Problems
Content
CHAPTER 4 THE MARKETING ENVIRONMENT
MULTIPLE CHOICE QUESTIONS
1. “________ fever” results from the convergence of a wide range of forces in the marketing environment—from technological, economic, and demographic d emographic forces to cultural, social, and political ones. a. Marketing b. Cultural c. echnographic d. Millennial Answer: (d) Dii!"#$%: (&) P'e: *
!. he ______________________ consists of the actors and forces outside marketing that affect marketing management"s abilit# to develop and maintain successful
relationships its target customers. a. marketing with organi$ation b. marketing s#stem c. marketing network d. marketing environment
Answer: (d) Dii!"#$%: (+) P'e: ,
%. &hich of the following terms best describes the the environment that includes the for forces ces close to the compan# that affect its abilit# to serve its customers—the compan#, suppliers, marketing channel firms, customer markets, competitors, and publics' a. microenvironment b. macroenvironment
c. global environment d. networked environment
Answer: (') Dii!"#$%: (&) P'e: ,
(.
)ll of the following following would be considered to be in a compan#"s microenvironment *+C*a. marketing marketing channel firms. b. political forces. c. publics. d. customer markets.
Answer: (-) Dii!"#$%: (&) P'e: ,
/. &hich of the following 0* 0* describes the environment that contai contains ns the larger societal forces that affect the compan#2level environment—demographic, economic, econo mic, natural, technological, political, and cultural forces' a. microenvironment b. macroenvironment c. global environment d. networked environment Answer: (-) Dii!"#$%: Di i!"#$%: (&) P'e: ,. ,. &+. /i"re 404
.
)ll of the following following would be considered to be a part of a compan#"s macroenvironment *+C*a. demographic forces. b. marketing marketing channel forces. c. technological forces. d. natural forces.
Answer: (-) Dii!"#$%: Di i!"#$%: () P'e: ,. ,. &+. /i"re 404
3. 4inance, 4inance, research research and development development,, purchasing, purchasing, and manufact manufacturing uring are are all activitie activitiess that are a part of which element of the microenvironment' a. the compan#"s internal environment b. the suppliers. c. the marketing channel firms d. the publics Answer: (') Dii!"#$%: Dii!" #$%: () P'e: 1. /i"re 40
5.
__________ management sets the compan#"s mission, mission, ob6ectives, broad strategies, strategies, and policies. a. op b. Mid2level
c. d. Marketing actical
Answer: (') Dii!"#$%: () P'e: 1
7. ________________ are an important link link in the compan#"s compan#"s overall “value deliver# deliver# s#stem” since the# provide provide the the resources resources needed b# the compan# to to produce its goods and services. a. Marketing intermediaries b. Competitor networks c. uppliers d. ervice representatives Answer: (!) Dii!"#$%: (&) P'e: 1
3
18. _________________ help the compan# to promote, promote, sell, and di distribute stribute its goods to final bu#ers. a. Marketing intermediaries b. Competitor networks c. uppliers d. ervice representatives Answer: (') Dii!"#$%: (&) P'e: &2
11. _____________ include resellers, ph#sical distribution firms, marketing services agencies, and financial intermediaries. a. Marketing intermediaries b. Competitor networks c. uppliers d. ervice representatives Answer: (') Dii!"#$%: (&) P'e: &2
1!. 4irms that help the compan# to stock and move goods from their points of origin to their destinations are called a. financial intermediaries. b. ph#sical distribution firms. c. suppliers. d. marketing marketing services agencies. Answer: (-) Dii!"#$%: (&) P'e: &2
1%. &hich of the following would be an e9ample of a marketing services agenc#' a. a warehouse b. a transportation firm c. an insurance agenc#
d. an advertising agenc#
Answer: (d) Dii!"#$%: (+) P'e: &2
1(. )ll of the following are considered to be a t#pe of customer market *+C* a a. business market. b. competitor market. c. government market. d. reseller market. Answer: (-) Dii!"#$%: Dii!" #$%: () P'e: &2. /i"re 40&
5
1/. &hich of the following would be considered a customer market' a. a business market b. a competitor market c. a geographic market d. a gender market Answer: (') Dii!"#$%: Dii!" #$%: (+) P'e: &2. /i"re 40&
1. he t#pe of customer c ustomer market that bu#s goods and services for further processing is called a a. business market. b. consumer market. c. government market. d. reseller market. Answer: (') Dii!"#$%: (&) P'e: &2
13. :f #our compan# were to make a product, such as a suit of clothes, and sell that product to a retailer, #our compan# would have sold to the ___________ market. a. reseller b. business c. government d. service Answer: (') Dii!"#$%: () P'e: &2
15. :f #our compan# were to make light bulbs to be used in photocopiers, #ou would most likel# be selling to a ________________ market. a. reseller b. business c. government d. service Answer: (-) Dii!"#$%: (&) P'e: &2
17. ) ______________ is an# group that has an actual or potential interest in or impact on an organi$ation"s abilit# to achieve its ob6ectives. a. competitive set b. marketing intermediar# c. supplier d. public Answer: (d) Dii!"#$%: (&) P'e: &
7
!8. )ll of the following are significant publics that affect an organi$ation"s abilit# to achieve its ob6ectives *+C* a. charitable publics. b. financial publics. c. media publics. d. citi$en citi$en action publics. Answer: (') Dii!"#$%: (+) P'e: P' e: &. & . &&. /i"re 40+
!1. _____________ publics include workers, managers, volunteers, and the board of directors of an organi$ation. a. ;eneral b. 4inancial c. :nternal d. <ocal Answer: (!) Dii!"#$%: (&) P'e: &&
!!. he )cme Corporation is considering con sidering building a plant in the inner cit#, and will have to displace a seven block area of an old neighborhood. &hich of the following publics must be dealt with to make sure that the new construction can be successfull# accomplished with a minimum of difficult#' =Choose the most significant of the choices offered.> a. financial public b. internal public c. media public d. local public Answer: (d) Dii!"#$%: (&) P'e: &&
!%. )ll of the following are among the ma6or forces considered to be in a compan#"s macroenvironment *+C*
a. b. c. d.
demographic forces. natural forces. technological forces. competitor forces.
Answer: (d) Dii!"#$%: Di i!"#$%: (&) P'e: &&. & &. &+. /i"re 404
!(. he stud# of human populations in terms of si$e, densit#, location, age, gender, race, occupation, and other statistics is called a. geotherm#. b. demograph#. c. ethnograph#. d. hemos2popograph#.
38
Answer: (-) Dii!"#$%: () P'e: &&
!/. )ll of the following are areas that marketers in the ?nited tates track within the demographic conte9t *+C* a. package design changes. b. changing age structures. c. geographic population shifts. d. the changing )merican famil#. Answer: (') Dii!"#$%: () P'e: &&. &+
!. he single most important demographic trend in the ?nited tates is a. the geographic shift in population. b. the changing )merican famil#. c. the changing age structure of the ?.. population. d. the better2educated and more white2collar workforce. Answer: (!) Dii!"#$%: (+) P'e: &+
!3. )ccording to the latest research b# American b# American Demographics done in @ctober !888, 0ab# 0oomers 0oomers account for which of the following percentages of the total ?.. population' a. 1.( percent b. !/.5 percent c. !5.! percent d. %3.! percent Answer: (!) Dii!"#$%: Dii!"# $%: (+) P'e: &+. /i"re 403 !5. here was a ma6or increase in the annual birthrate in the ?nited tates following &orld &ar ::. his increase lasted until the 178s. he people born during this time period were called
a. b. c. d.
birth dearth. bab# busters. ;eneration +. bab# boomers.
Answer: (d) Dii!"#$%: () P'e: &4
!7. )ll of the following would be among the lucrative markets that appeal to the bab# boomer market *+C*- =Choose the least likel#.> a. financial services. b. travel travel and entertainment. c. computers. d. high2priced cars.
31
Answer: (!) Dii!"#$%: (&) P'e: &3
%8. )uthor Aouglas Coupland called the generation that followed the bab# boomers ___________ because the# lie in the shadow of the boomers, and lack obvious distinguishing characteristics. a. ;eneration B b. ;eneration + c. ;eneration A d. Buppies Answer: (-) Dii!"#$%: (&) P'e: &3
%1. ;eneration +ers are given that name because a. the# hate police and all forms of authorit#. b. the# lie in the shadow of the boomers and lack obvious distinguishing characteristics. c. the# are #uppies and dinks. d. the# believe in Malcolm + as a hero figure. Answer: (-) Dii!"#$%: (&) P'e: &3
%!. &hich of the following generations was once labeled the M generation' a. 0ab# boomers b. ;eneration + c. ;eneration B d. ;eneration A Answer: (-) Dii!"#$%: (&) P'e: &3
%%. )nother name for ;eneration B is the a. M generation. b. &ar babies.
c. hadow generation. d. *cho boomers.
Answer: (d) Dii!"#$%: (+) P'e: & %(. &hich of the following generations has grown up with the :nternet, mobile communications, and video games' a. 0ab# boomers b. ;eneration + c. ;eneration B d. ;eneration & Answer: (!) Dii!"#$%: (&) P'e: &*
3!
%/. he increase in working women, people marr#ing later and having fewer children, and the number of nonfamil# households increasing coincides with which of the following trends' a. the changing age structure of the population b. the changing )merican famil# c. increasing diversit# d. a better2educated and more white2collar population Answer: (-) Dii!"#$%: () P'e: &*
%. _____________ areas are small cities located be#ond congested areas found in larger cites. he# offer man# lifest#le advantages for toda#"s urban commuter. a. Metropolitan b. elecommute c. Micropolitan d. @D@ Answer: (!) Dii!"#$%: (&) P'e: &,
%3. he ?.. population is becoming better educated. )s an e9ample, in !888, ________ of the population had completed high school and ! percent had completed co mpleted college. a. 5( percent b. 3/ percent c. 78 percent d. 7 percent Answer: (') Dii!"#$%: (+) P'e: &1
%5. Marketers are facing increasingl# increasingl# diverse markets, both at hom homee and abroad. he _________ market has been ignored in in the past, despite despite the fact that with with /( million people in this market, it is larger than the )frican )merican )merican or Dispanic markets.
a. b. c. d.
ga# and lesbian :ndiaEakistan disabilities infant
Answer: (!) Dii!"#$%: (+) P'e: +0++. M'r5e$in '$ 67r5 +&
%7. 4actors that affect consumer purchasing power and spending patterns make up the ______________ environment. a. demographic b. economic c. natural d. technological
3%
Answer: (-) Dii!"#$%: () P'e: +
(8. Marketers pa# close attention to income distribution as well as average income. &hich of the following following groups usuall# must stick close to the basics of food, clothing, and shelter, and must tr# hard to save' a. the comfortable middle class b. the working class c. the upper2class d. the under2class Answer: (-) Dii!"#$%: (&) P'e: +4
(1. )ccording to *ngel"s 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. Answer: (!) Dii!"#$%: (+) P'e: +4
(!. )ccording to *ngle"s laws, as income rises a. the percentage spent on food declines. b. the percentage spent on housing increases. c. the percentage spent on other categories decreases. d. the percentage spent on savings remains constant. Answer: (') Dii!"#$%: (&) P'e: +4
(%. Concern that resources such as forests and food be used wisel# is an outgrowth of which trend in the natural environment' a. the shortage of raw materials b. the rapid pace of technological change
c. the increased cost of energ# d. incr increa ease sed d po poll llut utio ion n
Answer: (') Dii!"#$%: () P'e: +
((. %M runs a ollution revention a#s program that has led to a substantial reduction in pollution and costs. his would be an e9ample of responding to which of the following' a. Fader"s raiders b. the the “green movement” c. governmental regulation d. international competition Answer: (-) Dii!"#$%: (&) P'e: +*
3(
(/. )ccording to the te9t, the most dramatic of the environments that affects marketing and shapes our world toda# is the ________________ environment. a. natural b. demographic c. economic d. technological Answer: (d) Dii!"#$%: (&) P'e: +*
(. &hich of the following countries leads the world in research and development spending' a. Gapan b. ;erman# c. ?nited tates d. *ngland Answer: (!) Dii!"#$%: () P'e: +,
(3. he set of laws and regulations that guides commerce and that limits business for the good of societ# as a whole is called a. public polic#. b. consumer protection. c. public interest group action. d. social responsibilit#. Answer: (') Dii!"#$%: (&) P'e: +,
(5. he ____________________ prohibits monopolies and activities =such as price fi9ing and predator# pricing> which restrain trade or competition in interstate commerce. a. herman )ntitrust )ct =1578> b. Cla#ton Cla#ton )ct =171(>
c. 4ederal 4ed eral rade Commission )ct =171(> d. Hobinson2atman Hobinson2atman )ct =17%>
Answer: (') Dii!"#$%: Dii!" #$%: (&) P'e: +1. T'-#e 40&
(7. he __________________ supplements the herman )ct b# prohibiting certain t#pes of price discrimination, e9clusive dealing, and t#ing clauses =which reIuire a dealer to take additional products in a seller"s line>. a. 4ederal 4ood and Arug )ct =178> b. Cla#ton Cla#ton )ct =171(> c. 4ederal 4ed eral rade Commission )ct =171(> d. Hobinson2atman Hobinson2atman )ct =17%> Answer: (-) Dii!"#$%: Dii!" #$%: (&) P'e: +1. T'-#e 40&
3/
/8. he ___________________ amends the Cla#ton )ct to define price discrimination as unlawful. :t empowers the 4C to establish limits on Iuantit# discounts, forbid some brokerage allowances, and prohibit promotional allowances e9cept when made available on proportionatel# eIual terms. a. herman )ntitrust )ct =1578> b. 4ederal 4ood and Arug )ct =178> c. 4ederal 4ed eral rade Commission )ct =171(> d. Hobinson2atman Hobinson2atman )ct =17%> Answer: (d) Dii!"#$%: Dii!" #$%: (+) P'e: +1. T'-#e 40&
/1. <aws that prevent companies from neutrali$ing competition reflect which reason for the e9istence of legislation affecting business' a. to protect companies from each other b. to protect consumers from unfair business practices c. to protect the interests of societ# d. to protect businesses from unfair consumer demands Answer: (') Dii!"#$%: (&) P'e: 42
/!. <aws that reIuire truth in advertising and prohibit deceptive packaging reflect which reason for government legislation of business' a. to protect companies from each other b. to protect consumers from unfair business practices c. to protect the interests of societ# d. to protect businesses from unfair consumer demands Answer: (-) Dii!"#$%: (&) P'e: 42
/%. Hegulations that arise to ensure that firms take responsibilit# for the social costs of their 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 practices c. to protect the interests of societ# d. to protect businesses from unfair consumer demands
Answer: (!) Dii!"#$%: (&) P'e: 42
/(. *nlightened companies encourage their managers to a. look be#ond what the regulation s#stem allows and simpl# “do the right thing.” b. alwa#s measure bottom line profit against social gain. c. look to the regulation s#stem as a benchmark that should not be e9ceeded. d. to embrace the polic# of caveat emptor =let =let the bu#er beware>.
3
Answer: (') Dii!"#$%: (&) P'e: 4
//. he _________________ environment contains institutions and other forces that affect societ#"s basic values, perceptions, preferences, and behaviors. a. natural b. business c. cultural d. consumer Answer: (!) Dii!"#$%: () P'e: 4
/. ______________ beliefs and values are passed on from parents to children and are reinforced b# schools, churches, business, and government. a. Crucial b. Core c. rimar# d. econdar# Answer: (-) Dii!"#$%: (&) P'e: 4
/3. ______________ beliefs and values are open to some degree of change. a. Crucial b. Core c. rimar# d. econdar# Answer: (d) Dii!"#$%: () P'e: 4
/5. 0elieving that #ou should dress the wa# #our favorite musical group dresses would be an illustration of which t#pe of belief or value' a. crucial b. core
c. primar# d. secondar#
Answer: (d) Dii!"#$%: (+) P'e: 4
/7. Most )mericans believe in being honest. his would be an e9ample of which of the following t#pes of beliefs or values' a. crucial b. core c. primar# d. secondar# Answer: (-) Dii!"#$%: (&) P'e: 4. 4+
33
8. )ccording to the Bankelovich Monitor report, all of the following would be among the ma6or consumer themes as we head into the !888s *+C* a. parado9. b. group above all else. c. trust not. d. no sacrifices. Answer: (-) Dii!"#$%: (+) P'e: 44
1. hat people use products, brands, and services as a means of self2e9pression reflects which aspect of the cultural environment' a. people"s view of others b. people"s view of themselves c. people"s view of organi$ations d. people"s view of nature Answer: (-) Dii!"#$%: (&) P'e: 44
!. Companies have recentl# recogni$ed that “piritualit# “piritualit# is in.” his recognition and the corresponding marketing strateg# built around it is a reflection of which of the following views' a. people"s view of others b. people"s view of themselves c. people"s peo ple"s view of the universe d. people"s view of nature Answer: (!) Dii!"#$%: (+) P'e: 43
%. ) management perspective in which the firm takes aggressive actions to affect the publics and forces in its marketing environment rather than simpl# watching and reacting to them is called a=n> a. marketing marketing management perspective.
b. global action perspective. c. environmental management perspective. d. public management perspective.
Answer: (!) Dii!"#$%: (&) P'e: 4
(. &henever possible, smart marketing managers will take a _____________ rather than ___________ approach to the marketing environment. =Choose the best combination available.> a. reactiveEproactive b. proactiveEreactive c. conciliator#Eproactive d. commandingEsubmissive
35
Answer: (-) Dii!"#$%: (&) P'e: 4. M'r5e$in '$ 67r5 404
TRUE8/ALSE QUESTIONS
/. he microenvironment is the actors and forces outside marketing that affect marketing management"s abilit# to develop and maintain successful transactions with its target customers. Answer: (/'#se) Dii!"#$%: (&) P'e: ,
. he microenvironment for most firms consists of the compan# itself, suppliers, marketing channel firms, customer markets, competitors, and publics. Answer: (Tr"e) Dii!"#$%: () P'e: ,
3. he macroenvironment for most firms consists of the compan# itself, suppliers, marketing channel firms, customer markets, competitors, and publics. Answer: (/'#se) Dii!"#$%: () P'e: ,
5. ?nder the marketing concept, top management, finance, research and development, purchasing, manufacturing, and accounting must “think consumer,” and the# should work in harmon# to provide superior customer value va lue and satisfaction. Answer: (Tr"e) Dii!"#$%: () P'e: 1
7. uppliers are firms and individuals that provide the resources needed b# the compan# to produce its goods and services. Answer: (Tr"e) Dii!"#$%: (&) P'e: 1
38. ) good illustration of a marketing intermediar# would be stock brokerage firm. Answer: (/'#se) Dii!"#$%: (&) P'e: &2
31. @ne of the important t#pes of customer markets is the reseller market. Answer: (Tr"e) Dii!"#$%: Dii!" #$%: () P'e: &2. /i"re 40&
3!. ) competitor is an# group that has an actual or potential interest in or impact on an organi$ation"s abilit# to achieve its ob6ectives. Answer: (/'#se) Dii!"#$%: (&) P'e: &
3%. )n e9ample of an internal public would be a bank, investment house, or stock broker.
37
Answer: (/'#se) Dii!"#$%: (&) P'e: &. &&
3(. &orkers, volunteers, managers, and the board of directors would be called a compan#"s internal public. Answer: (Tr"e) Dii!"#$%: () P'e: &&
3/. Culture is the stud# of human populations in terms of si$e, densit#, location, age, gender, race, occupation, and other statistics. Answer: (/'#se) Dii!"#$%: () P'e: &&
3. he single most important demographic trend in the ?nited tates is the changing racial composite of the population, as evidenced b# the growing growing number of )frican )mericans, Dispanics, and )sian )mericans. Answer: (/'#se) Dii!"#$%: (+) P'e: &+
he generation born immediatel# following &orld &ar :: was called the “bab# 33.boomers.” Answer: (Tr"e) Dii!"#$%: () P'e: &4
35. ;eneration +ers are defined as much b# their shared e9periences as b# their age. Answer: (Tr"e) Dii!"#$%: () P'e: &3
37. )n accurate description of ;eneration + would be that the# were born between 1733 and 177(. Answer: (/'#se) Dii!"#$%: () P'e: &
58. he )sian )merican population currentl# stands at 1! percent of the total population and is e9pected to pass the Dispanic )mericans b# the #ear !8(8. Answer: (/'#se) Dii!"#$%: (&) P'e: +2
51. ) disabled econom# is characteri$ed b# the fact that the# consume most of their own agricultural and industrial output. Answer: (/'#se) Dii!"#$%: () P'e: +
5!. Man# retirees retirees fall into the underclass underclass in in the ?nited tates. Answer: (Tr"e) Dii!"#$%: () P'e: +4
58
5%. ) finding that as famil# income rises, the percentage spent on food d declines eclines would be an e9ample of one of *ngel"s <aws. Answer: (Tr"e) Dii!"#$%: (&) P'e: +4
5(. :f a compan# is pursuing a globall# sustainable strateg#, it is constructing strateg# and practices in an effort to create a world econom# that the planet can support indefinitel#. Answer: (/'#se) Dii!"#$%: (&) P'e: +. +*
5/. he &heeler2<ea )ct of 17%5 makes deceptive, misleading, and unfair marketing practices illegal regardless of in6ur# to competition. competition. Answer: (Tr"e) Dii!"#$%: Dii!" #$%: (&) P'e: +1. T'-#e 40&
5. econdar# beliefs and values do not change often, are passed on from parents to children, and are reinforced b# schools, churches, business, and government. Answer: (/'#se) Dii!"#$%: (&) P'e: 4
53. Considering the eight ma6or consumer themes of the earl# !888s, “*ver#bod# should feel free free to do his or her own thing” thing” is an e9ample of the the theme of reciprocity is the way to go. go. Answer: (Tr"e) Dii!"#$%: (&) P'e: 44
55. 0ecause of trends found in people"s views of themselves, a bright future seems to be developing for products and services services that serve basic needs and provide real value rather than for those rel#ing on glit$ and h#pe. Answer: (Tr"e) Dii!"#$%: (&) P'e: 44
57. )n e9ample of a firm that has an environmental management perspective would be one that hires a lobb#ist to influence legislation affecting their industr#. Answer: (Tr"e) Dii!"#$%: (&) P'e: 4
ESSA9 QUESTIONS
78. )s we hurdle into the new millennium, social e9perts are bus# assessing the impact of a host of environmental forces on consumers and the marketers who serve them. @ne of these forces is called called “millennial fever.” Aescribe what #ou perceive to be “millennial fever,” and give at least three e9amples that would illustrate this condition.
51
Answer:
)s described in the te9t, “millennial fever” is the result of an old #ear turning into a new #ear =and even the world itself itself turning> multiplied multiplied a thousand2fold. eople seem to be overworked, overstimulated, and overloaded. overloaded. )s one authorit# authorit# put it, “)mericans are overwhelmed...b# the breathtaking onrush of the :nformation )ge, with its high2speed modems, cell phones, and pagers.” &e hail change but are also scared of it. he result of this “millennial fever” is a #earning to turn back the clock to simpler times =we wish to return to these times because we are afraid of an uncertain future>. tudents ma# use an# of the e9amples found in the opening vignette, or construct their own. he# should be given some license for creativit# unless guidelines ar aree provided. ome suggested answers could be focused on an# of the following nostalgic illustrationsa>. Jellogg has revived an old Corn 4lakes package. b>. @ld st#les of cars are being reintroduced—orsche"s 0o9er. c>. @ld songs are coming back—Games 0rown"s I 0rown"s I Feel Good . d>. olkswagen has reintroduced the 0eetle—a new 0ug for a new mill millennium. ennium. Dii!"#$%: (&) P'e: 30,
71. Aefine and then briefl# describe the component parts of the two ma6or environmental forces that affect the compan#"s abilit# to serve its customers. Answer: he first ma6or component component is the microenvironment. he microenvironment is defi defined ned as being the forces close to the compan# that affect its abilit# to serve its customers. customers. hese forces would then include the compan# itself, suppliers, marketing channel firms, customer markets, competitors, and publics.
he second ma6or component component is the m macroenvironment. acroenvironment. he macroenvironment is defined as being the larger social forces that affect tthe he microenvironment. hese forces would be the demographic, economic, natural, technological, political, and cultural forces. Dii!"#$%: (&) P'e: , 'nd 'ss7!i'$ed $e$ ;'$eri'#
7!. &hat are the components of a compan#"s internal environment' Answer: ) compan#"s internal environment consists of top management, finance, HKA, purchasing, manufacturing, and accounting. ogether all of these departments or areas have an impact on the marketing department"s plans and actions. Dii!"#$%: () P'e: 1. /i"re 40
5!
7%. <ist and briefl# characteri$e the various v arious t#pes of customer markets described in the te9t. Answer: a>. Consumer markets—consist markets—consist of individuals individuals and households that bu# goods and services for personal consumption. b>. 0usiness markets—bu# goods and services for further processing processing or for use in their production process. c>. Heseller markets—bu# markets—bu# goods and services to resell at a profit. d>. ;overnment markets—are made up of government agencies that bu# goods and services to produce public services, or transfer the goods go ods and services to others who need them. e>. :nternational markets—consist markets—consist of these bu#ers in other countries, including consumers, producers, resellers, and governments. Dii!"#$%: (&) P'e: &2. /i"re 40&
7(. <ist, give an e9ample, and then briefl# identif# the seven publics that impact an organi$ation"s abilit# to achieve its ob6ectives. Answer: a>. 4inancial publics—influence publics—influence the compan#"s compan#"s abilit# to obtain funds. *+. a bank b>. Media publics—carr# news, features, and editorial opinions. *+. newspapers c>. ;overnment publics—the various government government entities that affect the operation of the firm and its relationship with its environments. *+. product safet# regulator# agencies d>. Citi$en2action publics—a compan#"s compan#"s marketing decisions ma# be Iuestioned b# various groups within the general or national communit#. *+. environmental watchdog groups e>. <ocal publics—a compan#"s compan#"s marketing decisions ma# be Iuestioned or impacted b# various groups within the “neighborhood.” *+. neighborhood residents f>. ;eneral public—a compan# compan# needs to be concerned about the general public"s
attitude toward its products products and activities. *+. perception b# senior citi$ens citi$ens g>. :nternal publics—this group includes workers, managers, volunteers, and tthe he board of directors. *+. top management Dii!"#$%: (&) P'e: &. &&. /i"re 40+
7/. *9plain the effect of changes in the demographic and economic environments on marketing management decisions. 0e sure to identif# specific trends. Answer: Changes in the demographic environment that affect marketing decisions are the changing age structure of the ?.. population =often identified as the chief trend>, the changing )merican famil# role and structure =about one2half of all families will be nonfamil# units or single2parent families b# !888>, geographic shifts in population
5%
=primaril# moving to the unbelt>, a better educated and more white collar workforce, and increasing ethnic and racial diversit# =especiall# the rise of Dispanic and )sian )mericans>. *conomic trends include changes in income and income distribution, and changes in consumer spending patterns. )mericans are becoming becoming more conservative in in their spending patterns and are demanding value. he econom# is doing well, but tthat hat does not mean that ever#one in the econom# is doing well. hose that have retrained in high high technolog# are prospering and those that sta#ed in rust2belt manufacturing 6obs are not. o succeed in the future, education will will be critical. alue marketing will become increasingl# important for the successful marketer. Dii!"#$%: (&) P'e: &&0+ 'nd +0+*
7. Characteri$e the bab# boomers, ;eneration +, and ;eneration B. 0e specific in #our comments and characteri$ations. Answer: a>. 0ab# boomers =born between 17( and 17(> are now moving moving into middle middle age. he#
are 35 million strong. account !5 percent ofof thelife, populat population ionmarketers but one half of paid all personal income. 0ab#he# boomers cut for across all walks though have the most attention to the the upper crust of this group. he# are reaching their peak in earnings and spending. he# constitute a lucrative m market arket for new housing and home remodeling, financial services, travel and entertainment, eating out, health and fitness products, and high2priced cars and other lu9uries. b>. ;eneration + =born between 17/ and 173> lie in the shadow of the boomers and lack obvious distinguishing distinguishing characteristics. he# are defined as much b# their e9periences as b# their age. here are increasing divorce rates and unemplo#ment for this group. he# are more more c#nical and purchase all forms of products. Dowever, their c#nicism makes them more savv# savv# shoppers. he# like lower prices and a more functional look. he# have been labeled the M generation. c>. ;eneration B =born between 1733 and 177(> are are 3! million million strong. he# are the the large and growing kid market that is ver# technologicall# savv#. he# are fluent with the :nternet, computers, and digital technolog#. technolog#. he# will eventuall# rival the other two generations in spending power and earnings. Dii!"#$%: (+) P'e: &40&*
73. <ist and briefl# discuss the trends that are currentl# affecting the natural environment. Answer: a>. growing shortages of raw materials b>. increased pollution c>. increased government intervention
ome students ma# also describe a fourth implied trend-
5(
d>. a movement toward environmentall# environmentall# sustainable strategies strategies and practices practices Dii!"#$%: (&) P'e: + 'nd 'ss7!i'$ed $e$ ;'$eri'#
75. <ist and discuss the the reasons that business legislation legislation has been enacted. ;ive an illustration of each reason. Answer: he first is to protect to protect companies from each other . )lthough business business e9ecutives e9ecutives ma# ma# praise competition, the# sometimes tr# to neutrali$e it when it threatens threatens them. herefore, laws are passed to define define and prevent unfair competition. :n the ?nited tates, ssuch uch laws are enforced b# the 4ederal rade Commission and the )ntitrust Aivision of the )ttorne# ;eneral"s office.
he second purpose of government regulation is to protect to protect consumers from unfair business practices. practices. ome firms, if left alone, would make shodd# products, tell lies in advertising, and deceive consumers consumers through their packaging and pricing. ?nfair business practices have been defined and are enforced b# various agencies. he third purpose of government regulation business is to protect to protect the interests society against unrestrained business behavior . rofitable activit# does not of alwa#s create a better Iualit# of life. Hegulation arises to ensure that firm firmss take responsibilit# for the social costs of their production or products. Dii!"#$%: (+) P'e: 42
77. he Bankelovich Monitor has tracked consumer trends trends for #ears. :t has identified eight ma6or consumer themes. <ist these and briefl# briefl# comment on or give an e9ample of each. Answer: a>. arado9—people agree that “<ife is getting better and worse at the same time.”
b>. c>. d>. e>. f>. g>. h>.
rust not—confidence in man# areas drops sharpl# =doctors for e9ample>. ;o it alone—more alone—more people now rel# on themselves. marts reall# count—trust intelligence intelligence and knowing. knowing. Fo sacrifices—looks sacrifices—looks are important important but not at an# price. tress hard to beat—get lots of rest to beat stress. Heciprocit# is the wa# to go—ever#bod# should feel free to do hi hiss or her own thing. Me.!—live in a world built b# me, not b# #ou. #ou.
Dii!"#$%: (+) P'e: 4+. 44
188. Dow are the ma6or cultural values of a societ# e9pressed e9pressed'' he te9t stresses people" people"ss views in several areas. <ist and briefl# describe describe each of these “people"s views.”
5/
Answer: a>. eople"s views of themselves. themselves. eople var# in their emphasis emphasis on serving serving themselves versus serving others. b>. eople"s views of others. here seems to be a shift from a “me societ# societ#”” to a “we societ#.” c>. eople"s views of organi$ations. 0# and large, people are willing to work for organi$ations and e9pect them, in turn, to carr# out societ#"s work. d>. eople"s views of societ#. eople"s views var#, however, their their orientation to their societ# influences their consumption patterns, levels of savings, and attitudes toward the marketplace. e>. eople"s views of nature. ) long2term trend has been people"s growing master# over nature through technolog# and the belief that nature is bountiful. f>. eople"s views of the universe. here is an increasing trend towards towards spiritualit#. spiritualit#. Dii!"#$%: (+) P'e: 44. 43
APPLICATION QUESTION
181. he demographic environment en vironment is of ma6or interest to marketers because it involves people, and people make up markets. )nal#sts predict that one of the most important markets in the future will will be the female market. market. &ith more women working, assuming assuming leadership roles in business, science, and industr#, and e9ploring hori$ons that were at one time closed to them, the opportunit# to market aggressivel# to them would seem to be good. @ne avenue for doing this is on the :nternet. )ssume that #ou have 6ust been made managing director of a new &eb site developed for women. Bour site is intended intended to compete with www<iVi##'e<!7;. www<7%en<!7;. and www<w7;en<!7;. :f #ou were interested in attracting corporate sponsors to #our site, what issues would #ou feature on #our site, and what would #ou propose to make #our sit sitee uniIue' Hemember to be specific in #our suggestions and e9plain the rationale behind #our suggestions. Instructors’ Note: This uestion uestion may be assigned in advance! given as a ta"e#home assignment! or given as an interactive interactive learning pro$ect to e%plore e%plore the Internet& The instructor may alter the the directions in any way that is appropriate& Depending on the coverage of women’s issues in class! additional information may be necessary to enhance the students’ ability to successfully answer this uestion& 'uggestions for discussion follow& Answer: tudents should think carefull# about the trends described in the chapter as a means to building a &eb site. Consider the following issuesa>. the gentrification gentrification of )merica—we are becoming older b>. the slowdown in the birthrate—however, pregnanc# issues would still be important important with women
5
c>. generation specific data data for women—see 0ab# 0oomers, ;eneration +, and ;eneration B discussion d>. singleness and famil# issues—marr#ing issues—marr#ing later and having ffewer ewer children e>. working women f>. career women g>. housewives and house managers managers h>. divorce and childbearing i>. financial matters 6>. fads, fashions, and trends k>. diversit# issues l>. legal matters m>. values and morals n>. hobbies—gardening, cooking, sewing, e9ercise, et cetera )n# of the above issues could be topics that might attract attract female attention. Fote that man# of these topics are those covered on the three &eb sites mentioned in the Iuestion. he instructor should also note the number of corporate sponsors that have lined up to be a part of the aforementioned aforementioned &eb sites. Consider the student suggesti suggestions ons carefull# and remember to reIuire 6ustification for their ideas and suggestions. Dii!"#$%: (+) P'e: &&0+. +0+3
53
