Question 1

Competitor analysis is an organized approach for evaluating the strengths and weaknesses of current or potential competitors' marketing strategies.

Accepted Answer

A) True 
 B)False

Question 2

A strategic business unit (SBU) within a larger firm is usually treated as a separate profit center.

Accepted Answer

A) True 
 B)False

Question 3

When a local bank in Kansas City makes loans to its small business customers, it charges them an interest rate for borrowing money. Interest rates are part of the ____________ environment.

Accepted Answer

A)  cultural and social 
B)  economic 
C)  legal 
D)  political 
E)  competitive

Question 4

A large producer with economies of scale always has a competitive advantage over smaller firms.

Accepted Answer

A) True 
 B)False

Question 5

If Climbing High Ladder Company produced ladders that were unstable and caused many injuries, the ___ has the power to force the company to recall its product.

Accepted Answer

A)  Consumer Product Safety Commission 
B)  Food and Drug Administration 
C)  Federal Trade Commission 
D)  Environmental Protection Agency 
E)  Consumer Protection Agency

Question 6

Portfolio management:

Accepted Answer

A)  heavily emphasizes long-run profitability. 
B)  is preferred over the General Electric strategic planning grid. 
C)  allows a manager to compare different divisions within the company. 
D)  is another name for the combined target market approach. 
E)  None of the above is true.

Question 7

Product warranties are regulated by the Magnuson-Moss Act.

Accepted Answer

A) True 
 B)False

Question 8

In multiproduct firms, the emphasis in portfolio management is usually on the long run rather than the short run.

Accepted Answer

A) True 
 B)False

Question 9

Nationalism may affect marketing strategy planning by determining to whom and how much a firm may sell.

Accepted Answer

A) True 
 B)False

Question 10

Consumer emphasis on fitness has created opportunities for firms like Nike, Nautilus and Schwinn, and illustrates the impact of the changing:

Accepted Answer

A)  technological environment. 
B)  economic environment. 
C)  competitive environment. 
D)  cultural and social environment. 
E)  political and legal environment.

Question 11

The cultural and social environment affects how and why people live and behave as they do.

Accepted Answer

A) True 
 B)False

Question 12

Most industrial products tend to be near the "insensitive" end of the continuum of environmental sensitivity.

Accepted Answer

A) True 
 B)False

Question 13

A marketing manager in a large corporation wrote the company's president a memo in which she said: "The performance of our SBU has improved." An "SBU" is a:

Accepted Answer

A)  struggling business unit. 
B)  small business unit. 
C)  selective branding unit. 
D)  strategic business unit. 
E)  secondary bidding unit.

Question 14

Typically, firms need a hierarchy of objectives. Which of the following best represents a correct hierarchy of a firm's objectives?

Accepted Answer

A)  Company objectives, sales promotion objectives, marketing objectives, promotion objectives. 
B)  Marketing objectives, company objectives, promotion objectives, sales promotion objectives. 
C)  Company objectives, marketing objectives, promotion objectives, sales promotion objectives. 
D)  Marketing objectives, promotion objectives, sales promotion objectives, company objectives. 
E)  Promotion objectives, sales promotion objectives, company objectives, marketing objectives.

Question 15

Technology provides new opportunities and new challenges for marketers.

Accepted Answer

A) True 
 B)False

Question 16

Competitive barriers in the Japanese market for disposable diapers impacting P&G included all of the following except:

Accepted Answer

A)  Uni-Charm and Kao are leading brands in Japan. 
B)  Uni-Charm and Kao have established distribution channels in Japan. 
C)  Most grocery stores are small in Japan and require frequent restocking. 
D)  Pampers offers better fit and absorbency.

Question 17

The recent interest in physical fitness has forced producers of food, clothing, and other products to reconsider their marketing strategies. Which of the following does this trend illustrate?

Accepted Answer

A)  Economic and technological environments. 
B)  Cultural and social environment. 
C)  Existing business situation. 
D)  Political and legal environments. 
E)  Resources and objectives of the firm.

Question 18

A marketing analyst for a chicken processor reports that a rising percentage of people are eating chicken because it has less fat than beef. Clearly, this firm's opportunities may improve with this change in the

Accepted Answer

A)  technological environment. 
B)  cultural and social environment. 
C)  economic environment. 
D)  political and legal environment. 
E)  competitive environment.

Question 19

Which of the following observations is NOT TRUE of monopolistic competition?

Accepted Answer

A)  A number of different firms offer marketing mixes that at least some customers see as different. 
B)  Marketing managers try to differentiate very similar products by relying on other elements of the marketing mix. 
C)  Each competitor tries to get a monopoly in its own target market. 
D)  Most marketing managers in developed economies do not face monopolistic competition. 
E)  Competition exists because some customers see various alternatives as substitutes.

Question 20

Most changes in the cultural and social environment come slowly.

Accepted Answer

A) True 
 B)False

Exam 3: Evaluating Opportunities in the Changing Marketing Environment

Competitor analysis is an organized approach for evaluating the strengths and weaknesses of current or potential competitors' marketing strategies.

A strategic business unit (SBU) within a larger firm is usually treated as a separate profit center.

When a local bank in Kansas City makes loans to its small business customers, it charges them an interest rate for borrowing money. Interest rates are part of the ____________ environment.

A large producer with economies of scale always has a competitive advantage over smaller firms.

If Climbing High Ladder Company produced ladders that were unstable and caused many injuries, the ___ has the power to force the company to recall its product.

Portfolio management:

Product warranties are regulated by the Magnuson-Moss Act.

In multiproduct firms, the emphasis in portfolio management is usually on the long run rather than the short run.

Nationalism may affect marketing strategy planning by determining to whom and how much a firm may sell.

Consumer emphasis on fitness has created opportunities for firms like Nike, Nautilus and Schwinn, and illustrates the impact of the changing:

The cultural and social environment affects how and why people live and behave as they do.

Most industrial products tend to be near the "insensitive" end of the continuum of environmental sensitivity.

A marketing manager in a large corporation wrote the company's president a memo in which she said: "The performance of our SBU has improved." An "SBU" is a:

Typically, firms need a hierarchy of objectives. Which of the following best represents a correct hierarchy of a firm's objectives?

Technology provides new opportunities and new challenges for marketers.

Competitive barriers in the Japanese market for disposable diapers impacting P&G included all of the following except:

The recent interest in physical fitness has forced producers of food, clothing, and other products to reconsider their marketing strategies. Which of the following does this trend illustrate?

A marketing analyst for a chicken processor reports that a rising percentage of people are eating chicken because it has less fat than beef. Clearly, this firm's opportunities may improve with this change in the

Which of the following observations is NOT TRUE of monopolistic competition?

Most changes in the cultural and social environment come slowly.