Marketing Chapter 3
Numbering 49 million or more, this group of consumers is sometimes overlooked because it is less materialistic than other groups and prizes experience, not acquisition.
Generation X
The role of a company's marketing intermediaries is to do which of the following?
Help the company find, promote, sell, and distribute products
Overall, how has the American population changed over time?
It has become more diverse, better educated, and more mobile.
The demographic, economic, natural, technological, political, and cultural forces that affect a company's ability to serve its customers make up which of the following?
Macroenvironment
Marketers keep a close eye on demographic trends and developments in their markets. They analyze ________.
changing age and family structures, geographic population shifts, educational characteristics, and population diversity
The economic environment impacts marketing decisions. The economic environment consists of two primary economic factors that affect __________________.
consumer purchasing power and spending patterns
The demographic environment is of major interest to marketers because ________.
it involves people, and people make up markets
Larger ________ that affect the entire microenvironment combine to form the macroenvironment.
societal forces
Chicago's Best Pizzeria has been operating on the north side of Chicago for over 30 years. Its target market includes young, urban professionals who want new style, organic pizzas with exotic ingredients. However, in recent years, the population in the pizzeria's neighborhood has been shifting and fewer young, urban professionals live there. The population has grown older and wants traditional pizza, not pizza with exotic ingredients. Which of the following identifies the pizzeria's BEST response to this situation?
target a new market with a different product.
The ________ environment represents the most dramatic force affecting today's marketing strategies.
technological
According to the text, __________ are perhaps the most dramatic forces affecting today's marketing strategies.
technological forces
The group of economic factors that affect consumers' purchasing power and spending patterns is called ________.
the economic environment
The natural environment involves __________________ that are needed as inputs by marketers or that are affected by marketing activities.
the physical environment and natural resources
Which of the following identifies a change in the technological environment that could affect the success of a business?
A company develops a new battery that lasts twice as long as its predecessor.
To be successful, why should companies try to adopt a proactive stance on marketing?
A proactive stance allows a company to influence the market in its favor.
Which of the following BEST describes a duty that would fall under the jurisdiction of the FDA?
Checking the quality of food that is served in school lunches
A wedding services company changes its marketing strategy to reflect the fact that more LGBT (lesbian/gay/bisexual/transgender) marriages are taking place. The company is offering a broader range of ceremonies that cater to this market. Which of the following environments must this wedding company analyze?
Cultural
People's views of themselves, others, organizations, and nature are part of which macroenvironmental force?
Cultural forces
Forces in a company's macroenvironment that shape opportunities and pose threats to the company include what?
Demographic, economic, natural, technological, political/social, and cultural forces
Dylan Parker owns 27 acres on a farmstead in Iowa. Recently, as he was plowing a field, he came across a rich silver vein in the ground. Realizing his bounty, he decided to open a new business selling silver. Not knowing much about the marketing environment, he asks you what he should do. Which of the following is the BEST advice?
Dylan should focus on the business market and sell the raw silver for further processing.
Beverly's Burgers came under fire recently when allegations were made that its veggie burgers were actually made with beef. To counter the claims, the restaurant called in a company to test not only its veggie burgers but also the rest of its vegetarian options to prove they lacked meat. The results were displayed publicly on the restaurant's Facebook page. What BEST describes Beverly's Burgers response to the allegations?
Proactive
The Children's Online Privacy Protection Act in the United States enforces laws for what reason?
Prohibits online service operators from collecting personal information from children
Which of the following is an important trend in the natural environment of which marketers should be aware?
Shortages of raw materials
Proactive businesses often take aggressive actions to affect consumers and the forces in their marketing environments. Which of the following does NOT depict a proactive company?
Sophie's Soups refusing to counter false allegations of rat feces in its soups
Wonders such as robotic surgery, miniaturized electronics, and antibiotics can be attributed to which marketing environment?
Technological
Which of the following is NOT a problem involving the natural environment that marketers need to consider?
The aging U.S. population
What is the single most important demographic trend in the U.S. today?
The changing age structure of the population
How does the microenvironment of a company differ from its macroenvironment?
The microenvironment deals with the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.
From a marketing standpoint, which of the following BEST describes Baby Boomers?
They constitute a lucrative market for financial services, new housing and home remodeling, new cars, travel and entertainment, eating out, and health and fitness products.
Which of the following correctly lists the actors in a company's microenvironment?
The company, suppliers, marketing intermediaries, customer markets, competitors, and publics
Tina's Tunes is a music store that has been selling CDs for 20 years. Throughout the last six years, sales have continuously declined and profits have almost completely disappeared. The CEO of Tina's Tunes believes resurgence is likely to happen soon and wants to continue business as usual. What is likely to happen to Tina's Tunes?
Tina's Tunes is likely to fail because it is ignoring the technological environment.
The Fair Packaging and Labeling Act in the United States enforces laws for what reason?
To protect consumers from fraudulent packaging and labeling
Which of the following is a reason for business legislation?
To protect consumers from unfair business practices
Roper's Radical Racers is an upscale company that sells cars primarily to racecar drivers and movie producers. In the past, Roper's Radical Racers marketed itself to the fun-loving driverlong dash—the driver who wanted to "race with life." However, in the current economy, Roper's has changed its slogan to "superior speed, superior savings." Roper's Radical Racers is engaging in which of the following?
Value marketing
What advice would you give a firm about how to respond to the changing marketing environment?
Whenever possible, take a proactive approach to the environment.
Noah's Sporting Goods is having difficulty attaining the credit it needs to expand. What should the company do in order to alleviate its financial situation?
Work out a plan with its financial intermediaries
Many companies see the marketing environment as uncontrollable. They ________ that will help the company avoid the threats and take advantage of the opportunities the environment provides.
analyze environmental forces and design strategies
Major ________ shape marketing opportunities, pose threats, and affect the company's ability to engage customers and build customer relationships.
environmental forces
The technological environment changes rapidly, creating new markets and opportunities. However, some companies might miss new product and market opportunities because of three primary reasons that include ________, ___________, or, __________.
fighting or ignoring new technologies, inability to keep up, or ignoring a changing regulatory landscape
Environmental sustainability concerns have grown steadily over the past three decades. Marketers should be aware of three primary trends in the natural environment, which include ________, ________________, and ________________.
growing shortages of raw materials, increased pollution, and increased government intervention in natural resource management
In addition to income levels, marketers need to pay attention to ______, which has created a tiered market.
income distribution levels
Even though legislation affecting business around the world has increased steadily over the years, there has been ________.
increased emphasis on ethics and socially responsible actions
The cultural environment consists of ________ that affect a society's values, perceptions, preferences, and behaviors.
institutions and forces
Legislation affecting business around the world has increased steadily over the years within the political environment. The increased legislation has been enacted in three primary areas including ________, ______________, and _______________.
laws protecting companies from each other, laws protecting consumers, and laws protecting the interests of society
The company's ________ consists of actors close to the company that combine to form its value delivery network or that affect its ability to serve customers.
microenvironment
Marketers want to predict cultural shifts to spot new opportunities or threats. The major cultural values of a society are expressed in people's views of themselves and others, as well as in their views of ________, __________, ____________, and ________.
organizations, society, nature, and the universe
The major cultural values of a society are expressed by _________.
people's views of themselves and others, as well as their views of organizations, society, nature, and the universe
Firms that develop strategies to change the environmentlong dash—instead of assuming that strategic options are bounded by the current environmentlong dash—are being _______.
proactive
Other companies do not see the marketing environment as uncontrollable. They take a ________ stance toward the marketing environment and develop strategies to ________ the environment.
proactive; change
The purpose of business legislation is primarily based on ________.
protection
Rather than simply watching and reacting to environmental events, proactive firms take aggressive actions to affect the _______________in their marketing environment.
publics and forces
Many companies view the marketing environment as an uncontrollable element to which they must ________.
react and adapt
The microenvironment consists of those close to the company that combine to form its value delivery network or that affect its ability to serve customers through six key ways, which include ________, __________, ___________, ________, _________, and _______.
the company, suppliers, marketing intermediaries, customer markets, competitors, and publics
The economic environment can offer both opportunities and threats. For example, in the post-Great Recession era, ________ has become the focus for marketers in all industries.
value marketing
To exercise their social responsibility, many companies are linking themselves to what type of marketing?
Cause-related