Marketing - Ch. 5
New advertising guidelines require marketers to produce
food in reasonably proportioned sizes. New advertising guidelines therefore require marketers to produce food in reasonably proportioned sizes. Advertised food items must provide basic nutrients, have less than 30 percent of their total calories from fat, and include no added sweeteners.
When Kimberly-Clark introduced rolls of toilet paper without the cardboard core, what social trend did this product respond to?
green marketing By eliminating the cardboard core, a form of consumer waste is eliminated, which would be of interest to consumers concerned about the environment. When they undertake green marketing strategic efforts, firms work to supply customers with environmentally friendly, sustainable merchandise and services.
Strategic efforts to supply consumers with environmentally friendly merchandise are called
green marketing. Green marketing refers to the marketing of environmentally friendly, sustainable merchandise or service.
The difference between a firm's immediate marketing environment and its macroenvironment is that the macroenvironment
is external. The macroenvironment consists of factors external to the firm.
Netflix uses ________ analytics to suggest which movies we should watch as well as to develop new content that it is confident we will like.
predictive Netflix relies on its advanced technological capabilities not just to suggest which movies we should watch but also to develop new content that it is confident we will like.
For most makers of ________, especially those that resonate strongly with consumers' sense of nostalgia and childhood memories, changing ingredients to healthier options represents a grave risk.
processed foods
One of the UN Sustainable Development Goals is to
reduce hunger. One of the UN Sustainable Development Goals is to reduce hunger, and reducing food waste is critical to that effort.
In New England, foot-long sandwiches are called "grinders," while in many other parts of the country they are called "subs." This is an example of the impact of
regional culture. The region in which people live in a particular country has its own regional culture that affects many aspects of people's lives, including their dietary tastes and preferences.
Which of the following is not a demographic listed in your text that would typically be used to identify consumer markets?
religion Age, gender, race, and income are commonly used demographic characteristics of human populations and segments.
A generational cohort is a group of people
who are of the same generation. Consumers in a generational cohort—a group of people of the same generation—have similar purchase behaviors because they have shared experiences and are in the same stage of life.
The primary strength of Corning is its ability to manufacture glass. This describes which factor of a Corning consumer's immediate environment?
company capabilities In the immediate environment, the first factor that affects the consumer is the company's own capabilities. The primary strength of Corning is its ability to manufacture glass.
One of the goals of value-based marketing is
to offer greater value than competitors offer. Because the consumer is the center of all marketing efforts, value-based marketing aims to provide greater value to consumers than competitors offer. Therefore, the marketing firm must consider the entire business process, all from a consumer's point of view.
Many American consumers are purchasing hybrid automobiles even though they are more expensive than conventional compact cars. These consumers
value contributing to a greener environment. Firms are actively engaging in sustainable practices in terms of how they go about manufacturing products and provisioning services, as well as the types of products and services that they offer. These consumers are willing to pay more for environmentally friendly products because care for the environment is something that adds value.
By 2050, minorities will represent about ________ percent of the population, and nearly ________ percent of the population will be Hispanic.
50; 23 Minorities now represent approximately one-quarter of the population; by 2050 they will represent about 50 percent, with nearly 23 percent of the population Hispanic, and by 2055 there will not be an ethnic minority in the United States.
According to your text, the wealthiest 10 percent of the population control approximately what percentage of Americans' total net worth?
76 percent Income distribution in the United States has grown more polarized. The wealthiest 10 percent control 76 percent of Americans' total net worth; in comparison, the bottom 50 percent control only 1 percent.
Which statement about the changing ethnicity in the United States is true?
A majority of black Americans now live in the suburbs. Thirty-two percent of black households earn more than $75,000, and it is expected that a majority of black Americans now live in the suburbs.
Which ethnic group tends to be not only more affluent and suburban than previously thought, but also younger, with 58 percent between the ages of 15 and 49 years?
African American In 2016 African American U.S. households had a mean (average) yearly income of over $49,000. They tend to be younger, such that 58 percent are between the ages of 15 and 49 years (a key age demographic for many marketers). Thirty two percent of black households earn more than $75,000, and it is expected that a majority of black Americans now live in the suburbs.
Christie, a marketing executive who was born in 1955, advocated that her company focus on a print campaign for its new line of lipsticks rather than spending money on online ads. This point of view may be attributed to the fact that she is a member of which generational cohort?
Baby Boomer After World War II, the birthrate in the United States rose sharply, resulting in a group known as the Baby Boomers, the 78 million Americans born between 1946 and 1964.
Now that the oldest ________ are collecting Social Security, it is clear that this cohort will be the largest population of 50-plus consumers the United States has ever seen.
Baby Boomers
Your text describes the macroenvironmental factors that operate in the external environment by which acronym?
CDSTEP In addition to understanding their customers, the company itself, their competition, and their corporate partners, marketers must understand the macroenvironmental factors that operate in the external environment, namely, the culture, demographics, social trends, technological advances, economic situation, and political/regulatory environment, or CDSTEP.
Whereas it took 38 years for the radio to be adopted by 50 million people and 13 years for television, it only took 2 years for the same number of consumers to sign up for
As the children of the Baby Boomers, Generation X is the biggest cohort since the original post-World War II boom.
False As the children of the Baby Boomers, Generation Y is the biggest cohort since the original post-World War II boom.
In the immediate environment, the competition has no effect on consumers.
False Consumers may be influenced directly by the immediate actions of the focal company, the company's competitors, corporate partners, and the physical environment that work with the firm to make and supply products and services to consumers.
Companies can no longer use cartoon characters to promote products such as burgers and fries because the characters do not retain popularity among young children for very long.
False Feedback: Advertised food items must provide basic nutrients, have less than 30 percent of their total calories from fat, and include no added sweeteners. The advertising cannot be aired during children's programming, and companies cannot link unhealthy foods with cartoon and celebrity figures.
As the euro becomes more expensive relative to the dollar, Americans are likely to purchase more European wines.
False Foreign currency fluctuations can influence consumer spending. When the euro becomes more expensive relative to the dollar, it means that it costs more dollars to buy European goods, which is likely to lead to a drop in the quantity of European wine purchased by Americans.
Macroenvironmental factors include the company, competition, corporate partners, and the physical environment.
False Macroenvironmental factors are external factors such as culture, demographics, social trends, technological advances, economic situation, and political/regulatory environments (CDSTEP). The factors listed in the question relate to the immediate environment.
According to trend watchers and marketing researchers, consumers are concerned about the vast disparity in income.
False What trend watchers and market researchers tell us, over and over, is that consumers are seeking healthier food options.
The ________ prohibited the manufacture or sale of adulterated or fraudulently labeled food and drug products.
Federal Food and Drug Act The Federal Food and Drug Act of 1906 prohibited the manufacture or sale of adulterated or fraudulently labeled food and drug products.
Which of the following laws was passed to regulate unfair competitive practices and practices that deceive or are unfair to consumers?
Federal Trade Commission Act The Federal Trade Commission Act (FTC) was passed to regulate unfair competitive practices and practices that deceive or are unfair to consumers.
________, also known as Millennials, constitutes more than 60 million members in the United States alone and were born between 1977 and 2000.
Generation Y
Which group of consumers in the United States has an increasing influence on mainstream U.S. culture with buying power that was projected to reach $1.3 trillion in 2015?
Hispanic The 50 million Hispanic consumers in the United States have increasing influences on mainstream U.S. culture. Many families have been in the United States for multiple generations, and the consumer behavior of these highly acculturated Hispanics differs little from that of other groups of Americans. Among the different groups, Hispanic buying power was projected to reach $1.3 trillion in 2015, a cumulative increase of around 25 percent compared with 2010.
Google's self-driving cars have been the most widely talked about product, in part because its driverless car program, which began in 2009, is the oldest.
True Google's self-driving cars have been the most widely talked about product, in part because its driverless car program, which began in 2009, is the oldest. The Google car might not be ready yet, but it seems to be leading the pack and improving rapidly.
By paying close attention to customer needs and continuously monitoring the business environment in which it operates, a good marketer can identify potential opportunities.
True Changes in the environment can be a source of opportunities for the firm.
Demographic profiles of customers provide an easily understood snapshot of the typical consumer in a specific target market.
True Demographics provide an easily understood snapshot of the typical consumer in a specific target market.
The 1890 Sherman Antitrust Act prohibits monopolies and other activities that would restrain trade or competition and makes fair trade within a free market a national goal.
True The 1890 Sherman Antitrust Act prohibits monopolies and other activities that would restrain trade or competition and makes fair trade within a free market a national goal.
Members of Generation Y are also called Millennials.
True The group of people born between 1977 and 2000 are referred to as Generation Y, Gen Y, or Millennials, and include the more than 60 million people born in the United States between 1977 and 2000.
The marketing firm must consider the entire business process, all from a consumer's point of view.
True The marketing firm must consider the entire business process, all from a consumer's point of view.
Culture can broadly be defined as the shared meanings, beliefs, morals, values, and customs of a group of people.
True This is the definition of culture. Culture can be transmitted by words, literature, and institutions; it is passed down from generation to generation and learned over time.
Which of the following is true of changing gender roles?
Women graduate from high school and college at greater rates than men. Women outperform men scholastically, they graduate from high school and college at greater rates than men, and the percentage of seats in Congress held by women has been increasing steadily in recent years. About 42 percent of gamers are female, and approximately 38 percent of married women outearn their husbands.
For some products, marketers can combine education level with other data like occupation and income to obtain
accurate predictions of purchase behavior.
When marketers monitor the economic situation affecting their target markets, they are likely to monitor changes in all of the following except
age. Marketers monitor the general economic situation, both in their home country and abroad, because it affects the way consumers buy merchandise and spend money. Some major factors that influence the state of an economy include the rate of inflation, foreign currency exchange rates, and interest rates.
A firm's macroenvironment includes all of the following except
competition. Competition is part of the immediate environment, not the macroenvironment.
The centerpiece of the marketing environment analysis framework is
consumers. The consumer is the center of all marketing efforts.
Every time a consumer surfs the web and clicks on a site, online marketers can place ________ on that user's computer, showing them where the user starts, proceeds, and ends the online encounter—as well as what the user buys and doesn't buy.
cookies Every time a consumer surfs the web and clicks on a site, online marketers can place "cookies" on that user's computer, showing them where the user starts, proceeds, and ends the online encounter—as well as what the user buys and doesn't buy. For many consumers, such close access to their behaviors is an unacceptable invasion of privacy.
Yellow Trucking provides transportation services for Dan's Delicious Donuts so that Dan's stores always have fresh stock. Yellow Trucking is an example of a
corporate partner. Parties that work with the focal firm are its corporate partners.
Ford Motor Company engages in partnerships with its suppliers, component part makers, unions, transport companies, and dealerships—collectively known as its
corporate partners. Few firms operate in isolation. For example, automobile manufacturers collaborate with suppliers of sheet metal, tire manufacturers, component part makers, unions, transport companies, and dealerships to produce and market their automobiles successfully. Parties that work with the focal firm are its corporate partners.
Disney and other global firms have successfully bridged the cultural gap by producing advertising that appeals to the same target market across
countries. Disney and other global firms have successfully bridged the cultural gap by producing advertising that appeals to the same target market across countries. The pictures and copy are the same. The only thing that changes is the language.
Late in the day on September 11, 2001, the day of the World Trade Center attacks, Americans purchased all the American flags Walmart stores had available, nationwide. These purchases were indicative of
country culture. Country culture consists of a country's shared beliefs and values, which included a strong thread of patriotism after the World Trade Center attacks. The visible nuances of a country's culture, can include artifacts, behavior, dress, symbols, physical settings, ceremonies, language differences, colors, tastes, and food preferences.
If McDonald's wanted to change its marketing strategy in response to the social trends outlined in the text, it might consider all of the following ideas except
creating an advertising campaign targeting elementary schoolchildren. Targeting preteens is related to demographic factors, not a current social trend, and in fact would probably be considered to work against the social trend toward health and wellness, given that many of McDonald's menu items are considered to be unhealthy.
Broadly defined, ________ is (are) the shared meanings, beliefs, morals, values, and customs of a group of people.
culture Culture is transmitted by words, literature, and institutions, and is defined as the shared meanings, beliefs, morals, values, and customs of a group of people.
Insight Guides, a line of travel books, provides travelers with background information about people's beliefs, values, and customs in various parts of the world. Insight's books educate travelers about a country's
culture. People's beliefs, values, and customs relate to their culture.
Lisle Hair Company keeps track of the gender and age of its customers so it can target e-mails to them and be sure to have the right hair products in stock when they visit. This is an example of the use of ________ in marketing.
demographics Typical demographics include age, gender, race, and income.
Firms that disingenuously market products as environmentally friendly with the goal of gaining public approval and sales, rather than actually improving the environment, are guilty of
greenwashing.
Some companies have been accused of taking advantage of the current social trend of green marketing, positioning their products as environmentally friendly when this may not actually be the case. This practice is called
greenwashing. Greenwashing is the practice of claiming environmental benefits for your product that are not genuine.
ABC Company knew that its customers were interested in environmentally friendly business practices, so it began marking all of its products as environmentally friendly because they were made with all-natural ingredients, even though ABC's plant was one of the worst polluters in town. The term for this practice is
greenwashing. The term for disingenuously marketing products as environmentally friendly when they are not is greenwashing.
Which of the following is a social trend listed in the text?
health and wellness Various social trends appear to be shaping consumer values in the United States and around the world, including a greater emphasis on sustainability, health and wellness considerations, and more efficient utilization and distribution of food.
As a retail clothing store manager, Sandy frequently asks his staff what customers are saying and what they are asking for. He also attends the quarterly clothing show at the regional merchandise mart. Sandy's efforts will likely help him
identify potential opportunities. By paying close attention to customer needs and continuously monitoring the business environment in which the company operates, a good marketer can identify potential opportunities.
Which of the following frameworks for analysis is comprised of a company's capabilities, competitors, corporate partners, and the physical environment?
immediate environment
The cost of borrowing money is measured by
interest rates. Interest rates represent the cost of borrowing money. When customers borrow money from a bank, they agree to pay back the loan, plus the interest that accrues. The interest, in effect, is the cost to the customers or the fee the bank charges those customers for borrowing the money.
When a firm evaluates how other companies react to the firm's marketing activities, it is attempting to understand what aspect of the immediate environment?
its competitors Competition significantly affects consumers in the immediate environment, so it is critical that a marketer understand its competitors by evaluating their strengths, weaknesses and likely reactions to the firm's marketing activities.
The political/regulatory environment comprises political parties, governmental organizations, and
legislation and laws.
Though Asian Americans comprise only about 5.6 percent of the U.S. population, they represent
the fastest-growing minority population. Asian Americans make up only about 5.6 percent of the U.S. population, but they also represent the fastest-growing minority population, tend to have more spending power, have more schooling, and be more likely to be professionally employed or own a business.
The government has enacted laws that promote both fair trade and competition by prohibiting the formation of monopolies or alliances that would damage a competitive marketplace, fostering fair pricing practices for all suppliers and consumers. These actions are part of the ________ environment of business.
political/regulatory The political/regulatory environment comprises political parties, government organizations, and legislation and laws.
Which of the following is a macroenvironmental factor included in the CDSTEP acronym?
political/regulatory environment Macroenvironmental factors include culture, demographics, social trends, technological advances, economic situation, and political/regulatory environment, or CDSTEP.
Political candidates are notorious for appealing to the different beliefs and values of groups of potential voters in different areas of the country. These politicians are appealing to differences in
regional culture. The region in which people live in a particular country has its own regional culture that affects many aspects of people's lives, including their preferences.
Which of the following are commonly found in distribution and fulfillment centers to fill orders for stores or individual customers?
robots Robots in all shapes, sizes and forms are entering the marketplace and performing work that previously was the responsibility of human workers. They already are commonly in distribution and fulfillment centers to fill orders for stores or individual customers.
Marketers know that, compared to high school graduates who are working full time, college students
spend their disposable dollars differently. For some products, marketers can combine education level with other data such as occupation and income and obtain pretty accurate predictions of purchase behavior. For instance, a full-time college student with a part-time job may have relatively little personal income but will spend his or her disposable dollars differently than would a high school graduate who works in a factory and earns a similar income.
Although the trend of wealthy households outpacing both poor and middle classes is worldwide, it is particularly prominent in
the United States.
In the immediate environment, what is the first factor that affects the consumer?
the company itself The company itself is the first factor that affects the consumer in the immediate environment.
