Chapter 3

Question 1

Marketing Environment

Answer 1

The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.

Question 2

Microenvironment

Answer 2

The actors close to the company that affect its ability to service its customers-the company, suppliers, marketing intermediaries, customer markets, competitors, and publics

Question 3

Macroenvironment

Answer 3

The larger societal forces that affect the microenvironment-demographic, economic, natural, technological, political, and cultural forces

Question 4

Marketing Intermediaries

Answer 4

Firms that help the company to promote, sell, and distribute its goods to final buyers

Question 5

Public

Answer 5

Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives

Question 6

Demography

Answer 6

The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics

Question 7

Baby Boomers

Answer 7

The 78 million people born during the years following WWII and 1964
-Wealthiest generation in American history

Question 8

Generation X

Answer 8

The 49 million people born between 1965 and 1976 in the “birth dearth” following the baby boom

Question 9

Millennials (Generation Y)

Answer 9

The 83 million children of the baby boomers born between 1977 and 2000

Question 10

Economic Environment

Answer 10

Economic factors that affect consumer purchasing power and spending patterns.

Question 11

Natural Environment

Answer 11

Natural Resources that are needed as inputs by marketers or that are affected by marketing activities

Question 12

Environmental Sustainability

Answer 12

Developing strategies and practices that create a world economy that the planet can support indefinitely

Question 13

Technological Environment

Answer 13

Forces that create new technologies creating new product and market opportunities

Question 14

Political Environment

Answer 14

Laws, government agencies, and pressure groups that influence and limits various organizations and individuals in a given society

Question 15

Sherman Antitrust Act (1980)

Answer 15

Prohibits monopolies and activities that restrain trade or competition in interstate commerce

Question 16

Federal Food and Drug Act (1906)

Answer 16

Created the FDA, forbids the manufacture or sale of adulterated or fraudulently labeled foods and drugs

Question 17

Clayton Act (1914)

Answer 17

Supplements the Sherman Act by prohibiting certain types of price discrimination, exclusive dealing, and tying clauses

Question 18

Federal Trade Commission Act (1914)

Answer 18

Amends the Clayton Act to define price discriminatino as unlawful. Empowers the FTC to establish limits on quantity discounts, forbid some brokerage allowances, and prohibit promotional allowances except when made available on proportionately equal terms

Question 19

Robinson Patman Act (1938)

Answer 19

Amends the Clayton Act to define price discrimination as unlawful. Empowers the FTC to establish limits on quantity discounts, forbid some brokerage allowances, and prohibit promotional allowances except when made available on proportionately equal terms

Question 20

Wheeler-Lea Act (1938)

Answer 20

Makes deceptive, misleading and unfair practices illegal regardless of injury to competition. Places advertising of food and drugs under FTC jurisdiction

Question 21

Lanham Trademark Act (1946)

Answer 21

Protects and regulates distinctive brand names and trademarks

Question 22

National Traffic and Safety Act (1958)

Answer 22

Provides for the creation of compulsory safety standards for automobiles and tires

Question 23

Fair Packaging and Labeling Act (1966)

Answer 23

Provides for the regulation of packaging and labeling of consumer goods. Requires that manufacturers state what the package contains, who made it, and how much it contains

Question 24

Child Protection Act (1966)

Answer 24

Bans the sale of hazardous toys and articles. Sets standards for child resistant packaging

Question 25

Federal Cigarette Labeling and Advertising Act (1967)

Answer 25

Requires that cigarette packages contain the following statement: “Warning: The Surgeon General Has Determined That Cigarette Smoking Is Dangerous To Your Health.”

Question 26

National Environmental Policy Act (1969)

Answer 26

Establishes a national policy on the environment. The 1970 Reorganization Plan established the EPA

Question 27

Consumer Product Safety Act (1972)

Answer 27

Establishes the Consumer Product Safety Commission and authorizes it to set safety standards for consumer products as well as exact penalties for failing to uphold those standards

Question 28

Magnuson-Moss Warranty Act (1975)

Answer 28

Authorizes the FTC to determine rules and regulations for consumer warranties and provides consumer access to redress, such as the class action law suit

Question 29

Cultural Environment

Answer 29

Cultural factors strongly affect how people think and how they consume. So marketers are keenly interested in the cultural environment