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70) Watching the cultural trends of how people view others, observers have noted an increased interest in

70) Watching the cultural trends of how people view others, observers have noted an increased interest in ________.

A)socializing with co-workers

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B)going out less and staying home more


D)do-it-yourself projects

E)adventurous experiences

71) Trends in people’s views of organizations indicate that which of the following has increased in the past twenty years?

A)employees’ loyalty to their employers

B)confidence in American politicalorganizations

C)distrust in big American businesses

D)distrust in small, localbusinesses

E)employees’ view ofwork as a source of satisfaction

72) Watching the culturaltrends of how people view society, observers have noted that since September 11, 2001, marketers responded to the increased ________ of Americans with special products and promotions.




D)foreign intolerance



73) Which of the following is a potentialdownside to using patriotic themes in marketing programs?

A)Levels ofpatriotism fluctuate rapidly.

B)Patriotism has been on the decline in the past decade.

C)Such promotions can be viewed as attempts to gain fromothers’ triumph or tragedy.

D)Americans are less confident in politicalorganizations.

E)Few marketers currently use this technique.

74) Cultural forecasters have noted a renewed American interest in ________.

A)dominating and taming nature

B)the fine arts

C)work as a source of satisfaction and self-definition


E)organized religion

75) Marketers can take a(n) ________ by taking aggressive action to affect the publics and forces in their marketing environments.


B)proactive stance


D)natural management perspective

E)relationship building perspective

76) When the marketing manager Suzie Kwan discusses factors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers, she is talking about the external marketing concept.

Answer: FALSE

77) Marketers, more than any other group in the company, must be aware of the microenvironment and macroenvironment, tracking trends and seeking opportunities:

78) The microenvironment consists of larger societal forces that affect a company, such as demographic, economic, political, and cultural forces.

79) The macroenvironment consists of the factors close to the company that affect its ability to service its customers, such as suppliers, customer markets, competitors, and publics.

80) 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.

81) Marketing research firms, advertising agencies, media firms, and marketing consulting firms are all referred to as marketing services agencies.

82) Today’s marketers should view their intermediaries as channels through which they sell their products rather than as full-fledged partners.

83) No single competitive marketing strategy is best for all companies.


84) Consumer organizations such as environmental and minority groups that may question a company’s marketing decisions are referred to as localpublics.

85) As an employee of Bonkers Enterprises, Brianna Jones markets wild and crazy games for teens to play at parties. Brianna’s customer market is a business market.

86) The demographic environment is of major interest to marketers because it involves people, and people make up markets.

87) The single most important demographic trend in the United States that marketers should understand is the changing family structure.

88) As baby boomers reach their peak earning and spending years, they represent markets forhigh-ticket items.

89) Once thought ofas slackers, Gen Xers are now displacing the lifestyles, culture, and materialistic values of the baby boomers.


90) Millennials comprise the most commercially influentialdemographic group in American history.

91) Millennials represent a larger demographic segment than the baby boomers or Gen Xers.

92) Marketers must increasingly consider the needs of traditional households because this segment of the population is growing more rapidly than nontraditional households.

93) Recent shifts in where people live have led to shifts in where people work.

94) The American workforce today is better educated and more white-collar than it was a generation ago.

95) Major companies in several industries are now directly targeting gay and lesbian consumers.

96) Diversity in America is increasing, and successful marketers are increasingly diversifying their marketing programs to appeal to different segments of the population.

97) Most household income is used up in purchasing food, housing, and transportation.

98) According to Engel’s laws, consumers tend to spend a larger percentage of income on savings as income rises.

99) Significant trends in the naturalenvironment include shortages ofraw materials, increased pollution, and decreased government intervention.

100) Environmental concerns have been on the decline in the past decade; more government legislation and the green movement may be the cause of this trend.

101) The introduction of new technologies is beneficial to all industries, as new markets and opportunities are created.

102) Cause-related marketing is a slowing trend as companies have abused the practice, using it more to increase sales than to support worthwhile causes.

103) In the culturalenvironment, core values and beliefs and secondary values and beliefs differ in that core values and beliefs are more open to change.

104) When a company hires lobbyists to influence legislation affecting its industry, it is taking a reactive approach to the marketing environment.

105) A company that experiences negative word of mouth on blogs or social networking sites should ignore rumors, as answering any complaints will only make them seem more legitimate.

106) Who are the major players in a company’s microenvironment? What roles do they play?

107) In a short essay, differentiate between the basic marketing intermediaries.

108) In marketing, what is a public? Briefly describe the seven main types ofpublics faced by marketers and explain how marketing might communicate with these publics.

109) How can marketers use information about the demographic environment?

110) Explain the impact of the baby boomers, Generation X, and Millennials on today’s marketing strategies.


111) What are the major trends in today’s naturalenvironment? How do these trends affect companies?

112) Why is the technological environment such a dramatic force in today’s market?

113) Describe the three main reasons that business legislation is enacted.

114) What is cause-related marketing? Give two examples ofthe practice and explain why companies participate in cause-related marketing.


115) What is the cultural trend in how people view nature? How does this affect marketers?

116) LandPort Transportation and Omega Warehousing move and store the products your company sells. The two businesses are examples of________.


B)marketing services agencies

C)marketing intermediaries

D)physicaldistribution firms

E)geographic segments

117) Currently, Diego Calabresa is employed by a firm that conducts marketing research and creates ads for other companies that help them target and promote their products to the right markets. Who is Diego’s employer?

A)a financial intermediary

B)a physicaldistribution firm

C)a marketing service agency

D)a reseller

E)a green marketer

118) ING, an international insurance and financialservices company, is the primary sponsor of the annualNew York City Marathon, which is attended by over one million fans and watched by approximately 300 million viewers worldwide. The ING logo and name appear throughout the race course. ING most likely sponsors the event in order to appeal to which type of public?







Copyright © 2011 Pearson Education, Inc.

119) Ifbaby boomers are predictors of where product and service demand will be, increased demands will most likely be evident in ________ in the coming years.

A)university enrollment

B)beer and wine


D)the apparel industry

E)the organic food industry

120) Noora DeLange is helping her company develop a marketing program for a new product line. The program involves emphasizing experience over acquisition and uses a marketing pitch that is less overt than the company’s previous programs. The marketing program is most likely designed to appeal to which ofthe following demographic groups?

A)Gen Xers

B)nontraditional households

C)”micropolitan” populations


E)manufacturing workers

121) Which of the following best explains why Gen Xers who are parents tend to put family before career?

A)Gen Xers were the first generation of latchkey kids.

B)Gen Xers were minimally affected by the recent economic downturn.

C)Gen Xers are more skepticalabout marketing than members ofother generations are.

D)Gen Xers are not as educated as members ofother generations are.

E)Gen Xers do not face as many economic pressures as members ofother generations do.

122) Wholesome Soups, a maker oforganic soups, is starting a new marketing campaign emphasizing the ease ofpreparing and eating Wholesome Soups on the go. Print, television, and Internet ads featurecollege-aged 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


C)Gen Xers


E)the SOHO market

123) In considering the changing American family, which ofthe following are marketers likely to consider the LEAST important?

A)The number oftraditional households has increased.

B)Baby boomers are hitting retirement age.

C)Almost one-third of American households are not traditional families.

D)Married couples with children make up less than 25% of the nation’s households.

E)The number ofstay-at-home fathers has increased in the past 20 years.

124) Which of the following demographic trends is likely the most responsible for the increasing number ofpeople who telecommute?

A)the migration toward micropolitan and suburban areas

B)the move from rural to metropolitan areas

C)the increasing number of nontraditional households

D)the growing percentage of married couples who do not have children

E)the declining number of manufacturing workers

125) Chet Hoffman’s chain of travel agencies has identified the lesbian, gay, bisexual, and transgender community as a growing market that spends an increasing percentage of its income on travel. Which of the following would be the least effective component of a marketing plan for Chet to take advantage of this opportunity?

A)develop a presence on LGBT-oriented social networking sites

B)position his agency as focused on specialized experiences

C)implement a mass marketing campaign

D)place specially-targeted ads in gay-themed publications

E)advertise on LOGO

126) With an expected increase in ethnic diversity, marketers are likely to place a greater emphasis on ________.

A)geographic segmentation

B)differing advertising messages

C)mass marketing

D)”us and them” paradigms

E)tiered markets

127) Jack Weiss recently won a $10 million lottery. Jack’s life will change a great deal, particularly how he spends money. According to Engel’s laws, Jack is LEAST likely to change the percentage of his income that he spends on which of the following?






128) A marketer ofpesticides should be the least concerned about which of the following?

A)shortages of raw materials

B)increased pollution

C)increased government intervention

D)persistence ofcultural values

E)chemical pollutants in the food supply

129) The green movement will likely spark the least interest in which of the following?

A)recycling programs

B)environmentally sustainable strategies

C)social responsibility

D)Internet usage


130) Norma Bernanke is a marketer at a pharmaceuticalcompany that has just developed a new medication to treat asthma. Which of the following components ofthe political environment should Norma be least concerned with as her company begins to develop a marketing plan for the new product?

A)approval fromthe Food and Drug Administration (FDA)

B)state laws regulating advertising ofpharmaceuticals

C)laws enforced by the Federal Trade Commission

D)the Fair Packaging and Labeling Act

E)the Nutrition Labeling and Education Act

131) Which of the following is an example of a core belief?

A)Marriage is important.

B)Americans should display their patriotism.

C)The comforts of home are more important than entertainment outside of the home.

D)Extended warranties are never worth the money consumers pay for them.

E)Professionals should wear business clothes to work.

132) Consumers undertaking which of the following would be most likely to be identified as “cocooning” or “nesting”?

A)taking a cruise

B)taking up a new sport

C)having a home entertainment center installed

D)hiking the Grand Canyon

E)traveling to Asia

133) Increased marketing of home amenities such as high-end barbeques, hot tubs, and home entertainment centers has most likely been spurred by Americans’ changing views of________.

A)social responsibility





134) Assume that you are a manager at a firm that has hired lobbyists to influence legislation affecting your firm’s industry to its advantage. Your firm takes a(n) ________ approach to the marketing environment.





E)team work

135) Which of the following forces would marketers be most likely able to influence?

A)geographic population shifts

B)core cultural values

C)income distribution

D)increasing ethnic diversity

E)media publics

136) How have large retailers such as Wal-Mart changed the dynamics behind partnering with resellers?


137) How have China’s regulations over the past generation limiting family size to one child per couple affected businesses?

138) How do baby boomers today differ fromprevious generations as they neared and reached their sixties?

139) What are some components ofa successful marketing programaimed at Millennials?

140) What are two potential drawbacks ofcreating separate products and marketing programs for each generation?

141) Why might marketers want to target segments ofthe population based on lifestyles rather than age groups?

142) Give two characteristics of the American family that depict its “nontraditional” nature.

143) Why has a growing portion ofthe American population shifted to “micropolitan areas”?

144) How might geographic shifts in population impact marketers?


145) In terms of ethnic and racial makeup, why is the United States today more accurately characterized as a “salad bowl” than a “melting pot”?

146) Why have companies such as IBM and Levis targeted the lesbian, gay, bisexual and transgender community with specifically tailored marketing efforts?

147) Briefly explain why Americans amassed record amounts ofdebt in the 1990s and why thefree-spending trend has ended.

148) Briefly explain the following statement: “The distribution of income has created a tiered market.”

149) Why might it be beneficial for marketers to help develop solutions to problems facing the natural environment, such as increased pollution and shortages of raw material?


150) What is meant by the “green movement”?

151) One purpose of government regulation is to protect consumers from unfair business practices. List two areas in which this may occur.


152) How might a marketer act in a socially responsible way toward the general public?

154) What is the difference between a core belief and a secondary belief?

155) Why is it important for marketers to understand people’s views of themselves?

156) What steps might a marketer take to shift froma reactive stance to the marketing environment to a more proactive stance?


Casey Brickly opened The Landing on the north shore ofWitmer 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 being 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 fast speed boats became all the rage. And 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 ofany 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.”

As the 1990s approached, the atmosphere ofWitmer Lake and the neighboring lakes became more 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 originalowners. 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.”

157) What microeconomic forces have impacted The Landing the most?

Copyright © 2011 Pearson Education, Inc.

158) What macroeconomic forces have impacted The Landing the most in the long run? 159) Which macroeconomic force may be most responsible for The Landing’s 43-year survival? Answer: The natural environment–namely, Witmer Lake–has been most responsible for attracting consumers to the area. It is the one macro force that has remained constant.

160) What political forces, ifany, are evident in this scenario?

161) How has the baby boompopulation affected business at The Landing in the past four decades?

162) What demographic forces have likely influenced the recent upscale atmosphere of the area surrounding Witmer Lake?


163) Some of the older patrons of The Landing have spoken negatively about the conversion of the diner into a bar. What are two examples ofsocial responsibility that Casey could embrace in an effort to offset that negativity?

164) What possible shifts in cultural values may once again affect Casey’s mission at The Landing?

165) What might allow Casey Brickly to now take a more proactive stance in responding to the marketing environment?

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