Chapter 2 & 3

HandyBrands Inc., a consumer goods company, engages in the design, manufacture, sourcing, and sale of apparel essentials in the United States and abroad. They have a very good etailing portal. Online shopping constitutes 40 percent of their sales. Recently, they have faced complaints by customers that orders are not getting processed. The reason was the existence of a website with similar content and an identical domain name. HandyBrands Inc. should take the help of the _____. Electronic Signature Act Anticybersquatting Consumer Protection Act Identity Theft and Assumption Deterrence Act Credit Card Accountability, Responsibility and Disclosure Act

Anticybersquatting Consumer Protection Act

Which of the following best represents a mission statement? U.S. Army: Be all that you can be Bass Pro Shop: to be the leading merchant of outdoor recreational products, inspiring people to love, enjoy, and conserve the great outdoors Kellogg's: Breakfast cereals at a price everyone can afford Wal-Mart: Stores big enough to make shopping interesting for every family member

Bass Pro Shop

The rule of three states that the three leading firms in an industry will have ______ percent of the market.

Between 70-90

Electric utilities often give advice on how consumers can use less electricity during the summer months and save money on their electric bills. This is an example of________.

Demarketing

The business cycle is comprised of three phases: prosperity, depression and recovery.

FALSE

T/F: During the recession stage of the business cycle, consumers stick with the brands they know, often ignoring the basic, functional products that carry low price tags.

False

It is believed that marketers need to reevaluate their strategies and concentrate on their most promising products during ________.

Recession

If Chevrolet was planning to introduce a sports car powered by a hydrogen-oxygen fuel cell when the price of gasoline in the United States reached $4 per gallon, this would best be described as a(n) ____________ plan.

Strategic

Best Buy wanted to open a new store in Rogers, Arkansas, but instead decided to renovate a closed Kmart. This decision was the result of _______ planning.

Tactical

The five dimensions of the marketing environment are:

competitive, political-legal, economic, technological, and social-cultural factors.

Which of the following statements is true regarding monopolies? It is enjoyed by few organizations as sole suppliers of a good or service. It is common in the telecommunications industry. It cannot be achieved temporarily, even through the use of patents and similar legal devices. It is the most common type of competition in the U.S. market.

It is enjoyed by few organizations as sole suppliers of a good or service.

In which of the following industries are you most likely to encounter time-based competition?

Technology

All of the following are company objectives EXCEPT: Increase sales by 10 percent per year Reduce product errors to less than 1 percent To be regarded as the market leader of the worldwide hotel industry To achieve a 25 percent market share in less than three years

To be regarded as the market leader of the worldwide hotel industry

A target market is a group of customers toward whom a firm directs its marketing efforts.

True

Each element of the marketing mix—product, price, distribution, and promotion—is a subset of the overall marketing strategy.

True

T/F: The FTC and U.S. Department of Justice can stop mergers if they believe the proposed acquisition will reduce competition by making it harder for new companies to enter the field.

True

One of General Electric's business units produces a variety of light bulbs and generates healthy revenue. The revenues of this business unit are used to finance the growth of other business units with higher growth potentials. How would this unit be classified on the BCG market share/market growth matrix?

cash cow

During which phase in the business cycle do marketers consider lowering prices and increasing promotions that include special offers to stimulate demand?

recession

Jose is part of a team that is analyzing current demographic trends. The team will make a recommendation concerning the groups of consumers toward whom the firm should direct its new marketing effort. Jose's team is involved in which of the following elements of the firm's marketing strategy?

target market

Last summer, the Thomas family had to decide whether to buy a new car, go to Disney World, or remodel their basement. They chose the vacation. This illustrates:

that competition can be defined in terms of dissimilar products vying for a limited supply of discretionary buying power.