Chapter 3 - Analyzing the Marketing Environment

The __________ forbids the manufacture or sale of adulterated or fraudulently labeled foods and drugs. Sherman Antitrust Act Clayton Act Federal Trade Commission Act Federal Food and Drug Act

Federal Food and Drug Act

The __________ monitors and remedies unfair trade methods. Sherman Antitrust Act Federal Trade Commission Act Federal Food and Drug Act Clayton Act

Federal Trade Commission Act

________ are the 55 million people born between 1965 and 1976 in the "birth dearth" following the baby boom. Baby boomers Gen Z Gen Y Gen X

Gen X

_______ are the 75 million (or more) children of the baby boomers born between 1981 and 1997. Gen Y Baby boomers Gen Z Gen X

Gen Y

Decision Point: How Political Changes Will Affect Gerlach Now that you have selected the political environment as the one most likely to affect your business in the short term, you must determine what the effects of these changes might be on Gerlach's microenvironment. Choose the outcome you see as being most likely. Select an option from the choices below and click Submit.

Gerlach's business will be hurt by the proposed measure, because the school board will not buy textbooks. You chose that Gerlach's business would be hurt by the proposed measure. This was the best choice because the proposed curriculum is based on experiential learning, with no books used.

The ________ is perhaps the most dramatic force now shaping our world. natural environment economic environment technological environment political environment

technological environment

The marketing environment is __________. ny group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives the larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers the actors close to the company that affect its ability to serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and public

the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers

Decision Point: What Else Will You Address? You chose to explore the natural environment's changes to Gerlach's business. But the demographic and cultural environments will have effects as well. From the choices below, choose the best responses to these changes. Check the two responses you think are most appropriate, and then click Submit.

- Create and market homeschooling programs - Make products for the English language learner market to make up for the reduced overall market share You chose to create products for the English language learner market. This was one of the best choices due to the growing size of the English language learner market. You chose to create and market homeschooling programs. This was one of the best choices because this proactively addresses the cultural environment change.

Decision Point: How Will You Respond to Changes? You made a wise decision when you decided that political changes would have the most significant effect on Gerlach's business. But the economic and technological environments will have effects as well. From the choices below, choose the best responses to these changes. Check the two responses you think are most appropriate, and then click Submit.

- Try to convince the school board to spend the money on Gerlach's science program. - Emphasize Gerlach's educational technology in presentations to the school board. You chose to try to convince the school board to spend its extra money on Gerlach's science program. This was one of the best choices because it takes advantage of an economic opportunity. You chose to emphasize Gerlach's educational technology in presentations to the school board. This was one of the best choices because it proactively positions Gerlach as a technology leader.

_______ are the 74 million people born during the years following World War II and lasting until 1964. Gen X Gen Z Baby boomers Gen Y

Baby boomers

The __________ prohibits certain types of price discrimination, exclusive dealing, and tying clauses (which require a dealer to take additional products in a seller's line). Clayton Act Federal Trade Commission Act Sherman Antitrust Act Federal Food and Drug Act

Clayton Act

Mentoring Moment: Macroenvironment vs. Microenvironment A company's environment consists of both a microenvironment and a macroenvironment — forces outside of marketing that affect a marketing manager's decision making. The microenvironment includes forces close to a company, whereas the macroenvironment consists of the larger societal factors that affect the microenvironment and the company. Classify the following six environmental factors as an aspect of either the microenvironment or the macroenvironment. Drag and drop each card into the appropriate category and then click Submit.

Macroenvironment: -Bring your tech: More schools are encouraging their students to bring smartphones and tablets to class, which allows learners to find information online rather than in textbooks -GenX: GenX's offspring are beginning to enter secondary schools. This generation demands a tech-rich experience for its children -Economic downturn: As the economy slows, fewer families can afford to send their kids to private school, resulting in increased public school enrollments Microenvironment: -Media: The low ranking of the Colorado school system is getting a lot of coverage in mainstream media and social media -Finance department: Financial analysts suggest that a 10% cut in expenses is necessary next year to increase Gerlach's return on sales -Competitors: Gerlach faces increasing competition from firms that produce ebooks only That was correct. Changes in the technological environment are part of the macroenvironment and offer many opportunities for marketers. That was correct. All forms of media are part of the various publics, an element of the microenvironment, which have an interest in or impact on the firm's ability to achieve its objectives. That was correct. The finance department is part of the company, which places it in the microenvironment. That was correct. The competition is part of the microenvironment because the competition is close to the company and directly impacts whether a firm achieves its goals. That was correct. The economic environment is part of the macroenvironment because consumer buying power is a large societal force that impacts a firm's ability to achieve its goals. That was correct. Generational cohorts like GenX are part of the demographic environment, an element of the macroenvironment.

The __________ authorizes the FTC to determine rules and regulations for consumer warranties and provides consumer access to redress, such as the class action suit. Sherman Antitrust Act Clayton Act Federal Food and Drug Act Magnuson-Moss Warranty Act

Magnuson-Moss Warranty Act

After reviewing the reports of long-term changes in Gerlach's demographic environment, natural environment, and cultural environment, you must pick the element that you think Gerlach should address first. Select an option from the choices below and click Submit.

Natural environment

Decision Point: Which Short-Term Change Will You Address? After reviewing the reports of short-term changes in the macroenvironment, you must pick one element that will have the most profound effects on your company. Select an option from the choices below and click Submit.

Political environment: Experiential curriculum You chose the political environment. This was the best choice because it is likely to have the greatest impact on Gerlach's ability to sell science textbooks.

The __________ empowers the FTC to establish limits on quantity discounts, forbid some brokerage allowances, and prohibit promotional allowances except when made available on proportionately equal terms. Clayton Act Sherman Antitrust Act Federal Food and Drug Act Robinson-Patman Act

Robinson-Patman Act

The __________ prohibits monopolies and activities (price-fixing, predatory pricing) that restrain trade or competition in interstate commerce. Clayton Act Federal Food and Drug Act Federal Trade Commission Act Sherman Antitrust Act

Sherman Antitrust Act

Decision Point: Effects of Natural Environment Changes Now that you have selected the natural environment, you must predict what the effects of these changes on Gerlach's microenvironment might be. Select the outcome you see as most likely.

The suppliers might raise the costs of paper in the future You chose that the suppliers would raise the cost of paper. This was the best choice based on the information you have reviewed so far.

Decision Point: How Will You Respond to Political Changes? You call a meeting with your marketing analysts to discuss the situation. You give them your prediction that the school board will not buy Gerlach's textbooks, and ask for their recommendations as to how Gerlach should respond. Select an option from the choices below and click Submit.

We should lobby against the "hands-on" proposal. You chose to lobby against the "hands-on" proposal. This was the best choice because it will help Gerlach try to preserve the market for science textbooks.

Decision Point: Responding to Natural Environment Changes You call a meeting with your marketing analysts to discuss the situation. You give them your prediction that paper costs will rise in the future, and ask for their recommendations as to how Gerlach should respond. Select an option from the choices below and click Submit.

We should position ourselves as an environmentally friendly company by emphasizing our electronic products. You chose to position Gerlach as an environmentally friendly company. This was the best choice because it addresses prevailing environmental concerns.

Companies who hire lobbyists to influence legislation affecting their industries are said to be taking __________ action to affect the publics and forces in their marketing environment. passive reactive aggressive unfair

aggressive

The economic environment is __________. the physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities economic factors that affect purchasing power and spending patterns the laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society the forces that create new technologies, creating new product and market opportunities

economic factors that affect purchasing power and spending patterns

The __________ is the larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces. marketing environment microenvironment public macroenvironment

macroenvironment

The __________ is the actors close to the company that affect its ability to serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and public. microenvironment public marketing environment macroenvironment

microenvironment

The __________ is the physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities. economic environment political environment natural environment technological environment

natural environment

The __________ is the laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society. natural environment economic environment technological environment political environment

political environment

The Lanham Trademark Act __________. prohibits monopolies and activities (price-fixing, predatory pricing) that restrain trade or competition in interstate commerce protects and regulates distinctive brand names and trademarks forbids the manufacture or sale of adulterated or fraudulently labeled foods and drugs prohibits certain types of price discrimination, exclusive dealing, and tying clauses (which require a dealer to take additional products in a seller's line)

protects and regulates distinctive brand names and trademarks

The __________ is any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives. microenvironment public marketing environment macroenvironment

public