MKT 304 Ch 3 – Flashcards
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Which of the following correctly lists actors in a company's microenviornment
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Competitors, marketing intermediaries, suppliers, and publics
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Forces in a company's macroenvironment that shape opportunities and pose threats to the company include what?
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Demographic, economic, natural, technological, political/social, and cultural forces
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What is the single most important demographic trend in the U.S. today?
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The changing age structure of the U.S. population is the most important demographic trend today.
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In addition to income levels, marketers need to pay attention to ______, which has created a tiered market.
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income distribution levels
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Which of the following is an important trend in the natural environment of which marketers should be aware?
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Shortages of raw materials
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According to the text, __________ are perhaps the most dramatic forces affecting today's marketing strategies.
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Technological advances
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Which of the following is a reason for business legislation?
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To protect consumers from unfair business practices
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People's views of themselves, others, organizations, and nature are part of which macroenvironmental force?
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Cultural forces
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What advice would you give a firm about how to respond to the changing marketing environment?
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Whenever possible, take a proactive approach to the environment
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Firms that develop strategies to change the environment - instead of assuming that strategic options are bounded by the current environment - are being __________.
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Proactive
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_______ are the 49 million people born between 1965 and 1976 in the "birth dearth" following the baby boom.
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Generation X
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The _______ empowers the FTC to establish limits on quantity discounts, forbid some brokerage allowances, and prohibit promotional allowances except when made available on proportionately equal terms.
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Robinson-Patman Act
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_______ are the 83 million children of the baby boomers born between 1977 and 2000.
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Generation Y
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The _______ is the laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society.
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Political environment
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The __________ authorizes the FTC to determine rules and regulations for consumer warranties and provides consumer access to redress, such as the class action suit.
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Magnuson-Moss Warranty Act
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The __________ prohibits certain types of price discrimination, exclusive dealing, and tying clauses (which require a dealer to take additional products in a seller's line).
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Clayton Act
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Companies who hire lobbyists to influence legislation affecting their industries are said to be taking __________ action to affect the publics and forces in their marketing environment.
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Aggressive
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The _______ is any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives.
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public
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The __________ is the physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities.
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Natural Environment
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The __________ forbids the manufacture or sale of adulterated or fraudulently labeled foods and drugs
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Federal Food and Drug Act
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The Lanham Trademark Act __________
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Protects and regulates distinctive brand names and trademarks
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The _______ monitors and remedies unfair trade methods
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Federal Trade Commission Act
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The __________ is the actors close to the company that affect its ability to serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and public.
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Microenviornment
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The __________ is the larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces.
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Macroenviornment
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The economic environment is ________.
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Economic factors that affect purchasing power and spending patterns.
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The Sherman Antitrust Act ______.
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Prohibits monopolies and activities (price-fixing, predatory pricing) that restrain trade or competition in interstate commerce
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The __________ is the forces that create new technologies, creating new product and market opportunities.
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Technological Environment
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The __________ is the larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces.
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Macroenvironment
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The __________ is the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers.
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Marketing Environment
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The __________ is the actors close to the company that affect its ability to serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and public.
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Microenvironment
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The microenvironment of a company's market environment includes all of the following except
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Technological Forces
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Companies that are successful in appealing to different generational needs and wants are successful in reacting to which macroenvironmental force?
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Demographical
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Companies such as Walmart and Target, who focus on lower prices and greater value, are most likely reacting to which of the following environmental forces?
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Economic
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Kodak and Blockbuster each failed to react to the ___________ environmental force, causing them to lose considerable market share and go out of business.
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Technological
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The environmental force that includes laws and regulations set forth to make trade and marketing practices fair is the__________ force
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Political
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The ________ bans the sale of hazardous toys and articles.
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Child Protection Act of 1966
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Which of the following legislative acts gives the FTC jurisdiction over the advertising of food and drugs?
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The Wheeler-Lea Act
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Several years ago, Microsoft was being investigated for monopolizing the market. Which legislation prohibits such activities that restrain competition?
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The Sherman Antitrust Act
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In the Subaru America video, the product manager references the need to be well informed regarding numerous aspects of the company's __________________, including long-term shifts in politics, culture, and technology.
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Microenvironment
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During the economic recovery of the mid-1990s, consumers' automotive tastes shifted toward a preference for larger SUVs. Subaru responded to this market trend by introducing the Outback, a crossover vehicle that appealed to those who were looking for the recreational capabilities of a SUV but wanted something that drove more like a car. Subaru's responsiveness to its customer market reflects its attention to the ___________ element of the company's marketing environment.
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Microenvironment
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During the past few decades, concern for the ________________ has spawned an environmental sustainability movement among consumers that fits very well with Subaru's "green" positioning of its vehicle line.
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Natural Environment
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Global sales of new vehicles fell by as much as 40% during the Great Recession in 2008-2009. This fact best reflects the impact of which dimension of Subaru's marketing environment?
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Economic Environment
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The role of a company's marketing intermediaries is to do which of the following?
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Help the company find, promote, sell, and distribute products
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The demographic, economic, natural, technological, political, and cultural forces that affect a company's ability to serve its customers make up which of the following?
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Macroenvironment
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Noah's Sporting Goods is having difficulty attaining the credit it needs to expand. What should the company do in order to alleviate its financial situation?
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Work out a plan with its financial intermediaries
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Dylan Parker owns 27 acres on a farmstead in Iowa. Recently, as he was plowing a field, he came across a rich silver vein in the ground. Realizing his bounty, he decided to open a new business selling silver. Not knowing much about the marketingenvironment, he asks you what he should do. Which of the following is the BEST advice?
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Dylan should focus on the business market and sell the raw silver for further processing.
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The group of economic factors that affect consumers' purchasing power and spending patterns is called ________.
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The economic environment
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Numbering 49 million or more, this group of consumers is sometimes overlooked because it is less materialistic than other groups and prizes experience, not acquisition.
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Generation X
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Roper's Radical Racers is an upscale company that sells cars primarily to racecar drivers and movie producers. In the past, Roper's Radical Racers marketed itself to the fun-loving driver—the driver who wanted to "race with life." However, in the current economy, Roper's has changed its slogan to "superior speed, superior savings." Roper's Radical Racers is engaging in which of the following?
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Value marketing
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Overall, how has the American population changed over time?
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It has become more diverse, better educated, and more mobile
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From a marketing standpoint, which of the following BEST describes Baby Boomers?
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They tend to research products before they consider a purchase.
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Wonders such as robotic surgery, miniaturized electronics, and antibiotics can be attributed to which marketing environment?
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Technological
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Tina's Tunes is a music store that has been selling CDs for 20 years. Throughout the last six years, sales have continuously declined and profits have almost completely disappeared. The CEO of Tina's Tunes believes resurgence is likely to happen soon and wants to continue business as usual. What is likely to happen to Tina's Tunes?
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Tina's Tunes is likely to fail because it is ignoring the technological environment.
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Which of the following identifies a change in the technological environment that could affect the success of a business?
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A company develops a new battery that costs twice as much as its predecessor.
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Which of the following BEST describes a duty that would fall under the jurisdiction of the FDA?
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Checking the quality of food that is served in school lunches
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The purpose of business legislation is primarily based on ________.
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Protection
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The major cultural values of a society are expressed by _________.
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people's views of themselves and others, as well as their views of organizations, society, nature, and the universe
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A wedding services company changes its marketing strategy to reflect the fact that more LGBT(lesbian/gay/bisexual/transgender) marriages are taking place. The company is offering a broader range of ceremonies that cater to this market. Which of the following environments must this wedding company analyze?
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Cultural
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To exercise their social responsibility, many companies are linking themselves to what type of marketing?
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Cause-related
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The Fair Packaging and Labeling Act in the United States enforces laws for what reason?
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To protect consumers from fraudulent packaging and labeling
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The Children's Online Privacy Protection Act in the United States enforces laws for what reason?
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Prohibits online service operators from collecting personal information from children
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Chicago's Best Pizzeria has been operating on the north side of Chicago for over 30 years. Its target market includes young, urban professionals who want new style, organic pizzas with exotic ingredients. However, in recent years, the population in the pizzeria's neighborhood has been shifting and fewer young, urban professionals live there. The population has grown older and wants traditional pizza, not pizza with exotic ingredients. Which of the following identifies the pizzeria's BEST response to this situation?
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Target a new market with a different product.
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Beverly's Burgers came under fire recently when allegations were made that its veggie burgers were actually made with beef. To counter the claims, the restaurant called in a company to test not only its veggie burgers but also the rest of its vegetarian options to prove they lacked meat. The results were displayed publicly on the restaurant's Facebook page. What BEST describes Beverly's Burgers response to the allegations?
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Proactive
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To be successful, why should companies try to adopt a proactive stance on marketing?
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A proactive stance allows a company to influence the market in its favor.
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Proactive businesses often take aggressive actions to affect consumers and the forces in their marketing environments. Which of the following does NOT depict a proactive company?
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Sophie's Soups refusing to counter false allegations of rat feces in its soups
