Lesson 4: Analyzing the Business Environment

Which of the following is a criticism of cause-related marketing?

• Cause-related marketing is more of a strategy for selling than giving

• Cause-related marketing is placing the burden of giving on the consumer instead of the company

• Cause-related marketing is becoming commonplace, and consumers are just ignoring it

• Cause-related marketing is shown to hurt rather than help a company in the long run

The significant increase in _____________ marketing has forced on companies a new set of social and ethical issues that focus primarily on privacy issues.

• cause-related

• telephone

• social network

• Internet

The purpose of applying for a patent is to protect the company’s right to

• produce and sell an invention

• pursue the development of an invention

• keep new product development secret

• market new products over the Internet

Companies are using social media in their marketing strategies to allow

• customers to post comments in support of their products

• two-way conversations with customers and prospective customers

• easy access to customer databases for one-to-one marketing

• announcements to reach a larger audience

A perfect competition is desired because

• no single business has a significant impact on quality, price, or supply for a given product

• each business contributes the same amount toward the gross domestic product (GDP) for a given product

• there are many sellers vying for the buyers in a given market

• there are a small number of sellers, each with substantial market share, vying for the many buyers in the market

Consumer markets consist of

• individuals that buy goods and services to resell

• companies that produce products to sell to consumers

• households that buy goods for personal consumption

• government agencies that buy goods to produce public services

Understanding a target customer base allows a company to

• develop and market a product that is desired by all possible consumers

• develop products that are more desirable and cheaper than the competition

• create a marketing strategy that is tailored for a particular group of consumers

• write a marketing plan that is effective for a product, regardless of consumer characteristics

In the product development process, marketers should treat their suppliers

• strictly as vendors to avoid relationship issues

• with professionalism, but without developing too close of a relationship

• as partners to ensure product success

• like part of the family, with suppliers working alongside the marketing team

Which of the following is not a possible supplier impact on product development?

• shortages or delays in supplies

• labor strikes

• rising costs of supplies

• under-budgeting supply costs

Which of the following is not a customer market targeted by companies?

• cultural markets

• reseller markets

• government markets

• consumer markets