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IBM CH.3 The Global Environment

Terms in this set (54)

Based on her scan of the external factors that would impact her small business, how did Erin Brewer promote the local culture at RedPin?
By the items she offered on her menu
The six major external factors that influence the marketing environment of a firm are: economic, demographic, sociocultural, technological, legal and ___
political
___ competition is also called brand competition or category competition.
direct
Which of the following scenarios exemplifies the concept of indirect competition?
Two products provide alternate solutions to the same market
Because it can impact the success of the firm's marketing strategy, marketing professionals continually scan and analyze a firm's external environment in order to detect and respond to ____
the threats and opportunities facing the firm
When Erin Brewer decided to explore launching a small business, she analyzed the external factors that would impact her company. Monitoring developments outside of a firm's control with the goal of detecting and responding to threats and opportunities is referred to as ___
environmental scanning
Which of the following statements is true about the economic factors in a marketing environment?
Economic factors influence almost every marketing decision a firm makes.
Factors outside of a firm such as political, technological, or legal forces that affect the firm's ability to meet its marketing goals are all part of the ___
marketing environment
____ is best defined as the market value of all officially recognized final goods and services produced within a country in a given period
Gross domestic product
____ competition refers to a situation in which products that perform the same function compete against each other in a market
Direct
Which of the following items are demographic characteristics?
Gender
Age
Ethnicity
____ competition is a process in which products provide alternative solutions to the same market
Indirect
The generation of children born between 1946 and 1964 are collectively referred to as ____
baby boomers
The act of monitoring developments outside of a firm's control with the goal of detecting and responding to threats and opportunities is referred to as ___
environmental scanning
As an external marketing factor, the term ___ factors refers to the combination of social and cultural factors that affect individual development
sociocultural
True or False: Economic conditions impact customers' willingness and ability to buy products.
True
True or False: The political climate in a democratized country can change the direction of government policy quickly and impact how marketers position their products.
True
Overall, _______ measures the overall size and health of an economy.
gross domestic product
The Sherman Antitrust Act (1890)
The Robinson-Patman Act (1936)
The Wheeler-Lea Act (1938)
Fair Packaging and Labeling Act (1966)
The Sherman Antitrust Act (1890): To eliminate monopolies and guarantee competition

The Robinson-Patman Act (1936): To prohibit firms from selling the same product at different prices

The Wheeler-Lea Act (1938): To restrict unfair, deceptive, and misleading advertising

Fair Packaging and Labeling Act (1966): Guarantees product packages are labeled correctly
____ are characteristics of human populations, such as age, gender, ethnicity, and education level, that can be used to identify consumer markets
Demographics
Palo and Clarita were walking downtown when Palo suddenly received an electronic coupon for an Italian restaurant that was located just up the street. This illustrates how _______ can change the way firms market to consumers
technology
Which of the following characterize baby boomers?
Baby boomers are individuals born between 1946 and 1964.
Baby boomers represent the wealthiest generation in U.S. history.
Baby boomers are retiring at a rate of 10,000 per day.
Which of the following statements regarding currency fluctuations is true?
Currency fluctuations can provide marketing opportunities whether a currency is appreciating or depreciating
One of the biggest sociocultural changes in the United States over the past half century has been ____
the shift from a nation of primarily one-income families to one in which two-income families predominate
True or False: Marketers are particularly attracted to countries with a growing middle class.
True
Of the external marketing factors listed in your text, which one is most likely at play if legislation is passed that will ban the sale of a product to certain age groups?
Political
Which of the following is a goal of the North American Free Trade Agreement (NAFTA)?
To eliminate barriers to trade and investment among the participating countries
What was the purpose of the Wheeler-Lea Act of 1938?
It made deceptive and misleading advertising illegal.
____ is a member of the North American Free Trade Agreement (NAFTA) along with the United States and Canada
Mexico
While shopping for a new computer, Jake uses an app on his cell phone to compare the price that various stores are charging for the computer he is interested in. What external factor affecting the marketing environment does this represent?
Technological
Which of the following countries is a member of the Central America Free Trade Agreement (CAFTA)?
Guatemala
____ refers to how the value of one country's currency changes in relation to the value of other currencies
Currency fluctuation
Which of the following are technological advancements that have helped small business reach consumers around the globe?
The ability to track shipments around the globe
The development of company websites
Tools such as Google Translate
According to your text, if a marketer wanted to gauge a country's purchasing power, which of the following would provide the most reliable result?
Its income distribution
The North American Free Trade Agreement (NAFTA) sought to _______ barriers to both trade and investment among participating countries
eliminate
____ refers to a belief by residents of a country that it is inappropriate or immoral to purchase foreign-made goods and services
Consumer ethnocentrism
____ was implemented on January 1, 1994 and affected tariffs on exports between the United States, Canada, and Mexico
The North American Free Trade Agreement (NAFTA)
According to your text, which three sources of funding do nonprofit organizations rely on the most?
Special events
Grants
Individual donations
The Dominican Republic-Central America Free Trade Agreement is an international agreement that eliminated tariffs, reduced nontariff barriers, and facilitated investment among _______, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic.
Costa Rica
True or False: Today, technology enables small businesses to reach customers across the globe.
True
During the recession that began in December of 2007, Americans reduced their overall charitable giving by approximately _______ percent from levels prior to the recession
20
Which of the following increases a nation's purchasing capability?
Increase in the proportion of middle-income households of the nation
Because it receives a substantial portion of its funding from state legislatures, which of the following industries was hit particularly hard due to the recession that began in late 2007?
Public universities
In many developed nations, including the United States, France, Germany, and China, consumer ethnocentrism is ___
increasing
The competitive environment for nonprofit funding has _______ in recent years
increased dramatically
Which of the following countries/territories joined the Central America Free Trade Agreement (CAFTA) in 2004?
Dominican Republic
Changes to the tax incentive element as it pertains to charitable donations is part of which external factor affecting the marketing environment for nonprofit organizations?
Legal
Which of the following economic situations would most likely have a negative effect on a nonprofit organization's ability to secure funding?
When a country is facing an economic recession
A marketer that utilizes social media to help a nonprofit organization secure funding and register volunteers is aware of the _______ factor that can impact marketing campaigns.
technological
The recession led to political pressure to _______ federal, state and municipal budgets
reduce
Consider the following statements to determine which one accurately describes the concept of consumer ethnocentrism.
A belief by residents of a country that it is inappropriate or immoral to purchase foreign-made goods or services
New laws and regulations are among the ___ factors impacting nonprofit organizations
legal
Identify the correct statement about the nonprofit marketing environment.
Social media gives nonprofit organizations substantial advantages when it comes to conducting charity campaigns.
True or false: Because they do not generate a profit, nonprofit organizations do not need to scan the external marketing environment.
False
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