Instructions

Choose your answers from a-d by clicking the radio button next to each choice and then
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Question 1

Which of the following is NOT part of the external marketing environment?

a) Political
b) Legal
c) Product
d) Socio-cultural

Question 2

Car (automobile) designers world-wide began working on plans for a dual energy car
when:
a) They realized that such a vehicle was not only feasible, but inexpensive
b) The legal tolerance for noxious emissions from automobiles began to be reduced
c) Noise pollution regulations began to be passed that would outlaw the internal
combustion engine
d) Sweden passed a law that said all new vehicles had to have a provision for pedal-
power

Question 3

A firm has decided to alter its pricing and promotional strategies in response to slower than
expected job growth and declining personal incomes. The firm is responding to changes in
its:
a) Socio-cultural environment
b) Political environment
c) Economic environment
d) Competitive environment

Question 4

Robert is a marketer for a global consumer products company. He is working on the

promotional campaign designed to reach a target audience in a new international market.
Robert is working hard to make sure that the promotional campaign is clearly understood
by the nation's consumers and doesn't offend anyone. Which of the factors in the external
environment is he being influenced by?
a) Socio-cultural environment
b) Competitive environment
c) Economic environment
d) Legal environment

Question 5

The process of collecting information about the external marketing environment is

a) Environmental management
b) Environmental scanning
c) Marketing management
d) Marketing research

Question 6

The five dimensions usually considered to constitute the environment of marketing include
all of the following except:
a) Political considerations
b) Global factors
c) Competitive aspects
d) Economics issues

Question 7

Marketing decision makers in a firm must constantly monitor competitors' activities-their

products, prices, distribution, and promotional efforts-because
a) The competitors may be violating the law and can be reported to the authorities
b) The actions of competitors may threaten the monopoly position of the firm in its
industry
c) The actions of competitors may create an oligopoly within an industry
d) New product offerings by a competitor with the resulting competitive variations may
require adjustments to one or more components of the firm's marketing mix

Question 8

When looking at consumer income, marketers are most interested in

 a) Discretionary income
b) Deferred income
c) Inflationary income
d) Disposable income

Question 9

New technology results in new goods and services, and it also can
a) Lower the quality of existing products
b) Lower the available level of customer service
c) Reduce prices through new production and distribution methods
d) Bring back products that were considered obsolete

Question 10

Toyota's Prius and Honda's hybrid Civic are examples of technological products inspired
by:
a) Style considerations in the Japanese automobile industry
b) Social pressure to develop more fuel-efficient vehicles with fewer dangerous
emissions
c) The desire of many engineers to simply make interesting products
d) The realization that Japanese people didn't need large, high-speed cars

Question 11

_____ is the collection and interpretation of information about forces, events, and
relationships that may affect the organization.
a) Environmental scanning
b) Stakeholder analysis
c) Market sampling
d) Opportunity analysis

Question 12

Assume you are in charge of the politically-mandated process of converting the economy
of a developing African nation from state-controlled to market-driven business ventures.
Your ability to control _____ will most likely determine the future success of the country
and its government.
 a) The culture
b) Marketing
c) Technology
d) Competitive environment

Question 13

Marketing managers cannot control ____, but they can at times influence it.
a) Where advertising is placed
b) The sales force
c) The external environment
d) How products are priced

Question 14

As technology continues to offer more different methods for shopping on the Internet,
manufacturers and traditional retailers are finding themselves in direct competition with
each other. In this case, unless marketing managers understand _____, manufacturers
and retailers cannot intelligently plan for the future.
a) Their competitors' strategies
b) The economic conditions which influence the growth of technology
c) Changing social attitudes towards technology
d) All of these

Question 15

The external environment

a) Can be controlled in much the same manner as the internal marketing mix
b) Does not change over time
c) Does not have an impact on Fortune 500 companies
d) Must be continually monitored by marketing managers

Question 16

The differentiation of a firm’s products or services to promote environmental responsibility

is referred to as:
a) Social branding
 b) Eco-branding
c) Me-too branding
d) Brand personality

Question 17

Which of the following elements is NOT part of Porter’s 5-forces model for industry
competitiveness?
a) Threat of substitutes
b) Threat of suppliers
c) Power of buyers
d) Threat from government players

Question 18

A market with which of the following characteristics would generally be less competitive?
a) High barriers to entry
b) Lots of potential substitutes exist
c) Strong bargaining power among buyers
d) Strong bargaining power among suppliers

Question 19

To evaluate an organization’s Strategic Business Units (SBU), the Boston Consulting

Group developed a portfolio performance framework that characterizes some of the SBUs
as:
a) Question marks
b) Quick winners
c) Charging bulls
d) Cash outs

Question 20

The quadrant of the Boston Consulting Group (BCG) matrix that represents both a high
market share and a high rate of market growth includes the:
a) Cash cows
b) Achievers
 c) Stars
d) Strivers

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Chapter 02
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questions
• Essay questions Question 1
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photos from the book
Which of the following is NOT part of the external marketing environment?
• Marketing Resource
Bank directory of links Your Answer:
• Online cases
c) Product
• PowerPoint slides
• PowerPoint slides to Feedback:
accompany academic
guest lectures
In order to make sense of the external environment we use a framework known as
• Test bank and one of the most popular frameworks with which to examine the external enviro
• Guide to academic formerly referred to as PEST analysis but the recent rise in concern and awarenes
insights video climatic issues has impacted on most organizations. PESTLE therefore stands for
• Guide to practitioner Technological, Legal, and Ecological environments.
insights video
• Practitioner insights for
Page reference: 51
chapters 9, 15 and 17
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Question 2
• Business & Economics
Learn about:
• Online Resource Centres
Car (automobile) designers world-wide began working on plans for a dual energy c
• VLE/CMS content Your Answer:
• Test banks b) The legal tolerance for noxious emissions from automobiles began to be reduce
• Demonstration resources
• Help
Feedback:
• Your feedback Here we can see how the legal environment has influenced new product developm
legal environment covers every aspect of an organization's business. Laws and re
• From our countries ranging from the transparency of pricing, the prevention of restrictive trad
catalogue pages: business taxes, product safety, good practice in packaging and labelling, the abus
• Find a textbook
codes of practice in advertising, to take just a small selection. As such it is very im
understanding of the implications the law and changes in the law can have on mar
• Find your local rep
Page reference: 59

Question 3

A firm has decided to alter its pricing and promotional strategies in response to slo
declining personal incomes. The firm is responding to changes in its:
Your Answer:
c) Economic environment
Feedback:
The firm is responding to changes in the economic environment. Companies and o
understanding of the economic environment in which they operate and trade. This
economic circumstances have an impact on what economists term factor prices w
particular firm or organization. These factors could include raw material, labour, bu
indeed any other input to a business.
Page reference: 53

Question 4

Robert is a marketer for a global consumer products company. He is working on th

to reach a target audience in a new international market. Robert is working hard to
campaign is clearly understood by the nation's consumers and doesn't offend anyo
external environment is he being influenced by?
Your Answer:
a) Socio-cultural environment
Feedback:
Robert is influenced by the country's socio-cultural environment. Lifestyles are con
are constantly shifting their preferences over time. Companies that fail to recogniz
environment, and change their goods/service mix accordingly, typically fail.
Page reference: 55
Question 5

The process of collecting information about the external marketing environment is

Your Answer:
b) Environmental scanning
Feedback:
In order to understand how the elements in the external environment are changing
put in place methods and processes to inform them of developments. A key proce
According to Aguilar (1967), environmental scanning is the process of gathering in
external events and relationships, in order to assist top management in its decision
course of action.
Page reference: 69

Question 6

The five dimensions usually considered to constitute the environment of marketing

Your Answer:
b) Global factors
Feedback:
The marketing environment is best understood by considering the degree to which
various forces acting on it. The external environment, for example, consists of the
influences, and organizations have relatively little influence on each of these. The
of the competitors, suppliers, and indirect service providers who shape the way an
objectives. Here, organizations have a much stronger level of influence. The intern
resources, processes, and polices an organization manages in order that it can att
Page reference: 50

Question 7

Marketing decision makers in a firm must constantly monitor competitors' activities

and promotional efforts-because
Your Answer:
d) New product offerings by a competitor with the resulting competitive variations m
more components of the firm's marketing mix
Feedback:
Competitors are part of an organisations performance environment and can direct
marketing activities. Hence is it imperative to constantly monitor competitor's activ
advantages in our operations.
Page reference: 72-77

Question 8

When looking at consumer income, marketers are most interested in

Your Answer:
d) Disposable income
Correct Answer:
a) Discretionary income
Feedback:
A consumer's discretionary income is part of the economic environment and can in
consumer has to spend on goods and services. As such organisations have to dev
economic environment in which they operate and trade.
Page reference: 53

Question 9

New technology results in new goods and services, and it also can
Your Answer:
c) Reduce prices through new production and distribution methods
Feedback:
The emergence of new technologies can substantially affect not only high-technolo
businesses. Examples include those aspects of technology which impact upon pro
new product development and distribution (e.g. changes in energy, transportation,
technologies).
Page reference: 57

Question 10

Toyota's Prius and Honda's hybrid Civic are examples of technological products in
Your Answer:
b) Social pressure to develop more fuel-efficient vehicles with fewer dangerous em
Feedback:
Increasingly, consumers are worried about the impact of organisations on their eco
demanding products that are more ecologically friendly, which incorporates the pri
animals, society and the environment.
Page reference: 65

Question 11

_____ is the collection and interpretation of information about forces, events, and
organization.
Your Answer:
a) Environmental scanning
Feedback:
In order to understand how the elements in the external environment are changing
put in place methods and processes to inform them of developments. A key proce
According to Aguilar (1967), environmental scanning is the process of gathering in
external events and relationships, in order to assist top management in its decision
course of action.
Page reference: 69

Question 12

Assume you are in charge of the politically-mandated process of converting the ec

nation from state-controlled to market-driven business ventures. Your ability to con
determine the future success of the country and its government.
Your Answer:
d) Competitive environment
Correct Answer:
b) Marketing
Feedback:
Marketing is concerned with managing controllable variables (the marketing mix) w
environment. Because there has been a politically mandated process of economic
market-driven, marketing issues would be of paramount concern.
Page reference: 50 and 53

Question 13

Marketing managers cannot control ____, but they can at times influence it.
Your Answer:
c) The external environment
Feedback:
The external environment is basically uncontrollable, but the other four answers ar
Page reference: 51

Question 14

As technology continues to offer more different methods for shopping on the Intern
retailers are finding themselves in direct competition with each other. In this case,
understand _____, manufacturers and retailers cannot intelligently plan for the futu
Your Answer:
c) Changing social attitudes towards technology
Correct Answer:
d) All of these
Feedback:
By understanding all elements of the marketing environment to considering the de
influence the various forces acting on it. The external environment, for example, co
technological influences, and organizations have relatively little influence on each
environment consists of the competitors, suppliers, and indirect service providers w
achieves its objectives. Here, organizations have a much stronger level of influenc
concerns the resources, processes, and polices an organization manages in order
goals.
Page reference: 50

Question 15

The external environment

Your Answer:
d) Must be continually monitored by marketing managers
Feedback:
In order to understand how the elements in the external environment are changing
put in place methods and processes to monitor trends in the external environment
scanning. According to Aguilar (1967), environmental scanning is the process of g
company's external events and relationships, in order to assist top management in
develop its future course of action.
Page reference: 69

Question 16

The differentiation of a firm’s products or services to promote environmental respo

Your Answer:
b) Eco-branding
Feedback:
This is eco-branding. This is the differentiation of a firm’s products or services to p
responsibility. Examples include Duchy Originals, the British Prince of Wales’ food
Golden Place brand, or the Toyota Prius labelled as ‘mean but green’. Another exa
Petroleum—who changed their logo to make it green and yellow in a flower petal a
the Helios, and slogan to ‘beyond petroleum’ to reflect their intended shift in meeti
to more sustainable sources.
Page reference: 66

Question 17

Which of the following elements is NOT part of Porter’s 5-forces model for industry
Your Answer:
d) Threat from government players
Feedback:
Porter suggests that competition in an industry is a composite of five main compet
threat that new competitors will enter the market, the threat posed by substitute pr
of both buyers and suppliers. These in turn affect the fifth force, the intensity of riv
competitors. Porter called these variables the Five Forces of Competitive Industry
Page reference:73

Question 18
A market with which of the following characteristics would generally be less compe
Your Answer:
a) High barriers to entry
Feedback:
Porter suggests that competition in an industry is a composite of five main compet
threat that new competitors will enter the market, the threat posed by substitute pr
of both buyers and suppliers. These in turn affect the fifth force, the intensity of riv
competitors. Porter called these variables the Five Forces of Competitive Industry
Page reference: 73

Question 19

To evaluate an organization’s Strategic Business Units (SBU), the Boston Consult

performance framework that characterizes some of the SBUs as:
Your Answer:
a) Question marks
Feedback:
One of the popular methods for assessing the variety of businesses/products that
creation of a two-dimensional graphical picture of the comparative strategic positio
a product portfolio or portfolio matrix. The Boston Consulting Group (BCG) was de
Question marks (also known as ‘problem children’) are products that exist in growi
share. As a result there is negative cash flow and they are unprofitable.
Page reference: 79

Question 20

The quadrant of the Boston Consulting Group (BCG) matrix that represents both a
of market growth includes the:
Your Answer:
c) Stars
Feedback:
One of the popular methods for assessing the variety of businesses/products that
creation of a two-dimensional graphical picture of the comparative strategic positio
a product portfolio or portfolio matrix. In the Boston Consulting Group (BCG) matri
leaders but their high growth and market share has to be financed through fairly he
Page reference: 79

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