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Chapter 2: The Environment in Which Marketing Operates

Multiple Choice - Terminology/Concept

E c 1. Which one of the following is NOT a part of the marketing environment?a. Controllable factors c. Interest ratesb. Uncontrollable factors d. Adaptation

E c 2. Which is a major uncontrollable factor to both the firm and its marketers?a. Overall objectives c. Competitionb. Role of other business functions d. Line of business

E a 3. A firm monitors uncontrollable factors and evaluates its strengths and weaknesses ina. feedback. c. control.b. adaptation. d. differential advantage analysis.

E c 4. In which part of the marketing environment does a firm monitor uncontrollable factors and assess its strengths and weaknesses?a. Adaptation c. Feedbackb. Corporate culture d. Target marketing

E d 5. The part of the marketing environment in which an organization plans changes in its marketing plan to reflect a new consumer trend isa. corporate culture. c. feedback.b. strategic planning. d. adaptation.

E b 6. After studying its uncontrollable environment, a firm decides to change its pricing strategy. This decision involvesa. feedback. c. marketing myopia.b. adaptation. d. mass marketing.

D a 7. Which of the following are parts of a marketer’s macroenvironment?a. A firm’s societal environment c. A firm’s distributorsb. The capabilities of the firm itself d. A firm’s pricing strategy

E b 8. The elements that are internally directed by a firm and its marketers are known asa. the marketing mix. c. marketing strategies.b. controllable factors. d. marketing tactics.

D c 9. Which of the following is NOT a controllable factor that is directed by top management?a. Role of marketing c. Selection of a target marketb. Overall objectives d. Line of business

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D c 10. Which of the following factors is NOT directed by top management?a. Role of other business functionsb. Role of marketingc. Determination of the target marketd. The firm’s corporate culture

E d 11. When business managers outline a firm’s functions, geographic coverage, and the specific business of the firm, they are detailing the firm’sa. corporate culture. c. marketing organization.b. target market. d. line of business.

D b 12. An appliance retailer has decided to limit its business to marketing major appliances in a size suitable for smaller apartments. This represents itsa. role of marketing. c. corporate culture.b. line of business. d. overall objectives.

E d 13. Marketing is given an important role in a company ifa. marketing functions are narrowly defined.b. the firm invests heavily in distribution facilities.c. marketing personnel have both short-term and long-term objectives.d. marketing personnel have decision making authority and adequate resources

are provided.

E c 14. A firm’s corporate culture refers to itsa. short- versus long-term focus.b. degree of consumer orientation.c. shared values, norms, and practices.d. role of marketing in the firm.

D b 15. Which of these factors is generally considered NOT to be controllable by marketing personnel?a. The marketing mix c. The selection of a target marketb. Overall objectives d. The marketing organization

D c 16. A commonly used market segment would classify consumers on the basis of a. perceived risk. c. age group.b. ownership. d. risk tolerance.

E c 17. The particular group of customers a firm proposes to serve with a particular marketing program is its a. unified segment. c. target market.b. benefit segment. d. market segment.

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E b 18. The process of subdividing a market into clear subsets of customers that act in the same way or have comparable needs is referred to asa. demographic marketing. c. lifestyle segmentation.b. market segmentation. d. target marketing.

D a 19. Which of these is NOT a marketing objective?a. To reduce dependence on a key supplierb. To improve a company’s overall imagec. To increase a firm’s average purchase from its customersd. To increase customer inquiries

D d 20. Which of the following is an example of a marketing objective?a. To maintain return on investment at 14 percentb. To earn a 7-year payback period on a new plantc. To double the current research and development budgetd. To increase market share to 15 percent

E b 21. The unique features in a firm’s marketing program that cause consumers to patronize the firm, and not competitors, is itsa. marketing mix. c. corporate culture.b. differential advantage. d. technological mix.

D a 22. A firm is a low-cost provider in an industry on the basis of cost economies due to its high market share and key patents. This illustrates itsa. differential advantage. c. target market.b. marketing objective. d. marketing mix.

E c 23. The structural arrangement that directs marketing functions is outlined in thea. marketing mix. c. marketing organization.b. firm’s objectives. d. corporate culture.

D c 24. In a functional form of marketing organization, responsibility is assigned on the basis of a. customer location.b. customer size.c. buying, selling, promotion, and distribution.d. product category.

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E d 25. In which marketing organization format does a firm use a single individual to make packaging, advertising, distribution, and pricing decisions for each individual brand?a. Centralized c. Market-orientedb. Functional d. Product-oriented

E c 26. Managers are assigned on the basis of customer type and/or geographic market in which marketing organization format?a. Centralized c. Market-orientedb. Product-oriented d. Functional

E c 27. The specific combination of marketing elements used to achieve objectives and satisfy the target market is thea. differential advantage. c. marketing mix.b. marketing strategy. d. marketing plan.

E b 28. Which of the following is NOT a component in a firm’s marketing mix?a. Pricing decisions c. Product decisionsb. Feedback and adaptation d. Distribution decisions

E b 29. The marketing mix involvesa. planning, implementation, and control decisions.b. product, distribution, promotion, and price decisions.c. strengths, weaknesses, opportunities, and threats (SWOT) analysis.d. product, packaging, personnel, and promotion decisions.

E b 30. Decision making relating to supplier choice and what functions to assign to others are part of a. pricing decision making. c. promotion decision making.b. distribution decision making. d. product decision making.

E a 31. Which statement concerning uncontrollable factors is correct?a. Uncontrollable factors cannot be fully directed by an organization and its

marketers.b. While uncontrollable factors can be fully directed by top management, they

cannot be directed by its marketers.c. Uncontrollable factors cannot be incorporated into a marketing plan.d. Uncontrollable factors are not susceptible to contingency planning

techniques.

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D a 32. Which of these is an uncontrollable factor for both an organization and its marketers?a. The unemployment rateb. The firm’s marketing organizationc. The role of marketing in the firmd. The firm’s corporate culture

E b 33. In which competitive structure does a firm have the most control over its marketing plan?a. Pure competition c. Monopolistic competitionb. Monopoly d. Oligopoly

D d 34. In a monopoly situation, the firm’s key marketing task is toa. differentiate its products on the basis of nonprice factors.b. differentiate its products on any factors.c. ensure a large product supply at low prices.d. maintain its uniqueness and to prevent competitors from entering the

market.

E b 35. In an oligopoly,a. just one firm sells a particular good or service.b. a few firms comprise most of an industry’s sales.c. several firms, each with a unique marketing mix, exist in an industry.d. many firms sell virtually identical goods or services.

E d 36. In an oligopolistic competitive structure,a. the market is often quite small.b. there are no discernible consumer segments.c. each firm has total control over its marketing plan.d. firms like to engage in nonprice competition.

E a 37. Which competitive structure most closely describes the bottled/canned soda industry?a. Oligopoly c. Monopolistic competitionb. Monopoly d. Pure competition

E a 38. When an industry has several firms, each of which is striving to offer a unique marketing mix, which competitive structure exists?a. Monopolistic competition c. Oligopolistic competitionb. Differentiated competition d. Pure competition

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E b 39. The most common competitive structure in the United States isa. monopoly. c. oligopoly.b. monopolistic competition. d. pure competition.

D a 40. An important characteristic of monopolistic competition is thata. startup costs are relatively low.b. major firms have significant patent protection.c. barriers to entry exist which reduce competition.d. most firms sell identical products.

E d 41. In which competitive structure are firms unable to create a long-run differential advantage?a. Oligopoly c. Monopolyb. Monopolistic competition d. Pure competition

D a 42. A firm that looks carefully at the marketing strategy of its indirect competitorsa. defines its competitors in generic terms.b. is in a monopolistic competition competitive environment.c. practices marketing myopia.d. views competition in a narrow framework.

E b 43. Federal legislation affecting marketers can be divided into three major categories: antitrust, discriminatory pricing, and unfair trade practices; industry deregulation; anda. natural resource conservation and protection.b. consumer protection.c. fraudulent business practices.d. regulation of mergers and acquisitions.

D d 44. The goal of legislation designed to maintain “a level playing field” is toa. reduce price competition among competing firms.b. protect consumers from unethical marketing practices.c. make domestic firms more competitive with foreign firms.d. protect smaller firms from anticompetitive activities of larger firms.

D d 45. The major role of the Federal Trade Commission is toa. ensure that consumers obtain low prices.b. protect businesspeople from unfair competition from foreign-owned firms.c. develop and enforce rules relating to consumer product safety.d. enforce rules against unfair methods of competition and deceptive business

practices.

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E b 46. The annual value of goods and services produced in a country less net foreign investment is a country’sa. trade surplus. c. balance of payments.b. gross domestic product. d. trade deficit.

D a 47. Real income is thea. income earned by a person adjusted by the rate of inflation.b. income earned by a person after deducting all costs for luxuries.c. actual dollar income earned by a person.d. actual after-tax income earned by a person.

E c 48. Technology refers to the development and use ofa. research and development.b. major innovations.c. machinery, products, and processes.d. engineering resources.

D a 49. A consumer survey conducted by an industrial marketer to determine the images of its multiple brand is an illustration of which part of the marketing environment?a. Feedback c. Objectivesb. Adaptation d. Uncontrollable factors

E d 50. In marketing myopia, a firma. defines its business in terms of broadly defined consumer needs.b. acquires intermittent consumer feedback.c. has an aggressive approach to marketing.d. has a narrow-minded view of marketing and its environment.

Multiple Choice - Applied/Comprehensive/Integrative

E b 51. In developing a marketing plan, a marketing manager must take into account marketing factors that are uncontrollable by marketing personnel. These variables includea. pricing and distribution management.b. consumers and competition.c. marketing objectives and technology.d. marketing organization and supplier prices.

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D d 52. When the top management of a computer manufacturer decides to purchase a former supplier of computer cases, this decision has the greatest impact on the company’sa. overall objectives. c. corporate culture.b. marketing functions. d. line of business.

D a 53. A firm defines its line of business broadly to take advantage of potential opportunities. For example, instead of classifying itself as a manufacturer of high fidelity equipment, it views itself as an entertainment technology firm. The firma. defines competition in generic terms.b. practices marketing myopia.c. practices mass marketing.d. has a flexible corporate culture.

D c 54. Which controllable factor is defined in broad terms for a conglomerate?a. Corporate culture c. Line of businessb. Overall objectives d. Role of other business functions

E d 55. In contrast to its overall objectives, a firm’s marketing objectives are more frequently stated in terms ofa. long-term objectives. c. return on investment.b. profits. d. consumer image.

D a 56. The role of marketing is greatest in which competitive structure? a. Monopolistic competition c. Oligopolyb. Pure competition d. Monopoly

D d 57. A firm calls its employees “associates,” prefers to promote from within, uses participative management, and focuses on long-term (not short-term) performance. These values reflect the firm’sa. formality. c. marketing orientation.b. controllable factors. d. corporate culture.

D c 58. When the senior executives at a home improvement center communicate the firm’s concern for high levels of customer service and for honesty in dealing with customers (they should sell a $1 washer instead of a $100 faucet, if only the washer is needed), the executives are communicating the firm’sa. marketing mix. c. corporate culture.b. role of marketing. d. line of business.

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D c 59. A restaurant appeals to consumers who desire family-oriented meals. It offers an informal dining atmosphere, family-size portions, and special menus for children accompanied by family members. Most of its patrons live within 5 miles of the restaurant, have annual family incomes in excess of $50,000, and dine with their children. These consumers comprise the restaurant’sa. marketing target. c. target market.b. marketing mix. d. customer base.

E b 60. Objectives relating to the time span between a customer’s ordering merchandise and its receipt, and customer satisfaction ratings are examples ofa. overall objectives. c. short-term objectives.b. marketing objectives. d. long-term objectives.

D a 61. A hospital supply firm has a unique computer program which facilitates reordering hospital supplies. Orders are placed directly to the wholesaler who guarantees next day delivery. This program and order cycle time represent the wholesaler’s a. differential advantage. c. marketing mix.b. marketing philosophy. d. target strategy.

E c 62. Without a differential advantage, a company would have aa. poorly integrated marketing plan.b. limited target market.c. “me-too” philosophy.d. mass-market orientation.

D c 63. Which statement about a differential advantage is correct?a. It is most difficult to get and keep a differential advantage in a monopoly.b. Only large firms can develop and maintain a differential advantage.c. Individual firms can have no differential advantage in pure competition.d. A firm can develop a differential advantage in pure competition through

nonprice marketing factors.

E d 64. A personal computer manufacturer generates consumer loyalty through the use of direct marketing, Web-based ordering, high levels of customer service, and low prices due to its assuming wholesale and retail functions. These strategic elements constitute itsa. marketing plan. c. marketing mix.b. market segmentation approach. d. differential advantage.

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D c 65. A marketing organizationa. is usually headed by a product or sales manager.b. is independent of a firm’s corporate culture.c. should adapt to situational factors.d. is not subject to the control of top management.

Questions 66 and 67 are linked to this scenario: As vice-president of marketing of a major appliance manufacturer (that specializes in refrigerators and ranges), you are considering various alternative organizational forms for the marketing function.

D d 66. One alternative structure would be based upon satisfying two criteria: (1) minimizing total personnel costs, and (2) having clear lines of authority and responsibility. The most appropriate organization form on the basis of these criteria isa. market-oriented. c. product-oriented.b. mixed. d. functional.

D c 67. Another alternative organization design would be based upon best meeting the needs of different market segments. For example, organizational consumers (such as builders and property owners) often purchase major appliances on the basis of cost, the availability and cost of replacement parts, and ease of repair. Final consumers, on the other hand, typically purchase major appliances largely on the basis of style and color preferences. The most appropriate organization form for the firm isa. product-oriented. c. market-oriented.b. mixed. d. functional.

E b 68. A tire manufacturer has different managers responsible for different channel members (car manufacturers who buy direct versus final consumers who purchase replacement tires from service stations, tire retailers, and mass merchandisers like Wal-Mart), even though the tires are exactly the same for each channel. This firm is using what type of marketing organization?a. Matrix-oriented c. Product-orientedb. Market-oriented d. A mixture

D c 69. A plumbing parts manufacturer has distinct market segments (professional versus do-it-yourself) that require different distribution channels. What type of marketing organization should the firm use?a. Matrix-oriented c. Market-orientedb. Product-oriented d. A mixture

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D b 70. A firm finds that its customers’ needs vary significantly by their industry focus. The optimal marketing organization should bea. functional. c. product-oriented.b. market-oriented. d. matrix-oriented.

D d 71. A company has these marketing executives: two brand managers, one market research director, and three regional advertising managers. What marketing organization format is it using?a. Product-oriented c. Functionalb. Decentralized d. A mixture

D b 72. An off-price retailer charges low prices for name-brand merchandise, does not advertise, uses low-rent locations, and relies on self-service. Together, these factors comprise the firm’sa. differential advantage. c. target market.b. marketing mix. d. corporate culture.

D d 73. A maker of inexpensive computer software provides low-cost documentation (that is available on the Web through a frequently asked questions and search format), offers limited telephone support, and does not advertise. This strategy enables the software provider to undercut competitors, while offering a high-quality product. This marketing mix isa. poorly integrated. c. distinctive.b. too expensive for the firm. d. consistent.

E a 74. Contingency plans are most often used with what type of factor?a. Uncontrollable factorb. Controllable factorc. A factor controllable by marketing, but not top managementd. A factor controlled by top management, but not marketing

E c 75. A firm with patent protection can utilize which competitive structure?a. Pure competition c. Monopolyb. Monopolistic competition d. Oligopoly

D a 76. When deregulation makes it easier for new firms to enter a market,a. an oligopoly changes into monopolistic competition.b. oligopolistic competitive structures change to monopolies.c. pure competition competitive structures change to monopolistic

competition.d. a monopoly changes to an oligopoly.

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E c 77. In an oligopoly situation, a firm should seek toa. attain differential advantages through marketing mixes that are both

different from competitors and desirable to consumers.b. lower prices to drive competitors out of the market.c. differentiate its products on the basis of nonprice factors.d. maintain its unique status.

D d 78. An important characteristic of monopolistic competition is thata. a kinked demand curve faces all firms.b. few firms exist.c. each firm has total control over price.d. each firm seeks a differential advantage through any marketing factor.

D d 79. In the most common competitive structure in the United States, each firm seeks aa. high price for its products. c. cost advantage.b. price war. d. differential advantage.

E b 80. In which competitive structure does no single firm have any control over price?a. Monopoly c. Oligopolyb. Pure competition d. Monopolistic competition

D a 81. Which competitive structure is most applicable to food products and commodities?a. Pure competition c. Monopolyb. Monopolistic competition d. Oligopoly

E a 82. A major credit card provider views any form of payment (including cash, debit cards, and checks ) as competition. This firm is defining its competitiona. in generic terms. c. in narrow terms.b. from a marketing mix perspective. d. from a strategic perspective.

D a 83. When a firm views competition in generic terms, it a. evaluates indirect competitors. c. practices marketing myopia.b. evaluates only direct competitors. d. engages in long-term planning.

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E b 84. A law limiting the price discounts that a manufacturer can legally provide to an important large retailer has the impact ofa. allowing companies much greater flexibility in implementing their

marketing mixes.b. “maintaining a level playing field” for all players.c. protecting consumers from deceptive company practices.d. raising prices for all customers in the long run.

E d 85. A person’s annual income rises by 10 percent, while the rate of inflation is 2 percent. Which of the following statements most accurately portrays this information?a. The person’s money income declined.b. The cost of living index decreased.c. The person’s real income decreased.d. The person’s real income increased.

E a 86. The use of sales analysis to periodically evaluate a firm’s marketing efforts through studying sales, profit margins, and costs by market target is an example ofa. feedback. c. adaptation.b. control. d. assessment review.

E a 87. When a manufacturer of high-speed modems monitors customer satisfaction through a mail survey of recent buyers, it deals with which part of the marketing environment?a. Feedback c. Controllable factorsb. Adaptation d. Uncontrollable factors

E c 88. An independent supermarket operator has decided to now stock bulk packages of paper towels (12 rolls to a package) in response to their successful sale in membership warehouse clubs. The supermarket operator is dealing with which part of the marketing environment?a. Corporate culture c. Adaptationb. Line of business d. Feedback

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D c 89. A manufacturer of battery-operated watches has decided to introduce a line of manual winding watches based upon high levels of interest among a small, but important group of customers. This definition of its line of business indicates that the firma. has a poor concept of its business.b. is not customer-oriented.c. is avoiding marketing myopia.d. is using market segmentation.

D d 90. A firm produces one model exercise machine, which is very successful. It believes this machine will continue to be popular for at least five years. Therefore, no other products are being planned for introduction. The firm argues that “if it isn’t broken, don’t fix it.” The firm is engaged ina. market segmentation. c. target marketing.b. marketing strategy adaptation. d. marketing myopia.

True-False - Terminology/Concept

E F 91. The marketing environment consists of these five parts: controllable factors, uncontrollable factors, feedback, control, and adaptation.

E T 92. The interaction of controllable and uncontrollable factors determines an organization’s level of success or failure in reaching its goals.

D F 93. During feedback, a firm changes its marketing plan so as to comply with the uncontrollable environment.

E T 94. Some controllable factors are directed by top management; these are not controlled by marketers.

D T 95. A firm’s line of business represents a definition of the business opportunities in which the firm seeks to be involved.

E F 96. A firm can determine its relative degree of success or failure by comparing its overall objectives with its marketing objectives.

E F 97. The role of marketing in an organization is high when marketing is equated with sales.

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E T 98. A firm’s corporate culture provides management and employees with acceptable standards of performance and behavior.

D F 99. Different firms in the same industry usually have the same corporate culture.

D F 100. A firm’s corporate culture has a weak influence on what marketing decisions are acceptable.

E F 101. A firm with multiple target markets requires one generalized marketing plan.

E F 102. In general, a firm’s overall objectives are more customer-oriented than those set by top management.

E T 103. A firm’s set of unique marketing-related features that cause its customers to patronize it and not its competitors makes up its differential advantage.

D T 104. A firm’s ability to charge a higher-than-market price in a monopolistic competition competitive environment is directly related to the size of its differential advantage.

D T 105. A differential advantage can involve any element of a firm’s marketing mix.

E F 106. A functional marketing organization assigns responsibility on the basis of geographic markets and customer types.

E T 107. A firm’s marketing organization can be comprised of a combination of functional, product-oriented, and market-oriented forms.

E F 108. A firm’s marketing mix consists of four elements: product, packaging, promotion, and price.

D T 109. Through its marketing mix, a company seeks to appeal to its target market(s).

E F 110. The organization of the marketing department is a component of the marketing mix.

D T 111. While selection of a target market is a controllable factor to marketers, the overall characteristics of the population represent an uncontrollable factor.

D T 112. As a patent expires, a firm’s competitive structure can change from a monopoly to monopolistic competition.

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E F 113. Oligopolies are characterized by ease of competitive entry.

E T 114. With monopolistic competition, firms seek to establish and maintain differential advantages through a distinctive marketing mix.

E F 115. The most common form of competitive structure in the United States is oligopoly.

D F 116. The market for a commodity product (such as agricultural produce) most closely resembles monopolistic competition.

E T 117. Federal legislation affecting marketing practices can be classified as: antitrust, discriminatory pricing, and unfair trade practices; consumer protection; and deregulation.

E F 118. The growth of a nation’s economy is generally measured through the consumer price index.

D F 119. A marketer focusing on changes in the cost of living over a 10-year period should examine changes in money income.

D T 120. While paid advertising is controllable, news stories about a company are uncontrollable by the firm.

True-False - Applied/Comprehensive/Integrative

D F 121. The use of sales call reports by a sales manager to assess customers’ attitudes toward a new product is an example of adaptation.

D T 122. The objectives of marketing, such as reducing lost sales, may conflict with a finance department objective of minimizing the investment in inventory.

D T 123. By clearly defining a company’s line of business, a large firm places restrictions on potential acquisitions that the firm may seek.

D F 124. A conglomerate has a very clear definition of its line of business.

E T 125. When a wholesaler decides to become a general merchandise wholesaler, rather than a specialty wholesaler, it is revising its line of business.

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D T 126. A company’s overall objective of increasing sales by 9 percent can be translated into marketing objectives such as increasing the average purchase by customers by 5 percent and increasing the number of loyal customers (who purchase goods 12 times a year or more) by 10 percent.

E T 127. Because of a firm’s corporate culture, product managers may have to avoid risky ventures and concentrate on products that have higher potential in the short term.

D T 128. A target market cannot consist of the mass market.

D T 129. A firm’s differential advantage of being a low-cost provider may be appealing to one target market (economical consumers who are concerned primarily with price) but undesirable to another target market (status-conscious consumers who are concerned with customer service and store atmosphere).

D T 130. A retailer with a strong differential advantage can attract customers from greater distances than a retailer with a “me-too” philosophy.

D T 131. A functional marketing organization is the best form of organization for a firm seeking to develop staff specialists.

E F 132. A firm realizes that both domestic and international consumers are important segments, with each requiring a separate marketing plan. The most appropriate marketing organization for this firm is functional.

E F 133. A travel magazine has five regional sales offices for advertising throughout the United States. Its sales organization is organized in a product-oriented format.

D T 134. A disadvantage of all marketing organizations except functional is the need for separate marketing staffs for each decentralized organizational unit.

D T 135. A dry cleaner charges a 10 percent premium over traditional market rates on the basis of its high traffic and convenient location near a major train station, its same-day service, and its providing simple tailoring services for free (such as replacing missing or cracked buttons on shirts) on all cleaning services. The firm’s total marketing program is well integrated.

E F 136. Contingency plans help a firm plan for controllable factors.

D T 137. A tire manufacturer needs a contingency plan to reflect a possible product recall.

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D T 138. An appliance manufacturer that imports significant quantities of merchandise from a foreign country needs a contingency plan in the event the value of the U.S. dollar drops relative to the country where the appliances are imported from.

E T 139. While a real-estate firm specializing in housing for senior citizens can define its target market as retired adults over 75 years old that live within a 25-mile radius of its facilities, it cannot control the number of retired adults or their purchase behavior.

D F 140. When a patent for a drug product expires, the competitive structure for the drug changes from monopolistic competition to pure competition.

D T 141. Through deregulation, a firm’s competitive structure can be changed from oligopoly to monopolistic competition.

D T 142. A firm in a pure competition competitive structure can reposition itself as being in a monopolistic competition competitive structure through a differential advantage.

E F 143. A firm that defines its competition in generic terms is more likely to practice marketing myopia than a firm that defines its competition narrowly.

D T 144. In inflationary times, real income provides a better measure of a consumer’s spending ability than actual income.

D T 145. The change in a person’s standard of living between two time periods can be best studied through evaluating his/her real income in each period.

D F 146. A person’s annual earnings rise from $100,000 to $125,000, while the inflation rate rises by 3 percent. As a result, his/her real income increases by 25 percent.

E T 147. After they accept an advertisement, independent media represent a controllable factor.

E T 148. Consumer complaint letters are a good source of feedback for a marketing-oriented firm.

D F 149. A firm can effectively implement its marketing plan through high feedback but little or no adaptation.

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E F 150. A firm practicing marketing myopia defines its line of business too broadly to have a distinct competitive advantage.

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Essay

151. Describe the marketing environment for a supermarket chain located in a major city that seeks to appeal to consumers seeking appealing ready-to-heat meal solutions, as well as those consumers wanting organic fruits and vegetables. Be complete in your answer.

152. What factors are controllable by top management but not by marketers? What is the significance of this for marketers?

153. Discuss the line of business for each of the following:a. Your college/university store. c. Your local library.b. A local pizza shop. d. McDonald’s.

154. How should the corporate culture of an electric utility change as a result of deregulation?

155. Define the term “differential advantage.” What differential advantages could a local mechanic have in contrast to a quick-change oil and lube franchise?

156. Describe the advantages and disadvantages of each of the following marketing organizational forms:a. Functional.b. Product-oriented.c. Market-oriented.

157. a. Describe the marketing mix for a retailer specializing in catering parties held at consumers’ home location.

b. Describe the marketing mix for a used car dealer specializing in low mileage compact cars.

158. From the perspective of an individual firm, distinguish between pure competition and monopolistic competition on the basis of the number of firms, the control over the marketing plan, the ease of entry, differential advantages, and the key marketing task.

159. Are marketers more interested in aggregate money income data or in real income data by market segment (such as geographic area)? Explain the value of each type of data.

160. a. Describe the concept of marketing myopia.b. How can a major manufacturer of commercial grade central air-conditioning

equipment avoid marketing myopia?

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