MARKETING CHAPTER 3

Which of these companies is being affected by literacy?

Kimball's Kroutons added pictures of ingredients to its packaging being sold in Ethiopia for consumers who could not read a list of ingredients.

Which of the following variables contribute to the cultural and social environment? (Check all that apply.)

Language Religious beliefs Clothing styles Education level

Which of the following factors do marketing managers consider when evaluating the industry attractiveness dimension of a product-market plan? (Check all that apply.)

Market size and rate of growth The types and amount of competition in the industry The potential environmental impact of the plan

Which of the following are examples of marketing strengths that might be enjoyed by the Coca Cola Company? (Check all that apply.)

Recognizable branding Experienced sales force Good relationships with retailers

Under English and U.S. common law systems, a seller is required to do which three of these things? (Check all that apply.)

Tell the truth Stand behind the firm's product Uphold contracts

Which of these companies is demonstrating monopolistic competition by trying to differentiate its product because it is similar to products offered by other companies?

The Cinemark movie theater chain enters a promotional deal with Starbucks where customers earn a free coffee when they attend a matinee.

Which of the following regions in the United States are currently experiencing the highest rates of population growth? (Check all that apply.)

The west The southeast

Company ___________ should guide all aspects of a business and are used by marketing managers as they search for and evaluate opportunities.

objectives

The pending impact of driverless cars will allow ______ to drive longer.

older people

A ______ competitive advantage includes a marketing mix that is widely viewed as superior to competitors' offerings and cannot be easily duplicated.

sustainable

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

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

Access to capital

Which of these statements regarding population trends is accurate?

About 80% of U.S. residents live in urban areas.

When considering starting a new business, which of the following can be a financial strength?

Access to capital

Susan is a first-time home buyer. She wants to keep her monthly mortgage payments as low as possible. Which of the following would work in her favor?

A low interest rate

Which of the following statements regarding marketing managers and potential competitors is true?

A marketing manager should research and seek information about competitors.

Carrie walks into her kitchen every morning and speaks to a device on her counter, "Alexa, what's the weather today?" The device she is interacting with is based on what technology?

AI

The _________ _________ _________ Act set up the Consumer Protection Commission.

Consumer Product Safety

Which of the following groups is responsible for establishing and enforcing safety standards in the United States?

Consumer Product Safety Commission

What are the four major areas of the external market environment? (Check all that apply.)

Cultural and social Technological Political and legal Economic

True or false: The technology associated with driverless cars may allow older adults to live on their own and slow the demand for nursing home care.

True

A major difference between the economic environment and the cultural and social environment is that the economic environment ______.

changes rapidly

To use technology in the best possible way, marketing managers must ______.

begin with customer needs

The ______ dimension of a strategic planning grid focuses on the firm's ability to accomplish the goals of a product-market plan.

business strengths

Aliza is the marketing manager at SinoSure Foods, an Asian food company. She has been going to stores to check out new products on the shelves by the SinoSure goods. She is actively seeking out information about current and __________ potential .

competition

Aliza is the marketing manager at SinoSure Foods, an Asian food company. She has been going to stores to check out new products on the shelves by the SinoSure goods. She is actively seeking out information about current and potential _________.

competition

When marketing managers analyze similar businesses and their strategies, they are considering the ______ environment.

competitive

Macro-economic factors that influence consumer spending, including rates of inflation and economic growth, are part of the ______ environment.

economic

The __________ environment changes more rapidly than the cultural and social environment.

economic

The collapse of the U.S. housing market in 2008 was an example of a rapid change in the ______ environment.

economic

The external market environment includes ______ major areas.

four

Some businesses avoid using new technology because they don't understand it, while other companies immediately use every new technology without assessing its value. Both of these approaches can steer a company into a ______ way of thinking.

production-oriented

Managers should set marketing objectives within the framework of larger ______.

company objectives

In competitive analysis, marketing managers attempt to identify those firms whose products and marketing mix are the most similar, these firms are known as ______.

competitive rivals

Marketing managers focus their competitive analysis on ______, firms that offer similar products and marketing mixes.

competitive rivals

The first step in competitor analysis is to identify potential ______.

competitors

The United States, Canada, and Mexico have an agreement in which there are no restrictions on imports and exports between the three countries. This is an example of _____.

free trade

The total value of all of the goods and services produced within a country in a given year is known as ______.

gross domestic product

The legal environment of the United States assumes that competition between numerous small businesses ______ the economy.

helps

The ______ dimension of a strategic planning grid helps managers determine whether a product-market plan is a good idea.

industry attractiveness

The _________ rate is the cost associated with borrowing money.

interest

In the United States, business that try to ______ competition are thought to act against the public interest.

limit

The degree of __________ of a population can determine the way information is delivered.

literacy

In Parul's condominium community, it is illegal to sell magazines door-to-door. This is an example of a _____ law.

local

In pure competition, customers see the different available products as close substitutes. Many marketing managers compete by ______.

lowering prices and sacrificing profits

Artificial intelligence refers to ______.

machines that operate like humans

To assess his company's progress against that of the competition, Greg has been asked to determine the total sales of Barrett's Boots Corp. for the past six months in the southeast compared to the total sales of boots across the entire United States. Greg will be providing information on _____.

market share

Home Depot has great relationships with building contractors. This is an example of a(n) ______ strength.

marketing

Which form of market environment includes customers, the company, and competitors?

Direct

Which of the following aspects should a company evaluate in order to determine its strengths and weaknesses? (Check all that apply.)

Employee knowledge Market demands Production capability and flexibility Current products

Which three of the following are considered elements of the economic environment?

Economic growth rates Inflation rates National income

True or false: Marketing managers find breakthrough opportunities or competitive advantage by using their strengths to take on competitors with similar strengths.

False

True or false: The United States makes up nearly 50% of the total world population.

False

The people born between 1965 to 1977 are referred to as ______.

Generation X

The people born from 1978 to 1994, who are sometimes called Millennials, are referred to as ______.

Generation Y

The people born after 1995 are referred to as ______.

Generation Z

Which of the following groups are considered "digital natives"?

Generation Z

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

Mission statement

Which of the following market situations features similar but not identical products, requiring marketing managers to differentiate their offerings by adjusting other elements of the marketing mix?

Monopolistic competition

Which four of the following are basic market/competitive situations a company might face? (Check all that apply.)

Monopolistic competition Oligopoly Monopoly Pure competition

People of what age range are considered senior citizens in the United States?

Over 65

Which of the following is an example of change in the economic environment that can affect a company's marketing strategy?

The collapse of the U.S. housing market in 2008.

Which two of the following factors are part of the competitive environment for a fast food chain?

The types of restaurants in the market The number of restaurants in the market

Which of the following statements about Generation Y are true?

They are health conscious. They are relatively comfortable with technology.

Which of the following is true of smaller firms? (Check all that apply.)

They can have the advantage of flexibility. They can be at a disadvantage because the cost of producing smaller units is higher.

Which of the following activities are part of the basic approach to competitor analysis? (Check all that apply.)

Understand how your marketing mix compares to your competitors' offerings and strategy. Evaluate the strengths and weaknesses of your target market and marketing mix. Identify existing and potential competitors.

Which of the following factors do managers consider when evaluating the business strengths dimension of a strategic planning grid? (Check all that apply.)

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 Whether the firm's employees are capable of carrying out the product-market plan

In many businesses, the ___________ of producing and selling each unit decreases as the number of units produced increases.

cost

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

cultural and social

A regional population ______ typically creates stronger competition among firms in the area.

decline

In pure competition, where competitors offer similar products, over time, profit margins generally _____.

decline

Customers and competitors are within the ______ market environment and must be considered during marketing strategy planning.

direct

The ______ market environment includes customers, the company, and competitors.

direct

Firms need a hierarchy of objectives, moving from company objectives to ______.

marketing objectives

An organization's __________ statement describes the organization's basic purpose for existing.

mission

In ______ competition, several firms offer marketing mixes that at least some customers see as different. In this situation, marketing managers try to differentiate their offerings by adjusting other aspects of the marketing mix.

monopolistic

The market for breakfast cereals includes many brands and marketing mixes that some customers see as different despite their similarities in terms of ingredients and branding. The breakfast cereal market can be described as ______.

monopolistic competition

An important requirement of the marketing strategy planning process is ______.

narrowing down the list of opportunities to those most likely to succeed.

Gross domestic product is a widely used measure of _____.

national income

China's resistance to foreign firms is an example of ______.

nationalism

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

nationalism

A company's ______ help guide present decisions and create a path to follow for future development.

objectives

The four basic market situations include monopoly, pure competition, monopolistic competition, and ____________.

oligopoly

Regional economic groupings such as the North American Free Trade Agreement are likely to promote similar ______ environments among member countries.

political

In the U.S. marketplace, vigorous competition is expected to ______ careful consumers.

protect

Fifty years ago, about two-thirds of the world's population lived in _________ areas.

rural

After analyzing environmental trends and the firm's resources and objectives, marketing managers should develop ______ to narrow down the number of strategic choices.

screening criteria

In the United States, people over the age of 65 (regardless of the year they were born) are called ______.

senior citizens

Market _____ is the portion of total sales in a product category accounted for by a particular brand.

share

Generation X is ______ in number than the baby boom generation.

smaller

There are state and city laws regulating _____. (Check all that apply.)

starting up a business the setting of prices

When an auto manufacturer applies scientific advancements to improve the gas mileage of its vehicles and increase sales, it is taking advantage of ______.

technology

A marketer who is analyzing demographic trends might study _____.

the age of the population