The Marketing Environment

Multiple Choice

1.
The most commercially influential demographic group in
history is _____.
a. generation
X
b. baby
boomers
c. generation
Y
d. seniors

The current marketing environment has a tendency to turn
back the clock to simpler times. What
has this yearning produced?
a. massive
nostalgia wave
b. massive
nutrition wave
c. massive
exercise wave
d. massive
music wave
;
2.
_____ is perhaps the company that has been most
successful in riding the nostalgia wave.
a. Capital
Records
b. Ovaltine
c. Volkswagen
d. Levi
Strauss
3.
Most trend analysts believe that the nostalgia
craze/wave will _____ as the baby boomers continue to mature.
a. decline
b. slow
c. disappear
d. grow

4.
Jamie Bestowitcz is researching the factors and forces
outside marketing that affect marketing management’s ability to build and
maintain successful relationships with target customers. What is Jamie researching?
a. the
marketing environment
b. strategic
planning
c. target
markets
d. none
of the above
;
5.
More than any other group in the company, marketers
must be the _____ and _____.
a. mass
merchandisers; opportunity seekers
b. trend
trackers; mass merchandisers
c. most
skilled; trend trackers
d. trend
trackers; opportunity seekers

6.
You are directed to study the factors that are close to
the company that affect its ability to serve its customers – the company,
suppliers, marketing intermediaries, customer markets, competitors, and
publics. What are you studying?
a. the
macroenvironment
b. the
microenvironment
c. the
marketing environment
d. the
global environment
7.
You are directed to study the factors that are larger
societal forces that affect your company – demographic, economic, natural,
technological, political, and cultural.
What are you studying?
a. the
macroenvironment
b. the
microenvironment
c. the
marketing environment
d. the
global environment
8.
All of the groups within a company are called the
_____.
a. culture
b. diversity
c. internal
environment
d. climate
9.
Which of the following do suppliers not provide
marketers within your firm?
a. resources
to produce products and services
b. insight
into trends and competitors
c. partners
in creating and delivering customer value
d. the
funding for your paychecks
10. LandPort
Transportation and Omega Warehousing help distribute the goods your company
sells. The two businesses are examples
of _____.
a. resellers
b. marketing
services agencies
c. marketing
intermediaries
d. physical
distribution firms
11. These
firms help companies to stock and move goods from their points of origin to
their destinations.
a. financial
intermediaries
b. physical
distribution firms
c. marketing
service firms
d. resellers

12. Banks,
credit companies, insurance companies, and other businesses that help finance
transactions or insure against the risks associated with the buying and selling
of goods and services are referred to as _____.
a. financial
intermediaries
b. physical
distribution firms
c. marketing
service firms
d. resellers
13. Currently,
you are employed by a firm that conducts marketing research and creates ads for
other companies that help them target and promote their products to the right
markets. For whom are you employed?
a. financial
intermediary
b. physical
distribution firm
c. marketing
service firm
d. reseller
14. Percy
Originals caters to a market of individuals and households that buys goods and
services for personal consumption. What
do we call this market?
a. business
b. reseller
c. government
d. consumer
15. Name
the market that buys goods and services for further processing or for use in
the production process.
a. business
b. reseller
c. wholesale
d. consumer

16. Rachel
Patino works for a wholesale company called Distributors Unlimited. She is responsible for buying and selling
goods at a profit to small retailers.
What is her market?
a. business
b. reseller
c. wholesale
d. consumer

17. A
company’s marketing environment includes various _____, which consists of any
group that has an actual or potential interest in or impact on an organization’s
ability to achieve its objectives.
a. teams
b. audiences
c. markets
d. publics
18. This
type of public is a radio station that carries news, features, and editorial
opinions about your area. What is it?
a. financial
b. media
c. citizen-action
d. local
19. A
consumer organization, environmental group, and minority group have challenged
your firm’s stand on a local issue. This
is the _____ public.
a. general
b. local
c. government
d. citizen-action
20. Your
marketing environment is currently researching the size, density, location,
age, and occupations of your target market.
What is this environment?
a. demographic
b. psychographic
c. VALS
d. geographic

21. Statisticians
have projected the world’s population to reach _____ billion by the year 2025.
a. 6.5
b. 6.9
c. 7.5
d. 7.9
22. The
three largest age groups in America are the baby boomers, generation X, and
_____.
a. seniors
b. generation
Y
c. teens
d. toddlers
23. You
distribute coupons to every household in America. Sooner or later, you will reach all ___
million people in this country.
a. 267
b. 277
c. 287
d. 297

24. Research
has shown that the most important demographic trend in the United States is the
_____.
a. changing
age structure of the population
b. mobility
of people
c. slowing
birth rate
d. increase
in professional jobs

25. Some
baby boomers are referred to as “DINKs.”
What does this stand for?
a. dependable
income, no-kids couple
b. don’t
work, intelligent, no-kicks
c. dual-income,
no-kids couple
d. none
of the above
26. Baby
boomers were born between the years 1946 and _____.
a. 1954
b. 1960
c. 1964
d. 1970
27. This
demographic age group is approaching life with a new stability and
reasonableness in the way they live, think, eat, and spend. They are _____.
a. generation
X
b. generation
Y
c. baby
busters
d. baby
boomers
28. Which
group buys a lot of sweaters, boots, electronics, cars, and computers?
a. generation
X
b. generation
Y
c. baby
boomers
d. all
of the above

29. This
group shares new cultural concerns, cares about the environment, and responds
favorably to socially responsible companies.
Who are they?
a. generation
X
b. generation
Y
c. generation
Z
d. baby
boomers
30. Who
are the echo boomers?
a. generation
X
b. generation
Y
c. generation
Z
d. baby
boomers

31. This
group has created large kid and teen markets.
Who are they?
a. generation
X
b. generation
Y
c. generation
Z
d. baby
boomers
32. Recently
you read a marketing research report that mentioned ____ has (have) utter
fluency and comfort with computer, digital, and Internet technology.
a. generation
X
b. generation
Y
c. generation
Z
d. baby
boomers

33. Defining
people by their birth date may be less effective than segmenting them by their
_____ or ____.
a. income;
occupation
b. lifestyle;
occupation
c. lifestyle;
life stage
d. occupation;
life stage
;
34. It
is interesting to note that about _____ percent of American households contain
married couples with children.
a. 24
b. 28
c. 32
d. 34

35. The
three groups of baby boomers include leading, _____, and trailing.
a. core
b. general
c. secondary
d. central
;
36. _____
households are now growing faster than _____ households.
a. Traditional;
nontraditional
b. Large;
traditional
c. Nontraditional;
smaller
d. Nontraditional;
traditional
37. In
1950, women made up 30 percent of the workforce; now they make up _____.
a. 35
percent
b. 40
percent
c. 43
percent
d. 46
percent
38. Americans
are very mobile. Over the past two
decades, the U.S. population has shifted toward the _____ states.
a. Midwest
b. western
c. sunbelt
d. southeastern
;

39. Within
given regions, the population is moving from large cities to the _____.
a. smaller
cities
b. rural
areas
c. foreign
countries
d. suburbs
40. Nearly
40 million Americans are working out of their homes with electronic
conveniences. They are called the
_____ market.
a. telecommuters
b. SOHO
c. mobile
d. work-at-home
41. Population
shifts interest marketers because people in different regions _____
differently.
a. eat
b. think
c. buy
d. act
42. Facts
For You research firm has just released a report that one of these groups of
workers has declined during the last 20 years.
Which one is it?
a. white
collar
b. blue
collar
c. service
d. unemployed
;
43. Marketers
need to know that almost everyone in this country is a native. Which country is it?
a. China
b. Bolivia
c. Japan
d. Korea

44. Because
of increased _____, Americans will demand higher quality products, books,
magazines, travel, personal computers, and Internet services.
a. income
b. family
size
c. education
d. none
of the above
45. It
is important for marketers to know that the _____ population growth is 12 times
greater than the Caucasian growth rate.
a. Hispanic
b. Ethnic
c. Asian
d. African
American
46. Most
large companies know they must now target specially designed _____ and _____ to
ethnic groups in the United States.
a. advertising;
services
b. services;
promotions
c. products;
promotions
d. services;
labeling

47. Members
of this group are more likely than the general population to have professional
jobs, own a vacation home, own a notebook computer, and own individual stocks.
a. yuppies
b. gays
and lesbians
c. baby
boomers
d. echo
boomers
48. This
group of Americans totals 54 million.
Who are they?
a. baby
boomers
b. people
born in America
c. people
with disabilities
49. Which
economic group offers few market opportunities?
a. subsistence
b. second-world
c. industrial
d. industrial-technical

50. The
_____ environment consists of factors that affect consumer purchasing power and
spending patterns.
a. social-cultural
b. political-legal
c. technological
d. economic
51. During
the 1980s, American consumers fell into a(n) _____ frenzy that may never be
equaled again in our time.
a. debt
b. consumption
c. unemployment
d. spending
52. Marketers
would do well to take heed of the fact that this group is somewhat careful about
its spending but can still afford the good life some of the time.
a. Lower
class
b. lower-middle
class
c. middle
class
d. upper
class
53. Since
money is tight for most Americans, marketers must strike a balance between
product quality and price called _____.
a. value
marketing
b. lifestyle
marketing
c. income
distribution marketing
d. satisfaction
marketing
54. Find
the group of expenses that use up most household income.
a. food,
housing, retirement planning
b. housing,
insurance, taxes
c. food,
housing, transportation
d. housing,
taxes, transportation

55. Ernst
Engel’s laws generally have been supported by recent studies. He discovered that as family income rises,
the percentage spent on _____ declines and the percentage spent on _____
remains about constant.
a. food; clothing
b. clothing; recreation/entertainment
c. food;
transportation
d. food;
housing

56. One
of the major concerns for marketers about the natural environment is the _____.
a. number
of protestors against misuse
b. shortages
of raw materials
c. increases
in recycling
57. The
natural resources that are needed as inputs by marketers or that are affected
by marketing activities are referred to as the _____.
a. raw
material market
b. natural
environment
c. endangered
environment
d. green
movement
58. As
a marketer of pesticides, you should be concerned about all of the following
natural environment trends mentioned in your text except _____.
a. shortages
of raw materials
b. increased
pollution
c. increased
government intervention
d. d;
government subsidies
59. What
movement has spawned the marketer’s awareness of environmentally sustainable strategies?
a. EPA
b. black
market
c. green
movement
d. deregulation

60. Can
you find the most likely dramatic force shaping the marketer’s destiny?
a. technological
environment
b. natural
environment
c. legal-political
environment
d. deregulation

61. New
technologies create new opportunities and new _____.
a. products
b. services
c. markets
d. means
of financing purchases
62. This
country leads the world in research and development spending. This aids marketers in developing new
products for market segments.
a. England
b. Germany
c. Brazil
d. United
States
63. Marketers
are aware of laws, government agencies, and pressure groups that influence or
limit various organizations and individuals in a given society. We call this the _____ environment.
a. social-legal
b. legal-cultural
c. political
d. legal-technological

64. Even
the most liberal advocates of free-market economies agree that the system works
best with _____.
a. medium
regulation
b. maximum
regulation
c. occasional
regulation
d. at
least some regulation

65. As
marketing manager for Laser Industries, you should be aware that legislation
affecting business around the world will continue to _____.
a. exist
b. increase
c. remain
steady
d. decrease
66. Business
legislation has been created for three basic reasons: to protect companies from
each other, to protect consumers, and to _____.
a. protect
the interests of society
b. regulate
prices
c. increase
world trade
d. regulate
monopolies

67. The
reason business regulation exists to protect the interests of society is to
limit _____.
a. businesses
from harming each other
b. unfair
business practices
c. unrestrained
business behavior
d. monopolistic
competition

68. International
marketers will encounter the most business legislation in what country?
a. Canada
b. Russia
c. China
d. United
States
69. Marketers
will encounter legislation to regulate business activity in the United States
at which of these levels?
a. local
and state
b. national
c. international
d. all
of the above

70. The
recent rash of business scandals and increased concerns about the environment
have created fresh interest in the issues of _____ and _____.
a. ethics;
promotion responsibility
b. ethics;
social responsibility
c. finances;
employee discrimination
d. management
ethics; insider trading

71. The
primary concern with the boom in e-commerce and Internet marketing is _____.
a. pornography
b. ripoffs
c. privacy
d. ethics
;

72. A
society’s basic values, perceptions, preferences, and behaviors are found in
its _____ environment.
a. social
b. cultural
c. social-cultural
d. cultural-economic

73. Marketers
must understand that a society’s core beliefs and values have a high degree of
_____.
a. persistence
b. rigidity
c. similarity
d. ethnocentrism
74. Your
company is making negotiations to enter basic markets in Lower Albania. You have discovered that _____ beliefs and
values are more open to change in this country.
a. simple
b. secondary
c. primary
d. core
75. The
Yankelovich model maintains that the decade drives for the 2000s will come
primarily from the _____ and the _____.
a. echo
boomers; baby boomers
b. generation
Xers; generation Yers
c. baby
boomers; generation Xers
d. none
of the above
76. During
the 2000s, baby boomers will be driven by all of the following except one.
a. adventure
b. smarts
c. intergenerational
support
d. retreating

77. During
the 2000s, gen Xers will be driven by which of the following factors?
a. redefining
the good life
b. new
rituals
c. cutting
and pasting
d. all
of the above
78. As
contrasted with the “me” society during the 1980s, the new consumers are
adopting more _____ behaviors and ambitions.
a. family
b. conservative
c. liberal
d. middle-of-the
road

79. Studies
suggest a bright future for products and services that serve _____ needs and
provide real _____.
a. emotional;
excitement
b. basic;
wants
c. basic;
value
d. existing;
value
80. Marketers
have noticed a shift away from the “me” society to the “_____” society.
a. them
b. we
c. new
d. future
81. Today’s
employees tend to be less loyal to and more _____ of employers.
a. trustful
b. respectful
c. ashamed
d. distrustful
82. Since
September 11, many marketers have taken advantage of increased _____ in
Americans.
a. loyalty
b. patriotism
c. distrust
d. foreign
intolerance

83. People’s
orientation to their society influences their attitudes toward the marketplace
and their consumption _____.
a. desires
b. needs
c. patterns
d. wants
84. Marketers
have observed from research that consumers are involved in more camping,
hiking, boating, fishing, and other outdoor activities because of their _____.
a. love
of nature
b. awareness
of nature
c. need
for exercise
d. none
of the above
85. Consumers’
love of nature has led to a $25 billion industry supplying _____ and _____
products to a growing market.
a. natural;
low-priced
b. organic;
healthy
c. natural;
organic
d. organic;
weight-loss

86. Some
experts explain that Americans are concerned with the meaning of life and issues
of the soul and spirit and are on a _____ journey that marketers need to
envision.
a. religious
b. philosophical
c. eternal
d. spiritual

87. Individuals
are bringing their spiritual awareness to the _____ they buy.
a. products
b. styles
c. brands
d. benefits
88. Marketers
can take _____ by taking aggressive action to affect the publics and forces in
their marketing environments.
a. an
environmental perspective
b. an
environmental management perspective
c. a
natural perspective
d. a
natural management perspective
89. Firms
that take an environmental management perspective will hire ____ to influence
legislation affecting their industries to their advantage.
a. mediators
b. lobbyists
c. negotiators
d. (politicians

True – False

90. Baby
boomers comprise the most commercially influential demographic group in history.
(True

91. The
yearning caused by “millennial fever” is a greater desire for advanced
electronic technology.
;
92. Today’s
marketers must be good at customer relationship management and partner
relationship management in order to connect effectively with customers, others
in the company, and external partners.
;
93. When
your marketing manager, Suzie Kwan, discussed factors and forces outside
marketing that affect marketing management’s ability to build and maintain
successful relationships with target customers, you knew that she was talking
about the external marketing concept.

94. Boz
Foster, owner of the 21-store chain of Boz Cycles, explained to the store
managers at a recent sales meeting that marketers, more than any other group in
the company, must be the trend trackers and opportunity seekers. You believe this to be a true statement.
95. The
microenvironment consists of the larger societal forces that affect the
microenvironment, such as demographic, economic, political, and cultural.
96. The
macroenvironment consists of the factors close to the company that affect its
ability to service its customers, such as suppliers, customer markets,
competitors, and publics.

97. Your
accounting department must measure revenues and costs to help the marketing
department know how well it is achieving its objectives.
98. Trudie
Jones works for a firm that is a distribution channel member that helps the
company find customers or make sales to them.
Trudie works for a reseller.

99. Marketing
research firms, advertising agencies, media firms, and marketing consulting
firms are referred to as marketing services agencies.
As an employee of Bonkers
Enterprises, you market wild and crazy games for teens to play at parties. You work in the business market.

100. Today’s
marketers recognize the importance of working with their intermediaries as
channels through which they sell their products rather than as mere partners.
101. No
single competitive marketing strategy is best for all companies.
;

102. Consumer
organizations such as environmental and minority groups may question a
company’s marketing decisions. This type
of public is called the local public.(
103. The
reason the demographic environment is of major interest to marketers is because
it involves people, and people make up markets.
(If the world were reduced to a village of 1,000 people, the
cross-representative sample would include 52 North Americans, 64 people who
would speak Spanish, and 329 Christians, and half would be immunized against
infections.

104. The
single most important demographic trend in the United States that marketers
should understand is the changing family structure.

105. It is
important to note that as baby boomers reach their peak earning and spending
years, they become markets for high-ticket items.

106. Gen
Yers buy a lot of products including cosmetics, cars, fast food, sweaters,
boots, electronics, mountain bikes, and computers.

107. By
the year 2010, the Gen Xers will take over the baby boomers as a primary market
for almost every product category.

108. Marketers
must increasingly consider the special needs of nontraditional households
because they are now growing more rapidly than traditional households.
109. A
reason that chain stores and franchise restaurants have done well in the United
States is because the 21 percent of the population that is mobile can buy
familiar products wherever they go.
110. The
American workforce today is better educated and more white collar.
111. We
can learn from the advertising and promotion campaigns of most large companies
that emphasizing community and family is important.
112. Companies
in several industries are now waking up to the needs and potential of the gay
and lesbian segment.
113. The
gay and lesbian market represents 54 million people and almost $1 trillion in
annual spending power. It is larger than
African Americans or Hispanics.(
114. Marketers
realize there is some, though limited, opportunity in this economy that
consumes most of their own agricultural and industrial output. It is called a third world country.
115. The
marketing department at U.S. FoodStores just released a report that most
household income is used up in purchasing food, housing, and transportation.
116. The
significant trends in the natural environment include shortages of raw
materials, increased pollution, and decreased government intervention.
117. Significant
reasons for business legislation to be enacted include protecting the interests
of society, protecting consumers, and protecting companies from each other.
118. The
difference in the cultural environment between core values/beliefs and
secondary ones is that the former are more open to change.
119. When
firms take aggressive action to affect the publics and forces in their
marketing environment, they are taking an environmental management perspective.

Essay

120. Provide
an overview of what marketers will face during the new millennium.

121. Who
are the major players in a company’s microenvironment?

122. What
goes into a company’s macroenvironment?
123. Describe
important factors in the marketing environment.

.

124. Differentiate
between the basic marketing intermediaries.

125. Distinguish
among the five types of customer markets.

126. What
can marketers learn from demography?

127. Who
are the five major submarkets in the United States? What is the major significance of the
markets?

128. What
steps is the government taking to regulate the political environment?