Download Strategic Marketing

Strategic Marketing (Mooradian/Matzler)
Note 2: Context: PEST Analysis
1) A PEST analysis is most useful when a marketer needs to ________.
A) develop appropriate marketing objectives
B) analyze a firm's marketing portfolio
C) categorize a business environment
D) implement a new marketing mix
Answer: C
Diff: 2
Page Ref: 68
2) Economic communities, which are also known as ________, have developed as a result of
political changes in the last half-century.
A) free trade zones
B) open market channels
C) international entities
D) productivity communities
Answer: A
Diff: 2
Page Ref: 69
AACSB: Global economy
3) By considering technical, economic, sociocultural, and political factors, a firm is most likely
able to ________.
A) identify inadequate marketing mix elements
B) monitor changing marketing objectives
C) simplify a value delivery network
D) determine a market's potential
Answer: D
Diff: 2
Page Ref: 68
4) Which of the following is a political factor that a company should consider before deciding to
enter an international market?
A) business norms
B) trade regulations
C) industrial infrastructure
D) population size and growth
Answer: B
Diff: 2
Page Ref: 68
AACSB: Global economy
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© 2012 Pearson Education, Inc. publishing as Prentice Hall
5) Extensive customization of a product offered in different international markets would most
likely defeat which of the following benefits of global trade?
A) lower labor costs
B) lower production costs
C) higher quality materials
D) higher consumer consumption
Answer: B
Diff: 3
Page Ref: 69
AACSB: Global economy
6) The ________ environment consists of factors that affect consumer purchase ability and
buying behavior.
A) social
B) political
C) economic
D) technological
Answer: C
Diff: 1
Page Ref: 69
7) Which type of company would most likely experience countercyclical sales?
A) auto parts retailer
B) boat manufacturer
C) furniture retailer
D) pharmaceutical manufacturer
Answer: A
Diff: 2
Page Ref: 69
8) Your marketing department is currently researching the values, attitudes, and norms of your
target market. Which environment is being researched?
A) competitive
B) economic
C) political
D) social
Answer: D
Diff: 1
Page Ref: 69
9) Since the introduction of the iPhone, a booming market for smartphone applications has
emerged. It is most accurate to say that this new opportunity was created through changes in the
________ environment.
A) political and legal
B) technological
C) sociocultural
D) economic
Answer: B
Diff: 2
Page Ref: 70
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© 2012 Pearson Education, Inc. publishing as Prentice Hall
10) A firm with a ________ strategy would most likely emphasize standardization over
adaptation.
A) multinational
B) marketing
C) contextual
D) global
Answer: D
Diff: 3
Page Ref: 71
AACSB: Global economy
11) Cultures are dynamic, so marketers must constantly monitor the values, norms, attitudes, and
tastes of a marketing context.
Answer: TRUE
Diff: 2
Page Ref: 69
12) A firm that adapts its marketing mix to local environments benefits from lower production
costs.
Answer: FALSE
Diff: 2
Page Ref: 69, 71
AACSB: Global economy
13) The retail industry has embraced the globalization of markets more than any other industry.
Answer: FALSE
Diff: 1
Page Ref: 70
AACSB: Global economy
14) In a brief essay, discuss the advantages and disadvantages of standardization strategies and
adaptation strategies in a global environment.
Answer: The basic trade-off when making decisions about the adaptation of a marketing
program is between accommodating differences in context and exploiting the benefits of
standardization. The chief benefits of standardization are cost savings—savings realized by
avoiding assembly-line changeovers and via the realization of economies of scale and other
efficiencies. However, adaptations to accommodate local tastes and conditions—including local
political/regulatory conditions, economic conditions, social/cultural conditions, and technical and
infrastructure conditions—have costs and hinder the realization of benefits of scale. Still,
marketing mixes are more effective when they are adapted to the distinct needs and demands of
local markets. Thus, costs generally go up with marketing mix adaptation, but distinct markets
are clearly more responsive to tailored offerings.
Diff: 3
Page Ref: 71
AACSB: Analytic skills
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© 2012 Pearson Education, Inc. publishing as Prentice Hall