Chapter 3 PDF

Preview

Summary

practice test for marketing...

Description

Marketing: An Introduction, 13e (Armstrong) Chapter 3 Analyzing the Marketing Environment 1) Which of the following is part of the microenvironment of a firm's marketing environment? A) the political state of the country in which the firm exists B) the cultural forces that exist in a society C) the suppliers who work with the company D) the technological resources available to the company E) the different demographic trends in the market Answer: C Diff: 2 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. 2) Demographic, economic, natural, technological, political, and cultural forces form the ________ of an organization. A) supply chain B) macroenvironment C) marketing intermediary network D) internal environment E) microenvironment Answer: B Diff: 1 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. 3) The responsibility for setting a company's mission, objectives, broad strategies, and policies primarily lies with its ________. A) finance department B) research department C) top management D) marketing managers E) human resource managers Answer: C Diff: 1 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers.

1 Copyright © 2017 Pearson Education, Inc.

4) Which of the following is part of the microenvironment of a company's marketing environment? A) a just-in-time inventory system used by the company when making purchase decisions B) a set of laws that require the company to scale down its telemarketing calls to customers C) a changing demographic picture that requires the firm to make product adaptations D) a new technology that would ensure significant cost-cutting if implemented in the firm E) a set of environmental sustainability laws that significantly impact the company's production processes Answer: A Diff: 2 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. AACSB: Analytical thinking 5) American Honda purchases over $20 billion worth of auto parts and materials every year. ________ are key players in the company's success. A) Wholesalers B) Suppliers C) Physical distribution firms D) Media firms E) Retailers Answer: B Diff: 2 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. AACSB: Analytical thinking 6) ________ are distribution channel firms that help a company find customers or make sales to them. A) Resellers B) Suppliers C) Producers D) Logistics firms E) Credit companies Answer: A Diff: 1 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers.

2 Copyright © 2017 Pearson Education, Inc.

7) Which of the following has the primary function of helping a company target and promote its products to the right markets? A) Marketing services agencies B) Resale marketers C) Service providers D) Physical distribution firms E) Credit companies Answer: A Diff: 1 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. 8) A marketing intermediary would most likely help a firm by ________. A) negotiating with labor unions regarding wages, hours, and benefits B) providing technical expertise on the production and design of goods C) competing directly with the firm in a certain product category D) supplying the raw materials needed for manufacturing the firm's products E) moving the firm's goods from production points to distribution centers Answer: E Diff: 2 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. 9) Which of the following is most likely a financial public? A) community organization B) minority group C) corporate attorney D) stockholder E) newspaper Answer: D Diff: 2 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. 10) A consumer advocacy group challenges a firm's decision to build a new warehouse in a small community. The advocacy group is an example of a ________ public. A) financial B) government C) media D) local E) citizen-action Answer: E Diff: 2 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers.

3 Copyright © 2017 Pearson Education, Inc.

11) Monfax Corporation insures manufacturers, distributors, and consumers against the loss or damage of goods during transportation after a purchase or sale. In this case, Monfax is an example of a ________. A) wholesaler B) retailer C) financial intermediary D) physical distribution firm E) marketing service agency Answer: C Diff: 3 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. AACSB: Analytical thinking 12) Which of the following is an example of a media public? A) community organization B) minority group C) television station D) banking institution E) federal government Answer: C Diff: 2 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. 13) Kelstone Developers is planning to build a new shopping mall that would require the partial acquisition of a nearby public park. Walking Green, an environmental group, challenges the plan citing environmental destruction. In response to the demands of Walking Green, Kelstone Developers promises to build a huge park-like walkway around the mall. Walking Green is an example of a(n) ________ in this scenario. A) financial public B) government public C) citizen-action public D) internal public E) media public Answer: C Diff: 2 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. AACSB: Analytical thinking

4 Copyright © 2017 Pearson Education, Inc.

14) Volunteers belong to a company's ________ publics. A) general B) local C) citizen-action D) media E) internal Answer: E Diff: 1 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. 15) The town of Genter recently witnessed a devastating hurricane that crippled the town's infrastructure. Q-Mart, a retail chain that plans to open a new retail store in Genter, organizes a program to help the people of Genter. The program consists of providing free meals to those who lost their dwellings in the hurricane. What section of the marketing microenvironment is Q-Mart most likely trying to reach? A) suppliers B) marketing intermediaries C) local publics D) competitors E) employees Answer: C Diff: 2 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. AACSB: Analytical thinking; Ethical understanding and reasoning 16) The citizen-action publics in a company's marketing environment include ________. A) employees and managers of the company B) stockholders and investment analysts C) government trade agencies D) environmental groups E) news channels Answer: D Diff: 1 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers.

5 Copyright © 2017 Pearson Education, Inc.

17) Which of the following is an example of a local public? A) a community organization that addresses welfare issues in its neighborhood B) a supplier responsible for sourcing most of the raw materials used in production C) a company director who is working to improve the organization's public image D) a bank that helps a company acquire loans E) a federal regulatory agency that monitors business practices Answer: A Diff: 2 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. 18) Which of the following are examples of internal publics of a company? A) newspapers, magazines, television stations, blogs, and other Internet media B) governmental departments and agencies that regulate businesses C) neighborhood residents and community organizations D) the managers, board of directors, and workers of the company E) the general public that is directly affected by the company Answer: D Diff: 1 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. 19) According to the text, ________ are the most important actors in a company's microenvironment. A) stockholders B) employees C) suppliers D) resellers E) customers Answer: E Diff: 1 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. 20) ________ markets consist of individuals and households that buy goods and services for personal use. A) Consumer B) Business C) Government D) Wholesaler E) Retailer Answer: A Diff: 1 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers.

6 Copyright © 2017 Pearson Education, Inc.

21) Which of the following is most likely categorized as a business market? A) government agencies that buy goods and services to produce public services B) individuals who buy goods and services for personal consumption C) firms that buy goods and services for further processing D) firms that buy goods and services to resell for profit E) retail outlets that buy goods and services to sell at discounted prices Answer: C Diff: 2 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. 22) Reseller markets consist of ________. A) government agencies that buy goods and services to produce public services B) individuals who buy goods and services for personal consumption C) firms that buy goods and services to assemble overseas D) firms that buy goods and services to sell at a profit E) firms that buy goods and services for further processing Answer: D Diff: 2 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. 23) Dextora Technologies manufactures microprocessors and caters exclusively to private manufacturers that produce high-end computers. Which type of market does Dextora directly target? A) retail market B) government market C) consumer market D) business market E) reseller market Answer: D Diff: 2 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. AACSB: Analytical thinking

7 Copyright © 2017 Pearson Education, Inc.

24) JJ Distributors Ltd. buys electronic products from manufacturers for wholesale and sells them to various retail outlets. To which of the following markets does JJ Distributors Ltd. directly cater? A) business markets B) reseller markets C) manufacturer markets D) supplier markets E) consumer markets Answer: B Diff: 2 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. AACSB: Analytical thinking 25) Walmart's microenvironment includes suppliers. Answer: TRUE Diff: 1 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. 26) Marketing intermediaries supply resources needed by a company to produce its goods and services. Answer: FALSE Diff: 1 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. 27) The Office Depot Foundation serves its financial publics through a variety of programs. Answer: FALSE Diff: 2 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. 28) A customer buys a can of Pepsi from a Walmart store. In this scenario, Walmart is a supplier in Pepsi's value delivery network. Answer: FALSE Diff: 2 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. 29) Advertising agencies that help a company target a certain section of customers are marketing intermediaries. Answer: TRUE Diff: 1 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. 8 Copyright © 2017 Pearson Education, Inc.

30) A bank that helps a company finance transactions is both a financial intermediary and a financial public. Answer: TRUE Diff: 2 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. 31) The most important actors in a company's microenvironment are its competitors. Answer: FALSE Diff: 1 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. 32) What are marketing intermediaries? What are the different types of marketing intermediaries? Answer: Marketing intermediaries help the company promote, sell, and distribute its products to final buyers. They include resellers, physical distribution firms, marketing services agencies, and financial intermediaries. Resellers are distribution channel firms that help the company find customers or make sales to them. These include wholesalers and retailers that buy and resell merchandise. Physical distribution firms help the company stock and move goods from their points of origin to their destinations. Marketing services agencies are the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the firm target and promote its products to the right markets. Financial intermediaries include 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. Marketing intermediaries form an important component of the company's overall value delivery network. In its quest to create satisfying customer relationships, the company must do more than just optimize its own performance. It must partner effectively with marketing intermediaries to optimize the performance of the entire system. Diff: 2 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers.

9 Copyright © 2017 Pearson Education, Inc.

33) Markwin Electronics is a company that only sells products online. Orders are taken through an interactive Web site, and goods are shipped out through a small warehouse the company owns. Markwin employees also handle the shipment of goods to desired destinations. How could marketing intermediaries help Markwin expand its business? Answer: (Students' answers may vary. The answer given below is indicative.) Marketing intermediaries help the company promote, sell, and distribute its products to final buyers. Marketing intermediaries already have channels ready that are directly connected to customers. Thus by utilizing intermediaries, Markwin can tap into a much bigger source of sales. Intermediaries include resellers, physical distribution firms, marketing services agencies, and financial intermediaries. These include wholesalers and retailers who buy and resell merchandise. Physical distribution firms can help Markwin stock and move goods from their points of origin to their destinations. Marketing services agencies are the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the company target and promote its products to the right markets. Financial intermediaries include banks, credit companies, insurance companies, and other businesses that can help finance transactions for Markwin, or insure against the risks associated with the buying and selling of goods. Marketing intermediaries can form an important component of the company's overall value delivery network. Markwin's marketers must recognize the importance of working with their intermediaries as partners rather than simply as channels through which they sell their products. Diff: 3 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers. AACSB: Analytical thinking; Information technology 34) How do the different types of publics influence a company's marketing environment? Answer: A public is any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives. Financial publics: This group influences the company's ability to obtain funds. Banks, investment analysts, and stockholders are the major financial publics. Media publics: This group carries news, features, editorial opinions, and other content. It includes newspapers, magazines, television stations, and blogs and other social media. Government publics: Management must take government developments into account. Marketers must often consult the company's lawyers on issues of product safety, truth in advertising, and other matters. Citizen-action publics: A company's marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, and others. Its public relations department can help it stay in touch with consumer and citizen groups. Local publics: This group includes neighborhood residents and community organizations. Large companies usually create departments and programs that deal with local community issues and provide community support. General public: A company needs to be concerned about the general public's attitude toward its products and activities. The public's image of the company affects its buying behavior. Internal publics: This group includes workers, managers, volunteers, and the board of directors. Diff: 2 LO: 3-1: Describe the environmental forces that affect the company's ability to serve its customers.

10 Copyright © 2017 Pearson Education, Inc.

35) ________ is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics. A) Sociobiology B) Demography C) Behavioral ecology D) Environmental studies E) Political science Answer: B Diff: 1 LO: 3-2: Explain how changes in the demographic and economic environments affect marketing decisions. 36) Which of the following generational groups account for a third of the U.S. population but half of all consumer spending? A) Millennial B) Generation X C) Generation Z D) baby boomer E) Lost Generation Answer: D Diff: 1 LO: 3-2: Explain how changes in the demographic and economic environments affect marketing decisions. 37) Which of the following is most likely a true statement about baby boomers? A) They are the first generation to have grown up with computers. B) They constitute the largest demographic group in the United States. C) They were born between 1965 and 1976. D) They are the most educated generation of Americans. E) They are the wealthiest generation in U.S. history. Answer: E Diff: 2 LO: 3-2: Explain how changes in the demographic and economic environments affect marketing decisions. 38) To which of the following generational groups do zoomers belong? A) Millennial B) Generation X C) Generation Z D) Lost Generation E) baby boomer Answer: E Diff: 1 LO: 3-2: Explain how changes in the demographic and economic environments affect marketing decisions.

11 Copyright © 2017 Pearson Education, Inc.

39) Which generational group is characterized as the most educated and the least materialistic? A) baby boomer B) Generation X C) Millennial D) Generation Z E) Lost Generation Answer: B Diff: 2 LO: 3-2: Explain how changes in the demographic and economic environments affect marketing decisions. 40) Secure is a financial services and insurance company. The company's most profitable division is one that sells the Secure Future Plan. The Secure Future Plan targets customers who are entering retirement and want long-term savings so they can remain financially independent in the later years of their life. The marketing team at Secure has most likely targeted the plan at ________. A) Millennials B) baby boomers C) Generation Xers D) Generation Zers E) the Lost Generation Answer: B Diff: 3 LO: 3-2: Explain how changes in the demographic and economic environments affect marketing decisions. AACSB: Analytical thinking 41) Which of the following is most likely a characteristic of Generation Xers? A) They were the first group to grow up in the Internet era. B) They comprise a considerably larger population than the baby boomers. C) They prefer quantity over quality of products. D) They are the least educated generation to date. E) They are generally unreceptive to ad pitches that make fun of tradition. Answer: A Diff: 2 LO: 3-2: Explain how changes in the demographic and economic environments affect marketin...