Chapter 4 The Marketing Environment Multiple Choice 1. The most commercially influential demographic group in history is _____. a.

generation X b. baby boomers c. generation Y d. seniors (b; Easy; p. 105 !. The current mar"eting en#ironment has a tendency to turn bac" the cloc" to simpler times. $hat has this yearning produced% a. massi#e nostalgia &a#e b. massi#e nutrition &a#e c. massi#e e'ercise &a#e d. massi#e music &a#e (a; Easy; p. 105 (. _____ is perhaps the company that has been most successful in riding the nostalgia &a#e. a. )apital *ecords b. +#altine c. ,ol"s&agen d. -e#i .trauss (c; /oderate; p. 105 0. /ost trend analysts belie#e that the nostalgia cra1e2&a#e &ill _____ as the baby boomers continue to mature. a. decline b. slo& c. disappear d. gro& (d; Easy; p. 103 5. 4amie 5esto&itc1 is researching the factors and forces outside mar"eting that affect mar"eting management6s ability to build and maintain successful relationships &ith target customers. $hat is 4amie researching% a. the mar"eting en#ironment b. strategic planning c. target mar"ets d. none of the abo#e (a; /oderate; p. 103

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3.

/ore than any other group in the company8 mar"eters must be the _____ and _____. a. mass merchandisers; opportunity see"ers b. trend trac"ers; mass merchandisers c. most s"illed; trend trac"ers d. trend trac"ers; opportunity see"ers (d; )hallenging; p. 103 7. You are directed to study the factors that are close to the company that affect its ability to ser#e its customers 9 the company8 suppliers8 mar"eting intermediaries8 customer mar"ets8 competitors8 and publics. $hat are you studying% a. the macroen#ironment b. the microen#ironment c. the mar"eting en#ironment d. the global en#ironment (b; /oderate; p. 107 :. You are directed to study the factors that are larger societal forces that affect your company 9 demographic8 economic8 natural8 technological8 political8 and cultural. $hat are you studying% a. the macroen#ironment b. the microen#ironment c. the mar"eting en#ironment d. the global en#ironment (a; Easy; p. 107 ;. <ll of the groups &ithin a company are called the _____. a. culture b. di#ersity c. internal en#ironment d. climate (c; Easy; p. 10: 10. $hich of the follo&ing do suppliers not pro#ide mar"eters &ithin your firm% a. resources to produce products and ser#ices b. insight into trends and competitors c. partners in creating and deli#ering customer #alue d. the funding for your paychec"s (d; /oderate; p. 10: 11. -and=ort Transportation and +mega $arehousing help distribute the goods your company sells. The t&o businesses are e'amples of _____. a. resellers b. mar"eting ser#ices agencies c. mar"eting intermediaries d. physical distribution firms (c; )hallenging; p. 10:

3:

1!. These firms help companies to stoc" and mo#e goods from their points of origin to their destinations. a. financial intermediaries b. physical distribution firms c. mar"eting ser#ice firms d. resellers (b; Easy; p. 10: 1(. 5an"s8 credit companies8 insurance companies8 and other businesses that help finance transactions or insure against the ris"s associated &ith the buying and selling of goods and ser#ices are referred to as _____. a. financial intermediaries b. physical distribution firms c. mar"eting ser#ice firms d. resellers (a; /oderate; p. 10: 10. )urrently8 you are employed by a firm that conducts mar"eting research and creates ads for other companies that help them target and promote their products to the right mar"ets. >or &hom are you employed% a. financial intermediary b. physical distribution firm c. mar"eting ser#ice firm d. reseller (c; /oderate; p. 10: 15. =ercy +riginals caters to a mar"et of indi#iduals and households that buys goods and ser#ices for personal consumption. $hat do &e call this mar"et% a. business b. reseller c. go#ernment d. consumer (d; Easy; p. 10; 13. ?ame the mar"et that buys goods and ser#ices for further processing or for use in the production process. a. business b. reseller c. &holesale d. consumer (a; Easy; p. 10;

3;

17. *achel =atino &or"s for a &holesale company called @istributors Anlimited. .he is responsible for buying and selling goods at a profit to small retailers. $hat is her mar"et% a. business b. reseller c. &holesale d. consumer (b; /oderate; p. 10; 1:. < company6s mar"eting en#ironment includes #arious _____8 &hich consists of any group that has an actual or potential interest in or impact on an organi1ation6s ability to achie#e its obBecti#es. a. teams b. audiences c. mar"ets d. publics (d; /oderate; p. 110 1;. This type of public is a radio station that carries ne&s8 features8 and editorial opinions about your area. $hat is it% a. financial b. media c. citi1enCaction d. local (b; Easy; p. 110 !0. < consumer organi1ation8 en#ironmental group8 and minority group ha#e challenged your firm6s stand on a local issue. This is the _____ public. a. general b. local c. go#ernment d. citi1enCaction (d; )hallenging; p. 110 !1. Your mar"eting en#ironment is currently researching the si1e8 density8 location8 age8 and occupations of your target mar"et. $hat is this en#ironment% a. demographic b. psychographic c. ,<-. d. geographic (a; /oderate; p. 111

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!!. .tatisticians ha#e proBected the &orld6s population to reach _____ billion by the year !0!5. a. 3.5 b. 3.; c. 7.5 d. 7.; (d; Easy; p. 111 !(. The three largest age groups in <merica are the baby boomers8 generation X8 and _____. a. seniors b. generation Y c. teens d. toddlers (b; /oderate; p. 11! !0. You distribute coupons to e#ery household in <merica. .ooner or later8 you &ill reach all ___ million people in this country. a. !37 b. !77 c. !:7 d. !;7 (c; Easy; p. 11! !5. *esearch has sho&n that the most important demographic trend in the Anited .tates is the _____. a. changing age structure of the population b. mobility of people c. slo&ing birth rate d. increase in professional Bobs (a; /oderate; p. 11! !3. .ome baby boomers are referred to as D@E?Fs.G $hat does this stand for% a. dependable income8 noC"ids couple b. don6t &or"8 intelligent8 noC"ic"s c. dualCincome8 noC"ids couple d. none of the abo#e (c; Easy; p. 11( !7. 5aby boomers &ere born bet&een the years 1;03 and _____. a. 1;50 b. 1;30 c. 1;30 d. 1;70 (c; Easy; p. 11!

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!:. This demographic age group is approaching life &ith a ne& stability and reasonableness in the &ay they li#e8 thin"8 eat8 and spend. They are _____. a. generation X b. generation Y c. baby busters d. baby boomers (d; /oderate; p. 11( !;. $hich group buys a lot of s&eaters8 boots8 electronics8 cars8 and computers% a. generation X b. generation Y c. baby boomers d. all of the abo#e (a; Easy; p. 110 (0. This group shares ne& cultural concerns8 cares about the en#ironment8 and responds fa#orably to socially responsible companies. $ho are they% a. generation X b. generation Y c. generation H d. baby boomers (a; )hallenging; p. 110 (1. $ho are the echo boomers% a. generation X b. generation Y c. generation H d. baby boomers (b; /oderate; p. 110 (!. This group has created large "id and teen mar"ets. $ho are they% a. generation X b. generation Y c. generation H d. baby boomers (b; Easy; p. 110 ((. *ecently you read a mar"eting research report that mentioned ____ has (ha#e utter fluency and comfort &ith computer8 digital8 and Enternet technology. a. generation X b. generation Y c. generation H d. baby boomers (b; /oderate; p. 110

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(0. @efining people by their birth date may be less effecti#e than segmenting them by their _____ or ____. a. income; occupation b. lifestyle; occupation c. lifestyle; life stage d. occupation; life stage (d; )hallenging; p. 113 (5. Et is interesting to note that about _____ percent of <merican households contain married couples &ith children. a. !0 b. !: c. (! d. (0 (d; Easy; p. 113 (3. The three groups of baby boomers include leading8 _____8 and trailing. a. core b. general c. secondary d. central (a; /oderate; p. 11( (7. _____ households are no& gro&ing faster than _____ households. a. Traditional; nontraditional b. -arge; traditional c. ?ontraditional; smaller d. ?ontraditional; traditional (d; /oderate; p. 113 (:. En 1;508 &omen made up (0 percent of the &or"force; no& they ma"e up _____. a. (5 percent b. 00 percent c. 0( percent d. 03 percent (d; Easy; p. 113 (;. <mericans are #ery mobile. +#er the past t&o decades8 the A... population has shifted to&ard the _____ states. a. /id&est b. &estern c. sunbelt d. southeastern (c; Easy; p. 117

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00. $ithin gi#en regions8 the population is mo#ing from large cities to the _____. a. smaller cities b. rural areas c. foreign countries d. suburbs (d; /oderate; p. 117 01. ?early 00 million <mericans are &or"ing out of their homes &ith electronic con#eniences. They are called the _____ mar"et. a. telecommuters b. .+I+ c. mobile d. &or"CatChome (b; )hallenging; p. 117 0!. =opulation shifts interest mar"eters because people in different regions _____ differently. a. eat b. thin" c. buy d. act (c; /oderate; p. 117 0(. >acts >or You research firm has Bust released a report that one of these groups of &or"ers has declined during the last !0 years. $hich one is it% a. &hite collar b. blue collar c. ser#ice d. unemployed (b; /oderate; p. 11: 00. /ar"eters need to "no& that almost e#eryone in this country is a nati#e. $hich country is it% a. )hina b. 5oli#ia c. 4apan d. Forea (c; Easy; p. 11: 05. 5ecause of increased _____8 <mericans &ill demand higher Juality products8 boo"s8 maga1ines8 tra#el8 personal computers8 and Enternet ser#ices. a. income b. family si1e c. education d. none of the abo#e (c; /oderate; p. 11:

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03. Et is important for mar"eters to "no& that the _____ population gro&th is 1! times greater than the )aucasian gro&th rate. a. Iispanic b. Ethnic c. <sian d. <frican <merican (b; )hallenging; p. 11: 07. /ost large companies "no& they must no& target specially designed _____ and _____ to ethnic groups in the Anited .tates. a. ad#ertising; ser#ices b. ser#ices; promotions c. products; promotions d. ser#ices; labeling (c; /oderate; p. 11: 0:. /embers of this group are more li"ely than the general population to ha#e professional Bobs8 o&n a #acation home8 o&n a noteboo" computer8 and o&n indi#idual stoc"s. a. yuppies b. gays and lesbians c. baby boomers d. echo boomers (b; )hallenging; p. 11; 0;. This group of <mericans totals 50 million. $ho are they% a. baby boomers b. people born in <merica c. people &ith disabilities d. none of the abo#e (c; /oderate; p. 1!0 50. $hich economic group offers fe& mar"et opportunities% a. subsistence b. secondC&orld c. industrial d. industrialCtechnical (a; Easy; p. 1!0 51. The _____ en#ironment consists of factors that affect consumer purchasing po&er and spending patterns. a. socialCcultural b. politicalClegal c. technological d. economic (d; Easy; p. 1!0

75

5!. @uring the 1;:0s8 <merican consumers fell into a(n _____ fren1y that may ne#er be eJualed again in our time. a. debt b. consumption c. unemployment d. spending (c; )hallenging; p. 1!1 5(. /ar"eters &ould do &ell to ta"e heed of the fact that this group is some&hat careful about its spending but can still afford the good life some of the time. a. -o&er class b. lo&erCmiddle class c. middle class d. upper class (c; Easy; p. 1!1 50. .ince money is tight for most <mericans8 mar"eters must stri"e a balance bet&een product Juality and price called _____. a. #alue mar"eting b. lifestyle mar"eting c. income distribution mar"eting d. satisfaction mar"eting (a; Easy; p. 1!1 55. >ind the group of e'penses that use up most household income. a. food8 housing8 retirement planning b. housing8 insurance8 ta'es c. food8 housing8 transportation d. housing8 ta'es8 transportation (c; /oderate; p. 1!! 53. Ernst Engel6s la&s generally ha#e been supported by recent studies. Ie disco#ered that as family income rises8 the percentage spent on _____ declines and the percentage spent on _____ remains about constant. a. food; clothing b. clothing; recreation2entertainment c. food; transportation d. food; housing (d; )hallenging; p. 1!! 57. +ne of the maBor concerns for mar"eters about the natural en#ironment is the _____. a. number of protestors against misuse b. shortages of ra& materials c. increases in recycling d. none of the abo#e (b; Easy; p. 1!(

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5:. The natural resources that are needed as inputs by mar"eters or that are affected by mar"eting acti#ities are referred to as the _____. a. ra& material mar"et b. natural en#ironment c. endangered en#ironment d. green mo#ement (b; Easy; p. 1!( 5;. <s a mar"eter of pesticides8 you should be concerned about all of the follo&ing natural en#ironment trends mentioned in your te't e'cept _____. a. shortages of ra& materials b. increased pollution c. increased go#ernment inter#ention d. go#ernment subsidies (d; )hallengingK p. 1!( 30. $hat mo#ement has spa&ned the mar"eter6s a&areness of en#ironmentally sustainable strategies% a. E=< b. blac" mar"et c. green mo#ement d. deregulation (c; /oderate; p. 1!0 31. )an you find the most li"ely dramatic force shaping the mar"eter6s destiny% a. technological en#ironment b. natural en#ironment c. legalCpolitical en#ironment d. deregulation (a; Easy; p. 1!0 3!. ?e& technologies create ne& opportunities and ne& _____. a. products b. ser#ices c. mar"ets d. means of financing purchases (c; /oderate; p. 1!0 3(. This country leads the &orld in research and de#elopment spending. This aids mar"eters in de#eloping ne& products for mar"et segments. a. England b. Lermany c. 5ra1il d. Anited .tates (d; /oderate; p. 1!5

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30. /ar"eters are a&are of la&s8 go#ernment agencies8 and pressure groups that influence or limit #arious organi1ations and indi#iduals in a gi#en society. $e call this the _____ en#ironment. a. socialClegal b. legalCcultural c. political d. legalCtechnological (c; Easy; p. 1!5 35. E#en the most liberal ad#ocates of freeCmar"et economies agree that the system &or"s best &ith _____. a. medium regulation b. ma'imum regulation c. occasional regulation d. at least some regulation (d; /oderate; p. 1!5 33. <s mar"eting manager for -aser Endustries8 you should be a&are that legislation affecting business around the &orld &ill continue to _____. a. e'ist b. increase c. remain steady d. decrease (b; Easy; p. 1!5 37. 5usiness legislation has been created for three basic reasonsK to protect companies from each other8 to protect consumers8 and to _____. a. protect the interests of society b. regulate prices c. increase &orld trade d. regulate monopolies (a; )hallenging; p. 1!3 3:. The reason business regulation e'ists to protect the interests of society is to limit _____. a. businesses from harming each other b. unfair business practices c. unrestrained business beha#ior d. monopolistic competition (c; /oderate; p. 1!3

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3;. Enternational mar"eters &ill encounter the most business legislation in &hat country% a. )anada b. *ussia c. )hina d. Anited .tates (d; /oderate; p. 1!7 70. /ar"eters &ill encounter legislation to regulate business acti#ity in the Anited .tates at &hich of these le#els% a. local and state b. national c. international d. all of the abo#e (d; Easy; p. 1!7 71. The recent rash of business scandals and increased concerns about the en#ironment ha#e created fresh interest in the issues of _____ and _____. a. ethics; promotion responsibility b. ethics; social responsibility c. finances; employee discrimination d. management ethics; insider trading (b; )hallenging; p. 1!7 7!. The primary concern &ith the boom in eCcommerce and Enternet mar"eting is _____. a. pornography b. ripoffs c. pri#acy d. ethics (c; /oderate; p. 1!7 7(. < society6s basic #alues8 perceptions8 preferences8 and beha#iors are found in its _____ en#ironment. a. social b. cultural c. socialCcultural d. culturalCeconomic (b; Easy; p. 1!7

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70. /ar"eters must understand that a society6s core beliefs and #alues ha#e a high degree of _____. a. persistence b. rigidity c. similarity d. ethnocentrism (a; )hallenging; p. 1!; 75. Your company is ma"ing negotiations to enter basic mar"ets in -o&er <lbania. You ha#e disco#ered that _____ beliefs and #alues are more open to change in this country. a. simple b. secondary c. primary d. core (b; Easy; p. 1!; 73. The Yan"elo#ich model maintains that the decade dri#es for the !000s &ill come primarily from the _____ and the _____. a. echo boomers; baby boomers b. generation Xers; generation Yers c. baby boomers; generation Xers d. none of the abo#e (c; )hallenging; p. 1(0 77. @uring the !000s8 baby boomers &ill be dri#en by all of the follo&ing e'cept one. a. ad#enture b. smarts c. intergenerational support d. retreating (d; /oderate; p. 1(0 7:. @uring the !000s8 gen Xers &ill be dri#en by &hich of the follo&ing factors% a. redefining the good life b. ne& rituals c. cutting and pasting d. all of the abo#e (d; )hallenging; p. 1(0 7;. <s contrasted &ith the DmeG society during the 1;:0s8 the ne& consumers are adopting more _____ beha#iors and ambitions. a. family b. conser#ati#e c. liberal d. middleCofCthe road (b; /oderate; p. 1(0

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:0. .tudies suggest a bright future for products and ser#ices that ser#e _____ needs and pro#ide real _____. a. emotional; e'citement b. basic; &ants c. basic; #alue d. e'isting; #alue (c; Easy; p. 1(0 :1. /ar"eters ha#e noticed a shift a&ay from the DmeG society to the D_____G society. a. them b. &e c. ne& d. future (b; EasyK p. 1(1 :!. Today6s employees tend to be less loyal to and more _____ of employers. a. trustful b. respectful c. ashamed d. distrustful (d; Easy; p. 1(1 :(. .ince .eptember 118 many mar"eters ha#e ta"en ad#antage of increased _____ in <mericans. a. loyalty b. patriotism c. distrust d. foreign intolerance (b; /oderate; p. 1(1 :0. =eople6s orientation to their society influences their attitudes to&ard the mar"etplace and their consumption _____. a. desires b. needs c. patterns d. &ants (c; /oderate; p. 1(1 :5. /ar"eters ha#e obser#ed from research that consumers are in#ol#ed in more camping8 hi"ing8 boating8 fishing8 and other outdoor acti#ities because of their _____. a. lo#e of nature b. a&areness of nature c. need for e'ercise d. none of the abo#e (a; /oderate; p. 1(1

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:3. )onsumers6 lo#e of nature has led to a M!5 billion industry supplying _____ and _____ products to a gro&ing mar"et. a. natural; lo&Cpriced b. organic; healthy c. natural; organic d. organic; &eightCloss (c; )hallenging; p. 1(! :7. .ome e'perts e'plain that <mericans are concerned &ith the meaning of life and issues of the soul and spirit and are on a _____ Bourney that mar"eters need to en#ision. a. religious b. philosophical c. eternal d. spiritual (d; /oderate; p. 1(! ::. Endi#iduals are bringing their spiritual a&areness to the _____ they buy. a. products b. styles c. brands d. benefits (c; /oderate; p. 1(! :;. /ar"eters can ta"e _____ by ta"ing aggressi#e action to affect the publics and forces in their mar"eting en#ironments. a. an en#ironmental perspecti#e b. an en#ironmental management perspecti#e c. a natural perspecti#e d. a natural management perspecti#e (b; )hallenging; p. 1(! ;0. >irms that ta"e an en#ironmental management perspecti#e &ill hire ____ to influence legislation affecting their industries to their ad#antage. a. mediators b. lobbyists c. negotiators d. politicians (b; Easy; p. 1(!

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True False ;1. 5aby boomers comprise the most commercially influential demographic group in history. (True; Easy; p. 103 ;!. The yearning caused by Dmillennial fe#erG is a greater desire for ad#anced electronic technology. (>alse; /oderate; p. 103 ;(. Today6s mar"eters must be good at customer relationship management and partner relationship management in order to connect effecti#ely &ith customers8 others in the company8 and e'ternal partners. (True; )hallenging; p. 103 ;0. $hen your mar"eting manager8 .u1ie F&an8 discussed factors and forces outside mar"eting that affect mar"eting management6s ability to build and maintain successful relationships &ith target customers8 you "ne& that she &as tal"ing about the e'ternal mar"eting concept. (>alse; /oderate; p. 107 ;5. 5o1 >oster8 o&ner of the !1Cstore chain of 5o1 )ycles8 e'plained to the store managers at a recent sales meeting that mar"eters8 more than any other group in the company8 must be the trend trac"ers and opportunity see"ers. You belie#e this to be a true statement. (True; /oderate; p. 107 ;3. The microen#ironment consists of the larger societal forces that affect the microen#ironment8 such as demographic8 economic8 political8 and cultural. (>alse; Easy; p. 107 ;7. The macroen#ironment consists of the factors close to the company that affect its ability to ser#ice its customers8 such as suppliers8 customer mar"ets8 competitors8 and publics. (>alse; Easy; p. 107 ;:. Your accounting department must measure re#enues and costs to help the mar"eting department "no& ho& &ell it is achie#ing its obBecti#es. (True; Easy; p. 10: ;;. Trudie 4ones &or"s for a firm that is a distribution channel member that helps the company find customers or ma"e sales to them. Trudie &or"s for a reseller. (True; /oderate; p. 10:

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100. /ar"eting research firms8 ad#ertising agencies8 media firms8 and mar"eting consulting firms are referred to as mar"eting ser#ices agencies. (True; Easy; p. 10: 101. <s an employee of 5on"ers Enterprises8 you mar"et &ild and cra1y games for teens to play at parties. You &or" in the business mar"et. (>alse; Easy; p. 10: 10!. Today6s mar"eters recogni1e the importance of &or"ing &ith their intermediaries as channels through &hich they sell their products rather than as mere partners. (>alse; /oderate; p. 10: 10(. ?o single competiti#e mar"eting strategy is best for all companies. (True; Easy; p. 10; 100. )onsumer organi1ations such as en#ironmental and minority groups may Juestion a company6s mar"eting decisions. This type of public is called the local public. (>alse; /oderate; p. 110 105. The reason the demographic en#ironment is of maBor interest to mar"eters is because it in#ol#es people8 and people ma"e up mar"ets. (True; Easy; p. 111 103. Ef the &orld &ere reduced to a #illage of 18000 people8 the crossCrepresentati#e sample &ould include 5! ?orth <mericans8 30 people &ho &ould spea" .panish8 and (!; )hristians8 and half &ould be immuni1ed against infections. (True; )hallenging; p. 111 107. The single most important demographic trend in the Anited .tates that mar"eters should understand is the changing family structure. (>alse; /oderate; p. 113 10:. Et is important to note that as baby boomers reach their pea" earning and spending years8 they become mar"ets for highCtic"et items. (True; Easy; p. 11( 10;. Len Yers buy a lot of products including cosmetics8 cars8 fast food8 s&eaters8 boots8 electronics8 mountain bi"es8 and computers. (>alse; /oderate; p. 110 110. 5y the year !0108 the Len Xers &ill ta"e o#er the baby boomers as a primary mar"et for almost e#ery product category. (True; /oderate; p. 110

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111. /ar"eters must increasingly consider the special needs of nontraditional households because they are no& gro&ing more rapidly than traditional households. (True; /oderate; p. 113 11!. < reason that chain stores and franchise restaurants ha#e done &ell in the Anited .tates is because the !1 percent of the population that is mobile can buy familiar products &here#er they go. (>alse; /oderate; p. 117 11(. The <merican &or"force today is better educated and more &hite collar. (True; Easy; p. 11: 110. $e can learn from the ad#ertising and promotion campaigns of most large companies that emphasi1ing community and family is important. (True; /oderate; p. 11: 115. )ompanies in se#eral industries are no& &a"ing up to the needs and potential of the gay and lesbian segment. (True; Easy; p. 11; 113. The gay and lesbian mar"et represents 50 million people and almost M1 trillion in annual spending po&er. Et is larger than <frican <mericans or Iispanics. (>alse; /oderate; p. 1!0 117. /ar"eters reali1e there is some8 though limited8 opportunity in this economy that consumes most of their o&n agricultural and industrial output. Et is called a third &orld country. (>alse; )hallenging; p. 1!0 11:. The mar"eting department at A... >ood.tores Bust released a report that most household income is used up in purchasing food8 housing8 and transportation. (True; /oderate; p. 1!! 11;. The significant trends in the natural en#ironment include shortages of ra& materials8 increased pollution8 and decreased go#ernment inter#ention. (>alse; )hallenging; p. 1!( 1!0. .ignificant reasons for business legislation to be enacted include protecting the interests of society8 protecting consumers8 and protecting companies from each other. (True; Easy; p. 1!5 1!1. The difference in the cultural en#ironment bet&een core #alues2beliefs and secondary ones is that the former are more open to change. (>alse; Easy; p. 1!;

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1!!. $hen firms ta"e aggressi#e action to affect the publics and forces in their mar"eting en#ironment8 they are ta"ing an en#ironmental management perspecti#e. (True; /oderate; p. 1(! Essay 1!(. =ro#ide an o#er#ie& of &hat mar"eters &ill face during the ne& millennium. The baby boomers are resisting the aging process8 and e#eryone seems to feel a bit o#er&helmed8 o#erstimulated8 o#erloaded8 and technostressed. There is a yearning to turn bac" the cloc" to simpler times. ?ostalgia plays a maBor role in boomers6 li#es. =roducts are reproduced ane& to bring bac" memories and good times. $e must be a&are of the con#ergence of a &ide range of forces in the en#ironment ranging from technological to economic8 demographic8 cultural8 social8 and political. ()hallenging; p. 103 1!0. $ho are the maBor players in a company6s microen#ironment% $ithin the company8 mar"eting management ta"es other groups into account such as top management8 finance8 research and de#elopment8 purchasing8 operations8 and accounting. .uppliers form an important lin" in the company6s o#erall customer #alue deli#ery system. /ar"eting intermediaries help the firm to promote8 sell8 and distribute its goods to final buyers. They include resellers8 physical distribution firms8 mar"eting ser#ices agencies8 and financial intermediaries. )ustomers purchase the goods and ser#ices a company produces. )ompetitors #ie for your customers6 dollars and loyalty. ,arious publics ha#e an actual or potential interest in an organi1ation6s ability to achie#e its obBecti#es. (/oderate; pp. 107C111 1!5. $hat goes into a company6s macroen#ironment% .tudying demography to determine the human population in terms of si1e8 density8 location8 age8 gender8 race8 occupation8 and other statistics in a firm6s mar"et area is essential. Et is important to note that the most single important demographic trend in the Anited .tates is the changing age structure. < firm must be a&are of generational differences and the changing <merican family structure.

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=opulations are shifting geographically and are more mobile. They are better educated and more &hite collar than in the past. @i#ersity "eeps increasing. The economy e#ol#es8 and household incomes and consumer spending habits change. The natural8 technological8 political8 and cultural en#ironments e'ert forces on the macroen#ironment. ()hallenging; pp. 111C1(! 1!3. @escribe important factors in the mar"eting en#ironment. Et consists of the factors and forces outside mar"eting that affect mar"eting management6s ability to build and maintain successful relationships &ith target customers. /ar"eters must be good at customer relationship management and partner relationship management to sur#i#e in this en#ironment. )ustomers8 suppliers8 competitors8 and #arious publics must be studied. (Easy; p. 103C111 1!7. @ifferentiate bet&een the basic mar"eting intermediaries. These groups help the company to promote8 sell8 and distribute its goods and ser#ices to final buyers. *esellers are distribution channel firms that help the company find customers or ma"e sales to them. =hysical distribution firms help the company to stoc" and mo#e goods from their points of origin to their destinations. /ar"eting ser#ices agencies are the mar"eting research firms8 ad#ertising agencies8 media firms8 and mar"eting consulting firms that help the company target and promote its products to the right mar"ets. >inancial intermediaries include ban"s8 credit companies8 insurance companies8 and other businesses that help finance transactions or insure against the ris"s associated &ith the buying and selling of goods. (/oderate; p. 10:C10; 1!:. @istinguish among the fi#e types of customer mar"ets. )onsumer mar"ets consist of indi#iduals and households that buy goods and ser#ices for personal consumption. 5usiness mar"ets buy goods and ser#ices for further processing or for use in their production process. *eseller mar"ets buy goods and ser#ices to resell at a profit. Lo#ernment mar"ets are made up of go#ernment agencies that buy goods and ser#ices to produce public ser#ices or transfer the goods and ser#ices to others &ho need them. Enternational mar"ets consist of these buyers in other countries8 including consumers8 producers8 resellers8 and go#ernments. ()hallenging; p. 107

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1!;. $hat can mar"eters learn from demography% /ar"eters can learn much about human populations in terms of si1e8 density8 age8 location8 gender8 race8 occupation8 and other statistics. $e learn that the &orld population is gro&ing at an e'plosi#e rate8 &hich means gro&ing human needs to satisfy. The baby boomer mar"et of 7: million people has created the largest single mar"et in A... history. Len Xers and Len Yers ha#e different needs and &ants and ha#e money to satisfy them. $e can learn the differences in the generations and the changing <merican family. The mobility and geographic shifts open ne& mar"eting opportunities for many companies. < betterCeducated and a more &hiteCcollar population in the Anited .tates means a shift in emphasis on many goods and ser#ices. ()hallenging; p. 111C1!0 1(0. $ho are the fi#e maBor submar"ets in the Anited .tates% $hat is the maBor significance of the mar"ets% The fi#e maBor submar"ets that ha#e their special needs and &ants include <frican <mericans8 Iispanics8 <sian <mericans8 disabled <mericans8 and the gay2lesbian mar"et. The maBor significance is that they are all gro&ing steadily and are changing the current household ma"eup. /ar"eters must study each mar"et to effecti#ely ser#e its needs. (Easy; p. 1!7C1!; 1(1. $hat steps is the go#ernment ta"ing to regulate the political en#ironment% Lo#ernments de#elop public policy to guide commerce &ith sets of la&s and regulations that limit business for the good of society as a &hole. 5usiness legislation has been enacted for a number of reasons8 including to protect companies from each other8 to protect consumers8 and to protect the interests of society. (Easy; p. 1!5C1!7

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