MKTG Chapter 3

Due to consumer concerns over privacy, the ____ is considering regulations that would limit the amount of consumer information that marketers can gather online

Federal Trade Commission

Which of the following regulatory agencies has the greatest influence over marketing activities?

Federal Trade Commission

Meyers' Sporting Goods, a national chain, has been doing business with Soljur Sports, a manufacturer of skateboards, for several years. Recently, it came to the attention of Meyers' financial director that the average cost per Soljur Sports skateboard had substantially increased over that of the previous year. The financial director was notified and began to look into the situation. The attorney found that Soljur Sports was selling a similar number of skateboards to a competitive chain for $10 less per skateboard. The attorney for Meyers' Sporting Goods immediately filed a complaint with the Federal Trade Commission. A regular customer of Meyers Sporting Goods feels that some of its advertisements are deceptive. He responded to an ad for a sale skateboards one hour after the store opened and found that none were left. Where should he file a complaint.

Better Business Bureau

At the beginning of each of your marketing strategy team meetings, each team member gives a presentation on the current status of a key force in your company's marketing environment. The following brief presentations were given by your team members: John's presentation focused on the competitive forces in your industry. Karen's presentation focused on the internal dynamics in your company. Brandon's presentation focused on the political events emanting from Washington D.C. Susan's presentation focused on what is driving the technology changes happening in the country. Beverly's presentation focused on the most recent economic projections issued by the Federal Reserve Bank of New York. After reviewing the presentations, you can conclude that:

Beverly spoke about the economic forces and Susan spoke about the technological forces in the marketing environment.

Which of the following types of competition are geared toward market products with similar features and benefits to the same customers at similar prices?

Brand compeititors

Which of the following is a brand competitor for Dr. Pepper?

Coca-Cola

Which category of income are marketers most interested in?

Disposable income

___________ is a ready source of buying power.

Disposable income

Which branch of study does marketing evolve from?

Economics

Which of the following involves observation; secondary sources such as business, trade, government, and general-interest publications; and marketing research?

Environmental scanning

Your company makes highly sophisticated components for military equipment. The U.S. Department of Defense is your largest customer. In recent years, you have expanded your customer base to include the militaries of all the major countries in the world. The following headlines appeared in the Sunday NYC Times newspaper recently: 4. "State Department Considers Imposing New Sanctions on Exports of Sensitive Military Technology." Which one of the following statements is true regarding these headlines?

Headline #4 should be categorized as a legal and regulatory force in the company's marketing environment

Which was NOT a key insight from the video, "Choice, Happiness, and Spaghetti Sauce" by Malcolm Gladwell?"

If you want to know what new product to introduce in the food industry, you should ask the target market what they would like to have.

The internet makes it possible for the marketer to communicate with consumers more effectively and more consistently at a lower cost than previously possible. Moreover, the Internet has made it possible for marketers to reach new markets and to target existing markets more precisely. Digital media is the foundation of the marketer's new found power via the Internet. Digital media-based marketing is different than traditional marketing in which of the following ways?

Interactivity

Which of the following is most closely related to the political forces of the marketing environment?

Legal and regulatory forces

Which of the following is NOT an example of illegal anticompetitive practices?

Mislabeling products

What type of competitive structure exists when a firm produces a product that has no close substitutes?

Monopoly

________________ considers cases in which an advertiser challenges issues raised by the National Advertising Division (NAD) about an advertisement.

National Advertising Review Board (NARB)

Which of the following types of competitive structure often exists because of the difficulty and expense of entering a market?

Oligopoly

During which of the following economic conditions does unemployment begin to decline, total disposable income increase, and consumer's willingness to buy begin to rise?

Recovery

Based on the AT&T video, which environmental force was the primary driver behind why AT&T had to develop a new advertising campaign?

Regulatory

International Office Supplies Wholesaler charges different prices to its various customers without any legal justification. This company is in violation of the:

Robinson-Patman Act

Which of the following aspects of technology relates to the fact that technology acts as a catalyst to spur even faster development?

Self-sustaining

Which of the following is the major source of cultural values?

The family

Which of the following firms would be most likely to have a monopoly for its competitive environment?

TimeWarner Cable TV

Which of the following industries is most commonly regulated by state regulatory agencies?

Utility companies

A researcher studies which magazines commuters in a subway read on their way to work and how much time they spend reading them. Because time spent reading may be difficult for respondents to estimate accurately, the researcher should probably conduct___________ to gather this information.

an observation study

The Decca Electric Corporation produces light bulbs that are used in refrigerator manufacturing. Currently, only three other companies produce bulbs used in the production of refrigerators, with Decca as the leader in market share. In this case, Decca Electric Corporation would be considered

an oligopoly

People are sometimes more willing to buy if they have the____________.

buying power

Proactive organizations often seek to influence the political forces of the environment through__________ and ______________.

campaign contributions; lobbying

Mothers Fighting Added Sugar is sending emails to companies, posting on Facebook and Instagram, lobbying government agencies, running a petition on Change.org, and boycotting companies whose activities they deem irresponsible. This best illustrates _______.

consumerism

The Classic Hotel has begun to offer entire floors of rooms in its hotels that are smoke-free, adults-only, and pet friendly. The Classic Hotel Group is responding to changes in

cultural values

Many health care companies are making adaptations to meet the needs of an aging population as the demand for medical services and products such as diabetes supplies increases. This change in marketing strategy is best explained by a change in

demographics

Millennials are usually defined as consumers are 18-25. Which is NOT a characteristic of the Millennial market segment discussed in class?

dislike new technologies

Whether fluctuating rapidly or slowly, environmental forces are always___________.

dynamic

Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in

environmental scanning

In 2009 the Coca-Cola Company introduced the "Freestyler," a new free-standing soda dispensers where consumers can chose from over 120 different types of soda and customize their drink. Freestylers would take the place of typical dispensers where there are only a few different types of soda brands available. In order to develop the new dispenser, Coca-Cola collected information on the soda-drinking habits of individuals in several different age groups, as well as information about new technologies for dispensing liquids from vending machines and the sales of its "fountain" syrup for national restaurant chains to use in their soda machines. Coca-Cola's collection of this information is an example of _____ while the assessment of its impact on the potential for the new "Freestyler" is an example of _________ ​

environmental scanning; environmental analysis

By offering both credit and financing through its GMAC division, General Motors is trying to help consumers

expand current buying power at the expense of future buying power.

Discretionary income is associates with all of the following except

food

Three primary methods of collecting information for environmental scanning are:

observation, secondary sources, and marketing research.

The forces of the marketing environment include

political, legal and regulatory, sociocultural, technological, economic, and competitive.

Precompetitive laws are those signed to

preserve competition

In the role play in your lecture content, you were asked to imagine you were city council members making a decision about whether to increase the availability of alcohol in your town by relaxing the city's liquor laws. The research that was presented to help you make your decision was:

probably biased against increasing alcohol availability

ACME Corp. managers view environmental forces as uncontrollable and thus adjust their marketing strategies to changes in the marketing environment. This approach is best described as______________.

reactive

Consumer confidence and willingness to spend begins to increase during periods of___________, and marketers must remain very flexible to make the necessary adjustments.

recovery

In the Ski Butternut video, the ski resort targeted all of the following EXCEPT:

single women age 30-45

If a certain country considered handshakes in business transactions to be taboo and preferred to use nodding, this would be an example of differences in _____ forces.

sociocultural

At ACME Corp., managers are trying to foresee the effects on new products and processes on their firm's operations, on other business organizations, and on society in general. This is best described as__________.

technology assessment

The growing demand for health-care services, recreation, tourism, retirement housing, and selected skin-care products most closely relates to___________.

the demographic characteristic of age.

Companies that compete for the same limited financial resources of the same customers are known as_________ competitors.

total budget