Chapter 3 Analyzing the Marketing Environment

1) Which of the following is part of the microenvironment of a firm's marketing environment?

A) the political state of the country in which the firm exists
B) the cultural forces that exist in a society
C) the suppliers who work with the company
D) the technological resources available to the company
E) the different demographic trends in the market
Answer: C

2) Demographic, economic, natural, technological, political, and cultural forces form the
________ of an organization.
A) supply chain
B) macroenvironment
C) marketing intermediary network
D) internal environment
E) microenvironment
Answer: B

3) ________ provide the resources needed by a company to produce its goods and services.
A) Wholesalers
B) Suppliers
C) Physical distribution firms
D) Media firms
E) Retailers
Answer: B

4) ________ are distribution channel firms that help a company find customers or make sales to
them.
A) Resellers
B) Suppliers
C) Producers
D) Logistics firms
E) Credit companies
Answer: A

5) A marketing intermediary would most likely help a firm by ________.

A) negotiating with labor unions regarding wages, hours, and benefits
B) providing technical expertise on the production and design of goods
C) competing directly with the firm in a certain product category
D) supplying the raw materials needed for manufacturing the firm's products
E) moving the firm's goods from production points to distribution centers
Answer: E

6) According to the text, ________ are the most important actors in a company's
microenvironment.
A) stockholders
B) employees
C) suppliers
D) resellers
E) customers
Answer: E

7) ________ markets consist of individuals and households that buy goods and services for
personal use.
A) Consumer
B) Business
C) Government
D) Wholesaler
E) Retailer
Answer: A

8) Which of the following is most likely categorized as a business market?

A) government agencies that buy goods and services to produce public services
B) individuals who buy goods and services for personal consumption
C) firms that buy goods and services for further processing
D) firms that buy goods and services to resell for profit
E) retail outlets that buy goods and services to sell at discounted prices
Answer: C

9) Reseller markets consist of ________.

A) government agencies that buy goods and services to produce public services
B) individuals who buy goods and services for personal consumption
C) firms that buy goods and services to assemble overseas
D) firms that buy goods and services to sell at a profit
E) firms that buy goods and services for further processing
Answer: D

10) ________ is the study of human populations in terms of size, density, location, age, gender,
race, occupation, and other statistics.
A) Sociobiology
B) Demography
C) Behavioral ecology
D) Environmental studies
E) Political science
Answer: B

11) Changes in variables, such as income, cost of living, interest rates, and savings and
borrowing patterns most likely reflect changes in the ________ environment of a company.
A) economic
B) natural
C) demographic
D) political
E) cultural
Answer: A
12) In a marketer's macroenvironment, the ________ environment consists of laws, government
agencies, and pressure groups that influence or limit various organizations and individuals in a
given society.
A) political
B) cultural
C) technological
D) natural
E) internal
Answer: A

13) Governments most likely enact business legislation to ________.

A) prevent unfair competition in the market
B) allow a single large monopoly in the market
C) prevent alternative products from entering the market
D) protect the interests of producers rather than society
E) dissociate social responsibility from commerce
Answer: A

14) Which of the following is an example of cause-related marketing?

A) a firm selling groceries without using retail outlets
B) a firm selling energy drinks and relying on social media
C) a firm selling low-cost health insurance through online sites
D) a firm selling hybrid and other low-emission automobiles
E) a firm selling electronics and giving a percentage of sales to charity
Answer: E

15) Ursa Martin, a book publisher, has decided to work with Hope in Children, a charity
foundation that helps feed and educate children in poor countries. Ursa Martin has decided that a
percentage of revenue from every book it sells will go to the charity. The books are marketed by
conveying this message to customers. Which of the following marketing techniques describes
Ursa Martin's association with Hope in Children?
A) joint venture marketing
B) cause-related marketing
C) niche marketing
D) green marketing
E) test marketing
Answer: B

16) Which of the following is part of the microenvironment of a firm's marketing environment?
A) the political state of the country in which the firm exists
B) the cultural forces that exist in a society
C) the suppliers who work with the company
D) the technological resources available to the company
E) the different demographic trends in the market
Answer: C

17) JJ Distributors LTD. Buys electronic products from manufacturers for wholesale and sells
them to various retail outlets. To which of the following markets does JJ Distributors Ltd.
Directly cater?
A) Business markets
B) Reseller markets
C) Manufacturer markets
D) Supplier markets
E) Consumer markets
Answer B

18) Which of the following is most likely a characteristic of firms that adopt a reactive approach
toward the marketing environment?
A) They develop strategies to change the marketing environment.
B) They take advantage of the opportunities provided by the environment.
C) They take aggressive actions to affect the marketing environment.
D) They view the marketing environment as a controllable element.
E) They do not accept the marketing environment as it is.
Answer: B

19) Which of the following is most likely true about companies that take a proactive stance
toward the marketing environment?
A) They develop strategies to change the marketing environment.
B) They believe that marketing strategies are bound by the current environment.
C) They passively accept the marketing environment in its current state.
D) They view the marketing environment as an uncontrollable element.
E) They design strategies according to environmental forces in the market.
Answer: A

20) Which of the following marketing actions would a proactive organization most likely take?
A) engaging in cause-related marketing activities
B) passively accepting the marketing environment
C) running advertorials to shape public opinion
D) carefully monitoring the regulatory environment
E) developing universally acceptable mission statements
Answer: C

21) Discuss how the political environment affects the marketing environment.
Answer: Marketing decisions are strongly affected by developments in the political environment.
The political environment consists of laws, government agencies, and pressure groups that
influence or limit various organizations and individuals in a given society.
Governments develop public policy to guide commerce–sets of laws and regulations that limit
business for the good of society as a whole. Almost every marketing activity is subject to a wide
range of laws and regulations. Well- regulation can encourage competition and ensure fair
markets for goods and services. In the United States, there are many laws created at the national,
state, and local levels, and these regulations often overlap. Moreover, regulations are constantly
changing; what was allowed last year may now be prohibited, and what was prohibited may now
be allowed. Marketers must work hard to keep up with changes in regulations and their
interpretations.