Chapter 3: Gathering Information and Scanning the Environment

GENERAL CONCEPT Q ESTIONS !"#tip#e Choice

1. The major responsibility for identifying significant marketplace changes falls to the ________. a. U.S. Department of Labor b. companys marketers c. American arketing Association d. ind!stry lobby gro!ps fo!nd in "ashington D.#. e. marketing research ind!stry Ans$er% b &age% '' Diffic!lty% (asy ). All of the follo$ing *!estions (+#(&T one $o!ld be considered to be forms of information needs probes. "hich one, a. "hat decisions do yo! reg!larly make, b. "hat information do yo! need to make decisions, c. "hat data analysis programs $o!ld yo! $ant, d. "hat maga-ines and trade reports $o!ld yo! like to see on a reg!lar basis, e. "hat prod!cts $o!ld be most closely matched to cons!mer needs, Ans$er% e &age% '. Diffic!lty% edi!m AA#S/% Analytic Skills 0. ________ consists of people1 e*!ipment1 and proced!res to gather1 sort1 analy-e1 e2al!ate1 and distrib!te needed1 timely1 and acc!rate information to marketing decision makers. a. A marketing information system b. A marketing research system c. A marketing intelligence system d. A promotional campaign e. A marketing database Ans$er% a &age% '. Diffic!lty% edi!m AA#S/% Analytic Skills 3. The companys marketing information system sho!ld be a cross bet$een $hat managers think they need1 $hat managers really need1 and ________. a. $hat the marketing research department is able to do b. $hat cons!mers are $illing to share c. $hat the competition is doing d. $hat is acceptable ind!stry practice e. $hat is economically feasible Ans$er% e &age% '. Diffic!lty% edi!m AA#S/% 4eflecti2e Thinking

'5

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

&art )% #apt!ring

arketing 8nsights

:. The heart of the internal records system is the ________. a. database b. asset ac*!isition process c. order;to;payment cycle d. ser2ice consideration e. information li*!idity ratio Ans$er% c &age% '. Diffic!lty% 9ard '. "hen a marketer <mines= his or her companys database1 fresh insights can be gained into neglected c!stomer segments1 ________1 and other !sef!l information. a. recent c!stomer trends b. long;term competiti2e trends c. possible ne$ in2entions d. possible ne$ technologies e. ne$ primary data possibilities Ans$er% a &age% '7 Diffic!lty% edi!m AA#S/% Analytic Skills .. The internal records system s!pplies res!lts data1 b!t the marketing intelligence system s!pplies ________ data. a. conc!rrent b. secondary c. research d. happenings e. premi!m Ans$er% d &age% '7 Diffic!lty% edi!m AA#S/% 4eflecti2e Thinking >. A ________ is a set of proced!res and so!rces managers !se to obtain e2eryday information abo!t de2elopments in the marketing en2ironment. a. marketing research system b. marketing information system c. prod!ct management system d. marketing intelligence system e. 2ertical system Ans$er% d &age% '7 Diffic!lty% edi!m AA#S/% Use of 8T 7. A company can take se2eral steps to impro2e the *!ality of its marketing intelligence. 8f the company p!rchases competiti2e prod!cts for st!dy1 attends open ho!ses and trade sho$s1 and reads competitors p!blished reports and stockholder information1 the company is !sing ________ to impro2e the *!ality of its marketing intelligence. a. sales;force s!rrogates b. intermediaries c. e?ternal net$orks d. ad2isory panels e. c!stomer feedback systems Ans$er% c &age% '7 Diffic!lty% 9ard AA#S/% Analytic Skills

'1

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

#hapter 0% @athering 8nformation and Scanning the (n2ironment

15. All of the follo$ing $o!ld be considered to be steps to impro2e the *!ality of marketing intelligence in a company (+#(&T ________. a. training and moti2ating the sales force to spot and report ne$ de2elopments b. !sing g!errilla tactics s!ch as going thro!gh a competitors trash c. moti2ating intermediaries to pass along important information d. net$orking e?ternally e. p!rchasing information from o!tside s!ppliers Ans$er% b &ages% '7A.1 Diffic!lty% (asy AA#S/% (thical 4easoning 11. The )555 U.S. cens!s pro2ides an in;depth look at the pop!lation s$ings1 demographic gro!ps1 regional migrations1 and changing family str!ct!re of )>1B million people. "hich of the follo$ing steps to impro2e the *!ality of a company marketing intelligence system $o!ld be most closely associated $ith this ill!stration, a. A company can p!rchase information from o!tside s!ppliers. b. A company can take ad2antage of go2ernment data so!rces. c. A company can !se online c!stomer feedback systems to collect data. d. A company can net$ork e?ternally. e. A company can !se its sales force to collect and report data. Ans$er% b &ages% .5A.1 Diffic!lty% (asy AA#S/% 4eflecti2e Thinking 1). Cne of the diffic!lties of !sing chat rooms and blogs to collect competiti2e intelligence is that ________. a. their !nstr!ct!red nat!re makes it diffic!lt for marketers to find rele2ant messages b. people are generally !n$illing to share their perspecti2e on prod!cts and ser2ices $itho!t being paid for them c. they constit!te a 2ery e?pensi2e form of market research d. it is diffic!lt to access chat rooms and blogs beca!se of pri2acy iss!es e. All of the abo2e are diffic!lties e?perienced $hen !sing chat rooms and blogs to collect competiti2e intelligence. Ans$er% a &age% .1 Diffic!lty% edi!m AA#S/% Use of 8T 10. There are se2eral $ays marketers can find rele2ant online information on competitors prod!cts and $eaknesses1 s!mmary comments1 and o2erall performance rating of a prod!ct1 ser2ice1 or s!pplier. ________ isDareE a type of site that is concentrated in financial ser2ices and high;tech prod!cts that re*!ire professional kno$ledge. a. 8ndependent c!stomer goods and ser2ice re2ie$s b. Distrib!tor or sales agent feedback sites c. #ombo sites offering c!stomer re2ie$s and e?pert opinions d. #!stomer complaint sites e. Shopping bot ser2ice sites Ans$er% c &age% .) Diffic!lty% 9ard AA#S/% Use of 8T

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

')

&art )% #apt!ring

arketing 8nsights

13. A ________ is <!npredictable1 short;li2ed1 and $itho!t social1 economic1 and political significance.= a. fad b. fashion c. trend d. megatrend e. style Ans$er% a &age% .) Diffic!lty% edi!m 1:. A ________ is a direction or se*!ence of e2ents that has some moment!m and d!rabilityF the shape of the f!t!re is re2ealed and many opport!nities are pro2ided. a. fad b. fashion c. trend d. megatrend e. style Ans$er% c &age% .) Diffic!lty% 9ard AA#S/% Analytic Skills 1'. ________ ha2e been described as <large social1 economic1 political and technological changes GthatH are slo$ to form1 and once in place1 they infl!ence !s for some timeI bet$een se2en and ten years1 or longer. a. Jads b. Jashions c. Trends d. egatrends e. Styles Ans$er% d &age% .0 Diffic!lty% edi!m 1.. The beginning of the ne$ cent!ry bro!ght a series of ne$ challenges. All of the follo$ing $o!ld be considered to be among those challenges (+#(&T ________. a. a deterioration of inno2ati2e ideas b. the steep decline of the stock market c. increasing !nemployment d. corporate scandals e. the rise of terrorism Ans$er% a &age% .3 Diffic!lty% edi!m AA#S/% 4eflecti2e Thinking 1>. "ith the rapidly changing global pict!re1 the firm m!st monitor si? major forces. All of the follo$ing $o!ld be among those forces (+#(&T ________. a. demographic b. economic c. social;c!lt!ral d. nat!ral e. promotional Ans$er% e &age% .3 Diffic!lty% (asy AA#S/% Analytic Skills

'0

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

#hapter 0% @athering 8nformation and Scanning the (n2ironment

17. The main demographic force that marketers monitor is ________. a. s!ppliers b. competitors c. comm!nication Ds!ch as ad2ertisingE d. go2ernment reports dealing $ith birth rates e. pop!lation Ans$er% e &age% .: Diffic!lty% (asy AA#S/% 4eflecti2e Thinking )5. A significant fact abo!t pop!lation gro$th and pop!lation shifts is that in )55:1 ________. a. the yo!th market e?ceeded that of the ad!lt market b. people o2er the age of '5 o!tn!mbered those !nder fi2e years of age c. baby boomers $ere eclipsed by @en + yo!ng ad!lts d. most age gro!p segments $ere abo!t e*!al e. K @eneration yo!ng ad!lts s!rpassed the baby boomers as the largest age segment Ans$er% b &age% .' Diffic!lty% 9ard )1. The ________ regions of the $orld c!rrently acco!nt for .'L of the $orld pop!lation and are gro$ing almost fo!r times faster than the pop!lations of ________ regions. a. ind!striali-edF ser2ice;based b. less;de2elopedF more de2eloped c. "esternF (astern d. $ealthierF poorer e. DemocraticF Socialist Ans$er% b &ages% .:A.' Diffic!lty% (asy AA#S/% Analytic Skills )). ________ are gro!ps of indi2id!als $ho are born d!ring the same time period and tra2el thro!gh life together. a. #ohorts b. &op!lations c. Demographics d. Societies e. arkets Ans$er% a &age% .' Diffic!lty% edi!m AA#S/% Analytic Skills )0. ore than any other gro!p1 the ________ cohort accepts c!lt!ral di2ersity and p!ts personal life ahead of $ork life. a. "orld "ar 88 b. post$ar c. leading;edge baby boomer d. trailing;edge baby boomer e. @eneration + Ans$er% e &age% .' Diffic!lty% edi!m

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

'3

&art )% #apt!ring

arketing 8nsights

)3. Altho!gh still a $ork in progress1 the ________ cohort is more idealistic and social; ca!se oriented1 $itho!t the cynical1 $hats;in;it;for;me mindset of other cohorts. a. K @eneration b. post$ar c. leading;edge baby boomer d. Depression e. @eneration + Ans$er% a &age% .' Diffic!lty% edi!m ):. According to the )555 cens!s1 the U.S. pop!lation of ).'.) million $as .)L $hite and ________ L African American. The remainder consisted of 9ispanic Americans and other minorities. a. )5 b. 1> c. 1: d. 10 e. 11 Ans$er% d &age% .. Diffic!lty% 9ard AA#S/% !ltic!lt!ralMDi2ersity )'. Jre*!ently noted as a megatrend1 the increasing percentage of _____ in the total pop!lation represents a major shift in c!lt!ral center of gra2ity in the United States. a. African Americans b. (!ropean Americans c. Asian Americans d. 9ispanic Americans e. iddle (astern Americans Ans$er% d &age% .. Diffic!lty% edi!m AA#S/% !ltic!lt!ralMDi2ersity ).. Di2ersity goes beyond ethnic and racial markets. ore than ________ million Americans ha2e disabilities1 and they constit!te a market for home deli2ery companies Dand othersE. a. :5 b. 35 c. 05 d. )5 e. 15 Ans$er% a &age% .> Diffic!lty% 9ard )>. T$o;thirds of all illiterate ad!lts are ________. a. #hinese b. middle;class c. $omen d. li2ing in ind!striali-ed co!ntries e. none of the abo2e Ans$er% c &age% .> Diffic!lty% edi!m

AA#S/%

!ltic!lt!ralMDi2ersity

':

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

#hapter 0% @athering 8nformation and Scanning the (n2ironment

)7. The ________ ho!sehold consists of a h!sband1 $ife1 and children Dand sometimes grandparentsE. a. <traditional= b. <e?tended= c. <di2ersity= d. <modern= e. <re2ised= Ans$er% a &age% .> Diffic!lty% edi!m 05. /y )5151 projections indicate that the largest category of ho!seholds $ill be composed of ________. a. childless married co!ples and empty nesters b. single;parent families c. single li2e;alones d. singles li2ing $ith nonrelati2es e. married co!ples $ith children Ans$er% a &age% .> Diffic!lty% 9ard AA#S/% !ltic!lt!ralMDi2ersity 01. The )1st cent!ry sa$ ________ markets gro$ more rapidly again d!e to a higher birth rate1 a lo$er death rate1 and rapid gro$th from foreign immigration. a. s!b!rban b. !rban c. r!ral d. coastal e. secondary Ans$er% b &age% .> Diffic!lty% edi!m AA#S/% Analytic Skills 0). The mo2ement by the U.S. pop!lation to the ________ has lessened the demand for $arm clothing and home heating e*!ipment and increased demand for air conditioning. a. S!nbelt b. &acific Korth$est c. Kortheast d. id;#oastal areas e. 9eartland Ans$er% a &age% .7 Diffic!lty% (asy AA#S/% Analytic Skills 00. Almost one in ________ people o2er the age of fi2e D1)5 millionE mo2ed at least one time bet$een 177: and )5551 according to a #ens!s )555 brief1 $ith an emphasis a$ay from the id$est and Kortheast. a. t$o b. three c. fo!r d. fi2e e. ten Ans$er% a &age% .7 Diffic!lty% 9ard

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

''

&art )% #apt!ring

arketing 8nsights

03. 8n $hich of the follo$ing economies $o!ld $e e?pect to find the fe$est opport!nities for marketers, a. 8nd!striali-ing economies b. Land;locked economies c. 4a$;material;e?porting economies d. 8nd!strial economies e. S!bsistence economies Ans$er% e &age% .7 Diffic!lty% (asy AA#S/% !ltic!lt!ralMDi2ersity 0:. According to information presented in the te?t1 $hich of the follo$ing co!ntries is s!rprisingly a 2ery good market for Lamborghini a!tomobiles Dcosting more than N1:51555E beca!se of the n!mber of $ealthy families that can afford e?pensi2e cars. a. @reece b. S$it-erland c. 9olland d. 4!ssia e. &ort!gal Ans$er% e &age% .7 Diffic!lty% 9ard AA#S/% !ltic!lt!ralMDi2ersity 0'. C2er the past three decades in the United States1 the rich ha2e gro$n richer and the middle class has ________. a. stayed abo!t the same b. shr!nk c. increased slightly d. matched the rich in terms of relati2e gro$th e. been ignored beca!se of problems $ith the poorer classes Ans$er% b &age% .7 Diffic!lty% edi!m 0.. #ons!mer e?pendit!res are affected by ________. a. sa2ings b. debt c. credit a2ailability d. all of the abo2e e. none of the abo2e Ans$er% d &age% >5 Diffic!lty% edi!m AA#S/% Analytic Skills 0>. "hich of the follo$ing gro!ps is most 2!lnerable to recent income distrib!tion trends in the United States, a. akers of high;end sports cars b. Large disco!nt chains c. &harmace!tical firms d. #on2entional retailers offering medi!m;priced goods e. (?pensi2e and e?cl!si2e resta!rants Ans$er% d &age% >5 Diffic!lty% 9ard AA#S/% 4eflecti2e Thinking

'.

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

#hapter 0% @athering 8nformation and Scanning the (n2ironment

07. ________ shapes the beliefs1 2al!es1 and norms that largely define tastes and preferences. a. arketing b. The mass media c. @o2ernment d. &rod!ction inno2ation and engineering e. Society Ans$er% e &age% >5 Diffic!lty% edi!m AA#S/% 4eflecti2e Thinking 35. According to the information fo!nd in the social;c!lt!ral en2ironment1 $ith respect to views of others, ________ are considered to be things that allo$ people $ho are alone to feel they are not De.g.1 tele2ision1 home 2ideo games1 and 8nternet chat roomsE. a. social s!rrogates b. s!bliminal fantasies c. relationship a2oidance d. primary prod!cts e. secondary prod!cts Ans$er% a &age% >1 Diffic!lty% edi!m AA#S/% 4eflecti2e Thinking 31. Today1 corporations need to make s!re that they are good corporate citi-ens and that their cons!mer messages are honest in order to positi2ely align themsel2es $ith cons!mers ________. a. 2ie$s of others b. 2ie$s of organi-ations c. 2ie$s of themsel2es d. 2ie$s of the !ni2erse e. 2ie$s of society Ans$er% b &age% >1 Diffic!lty% (asy AA#S/% 4eflecti2e Thinking 3). &eople 2ary in their attit!des to$ard their society. ________ !s!ally li2e more fr!gally1 dri2e smaller cars1 and $ear simpler clothing. a. akers b. (scapers c. Seekers d. #hangers e. De2elopers Ans$er% d &age% >1 Diffic!lty% 9ard 30. &eople 2ary in their attit!des to$ard society and react accordingly. ________ are a major market for mo2ies1 m!sic1 s!rfing1 and camping. a. akers b. &reser2ers c. (scapers d. #hangers e. De2elopers Ans$er% c &age% >1 Diffic!lty% (asy

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

'>

&art )% #apt!ring

arketing 8nsights

33. All of the follo$ing ha2e been cited by the te?t as being among Americans core 2al!es (+#(&T ________. a. belief in $ork b. belief in getting married c. belief in gi2ing to charity d. belief in being honest e. belief in se?!al permissi2eness Ans$er% e &age% >1 Diffic!lty% (asy AA#S/% 4eflecti2e Thinking 3:. "hich of the follo$ing $o!ld be the best ill!stration of a secondary belief or 2al!e, a. /elief in $ork b. /elief in gi2ing to charity c. /elief in getting married d. /elief in getting married early e. /elief in being honest Ans$er% d &age% >1 Diffic!lty% edi!m AA#S/% Analytic Skills 3'. (ach society contains ________1 gro!ps $ith shared 2al!es emerging from their special life e?periences or circ!mstances. a. demographic segments b. cli*!es c. cons!mer b!ndles d. s!bc!lt!res e. beha2ioral niches Ans$er% d &age% >1 Diffic!lty% edi!m 3.. arketers are partic!larly interested in the cons!mption of ________1 as de2eloping brand loyalty in this age gro!p is likely to lead to the highest cons!mer lifetime 2al!e. a. infants b. yo!ng children c. teens d. parents e. retirees Ans$er% c &ages% >1A>) Diffic!lty% 9ard AA#S/% Analytic Skills 3>. "hich of the follo$ing $o!ld be the best ill!stration of a s!bc!lt!re, a. A softball team b. A !ni2ersity al!mni association c. Teenagers d. A /oy Sco!t troop e. Jre*!ent flyers Ans$er% c &age% >1 Diffic!lty% edi!m

'7

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

#hapter 0% @athering 8nformation and Scanning the (n2ironment

37. Altho!gh core 2al!es are fairly persistent1 c!lt!ral s$ings do take place. ________ ca!sed s!ch a s$ing in the 17'5s. a. Jord otor #ompany b. @eorge c@o2ern c. @.8. Ooe action characters d. The infomercial e. The /eatles Ans$er% e &age% >1 Diffic!lty% edi!m :5. arketers need to be a$are of threats and opport!nities associated $ith fo!r trends in the nat!ral en2ironment1 incl!ding all of the follo$ing (+#(&T ________. a. the shortage of ra$ materials b. the increased cost of energy c. near 75L corporate s!pport for <green ca!ses= d. increased poll!tion le2els e. the changing role of go2ernments Ans$er% c &age% >) Diffic!lty% (asy :1. "ith respect to the shortage of ra$ materials1 air and $ater are classified as ________ reso!rces. 9o$e2er1 as $e kno$1 problems are beginning to plag!e both o!r air and $ater *!ality. a. infinite b. near finite c. finite rene$able d. finite nonrene$able e. absol!te Ans$er% a &age% >) Diffic!lty% edi!m AA#S/% Analytic Skills :). Jirms making prod!cts that re*!ire ________face s!bstantial cost increases as these become increasingly scarce. a. infinite b. near finite c. finite rene$able d. finite nonrene$able e. absol!te Ans$er% d &age% >) Diffic!lty% (asy AA#S/% Analytic Skills :0. ________ is the recognition for the importance of en2ironmental iss!es facing the firm and the integration of those iss!es into the firms strategic plans. a. Konrene$able reso!rce b. #orporate en2ironmentalism c. !ltic!lt!ral a$areness d. /ipartisanism e. Secondary belief Ans$er% b &age% >) Diffic!lty% edi!m AA#S/% Analytic Skills

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

.5

&art )% #apt!ring

arketing 8nsights

:3. <@reen marketing myopia= is a term !sed to describe the tendency to ________. a. completely ignore en2ironmental iss!es b. regard en2ironmental iss!es as too abstract to pro2ide c!stomer 2al!e c. balance en2ironmental concerns $ith other forms of c!stomer 2al!e d. o2erly foc!s on a prod!cts greenness e. none of the abo2e Ans$er% d &age% >0 Diffic!lty% 9ard ::. Jrom a branding perspecti2e1 <green marketing= programs ha2e not been entirely s!ccessf!l. ________ m!st be o2ercome for <green marketing= programs to be more s!ccessf!l. a. &ercei2ed inferior *!ality and lack of credibility b. 9igh cost c. &oor promotions d. 4esistance by the yo!th segment in the marketplace e. Lack of s!pport by go2ernmental agencies and concerns Ans$er% a &age% >0 Diffic!lty% 9ard :'. The largest cons!mer en2ironmental segment is the Tr!e /l!e @reens1 $ho are characteri-ed by ________. a. a strong kno$ledge of en2ironmental iss!es and a higher likelihood to engage in en2ironmentally conscio!s beha2ior b. the belief that their indi2id!al beha2ior cannot impro2e en2ironmental conditions c. their belief that en2ironmental indifference is mainstream d. a lack of time or inclination to beha2e entirely green e. the p!rchase of en2ironmentally conscio!s prod!cts1 b!t only if those prod!cts meet their needs Ans$er% a &age% >0 Diffic!lty% 9ard :.. The marketer sho!ld monitor the follo$ing trends in technology1 (+#(&T ________1 if progress is to be made in b!siness. a. the pace of change b. the diffic!lties fo!nd in sharing information c. the opport!nities for inno2ation d. 2arying 4PD b!dgets e. increased reg!lation Ans$er% b &age% >: Diffic!lty% 9ard AA#S/% Use of 8T :>. The ________ en2ironment consists of la$s1 go2ernment agencies1 and press!re gro!ps that infl!ence and limit 2ario!s organi-ations and indi2id!als. a. nat!ral b. technological c. social;c!lt!ral d. economic e. political;legal Ans$er% e &age% >' Diffic!lty% (asy AA#S/% Analytic Skills

.1

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

#hapter 0% @athering 8nformation and Scanning the (n2ironment

:7. The p!rpose of ________ legislation is to protect companies from !nfair competition1 to protect cons!mers from !nfair b!siness practices1 and to protect the interests of society from !nbridled b!siness beha2ior. a. b!siness b. cons!mer c. bipartisan d. acti2ist e. global Ans$er% a &age% >' Diffic!lty% (asy AA#S/% Analytic Skills '5. An important force affecting b!siness is the ________Ia mo2ement of citi-ens and go2ernment organi-ed to strengthen the rights and po$ers of b!yers in relation to sellers. a. lobbyist mo2ement b. cons!merist mo2ement c. en2ironmental mo2ement d. self;rights mo2ement e. ethical reform mo2ement Ans$er% b &age% >' Diffic!lty% edi!m AA#S/% Analytic Skills

Tr"e$%a#&e
'1. Today1 most firms are rather sophisticated abo!t gathering information. Ans$er% Jalse &age% '. Diffic!lty% edi!m '). #ompanies $ith s!perior information enjoy a competiti2e ad2antage. Ans$er% Tr!e &age% '. Diffic!lty% (asy AA#S/% 4eflecti2e Thinking '0. A marketing information system is de2eloped from internal company records1 marketing intelligence1 and promotional models s!pplied by the marketing department. Ans$er% Jalse &age% '. Diffic!lty% edi!m AA#S/% Use of 8T '3. The heart of the internal records system is the bar code. Ans$er% Jalse &age% '. Diffic!lty% edi!m AA#S/% 4eflecti2e Thinking ':. Je$ cons!mers act!ally delete cookies fre*!ently. "hen c!stomers accept cookies1 they e?pect c!stomi-ed marketing appeals and deals. Ans$er% Tr!e &age% '> Diffic!lty% 9ard AA#S/% Use of 8T ''. Sales data are al$ays !nambig!o!s and clearly interpreted. Ans$er% Jalse &age% '> Diffic!lty% 9ard AA#S/% 4eflecti2e Thinking '.. According to principles fo!nd in database constr!ction and !sage1 a <carpet bombing= mailing of a ne$ offer is !s!ally the most s!ccessf!l strategy. Ans$er% Jalse &age% '> Diffic!lty% edi!m AA#S/% Use of 8T

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

.)

&art )% #apt!ring

arketing 8nsights

'>. 8f a company $ere p!rs!ing a policy of net$orking e?ternally1 it might collect competitors ads or look !p ne$s stories abo!t competitors. Ans$er% Tr!e &age% '7 Diffic!lty% edi!m AA#S/% Analytic Skills '7. #ompetiti2e intelligence gathering is inherently illegal and !nethical. Ans$er% Jalse &age% .5 Diffic!lty% (asy AA#S/% (thical 4easoning .5. Cne of the $ays to find rele2ant online information on competitors strengths and $eaknesses might be to fre*!ent distrib!tor or sales agent feedback sites. Ans$er% Tr!e &age% .) Diffic!lty% edi!m .1. A style is !npredictable1 short;li2ed1 and $itho!t social or economic significance. Ans$er% Jalse &age% .) Diffic!lty% edi!m AA#S/% Analytic Skills .). A megatrend has been described as being $hat follo$s all fads that stay on the market at least one year. Ans$er% Jalse &age% .0 Diffic!lty% edi!m AA#S/% Analytic Skills .0. Cne of the 15 significant megatrends that $ill impact marketing efforts in the f!t!re is increasing scr!tiny on the role and beha2ior of big b!siness. Ans$er% Tr!e &age% .0 Diffic!lty% edi!m .3. icroen2ironmental forces ha2e been labeled as being <!ncontrollable.= Ans$er% Jalse &age% .3 Diffic!lty% edi!m AA#S/% Analytic Skills .:. &op!lation gro$th is highest in co!ntries and comm!nities that can least afford it. Ans$er% Tr!e &age% .: Diffic!lty% edi!m AA#S/% !ltic!lt!ralMDi2ersity .'. A gro$ing pop!lation al$ays means a gro$ing market. Ans$er% Jalse &age% .' Diffic!lty% edi!m AA#S/% 4eflecti2e Thinking ... The basis of cohort segmentation is that the occ!rrence of key defining moments $hile a person comes of age imprints core 2al!es that remain largely intact thro!gho!t life. Ans$er% Tr!e &age% .' Diffic!lty% edi!m AA#S/% Analytic Skills .>. Oapan has one of the $orlds oldest pop!lations. Ans$er% Tr!e &age% .' Diffic!lty% edi!m AA#S/% !ltic!lt!ralMDi2ersity

.7. According to the )555 cens!s1 Latinos make !p the largest minority in the United States $ith 10L of the total pop!lation. Ans$er% Jalse &age% .. Diffic!lty% edi!m >5. 8n marketing to ethnic gro!ps1 African Americans sho!ld be treated as a !niform gro!p beca!se of their shared heritage and homogeneo!s cons!mption patterns. Ans$er% Jalse &age% .. Diffic!lty% (asy AA#S/% Analytic Skills

.0

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

#hapter 0% @athering 8nformation and Scanning the (n2ironment

>1. The United States has one of the highest percentages of college;ed!cated citi-ens1 $hich spells a high demand for *!ality books1 maga-ines1 and tra2el. Ans$er% Tr!e &age% .> Diffic!lty% edi!m AA#S/% Analytic Skills >). According to st!dies of minority markets1 the disabled market is 15 times more likely to be in a professional job1 almost t$ice as likely to o$n a 2acation home1 > times more likely to o$n a notebook comp!ter1 and t$ice as likely to o$n indi2id!al stocks as compared to the general pop!lation. Ans$er% Jalse &age% .> Diffic!lty% edi!m AA#S/% !ltic!lt!ralMDi2ersity >0. The a2ailable p!rchasing po$er in an economy depends on c!rrent income1 prices1 sa2ings1 debt1 and credit a2ailability. Ans$er% Tr!e &age% .7 Diffic!lty% (asy AA#S/% Analytic Skills >3. (gypt is a good e?ample of a ra$;material;e?porting economy. Ans$er% Jalse &age% .7 Diffic!lty% 9ard AA#S/% !ltic!lt!ralMDi2ersity >:. arkets $ith a segment of 2ery $ealthy cons!mers1 b!t high income disparity1 present fe$ opport!nities to marketers. Ans$er% Jalse &age% .7 Diffic!lty% edi!m AA#S/% Analytic Skills >'. C2er the past three decades in the United States1 income disparity has gro$n $hile the middle class has shr!nk. Ans$er% Tr!e &age% .7 Diffic!lty% edi!m >.. 9igh debt;to;income ratios among U.S. cons!mers can slo$ do$n their e?pendit!res on ho!sing and large;ticket items. Ans$er% Tr!e &age% >5 Diffic!lty% 9ard AA#S/% Analytic Skills >>. 8f a single person has a home entertainment system that is rich in tele2ision capabilities and home 2ideo games1 he or she may be !sing s!ch a system as a <social s!rrogate.= Ans$er% Tr!e &age% >1 Diffic!lty% 9ard >7. 8n recent years1 beca!se of a to!gh job market1 there has been an increasing amo!nt of organi-ational loyalty among most employees. Ans$er% Jalse &age% >1 Diffic!lty% edi!m AA#S/% Analytic Skills 75. "ith respect to 2ie$s of society1 changers tend to be high achie2ers $ho li2e la2ishly. Ans$er% Jalse &age% >1 Diffic!lty% edi!m AA#S/% 4eflecti2e Thinking 71. Secondary beliefs and 2al!es are passed on from parents to children and reinforced by major social instit!tions1 making them 2ery diffic!lt to change. Ans$er% Jalse &age% >1 Diffic!lty% edi!m AA#S/% 4eflecti2e Thinking

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

.3

&art )% #apt!ring

arketing 8nsights

7). ost Americans still hold the importance of marriage as a core belief. Ans$er% Tr!e &age% >1 Diffic!lty% (asy 70. Jirms making prod!cts that re*!ire increasingly scarce finite nonrene$able reso!rces face s!bstantial cost increases. Ans$er% Tr!e &age% >) Diffic!lty% edi!m AA#S/% Analytic Skills 73. #ons!mers are consistently in fa2or of en2ironmental safety and the majority sho$ their concern by p!rchasing recycled and en2ironmentally safe prod!cts. Ans$er% Jalse &age% >) Diffic!lty% edi!m 7:. ost $ealthy nations are doing little abo!t poll!tion1 largely beca!se they lack the f!nds or the political $ill. Ans$er% Jalse &age% >0 Diffic!lty% edi!m 7'. (2ery ne$ technology is a force for <creati2e destr!ction.= Ans$er% Tr!e &age% >3 Diffic!lty% (asy 7.. A gro$ing portion of U.S. 4PD e?pendit!re is going into the de2elopment side of 4PD1 raising concerns abo!t $hether the United States can maintain its lead in basic science. Ans$er% Tr!e &age% >: Diffic!lty% 9ard AA#S/% 4eflecti2e Thinking 7>. Legislation affecting b!siness has increased steadily o2er the years. Ans$er% Tr!e &age% >' Diffic!lty% (asy 77. Cne of the major trends in the political;legal en2ironment is the trend to$ard the gro$th of special;interest gro!ps. Ans$er% Tr!e &age% >' Diffic!lty% (asy 155. Today1 c!stomers are still $illing to s$ap personal information for c!stomi-ed prod!cts from firms. Ans$er% Tr!e &age% >' Diffic!lty% (asy

E&&a'
151. Describe a marketing information system D 8SE. Jrom $hat so!rces is the de2eloped, 8S

S"gge&ted An&(er: A marketing information system (MIS) consists of people1 e*!ipment1 and proced!res to gather1 sort1 analy-e1 e2al!ate1 and distrib!te needed1 timely1 and acc!rate information to marketing decision makers. A marketing information system is de2eloped from internal company records1 marketing intelligence acti2ities1 and marketing research. &age% '. Diffic!lty% edi!m AA#S/% Use of 8T

.:

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

#hapter 0% @athering 8nformation and Scanning the (n2ironment

15).

Describe the order;to;payment cycle and $hy it is important to internal records keeping. S"gge&ted An&(er: The heart of the internal records system is the order;to; payments cycle. Sales representati2es1 dealers1 and c!stomers send orders to the firm. The sales department prepares in2oices and transmits copies to 2ario!s departments. C!t;of;stock items are back ordered. Shipped items are accompanied by shipping and billing doc!ments that are sent to 2ario!s departments. Todays companies m!st perform these steps *!ickly and acc!rately. &age% '. Diffic!lty% edi!m AA#S/% 4eflecti2e Thinking

150.

"hat are the 2ario!s steps a company can take to impro2e the *!ality of its marketing intelligence f!nction, S"gge&ted An&(er: The steps are% D1E A company can train and moti2ate the sales force to spot and report ne$ de2elopmentsF D)E a company can moti2ate distrib!tors1 retailers1 and other intermediaries to pass along important intelligenceF D0E a company can net$ork e?ternallyF D3E a company can set !p a c!stomer ad2isory panelF D:E a company can take ad2antage of go2ernment data reso!rcesF D'E a company can p!rchase information from o!tside s!ppliersF and D.E a company can !se online c!stomer feedback systems to collect competiti2e intelligence. &ages% '7A.1 Diffic!lty% 9ard AA#S/% Analytic Skills

153.

List and briefly describe the fi2e main $ays marketers can find rele2ant online information on competitors strengths and $eaknesses1 s!mmary comments1 and o2erall performance rating of a prod!ct1 ser2ice1 or s!pplier. S"gge&ted An&(er: The fi2e $ays are% D1E independent c!stomer goods and ser2ice re2ie$ for!msF D)E distrib!tor or sales agent feedback sitesF D0E combo sites offering c!stomer re2ie$s and e?pert opinionsF D3E c!stomer complaint sitesF and D:E p!blic blogs. &age% .) Diffic!lty% 9ard AA#S/% Use of 8T

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

.'

&art )% #apt!ring

arketing 8nsights

15:.

"hat is a <megatrend=, /riefly describe fi2e megatrends shaping the cons!mer landscape. S"gge&ted An&(er: A megatrend is a large1 social1 economic1 political1 and technological change that is slo$ to form1 and once in place1 infl!ences !s for some time De.g.1 bet$een . and 15 years or longerE. The 15 trends Dst!dents disc!ss :E disc!ssed in the te?t are D1E centers of economic acti2ity $ill shift1 both globally and regionallyF D)E p!blic;sector acti2ities $ill balloon1 making prod!cti2ity gains essentialF D0Ethe cons!mer landscape $ill change and e?pand significantlyF D3E technological connecti2ity $ill transform the $ay people li2e and interactF D:E the battlefield for talent $ill shiftF D'E the role and beha2ior of big b!siness $ill come !nder increasingly sharp scr!tinyF D.E demand for nat!ral reso!rces $ill gro$1 as $ill the strain on the en2ironmentF D>E ne$ global ind!stry str!ct!res are emergingF D7E management $ill go from art to scienceF and D15E !bi*!ito!s access to information is changing the economics of kno$ledge. &age% .0 Diffic!lty% 9ard AA#S/% 4eflecti2e Thinking

15'.

"hat is the main demographic force monitored by marketers, "hy, S"gge&ted An&(er: The main demographic force monitored by marketers is pop!lation. The reason for its importance is beca!se people make !p markets. arketers are keenly interested in the si-e and gro$th rate of pop!lation in cities1 regions1 and nationsF age distrib!tion and ethnic mi?F ed!cational le2elsF ho!sehold patternsF and regional characteristics and mo2ements. &age% .: Diffic!lty% edi!m AA#S/% 4eflecti2e Thinking

15..

9o$ are ho!sehold patterns anticipated to change o2er the ne?t fe$ years, S"gge&ted An&(er: /y )5151 only one in fi2e U.S. ho!seholds $ill consist of married co!ples $ith children !nder the age of 1>1 the <traditional ho!sehold.= ore people are di2orcing or separating1 choosing not to marry1 marrying later1 or marrying $itho!t the intention to ha2e children. /y )5151 childless married co!ples and empty nesters $ill constit!te the largest ho!sehold gro!p1 follo$ed by single li2e;alones. Kontraditional ho!seholds are c!rrently gro$ing more rapidly than traditional ones. &age% .> Diffic!lty% edi!m AA#S/% 4eflecti2e Thinking

15>.

&eople absorb1 almost !nconscio!sly1 a $orld2ie$ that defines their relationships. List and describe the <2ie$s= that assist or retard this relationship de2elopment process. S"gge&ted An&(er: The 2ie$s are% D1E 2ie$s of themsel2esF D)E 2ie$s of othersF D0E 2ie$s of organi-ationsF D3E 2ie$s of societyF D:E 2ie$s of nat!reF and D'E 2ie$s of the !ni2erse. St!dents sho!ld characteri-e each based on materials presented in the te?t. &ages% >5A>1 Diffic!lty% 9ard AA#S/% 4eflecti2e Thinking

..

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

#hapter 0% @athering 8nformation and Scanning the (n2ironment

157.

Describe the differences bet$een a core belief and a secondary belief. List the primary core beliefs of Americans as re2ealed by the te?t. S"gge&ted An&(er: The people li2ing in a partic!lar society hold many core beliefs and 2al!es that tend to persist. ost Americans still belie2e in $ork1 in getting married1 in gi2ing to charity1 and in being honest. #ore beliefs and 2al!es are passed on from parents to children and are reinforced by major social instit!tions. Secondary beliefs and 2al!es are more open to change. /elie2ing in the instit!tion of marriage is a core beliefF belie2ing that people o!ght to get married early is a secondary belief. arketers ha2e some chance of changing secondary beliefs. There is little chance to change core beliefs or 2al!es. &age% >1 Diffic!lty% edi!m AA#S/% Analytic Skills

115.

any marketers ha2e tried and failed $ith <green marketing= programs. 8dentify and briefly describe the t$o main problems $ith s!ch campaigns. S"gge&ted An&(er: Altho!gh many companies ha2e la!nched <green marketing= programs1 they ha2e not been entirely s!ccessf!l from a branding perspecti2e. T$o main problems are that D1E cons!mers may belie2e the prod!ct is of inferior *!ality as a res!lt of being green and D)E they may feel the prod!ct is not really that green to begin $ith. &age% >0 Diffic!lty% edi!m AA#S/% Analytic Skills

APPLICATION Q ESTIONS !"#tip#e Choice

111. D!&ont commissioned marketing st!dies to !nco2er personal pillo$ beha2ior for its Dacron &olyester !nit that s!pplies filling to pillo$ makers and sells its o$n #omforel brand. "hich of the follo$ing $as re2ealed by research to be the primary challenge faced by D!&ont in e?panding sales in the pillo$ ind!stry, a. &rice b. &eople not $anting to gi2e !p their old pillo$s c. The smell associated $ith polyester d. The lack of a fa2orable rep!tation in the ind!stry e. #ompetition from #hina Ans$er% b &age% '' Diffic!lty% edi!m AA#S/% Analytic Skills

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

.>

&art )% #apt!ring

arketing 8nsights

11).

As the manager of an organi-ation that is attempting to b!ild a 8S1 yo! ha2e been informed that a 8S is b!ilt !pon three f!ndamental information so!rces. The so!rces are ________1 marketing intelligence acti2ities1 and marketing research. a. e?ternal records and doc!ments b. databases fo!nd on the 8nternet c. cons!ltant reports d. internal company records e. secondary data from go2ernment so!rces s!ch as the /etter /!siness /!rea! Ans$er% d &age% '. Diffic!lty% 9ard AA#S/% Use of 8T 110. The ________ is the process that starts $ith sales representati2es1 dealers1 and c!stomers sending orders to the firm1 ends $ith item shipment and bill payment1 and incl!des the preparation of in2oices and the back;order of o!t;of;stock items. a. sales information cycle b. order;to;payment cycle c. demographic trend d. marketing information system e. marketing intelligence Ans$er% b &age% '. Diffic!lty% edi!m AA#S/% Analytic Skills 113. /y e*!ipping its sales force $ith handheld de2ices $ith bar;code readers and 8nternet connections to speed in2entory assessment1 Taylor ades sales reps ha2e significantly more time to interact $ith their cons!mers. This is an e?ample of the !se of technology in impro2ing ________. a. sales information systems b. order;to;payment cycles c. cookies d. cohort segmentation e. competiti2e intelligence gathering Ans$er% a &age% '> Diffic!lty% edi!m AA#S/% Use of 8T 11:. arketing managers tend to !s internal records systems to s!pply ________ data1 $hereas marketing intelligence system are !sed to s!pply happenings data. a. demand b. logistical c. psychographic d. res!lts e. primary Ans$er% d &age% '7 Diffic!lty% 9ard AA#S/% 4eflecti2e Thinking

.7

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

#hapter 0% @athering 8nformation and Scanning the (n2ironment

11'.

"hich of the follo$ing best describes the practice !sed by cDonalds $hen it hired mystery shoppers to assess stores internal speed standards, a. Training and moti2ating the sales force to spot and report ne$ de2elopments b. oti2ating intermediaries to pass along important intelligence c. Ket$orking e?ternally d. Setting !p an ad2isory panel e. Taking ad2antage of go2ernment data so!rces Ans$er% b &age% '7 Diffic!lty% edi!m AA#S/% Analytic Skills 11.. any b!siness schools ha2e _____ made !p of al!mni and recr!iters $ho pro2ide 2al!able feedback on the c!rric!l!m. a. go2ernment data so!rces b. ad2isory panels c. trends d. order;to;payment cycles e. green marketing initiati2es Ans$er% b &age% .5 Diffic!lty% edi!m AA#S/% Analytic Skills 11>. (lance.com is a ser2ice pro2ider that allo$s contractors to describe their le2el of satisfaction $ith s!bcontractors. This is an e?ample of aDnE ________. a. independent c!stomer goods and ser2ice re2ie$ for!m b. p!blic blog c. c!stomer complaint site d. combo site offering c!stomer re2ie$s and e?pert opinions e. distrib!tor or sales agent feedback site Ans$er% e &age% .) Diffic!lty% 9ard AA#S/% Use of 8T 117. (?amples of ________ that $ere considered to be s!ccessf!l for toy retailers $ere /eanie /abies1 J!rbies1 and Tickle e (lmo dolls. a. trends b. fashions c. fads d. megatrends e. styles Ans$er% c &age% .) Diffic!lty% edi!m 1)5. According to information pro2ided in the te?t1 ________ is an e?ample of a co!ntry $ith a 2ery yo!ng and rapidly e?panding pop!lation $here prod!cts s!ch as milk1 diapers1 school s!pplies1 and toys $o!ld be important. a. Oapan b. Jrance c. Spain d. e?ico e. the United Qingdom Ans$er% d &age% .' Diffic!lty% 9ard AA#S/% !ltic!lt!ralMDi2ersity

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

>5

&art )% #apt!ring

arketing 8nsights

1)1.

________ sho$s a spirit of entreprene!rship !nmatched by any cohort. a. /aby boomers b. "ar babies c. @eneration R d. @eneration + e. K @eneration Ans$er% d &age% .' Diffic!lty% 9ard AA#S/% Analytic Skills 1)). ________ made !p half of all ne$ $orkers in the past decade and $ill make !p ):L of all $orkers in the United States $ithin t$o generations. a. Asian Americans b. African Americans c. 9ispanic Americans d. (!ropean Americans e. Kati2e Americans Ans$er% c &age% .. Diffic!lty% edi!m AA#S/% !ltic!lt!ralMDi2ersity 1)0. "ithin the African American market1 the largest and perhaps most infl!ential socio;beha2ioral s!bsegments are ________. a. the 4eachers and the Attainers b. the Seekers and the #onser2ers c. the (lites and the Attainers d. the (m!lators and the 4eachers e. the #onser2ers and the (m!lators Ans$er% a &age% .. Diffic!lty% 9ard AA#S/% !ltic!lt!ralMDi2ersity 1)3. /y )5151 only ________ of U.S. ho!seholds $ill consist of married co!ples $ith children !nder the age of 1>. a. :5L b. 35L c. 05L d. )5L e. 15L Ans$er% d &age% .> Diffic!lty% 9ard AA#S/% Analytic Skills 1):. arketers look at $here cons!mers are gathering to gain insights into cons!mption trends. The mo2ement to ________ states has lessened the demand for $arm clothing and increased the demand for air conditioning. a. Kortheast b. S!nbelt c. id$est d. "est #oast e. o!ntain Ans$er% b &age% .7 Diffic!lty% (asy AA#S/% Analytic Skills

>1

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

#hapter 0% @athering 8nformation and Scanning the (n2ironment

1)'.

8n response to the U.S. income distrib!tion trend to$ard ________1 Le2i;Stra!ss introd!ced premi!m Le2is #apital ( line to !pscale retailers and the less; e?pensi2e Le2i Stra!ss Signat!re line to mass;market retailers. a. 2ery lo$ incomes b. mostly lo$ incomes c. 2ery lo$ and 2ery high incomes d. mostly medi!m incomes e. lo$ and high incomes1 $ith a shrinking middle income segment Ans$er% e &ages% .7A>5 Diffic!lty% 9ard AA#S/% Analytic Skills 1).. "illiam rose rapidly in his organi-ation and $as the yo!ngest #(C in the companys history. "illiam $o!ld be characteri-ed as a ________. a. preser2er b. maker c. taker d. seeker e. reaper Ans$er% b &age% >1 Diffic!lty% edi!m AA#S/% 4eflecti2e Thinking 1)>. Jrito;Lay has seen a rise in chip snacking by gro$n;!ps and belie2es it is a res!lt of more directed marketing efforts to$ard ________1 $ho contin!ed to snack on Jrito;Lay prod!cts into ad!lthood. a. infants b. yo!ng children c. parents d. teens e. none of the abo2e Ans$er% d &age% >) Diffic!lty% edi!m 1)7. The Toyota &ri!s1 $ith its :: miles per gallon f!el efficiency1 $as designed in response to cons!mption trends as they related to the ________ en2ironment. a. demographic b. political;legal c. nat!ral d. economic e. social Ans$er% c &age% >) Diffic!lty% (asy AA#S/% 4eflecti2e Thinking

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

>)

&art )% #apt!ring

arketing 8nsights

105.

________ lobby go2ernment officials and press!re b!siness e?ec!ti2es to pay more attention to cons!mers rights1 $omens rights1 senior citi-ens rights1 minority rights1 and gay rights. a. &olitical action committees D&A#sE b. Uni2ersities and colleges c. The /etter /!siness /!rea! d. The U.S. #hamber of #ommerce e. an!fact!ring trade associations D TAsE Ans$er% a &age% >' Diffic!lty% (asy AA#S/% Analytic Skills

Short An&(er
101. Altho!gh e2ery manager in an organi-ation needs to obser2e the o!tside en2ironment1 marketers ha2e t$o ad2antages. "hat are those t$o ad2antages, S"gge&ted An&(er: The t$o ad2antages are% D1E They ha2e disciplined methods for collecting informationF and D)E they spend more time interacting $ith c!stomers and obser2ing competition. &age% '' Diffic!lty% edi!m AA#S/% 4eflecti2e Thinking 10). 8f yo! $ere a companys marketing information manager1 yo! $o!ld need to reali-e that yo!r marketing information system sho!ld be a cross bet$een three areas of concern Dtho!ghtsE for managers $ith respect to information. "hat are those three concerns Dtho!ghtsE, S"gge&ted An&(er: The three concerns Dtho!ghtsE are% D1E $hat managers think they need1 D)E $hat managers really need1 and D0E $hat is economically feasible. &age% '. Diffic!lty% edi!m AA#S/% Analytic Skills 100. "hat typically $o!ld be the f!nction of a sales information system, Think of an e?ample to ill!strate s!ch a f!nction. S"gge&ted An&(er: A sales information system typically s!pplies acc!rate and timely reports on c!rrent sales. See the e?ample of "al; art and its sales information system to add additional data to this *!estion. &age% '> Diffic!lty% (asy AA#S/% 4eflecti2e Thinking 103. (?plain the statement that <internal records systems s!pply res!lts data and marketing intelligence systems s!pply happenings data.= S"gge&ted An&(er: The internal records system records orders1 sales1 prices1 costs1 in2entory le2els1 recei2ables1 payables1 and so on D results dataE. arketing intelligence is a set of proced!res and so!rces managers !se to obtain e2eryday information abo!t de2elopments in the marketing en2ironment Dhappenings dataE. &age% '7 Diffic!lty% (asy AA#S/% 4eflecti2e Thinking

>0

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

#hapter 0% @athering 8nformation and Scanning the (n2ironment

10:.

Cne of the $ays that a marketer can impro2e his or her marketing intelligence f!nction is to net$ork e?ternally. "hat does net$orking e?ternally mean, S"gge&ted An&(er: A company that seeks to net$ork e?ternally does so by p!rchasing competitor prod!cts1 attending open ho!ses and trade sho$s1 reading competitors p!blished reports1 attending stockholder meetings1 talking to employees1 dealers1 distrib!tors1 s!ppliers1 and freight agents1 collecting competitors ads1 and looking !p ne$s stories abo!t competitors. &ages% '7A.5 Diffic!lty% edi!m AA#S/% 4eflecti2e Thinking

10'.

"hat is a trend and $hy is it important in marketing, S"gge&ted An&(er: A trend is a direction or se*!ence of e2ents that has some moment!m and d!rability. Trends are more predictable and d!rable than fads. A trend re2eals the shape of the f!t!re and pro2ides many opport!nities. &age% .) Diffic!lty% edi!m AA#S/% 4eflecti2e Thinking

10..

arketers today !se rele2ant online information to assess competitors prod!ct strengths and $eaknesses. List the fi2e main $ays marketers can get s!ch information online. S"gge&ted An&(er: The fi2e $ays are D1E independent c!stomer goods and ser2ice re2ie$ formsF D)E distrib!tor or sales agent feedback sitesF D0E combo sites offering c!stomer re2ie$s and e?pert opinionsF D3E c!stomer complaint sitesF and D:E p!blic blogs &age% .) Diffic!lty% 9ard AA#S/% Analytic Skills

10>.

A st!dy by management cons!lting firm cQinsey identified the potential emergence of a ne$ global ind!stry str!ct!re as a key trend to $atch in the coming years. Disc!ss this trend and $hat it means for marketers. S"gge&ted An&(er: 8n many ind!stries1 a barbell;like str!ct!re is appearing1 $ith a fe$ giants on top1 a narro$ middle1 and then a flo!rish of smaller1 fast;mo2ing players at the bottom. Similarly1 corporate borders are becoming bl!rrier as interlinked <ecosystems= of s!ppliers1 prod!cers1 and c!stomers emerge. St!dents may spec!late on the implications of these de2elopments on marketing. &age% .0 Diffic!lty% 9ard AA#S/% 4eflecti2e Thinking

107.

Disc!ss the marketing implications of the recent pop!lation e?plosion. S"gge&ted An&(er: The main demographic force that marketers monitor is pop!lation1 beca!se people make !p markets. A gro$ing pop!lation does not mean gro$ing markets1 !nless these markets ha2e s!fficient p!rchasing po$er. &ages% .:A.' Diffic!lty% edi!m AA#S/% Analytic Skills

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

>3

&art )% #apt!ring

arketing 8nsights

135.

#haracteri-e the K @eneration and ho$ it differs from @eneration +. "hat implications does this generation ha2e for marketing o2er the ne?t fe$ years, S"gge&ted An&(er: /orn after 17..1 K @eneration is !nder 0) years old in )55>. The ad2ent of the 8nternet is a defining e2ent for them1 and they $ill be the engine of gro$th o2er the ne?t t$o decades. Their core 2al!e str!ct!re is different from that of @eneration +. They are more idealistic and social;ca!se oriented1 $itho!t the cynical1 $hats;in;it;for;me1 free;agent mindset of many +ers. &age% .' Diffic!lty% 9ard AA#S/% 4eflecti2e Thinking

131.

Ass!me that yo! are a marketing manager for a yo!th clothing man!fact!rer that has j!st read abo!t the megatrend of the <rising 9ispanic infl!ence= in the United States. (?plain this megatrend and indicate $hy it might be important to yo!r company and ind!stry. S"gge&ted An&(er: Altho!gh 9ispanic ho!seholds represented only 11L of U.S. ho!seholds in )5551 they made !p half of all ne$ $orkers in the past decade. 9ispanic disposable income has risen t$ice as fast as that of the rest of the pop!lation. /y some estimates1 this is the fastest gro$ing and most infl!ential cons!mer gro!p. St!dents sho!ld indicate ho$ they might !se s!ch information. &age% .. Diffic!lty% 9ard AA#S/% !ltic!lt!ralMDi2ersity

13).

The United States has one of the $orlds highest percentages of college;ed!cated citi-ens. "hat does this mean for both marketers and employers, S"gge&ted An&(er: As a marketer1 the high percentage of college;ed!cated citi-ens in the United States s!ggests that there sho!ld be high demand for *!ality books1 maga-ines1 and tra2el. As an employer1 this means that there sho!ld be a high s!pply of skilled potential employees. &age% .> Diffic!lty% edi!m AA#S/% 4eflecti2e Thinking

130.

As a marketing manager yo! ha2e obser2ed that the pre2alence of <nontraditional ho!seholds= is on the rise. #haracteri-e a <nontraditional ho!sehold.= S"gge&ted An&(er: (?amples of the nontraditional ho!sehold $o!ld be single li2e;alones1 ad!lt li2e;togethers of one or both se?es1 single;parent families1 childless married co!ples1 and empty nesters. &age% .> Diffic!lty% edi!m AA#S/% Analytic Skills

>:

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

#hapter 0% @athering 8nformation and Scanning the (n2ironment

133.

8dentify the fi2e common income distrib!tion patterns. "hich of these types represents a good market for l!?!ry goods, S"gge&ted An&(er: The fi2e commonly !sed income distrib!tion patterns are% D1E 2ery lo$ incomesF D)E mostly lo$ incomesF D0E 2ery lo$ and 2ery high incomesF D3E lo$1 medi!m1 and high incomesF and D:E mostly medi!m incomes. #o!ntries in categories 0 and 3 are the best markets for l!?!ry goods1 as they incl!de cons!mers $ith incomes high eno!gh to pay a premi!m for s!ch prod!cts. &age% .7 Diffic!lty% edi!m AA#S/% Analytic Skills

13:.

"ithin o!r social;c!lt!ral en2ironment1 cons!mers often see themsel2es from different 2ie$s. Ass!me that yo! $ere espo!sing the view of themselves. #haracteri-e this 2ie$. S"gge&ted An&(er: &eople 2ary in their relati2e emphasis placed on self; gratification. 8n the 17'5s and 17.5s there $ere many <pleas!re seekers.= Cthers so!ght self;reali-ation. Today1 conser2atism is on the rise. &age% >5 Diffic!lty% 9ard

13'.

Describe the differences bet$een a core belief and secondary belief. &ro2ide an e?ample to ill!strate yo!r description. S"gge&ted An&(er: The people li2ing in a partic!lar society hold many core beliefs and 2al!es. These tend to persist o2er time. ost Americans belie2e in $ork1 getting married1 in gi2ing to charity1 and in being honest. Secondary beliefs are more open to change1 s!ch as $hen is the right time to get married. &age% >1 Diffic!lty% edi!m AA#S/% Analytic Skills

13..

Define a s!ccessf!l green prod!ct in the conte?t of the problems typically enco!ntered in green marketing campaigns. S"gge&ted An&(er: S!ccessf!l green prod!cts con2incingly o2ercome cons!mer concerns abo!t inferior prod!ct *!ality and false claims of greenness to pers!ade cons!mers they are acting in their o$n and societys long;r!n interests at the same time. &age% >0 Diffic!lty% edi!m AA#S/% 4eflecti2e Thinking

13>.

Some marketing efforts s!ffer from <green marketing myopia.= Define <green marketing myopia= and identify the three keys to a2oiding this. S"gge&ted An&(er: The three keys to a2oiding green marketing myopia is the tendency to o2erly foc!s on a prod!cts greenness. 8t can be a2oided by D1E appropriately positioning the cons!mer 2al!eF D)E calibrating cons!mer kno$ledgeF and D0E reinforcing the credibility of prod!ct claims. &age% >3 Diffic!lty% 9ard AA#S/% 4eflecti2e Thinking

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all

>'

&art )% #apt!ring

arketing 8nsights

137.

"hat fo!r trends in technology sho!ld marketers monitor, S"gge&ted An&(er: The fo!r trends are% D1E the pace of change1 D)E the opport!nities for inno2ation1 D0E 2arying 4PD b!dgets1 and D3E increased reg!lation. &ages% >:A>' Diffic!lty% 9ard AA#S/% Analytic Skills

1:5.

#ons!mers are increasingly $illing to s$ap personal information for c!stomi-ed prod!cts from firms. 9o$e2er1 there are still cons!mer concerns. So! kno$ that pri2acy iss!es are still a p!blic policy hot b!tton. As a cons!mer ad2ocate1 list the cons!mer concerns that seem to be the most compelling and most diffic!lt to deal $ith by the marketer. S"gge&ted An&(er: The cons!mers concerns are% D1E that they $ill be robbed or cheated1 D)E that pri2ate information $ill be !sed against them1 D0E that someone $ill steal their identity1 D3E that they $ill be bombarded $ith solicitations1 and D:E that children $ill be targeted. &ages% >'A>. Diffic!lty% edi!m AA#S/% Analytic Skills

>.

#opyright 6 )557 &earson (d!cation1 8nc. &!blishing as &rentice 9all