standards, Australian businesses are heavy investors in Research and Development.

Question 48

Marketers can take a(n) by taking aggressive action to affect the publics and forces in their marketing environments.

A) environmental perspective
B) relationship building perspective
C) natural perspective
D) proactive stance
E) imitative approach

Question 49

The main cultural values of a society are expressed in people's views about themselves, others, organisations, society, nature and the universe.

Question 50

For most Australian families, the single largest weekly outlay is housing costs.

Question 51

Demographic trends are difficult to detect so it is understandable that marketers are often surprised by new demographic developments.

Question 52

Public concern about marketing activities and its potential to damage natural environments has been steadily increasing since the 1960s.

Question 53

According to a survey cited in your text, the intentions of baby boomers approaching retirement is to travel, spend their retirement savings on home renovations, upgrade possessions and do more eating out.

Question 54

Marketers, more than any other group in the company, must be aware of both the microenvironment and macroenvironment and should continually track trends in order to identify opportunities.

Question 55

On average, women earn similar salaries to their male counterparts.

Question 56

A company that understands all the laws affecting business and knows that it is operating legally does not need to worry about the political environment.

Question 57

Consumer action groups and environmental lobby groups may question a marketing organisations's decisions and activities. These groups are known as local publics.

Question 58

The resources that are needed as inputs by marketers, such as raw materials and energy, are referred to as part of the:

A) endangered environment.
B) factors of production.
C) green movement.
D) raw material market.
E) natural environment.

Question 59

Core beliefs and values are passed on from parents to children and are reinforced by schools, churches, business and government.

Question 60

The traditional image of a two- child, two- car suburban family is still very commonplace and remains very relevant today.

Question 61

Australians living in different states or regions exhibit similar purchasing patterns.

Question 62

Carefully distinguish between core values and secondary values. Explain why this distinction is important to marketers.

Question 63

Business investment in solar power, wind power, hydrogen energy and carbon sequestration is being driven, at least in part, by concerns about shortages of non- renewable energy sources.

Question 64

Marketers find it relatively difficult to market to Generation Xers because they are a relatively sceptical bunch, cynical of frivolous marketing pitches that promise easy success or quick rewards.

Question 65

Explain what you understand by the economic environment and why it is important for marketers. Use examples from your own experience or general knowledge to illustrate your answer (i.e. non text book examples).

Question 66

The Australian law that has the greatest impact on marketers is the Consumer and Competition Act of 2010.

Question 67

A recent report released by Monash University researchers has suggested that housing affordability in Melbourne is falling sharply and that Melbourne is now ranked second only to Sydney as the least affordable city for home buyers. A key indicator used in housing research is the median house price and median household income multiple. The research showed that the median Melbourne house price was $576,000 and the median household income was $67,700. Thus the multiple for Melbourne is 8.4 (compared with 9.2 in Sydney). Factors explaining the decline in housing affordability are largely economic: escalating land prices, increasing construction costs, failed planning policies and shortages of land in metropolitan area. Briefly discuss the
implications of housing affordability in Melbourne from a consumers' perspective.

Question 68

You are the marketing manager for a small company that manufacturers gold and silver jewellery and that conducts business in the USA and Western Europe. Explain how the four trends in the natural environment are likely to affect your business.

Question 69

There are six major forces in the global macroenvironment. Briefly outline each of the six forces.