Chapter 4 Marketing Environment And Strategy Exam Prep

Chapter 4: Marketing environment and strategy

Test Bank

Type: multiple choice question

Title: Chapter 04 Question 01

1) In order to make sense of the external environment we use a framework known as PESTLE. PESTLE stands for the:

a. Production, Economic, Social, Technological, Legal, and Ecological environments.

b. Political, Economic, Social, Technological, Legal, and Ecological environments.

c. Political, Economic, Systematic, Territorial, Legal, and Ecological environments.

d. Psychological, Economic, Sociological, Technological, Lifestyle, and Ecological environments.

Type: multiple choice question

Title: Chapter 04 Question 02

2) Although this environment is in many ways uncontrollable, there are circumstances when an organization, or an industry coalition, can affect legislation in its own favour. This is referred to as the:________ These specialists are often hired for which of the following reasons?

a. economic environment

b. technological environment

c. social environment

d. political environment.

Type: multiple choice question

Title: Chapter 04 Question 03

3) Marketers can conduct business-government relations in various countries through a number of ways. This might include:

a. A PR assistant may be invited to give a series of seminars to the organization on past government marketing campaigns.

Lobbyist firms, with key industry knowledge, can be engaged either permanently or as needed.

Public relations consultancies can be commissioned for their political services.

A politician may be paid a fee to give political advice on matters of importance to an organization.

An in-house public relations manager might handle government relations directly.

An industry association might be contacted to lobby on behalf of members.

A politician may be invited directly to join the board of directors, board of trustees, or board of advisers of an organization.

b. Employing a statistician who worked for the governments National Office for Statistics.

Lobbyist firms, with key industry knowledge, can be engaged either permanently or as needed.

Public relations consultancies can be commissioned for their political services.

A politician may be paid a fee to give political advice on matters of importance to an organization.

An in-house public relations manager might handle government relations directly.

An industry association might be contacted to lobby on behalf of members.

A politician may be invited directly to join the board of directors, board of trustees, or board of advisers of an organization.

c. A politician may be paid a fee to give political advice on matters of importance to an organization.

Lobbyist firms, with key industry knowledge, can be engaged either permanently or as needed.

Public relations consultancies can be commissioned for their political services.

A politician may be paid a fee to give political advice on matters of importance to an organization.

An in-house public relations manager might handle government relations directly.

An industry association might be contacted to lobby on behalf of members.

A politician may be invited directly to join the board of directors, board of trustees, or board of advisers of an organization.

d. Both inviting a PR assistant to give a series of seminars to the organization on past government marketing campaigns and employing a statistician who worked for the government’s National Office for Statistics.

Lobbyist firms, with key industry knowledge, can be engaged either permanently or as needed.

Public relations consultancies can be commissioned for their political services.

A politician may be paid a fee to give political advice on matters of importance to an organization.

An in-house public relations manager might handle government relations directly.

An industry association might be contacted to lobby on behalf of members.

A politician may be invited directly to join the board of directors, board of trustees, or board of advisers of an organization.

Type: multiple choice question

Title: Chapter 04 Question 04

4) ______ is the combined output of goods and services in a particular nation and is a useful measure for determining relative wealth between countries when comparisons are calculated per member of the population.

a. Price inflation

b. Gross Domestic Product (GDP)

c. Wage inflation

d. Export quota controls and duties

Type: multiple choice question

Title: Chapter 04 Question 05

5) People’s lifestyles are increasingly changing. A number of key trends in Europe include the trend towards marrying later and a greater tendency to divorce than in previous generations. This has resulted in an increase in single-person households. This is an example of which factor in the external environment?

a. Legal environment.

b. Political environment.

c. Socio-cultural environment.

d. Ecological environment.

Type: multiple choice question

Title: Chapter 04 Question 06

6) ____________ in the Boston Box exist in fairly stable, low-growth markets and require little on-going investment. Their high market share draws both positive cash flows and high levels of profitability. .

a. Question marks

b. Dogs

c. Stars

d. Cash cows

Type: multiple choice question

Title: Chapter 04 Question 07

7) Most countries place restrictions on the prices that pharmaceutical companies can charge for drugs. In Japan, price regulations are stipulated for individual products, while in the UK, strict controls are placed on the overall profitability of products supplied by a specific company to the National Health Service. These are examples of:

a. Ecological environment.

b. Economic environment.

c. Political environment.

d. Legal environment.

Type: multiple choice question

Title: Chapter 04 Question 08

8) This type of strategy requires that all value chain activities are geared to the creation of products that are valued by, and which satisfy, the needs of particular broad segments.

a. Cost leadership strategy

b. Differentiation strategy

c. Focused strategy

d. Diversification strategy

Type: multiple choice question

Title: Chapter 04 Question 09

9) Consumers are also keen to ensure that companies and their products are not damaging the environment or causing harm to consumers. This has been accompanied by a rise in the popularity of ‘Fairtrade’ products. This is an example of a __________ trend.

a. social

b. technological

c. ecological

d. production

Type: multiple choice question

Title: Chapter 04 Question 10

10) Porter’s Five Forces of Competitive Industry Analysis comprises the analysis of the interplay of the following five factors:

a. Suppliers, buyers, technologies, competitors, and systems.

b. Suppliers, buyers, new entrants, competitors, and substitutes.

c. Systems, buyers, new entrants, products, and substitutes.

d. Systems, products, buyers, substitutes and new markets.

Type: true-false

Title: Chapter 04 Question 11

11) Marketers can control the external environment in which their organizations operate.

a. True

b. False

Type: true-false

Title: Chapter 04 Question 12

12) The process of gathering information about a company’s external events and relationships, in order to assist top management in its decision-making, and the development of its course of action is referred to as marketing information system (MIS)

a. True

b. False

Type: true-false

Title: Chapter 04 Question 13

13) Differentiation strategies are used by organizations to seek gaps in broad market segments or find gaps in competitors’ ranges. In other words, focus strategies help to seek out unfulfilled market needs.

a. True

b. False

Type: true-false

Title: Chapter 04 Question 14

14) Organizations can out-perform other organizations over time if they can manage their relationships with government and regulatory bodies better than their competitors.

a. True

b. False

Type: true-false

Title: Chapter 04 Question 15

15) With price inflation, where there is a scarcity of supply, there is usually an increase in the price of that consumer good or service.

a. True

b. False

Type: true-false

Title: Chapter 04 Question 16

16) Cost leadership is a strategy involving the production of goods and services for a broad market segment, at a cost lower than all other competitors.

a. True

b. False

Type: true-false

Title: Chapter 04 Question 17

17) The final step in the marketing planning process should be a phase of strategic appraisal and evaluation. This will covers a period of between three and five years, and provide a strategic insight into the markets, competitors, and organizational resources that will shape the direction and nature of the way in which the firm has decided to compete.

a. True

b. False

Type: true-false

Title: Chapter 04 Question 18

18) Hold objectives are concerned with defence. They are designed to prevent and fend off attack from aggressive competitors.

a. True

b. False

Type: true-false

Title: Chapter 04 Question 19

19) A SOCK analysis is a methodology used by organizations to understand their strategic position. It involves analysis of an organization’s Strengths, Operations, Costs and Knowledge.

a. True

b. False

Type: true-false

Title: Chapter 04 Question 20

20) One of the popular methods for assessing the variety of businesses/products that an organization has involves the creation of a two-dimensional graphical picture of the comparative strategic positions. This technique is referred to as the Boston Consulting Group (BCG) matrix.

a. True

b. False

Type: multiple choice question

Title: Chapter 04 Question 21

21) _____ factors are the environmental factors concerned with the changes in people's values, lifestyles, and family roles.

a. Sociocultural

b. Economic

c. Demographic

d. Political

Type: multiple choice question

Title: Chapter 04 Question 22

22) In the BCG matrix, products that exist in growing markets but have low market share are referred as:

a. Dog

b. Star

c. Question marks

d. Cash cows

Type: multiple choice question

Title: Chapter 04 Question 23

23) There are five main types of strategic marketing objectives. One type of objective, ______ objectives, are often the most suitable when firms operate in a market dominated by a major competitor and where their financial resources are limited.

a. hold

b. growth

c. divest

d. niche

Type: multiple choice question

Title: Chapter 04 Question 24

24) The_____________ consists of those organizations that either directly or indirectly influence an organization’s operational performance.

a. external environment

1.) Those companies that compete against the organization in the pursuit of its objectives.

2.) Those companies that supply raw materials, goods, and services and those that add

value as distributors, dealers, and retailers, further down the marketing channel. These

organizations have the potential to directly influence the performance of the organization

by adding value through production, assembly, and distribution of products prior to

reaching the end user.

3.) Those companies that have the potential to indirectly influence the performance of the organization.

b. performance environment

1.) Those companies that compete against the organization in the pursuit of its objectives.

2.) Those companies that supply raw materials, goods, and services and those that add value as distributors, dealers, and retailers, further down the marketing channel. These

organizations have the potential to directly influence the performance of the organization

by adding value through production, assembly, and distribution of products prior to reaching the end user.

3.) Those companies that have the potential to indirectly influence the performance of the organization.

c. internal environment

influence an organization’s operational performance. There are three main types:

1.) Those companies that compete against the organization in the pursuit of its objectives.

2.) Those companies that supply raw materials, goods, and services and those that add

value as distributors, dealers, and retailers, further down the marketing channel. These

organizations have the potential to directly influence the performance of the organization

by adding value through production, assembly, and distribution of products prior to

reaching the end user.

3.) Those companies that have the potential to indirectly influence the performance of the organization

d. environmental scanning

influence an organization’s operational performance. There are three main types:

1.) Those companies that compete against the organization in the pursuit of its objectives.

2.) Those companies that supply raw materials, goods, and services and those that add

value as distributors, dealers, and retailers, further down the marketing channel. These

organizations have the potential to directly influence the performance of the organization

by adding value through production, assembly, and distribution of products prior to

reaching the end user.

3.) Those companies that have the potential to indirectly influence the performance of the organization.

Type: multiple choice question

Title: Chapter 04 Question 25

25) A formal written document that specifies how the marketing strategy will be accomplished is:

a. A marketing research proposal.

b. A mission statement.

c. A marketing plan.

d. None of the options given.