Deck 3: The Marketing Environment

Question 1

How many factors make up the marketing environment?

A) 1
B) 2
C) 3
D) 4

Answer 1

2

Question 2

The micro-environment is sometimes referred to as the internal environment.

Answer 2

True

Question 3

Which element would be categorized in the micro-environment for managers at Ben & Jerry's?

A) Ingredients
B) Population trends
C) Cultural beliefs
D) Legal regulations

Answer 3

Ingredients

Question 4

Which term best describes a collection of buyers and sellers interested in making similar or related exchanges?

A) Market
B) Developing Economy
C) Mature Economy
D) Publics

Question 5

Which term best describes a market having relatively stable competitors and customers?

A) Established Markets
B) Evolving Markets
C) Federal Trade Commission (FTC)
D) Macro-environment

Question 6

Which term best describes a market that is changing rapidly and does not have stable competitors or customers?

A) Evolving Markets
B) Established Markets
C) Federal Trade Commission (FTC)
D) Macro-environment

Question 7

Which term is most applicable to couples living in households as unmarried partners?

A) Cohabitation
B) End consumers
C) Publics
D) Resellers

Question 8

Which of the following will increase sustainability?

A) Using solar power
B) Burning coal for power
C) NOT having recycling bins
D) Using all plastic products

Question 9

Many employers are trying to market the work/life balance of their work environment to potential employees; what component of the macro-environment are these employers focusing on?

A) Political/regulatory/legal
B) Technological
C) Economic/Financial
D) Social/Cultural

Question 10

Which term best describes the combinations of controllable and uncontrollable forces that affect a marketing decision?

A) Marketing Environment
B) Marketing intermediaries
C) Market Share
D) Micro-Environment

Question 11

Which term best describes the most important micro-environment element, the opposite partner in an exchange?

A) Customer
B) Company
C) Competitor
D) Suppliers

Question 12

Which term best describes anything in the environment that directly affects or is directly affected by the marketing manager's decisions?

A) Micro-environment
B) Macro-environment
C) Mature Economy
D) Market

Question 13

A Customer who purchases a product to use personally, such as grocery shoppers that buy Ben & Jerry's to take home for dessert is a(n)

A) end consumer.
B) company.
C) competitor.
D) supplier.

Question 14

A customer who purchases a product to exchange with others, such as a school purchasing Ben & Jerry's to serve as part of its lunch program is a(n)

A) reseller.
B) end Consumer.
C) competitor.
D) supplier.

Question 15

Which element would be categorized in the macro-environment for managers at Ben & Jerry's?

A) Cultural beliefs
B) Ingredients
C) Prices
D) Flavors

Question 16

Controllable and uncontrollable forces that affect marketing decision make up the

A) marketing environment.
B) micro-environment.
C) market.
D) macro-environment.

Question 17

If Ben & Jerry's sales for 2016 were $200,000 and the entire ice cream market had sales of $2,000,000 for 2016, what is Ben & Jerry's market share?

A) 10%
B) 9%
C) 1%
D) 10

Question 18

Which is a secondary competitor for Ben & Jerry's Ice Cream?

A) Frozen yogurt
B) Cold Stone Creamery
C) Baskin Robbins
D) Halo Top ice cream

Question 19

Who is NOT an intermediary for Ben & Jerry's ice cream?

A) A dairy supplier
B) A marketing team that designs product labels
C) A certified public accounting (CPA) firm that provides audit services
D) A trucking company that transports the product

Question 20

Which is an intermediary for Ben & Jerry's Ice Cream?

A) A trucking Company that transports the product
B) A dairy supplier
C) An ice cream carton supplier
D) A chocolate supplier

Question 21

Who is included in the publics of the ice cream market?

A) Investors in a specific ice cream brand
B) Cashier at the local grocery store selling ice cream
C) Employee at the plant where the ice cream is made
D) Truck driver transporting the ice cream to the stores to be sold

Question 22

Who is NOT included in the publics of the ice cream market?

A) Cashier at the local grocery store selling ice cream
B) Investors in a specific ice cream brand
C) Consumers of the product
D) Government employees

Question 23

Which represents an intermediary relationship?

A) A private equity firm has invested in a logistics company.
B) A logistics company purchases truck tires from Goodyear.
C) A bank provides a loan to an individual purchasing a car.
D) A small bank uses an outsourced human resources company for its HR needs.

Question 24

Now that some grocery stores offer a space for dining in, such as Whole Foods, they've partially transitioned from _________ to _________ of restaurants.

A) primary competitors; secondary competitors
B) suppliers; primary competitors
C) suppliers; unexpected competitors
D) secondary competitors; primary competitors

Question 25

Which is an example of intermediary for Nike?

A) A maker of rubber that can be used in shoes
B) A producer of thread that can be used for laces
C) Facebook selling add space to Nike on their website
D) A lobbyist group that helps Nike get tax breaks for opening up a store in a specific part of town

Question 26

What is the MOST important element of the micro-environment?

A) Company
B) Publics
C) Suppliers
D) Customers

Question 27

Apple's relationship with Samsung in the cell phone space is an example of

A) dual suppliers.
B) joint venture.
C) primary competitors.
D) unexpected competitors.

Question 28

Which of the following is MOST correct?

A) The automobile industry is an established market in the United States and an evolving market in Japan.
B) The automobile industry is an established market in Germany and an evolving market in Cuba.
C) The automobile industry is an established market in the United States and an evolving market in Germany.
D) The automobile industry is an established market in Germany and an evolving market in the United States.

Question 29

Which of the following is NOT an example of a company reacting to changes in the micro-environment?

A) Ben & Jerry's recently undertook certain cost-cutting measures due to budget constraints and have begun using lower quality ingredients.
B) After completing a survey of consumer tastes, Burger King began to offer an alternative to McDonalds' Big Mac.
C) Relative to 30 years ago, Tide began featuring more commercials with interracial couples.
D) Nike signed a contract with a new rubber supplier and was able to produce more durable shoes for the same price.

Question 30

Cell phones have evolved from a ________ to a ________ for computers.

A) supplier; market
B) competitor; supplier
C) competitor; market
D) None of the above

Question 31

Acting as a(n) _________ is a major way Facebook makes money.

A) supplier
B) intermediary
C) reseller
D) None of the above

Question 32

Which of the following would a company probably have the least amount of influence over?

A) A supplier raising prices
B) The local government introducing new taxes
C) A competitor lowering prices
D) A company would likely have equal influence over all of the above.

Question 33

Which of the following will decrease sustainability?

A) Using solar power
B) Burning coal for power
C) Using recycling bins
D) Using biodegradable products

Question 34

The part of the marketing environment that is closely linked to the day-to-day business decisions is known as

A) the business environment.
B) the central environment.
C) the micro-environment.
D) the macro-environment.

Question 35

Despite the large number of elements in the marketing environment, the marketer should focus on those that affect

A) facilitating an exchange.
B) beating the competition.
C) introducing a successful product.
D) meeting laws and regulations.

Question 36

As a marketer considers the micro-environment, having strong brands that customers value fits into which component?

A) Market
B) Intermediaries
C) Company
D) Competitors

Question 37

The marketer will often seek growth in the kind of market characterized by rapid change without stable customers or markets known as

A) erupting markets.
B) dynamic markets.
C) chaotic markets.
D) evolving markets.

Question 38

Market share is calculated by

A) dividing the sales of the firm's brand by combined sales of its brand and competitors' similar products.
B) dividing the total sales of similar products by total domestic spending.
C) dividing the sales of a firm's brand by the next highest sales of competitors' products.
D) dividing a consumer's annual purchase of a brand by his or her total spending on similar products.

Question 39

Given the nature of technology today, technology markets are considered to be

A) disrupted markets
B) volatile markets.
C) revolving markets.
D) evolving markets.

Question 40

As a marketer, you are looking at, among other things, what the firm needs to make its products and bring it to market and those who will buy the product. Which element of the micro-environment is considered most important as the exchange partner with different wants and needs?

A) Competitors
B) Customers
C) Suppliers
D) Intermediaries

Question 41

The class of customers who buy products but have no intention of using the products for themselves are known as

A) hoarders.
B) resellers.
C) opportunists.
D) arbitrageurs.

Question 42

Which of the following is NOT one of the three types of competitors?

A) Primary competitors
B) Secondary competitors
C) Insignificant competitors
D) Unexpected competitors

Question 43

You are responsible for marketing movies for a cinema chain. In addition to monitoring what other cinema chains are doing, you need to look at other forms of entertainment that are considered to be

A) primary competitors.
B) competitive threats.
C) unexpected competitors.
D) secondary competitors.

Question 44

The Chief Marketing Officer (CMO) has looked at a draft of your plan for the launch of a new product. While generally satisfied, she says, "You've shown good strong reasons for new customers to buy our new product, but we can't consider this plan in a vacuum." You need more detailed analysis and planning on which element of the micro-environment to address her specific concerns?

A) Competitors
B) Customers
C) Company
D) Intermediaries

Question 45

Beth owns and operates a garden store focusing on plants native to her region. Though she knows she needs to monitor all kinds of brick-and-mortar and online companies selling plants, she feels most concerned about other garden stores within driving distance. These stores would be considered her

A) retail competitors.
B) primary competitors.
C) secondary competitors.
D) unexpected competitors.

Question 46

Market share may be difficult to determine and may not be useful at all if what kind of competitors begin attracting customers?

A) Alpha competitors
B) Primary competitors
C) Secondary competitors
D) Unexpected competitors

Question 47

Companies can enhance their marketing goals for strategic advantage and exercise significant control through careful selection of its

A) suppliers.
B) salesforce.
C) competitors.
D) publics.

Question 48

Which of the following is NOT one of the criteria a firm would use in evaluating suppliers?

A) Supplier firm ownership
B) Additional benefits
C) Sharing goals
D) Shared values

Question 49

When firms use other firms to perform tasks that could otherwise be done by the company itself, such as providing logistics or marketing research, they are demonstrating the importance of what part of the micro-environment?

A) The company
B) Intermediaries
C) Suppliers
D) Competitors

Question 50

Josh is a newly hired marketing assistant, and his boss is discussing the micro-environment of his new firm. She notes that the advertising agency is an intermediary. Why would she classify the agency as an intermediary?

A) "Intermediary" is the same as "supplier," and she could have used either term.
B) Intermediaries help connect the company to the customer.
C) The agency provides a service not a product used in the firm.
D) The firm has more control over an intermediary than a supplier.

Question 51

As technology has given consumers and potential consumers access to information about firms, many firms have felt increasingly vulnerable to misinformation as well as information to facilitate purchases. The micro-environment element that includes groups that have an interest in the firm but who are not directly related are known as

A) third parties.
B) indirect suppliers.
C) publics.
D) intermediaries.

Question 52

Which of the micro-environment components is LEAST under the marketer's control or direct influence?

A) Intermediaries
B) Suppliers
C) Company
D) Publics

Question 53

Within the U.S. culture, the changing nature of the family means marketers must

A) adapt the marketing mix to focus on which changing consumer decision making area.
B) reinforce their attention on the population that is aging.
C) pay less attention to the growth in Hispanic and other cultural groups.
D) discount the importance of demographics in their analyses.

Question 54

Marketers have new challenges and opportunities with new and different holidays, different promotions, and new kinds of buying behaviors as part of what component of the social/culture element in the macro-environment?

A) Diversity
B) The changing nature of the family unit
C) Changing ethical and moral values
D) The aging of the generational cohorts

Question 55

Which of the following is NOT one of the four basic rights articulated in the Consumer Bill of Rights?

A) The right to be informed
B) The right to safety
C) The right to be heard
D) The right to privacy

Question 56

In recent years, the political, regulatory and legal environment has affected every element of the marketing mix. Which of the following is NOT a consequence of this changing environment?

A) Consumers' rights have expanded affecting virtually every area of marketing.
B) Compliance has become more expensive.
C) The market is more orderly and efficient.
D) The marketer must be more attuned to conflicting regulations.

Question 57

David was given the responsibility of tracking changes in federal regulations that would affect the marketing efforts in his firm. Which of these agencies should be one he'd need to track for marketing implications?

A) The Alcohol, Tobacco and Firearms Bureau
B) The Food and Drug Administration
C) The Centers for Disease Control
D) The National Health Institute

Question 58

Which of the following is NOT one of the areas on which the Federal Trade Commission focuses?

A) Misleading advertising
B) Privacy issues
C) Keeping competition fair
D) Internet usage by companies

Question 59

If you are frustrated at making only enough money to pay your basic living expenses with little or no money left over to pay for fun, you are frustrated at your lack of

A) fixed income.
B) net income.
C) disposable income.
D) discretionary income

Question 60

Unless you are marketing necessities like rent, utilities and transportation, which is your major concern as a marketer?

A) Gross income
B) Net income
C) Disposable income
D) Discretionary income

Question 61

Your firm manufacturers small household appliances, and you see that with growing sophistication in the U.S. domestic market, you should turn to other countries to extend the life of these products with limited appeal domestically. There are large populations in subsistence economies who don't have anything like your appliances, and your senior management has asked you to explore going into these markets. You are very uncomfortable with this approach. Why?

A) There are too many legal issues in international commerce.
B) You don't speak the languages of any of these countries.
C) There are limited opportunities beyond the agricultural and basic manufacturing in these countries.
D) You know these countries have different electrical currents, and you would have to adapt your products.

Question 62

If you borrow money, you will have to repay more than the amount you initially borrowed due to

A) inflation.
B) interest.
C) time-value of money.
D) federal regulations.

Question 63

A firm is considering locations for a new manufacturing facility to meet market demands and has been reviewing the macro-environment as it considers how to market the newly manufactured products. The firm has found a location with a good potential workforce and good transportation access. The concern is that the new facility would require a great deal of water, which might affect farmers and others depending on a good supply of water. What element of the macro-environment do they need to address?

A) Political and regulatory
B) Sustainability
C) Demographics
D) Technology

Question 64

Why would marketers advocate for sustainability as a company approach?

A) It's a good way to avoid government scrutiny and monitoring.
B) It's a good tool to help in recruiting Baby Boomer talent.
C) It's a good way to connect with customers.
D) It's a good way to stay ahead of competitors.

Question 65

Marketers include technology in their assessment of the macro-environment because

A) they depend on their smart phones for research and communications.
B) they are looking for expanded opportunities for marketing.
C) they see social media as replacing all other marketing efforts in the near future.
D) they see their competitors using newer technologies.

Question 66

Potential customers can be overwhelmed at the amount of information they can get on a product even though it is easier to find the product and buy it if they choose. This is an example of what part of the macro-environment?

A) Government concerns about privacy
B) Changing household patterns
C) The paradox of technology
D) The shift in values

Question 67

Your roommate is studying IT, and she sees you are looking at Technology in the macro-environmental analysis. She asks, "Why would marketers need to worry about technology? That's what IT is for." How can you succinctly respond in the context of the macro-environment?

A) Marketers can't leave technology to IT.
B) Marketing requires a comprehensive view of everything that goes on in a market, and technology is one part of that.
C) Marketers need to market technology in many companies.
D) Marketers must become experts in technology as it is the most important part of the marketing environment.

Question 68

Technology has enabled companies to collect vast amounts of data about customers and transactions. If you were a marketer, which of the following is NOT one of the reasons why you'd want that data, even purchasing the data?

A) They can become data resellers.
B) They can learn about consumer preferences.
C) They can develop insights on how goods are purchased.
D) They can use the data to design new products and services.

Question 69

Marketers cannot control, and often cannot even influence, elements in the macro-environment, so why bother collecting data and analyzing the data for insights?

A) Federal and state laws require extensive record-keeping.
B) The American Marketing Association mandates collection of data for professionalism in marketing.
C) Marketers are looking for ways to create competitive advantages.
D) Consumers expect firms to understand their problems and individual needs.

Question 70

Marketers are aware of all five SPENT areas of the macro-environment but focus only on those two or three that affect their products and services the most.

Question 71

The micro-environment is also referred to as the external environment.

Question 72

A company has an immediate environment.

Question 73

The marketer should only be concerned about the parts of the micro- and macro-environments that are under his or her control.

Question 74

Although the components of the macro-environment seem to be removed from day-to-day decision making, major threats can emerge quickly, demanding immediate attention.

Question 75

Marketers need to pay careful attention to the market dynamics in their suppliers' marketplaces as threats to the marketer's firm can arise in those markets.

Question 76

Consumer groups are not an essential part of the firm's micro-environment if they are not made up of customers.

Question 77

In the social/cultural area of the macro-environment, demographics can be obtained by many firms. One way this information is used is to predict consumer behavior.

Question 78

When looking at the macro-environment, "income" and "wealth" are synonymous.

Question 79

RadBoards is a longboard manufacturer that currently has $2 billion of revenue in a $4 billion market with dozens of competitors. However, RadBoards is losing money each year. Which piece of the marketing environment (micro or macro) should RadBoards focus on to become profitable and why?

Question 80

The utility of the cellphone has drastically increased in the last 20 years. Discuss three markets in which cellphones have went from being a non-participant to being one of the three types of competitors.