20 Questions
What are the forces outside marketing that affect marketing management's ability to build and maintain successful relationships with customers referred to as?
Macroenvironment
Which of the following is NOT included in the company's microenvironment?
Economic Environment
Which of the following is NOT part of the macroenvironment?
Company's Microenvironment
What does the microenvironment consist of?
Actors close to the company
What influences marketing management's ability to build and maintain successful relationships with customers?
The marketing environment
What is the study of human populations, involving size, density, location, age, gender, race, occupation, and other statistics?
Demography
Which group has an actual or potential interest in or impact on an organization’s ability to achieve its objectives?
Publics
What is the name for the group including people born between 1946 and 1964?
Baby Boomers
Which type of marketing intermediaries help the company to promote, sell, and distribute its products to final buyers?
Marketing services agencies
What is the primary responsibility of top management within a company's microenvironment?
Setting the company's overall direction and strategy
What pricing strategy involves products that must be used along with the main product?
Captive-product pricing
Which pricing strategy refers to products with little or no value produced as a result of the main product?
By-product pricing
When does segmented pricing become effective?
When the market must be segmentable and segments must show different degrees of demand
What is the primary consideration in psychological pricing?
Psychology of prices
Under which pricing strategy are several products combined at a reduced price?
Product bundle pricing
What is the primary focus of market-skimming pricing strategy?
To skim revenue layers from the market with high initial prices
What condition must be met for market-penetration pricing to be successful?
Low initial price in order to penetrate the market quickly and deeply
What is the inverse relationship of production and distribution cost to sales growth associated with?
Market-penetration pricing
What condition should NOT cancel the advantage of higher prices in market-skimming pricing strategy?
Low production and distribution costs
Which pricing strategy is characterized by setting a low initial price in order to penetrate the market quickly and deeply?
Market-penetration pricing
Study Notes
External Forces Affecting Marketing Management
- Forces outside marketing that affect marketing management's ability to build and maintain successful relationships with customers are referred to as external environments.
Company's Microenvironment
- The company's microenvironment consists of the company itself, its suppliers, marketing intermediaries, customer markets, competitors, and publics.
- Top management's primary responsibility within a company's microenvironment is to make strategic decisions.
Macroenvironment
- The macroenvironment includes demographic, economic, natural, technological, political, and cultural forces.
- The study of human populations, involving size, density, location, age, gender, race, occupation, and other statistics, is called demography.
Stakeholders
- Stakeholders are groups that have an actual or potential interest in or impact on an organization's ability to achieve its objectives.
Generational Groups
- The group including people born between 1946 and 1964 is referred to as Baby Boomers.
Marketing Intermediaries
- In marketing channels, wholesalers, retailers, and physical distribution firms help the company to promote, sell, and distribute its products to final buyers.
Pricing Strategies
- Bundled pricing involves combining several products at a reduced price.
- Complementary pricing involves products that must be used along with the main product.
- By-product pricing involves products with little or no value produced as a result of the main product.
- Segmented pricing becomes effective when different market segments have different willingness to pay.
- Psychological pricing involves considering the psychological impact of prices on consumers.
- Market-skimming pricing strategy focuses on maximizing profits by setting high prices.
- Market-penetration pricing involves setting a low initial price to penetrate the market quickly and deeply.
- For market-penetration pricing to be successful, the condition of high demand and low production costs must be met.
- The inverse relationship of production and distribution cost to sales growth is associated with the experience curve.
- In market-skimming pricing strategy, the condition that should not cancel the advantage of higher prices is the attraction of competitors.
Test your knowledge of Chapter 3 'Analyzing the Marketing Environment' from the book 'It’s Good and Good for You'. The quiz covers topics such as the company’s microenvironment, macroenvironment, demographic marketing environment, economic environment, natural environment, technological environment, political and social environment, and cultural environment.
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