Test Bank For Principles of Marketing Ist Edition By Mcgrahill Education

Test Bank For Principles of Marketing Ist Edition By McGraw-Hill Education

Connect Master: Marketing, 1e (McGraw-Hill)

Chapter 5   The Marketing Environment

1) A situation in which products that perform the same function compete against one another is referred to as

A) lateral competition.

B) direct competition.

C) functional competition.

D) primary competition.

E) indirect competition.

Answer:  B

Explanation:  Also called category competition or brand competition, direct competition is where products that perform the same function compete against one another.

Difficulty: 1 Easy

Topic:  The Impact of Competitive Changes on Marketing Decisions

Learning Objective:  Explain how competitive changes affect marketing decisions.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

2) Compare the following product offerings. Which is the best example of direct competition?

A) Burger King and Subway

B) carpet cleaning stores and hardware stores that rent carpet cleaners

C) a pizza restaurant and a fried chicken restaurant

D) Google and Yahoo

E) Coca-Cola and Arizona Iced Tea

Answer:  D

Explanation:  Google and Yahoo perform the same function in that they are both Internet search engines. This fits the definition of direct competition because the products perform the same function and compete against each other.

Difficulty: 3 Hard

Topic:  The Impact of Competitive Changes on Marketing Decisions

Learning Objective:  Explain how competitive changes affect marketing decisions.

Bloom’s:  Analyze

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

3) Indirect competition occurs when

A) consumers purchase products that they did not intend to buy.

B) consumers choose between two products that perform the same function.

C) products are marketed to a new consumer segment.

D) a company introduces a new product to its product line.

E) products provide alternate solutions to the same market.

Answer:  E

Explanation:  Indirect competition is a process in which products provide alternative solutions to the same market.

Difficulty: 2 Medium

Topic:  The Impact of Competitive Changes on Marketing Decisions

Learning Objective:  Explain how competitive changes affect marketing decisions.

Bloom’s:  Understand

AACSB:  Reflective Thinking

Accessibility:  Keyboard Navigation

4) Compare the following product offerings. Which is an example of indirect competition?

A) Burger King and Subway

B) Crest and Colgate toothpaste

C) Coca-Cola and Pepsi

D) Sirius XM radio and Pandora

E) Dunkin’ Donuts and Krispy Kreme Doughnuts

Answer:  A

Explanation:  Indirect competition occurs when products provide alternate solutions to the same market. In this example, both Burger King and Subway are part of the same fast food market, but they provide alternate choices within that market.

Difficulty: 3 Hard

Topic:  The Impact of Competitive Changes on Marketing Decisions

Learning Objective:  Explain how competitive changes affect marketing decisions.

Bloom’s:  Analyze

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

5) Monitoring developments outside of the firm’s control with the goal of detecting and responding to threats and opportunities is called

A) data mining.

B) environmental scanning.

C) competitive analysis.

D) brand positioning.

E) market assessment.

Answer:  B

Explanation:  The act of monitoring developments outside of the firm’s control with the goal of detecting and responding to threats and opportunities is a process known as environmental scanning.

Difficulty: 1 Easy

Topic:  The Importance of Understanding Marketing Environments

Learning Objective:  Explain why marketing environments are important.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

6) A firm that is engaged in environmental scanning is monitoring developments outside of the firm’s control in order to detect and respond to

A) the strengths of the firm.

B) environmental issues associated with the firm’s operations.

C) market opportunities associated with environmental concerns.

D) the weaknesses of the firm.

E) threats and opportunities.

Answer:  E

Explanation:  Marketing does not occur in a vacuum. Unforeseen developments external to the firm can directly impact the success of its marketing strategy. For this reason, marketing professionals continually scan and analyze the external environment to detect and respond to threats and opportunities, a process known as environmental scanning.

Difficulty: 2 Medium

Topic:  The Importance of Understanding Marketing Environments

Learning Objective:  Explain why marketing environments are important.

Bloom’s:  Understand

AACSB:  Reflective Thinking

Accessibility:  Keyboard Navigation

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