Harran University - Yeniehir Campus

MGT 201 201

Chapter 2 The Market in Marketing

1)Which of the following terms is used to describe the set of forces that influence the ability of a business to create value and attract and serve customers?

 

 

2. The                    of a business is made up of all the activities that occur within the organizational functions of the business.

 

 

3. Employees are part of a company's              .

 

 

4. The implementation of marketing practices directed outside the business to create value and to form productive customer relationships is called       .

 

 

5. Most businesses focus the majority of their marketing efforts toward managing the     .

 

 

6. A firm's internal environment does NOT include              .

 

 

7. Which of the following are NOT part of a company's external environment?

 

8. You are directed to study the actors close to the company, yet outside its internal environment, that affect its ability to serve its customers. What are you studying?

 

 

9. Which of the following are NOT part of a company's micro-environment?

 

 

10. Porter's Five Forces of Competitive Position Model are used to determine where the power exists in a company's                                                                                                                                                                                                           .

 

 

11. Which of the following is NOT one of the forces in Porter's Five Forces of Competitive Position Model?

 

 

12. A company would most likely use the Porter analysis for which of the following?

 

 

13. A supplier with which of the following is likely able to exert the most power over a company?

 

 

14. The                     buyers that are available in a market, the              an individual buyer is to a business.

 

 

 

 

15. You are directed to study the cultural, economic, technological, political, and legal factors that are larger forces affecting your company. What are you studying?

 

 

16. The                     environment consists of factors that affect consumer purchase ability and buying behavior.

 

 

17.                     is an increase in the price of a collection of goods that represent the overall economy.

 

 

18. Which of the following is the most likely result when average income levels do not keep pace with inflation?

 

 

19. Income levels are average                used to approximate national earnings.

 

 

20. The unemployment level is determined by the number of unemployed persons divided by the  .

 

 

21. Your marketing department is currently researching the age, race, and household structures of your target market. Which environment is being researched?

 

 

22.                     are characteristics of human population that are used to identify markets.

 

23. As consumers age, which of the following generally happens?

 

 

24. The                     environment includes factors that relate to the nature, quantity, and potential actions of a company's competitors.

 

 

25. Business legislation has been created for three basic reasons: to protect companies from each other, to protect consumers, and to

                   .

 

 

26. Marketers should be aware of laws and government regulations that influence or limit various organizations and individuals in a given society. This is most accurately described as the            environment.

 

 

27. The U.S. Consumer Product Safety Commission and the Food and Drug Administration are most accurately characterized as part of the      environment.

 

 

28. Under which system of government is everything controlled by the government?

 

 

 

 

29. By definition, the                   environment focuses on scientific activities and innovations.

 

 

30. The consumer market is made up of which of the following?

 

 

31. Percy Original caters to a market of individuals and households that are the end users of the company's products and services. Percy Original caters to a             market.

 

 

32. By definition, a consumer product is intended to do which of the following?

 

 

33. Which of the following best explains how consumers make purchase decisions in consumer markets?

 

 

34. By definition, a consumer's surplus occurs when             .

 

 

35. A consumer's surplus represents an advantage for          .

 

 

36. Every consumer brand strives to be both              and                   .

 

 

37. Members, of which type of market buy goods and services that are used in, or in support of, the production of other products or

services?

 

 

38.                     involves the sale of products and services from one business to another.

 

 

39. In marketing terms, B2B stands for                .

 

 

40. Which of the following is  about business marketers in comparison to consumer marketers?

 

 

41.                     for a product or service results from the demand for another product or service.

 

 

42. A business buyer who is considering a change in product specifications, terms, and possibly suppliers is most likely in a

                    situation.

 

 

 

 

 

43. Large business purchasers usually call for detailed product specifications, written purchase orders, careful supplier searches, and formal approval. These are all examples of how the business buying process is more       than the consumer buying process.

 

 

44. The group of people in an organization who participate in the procurement process is referred to as the  .

 

 

45. The first step of the business buying process is             .

 

 

46. Empire Products have begun a process to find the best suppliers. Empire Products are actively engaged in which step of the buyer purchase process?

 

 

47. In the generally accepted stages of the business buying process, the step following the description of the characteristics of the item and the quantity needed is the         .

 

 

48. In the generally accepted stages of the business buying process, the step following the recognition of the organizational problem or need is the   .

 

 

49. When deciding how to fulfill a purchasing need, a business would most likely find making the product on on its own to be the best option when            .

 

 

50. When deciding how to fulfill a purchasing need, a business would most likely find leasing the product to be the best option when .

 

51. In recent years, security regulations initiated by the federal government through the Transportation Safety Administration affected Southwest Airlines. These regulations are part of the  affecting this airline.

 

 

52. Which of the following is NOT an example of external marketing?

 

 

53. Which of the following is a consumer product?

 

 

54. Which of the following is the best example of a consumer market that is saturated with brands?

 

 

55. Which of the following is NOT part of the business market?

 

 

56. Which of the following is an example of a B2B transaction?

 

 

57. Innovations are a producer of electronic circuits that power a variety of technological devices produced by other companies. Innovations sells its products to      markets.

 

 

58. You regularly purchase cleaning supplies for your custodial staff, using the same vendor and ordering relative consistent amounts of the same products with each purchase. This is an example of a situation.

 

 

59. Worthington Farm raises chickens. For years, it has used wooden coops for hauling its poultry to market. The owner of the farm needs to buy some replacement coops and is considering buying plastic coops that are slightly more expensive than wooden ones but much easier to clean after use. This purchase of coops is an example of a       .

 

 

60. The EPA has mandated that, in order to reduce local pollution, your printing plant switch from oil-based to water-based inks. This will require entirely new printing presses and a new printing plate technology. After carefully searching through numerous manufacturers' equipment descriptions and gathering opinions from all relevant parties related to the work, the printing plant's buying center will be ready to make this             purchase.

 

 

61. A trucking company is considering purchasing new trucks that are powered by ethanol instead of diesel fuel. In terms of the

buying center, the truck drivers who must make sure that the trucks' fuel tanks do not run out of fuel are the .

 

 

62. Don Brady is responsible for obtaining price quotations from various vendors. After reviewing the vendors' proposals, Don then

determines whether or not to send each vendor a contract. Don apparently plays two roles in the buying center, that of

                   .

 

 

and

 

63. Business marketers often alert customers to potential problems and then show how their products provide solutions. These marketers are hoping to influence which stage of the business purchase process?

 

 

Refer to the scenario below to answer the following questions.

 

Casey Brickly opened The Landing 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 lake needs?rods and reels, bait, fishing licenses, snacks, soft drinks?at The Landing. Even during the winter months, snowmobilers and ice fishermen were lured to The Landing for a snack 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 year-round residential area. Many of the houses, which were built as cottages in the 1950s and 1960s, were remodeled into year- round homes. By the end of the 1970s, the days of small motor boats and 10 mile-per-hour speed limits were gone; skiing and speed boats became all the rage. For some time, 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."

 

By 2005, the atmosphere of Witmer Lake and the neighboring lakes had become 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 being 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 atmosphere 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."

 

 

64. Which micro-environment factors have affected The Landing the most?

 

 

65. Which of the following macro-environmental forces have had the greatest effect on The Landing?

 

 

66. Marketing practices implemented within a company are considered internal marketing.

 

 

 

67. The micro-environment and the macro-environment are both parts of a company's external environment.

 

 

 

68. In general, companies are placing less emphasis on internal marketing than they have in the past.

 

 

 

69. The micro-environment consists of larger societal forces that affect a company, such as economic, political, and cultural forces.

 

 

 

70. The threat of substitutes can reduce the power of a business.

 

 

 

71. Any change in the status of a competitor will affect the power a business is able to exert in its market and industry.

 

 

72. The macro-environment consists of the factors close to but not within the company that affect its ability to serve its customers.

 

 

 

73. An increase in the unemployment level generally increases the ability of individuals to purchase products and services.

 

 

 

74. Marketers must increasingly consider the needs of traditional married households because this segment of the population is growing more rapidly than single-family households.

 

 

 

 

 

 

75. Consumer organizations such as environmental and minority groups that may question a company's marketing decisions are part of the political environment.

 

 

 

76. More than one-third of the American consumer buying power comes from California, Texas, New York, and Florida.

 

 

 

77. Consumer markets are, by definition, very large.

 

 

 

78. A consumer product may be intended for individual or business use.

 

 

 

79. Marketing can influence consumers' perceptions of a product's utility.

 

 

 

80. A business marketer normally deals with far fewer buyers than a consumer marketer does.

 

 

 

81. As a part of the human resources department of her company, Jenna makes sure that employees are made aware of and understand changes to the company's policies. Jenna is engaged in a type of marketing.

 

 

 

82. A company markets wild and crazy games for teens to play at parties. This is an example of a business market.

 

 

 

83. Of the different types of buying situations, the modified rebuy presents the fewest decisions for a business buyer to make.

 

 

 

84. Give two examples of how companies can gather information to respond to changes in the micro-environment.

 

 

85. How might a company try to influence its macro-environment?

 

 

86. Explain the relationship between the number and size of buyers for a product or service and the level of power those buyers can exert on a company.

 

 

87. Angela's company is trying to determine whether to enter a new market segment. How might her company use Porter's Model to make a decision?

 

 

88. Explain how marketers have responded to the growing diversity in the United States.

 

 

89. Explain why a consumer may decide not to purchase a product or service she wants even though it offers a significant consumer surplus.

 

 

90. Explain why national marketers might pay particular attention to the preferences of consumers in large states such as New York and California.

 

 

91. Which business buying situation is the marketer's greatest opportunity? Why?

 

 

92. In which type of buying situation would a supplier most likely focus on maintaining product and service quality? Why?

 

 

93. Although a company has purchased printers and copiers before, Xerox now offers the firm a multitasking machine that prints, copies, scans, and faxes. Explain what type of buying situation this is.

 

 

94. Identify and describe the main components of a company's marketing environment.

 

 

95. Briefly describe how the demographic makeup of the United States is changing.

 

96. Explain how a consumer market is determined and give two examples of consumer markets of different size.

 

 

 

 

 

 

97. Briefly explain how brands influence purchase decisions in consumer markets.

 

 

98. Explain how the decision process in the business market and consumer market differs.

 

 

99. Compare and contrast the three major types of business buying situations.

 

 

100. List the eight steps in the complete buyer purchase process in their correct order.