marketing

InstructionsChoose your answers from a-d by clicking the radio button next to each choice and then press 'Submit' to get your score.

Question 1

Which of the following is NOT part of the external marketing environment?

a) Political

b) Legal

c) Product

d) Socio-cultural

Question 2

Car (automobile) designers world-wide began working on plans for a dual energy car when:

a) They realized that such a vehicle was not only feasible, but inexpensive

b) The legal tolerance for noxious emissions from automobiles began to be reduced

c) Noise pollution regulations began to be passed that would outlaw the internal

combustion engine d) Sweden passed a law that said all new vehicles had to have a provision for pedal-

power

Question 3

A firm has decided to alter its pricing and promotional strategies in response to slower than expected job growth and declining personal incomes. The firm is responding to changes in its:

a) Socio-cultural environment

b) Political environment

c) Economic environment

d) Competitive environment

Question 4

Robert is a marketer for a global consumer products company. He is working on the promotional campaign designed to reach a target audience in a new international market. Robert is working hard to make sure that the promotional campaign is clearly understood

by the nation's consumers and doesn't offend anyone. Which of the factors in the external environment is he being influenced by?

a) Socio-cultural environment

b) Competitive environment

c) Economic environment

d) Legal environment

Question 5

The process of collecting information about the external marketing environment is

a) Environmental management

b) Environmental scanning

c) Marketing management

d) Marketing research

Question 6

The five dimensions usually considered to constitute the environment of marketing include all of the following except:

a) Political considerations

b) Global factors

c) Competitive aspects

d) Economics issues

Question 7

Marketing decision makers in a firm must constantly monitor competitors' activities-their products, prices, distribution, and promotional efforts-because

a) The competitors may be violating the law and can be reported to the authorities

b) The actions of competitors may threaten the monopoly position of the firm in its

industry c) The actions of competitors may create an oligopoly within an industry

d) New product offerings by a competitor with the resulting competitive variations may

require adjustments to one or more components of the firm's marketing mix

Question 8

When looking at consumer income, marketers are most interested in

a) Discretionary income

b) Deferred income

c) Inflationary income

d) Disposable income

Question 9

New technology results in new goods and services, and it also can

a) Lower the quality of existing products

b) Lower the available level of customer service

c) Reduce prices through new production and distribution methods

d) Bring back products that were considered obsolete

Question 10

Toyota's Prius and Honda's hybrid Civic are examples of technological products inspired by:

a) Style considerations in the Japanese automobile industry

b) Social pressure to develop more fuel-efficient vehicles with fewer dangerous

emissions c) The desire of many engineers to simply make interesting products

d) The realization that Japanese people didn't need large, high-speed cars

Question 11

_____ is the collection and interpretation of information about forces, events, and relationships that may affect the organization.

a) Environmental scanning

b) Stakeholder analysis

c) Market sampling

d) Opportunity analysis

Question 12

Assume you are in charge of the politically-mandated process of converting the economy of a developing African nation from state-controlled to market-driven business ventures. Your ability to control _____ will most likely determine the future success of the country and its government.

a) The culture

b) Marketing

c) Technology

d) Competitive environment

Question 13

Marketing managers cannot control ____, but they can at times influence it.

a) Where advertising is placed

b) The sales force

c) The external environment

d) How products are priced

Question 14

As technology continues to offer more different methods for shopping on the Internet, manufacturers and traditional retailers are finding themselves in direct competition with each other. In this case, unless marketing managers understand _____, manufacturers and retailers cannot intelligently plan for the future.

a) Their competitors' strategies

b) The economic conditions which influence the growth of technology

c) Changing social attitudes towards technology

d) All of these

Question 15

The external environment

a) Can be controlled in much the same manner as the internal marketing mix

b) Does not change over time

c) Does not have an impact on Fortune 500 companies

d) Must be continually monitored by marketing managers

Question 16

The differentiation of a firm’s products or services to promote environmental responsibility is referred to as:

a) Social branding

b) Eco-branding

c) Me-too branding

d) Brand personality

Question 17

Which of the following elements is NOT part of Porter’s 5-forces model for industry competitiveness?

a) Threat of substitutes

b) Threat of suppliers

c) Power of buyers

d) Threat from government players

Question 18

A market with which of the following characteristics would generally be less competitive?

a) High barriers to entry

b) Lots of potential substitutes exist

c) Strong bargaining power among buyers

d) Strong bargaining power among suppliers

Question 19

To evaluate an organization’s Strategic Business Units (SBU), the Boston Consulting Group developed a portfolio performance framework that characterizes some of the SBUs as:

a) Question marks

b) Quick winners

c) Charging bulls

d) Cash outs

Question 20

The quadrant of the Boston Consulting Group (BCG) matrix that represents both a high market share and a high rate of market growth includes the:

a) Cash cows

b) Achievers

c) Stars

d) Strivers

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Chapter 02

Results

You have answered 17.0 out of 20.0. questions correctly.

Your percentage score is 85.00%.

Question 1

Which of the following is NOT part of the external marketing environment?

Your Answer:

c) Product

Feedback:

In order to make sense of the external environment we use a framework known as PESTLE. This is by far the easiest and one of the most popular frameworks with which to examine the external environment. This technique was formerly referred to as PEST analysis but the recent rise in concern and awareness attached to ecological and climatic issues has impacted on most organizations. PESTLE therefore stands for the Political, Economic, Social, Technological, Legal, and Ecological environments.Page reference: 51

Question 2

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Car (automobile) designers world-wide began working on plans for a dual energy car when:

Your Answer:

b) The legal tolerance for noxious emissions from automobiles began to be reduced

Feedback:

Here we can see how the legal environment has influenced new product development in the automobile industry. The legal environment covers every aspect of an organization's business. Laws and regulation are enacted in most countries ranging from the transparency of pricing, the prevention of restrictive trade practices, minimum wages and business taxes, product safety, good practice in packaging and labelling, the abuse of a dominant market position, to codes of practice in advertising, to take just a small selection. As such it is very important to marketers to have an understanding of the implications the law and changes in the law can have on marketing activities. Page reference: 59

Question 3

A firm has decided to alter its pricing and promotional strategies in response to slower than expected job growth and declining personal incomes. The firm is responding to changes in its:

Your Answer:

c) Economic environment

Feedback:

The firm is responding to changes in the economic environment. Companies and organizations have to develop an understanding of the economic environment in which they operate and trade. This is not least because a country's economic circumstances have an impact on what economists term factor prices within a particular industry for a particular firm or organization. These factors could include raw material, labour, building and other capital costs, or indeed any other input to a business.Page reference: 53

Question 4

Robert is a marketer for a global consumer products company. He is working on the promotional campaign designed to reach a target audience in a new international market. Robert is working hard to make sure that the promotional campaign is clearly understood by the nation's consumers and doesn't offend anyone. Which of the factors in the external environment is he being influenced by?

Your Answer:

a) Socio-cultural environment

Feedback:

Robert is influenced by the country's socio-cultural environment. Lifestyles are constantly changing and consumers are constantly shifting their preferences over time. Companies that fail to recognize changes in the socio-cultural environment, and change their goods/service mix accordingly, typically fail.Page reference: 55

Question 5

The process of collecting information about the external marketing environment is

Your Answer:

b) Environmental scanning

Feedback:

In order to understand how the elements in the external environment are changing it is necessary for organizations to put in place methods and processes to inform them of developments. A key process is environmental scanning. According to Aguilar (1967), environmental scanning is the process of gathering information about a company's external events and relationships, in order to assist top management in its decision making, and so develop its future course of action. Page reference: 69

Question 6

The five dimensions usually considered to constitute the environment of marketing include all of the following except:

Your Answer:

b) Global factors

Feedback:

The marketing environment is best understood by considering the degree to which an organization can influence the various forces acting on it. The external environment, for example, consists of the political, social, and technological influences, and organizations have relatively little influence on each of these. The performance environment consists of the competitors, suppliers, and indirect service providers who shape the way an organization achieves its objectives. Here, organizations have a much stronger level of influence. The internal environment concerns the resources, processes, and polices an organization manages in order that it can attempt to achieve its goals.Page reference: 50

Question 7

Marketing decision makers in a firm must constantly monitor competitors' activities-their products, prices, distribution, and promotional efforts-because

Your Answer:

d) New product offerings by a competitor with the resulting competitive variations may require adjustments to one or more components of the firm's marketing mix

Feedback:

Competitors are part of an organisations performance environment and can directly influence the success of our marketing activities. Hence is it imperative to constantly monitor competitor's activities to ensure we have differential advantages in our operations. Page reference: 72-77

Question 8

When looking at consumer income, marketers are most interested in

Your Answer:

d) Disposable income

Correct Answer:

a) Discretionary income

Feedback:

A consumer's discretionary income is part of the economic environment and can influence how much money a consumer has to spend on goods and services. As such organisations have to develop an understanding of the economic environment in which they operate and trade.Page reference: 53

Question 9

New technology results in new goods and services, and it also can

Your Answer:

c) Reduce prices through new production and distribution methods

Feedback:

The emergence of new technologies can substantially affect not only high-technology businesses but non-technology businesses. Examples include those aspects of technology which impact upon productivity and business efficiency in new product development and distribution (e.g. changes in energy, transportation, information, and communication technologies). Page reference: 57

Question 10

Toyota's Prius and Honda's hybrid Civic are examples of technological products inspired by:

Your Answer:

b) Social pressure to develop more fuel-efficient vehicles with fewer dangerous emissions

Feedback:

Increasingly, consumers are worried about the impact of organisations on their ecological environments. They are demanding products that are more ecologically friendly, which incorporates the principles of better welfare for the animals, society and the environment.Page reference: 65

Question 11

_____ is the collection and interpretation of information about forces, events, and relationships that may affect the organization.

Your Answer:

a) Environmental scanning

Feedback:

In order to understand how the elements in the external environment are changing it is necessary for organizations to put in place methods and processes to inform them of developments. A key process is environmental scanning. According to Aguilar (1967), environmental scanning is the process of gathering information about a company's external events and relationships, in order to assist top management in its decision making, and so develop its future course of action.Page reference: 69

Question 12

Assume you are in charge of the politically-mandated process of converting the economy of a developing African nation from state-controlled to market-driven business ventures. Your ability to control _____ will most likely determine the future success of the country and its government.

Your Answer:

d) Competitive environment

Correct Answer:

b) Marketing

Feedback:

Marketing is concerned with managing controllable variables (the marketing mix) within an uncontrollable environment. Because there has been a politically mandated process of economic change from state-controlled to market-driven, marketing issues would be of paramount concern.Page reference: 50 and 53

Question 13

Marketing managers cannot control ____, but they can at times influence it.

Your Answer:

c) The external environment

Feedback:

The external environment is basically uncontrollable, but the other four answers are part of the marketing mix.Page reference: 51

Question 14

As technology continues to offer more different methods for shopping on the Internet, manufacturers and traditional retailers are finding themselves in direct competition with each other. In this case, unless marketing managers understand _____, manufacturers and retailers cannot intelligently plan for the future.

Your Answer:

c) Changing social attitudes towards technology

Correct Answer:

d) All of these

Feedback:

By understanding all elements of the marketing environment to considering the degree to which an organization can influence the various forces acting on it. The external environment, for example, consists of the political, social, and technological influences, and organizations have relatively little influence on each of these. The performance environment consists of the competitors, suppliers, and indirect service providers who shape the way an organization achieves its objectives. Here, organizations have a much stronger level of influence. The internal environment concerns the resources, processes, and polices an organization manages in order that it can attempt to achieve its goals.Page reference: 50

Question 15

The external environment

Your Answer:

d) Must be continually monitored by marketing managers

Feedback:

In order to understand how the elements in the external environment are changing it is necessary for organizations to put in place methods and processes to monitor trends in the external environment. A key process is environmental scanning. According to Aguilar (1967), environmental scanning is the process of gathering information about a company's external events and relationships, in order to assist top management in its decision making, and so develop its future course of action.Page reference: 69

Question 16

The differentiation of a firm’s products or services to promote environmental responsibility is referred to as:

Your Answer:

b) Eco-branding

Feedback:

This is eco-branding. This is the differentiation of a firm’s products or services to promote environmental responsibility. Examples include Duchy Originals, the British Prince of Wales’ food brand, the Thai King Bhumipol’s Golden Place brand, or the Toyota Prius labelled as ‘mean but green’. Another example is BP—formerly British Petroleum—who changed their logo to make it green and yellow in a flower petal and sun synthesis, which they call the Helios, and slogan to ‘beyond petroleum’ to reflect their intended shift in meeting the world’s energy requirements to more sustainable sources.Page reference: 66

Question 17

Which of the following elements is NOT part of Porter’s 5-forces model for industry competitiveness?

Your Answer:

d) Threat from government players

Feedback:

Porter suggests that competition in an industry is a composite of five main competitive forces. These are the level of threat that new competitors will enter the market, the threat posed by substitute products, and the bargaining power of both buyers and suppliers. These in turn affect the fifth force, the intensity of rivalry between the current competitors. Porter called these variables the Five Forces of Competitive Industry Analysis.Page reference:73

Question 18

A market with which of the following characteristics would generally be less competitive?

Your Answer:

a) High barriers to entry

Feedback:

Porter suggests that competition in an industry is a composite of five main competitive forces. These are the level of

threat that new competitors will enter the market, the threat posed by substitute products, and the bargaining power of both buyers and suppliers. These in turn affect the fifth force, the intensity of rivalry between the current competitors. Porter called these variables the Five Forces of Competitive Industry Analysis.Page reference: 73

Question 19

To evaluate an organization’s Strategic Business Units (SBU), the Boston Consulting Group developed a portfolio performance framework that characterizes some of the SBUs as:

Your Answer:

a) Question marks

Feedback:

One of the popular methods for assessing the variety of businesses/products that an organization has involves the creation of a two-dimensional graphical picture of the comparative strategic positions. This technique is referred to as a product portfolio or portfolio matrix. The Boston Consulting Group (BCG) was developed.In the BCG matrix Question marks (also known as ‘problem children’) are products that exist in growing markets but have low market share. As a result there is negative cash flow and they are unprofitable.Page reference: 79

Question 20

The quadrant of the Boston Consulting Group (BCG) matrix that represents both a high market share and a high rate of market growth includes the:

Your Answer:

c) Stars

Feedback:

One of the popular methods for assessing the variety of businesses/products that an organization has involves the creation of a two-dimensional graphical picture of the comparative strategic positions. This technique is referred to as a product portfolio or portfolio matrix. In the Boston Consulting Group (BCG) matrix, stars are most probably market leaders but their high growth and market share has to be financed through fairly heavy levels of investment.Page reference: 79

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