Marketing Pd 7 Review 3

14) A first step in evaluating marketing opportunities is to: 14) ______ A) consider the objectives and resources of the firm. B) estimate market and sales potentials. C) decide which markets the firm wishes to enter. D) find out if potential competitors are larger. E) hire a "futurist" as a marketing consultant.

A

2) In the political environment, an emphasis on a single country's interests before everything else is called: 2) _______ A) Nationalism. B) Regionalism. C) Extremism. D) Socialism. E) Elitism.

A

20) The North American Free Trade Agreement (NAFTA): 20) ______ A) Has reshaped the rules of trade among the United States, Canada, and Mexico. B) Provides a plan to reshape the rules of trade among Germany, the United States, and Colombia. C) Makes it more difficult to resolve trade disputes among the countries participating in NAFTA. D) Eliminates the need for companies to adjust strategies.

A

23) Gross domestic product (GDP) is the: 23) ______ A) total market value of goods and services provided in an economy in a year by both residents and nonresidents of that country. B) total market value of goods (but not services) consumed in an economy in a year. C) total market value of goods (but not services) produced in an economy in a year. D) total cost of producing all goods and services sold in a year. E) total market value of goods and services consumed in a year.

A

28) The attitudes and behavior patterns of people are part of the 28) ______ A) social and cultural environment. B) firm's resources and objectives. C) competitive environment. D) economic and technological environment. E) political environment.

A

29) An emphasis on a single country's interests before everything else is known as ________. 29) ______ A) nationalism B) socialism C) entrepreneurship D) democracy E) capitalism

A

33) According to projections, the population of ________ is likely to grow by 9 percent between 2013 and 2025. 33) ______ A) United States B) Japan C) Singapore D) China E) Russia

A

36) Generation Z refers to: 36) ______ A) those born since 1995. B) those born in the generation immediately following the baby boom. C) those born between 1946 and 1964. D) those born between 1965 and 1977.

A

39) Which of the following types of products is LEAST sensitive to environmental changes, according to the "continuum of environmental sensitivity" 39) ______ A) Industrial products. B) Fad products. C) Commodity-type consumer products. D) Consumer products linked to cultural variables. E) "Me-too" products.

A

41) In the short run, a marketing manager usually cannot control: 41) ______ A) Any of these environments are uncontrollable in the short run. B) the cultural environment. C) the competitive environment. D) the legal environment. E) the economic environment.

A

42) Despite the Antimerger Act, there has been some leniency in allowing mergers between firms that have been competitors. When considering a merger, companies should take this aspect of the _____________ environments into consideration. 42) ______ A) legal and political B) social and cultural C) political and economic D) technological and legal E) cultural and economic

A

45) A (n) ________ is a marketing mix that customers see as better than a competitor's mix and cannot be quickly or easily copied. 45) ______ A) sustainable competitive advantage B) competitor analysis plan C) competitor matrix D) objective-centered approach E) resource combination

A

57) A ________ is an organized table that compares the strengths and weaknesses of a company with those of its competitive rivals. 57) ______ A) competitor matrix B) positioning graph C) competitor analysis D) competitive advantage E) insight table

A

59) Gross domestic product (GDP) is the: 59) ______ A) total market value of goods and services provided in an economy in a year by both residents and nonresidents of that country. B) total market value of goods and services consumed in a year. C) total market value of goods (but not services) produced in an economy in a year. D) manufacturers' selling price of goods (but not services) produced in a year. E) None of these definitions of GDP is correct.

A

61) A change in the ________ environment can affect consumer purchases of homes, cars, and other items usually bought on credit. 61) ______ A) economic B) legal C) political D) technological E) social or cultural

A

63) Consumer emphasis on fitness has created opportunities for firms like Nike, Nautilus and Schwinn, and illustrates the impact of the changing: 63) ______ A) cultural and social environment. B) economic environment. C) political and legal environment. D) competitive environment. E) technological environment.

A

67) The greatest growth in the world's population over the next several years will come from: 67) ______ A) Africa. B) Eastern Europe. C) Australia. D) Western Europe. E) Russia and nations of the former Soviet bloc.

A

73) The environment that affects the number and types of competitors a marketing manager must face and how they might behave is called the ________ environment. 73) ______ A) competitive B) cultural C) economic D) political E) social

A

76) When using screening criteria to evaluate opportunities: 76) ______ A) Marketers must try to match opportunities to the firm's resources and objectives. B) The firm's weaknesses should be ignored. C) Opportunities that are not expected to be profitable after one year of implementation should always be dropped. D) Quantitative but not qualitative criteria should be considered. E) All of these are correct.

A

8) A widely used measure of income in most countries is: 8) _______ A) gross national income. B) disposable personal product. C) total consumption expenditures. D) socio-economic product. E) population times GNI.

A

10) The scientific way in which an economy's resources are converted to output is part of the ________ environment. 10) ______ A) economic B) technological C) political D) competitive E) social

B

12) Which of the following statements about demographic changes in the United States is not true 12) ______ A) The number of kids age 0-9 will grow from about 40 million to about 45 million from 2005 to 2025. B) Demographic changes like population groupings are difficult to anticipate. C) In 2005, the number of kids 0-9 was about the same as the number of those in their 20s. D) Senior citizens will grow in number rapidly from 2005 to 2025. E) In 2025 there will be fewer people over age 80 than under age 10.

B

17) The current U.S. population is largest in which of the following states 17) ______ A) Florida. B) California. C) Texas. D) New York. E) Illinois.

B

24) Increased demand for new homes due to low interest rates is an example of the impact of the ________ environment. 24) ______ A) cultural B) economic C) social D) technological E) competitive

B

25) A firm that is unable to obtain financing to manufacture new products is likely encountering negative pressures from: 25) ______ A) the technological environment. B) the economic environment. C) the competitive environment. D) the political/legal environment. E) the cultural/social environment.

B

47) Which of the following is a quantitative screening criterion for evaluating opportunities 47) ______ A) Kinds of business the firm wants to exclude B) Return on investment (ROI) target for the firm C) Resources the firm should build on D) Kinds of business the firm wants to be in E) Weaknesses the firm should avoid

B

56) "Nationalism" is an issue in the ________ environment. 56) ______ A) technological B) political C) cultural D) economic E) competitive

B

71) Which of the following is true of the economic environment71) ______ A) It refers to micro-economic factors that do not affect business spending. B) It can change very rapidly. C) It is not affected by the way all of the parts of the macro-marketing system interact. D) It never requires marketing managers to make immediate changes in strategy. E) It has no relationship to the technological environment.

B

81) Which of the following newspaper headlines is MOST LIKELY to be a result of changes in the cultural and social environment81) ______ A) "General Motors Offers Original Equipment Car Stereos with Satellite Radio Service." B) "McDonald's Changes Its Menu to Cater to Low-Carb Dieters." C) "Gasoline Prices Increase Sharply." D) "New Projection TVs Are Thinner, Lighter than Traditional TVs." E) "Treasury Department Introduces New Currency to Combat Counterfeiters."

B

13) One way marketers can screen for opportunities that are good for society is to screen based on the criteria of: 13) ______ A) business strengths. B) profitability. C) sustainability. D) growth. E) return on investment.

C

18) Evaluating opportunities in international markets is uniquely challenging for managers because: 18) ______ A) international consumers rarely share the same needs. B) other nations do not welcome foreign businesses. C) international variables are confusing and unfamiliar to outsiders. D) marketing in other countries is entirely different from marketing in a domestic setting. E) there are so many opportunities from which to choose.

C

22) The _____ environment sets the basic rules for how a business can operate in society. 22) ______ A) cultural B) economic C) legal D) technical E) social

C

26) The competitive environment that most marketing managers experience in developed economies is: 26) ______ A) monopoly. B) oligopoly. C) monopolistic competition. D) regulated competition. E) pure competition.

C

37) A widely used measure of income in most countries is: 37) ______ A) socio-economic product. B) population times GDP. C) gross domestic product. D) disposable personal product. E) total consumption expenditures.

C

4) The Consumer Product Safety Commission is responsible for: 4) _______ A) developing and enforcing environmental protection standards. B) preventing the distribution and sale of adulterated or misbranded foods, drugs, and cosmetics. C) developing and enforcing safety standards for bicycles. D) None of these is correct.

C

44) Which of the following statements about company objectives is true44) ______ A) Company objectives should be set by top management with no input from marketing managers. B) Company objectives should be stated in vague terms to provide flexibility to lower-level managers. C) Company objectives should be compatible with each other. D) A good mission statement can substitute for more specific company objectives. E) All of these statements about company objectives are true.

C

48) Which of the following is an element of the direct market environment 48) ______ A) Demographic trends B) Cultural environment C) Competitors D) Economic environment E) Technological environment

C

51) Which of the following is NOT primarily an example of the influence of technology on the external market environment51) ______ A) A manufacturer of frozen food is finding that consumers prefer containers that can go from the freezer direct to a microwave oven. B) A camera producer finds a way to enable a camera to store digital pictures-without film. C) The government passes a law that prohibits use of cell phones while driving a vehicle. D) Machines are developed to assemble defect-free electronic components. E) Robots on a production line make it possible to lower cost.

C

52) The economies of the world are connected and changes in one economy quickly affect others. One key reason for this is that: 52) ______ A) The amount of international trade is difficult to forecast. B) The amount of international trade is unstable. C) The amount of international trade is increasing. D) The amount of international trade is stable. E) The amount of international trade is decreasing.

C

54) Which of the following statements about world population trends is true 54) ______ A) The trend toward urbanization has made companies less interested in international markets. B) The concentration of people in major cities often complicates Place and Promotion decisions. C) People are moving from rural areas into urban areas. D) The extent to which a country's population is clustered around urban areas does not vary much from country to country. E) In general, countries that have higher stages of development experience faster rates of growth than less-developed countries.

C

58) Rising costs and inflation are part of the uncontrollable ________ environment. 58) ______ A) legal B) competitive C) economic D) social E) technological

C

68) Which of the following demonstrates how the technological environment is changing the way marketers promote products68) ______ A) Marketers make routine claims that products are eco-friendly. B) New laws regulate consumer privacy. C) Search engines match consumer searches with relevant banner ads. D) Marketing aimed at youth is increasingly regulated by governments. E) Manufacturers partner with local retailers to buy ads that feature both firms.

C

69) 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 illustrate69) ______ A) Resources and objectives of the firm. B) Economic and technological environments. C) Cultural and social environment. D) Political and legal environment. E) Existing business situation.

C

72) The languages people speak, the type of education they have, and their religious beliefs are examples of the ________ environment. 72) ______ A) political B) technological C) cultural and social D) economic E) legal

C

75) The total market value of goods and services provided in a country's economy per year by both residents and nonresidents of that country is ________. 75) ______ A) gross domestic income B) gross disposable income C) gross domestic product D) gross national product E) gross national income

C

1) Of the following, the last objectives that a firm should specify are its 1) _______ A) marketing objectives. B) promotion objectives. C) company objectives. D) advertising objectives. E) price objectives.

D

11) A carpet cleaning firm runs a newspaper ad stating: "Special this month only! Three rooms of carpet cleaned for $39.95!" In each of the next ten months, the firm runs the same ad. A consumer advocacy group files suit against the carpet cleaning firm, contending that the ad is deceptive. The suit charges that the ad makes it seem as though the $39.95 price is a special price that will increase at the end of the month, when in reality, the price never changes. The U.S. federal law governing this type of situation is the ________. 11) ______ A) Sherman Act B) Clayton Act. C) Magnuson-Moss Act D) Wheeler-Lea Amendment E) Robinson-Patman Act

D

15) General Electric's "strategic planning grid" is an approach for: 15) ______ A) evaluating possible marketing objectives. B) developing new products. C) selecting target markets. D) evaluating existing and possible plans. E) developing marketing mixes.

D

16) Which of the following is NOT an example of how the technological environment might affect marketing management 16) ______ A) A firm develops a substitute for saturated fat in manufactured foods. B) A manufacturer uses a computer to send orders directly to a supplier's computer. C) A retailer installs a computerized checkout scanner to replace a manual cash register system. D) All of these are examples of how the technological environment might affect marketing management.

D

19) A "Buy American" campaign is an example of ________. 19) ______ A) transnationalism B) consumerism C) environmentalism D) nationalism E) federalism

D

21) Which of the following is the likely impact of the "unification of Europe"21) ______ A) The unification complicated inter-European commerce and trade directly. B) Consumer prices rose and job opportunities became limited. C) The need to adjust strategies to reach submarkets of European consumers disappeared. D) Many of the taxes and rules that have limited trade among member countries of the European Union were eliminated. E) Firms operating in Europe had harder access to large markets.

D

27) Gross national income (GNI) is the: 27) ______ A) total market value of goods and services consumed in a year. B) total market value of goods (but not services) produced in an economy in a year. C) manufacturers' selling price of goods (but not services) produced in a year. D) total market value of goods and services provided in an economy in a year by residents of that country. E) None of these definitions of GNI is correct.

D

31) Product-market screening criteria should be: 31) ______ A) realistic and achievable. B) quantitative. C) qualitative. D) all of these are correct.

D

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

D

38) Regarding the competitive environment: 38) ______ A) Competitor analysis should begin with an identification of competitors from the viewpoint of the manager, not the consumer. B) Monopoly situations are more common than are situations characterized by monopolistic competition. C) It is easy to find environments that are "competitor-free." D) "Competitive rivals" are a firm's closest competitors.

D

40) The move of the "Baby Boomers" into the 45-64 age group: 40) ______ A) created new opportunities in financial services. B) increased the average age of the population. C) contributed to increased interest in health and fitness products. D) All of these are correct

D

43) Regarding population growth in the world, 43) ______ A) Between 2013 and 2025, population growth will be about 9 percent in the United States and 3 percent in China. B) The population of Ethiopia and Nigeria will likely increase by 35 percent or more between 2013 and 2025. C) The world's population growth varies dramatically from country to country. D) All of these are true regarding world population growth.

D

49) A firm may use all of the following methods for beating the competition except: 49) ______ A) apply for patents. B) utilize advanced technology. C) develop a sustainable competitive advantage. D) seek a monopoly. E) conduct a competitor analysis.

D

55) American legislative and economic thinking assumes that: 55) ______ A) the free enterprise system is dying. B) government officials are needed to run the economy. C) laws are needed to prevent firms from competing with similar ("me-too") products. D) competition among many small firms helps the economy. E) firms must have their prices approved by the Federal Trade Commission.

D

6) Between 2010 and 2020, the highest growth rate in population in the United States occurred in: 6) _______ A) the northwestern states. B) the midwestern states. C) the northeastern states. D) the western states.

D

62) Which of the following is least likely a result of shifts in the cultural and social environment62) ______ A) BMW builds its new plant in South Carolina because of the willingness of "Sun Belt" workers to put in a "full day's work." B) Domino's Pizza finds that demand for pizza delivered at home has expanded as more consumers are willing to pay for more convenience. C) Sony recruits more women graduates for sales management positions. D) A toy manufacturer recalls a playpen with a defective latch and Toys 'R' Us stores remove them from the shelf. E) Haagen-Dazs introduces a nonfat yogurt that is also "low cal."

D

66) The largest producer of "fuzz-busters" (radar detectors) sees that many states are increasing the penalty for using them. Clearly, this firm's marketing strategy may have to adapt to these changes in the 66) ______ A) cultural and social environments. B) economic and technological environments. C) competitive environment. D) political and legal environments. E) resources and objectives of the firm.

D

7) The objectives that are expected to shape the direction and operation of the whole business are known as ________ objectives. 7) _______ A) personal selling B) collective C) price D) company E) R&D

D

74) A useful tool for organizing the competitor analysis is ________. 74) ______ A) a competitor grid B) the oligopoly chart C) rivals chart D) a competitor matrix E) the table of competitive rivals

D

78) The firms that are considered to be the organization's closest challengers are called ________ rivals. 78) ______ A) indirect B) aggressive C) formal D) competitive E) passive

D

79) A useful tool for organizing the competitor analysis is: 79) ______ A) rivals chart. B) the oligopoly chart. C) the competitive summary. D) a competitor matrix. E) the table of competitive rivals.

D

80) All of the following are part of the direct market environment EXCEPT: 80) ______ A) the company itself. B) customers. C) competitors. D) the technological environment.

D

82) When setting objectives for the whole firm, TOP MANAGEMENT should: 82) ______ A) set objectives that focus on the highest possible immediate profit potential. B) stick to general objectives-in order to maintain flexibility. C) set objectives beyond what can actually be achieved-so everyone will work harder. D) involve the marketing manager in the objective setting process. E) all of these are useful when setting objectives.

D

3) GE's Planning Grid approach to evaluating proposed and existing plans and businesses: 3) _______ A) reflects the corporation's objectives. B) is a subjective, multiple-factor approach. C) helps managers see why some ideas are supported and others are not. D) considers how profitable opportunities are likely to be. E) All of these alternatives about GE's Planning Grid are true.

E

30) Which of the following would a firm need to specify BEFORE deciding on its sales promotion objectives30) ______ A) Company objectives. B) Marketing objectives. C) Production objectives. D) Product objectives. E) All of these objectives would need to be specified beforehand.

E

34) Marketing managers should remember that there are many variables in the ____________ that affect strategy planning. 34) ______ A) political and legal environments B) economic and technological environments C) competitive environment D) cultural and social environment E) all of these environments have variables that affect strategy planning

E

35) Most product-markets head toward ________ over the long run. 35) ______ A) capitalistic competition B) monopoly C) collectivism D) monopolistic competition E) pure competition

E

46) When planning a marketing strategy, managers have control over: 46) ______ A) the political and legal environment. B) the cultural and social environment. C) the economic environment. D) consumers. E) their response to forces in the external market environment.

E

5) A firm that discriminates in price on goods of "like grade and quality" may be in violation of the ________. 5) _______ A) Wheeler-Lea Amendment B) Antimerger Act C) Magnuson-Moss Act D) Sherman Act E) Robinson-Patman Act

E

50) Product-market screening criteria should: 50) ______ A) be stated in quantitative terms. B) be achievable. C) summarize in one place what the firm wants to accomplish. D) be qualitative. E) All of these are correct.

E

53) The Wheeler-Lea Amendment specifically aims at ________. 53) ______ A) tying and exclusive dealing contracts B) product safety C) product warranties D) mergers and acquisitions E) unfair or deceptive practices

E

60) Underlying any economic environment is technology which affects: 60) ______ A) how fast consumer attitudes change. B) how quickly technological developments lead to new consumer protection laws. C) how aggressive competitors are in planning new marketing strategies. D) how competitors react to each other. E) how the economy's resources are converted to output.

E

64) When looking for attractive opportunities, a marketing manager should consider: 64) ______ A) the firm's marketing strengths. B) the firm's producing capability and flexibility. C) the firm's financial strengths. D) whether the firm has good relations with established intermediaries. E) All of these should be considered.

E

65) Gross national income (GNI) is the total ________. 65) ______ A) market value of goods (but not services) produced in an economy in a year B) market value of goods (but not services) consumed in an economy in a year C) market value of goods and services consumed in a year D) cost of producing all goods and services sold in a year E) market value of goods and services provided in an economy in a year by residents of that country

E

70) Overall company objectives should: 70) ______ A) be realistic and achievable. B) focus on returning some profit to the business. C) be compatible with one another. D) be specific. E) all of these are correct.

E

9) Regarding gross domestic product (GDP) and gross national income (GNI): 9) _______ A) Both GDP and GNI are widely used measures of national income. B) GDP income measures can give the impression that people in less-developed nations have more income than they really do. C) GDP includes foreign income earned in a country, but GNI does not. D) GDP and GNI are highest in the more developed industrial nations. E) All of these alternatives are true.

E

77) Which of the following statements about the competitive environment is FALSE 77) ______ A) Over the long run, most product-markets tend toward monopolistic competition. B) Marketing managers should choose strategies that avoid head-on competition. C) Competition-free environments are rare. D) In a competitor analysis, the firm's first step should be to identify all potential competitors. E) A firm that has a marketing mix that its target market sees as better than its competitors' has a competitive advantage.

a