Mark 3321 Chap 4 – Flashcards
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A(n) _____ is a defined group that managers feel is most likely to buy a firm's product.
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target market
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Which of the following statements best describes the typical target market?
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Target markets change over time as consumers drop in or out of the market, and as tastes change.
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Colorific recently began competing with Crayola coloring products. At the beginning of the school year, the _____ for Colorific products consists of back-to-school shoppers.
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target market
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The publisher of Ebony magazine has forged an alliance with Dan River, Inc. to create luxury bed and bath products for the newly developed Ebony Home brand. Ebony Home will use the publisher's long history and expertise to market to the African American market. The African American market is the _____ for the Ebony Home brand.
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target market
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The external environment _____.
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*must be continually monitored by marketing managers
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The external environment is a strong influence on a target market and can provide _____ for the marketing manager.
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*opportunities and threats
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All of the following are factors in the external environment affecting marketing EXCEPT:
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*marketing mix
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Susan is the director of marketing for a company that sells recreational vehicles and is developing a marketing plan to cover the next five years of business. Which of the following is an uncontrollable factor Susan must consider in her plan?
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economic factors
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Marketing managers cannot control _____, but they can sometimes influence it.
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*the external environment
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When a company engages in _____, it is implementing strategies that attempt to shape the external environment in which it operate
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environmental management
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The Michigan State Legislature tried to pass a bill requiring concert promoters and venue operators to print parental warnings on tickets and advertisements for concerts and shows by performers whose recordings had content advisory labels. Promoters and venue operators prevented the passage of this bill, arguing that it would require them to make value judgments for which they were ill-equipped. The promoters and operators engaged in_____.
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environmental management
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_____ factors are environmental factors that include our attitudes, values, and lifestyles.
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*Social
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Which of the following is the most difficult for marketing managers to forecast, influence, or integrate into marketing plans?
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*social factors
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Many people in the United States choose to drink light beer because they value thin and fit bodies. In Europe, light beers have had little success because flavor is valued more highly. For international beer manufacturers, this difference illustrates how _____ influence(s) marketing.
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*social factors
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In Asia, Procter & Gamble (P&G) discovered that consumers like to experiment with different brands of shampoos and shy away from the family-size bottles so popular with Americans. Now it sells single-use sachets of shampoo in Asia. P&G responded to _____ factors when it changed its Asian packaging.
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*social
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Shark fin soup is a favorite Thai food. When a San Francisco-based organization claimed that the leading producer's soup contained mercury poison, its sales plummeted. The popularity of this soup in Thailand represents a(n) _____ factor while Thailand's lax enforcement of environmental protection and consumer protection regulations are a(n) _____ factor.
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social; political and legal
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. Consumers' concern for health issues affects the way food is marketed. For example, marketers must now list the number of grams of transfat on a product's nutrition label because it has recently come to light that this type of fat is harmful. Consumers' concern for health issues is a(n) _____ factor.
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*social
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Quaker Oats and other cereal manufacturers have developed what they call "breakfast-with-one-hand" products—no-mess breakfast bars and drinks that can be consumed while commuting. The popularity of on-the-go food is largely the result of changes in _____ factors.
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*social
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What do self-sufficiency, upward mobility, work ethic, and conformity have in common?
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*These are three of the core values that influence lifestyles in the United States
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A(n) _____ is the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle.
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*component lifestyle
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Lance is a 30-year old, single professional who enjoys hiking, college sports, and poetry. He lives with his girlfriend but does not have plans to get married in the near future. He leads a life much different from his father who married right after high school, had children, and worked for the same company his entire career. More and more in the U.S., consumers like Lance are enjoying _____, piecing together a variety of interests, products, and services instead of conforming to traditional stereotypes
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*component lifestyles
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Kendra teaches high school science. She is also a wine expert, a PTA president, and an accomplished sculptor. Her other interests include scrapbooking, gourmet cooking, and NASCAR. Marketers would categorize Kendra as _____.
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*having a component lifestyle
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If you were to ask Americans what they most desire to make their lives easier, most will want more time. This feeling that there are not enough hours in a day is an example of a(n) _____ factor that has strongly influenced the marketing environment.
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*social
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Lee Siracca owns two horses, brews his own beer, participates in the civic arts commission, enjoys talk radio, hikes on wilderness trails, and competes in rodeos. All of these diverse needs and interests influence his choices of the goods and services he buys. Lee has a_____.
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*component lifestyle
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The growth of dual-income families has resulted in:
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increased purchasing power
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Which of the following events has had the greatest effect on marketing?
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the increasing number of working women
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The study of people's vital statistics, such as their ages, births, deaths, and locations, is called:
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*demography
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Zimmer Centralpulse is the world's largest producer of replacement hips and knees for orthopedic surgery. It is particularly interested in marketing in the southwestern United States, where a large aging population lives. Which external environmental element most directly explains its continued growth?
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*demography
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Which of the following is NOT a demographic characteristic of a population?
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values
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Riot Media is a media and toy company that capitalizes on the "gross-out" humor that boys ages 8 through 14 greatly enjoy. In other words, it targets _____.
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*tweens
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Girls between the ages of 8 and 14 are one of the growing markets for high-end shoe manufacturers. These girls want styles that are both youthful and grown-up looking. They are _____.
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*tweens
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Which of the following statements about Generation Y is true?
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*It is over three times as large as Generation X.
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_____ are strongly attached to technology, tend to be skeptical consumers, and demand the latest fashion trends in record time.
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*Generation Yers
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Consumers born between 1965 and 1978 form a group called _____.
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*Generation X
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Merissa Champlain designs and sells clothes for young working women. Her marketing managers recently told her that she'll be in financial trouble unless she starts designing clothes suited to Gen Yers. Why is this?
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*Demographically, Gen Yers are an extremely large group of consumers
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You are a marketing consultant for a firm that wants to target members of Generation X. Based on your knowledge of this demographic group, your advice to this firm would be to _____.
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*emphasize the importance of their children's education
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The group of people in the United States who were born between 1946 and 1964 are known as:
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*baby boomers
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Which of the following represents the largest group of consumers in the United States?
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*baby boomers
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All of the following are segments into which baby boomers have been subdivided into EXCEPT?
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*"age-defying" boomers
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Which of the following statements characterizes the growing ethnic markets in the United States today?
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All of the statements characterize the demographic transition in the United States today
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The majority of Hispanic Americans are of _____ descent
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Mexican
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Which ethnic group has the highest average family income?
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Asian Americans
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Which of the following is the largest Asian American segment?
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Chinese
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A multicultural society is characterized by:
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even distribution of all ethnic groups in a geographic region
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Consider a small southern town where almost half the residents are African Americans and the rest whites. Nearly all of the residents can trace their ancestors' arrivals in the community back at least four generations. This town is an example of a:
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multicultural society
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A company that specializes in planning and organizing large family reunions has hired you to identify 25 geographic target markets that are also examples of multicultural societies. What types of locations should you offer this firm?
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locations in which all major ethnic groups in the area are roughly equally represented
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Interest rates, inflation, and consumer income that influence the marketing environment are called _____ factors
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*economic
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After-tax income is referred to as:
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*disposable income
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China's new 5 percent tax on disposable wooden chopsticks, reflecting concerns about deforestation, has been praised by environmentalists. The move is hitting hard at the Japanese who consume 25 billion sets of wooden chopsticks annually. Almost all of the chopsticks used in Japan come from China. The price of wooden chopsticks in Japan has increased by almost 50 percent. The price increase influences which factor of the external environment of restaurant owners in Japan?
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*economic
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Four dollar a gallon gasoline was unimaginable when mechanical gas pumps first appeared in the United States in the 1930s. Their spinning dials cannot register sales beyond $99.99, which will not fill up many SUVs. The pumps can be modernized for about $650, but the company that provides this service has a huge backlog. This is an example of how _____ factors affect small convenience stores and service stations.
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*economic and technological
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_____ is measured by comparing the relative cost of a standard of goods and services in different geographic areas.
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*Purchasing power
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The higher your _____, the higher your purchasing power:
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*disposable income
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All of the following are taken into account in a cost of living index EXCEPT:
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income
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_____ is measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year
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*Inflation
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A period of economic activity characterized by negative growth, which reduces demand for goods and services, is called:
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*recession
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The main product for Zamperla Industries is gondola cars for amusement park rides and ski lifts. Its marketing department constantly monitors trends in the external environment that might affect the firm. Which economic factor may pose a major threat to this company?
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*a recession
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Shabby Chic fashion boutique has responded to economic trends by placing an emphasis on improving the quality of merchandise it offers, improving customer service, and reducing its cost of goods sold because consumers are not shopping as much as they used to due to lower purchasing power. Shabby Chic is apparently dealing with which level of economic activity?
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*recession
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All of the following are appropriate tactics for marketers to use during a time of economic recession EXCEPT:
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*increase price
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Blogs created by consumers can be used to assess customer attitudes toward new products as well as customer perceptions of new products. Marketers' ability to search for key words used in the blogs is an example of a change in the _____ factor of the external environment.
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technological
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In the future, electrical power may come from quantum nucleonics, a form of nuclear power that produces no residual radiation. The ability to use this form of power will require equipment adaptations, but it will solve the world's need for clean and efficient power. When quantum nucleonics is developed, it will be an example of how _____ factors can affect an organization.
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technological
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Commercial truck drivers have really suffered financially as a result of increasing diesel fuel. As they look for ways to make their trucks perform more efficiently, manufacturers have created truck body designs that are more aerodynamically sound. This is an example of how _____ factors can help during recessionary periods.
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technological
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The two types of research are:
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basic and applied
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Which type of research is also called pure research and attempts to expand the frontiers of knowledge but is not aimed at a specific, pragmatic problem?
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basic
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Juan is a marketing professor researching consumer decision-making processes. Specifically, he is examining if including a picture in a print advertisement is more effective than not including a picture in influencing readers' attitude toward the advertisement and brand advertised. He is not researching any specific brand, but rather he is interested in testing Dual Coding theory that predicts that pictures will have a more positive impact on attitudes. Juan is conducting _____ research.
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basic
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Which type of research attempts to develop new or improved products?
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applied
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A marketing researcher is conducting a focus group interview with a group of working mothers to learn how Kraft can better meet their needs for convenience foods. What type of research does this represent?
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applied
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Which of the following was ranked as the world's most innovative company?
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Apple
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Almost any product in India, from tap water to milk, has traces of toxins due to the overuse and misuse of insecticides by Indian farmers, but the government expects multinational corporations (MNCs) operating in India to produce food that is toxin-free. In this way both _____ factors influence the operating environment for foreign firms
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legal and technological
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Laws and regulations of various governments and their ongoing development and change are an example of _____ factors that are part of all organizations' external environment.
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political and legal
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When Universal Studios Japan opened, health inspectors discovered the theme park had piped industrial use water not suitable for drinking into its drinking fountains. The problem was unanticipated and costly to repair. This is primarily an example of how _____ factors can cause a business to incur unexpected costs
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political and legal
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Every night Universal Studios Japan hosts a fireworks display. The theme park recently came under government investigation when allegations were made that the park was detonating more than 50 pounds of explosives in its nightly fireworks displays. In the small nation, the use of explosives is stringently controlled. This is an example of how _____ factors can influence a business.
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legal and political
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One of the results of the Americans with Disabilities Act is an increase in the numbers of disabled travelers. Publications like Emerging Horizons, a California-based, 25,000-circulation magazine focus on accessible travel, and businesses, such as Mobility Challenged Vacations Ltd., see that disabled tourists are a growing market. One can argue the increase in tourism by the disabled was due to:
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legal forces that changed the attractiveness of vacation options
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China's new 5 percent tax on disposable wooden chopsticks, reflecting concerns about deforestation, has been praised by environmentalists. The move is hitting hard at the Japanese who consume 25 billion sets of wooden chopsticks annually. Almost all of the chopsticks used in Japan come from China. The requirement for Chinese manufacturers of wooden chopsticks to pay the 5 percent tax is a _____ factor in their external environment
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legal
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The _____ Act strengthened the Clayton Act to prevent corporate acquisitions that reduce competition.
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Robinson-Patman
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A cold medicine manufacturer offers a promotion allowance to retailers for setting up displays featuring its products. Retailers are also offered promotional allowances on purchases of the products. Which legislation requires the manufacturer to make these promotion allowances available to all retailers on a proportionately equal basis?
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Robinson-Patman Act
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_____ is a governmental body that has the power to prescribe mandatory safety standards for almost all products consumers use
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*Consumer Product Safety Commission
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Alex purchased a battery-operated drill, and the first time he used the drill, the battery pack overheated and exploded. After Alex's trip to the emergency room, it was determined that the explosion was due to a problem with how the drill was manufactured. Alex would like to lodge a complaint about the poor quality of the drill's construction. To which federal agency should he complain?
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*Consumer Product Safety Commission
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The _____ is an agency that prevents the use of unfair methods of competition in commerce.
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*Federal Trade Commission
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Many people drink bottled water today, but one national brand of bottled water was not "spring-fresh" as advertised. The water actually came from a well located in the middle of an industrial warehouse facility and next to a industrial waste site. To which organization should the consumers who thought the advertising for the bottled water was misleading complain?
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*Federal Trade Commission
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The _____ is the federal government agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous products of a specific type.
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*Food and Drug Administration
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All of the following are powers of the Federal Trade Commission EXCEPT:
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corporal punishment
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When the Federal Trade Commission (FTC) issues a final directive to a firm to stop engaging in an activity the FTC considers illegal, this directive is a(n):
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cease-and-desist order
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The Federal Trade Commission (FTC) accused Campbell Soup of deceptive advertising because the soup company's advertising showed bowls of soup that appeared to be full of meat, vegetables, and noodles. The appearance of the soup was altered by the placing of glass marbles in the bottom of the bowl, which caused the ingredients to rise to the top of the bowl. The FTC would have issued a(n) _____ to make Campbell stop running the deceptive ad.
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cease-and-desist order
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Sometimes the Federal Trade Commission (FTC) will require an advertiser to include in its advertisements additional information about the products being promoted. This is to clarify past statements the FTC believes were misleading or unfairly presented to consumers. This practice is called:
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corrective advertising
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When the Federal Trade Commission (FTC) uses the term "restitution," it means:
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refunds must be made to consumers who were misled by deceptive advertising
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The Gramm-Leach-Bliley Act is an important law designed to:
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protect consumers from identity theft
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When Miriam went to the specialist, she was asked to sign several official forms that the receptionist handed her so that her primary care doctor could be given the results of her medical examination. The law that requires her permission for the physician's office to hand out personal information about her is the result of legislation determined to
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protect consumers from identity theft
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The number of firms a company must face, the relative size of these firms, and the degree of interdependence within the industry are all part of its _____ environment.
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*competitive
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Frito-Lay is considered the king of the salty snack industry with its distribution network of 42 plants, 12,800 delivery people, and more than 900 tractor trailers formed into a retail delivery powerhouse. Smaller manufacturers of salty snacks find that monitoring the activities of Frito-Lay is an effective way to monitor the _____ factors within their external environments.
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*competitive
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Abetta, Royal King, Kincade, EquiRoyal, and Amadeus are all manufacturers and marketers of Western-style saddles for horses. Thus, the manufacturers are _____ factors in each other's external environments.
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*competitive
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When many consumers think of adhesives, they think of 3M because it makes so many kinds of adhesives used in the home. However, the world's largest adhesive producer is Henkel Consumer Adhesive, maker of Loctite and Duct tape. 3M and Henkel are part of each other's _____ environment.
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*competitive
