Exam 4: The Marketing Environment

One component of the external environment marketing managers must understand and react to is the economic environment.Briefly describe the four economic areas of greatest concern to U.S.marketers and the marketing implications of trends in these four areas.

After-tax income is referred to as:

Many people drink bottled water today,but one national brand of bottled water was not "spring-fresh" as advertised.The water actually came from a well located in the middle of an industrial warehouse facility and next to a industrial waste site.To which organization should the consumers who thought the advertising for the bottled water was misleading complain?

Inflation is a measure of the decrease in the value of money,expressed as the percentage reduction in value since the previous year.

What is environmental scanning? Give an example of an opportunity and a threat that environmental scanning might identify for a suntan lotion company.

A marketing researcher is conducting a focus group interview with a group of working mothers to learn how Kraft can better meet their needs for convenience foods.What type of research does this represent?

When many consumers think of adhesives,they think of 3M because it makes so many kinds of adhesives used in the home.However,the world's largest adhesive producer is Henkel Consumer Adhesive,maker of Loctite and Duct tape.3M and Henkel are part of each other's _____ environment.

A(n)_____ is the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single,traditional lifestyle.

An organization is not completely at the mercy of the external environment.Explain environmental management and give an example how a motorcycle helmet manufacturer might use it.

E-cigarettes Smoking inflames non-smokers and claims the lives of more than 400,000 smokers each year,so the electronic cigarette is a welcomed alternative.Electronic cigarettes,called e-cigarettes,are battery-powered devices that emit a vapor from nicotine,flavorings,and other chemicals.It looks like a cigarette and allows smokers to inhale the nicotine vapor in places where smoking is not allowed.The product has been touted as a means to quit smoking as well.However,critics,especially the Food and Drug Administration,claim that "vaping" poses risks.In fact,the FDA claims its tests revealed a toxic chemical that is found in anti-freeze as well as other carcinogens.The FDA blocked a shipment of the product from China and banned the sale of this product in the United States.In addition to the safety issue,the FDA is concerned that children might be attracted to this product because they come in flavors other than traditional menthol,such as bubble gum,chocolate,and strawberry.The FDA wants this product to go through the same rigorous testing that drugs must go through before being marketed.However,the FDA's authority over this product is questioned.While Congress has recently given the FDA authority over tobacco products,this is not a tobacco product and the Electronic Cigarette Association is fighting the ban. -Refer to E-cigarettes.In 1964,42% of Americans smoked,but now that rate has dropped below 20%.Which environmental factor has had the greatest impact on this trend?

Interest rates,inflation,and consumer income that influence the marketing environment are called _____ factors.

Which of the following was ranked as the world's most innovative company?

Alex purchased a battery-operated drill,and the first time he used the drill,the battery pack overheated and exploded.After Alex's trip to the emergency room,it was determined that the explosion was due to a problem with how the drill was manufactured.Alex would like to lodge a complaint about the poor quality of the drill's construction.To which federal agency should he complain?

The Michigan State Legislature tried to pass a bill requiring concert promoters and venue operators to print parental warnings on tickets and advertisements for concerts and shows by performers whose recordings had content advisory labels.Promoters and venue operators prevented the passage of this bill,arguing that it would require them to make value judgments for which they were ill-equipped.The promoters and operators engaged in_____.

Zimmer Centralpulse is the world's largest producer of replacement hips and knees for orthopedic surgery.It is particularly interested in marketing in the southwestern United States,where a large aging population lives.Which external environmental element most directly explains its continued growth?

The number of firms a company must face,the relative size of these firms,and the degree of interdependence within the industry are all part of its _____ environment.

Multiculturalism occurs when all major ethnic groups in an area are roughly equally represented.

A(n)_____ is a defined group that managers feel is most likely to buy a firm's product.

Who are the baby boomers and why are they important to marketers? Name and describe the four subgroups of baby boomers that have been identified.

The external environment _____.