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Principles of Marketing, 17e, Global Edition (Kotler/Armstrong)
Chapter 3 Analyzing the Marketing Environment
1) Dan has been directed to study the forces close to a company that affect its ability to serve its
customers, such as the company, suppliers, marketing intermediaries, customer markets,
competitors, and publics. In this instance, Dan has been directed to study the ________ of the
company.
A) macroenvironment
B) microenvironment
C) technological environment
D) demographic environment
E) political environment
2) Which of the following terms is used to describe the actors and forces outside marketing that
affect marketing management's ability to build and maintain successful relationships with target
customers?
A) marketing environment
B) marketing orientation
C) strategic planning
D) target markets
E) marketing mix
3) Which of the following is a component of a firm's microenvironment?
A) customer demographics
B) economic recessions
C) population shifts
D) marketing intermediaries
E) technological changes
4) Sam has been directed to study the demographic, economic, political, and cultural forces that
affect an organization. In this instance, Sam has been directed to study the ________ of the
organization.
A) macroenvironment
B) microenvironment
C) internal environment
D) marketing mix
E) marketing intermediaries
5) The interrelated departments within a company that influence marketing decisions form the
________ environment.
A) cultural
B) economic
C) company
D) political
E) technological
6) Which is NOT part of the company environment that influences marketing decisions?
A) accounting
B) engineering
C) manufacturing
D) sales
E) retailers
7) ________ provide the resources needed by a company to produce its goods and services.
A) Retailers
B) Marketing services agencies
C) Resellers
D) Suppliers
E) Financial intermediaries
8) Sparex Inc. is a manufacturer of metal bolts that are used by Boilex Inc. to manufacture
heavy machineries. In this instance, Sparex acts as a ________.
A) financial intermediary
B) supplier
C) retailer
D) customer
E) local public
9) Jonathan works for a firm that assists companies in promoting, distributing, and selling their
products to end consumers. The firm Jonathan works for is a ________.
A) licensor
B) supplier
C) marketing intermediary
D) local public
E) general public
10) ________ help companies stock and move goods from their points of origin to their
destinations.
A) Retailers
B) Physical distribution firms
C) Marketing services agencies
D) Resellers
E) Suppliers
11) ________ include banks, credit companies, insurance companies, and other businesses that
help insure against the risks associated with the buying and selling of goods.
A) Financial intermediaries
B) Physical distribution firms
C) Resellers
D) Marketing services agencies
E) Wholesalers
12) Maria works for Sigma Inc., a firm that helps companies target and promote their products
to the right markets. Sigma is most likely a ________.
A) financial intermediary
B) physical distribution firm
C) marketing services agency
D) reseller
E) wholesaler
13) LandPort Transportation and Omega Warehousing help companies move and stock goods
from their manufacturing plants to their destinations. These two businesses are examples of
________.
A) resellers
B) marketing services agencies
C) financial intermediaries
D) physical distribution firms
E) wholesalers
14) Boxes, Inc. sells products to end users or to other companies that will sell to end users.
Boxes, Inc. is a ________.
A) reseller
B) marketing services agencies
C) financial intermediaries
D) physical distribution firms
E) wholesalers
15) Which of the following groups influences the company's ability to obtain funds?
A) financial publics
B) local publics
C) general publics
D) citizen-action publics
E) internal publics
16) Which of the following is true with regard to media publics?
A) The primary function of this group is to protect the interests of minority groups.
B) This group carries news, features, and editorial opinion.
C) The primary function of this group is to critique the marketing decisions of companies.
D) This group includes neighborhood residents and community organizations.
E) This group directly influences the company's ability to obtain funds.
17) Companies can succeed against their competitors by all of the following EXCEPT
________.
A) providing greater customer value and satisfaction
B) better meeting the needs of target customers
C) positioning their offerings strongly against competitors' offerings in the minds of consumers
D) considering their own size and position compared to the competition
E) providing the same product as the competition
18) A company's marketing decisions may be questioned by consumer organizations,
environmental groups, minority groups, and others. These organizations and groups are also
known as ________.
A) media publics
B) marketing intermediaries
C) customers
D) citizen-action publics
E) internal publics
19) A consumer organization in Ohio has challenged the marketing decision of a local firm
alleging it to be against the larger social interest. In this instance, the firm is challenged by a(n)
________ public.
A) internal
B) general
C) government
D) citizen-action
E) media
20) Which group includes neighborhood residents and community organizations?
A) local publics
B) government publics
C) internal publics
D) citizen-action publics
E) media publics
21) Cape Sky Inc., an international insurance and financial services company, is the primary
sponsor of the annual New York City Marathon, which is attended by over one million fans and
watched by approximately 300 million viewers worldwide. The Cape Sky logo and name are
displayed throughout the racecourse. Cape Sky most likely sponsors this event in order to
appeal to which of the following types of publics?
A) financial publics
B) citizen-action publics
C) government publics
D) general publics
E) internal publics
22) Workers, managers, and members of the board are examples of ________ publics.
A) general
B) internal
C) local
D) citizen-action
E) media
23) Price & Malone Corp., a company based in Houston, caters to a market of individuals and
households that buy goods and services for personal consumption. Price & Malone caters to a
________ market.
A) business
B) reseller
C) government
D) consumer
E) wholesale
24) ________ markets buy goods and services for further processing.
A) Business
B) Reseller
C) Wholesale
D) Consumer
E) Retail
25) Government markets consist of government agencies that buy goods and services
________.
A) to produce public services
B) to resell at a profit
C) for further processing
D) for personal consumption
E) that are generally of poor quality
26) Rachel works for a furniture company in Ireland. She is responsible for buying and selling
goods at a profit to small retailers. Rachel most likely operates in a ________ market.
A) business
B) reseller
C) wholesale
D) consumer
E) retail
27) Sparks Inc. has a growing ________ market in the United States consisting of individuals
and households that buy Sparks' products for personal use.
A) consumer
B) government
C) business
D) international
E) financial
Refer to the scenario below to answer the following question(s).
Casey Brickly opened The Landing, a convenience store on the north shore of Witmer Lake, in
1962. With a sandwich counter on one side and a bait shop and grocery on the other, The
Landing was an immediate hit with weekend lake visitors and local residents alike. In the
summer, boaters parked at the piers and bought all their fishing needs, such as rods and reels,
bait, snacks, and soft drinks at The Landing. Even during the winter months, snowmobilers and
ice fishermen were lured to The Landing for snacks and hot coffee or hot chocolate.
As time passed, the business changed and grew tremendously. What was formerly a weekend
tourist area gradually became a full-fledged residential area. Many of the houses, which were
built as cottages in the 1950s and 1960s, were remodeled into residential homes. By the end of
the 1970s, the days of small motorboats and 10 mile-per-hour speed limits were gone; skiing
and fast speedboats became the rage. Through it all, The Landing continued to attract flocks of
patrons.
In the 1980s, however, Casey started to realize that the grocery area in The Landing could not
compete with larger local retailers. He eventually enlarged the sandwich counter, transforming
the bait shop and grocery into a restaurant with a full menu typical of any diner. "Getting rid of
the bait shop was hard to do," Casey admitted. "I still had a summer crowd that relied on us for
their fishing needs, but we couldn't survive a whole year on four months of profit."
In the early 2000s, the atmosphere of Witmer Lake and the neighboring lakes became upscale.
"I could see that people were spending more on their speed boats than what they had originally
paid for their cottages!" Casey exclaimed. Many of the cottages were inherited by children and
grandchildren of the original owners. Once again, the scene started to change as many of the
lake houses were used only as weekend lake homes. Unlike the previous generation, a vast
number of the current owners could afford to live closer to their jobs while maintaining lake
homes. "At this point, business wasn't growing," Casey said.
As local competition continued to increase, Casey converted the diner of The Landing into a
bar with a lounge area. "The change might have been too drastic," Casey said, "but it was the
only way we could maintain a strong, year-round business in spite of the population shifts and
competitive forces."
28) Which of the following microenvironment actors has had the most influence on The
Landing?
A) competitors
B) suppliers
C) marketing intermediaries
D) resellers
E) citizen-action publics
29) The microenvironment consists of larger societal forces that affect a company, such as
demographic, economic, political, and cultural forces.
30) The macroenvironment consists of the factors close to the company that affect its ability to
serve its customers, such as suppliers, customer markets, competitors, and publics.
31) Marketing success requires building relationships with other company departments,
suppliers, marketing intermediaries, competitors, various publics, and customers, which
combine to make up the company's value delivery network.
32) A company's marketing environment excludes the forces outside the marketing department
that affect marketing management's ability to build and maintain successful relationships with
target customers.
33) Marketing services agencies are the marketing research firms, advertising agencies, media
firms, and marketing consulting firms that help the company target and promote its products to
the right markets.
34) Local publics include consumer organizations, environmental groups, minority groups, and
others.
35) The aim of the entire value delivery network is to serve target customers and create strong
relationships with them.
36) Business markets buy goods and services for further processing or for use in their
production processes.
37) Trudie Jones works for a distribution channel firm that helps several electronics companies
find customers or make sales to them. Trudie works for a reseller.
38) A business's suppliers are the most important actors in the company's microenvironment.
39) Companies that watch variables such as income, cost of living, and interest rates, are more
likely to be negatively affected by an economic change such as a recession or boom.
40) Government agencies such as the Food and Drug Administration and the Consumer Product
Safety Commission investigate and ban potentially unsafe products. Regulations created by
these and other agencies result in higher research costs and longer times between new product
ideas and their introduction.
41) A trend has been people's growing mastery over nature through technology and the belief
that nature is bountiful, but also the realization that it is finite and fragile.
42) Marketing management can control environmental forces. A reactive approach is, therefore,
the most beneficial approach to the marketing environment.
43) How have large retailers such as Walmart changed the dynamics of partnering with
resellers?
44) Who are the major players in a company's microenvironment? Explain the role that each
actor plays.
45) What are marketing intermediaries and what are the various types?
46) What is a "public" in terms of the marketing environment? In a short essay, briefly describe
the different types of publics that marketers must consider and explain how marketing might
communicate with these publics.
47) The marketing team of 7 Star Inc., a company manufacturing smartphones, is currently
studying the size, density, location, age, and occupation of its target market. Which of the
following environments is being studied in this scenario?
A) demographic environment
B) political environment
C) economic environment
D) technological environment
E) cultural environment
48) The single most important demographic trend in the United States is the ________.
A) changing age structure of the population
B) mobility of families
C) changing family structure of the population
D) increasing number of professional jobs
E) increasing birth rate
49) Among the generational groups in U.S population, the ________ are still the wealthiest
generation in U.S. history.
A) baby boomers
B) Generation Xers
C) Millennials
D) echo boomers
E) Silent Generation
50) Which of the following is true of the baby boomers?
A) They tend to see themselves as far older than they actually are.
B) They represent a rapidly shrinking market for new housing and home remodeling.
C) They are long past their peak earning and spending years.
D) They control an estimated 70 percent of the United States' disposable income.
E) They have utter fluency and comfort with digital technology.
51) Which of the following is true of Gen Xers?
A) They are considerably larger than the boomer generation.
B) They were the first to grow up in the Internet era.
C) They are less educated than the baby boomers.
D) They are more materialistic than the Millennials.
E) They rarely research a product before purchasing it.
52) Which of the following generations is the most educated to date?
A) Lost Generation
B) Baby boomers
C) Millennials
D) Generation X
E) Silent Generation
53) Mary Adams is helping her company develop a marketing program for a new product line.
The program is designed to appeal most to less materialistic consumer groups who are likely to
prize experience, not acquisition. The marketing program is most likely designed to appeal to
which of the following demographic groups?
A) Generation X
B) Millennials
C) Echo Boomers
D) Silent Generation
E) Lost Generation
54) Which of the following is true of the Millennials?
A) They are the children of baby boomers and were born between 1977 and 2000.
B) They control an estimated 70 percent of the disposable income in the United States.
C) They have reached their peak earning and spending years.
D) They were the first to grow up in the Internet era.
E) They are less immersed in technology than Gen Xers.
55) Which of the following generational groups is most comfortable with digital technology
and embraces that technology?
A) Generation X
B) Millennials
C) Baby Boomers
D) Silent Generation
E) Lost Generation
56) Wholesome Soups, a maker of organic soups, is starting a new marketing campaign
emphasizing the ease of preparing and eating Wholesome Soups. Print, television, and Internet
ads feature college students enjoying Wholesome Soups in between classes and during study
breaks. Wholesome Soups' new marketing campaign is most likely aimed at which of the
following?
A) Baby Boomers
B) Gen Zers
C) Gen Xers
D) Millennials
E) the SOHO market
57) Marketers target Generation Z because they ________.
A) listen to their parents and follow their examples
B) dislike technology
C) spend an estimated $44 billion annually of their own money
D) prefer shopping in brick-and-mortar stores with actual products
E) have long attention spans and are easily targeted
58) Gen Zers are highly mobile, connected, and social. They base their purchases on ________.
A) input from their friends
B) text messages
C) social media ratings
D) product research on their own
E) their parents' opinions
59) Marketers can group people in a number of ways, including by birth date. However, the
following combination of groups has proven to be more effective: ________.
A) income, lifestyle, life stage
B) profession, common values they seek in products they buy, lifestyle
C) lifestyle, life stage, common values they seek in products they buy
D) place of residence, life stage, lifestyle
E) race or nationality, lifestyle, common values they seek in products they buy
60) Which of the following is a trend that depicts the increasingly nontraditional nature of
today's American families?
A) the low percentage of working women in the workforce
B) the low percentage of married couples with children
C) the sharply declining number of dual-income families
D) the sharply declining number of stay-at-home dads
E) the decreasing reliance on convenience foods and services
61) In the context of geographical shifts in population, the migration toward ________ areas
has resulted in a rapid increase in the number of people who telecommute.
A) urban
B) remote
C) rural
D) metropolitan
E) micropolitan
