Marketing Chapter 3

Numbering 49 million or​ more, this group of consumers is sometimes overlooked because it is less materialistic than other groups and prizes​ experience, not acquisition.

Generation X

The role of a​ company's marketing intermediaries is to do which of the​ following?

Help the company​ find, promote,​ sell, and distribute products

​Overall, how has the American population changed over​ time?

It has become more​ diverse, better​ educated, and more mobile.

The​ demographic, economic,​ natural, technological,​ political, and cultural forces that affect a​ company's ability to serve its customers make up which of the​ following?

Macroenvironment

Marketers keep a close eye on demographic trends and developments in their markets. They analyze​ ________.

changing age and family​ structures, geographic population​ shifts, educational​ characteristics, and population diversity

The economic environment impacts marketing decisions. The economic environment consists of two primary economic factors that affect​ __________________.

consumer purchasing power and spending patterns

The demographic environment is of major interest to marketers because​ ________.

it involves​ people, and people make up markets

Larger​ ________ that affect the entire microenvironment combine to form the macroenvironment.

societal forces

Chicago's Best Pizzeria has been operating on the north side of Chicago for over 30 years. Its target market includes​ young, urban professionals who want new​ style, organic pizzas with exotic ingredients.​ However, in recent​ years, the population in the​ pizzeria's neighborhood has been shifting and fewer​ young, urban professionals live there. The population has grown older and wants traditional​ pizza, not pizza with exotic ingredients. Which of the following identifies the​ pizzeria's BEST response to this​ situation?

target a new market with a different product.

The​ ________ environment represents the most dramatic force affecting​ today's marketing strategies.

technological

According to the​ text, __________ are perhaps the most dramatic forces affecting​ today's marketing strategies.

technological forces

The group of economic factors that affect​ consumers' purchasing power and spending patterns is called​ ________.

the economic environment

The natural environment involves​ __________________ that are needed as inputs by marketers or that are affected by marketing activities.

the physical environment and natural resources

Which of the following identifies a change in the technological environment that could affect the success of a​ business?

A company develops a new battery that lasts twice as long as its predecessor.

To be​ successful, why should companies try to adopt a proactive stance on​ marketing?

A proactive stance allows a company to influence the market in its favor.

Which of the following BEST describes a duty that would fall under the jurisdiction of the​ FDA?

Checking the quality of food that is served in school lunches

A wedding services company changes its marketing strategy to reflect the fact that more LGBT​ (lesbian/gay/bisexual/transgender) marriages are taking place. The company is offering a broader range of ceremonies that cater to this market. Which of the following environments must this wedding company​ analyze?

Cultural

​People's views of​ themselves, others,​ organizations, and nature are part of which macroenvironmental​ force?

Cultural forces

Forces in a​ company's macroenvironment that shape opportunities and pose threats to the company include​ what?

Demographic, economic,​ natural, technological,​ political/social, and cultural forces

Dylan Parker owns 27 acres on a farmstead in Iowa.​ Recently, as he was plowing a​ field, he came across a rich silver vein in the ground. Realizing his​ bounty, he decided to open a new business selling silver. Not knowing much about the marketing​ environment, he asks you what he should do. Which of the following is the BEST advice?

Dylan should focus on the business market and sell the raw silver for further processing.

Beverly's Burgers came under fire recently when allegations were made that its veggie burgers were actually made with beef. To counter the​ claims, the restaurant called in a company to test not only its veggie burgers but also the rest of its vegetarian options to prove they lacked meat. The results were displayed publicly on the​ restaurant's Facebook page. What BEST describes​ Beverly's Burgers response to the​ allegations?

Proactive

The​ Children's Online Privacy Protection Act in the United States enforces laws for what​ reason?

Prohibits online service operators from collecting personal information from children

Which of the following is an important trend in the natural environment of which marketers should be​ aware?

Shortages of raw materials

Proactive businesses often take aggressive actions to affect consumers and the forces in their marketing environments. Which of the following does NOT depict a proactive​ company?

Sophie's Soups refusing to counter false allegations of rat feces in its soups

Wonders such as robotic​ surgery, miniaturized​ electronics, and antibiotics can be attributed to which marketing​ environment?

Technological

Which of the following is NOT a problem involving the natural environment that marketers need to​ consider?

The aging U.S. population

What is the single most important demographic trend in the U.S.​ today?

The changing age structure of the population

How does the microenvironment of a company differ from its​ macroenvironment?

The microenvironment deals with the​ company, suppliers, marketing​ intermediaries, customer​ markets, competitors, and publics.

From a marketing​ standpoint, which of the following BEST describes Baby​ Boomers?

They constitute a lucrative market for financial​ services, new housing and home​ remodeling, new​ cars, travel and​ entertainment, eating​ out, and health and fitness products.

Which of the following correctly lists the actors in a​ company's microenvironment?

The​ company, suppliers, marketing​ intermediaries, customer​ markets, competitors, and publics

Tina's Tunes is a music store that has been selling CDs for 20 years. Throughout the last six​ years, sales have continuously declined and profits have almost completely disappeared. The CEO of​ Tina's Tunes believes resurgence is likely to happen soon and wants to continue business as usual. What is likely to happen to​ Tina's Tunes?

Tina's Tunes is likely to fail because it is ignoring the technological environment.

The Fair Packaging and Labeling Act in the United States enforces laws for what​ reason?

To protect consumers from fraudulent packaging and labeling

Which of the following is a reason for business​ legislation?

To protect consumers from unfair business practices

​Roper's Radical Racers is an upscale company that sells cars primarily to racecar drivers and movie producers. In the​ past, Roper's Radical Racers marketed itself to the​ fun-loving driverlong dash—the driver who wanted to​ "race with​ life." However, in the current​ economy, Roper's has changed its slogan to​ "superior speed, superior​ savings." Roper's Radical Racers is engaging in which of the​ following?

Value marketing

What advice would you give a firm about how to respond to the changing marketing​ environment?

Whenever​ possible, take a proactive approach to the environment.

Noah's Sporting Goods is having difficulty attaining the credit it needs to expand. What should the company do in order to alleviate its financial​ situation?

Work out a plan with its financial intermediaries

Many companies see the marketing environment as uncontrollable. They​ ________ that will help the company avoid the threats and take advantage of the opportunities the environment provides.

analyze environmental forces and design strategies

Major​ ________ shape marketing​ opportunities, pose​ threats, and affect the​ company's ability to engage customers and build customer relationships.

environmental forces

The technological environment changes​ rapidly, creating new markets and opportunities.​ However, some companies might miss new product and market opportunities because of three primary reasons that include​ ________, ___________,​ or, __________.

fighting or ignoring new​ technologies, inability to keep​ up, or ignoring a changing regulatory landscape

Environmental sustainability concerns have grown steadily over the past three decades. Marketers should be aware of three primary trends in the natural​ environment, which include​ ________, ________________, and​ ________________.

growing shortages of raw​ materials, increased​ pollution, and increased government intervention in natural resource management

In addition to income​ levels, marketers need to pay attention to​ ______, which has created a tiered market.

income distribution levels

Even though legislation affecting business around the world has increased steadily over the​ years, there has been​ ________.

increased emphasis on ethics and socially responsible actions

The cultural environment consists of​ ________ that affect a​ society's values,​ perceptions, preferences, and behaviors.

institutions and forces

Legislation affecting business around the world has increased steadily over the years within the political environment. The increased legislation has been enacted in three primary areas including​ ________, ______________, and​ _______________.

laws protecting companies from each​ other, laws protecting​ consumers, and laws protecting the interests of society

The​ company's ________ consists of actors close to the company that combine to form its value delivery network or that affect its ability to serve customers.

microenvironment

Marketers want to predict cultural shifts to spot new opportunities or threats. The major cultural values of a society are expressed in​ people's views of themselves and​ others, as well as in their views of​ ________, __________,​ ____________, and​ ________.

organizations, society,​ nature, and the universe

The major cultural values of a society are expressed by​ _________.

people's views of themselves and​ others, as well as their views of​ organizations, society,​ nature, and the universe

Firms that develop strategies to change the environmentlong dash—instead of assuming that strategic options are bounded by the current environmentlong dash—are being​ _______.

proactive

Other companies do not see the marketing environment as uncontrollable. They take a​ ________ stance toward the marketing environment and develop strategies to​ ________ the environment.

proactive; change

The purpose of business legislation is primarily based on​ ________.

protection

Rather than simply watching and reacting to environmental​ events, proactive firms take aggressive actions to affect the​ _______________in their marketing environment.

publics and forces

Many companies view the marketing environment as an uncontrollable element to which they must​ ________.

react and adapt

The microenvironment consists of those close to the company that combine to form its value delivery network or that affect its ability to serve customers through six key​ ways, which include​ ________, __________,​ ___________, ________,​ _________, and​ _______.

the​ company, suppliers, marketing​ intermediaries, customer​ markets, competitors, and publics

The economic environment can offer both opportunities and threats. For​ example, in the​ post-Great Recession​ era, ________ has become the focus for marketers in all industries.

value marketing

To exercise their social​ responsibility, many companies are linking themselves to what type of​ marketing?

​Cause-related