Chapter 3: The Marketing Environment

True

Marketers can influence the political process through political action committees that solicit donations from individuals and then contribute those funds to candidates running for political office.

True

A person can have high income and little wealth

False

The major source of cultural values is the family.

Wealth

The savings in your savings account would fall under which of the following?

Environmental Scanning

the process of collecting information about forces in the marketing environment

discretionary income

Income that is available for spending and saving after an individual has purchase the basic necessities of food, clothing, and shelter is know as

Political

Lobbying involves which type of force in the marketing environment?

False

The Foreign Corrupt Practices Act in the United States is a bribery law that is more encompassing than the U.K. Bribery Act.

Dynamics

The ________ of technology involves the constant change that challenges every aspect of our society

Environmental Analysis

Charles works as a marketer at Hewlett-Packard. He has just spent the last few weeks collecting information about environmental forces that will impact computer industry. The time has come to try and make sense of this data and gather insights which he hopes will improve the company's marketing strategy in relation to competitors. Which type of activity is Charles working on?

Recession

During what period in the business cycle are firms first likely to cut their marketing budgets

self-regulation

Internet privacy has become a major issue. In fact, in Europe there are privacy laws to limit how much information websites can collect from users without their permission. The United States does not have comparable laws to protect consumer privacy on the Internet. Collecting this information is beneficial for firms because then they can tailor marketing messages that better fit its users' needs. These better marketing campaigns can provide them with a competitive advantage. Acme Corporation uses cookies and other devices to collect information. Its privacy policy explicitly informs users that it collects information. However, most people do not read through the policy. Lately, some consumers have complained because they are worried that their information could be compromised. They question the security of the site. Acme wants to restore confidence and prove that it has controls in place. Acme wants to hire a trusted third-party verification site that specializes in Internet security to view its site. This third party has strong privacy criteria. If Acme meets these criteria, they can display a special seal on its website. This seal will demonstrate to users that Acme's website meets high standards in Internet security. Acme thus will reassure consumers that their information is safe. What type of activity is Acme engaging in?

Technological

Internet privacy has become a major issue. In fact, in Europe there are privacy laws to limit how much information websites can collect from users without their permission. The United States does not have comparable laws to protect consumer privacy on the Internet. Collecting this information is beneficial for firms because then they can tailor marketing messages that better fit its users' needs. These better marketing campaigns can provide them with a competitive advantage. Acme Corporation uses cookies and other devices to collect information. Its privacy policy explicitly informs users that it collects information. However, most people do not read through the policy. Lately, some consumers have complained because they are worried that their information could be compromised. They question the security of the site. Acme wants to restore confidence and prove that it has controls in place. What type of environmental force does this issue involve?

oligopoly; do the same

Louis is a student at Texas A&M who just secured a summer internship working for the marketing department of Southwest Airlines. He is assisting Marlene, one of the marketing managers, with a competitive assessment of the U.S. market. Marlene wants him to think outside of the box when assessing the competition. She tells him to think beyond direct competitors to any competitors that might be able to offer similar services as Southwest. Because Southwest Airlines operates in a(n) _____________, if American Airlines lowers prices, Southwest will likely _______________.

Delta Airlines

Louis is a student at Texas A&M who just secured a summer internship working for the marketing department of Southwest Airlines. He is assisting Marlene, one of the marketing managers, with a competitive assessment of the U.S. market. Marlene wants him to think outside of the box when assessing the competition. She tells him to think beyond direct competitors to any competitors that might be able to offer similar services as Southwest. Which of the following represents a brand competitor to Southwest Airlines?

Greyhound Bus System

Louis is a student at Texas A&M who just secured a summer internship working for the marketing department of Southwest Airlines. He is assisting Marlene, one of the marketing managers, with a competitive assessment of the U.S. market. Marlene wants him to think outside of the box when assessing the competition. She tells him to think beyond direct competitors to any competitors that might be able to offer similar services as Southwest. Which of the following represents a generic competitor to Southwest Airlines?

proactive approach

Many marketing managers attempt to influence and shape environmental forces. This is known as the

Cultural Values

Soda companies are worried because sales have fallen flat. People today are more concerned about their sugar intake and want to be healthier. This reflects a change in

It ruled that the government is not authorized to ban corporate spending in candidate elections

What is the significance of the 2010 Supreme Court decision Citizens United v. Federal Election Commission?

Federal Trade Commission (FTC)

Which Agency has the most influence over marketing activities?

Nutritional Labeling and Education Act (NLEA)

Which of the following is a consumer protection law?

Table Salt

Which of the following product most closely resembles pure competition?

Fertility rates are at their lowest

Which of the following statements is true about how our U.S. demographics are changing.?

Consumerism

involves organized efforts by individual, groups and organizations to protect consumers' rights

Technology Assessment

is a procedure with which managers try to foresee the effects of new products and processes on their firm's operations, on other business organizations, and on society in general