Chapter - Scanning the Marketing Environment and Capturing Markets True/False Questions
1. Market demand for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined environment under a defined marketing program.
2. Company demand is the expected level of company sales based on a chosen marketing plan and an assumed marketing environment.
3. A trend is unpredictable, short-lived, and without social, economic, and political significance.
4. Paradoxically, toymakers have thrived in China despite its one-child policy.
5. According to ideas found in the concept of market evolution, as market growth slows down, the market splits into finer segments and high market consolidation occurs.
6. Market fragmentation is often followed by a market consolidation caused by the emergence of a new attribute that has strong appeal.
Multiple Choice Questions
7. The is the set of consumers who have a sufficient level of interest in a market offer.
a. market
b. target market
c. potential market
d. available market
e. qualified market
8. Which of the following defines the set of consumers who have interest, income, and access to a particular offer?
a. Market.
b. Target market.
c. Potential market.
d. Available market.
e. Qualified market.
9. Which of the following best describes the expected level of company sales based on a chosen marketing plan and an assumed marketing environment?
a. Company sales forecast.
b. Sales quota.
c. Sales budget.
d. Company demand.
e. Market potential.
10. A is the set goal for a product line, company division, or sales representative.
a. sales quota
b. sales budget
c. sales potential
d. sales forecast
e. sales aggregation
11. A sales quota is .
a. the expected level of company sales based on a given sales plan
b. a conservative estimate of the expected volume of sales
c. the sales goal set for a product line, company division, or sales representative
d. typically expressed as the company's share of market demand at alternative levels of the marketing effort
e. the percentage of total product available in the industry that each division or salesperson is supposed to sell in a given period of time
12. A is a conservative estimate of the expected sales volume, and is used primarily for making current purchasing, production, and cash-flow decisions.
a. company sales forecast
b. sales quota
c. sales budget
d. company demand
e. market potential
13. is the maximum amount of sales that might be available to all of the firms in an industry during a given period under a given level of industry marketing effort and given environmental conditions.
a. Total market potential
b. Company sales quota
c. Company demand potential
d. Selective demand potential
e. Integrated demand potential
14. The manufacturer of the line of Grote industrial meat slicers wants to identify all of the supermarkets, delis, and restaurants that are potential customers for its products in each of its market areas. Then it wants to estimate which model each will need to buy. What method of assessing market potential will the manufacturer need to use?
a. The multiple-factor index method.
b. The market-buildup method.
c. The total market potential formula.
d. The market-demand breakdown.
e. A multi-regression analysis.
15. Companies commonly use a three-stage procedure for preparing a sales forecast. This first step is to .
a. project the ability of supply to meet demand
b. predict consumer spending trends
c. prepare an industry forecast
d. prepare a microeconomic forecast
e. prepare a macroeconomic forecast
16. Spotting trends is an important task for companies that wish to sell in the future. Which of the following is NOT a part of the approach used by experts at trend-spotting?
a. Searching through the trash of competitors.
b. Seeing the future as an extension of the past.
c. Analyzing the actions of customers and other stakeholders.
d. Searching for cycles and patterns.
e. Monitoring technological and social events as they unfold.
17. The "noncontrollables" include all of the following EXCEPT:
a. socio-cultural.
b. demographic.
c. natural.
d. technological.
e. managerial.
18. Concern with the population age distribution and ethnic mix, educational levels, and household patterns falls within which of the following environments of business?
a. Demographic.
b. Socio-cultural.
c. Competitive.
d. Technological.
e. Natural.
19. Nations vary greatly in level and distribution of income and industrial structure. Which of the following is NOT a type of industrial structure referred to in the book?
a. Subsistence economies.
b. Raw-material importing economies.
c. Raw-material exporting economies.
d. Industrializing economies.
e. Industrial economies.
20. Core beliefs and values are passed along in societies through all of the following
major social institutions EXCEPT:
a. schools.
b. churches.
c. business.
d. government.
e. All of the above are all institutions that aid in passing along core beliefs and values
21. The State Food and Drug Administration of PRC must approve all drugs before they can be sold. This reflects the importance to marketers of which environment(s) of business?
a. Demographic and socio-cultural.
b. Competitive.
c. Natural.
d. Political-legal.
e. Competitive and internal.
22. Which of the following is NOT one of the purposes for business legislation?
a. To protect society from unbridled business practices.
b. To protect firms from unfair competition.
c. To protect consumers from unfair business practices.
d. To protect some competitors from being unfairly overrun by other competitors.
e. To protect against too much competition. (moderate)
23. Markets are similar to products with respect to life-cycle concepts. All of the following are considered to be stages that markets pass through in market evolution EXCEPT .
a. emergence
b. growth
c. decline
d. maturity
e. destruction
24. A manufacturer of calculators finds when examining the calculator market that there is about an even split between customers who want a small hand calculator and those that want a large one. This type of market, in which buyer preferences scatter evenly, is called a(n) market.
a. emerging
b. mass market
c. diffused-preference
d. niche
e. standardized
25. If an entrepreneur discovers that his or her firm's market is described as being one of diffused-preferences, a (e.g., the new product can be designed to meet the preferences of one of the corners of the market) can be used to expand sales.
a. mass-market strategy
b. multiple-niche strategy
c. bipolar design strategy
d. standardized niche strategy
e. single-niche strategy
26. Eventually, competitors cover and serve all the major market segments and the market enters the maturity stage with respect to market evolution. As market growth slows down, the market splits into finer segments and high occurs.
a. market ideation
b. market consolidation
c. market fragmentation
d. market deflation
e. market escalation
27. Market fragmentation in the market evolution process is often followed by
caused by the emergence of a new attribute that has strong appeal.
a. a market consolidation
b. a market dissolution
c. a market expansion
d. a market abandonment
e. a market harvesting
28. As an entrepreneur you have decided to launch two products simultaneously to capture two different parts of the market. Which of the following would be the best descriptive title for the strategy you are employing?
a. Single-niche strategy
b. Multiple-niche strategy
c. Standardization strategy
d. Mass-market strategy
e. Adaptive strategy