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Review and Assignments for Chapter 4
Review Questions
1. What is the purpose of environmental scanning? Give an example.
Although students’ answers will vary, they should address the following issue.
Environmental scanning—the collection and interpretation of information about forces,
2. Give an example of component lifestyles based on someone you know.
3. Explain how consumers’ buying habits may change during a recessionary period.
An economic recession is a phase when income, production, and employment fall and
together reduce the demand for goods and services. During a typical recession, consumer
confidence decreases; if consumers haven’t actually lost their jobs, they may feel insecure
4. Give three examples of how technology has benefited marketers. Also, give several
examples of how firms have been hurt because they did not keep up with the changes
in technology.
Students’ answers will vary widely. For example, they may mention that the new
Applicaon Quesons
1. Form six teams. Each team is responsible for one of the uncontrollable elements in the
marketing environment. Your boss, the company president, has asked each team to
provide a one-year and a five-year forecast of what major trends the firm will face.
The firm is in the telecommunications equipment industry. It has no plans to become
a telecommunications service provider like, for example, Verizon and AT&T. Each
team should use the library, the Internet, and other data sources to make its forecasts.
Each team should examine a minimum of one data source. The team should then pool
its data and prepare its recommendation. A spokesperson for each team should
present the findings to class.
2. Every country has a set of core values and beliefs. These values may vary somewhat
from region to region of the nation. Identify five core values for your area of the
country. Clip magazine advertisements that reflect these values and bring them to
class.
3. Baby boomers in America are aging. Describe how this might affect the marketing mix
for the following:
Bally’s Health Clubs
McDonald’s
Whirlpool Corporation
The state of Florida
Target Stores
Bally’s Health Clubs: There may be increased demand as boomers try to avoid aging,
but then it may decline if we give up the quest for the good body in great numbers.
4. You have been asked to address a local Chamber of Commerce on the subject of
millennial consumers. Prepare an outline for your talk.
Students’ answers will vary. The outline should include the following elements. Millennials
as consumers are skeptical, having been bombarded with marketing messages since a
5. How should Ford Motor Company market differently to millennials, generation X, and
baby boomers?
Students’ answers will vary.
Millennials: People who are part of generation Y have grown up in a media-saturated,
brand-conscious world and love customized products. So, Ford should develop a car that is
Generation X: People who are part of generation X are savvy but cynical consumers and
don’t mind indulging themselves with services, such as dining and travel. They are in their
Baby boomers: Baby boomers are aging but see themselves as active. Since most baby
boomers experienced loss during the Great Recession, they are working longer than
6. Go to the library, and look up a minority market such as the Hispanic market. Write a
memo to your boss that details the many submarkets within this segment.
Students’ answers will vary. Students should be invited to look at websites as well as
traditional books or periodicals. The submarkets within these cultural groups will probably
7. Using the library and the Internet, find examples of large companies directing
marketing mixes to each major ethnic group.
8. Periods of inflation require firms to alter their marketing mix. Suppose a recent
economic forecast expects inflation to be almost 10 percent during the next 18
months. Your company manufactures hand tools for the home gardener. Write a
memo to the company president explaining how the firm may have to alter its
marketing mix.
Students’ answers will vary. Inflation is a general rise in prices resulting in decreased
purchasing power. Inflation generally causes consumers to do two things: decrease their
9. The Federal Trade Commission and other governmental agencies have been both
praised and criticized for their regulation of marketing activities. To what degree do
you think the government should regulate marketing? Explain your position.
Students’ answers will vary. Governmental regulation that directly impacts marketing
10. Can you think of any other areas where consumer protection laws are needed?
Students’ answers will vary. (If you use this as an in-class discussion question, ask students
11. What topics are currently receiving attention in FDA News
(http://www.fdanews.com)? What effect has the attention had on market share?
Applicaon Exercise
Demographic factors play a large role in shaping the external marketing environment. One of
those demographic factors is culture. The importance of cultural understanding cannot be
Activities
1. Identify ethnic dining categories for inclusion in your guide. Once you have identified
2. You will need to create a data collection form so that the same information is collected from
3. Divide the restaurant list your team generated in activity 1 so that each team member is
4. Was there a meal or type of food that you particularly liked or disliked? Which type of ethnic
Purpose: The purpose of this exercise is to give those students who have had only minimal
Setting It Up: If your college or university is in a larger metropolitan area, you will probably
This application exercise is based on the following Great Ideas for Teaching Marketing:
Mark Andrew Mitchell, University of South Carolina—Spartanburg
The Guide to Ethnic Dining
Introduction
The importance of cultural understanding cannot be overstated, especially in today’s global
Purpose of the Project
The purpose of this project is to expose students to other cultures by examining the foods typical
The purpose is consistent with current university efforts to “internationalize” programs,
personnel, and curriculum. The finished product (The Guide to Ethnic Dining in your area) is
Student Application
This project can be administered in a Principles of Marketing, International Marketing,
Proposed Process for Successful Completion of Project
The following is an action plan to guide the preparation of “The Guide to Ethnic Dining” in your
market:
Identify ethnic dining categories for analysis.
Profile ethnic dining habits within each category.
Identify ethnic restaurants in your area.
Information Collected
As noted earlier, the guide is meant to be descriptive and not comparative. The following
information is suggested for inclusion in your guide:
Name of the establishment
Translation of name (if applicable)
Location and directions
Division of Labor
After you categorize the types of ethnic dining available (i.e., Mexican, Italian, Greek) in your
area, develop a list of applicable restaurants. (You can use the ethnic dining categories to
Ethics Exercise
Gary Caplan has developed a new energy drink designed to burn calories while sleeping, which
he intends to market to grossly overweight consumers. According the Centers for Disease
Control and Prevention, 20 percent of Americans are obese. Gary’s mother, a doctor, argues that
it’s unethical to target the obese—that they are as vulnerable a target market as the elderly and
children.
Questions
1. Is Gary targeting a “vulnerable” market?
Students’ responses may vary. For example, some students might argue that Gary is not
2. Does the American Marketing Association (AMA) Statement of Ethics address this
issue? Go to http://www.marketingpower.com, and review the statement. Then write a
brief paragraph on what it contains that relates to Gary Caplan’s marketing decision.
The American Marketing Association (AMA) Statement of Ethics does address this issue when
