TUTORIAL 2 (WEEK 1)

CHAPTER 3 - THE MARKETING ENVIRONMENT

CHAPTER 4- SOCIAL RESPONSIBILITY AND ETHICS IN MARKETING

Multiple Choice Questions

1. The __________, including economic, competitive, political, legal and regulatory, sociocultural,
and technological forces that influence(s) the firm’s strategy.

A. Operating situation
B. Marketing environment
C. Trends
D. Economic conditions

2. __________ exists when a firm with many potential competitors attempts to develop a marketing
strategy to differentiate its product.

A. Monopolistic competition
B. Monopoly
C. Pure competition
D. Oligopoly

3. Fluctuations in the economy follow a general pattern, often referred to as the __________.
A. business pattern
B. business cycle
C. marketing pattern
D. marketing cycle

4. __________ is a stage of the business cycle during which unemployment rises and total buying
power declines, stifling both consumer and business spending.

A. depression
B. prosperity
C. recession
D. income

5. Disposable income that is available for spending and saving after an individual has purchased the
basic necessities of food, clothing, and shelter is called ___________.

A. Disposable income
B. buying power
C. income
D. discretionary income
6. __________ are the influences in a society and its culture(s) that bring about changes in people’s
attitudes, beliefs, norms, customs, and lifestyle.

A. Political forces
B. Technological forces
C. Legal and regulatory forces
D. Sociocultural forces

7. In marketing, ___________ refers to an organization’s obligation to maximize its positive impact

and minimize its negative impact on society.

A. Social Responsibility
B. Marketing Citizenship
C. Marketing Ethics
D. Ethics

8. The practice of linking of products to a particular social cause on an ongoing or short term basis
known as __________.

A. Cause-related marketing
B. Strategic philanthropy
C. Green marketing
D. Consumerism

9. A(An) __________ is an identifiable problem, situation, or opportunity that requires an individual

or organization to choose from among several actions that must be evaluated as right or wrong.

A. Moral issue
B. Legal issue
C. Ethical issue
D. Dilemma issue

10. In the area of the natural environment, companies are increasingly embracing the notion of
__________, which is a strategic process involving stakeholder assessment to create meaningful
long-term relationships with customers while maintaining, supporting, and enhancing the natural
environment.

A. Community marketing
B. Customer marketing
C. Green marketing
D. Environmental marketing
Essay Questions

1. What are the four types of competition? Which is most important to marketers?

2. Define income, disposable income, and discretionary income. How does each type of income
affect consumer buying power? What factors influence a buyer’s willingness to spend?

3. Discuss the impact of technology on marketing activities. What factors determine whether a
business organization adopts and uses technology?

4. In what ways can each of the business cycle stages affect consumers’ reactions to marketing
strategies?

5. Why are environmental scanning and analysis important to marketers? Describe consumerism.
Analyze some active consumer forces in your area.

6. What is social responsibility? Why is ethics an important consideration in marketing decisions?

CASE 3.2 First solar# Turns sunshine into profits

7. Which marketing environment forces are likely to have the greatest impact on First Solar?

8. What types of organizations are most likely to exert the strongest competitive forces on First
Solar?