Exam 3: The Marketing Environment

Political forces are beyond the control of marketers, and so they can only react to them.

Marketers at Procter & Gamble have just finished up with a nationwide survey of their customers to determine the potential viability of a new product. Now the marketers must go over the data, tabulate the results, and form conclusions on whether the product idea should advance to the next level. What part of the environmental monitoring process is Procter & Gamble in at this stage?

Scenario 3.1 Use the following to answer the question. Meyers Sporting Goods, a national chain, has been doing business with Soljur Sports, a manufacturer of skateboards, for several years. Recently, it came to the attention of Meyers' financial director that the average cost per Soljur Sports skateboard had substantially increased over that of the previous year. The financial director asked the marketing department if they knew what the Soljur skateboards cost at competing sporting goods stores, to see if they too were likely hit with a higher cost. The marketing department found that the Soljur skateboards were priced at $15 less in the competing store than at Meyers. The financial director found that Soljur Sports was selling a similar number of skateboards to one of Meyers' competitors for $10 less per skateboard. The attorney for Meyers Sporting Goods immediately filed a complaint with the Federal Trade Commission. Refer to Scenario 3.1. Suppose that the Soljur Sports company was actually discriminating against Meyers Sporting Goods with its price increase. Which of the following acts prohibits this type of business behavior?

Technology assessment is

An individual's after-tax income is called his or her discretionary income, which is used for spending and/or saving.

To monitor changes in the marketing environment effectively, marketers must engage in

Price discrimination is prohibited by the ____ Act.

Which of the following companies would probably be most interested in tracking discretionary income levels?

Scenario 3.1 Use the following to answer the question. Meyers Sporting Goods, a national chain, has been doing business with Soljur Sports, a manufacturer of skateboards, for several years. Recently, it came to the attention of Meyers' financial director that the average cost per Soljur Sports skateboard had substantially increased over that of the previous year. The financial director asked the marketing department if they knew what the Soljur skateboards cost at competing sporting goods stores, to see if they too were likely hit with a higher cost. The marketing department found that the Soljur skateboards were priced at $15 less in the competing store than at Meyers. The financial director found that Soljur Sports was selling a similar number of skateboards to one of Meyers' competitors for $10 less per skateboard. The attorney for Meyers Sporting Goods immediately filed a complaint with the Federal Trade Commission. Refer to Scenario 3.1. Suppose that a customer has a complaint against Soljur Sports stores. He files a complaint with the Better Business Bureau. What action could the BBB take against Soljur if the complaint was substantiated and Soljur did not change the offending practice?

Describe what is meant by a consumer's buying power. How might this affect a marketing strategy?

The 1990 Nutrition Labeling and Education Act directly prohibits

As input for a presentation that you are jointly authoring, one of your marketing analysts submitted the following summary of the characteristics of the four different types of market structures companies compete in:

In addition to the proliferation of new organic brands, many conventional marketers have introduced organic versions of their products, including Orville Redenbacher, Heinz, and even Walmart. These firms are responding to changes in

The three major components of sociocultural forces are demographic and diversity characteristics, cultural values, and consumerism.

J. Pitner Clothing is a medium-size specialty men's and women's clothing store in a market with many other specialty stores, department stores, and discounters. It has established a reputation for offering high-quality, fashionable merchandise with quality service. J. Pitner's competitive environment would best be characterized as

A firm wants to build a subsidiary in the Middle East. However, it is apprehensive because of protests in some Middle Eastern countries and the violence in Syria. It does not know if it should take the risk of expanding. Which type of barrier does this situation represent?

Consumerism is a

A factor that affects willingness to spend is general economic conditions.

Why are marketers interested in consumers' levels of disposable income?

The Decca Electric Corporation produces light bulbs that are used in refrigerator manufacturing. Currently, only three other companies produce bulbs used in the production of refrigerators, with Decca as the leader in market share. In this case, Decca Electric Corporation would be considered