Microsoft Word Viewer - CHAPTER 04

8/14/2019 Microsoft Word Viewer - CHAPTER 04

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5. Which of the following BEST describes the environment that contains the larger

societal forces that affect the company-level environmentdemographic, economic,natural, technological, political, and cultural forces?

a. microenvironment

b. macroenvironment

c. global environmentd. networked environment

Answer: (b) Difficulty: (2) Page: 118, 123, Figure 4-4

6. All of the following would be considered to be a part of a companysmacroenvironment EXCEPT:

a. demographic forces.

b. marketing channel forces.

c. technological forces.d. natural forces.

Answer: (b) Difficulty: (1) Page: 118, 123, Figure 4-4

7. Finance, research and development, purchasing, and manufacturing are all activitiesthat are a part of which element of the microenvironment?a. the companys internal environment

b. the suppliers.

c. the marketing channel firms

d. the publics

Answer: (a) Difficulty: (1) Page: 119, Figure 4-1

8. __________ management sets the companys mission, objectives, broad strategies,

and policies.

a. Topb. Mid-level

c. Marketing

d. Tactical

Answer: (a) Difficulty: (1) Page: 119

9. ________________ are an important link in the companys overall value deliverysystem since they provide the resources needed by the company to produce its

goods and services.

a. Marketing intermediariesb. Competitor networks

c. Suppliers

d. Service representatives

Answer: (c) Difficulty: (2) Page: 119


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10. _________________ help the company to promote, sell, and distribute its goods tofinal buyers.

a. Marketing intermediaries

b. Competitor networks

c. Suppliersd. Service representatives


11. _____________ include resellers, physical distribution firms, marketing servicesagencies, and financial intermediaries.

a. Marketing intermediaries

b. Competitor networks

c. Suppliersd. Service representatives


12. Firms that help the company to stock and move goods from their points of origin

to their destinations are called:a. financial intermediaries.

b. physical distribution firms.

c. suppliers.

d. marketing services agencies.

Answer: (b) Difficulty: (2) Page: 120

13. Which of the following would be an example of a marketing services agency?

a. a warehouse

b. a transportation firmc. an insurance agency

d. an advertising agency

Answer: (d) Difficulty: (3) Page: 120

14. All of the following are considered to be a type of customer market EXCEPT a:

a. business market.b. competitor market.

c. government market.

d. reseller market.

Answer: (b) Difficulty: (1) Page: 120, Figure 4-2


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15. Which of the following would be considered a customer market?

a. a business marketb. a competitor market

c. a geographic market

d. a gender market

Answer: (a) Difficulty: (3) Page: 120, Figure 4-2

16. The type of customer market that buys goods and services for further processing is

called a:

a. business market.b. consumer market.

c. government market.

d. reseller market.


17. If your company were to make a product, such as a suit of clothes, and sell thatproduct to a retailer, your company would have sold to the ___________ market.

a. reseller

b. businessc. government

d. service


18. If your company were to make light bulbs to be used in photocopiers, you would

most likely be selling to a ________________ market.a. reseller

b. business

c. governmentd. service


19. A ______________ is any group that has an actual or potential interest in or

impact on an organizations ability to achieve its objectives.

a. competitive setb. marketing intermediary

c. supplier

d. public



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20. All of the following are significant publics that affect an organizations ability to

achieve its objectives EXCEPT:a. charitable publics.

b. financial publics.

c. media publics.

d. citizen action publics.

Answer: (a) Difficulty: (3) Page: 121, 122, Figure 4-3

21. _____________ publics include workers, managers, volunteers, and the board of

directors of an organization.a. General

b. Financial

c. Internal

d. Local


22. The Acme Corporation is considering building a plant in the inner city, and will have

to displace a seven block area of an old neighborhood. Which of the following

publics must be dealt with to make sure that the new construction can be successfullyaccomplished with a minimum of difficulty? (Choose the most significant of the

choices offered.)

a. financial public

b. internal publicc. media public

d. local public


23. All of the following are among the major forces considered to be in a companysmacroenvironment EXCEPT:

a. demographic forces.

b. natural forces.

c. technological forces.d. competitor forces.

Answer: (d) Difficulty: (2) Page: 122, 123, Figure 4-4

24. The study of human populations in terms of size, density, location, age, gender, race,

occupation, and other statistics is called:a. geothermy.

b. demography.

c. ethnography.d. hemos-popography.


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25. All of the following are areas that marketers in the United States track within the

demographic context EXCEPT:

a. package design changes.

b. changing age structures.c. geographic population shifts.

d. the changing American family.

Answer: (a) Difficulty: (1) Page: 122, 123

26. The single most important demographic trend in the United States is:

a. the geographic shift in population.

b. the changing American family.

c. the changing age structure of the U.S. population.d. the better-educated and more white-collar workforce.


27. According to the latest research byAmerican Demographics done in October 2000,

Baby Boomers account for which of the following percentages of the total U.S.population?

a. 16.4 percent

b. 25.8 percent

c. 28.2 percentd. 37.2 percent

Answer: (c) Difficulty: (3) Page: 123, Figure 4-5

28. There was a major increase in the annual birthrate in the United States following

World War II. This increase lasted until the 1960s. The people born during thistime period were called:

a. birth dearth.

b. baby busters.

c. Generation X.d. baby boomers.


29. All of the following would be among the lucrative markets that appeal to the baby

boomer market EXCEPT: (Choose the least likely.)a. financial services.

b. travel and entertainment.

c. computers.d. high-priced cars.


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30. Author Douglas Coupland called the generation that followed the baby boomers

___________ because they lie in the shadow of the boomers, and lack obvious

distinguishing characteristics.

a. Generation Yb. Generation X

c. Generation Dd. Yuppies


31. Generation Xers are given that name because:

a. they hate police and all forms of authority.

b. they lie in the shadow of the boomers and lack obvious distinguishingcharacteristics.

c. they are yuppies and dinks.d. they believe in Malcolm X as a hero figure.


32. Which of the following generations was once labeled the MTV generation?

a. Baby boomers

b. Generation X

c. Generation Yd. Generation D


33. Another name for Generation Y is the:

a. MTV generation.b. War babies.

c. Shadow generation.

d. Echo boomers.


34. Which of the following generations has grown up with the Internet, mobilecommunications, and video games?

a. Baby boomers

b. Generation Xc. Generation Y

d. Generation W



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35. The increase in working women, people marrying later and having fewer children,

and the number of nonfamily households increasing coincides with which of thefollowing trends?

a. the changing age structure of the population

b. the changing American family

c. increasing diversityd. a better-educated and more white-collar population


36. _____________ areas are small cities located beyond congested areas found in largercites. They offer many lifestyle advantages for todays urban commuter.

a. Metropolitan

b. Telecommute

c. Micropolitand. SOHO


37. The U.S. population is becoming better educated. As an example, in 2000,

________ of the population had completed high school and 26 percent had completedcollege.

a. 84 percent

b. 75 percent

c. 90 percentd. 96 percent


38. Marketers are facing increasingly diverse markets, both at home and abroad. The

_________ market has been ignored in the past, despite the fact that with 54 millionpeople in this market, it is larger than the African American or Hispanic markets.

a. gay and lesbian

b. India/Pakistan

c. disabilitiesd. infant

Answer: (c) Difficulty: (3) Page: 131-133, Marketing at Work 132

39. Factors that affect consumer purchasing power and spending patterns make up the

______________ environment.a. demographic

b. economic

c. naturald. technological


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40. Marketers pay close attention to income distribution as well as average income.

Which of the following groups usually must stick close to the basics of food, clothing,

and shelter, and must try hard to save?

a. the comfortable middle classb. the working class

c. the upper-classd. the under-class


41. According to Engels laws, as income rises:

a. the percentage spent on food rises.

b. the percentage spent on housing increases.c. the percentage spent on other categories increases.

d. the percentage spent on savings remains constant.


42. According to Engles laws, as income rises:a. the percentage spent on food declines.

b. the percentage spent on housing increases.

c. the percentage spent on other categories decreases.

d. the percentage spent on savings remains constant.


43. Concern that resources such as forests and food be used wisely is an outgrowth of

which trend in the natural environment?

a. the shortage of raw materialsb. the rapid pace of technological change

c. the increased cost of energy

d. increased pollutionAnswer: (a) Difficulty: (1) Page: 136

44. 3M runs a Pollution Prevention Pays program that has led to a substantialreduction in pollution and costs. This would be an example of responding to which

of the following?

a. Naders raidersb. the green movement

c. governmental regulation

d. international competition



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45. According to the text, the most dramatic of the environments that affects marketingand shapes our world today is the ________________ environment.

a. natural

b. demographic

c. economicd. technological


46. Which of the following countries leads the world in research and developmentspending?

a. Japan

b. Germany

c. United Statesd. England


47. The set of laws and regulations that guides commerce and that limits business for the

good of society as a whole is called:a. public policy.

b. consumer protection.

c. public interest group action.

d. social responsibility.


48. The ____________________ prohibits monopolies and activities (such as price fixing

and predatory pricing) which restrain trade or competition in interstate commerce.

a. Sherman Antitrust Act (1890)b. Clayton Act (1914)

c. Federal Trade Commission Act (1914)

d. Robinson-Patman Act (1936)

Answer: (a) Difficulty: (2) Page: 139, Table 4-2

49. The __________________ supplements the Sherman Act by prohibiting certain typesof price discrimination, exclusive dealing, and tying clauses (which require a dealer to

take additional products in a sellers line).

a. Federal Food and Drug Act (1906)b. Clayton Act (1914)

c. Federal Trade Commission Act (1914)

d. Robinson-Patman Act (1936)

Answer: (b) Difficulty: (2) Page: 139, Table 4-2


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50. The ___________________ amends the Clayton Act to define price discriminationas unlawful. It 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.

a. Sherman Antitrust Act (1890)b. Federal Food and Drug Act (1906)

c. Federal Trade Commission Act (1914)d. Robinson-Patman Act (1936)

Answer: (d) Difficulty: (3) Page: 139, Table 4-2

51. Laws that prevent companies from neutralizing competition reflect which reason for

the existence of legislation affecting business?

a. to protect companies from each otherb. to protect consumers from unfair business practices

c. to protect the interests of societyd. to protect businesses from unfair consumer demands


52. Laws that require truth in advertising and prohibit deceptive packaging reflect which

reason for government legislation of business?

a. to protect companies from each other

b. to protect consumers from unfair business practicesc. to protect the interests of society

d. to protect businesses from unfair consumer demands


53. Regulations that arise to ensure that firms take responsibility for the social costs oftheir products or production processes stem from which reason for government

legislation of business?

a. to protect companies from each other

b. to protect consumers from unfair business practicesc. to protect the interests of society

d. to protect businesses from unfair consumer demands


54. Enlightened companies encourage their managers to:a. look beyond what the regulation system allows and simply do the right thing.

b. always measure bottom line profit against social gain.

c. look to the regulation system as a benchmark that should not be exceeded.d. to embrace the policy of caveat emptor(let the buyer beware).


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55. The _________________ environment contains institutions and other forces that

affect societys basic values, perceptions, preferences, and behaviors.

a. natural

b. businessc. cultural

d. consumer


56. ______________ beliefs and values are passed on from parents to children and are

reinforced by schools, churches, business, and government.

a. Crucial

b. Corec. Primary

d. Secondary


57. ______________ beliefs and values are open to some degree of change.a. Crucial

b. Core

c. Primary

d. Secondary


58. Believing that you should dress the way your favorite musical group dresses would be

an illustration of which type of belief or value?

a. crucialb. core

c. primary

d. secondary


59. Most Americans believe in being honest. This would be an example of which of thefollowing types of beliefs or values?

a. crucial

b. corec. primary

d. secondary

Answer: (b) Difficulty: (2) Page: 141, 143


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60. According to the Yankelovich Monitor report, all of the following would be among

the major consumer themes as we head into the 2000s EXCEPT:a. paradox.

b. group above all else.

c. trust not.

d. no sacrifices.


61. That people use products, brands, and services as a means of self-expression reflects

which aspect of the cultural environment?a. peoples view of others

b. peoples view of themselves

c. peoples view of organizations

d. peoples view of nature


62. Companies have recently recognized that Spirituality is in. This recognition and

the corresponding marketing strategy built around it is a reflection of which of the

following views?a. peoples view of others

b. peoples view of themselves

c. peoples view of the universe

d. peoples view of nature


63. A management perspective in which the firm takes aggressive actions to affect the

publics and forces in its marketing environment rather than simply watching and

reacting to them is called a(n):a. marketing management perspective.

b. global action perspective.

c. environmental management perspective.

d. public management perspective.


64. Whenever possible, smart marketing managers will take a _____________ rather

than ___________ approach to the marketing environment. (Choose the best

combination available.)a. reactive/proactive

b. proactive/reactive

c. conciliatory/proactived. commanding/submissive


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83. A finding that as family income rises, the percentage spent on food declines wouldbe an example of one of Engels Laws.

Answer: (True) Difficulty: (2) Page: 134

84. If a company is pursuing a globally sustainable strategy, it is constructing strategy

and practices in an effort to create a world economy that the planet can supportindefinitely.

Answer: (False) Difficulty: (2) Page: 136, 137

85. The Wheeler-Lea Act of 1938 makes deceptive, misleading, and unfair marketing

practices illegal regardless of injury to competition.

Answer: (True) Difficulty: (2) Page: 139, Table 4-2

86. Secondary beliefs and values do not change often, are passed on from parents tochildren, and are reinforced by schools, churches, business, and government.

Answer: (False) Difficulty: (2) Page: 141

87. Considering the eight major consumer themes of the early 2000s, Everybody should

feel free to do his or her own thing is an example of the theme of reciprocity is the

way to go.


88. Because of trends found in peoples views of themselves, a bright future seems to

be developing for products and services that serve basic needs and provide real

value rather than for those relying on glitz and hype.


89. An example of a firm that has an environmental management perspective would beone that hires a lobbyist to influence legislation affecting their industry.


ESSAY QUESTIONS

90. As we hurdle into the new millennium, social experts are busy assessing the impact of

a host of environmental forces on consumers and the marketers who serve them. One ofthese forces is called millennial fever. Describe what you perceive to be millennial

fever, and give at least three examples that would illustrate this condition.


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Answer:

As described in the text, millennial fever is the result of an old year turning into a new

year (and even the world itself turning) multiplied a thousand-fold. People seem to be

overworked, overstimulated, and overloaded. As one authority put it, Americans areoverwhelmed...by the breathtaking onrush of the Information Age, with its high-speed

modems, cell phones, and pagers. We hail change but are also scared of it. The resultof this millennial fever is a yearning to turn back the clock to simpler times (we wish to

return to these times because we are afraid of an uncertain future).

Students may use any of the examples found in the opening vignette, or construct their

own. They should be given some license for creativity unless guidelines are provided.

Some suggested answers could be focused on any of the following nostalgic illustrations:

a). Kellogg has revived an old Corn Flakes package.b). Old styles of cars are being reintroducedPorsches Boxer.

c). Old songs are coming backJames BrownsI Feel Good.d). Volkswagen has reintroduced the Beetlea new Bug for a new millennium.

Difficulty: (2) Page: 115-118

91. Define and then briefly describe the component parts of the two major environmental

forces that affect the companys ability to serve its customers.

Answer:The first major component is the microenvironment. The microenvironment is defined as

being the forces close to the company that affect its ability to serve its customers. These

forces would then include the company itself, suppliers, marketing channel firms,customer markets, competitors, and publics.

The second major component is the macroenvironment. The macroenvironment isdefined as being the larger social forces that affect the microenvironment. These forces

would be the demographic, economic, natural, technological, political, and cultural

forces.

Difficulty: (2) Page: 118 and associated text material

92. What are the components of a companys internal environment?

Answer:A companys internal environment consists of top management, finance, R&D,purchasing, manufacturing, and accounting. Together all of these departments or areas

have an impact on the marketing departments plans and actions.

Difficulty: (1) Page: 119, Figure 4-1


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93. List and briefly characterize the various types of customer markets described in the

text.

Answer:a). Consumer marketsconsist of individuals and households that buy goods and

services for personal consumption.b). Business marketsbuy goods and services for further processing or for use in their

production process.c). Reseller marketsbuy goods and services to resell at a profit.

d). Government marketsare made up of government agencies that buy goods and

services to produce public services, or transfer the goods and services to others who needthem.

e). International marketsconsist of these buyers in other countries, including

consumers, producers, resellers, and governments.

Difficulty: (2) Page: 120, Figure 4-2

94. List, give an example, and then briefly identify the seven publics that impact anorganizations ability to achieve its objectives.

Answer:a). Financial publicsinfluence the companys ability to obtain funds. EX. a bank

b). Media publicscarry news, features, and editorial opinions. EX. newspapers

c). Government publicsthe various government entities that affect the operation of the

firm and its relationship with its environments. EX. product safety regulatoryagencies

d). Citizen-action publicsa companys marketing decisions may be questioned by

various groups within the general or national community. EX. environmentalwatchdog groups

e). Local publicsa companys marketing decisions may be questioned or impacted by

various groups within the neighborhood. EX. neighborhood residentsf). General publica company needs to be concerned about the general publics

attitude toward its products and activities. EX. perception by senior citizens

g). Internal publicsthis group includes workers, managers, volunteers, and the board of

directors. EX. top management

Difficulty: (2) Page: 121, 122, Figure 4-3

95. Explain the effect of changes in the demographic and economic environments on

marketing management decisions. Be sure to identify specific trends.

Answer:Changes in the demographic environment that affect marketing decisions are the

changing age structure of the U.S. population (often identified as the chief trend), thechanging American family role and structure (about one-half of all families will be

nonfamily units or single-parent families by 2000), geographic shifts in population


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(primarily moving to the Sunbelt), a better educated and more white collar workforce,

and increasing ethnic and racial diversity (especially the rise of Hispanic and AsianAmericans).

Economic trends include changes in income and income distribution, and changes in

consumer spending patterns. Americans are becoming more conservative in theirspending patterns and are demanding value. The economy is doing well, but that does

not mean that everyone in the economy is doing well. Those that have retrained in hightechnology are prospering and those that stayed in rust-belt manufacturing jobs are not.

To succeed in the future, education will be critical. Value marketing will become

increasingly important for the successful marketer.

Difficulty: (2) Page: 122-131 and 131-137

96. Characterize the baby boomers, Generation X, and Generation Y. Be specific in yourcomments and characterizations.

Answer:a). Baby boomers (born between 1946 and 1964) are now moving into middle age. They

are 78 million strong. They account for 28 percent of the population but one half of all

personal income. Baby boomers cut across all walks of life, though marketers have paidthe most attention to the upper crust of this group. They are reaching their peak in

earnings and spending. They constitute a lucrative market for new housing and home

remodeling, financial services, travel and entertainment, eating out, health and fitness

products, and high-priced cars and other luxuries.b). Generation X (born between 1965 and 1976) lie in the shadow of the boomers and

lack obvious distinguishing characteristics. They are defined as much by their

experiences as by their age. There are increasing divorce rates and unemployment forthis group. They are more cynical and purchase all forms of products. However, their

cynicism makes them more savvy shoppers. They like lower prices and a more

functional look. They have been labeled the MTV generation.c). Generation Y (born between 1977 and 1994) are 72 million strong. They are the

large and growing kid market that is very technologically savvy. They are fluent with the

Internet, computers, and digital technology. They will eventually rival the other two

generations in spending power and earnings.

Difficulty: (3) Page: 124-127

97. List and briefly discuss the trends that are currently affecting the natural environment.

Answer:a). growing shortages of raw materials

b). increased pollution

c). increased government intervention

Some students may also describe a fourth implied trend:


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d). a movement toward environmentally sustainable strategies and practices

Difficulty: (2) Page: 136 and associated text material

98. List and discuss the reasons that business legislation has been enacted. Give an

illustration of each reason.

Answer:The first is toprotect companies from each other. Although business executives may

praise competition, they sometimes try to neutralize it when it threatens them. Therefore,

laws are passed to define and prevent unfair competition. In the United States, such lawsare enforced by the Federal Trade Commission and the Antitrust Division of the Attorney

Generals office.

The second purpose of government regulation is toprotect consumers from unfair

business practices. Some firms, if left alone, would make shoddy products, tell lies in

advertising, and deceive consumers through their packaging and pricing. Unfair businesspractices have been defined and are enforced by various agencies.

The third purpose of government regulation is toprotect the interests of society againstunrestrained business behavior. Profitable business activity does not always create abetter quality of life. Regulation arises to ensure that firms take responsibility for the

social costs of their production or products.

Difficulty: (3) Page: 140

99. The Yankelovich Monitor has tracked consumer trends for years. It has identified

eight major consumer themes. List these and briefly comment on or give an example ofeach.

Answer:a). Paradoxpeople agree that Life is getting better and worse at the same time.

b). Trust notconfidence in many areas drops sharply (doctors for example).

c). Go it alonemore people now rely on themselves.

d). Smarts really counttrust intelligence and knowing.e). No sacrificeslooks are important but not at any price.

f). Stress hard to beatget lots of rest to beat stress.

g). Reciprocity is the way to goeverybody should feel free to do his or her own thing.h). Me.2live in a world built by me, not by you.

Difficulty: (3) Page: 143, 144

100. How are the major cultural values of a society expressed? The text stresses peoples

views in several areas. List and briefly describe each of these peoples views.


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Answer:a). Peoples views of themselves. People vary in their emphasis on serving themselves

versus serving others.

b). Peoples views of others. There seems to be a shift from a me society to a we

society.c). Peoples views of organizations. By and large, people are willing to work for

organizations and expect them, in turn, to carry out societys work.d). Peoples views of society. Peoples views vary, however, their orientation to their

society influences their consumption patterns, levels of savings, and attitudes toward the

marketplace.e). Peoples views of nature. A long-term trend has been peoples growing mastery over

nature through technology and the belief that nature is bountiful.

f). Peoples views of the universe. There is an increasing trend towards spirituality.

Difficulty: (3) Page: 144, 145

APPLICATION QUESTION

101. The demographic environment is of major interest to marketers because it involvespeople, and people make up markets. Analysts predict that one of the most important

markets in the future will be the female market. With more women working, assuming

leadership roles in business, science, and industry, and exploring horizons that were at

one time closed to them, the opportunity to market aggressively to them would seem tobe good. One avenue for doing this is on the Internet. Assume that you have just been

made managing director of a new Web site developed for women. Your site is intended

to compete with www.iVillage.com, www.oxygen.com,and www.women.com. If youwere interested in attracting corporate sponsors to your site, what issues would you

feature on your site, and what would you propose to make your site unique? Remember

to be specific in your suggestions and explain the rationale behind your suggestions.

Instructors Note: This question may be assigned in advance, given as a take-home

assignment, or given as an interactive learning project to explore the Internet. The

instructor may alter the directions in any way that is appropriate. Depending on the

coverage of womens issues in class, additional information may be necessary to enhance

the students ability to successfully answer this question. Suggestions for discussion

follow.

Answer:Students should think carefully about the trends described in the chapter as a means to

building a Web site. Consider the following issues:

a). the gentrification of Americawe are becoming olderb). the slowdown in the birthratehowever, pregnancy issues would still be important

with women


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c). generation specific data for womensee Baby Boomers, Generation X, and

Generation Y discussiond). singleness and family issuesmarrying later and having fewer children

e). working women

f). career women

g). housewives and house managersh). divorce and childbearing

i). financial mattersj). fads, fashions, and trends

k). diversity issues

l). legal mattersm). values and morals

n). hobbiesgardening, cooking, sewing, exercise, et cetera

Any of the above issues could be topics that might attract female attention. Note thatmany of these topics are those covered on the three Web sites mentioned in the question.

The instructor should also note the number of corporate sponsors that have lined up to bea part of the aforementioned Web sites. Consider the student suggestions carefully andremember to require justification for their ideas and suggestions.

Difficulty: (3) Page: 122-131, 131-135

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