ch 3

in general electric's (GE) strategic planning grid, managers make judgements about a firm's _____ and the industry's _____

- business strengths - attractiveness

how have changes in the cultural and social environment affected businesses in the united states?

- changing gender roles require new advertisements directed at male grocery shoppers - increased workforce participation by women has increased demand for childcare services

which of the following examples of how the internet has changed retailing for both businesses and customers?

- customers shop from home and have merchandise delivered to their door - businesses monitor supply and demand in real time and adjust prices accordingly - customers see targeted advertisements related to their interests

a mission statement should do which of the following

- focus on a few key goals - supply guidelines for managers

which of the following are recent trends in the cultural and social environment in the united states

- household incomes have generally increased - a majority of women work outside of the home - men are taking on a greater share of household duties

which of the following are ways in which technology affects marketing?

- it creates opportunities for new products - it creates new ways of doing things

which of the following are basic market situations a company might face?

- monopoly - oligopoly - monopolistic competition - pure competition

which of the following are considered elements of the economic environment

- national income -inflation - economic growths

which of the following company resources can be used as a competitive advantage (select all that apply)?

- producing capability and flexibility - financial strength - marketing strengths

which of the following are examples of marketing strengths that might be enjoyed by the coca cola company?

- recognizable branding - good relationships with retailers - experiences sales force

NAFTA has accomplished which of the following?

- removed some economic barriers to trade - established a forum for resolving trade disputes - removed some political barriers to trade

members of the european union (EU) benefit from which of the following?

- shared currency - fewer conflicting laws - reduced taxes

under english and US law, a seller is required to do which of the following?

- stand behind the firm's product - uphold contracts - tell the truth

which of the following are examples of nationalism?

- the "buy american" clause in US government contracts - chinese resistance to foreign firms

which of the following statements about missions statements are true?

- they should be revised as the market environment changes - any changes to a mission statement should be significant

which of the following factors are part of the competitive environment for a fast food chain

- types of restaurant in the market - the number of restaurants in the market

which of the following activities are part of the basic approach to competitor analysis?

- understand how your marketing mix compares to your competitors' offering and strategy - identify existing and potential competitors - evaluate the strengths and weaknesses of your target market and marketing mix

which of the following regions in the united states are currently experiencing the highest rates of population growth?

- west - southeast

which of the following factors do managers consider when evaluating the business strengths dimension of a strategic planning grid?

- whether the firm's employees are capable of carrying out the product-market plan - whether the plan is in alignment with the firm's image and financial objectives - whether the firm's size, costs, and capabilities will allow it to capture a profitable share of the market

which of the following are basic components of the objective-setting process?

-deciding what the firm wants to accomplish going forward - understand how current objectives relate to the external environment - evaluating the whole business and its resources

a firm's objectives should be

-realistic -achievable

generation x is ____ than the baby boom generation

-smaller -better educated

when the cinemark movie theater chain enters a promotional deal with starbucks, it is trying to ____ other movie theaters

differentiate itself

which of the following types of market environment includes customers, the company, and competitors?

direct

macro-economic factors that influence consumer spending , including rates of inflation and economic growth, are part of the ____ environment

economic

the collapse of the US housing market in 2008 was an example of a rapid change in the

economic environment

increased use of cell phones in the developing world contributed to a significant increase in market

efficiency

many firms collect information on their customers from their websites. the firm may then sell this information to other marketers. this can create a(n) _____ dilemma

ethical

true or false: a good mission statement should provide a detailed road map for the future instead of focusing on a small number of objectives

false

true or false: marketing managers find breakthrough opportunities or competitive advantage by using their strengths to take on competitors with similar strengths

false

thinking about johnny's coffee shop, match the examples with the appropriate type of source

financial strength - johnny's has a line of credit at a local bank flexibility - production equipment allows easy brewing of many different kinds of coffee marketing strength - johnny's coffee shop is well known for its variety of fresh roasted coffees

a small office furniture manufacturer, modern office, has the ability to quickly change its production procedures to respond to changing styles in the market. this _____ advantage helps modern office compete with larger firms in the industry

flexibility

the external market environment includes ___ major areas

four

the people born from 1978 to 1994 who are sometimes called millennials are referred to as

generation y

the total value of all of the goods and services produces within the country in a given year is known as

gross domestic product

which of the following measures the total market value of all goods and services provided in a country's economy in a year excluding income earned by foreigners?

gross national income

for most firms, which of the following demographic variables is most important n determining whether there is a viable international market opportunity?

income

during periods of inflation, interest rates typically

increase

the _____ dimension of a strategic planning grid helps managers determine whether a product-market plan is a good idea

industry attractiveness

when engaging in competitor analysis, marketing managers should seek as much ____ as possible

information

a(n) _______ is the charge for borrowing money

interest rate

the ___ is an example of technological advancement that created new business opportunities, including facebook, youtube, and sky[e

internet

which of the following is true about the legal environment?

laws vary between countries

in the united states, businesses that try to _____ competition are though to act against the public interest

limit

which of the following are examples of competitive rivals for facebook?

linkedIn, twitter, instagram

in some countries, large percentages of people cannot read or write. this lack of ____ in a target market affects how firms choose to do promotion when they develop a marketing strategy

literacy

in pure competition, customers see the different available products as close substitutes. many marketing managers compete by

lowering prices and sacrificing profits

firms engaging in the marketing planning process should understand the ____ and how it is shifting

market environment

which of the following documents describes a firm's basic purpose?

mission statement

in _______ competition, several firms offer similar, but not identical, products that some customers consider close substitutes. in this situation, marketing managers try to differentiate their offerings by adjusting other aspects of the marketing mix

monopolistic

which of the following is the least common market situation?

monopoly

which of the following kind of competitive market situation describes one organization having total control over a product-market?

monopoly

an important requirement of the marketing strategy planning process is

narrowing down the list of opportunities to those likely to succeed

protecting the interest of one's country before everything else, also known as ____, can strongly affect marketing efforts for multinational firms

nationalism

NAFTA stands for _____ agreement

north american free trade

allstate insurance promises to deliver high levels of customer service. this is a key ____ that provides guidance for the marketing manager.

objective

microsoft would like to be a leader in the software market for smartphones. this is a key ___ that provides guidance for microsoft's marketing manager.

objective

marketing managers should rely on company ____ to help evaluate opportunities

objectives

people of what age range are considered senior citizens in the united states

over 65

a ______ gives the owner exclusive rights to develop a product, process, or material for a period 20 years

patent

regional economic groupings such as the north american free trade agreement are likely to promote similar ____ environments among member countries

political

when the way existing laws are enforced changes, it is often due to a change in the ____ environment

political

when the way existing laws are enforced changes, it is often due to a change in the _____ environment

political

screening criteria that clarify a firm's marketing objectives are known as _____ criteria, while those that establish the types of opportunities the firm should or shouldn't pursue given its resources are known as ____ criteria

quantitative qualitative

marketing strategy may need adjusting because the economic environment can change ______

rapidly

using the strategic planning grid helps a manager organize information about the company's marketing environments along with information about its strategy and translate it into relevant ____ criteria

screening

match the different types of opportunities across the different generations of consumers

senior citizens - tax advice on estate planning baby boomers - financial advice on retirement investments generation x - career advice for middle managers generation y -real estate advice for first time home owners

the johnson family restaurant, which specializes in cajun cooking, wants to open a restaurant in another state. according to the continuum of environmental sensitivity, this type of product is considered environmentally

sensitive

a _________ is an organizational unit (within a larger company) that focuses on some product-markets and is treated as a separate profit center

strategic business unit

within a larger company, an organizational unit that focuses on some product-markets and is treated as a separate profit center is called a(n)

strategic business unit

the concept of ____ suggests that firms should not sacrifice the needs of the future generations simply to meet the firm's immediate objectives

sustainability

the goal of most marketing managers is to establish a ________, in which customers view their offerings as superior and competitors cannot easily duplicate their approach

sustainable competitive advantage

the use of scientific advancements to help convert resources into goods and services is also known as

technology

from a production standpoint, which of the following is true in the case of a smaller firm competing with a large firm?

the smaller firm is at a disadvantage on cost but has the advantage of flexibility

setting company objectives is ultimately the responsibility of

top management

true or false: it is more difficult to evaluate opportunities in international markets due to the wide range of environmental variables

true

since population growth ____ from country to country, marketing managers pay increased attention to fast-growing developing countries

varies dramatically

the various ways in which people live, including their motivations and behaviors are part of the _____ environment

cultural and social

which of the following is most crucial for entering an attractive market?

access to capital (financial strength)

people born between 1946 and 1964 are called

baby boomers

multiproduct firms have to develop strategic plans for very different businesses and they have to ____ plans and resources so the whole company reaches its objectives

balance

a major difference between the economic environment and the cultural and social environment is that the economic environment

changes rapidly

managers should set marketing objectives within the framework of larger

company objectives

when marketing managers analyze similar businesses and their strategies, they are considering the ___ environment

competitive

______ are the conditions that may make it difficult, or impossible, for a firm to compete in a market

competitive barriers

the conditions that may make it difficult or even impossible, for a firm to compete n a market are called:

competitive barriers

in competitive analysis, marketing managers attempt to identify those firms whose products and marketing mix are the most similar, also known as

competitive rivals

in order to gain a competitive advantage, marketing managers often consider the strengths and weaknesses of other firms in their industry, a process known as

competitor analysis

a ____ is a table that allows a firm to compare its strengths and weaknesses against those of its competitive rivals and identify opportunities for differentiation

competitor matrix

the first step in competitor analysis is to identify potential

competitors

the pure food and drug act was the first ____ protection law in the united states

consumer

which of the following groups is responsible for establishing and enforcing safety standards in the united states?

consumer product safety commission