Deck 4: Marketing Environment and Strategy

Question 1

Although this environment is in many ways uncontrollable, there are circumstances when an organization, or an industry coalition, can affect legislation in its own favour. This is referred to as the:________ These specialists are often hired for which of the following reasons?

A) economic environment
B) technological environment
C) social environment
D) political environment.

Answer 1

D

Question 2

Marketers can conduct business-government relations in various countries through a number of ways. This might include:

A) A PR assistant may be invited to give a series of seminars to the organization on past government marketing campaigns.
B) Employing a statistician who worked for the governments National Office for Statistics.
C) A politician may be paid a fee to give political advice on matters of importance to an organization.
D) Both inviting a PR assistant to give a series of seminars to the organization on past government marketing campaigns and employing a statistician who worked for the government's National Office for Statistics.

Answer 2

C

Question 3

______ is the combined output of goods and services in a particular nation and is a useful measure for determining relative wealth between countries when comparisons are calculated per member of the population.

A) Price inflation
B) Gross Domestic Product (GDP)
C) Wage inflation
D) Export quota controls and duties

Answer 3

B

Question 4

People's lifestyles are increasingly changing. A number of key trends in Europe include the trend towards marrying later and a greater tendency to divorce than in previous generations. This has resulted in an increase in single-person households. This is an example of which factor in the external environment?

A) Legal environment.
B) Political environment.
C) Socio-cultural environment.
D) Ecological environment.

Question 5

____________ in the Boston Box exist in fairly stable, low-growth markets and require little on-going investment. Their high market share draws both positive cash flows and high levels of profitability. .

A) Question marks
B) Dogs
C) Stars
D) Cash cows

Question 6

Most countries place restrictions on the prices that pharmaceutical companies can charge for drugs. In Japan, price regulations are stipulated for individual products, while in the UK, strict controls are placed on the overall profitability of products supplied by a specific company to the National Health Service. These are examples of:

A) Ecological environment.
B) Economic environment.
C) Political environment.
D) Legal environment.

Question 7

Consumers are also keen to ensure that companies and their products are not damaging the environment or causing harm to consumers. This has been accompanied by a rise in the popularity of 'Fairtrade' products. This is an example of a __________ trend.

A) social
B) technological
C) ecological
D) production

Question 8

Porter's Five Forces of Competitive Industry Analysis comprises the analysis of the interplay of the following five factors:

A) Suppliers, buyers, technologies, competitors, and systems.
B) Suppliers, buyers, new entrants, competitors, and substitutes.
C) Systems, buyers, new entrants, products, and substitutes.
D) Systems, products, buyers, substitutes and new markets.

Question 9

The process of gathering information about a company's external events and relationships, in order to assist top management in its decision-making, and the development of its course of action is referred to as marketing information system (MIS)

Question 10

Differentiation strategies are used by organizations to seek gaps in broad market segments or find gaps in competitors' ranges. In other words, focus strategies help to seek out unfulfilled market needs.

Question 11

Cost leadership is a strategy involving the production of goods and services for a broad market segment, at a cost lower than all other competitors.

Question 12

The final step in the marketing planning process should be a phase of strategic appraisal and evaluation. This will covers a period of between three and five years, and provide a strategic insight into the markets, competitors, and organizational resources that will shape the direction and nature of the way in which the firm has decided to compete.

Question 13

Hold objectives are concerned with defence. They are designed to prevent and fend off attack from aggressive competitors.

Question 14

In the BCG matrix, products that exist in growing markets but have low market share are referred as:

A) Dog
B) Star
C) Question marks
D) Cash cows