Marketing Ch 3

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• 1. There were four steps in the GPS revolution. First new technologies were developed and became readily available; second, __________; third, competitive forces developed new products and services; and finally consumer changed becoming "geo-enthusiasts."

Regulatory changes were made allowing cell phone frequencies and former military technologies available for commercial use

• 2. Environmental scanning refers to

continually acquiring information on events occurring outside the organization to identify and interpret potential threats.

• 3. Which of the following statements regarding environmental scanning is the most accurate

Environmental scanning identifies and interprets potential trends.

• 4. You are the director of marketing for Littleton Hospital. You are doing an environmental scan to help create a five-year marketing plan for the hospital. Which of the following environmental trends should you consider to be the most important?

The number of baby boomers in your geographic area will increase during the next five years

• 5. The social forces of the environment include the __________ of the population and its values. Changes in these forces can have a dramatic impact on marketing strategy.

Demographic Characteristics

• 6. Environmental scanning identifies and interprets potential trends.

The description of a population according to selected characteristics such as age, gender, ethnicity, and income.

• 7. Studies of the __________ characteristics of the U.S. population suggest several important trends. Generally, the population is becoming larger, older, and more diverse. Marketers are developing products that will appeal to these target markets.

Demographic

• 8. Why is it likely that the word "minority" as it is used today will have different implications in the future?

The size of most ethnic groups will double during the next two decades.

• 9. Which of the following statements regarding baby boomers is most accurate

Baby boomers are important to the consumer market because of their increased earnings and participation in the workforce.

• 10. Generation X is the label often given to

Persons born between 1965 and 1976

• 11. This generation is known as a savvy and demanding group of consumers who feel personally responsible for making a difference in the world. They also have an extraordinary optimism about their potential for fame and fortune

Members of Generation Y

• 12. A major regional shift in the U.S. population toward __________ states is under way

Western and Southern States

• 13. Minority racial and ethnic groups (excluding Caucasians) are concentrated in geographic regions of the United States. Native American groups are heavily concentrated in

Arizona

• 14. HSBC Bank International Ltd. (Europe's largest bank) selected its advertising agency because that agency was "always sensitive to the possibility that something might not translate well or may offend superstitions about colors or numbers." Its advertising agency was responsive to

Racial and Ethical diversity

• 15. Combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races are referred to as

Multicultural marketing programs

• 16. Culture refers to

the set of values, ideas, and attitudes that are learned and shared among the members of a group.

• 17. Culture includes values, which vary with age. Consumers between the ages of 30-to-39 years old rank __________ as the third most important cultural value

Health and Fitness

• 18. Wal-Mart has set a goal to reduce packaging on the products it carries. This change is an example of how they are responding to trends in customer values to

Preserve the Environment

• 19. Many consumers are committed to brands with a strong link to social action. An example of this would be

Brita's "Filter for Good" campaign

• 20. Geek Squad set out to provide timely and effective help with all computing needs regardless of the make, model, or place of purchase. Employees were called "agents" and wore uniforms with a Geek Squad logo to create a "humble" attitude that was not threatening to customers. Agents drove a black-and-white

Volkswagen Beetle

• 21. Economy refers to

the income, expenditures, and resources that affect the cost of running a business and household

• 22. Policy makers at the Federal Reserve in the United States level believe it takes a far bigger swing in unemployment to affect inflation than it did 25 years ago. Now, when inflation fluctuates, they are more likely to blame other factors such as the price of oil. This is an example of a(n) __________ environmental force.

Economic

• 23. In an inflationary economy, the cost to produce and buy products and services ________ as prices______.

Escalates; increase

• 24. A sudden drop in the average consumer income would bean example of which environmental factor

Economic

• 25. Components of a consumers' income include

Gross, disposable, and discretionary incomes.

• 26. Gross income refers to

The total amount of money made in one year by a person, household or family unit.

• 27. Disposable income refers to

The money a consumer has left after paying taxes to use for food, shelter, clothing, and transportation.

• 28. If taxes rise at a faster rate than income does, consumers most likely

Feel the pinch of less disposable income and try to economize

• 29. Discretionary income refers to

The money that remains after paying for taxes and necessities

• 30. Emily had an excellent year as a saleswoman in 2010. She earned $97,000. She paid $17,000 for "necessities" such as mortgage, food, and clothing. She was given a six-week all expenses paid vacation by the company for her sales performance that had a value of $9,000. Her state and federal income taxes totaled $24,000. What was her discretionary income?

$56,000

• 31. Last year the Parker family used to eat at nice restaurants almost four times a week. Even though Mr. Parker got a 5% raise, the cost of living increase this year was 7%. As a result the family eats most of their meals at home, dining out only four times a month. This reflects

A reactions to a loss of discretionary income

• 32. Technology refers to

The inventions or innovations from applied science or engineering research.

• 33. Technological advances are difficult to predict, however, four new technologies that are expected to have impact on marketing within the next few years include.

Nanotechnology, biotechnology, cloud computing and wireless power.

• 34. Medication sensors have been developed that can dispense medicines by circulating within the arteries of the body and sensing when the medication is needed. This is an example of how __________ help(s) to improve or replace existing products and companies.

Technology

• 35. Any activity that uses some form of electronic communication in the inventory, exchange, advertisement, distribution, and payment of goods and services is referred to as

Electronic Commerce

• 36. The Geek Squad wants to ____by setting up locations in FedEx and Office Depot

Create customer value

• 37. Competition refers to

alternative firms that could provide a product to satisfy a specific market's needs

• 39. In marketing, the four basic forms of competition refer to

pure competition, monopolistic competition, oligopoly, and pure monopoly.

• 40. The form of competition in which ever company has a similar product is referred to as

pure Competition

• 41. Paul Avery is a salesperson at the only Ford automobile dealership in Wausau, Wisconsin. However, there are several other auto dealerships in town, offering both domestic and foreign cars and trucks. Paul works hard to keep his customers satisfied because he knows that if his customers are unhappy, they can simply buy a car from one of the many other comparable dealers in Wausau. This is an example of

Monopolistic Competition

• 42. During the Christmas season, many catalog retailers offer buyers price reductions, coupons, two-for-one buying opportunities and/or free delivery. This is because these catalog retailers operate in a(n) __________ environment

Monopolistic Competition

• 43. The major retailers of online music include iTunes Store, Napster, e-Music, Zune Marketplace, Rhapsody, Yahoo Music Unlimited, and Wal-Mart.com. The on-line music industry is an example of a(n)

Oligopoly

• 44. Boeing, United Technologies, and Lockheed Martin control the U.S. defense contractor industry. The defense contractor industry is an example of a(n)

Oligopoly

• 45. In marketing, the form of competition that occurs when only one firm sells the product is referred to as

Pure monopoly

• 46. Small businesses generate __________ of all new jobs annually and __________ of the gross domestic product (GDP).

60 to 80 percent; 50 percent

• 47. Regulation refers to

the restrictions that state and federal laws place on business with regard to the conduct of its activities

• 48. Which of the following laws has the purpose of encouraging competition

Sherman Antitrust Act

• 49. The first major federal legislation passed to prevent contracts, combinations, or conspiracies in restraint of trade in the United States was the

Sherman Antitrust Act

• 50. The purpose of the Clayton Act is to

forbid actions that are likely to lessen competition although no actual harm has yet occurred.

• 51. The __________ makes it unlawful to discriminate in prices charged to different purchasers of the same product, where the effect may substantially lessen competition or help to create a monopoly.

Robinson-Patman Act

• 52. The purpose of patent law is to

Give inventors the right to exclude others from making, using, or selling products that infringe the patented inventions.

• 53. The purpose of copyright law is to

Give an author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise copy that work.

• 54. The Infant Formula Act (1980), the Nutritional Labeling and Education Act (1990), and the Fair Packaging and Labeling Act (1966) are all examples of

Consumer-oriented federal laws.

• 55. Consumerism refers to

the grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions.

• 56. Coca-Cola hired brand police to make sure that the Coca-Cola brand name and logo are not used without written permission. Why is Coca-Cola so rigorous in protecting its trademark?

In order to maintain the use of its widely recognizable trademark, Coca-Cola must prevent the name from becoming generic.

• 57. The Madrid Protocol is

a treaty that facilitates the protection of U.S. trademark rights throughout the world.

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