MKT L2 MCQs

1 Introduction to Marketing Environment

What is marketing environment?

1. broader, societal forces that affect the organization’s microenvironment.

2. Factors and forces outside the marketing that affect marketing managers ability to build and
maintain a successful relationship with customers.
3. The marketing environment refers to the most influential force that is shaping the marketing
environment which includes forces that are new technologies affecting new products and market
opportunities.
4. Forces close to an organization that have a direct impact on its ability to serve its customers.

Marketing Environment is,

1. Largely uncontrollable
2. Changing fast
3. Influencing marketing decisions
4. All of these

2 Importance for businesses to analyze the marketing environment

What is not an importance for businesses to analyze the marketing environment?

1. To determine threats and opportunities.

2. Identification of growth areas.
3. Understand customers.
4. To generate loses in marketing process.

3 Classification of the Marketing environment

Which of the following is the correct classification of the marketing environment?

1. Microenvironment & Macroeconomic

2. Organizational & External
3. Macroenvironment & Microenvironment
4. Economic & Marketing
3.1 Microenvironment

What is Microenvironment?

1. Factors and forces outside the marketing that affect marketing managers ability to build and
maintain a successful relationship with customers.
2. Forces close to an organization that have a direct impact on its ability to serve its customers.
3. Broader, societal forces that affect the organization’s macroenvironment.
4. Natural resources that are required as inputs for businesses or that are affected by marketing
activities.

Which of the following is not a factor of the microenvironment?

1. Suppliers
2. Publics
3. Economy
4. Customers

Parties that distribute the firm's goods are called,

1. Intermediaries
2. Suppliers
3. Consumers
4. Shops

Which statement is incorrect about the microenvironment factor “Company’?

1. All the departments within a company have the ability to impact the marketing department.
2. Moreover, they have the potential to impact customer satisfaction positively or negatively
3. All departments must “think consumer” and work together to provide superior customer value and
satisfaction.
4. None of above

Which statement is true about the suppliers?

1. Cost and supply availability must be checked by the marketing department.

2. Suppliers promote, sell, and distribute their goods to final buyers.
3. Has an indirect impact on the overall quality of the offering.
4. Their problems are not important because they can’t affect marketing.
What do suppliers do?

1. Suppliers help the businesses to promote, sell, and distribute their goods to final buyers.
2. Suppliers provide businesses with the materials they need to carry out their business activities.
3. Suppliers target the same market segments as you with a similar product.
4. Suppliers purchase goods and services from other businesses.

Which of the following is not considered a Marketing intermediary?

1. Physical distribution firms(stock & move goods

2. Marketing service agencies(research firms, advertising, media)
3. Financial intermediaries
4. None of above

Which of the following statement is incorrect about Customers?

1. A customer may be an individual or household, an organization that purchases a product for use in the
production of other products, or an organization that purchases a product for resale at a profit.
2. Customer is the only person who determines the success of a business.
3. The sales and revenues of a business depend on the customers.
4. Businesses should have a well understanding of customer needs and wants.

What is not true about Competitors?

1. Competitors are those who sell the same or similar products and services as your organization
2. Marketing management must consider the activities of its competitors because of their similar aim of
satisfying customers.
3. Competitor analysis and monitoring are not crucial for an organization to maintain or improve its
position within the market.
4. If a business is unaware of its competitor's activities, they will find it very difficult to “beat” their
competitors.

Which statement is true about Public?

1. Public refers to the laws, government agencies, and pressure groups, Influence and limit organizations
and individuals within a society increasing legislation.
2. The public has the power to help you reach your goals; just as they can also prevent you from achieving
them.
3. Each class of public has the same agenda and needs to be treated the same.
4. Public is considered a Macroenvironment factor.
3.2 Macroenvironment

What is Macroenvironment?

1. Factors that affect consumer buying power and spending patterns, trends of interest, changes in
income.
2. Broader, societal forces that affect the organization’s microenvironment.
3. Factors and forces outside the marketing that affect marketing managers ability to build and
maintain a successful relationship with customers.
4. Forces close to an organization that have a direct impact on its ability to serve its customers.

The study of human factors is considered with,

1. Demographic environment
2. Anthropology
3. Economic environment
4. Rocket Science

Identify true or false

The microenvironment is concerned with factors common to society as a whole.

1. True
2. False

The macro-environment is usually out of the company's control.

1. True
2. False

The company is part of the macroenvironment.

1. True
2. False

In terms of its effect on marketers. the increase in petrol price, mostly affected the
____________ environment

1. Cultural
2. Political
3. Social
4. Economic
Which of the following statements is true?

1. Demography is the study of human population in terms of size, density, location, age, gender,
occupation, and other statistics.
2. The political environment consists of factors that affect consumer purchasing power and spending
patterns.
3. The economic environment refers to the laws, government agencies, and pressure groups, Influence
and limit organizations and individuals within a society increasing legislation
4. The natural environment includes institutions and other forces that affect society’s basic values,
perceptions, preferences behaviors, etc.

What is not considered a part of a company's macro-environment?

1. Demographic forces.
2. Marketing channel forces.
3. Technological forces.
4. Natural forces.

What is not a component of Demographic environment?

1. Human population
2. Inflation
3. Density
4. Education level

Which of the following statement is incorrect regarding Economic environment?

1. Economic environment is a factor of Microenvironment that has a direct impact on the business
organization.
2. Economic environment consist of factors such as consumer buying power, trends of interest, changes
in income, consumer debt levels rising.
3. All these environmental factors must be studied in depth because they affect buyers’ demands and
hence the product’s demand.
4. Credit availability and saving trends in the economy have an influence on the purchasing ability of the
consumer.
Which of the following statement is wrong?

1. Natural environment consists of natural resources that are required as inputs for businesses or that
are affected by marketing activities.
2. Businesses should be aware of the threats and opportunities associated with the trends in the natural
environment.
3. Growing shortages of raw materials, Increased pollution, Increased government intervention are the
newest trends in the natural environment.
4. Most corporates are now looking for anti-green approaches to build their brand image.

Which of the following statement is incorrect regarding the Technological environment?

1. Technology is the most influential force that is shaping the marketing environment which includes
forces that are rules and regulations that affect enterprises.
2. New technology creates new markets and opportunities, Replaces existing products and services,
Research and development activity drives this sector.
3. Marketers should watch the technological environment closely.
4. Companies that do not keep up will soon find their products outdated.

Which of the following statement is incorrect regarding the Political environment?

1. Almost every business activity including marketing activities is subject to laws and regulations.
2. Political environment consists of natural resources that are required as inputs for businesses or that
are affected by marketing activities.
3. Governments set up public policies to guide businesses that also limit business for the good of society
as a whole.
4. None of above

Which of the following statement is incorrect regarding Cultural Environment?

1. The Cultural environment includes institutions and other forces that affect society’s basic values,
perceptions, preferences behaviors, etc.
2. The companies must take the Cultural environment into consideration before making marketing
strategies.
3. The Cultural environment can affect production and marketing decisions deeply which must be studied
in depth.
4. None of above
 4 Responding to environmental changes

What are the approaches in responding to environmental changes?

a) Reactive
b) Active
c) Didactive
d) Proactive
e) Deactive

1. b and e
2. b, d, and e
3. a and d
4. None of above

"A proactive approach focuses on eliminating problems before they arise, while a reactive approach
is based on responding to events as they occur". Is this statement true or false?

1. True
2. False

"Instead of influencing environmental forces, the marketing manager adjusts the marketing
strategies to the environmental changes." To what approach does this statement apply?

1. Proactive approach
2. Economic approach
3. Reactive approach
4. Functional approach

What is the approach that responds before the environment changes?

1. Reactive approach
2. Functional approach
3. Proactive approach
4. Decision-making approach
What is the approach that responds after the environment changes?

1. Reactive approach
2. Functional approach
3. Proactive approach
4. Decision-making approach

Which statement is true about the Proactive approach?

1. Do not analyze competitor behavior, products, or market.

2. It may sometimes save time as it does not include unnecessary planning.
3. Projects may not meet target dates and may exceed the budget since there is no proper planning.
4. None of above

Which statement is true about the Reactive approach?

1. Marketers identify what is constraining market opportunity and develop strategies to overcome the
obstructing environmental forces.
2. Avoids threats and problems or makes handling problems easier.
3. Improves productivity, efficiency, and the quality of the final product.
4. None of above

5 Marketing audit

What is the marketing audit?

1. The marketing audit is the comprehensive assessment of all angles of marketing operation in an
organization.
2. The marketing audit is a model that identifies and analyzes five competitive forces that shape every
industry and helps determine an industry's weaknesses and strengths.
3. The marketing audit refers to a set of elements that can directly influence organizational marketing
decisions.
4. The marketing audit refers to factors and forces that affect marketing managers' ability to build
and maintain successful relationships with customers.

How is the Environmental Audit mainly classified as?

1. External & Macro

2. External & Internal
3. Internal & Micro
4. Macro & Micro
Which of the following is not an external marketing tool?

1. PESTEL
2. Strategy audit
3. Porter five force analysis
4. OT of SWOT

Which of the following is not relevant to the microenvironment tools?

1. Porter Five Force analysis

2. Strategic group mapping
3. PESTEL
4. Needs

External Environmental audit can further be categorized as,

1. Micro and Micro

2. Internal and External
3. Micro and Macro
4. SWOT and Systems audit

5.1.1 PESTEL analysis

Six letters of “PESTEL” in PESTEL analysis stand for,

1. Psychological, Economic, Societal, Technical, Natural, and Legal

2. Political, Economic, Social, Technological, Environmental, and Legal
3. Political, Economic, Social, Tax, Environmental, and Legal
4. Political, Economic, Social, Technological, Employment, and Legal

According to the PESTEL Analysis, “Climate change” is a,

1. Political factor
2. Technological factor
3. Environmental factor
4. Legal factor
5.1.2 Porter’s 5 forces analysis
Which one of the following is not included in Porter's Five Forces Analysis elements?

1. Customer bargaining power

2. Rivalry among existing firms
3. Economies of scale
4. Threat of Substitutes

The element of "Rivalry among existing firms" is considered about,

1. Considered how strong the position of buyers is.

2. Measures the competition between the existing players.
3. Measures the level of difficulty for new entrants to start to compete and identify which barriers
exist.
4. An assessment of how strong the position of sellers is.

The element of "Threat from new entrance" is considered about,

1. Considered how strong the position of buyers is.

2. Measures the competition between the existing players.
3. Measures the level of difficulty for new entrants to start to compete and identify which barriers
exist.
4. An assessment of how strong the position of sellers is.

Obstacles that potential newcomers would encounter when entering a market are called,

1. Economies of scale
2. Barriers to entry
3. Technology protection
4. Buyer switching costs

5.1.3 SWOT analysis

Which of the following SWOT elements are internal factors for a business?

1. Strengths and Weaknesses

2. Opportunities and Threats
3. Strengths and Opportunities
4. Weaknesses and Threats
Which of the following is false regarding why a SWOT Analysis is used?

1. To build on the strengths of a business

2. To minimize the weaknesses of a business
3. To reduce opportunities available to a business
4. To counteract threats to a business

“SWOT” stands for?

1. Strengths, Wellbeing, Outsiders, Threat

2. Strengths, Weaknesses, Outstanding, Threats
3. Strengths, Weakness, Opportunities, Threats
4. Strengths, Wellbeing, Outstanding, Threats

If you wanted to look at factors out of control of the business which may affect it, you would look
at:

1. Strengths and Weaknesses

2. Strengths and Threats
3. Outsiders or Threats
4. Opportunities and Threats

Which one of the following is a strength in an organization?

1. Lack of Financial resources

2. Specialized marketing expertise
3. Unskilled employees
4. Conflicting environment

The two internal elements of SWOT analysis are,

1. Weaknesses and Threats

2. Opportunities and Threats
3. Strength and Weaknesses
4. Strengths and Threats
Select the correct statement.

1. A technological change that makes existing products potentially obsolete is a threat to the business.
2. Strengths and weaknesses are external factors.
3. Skilled employees are an opportunity for the business.
4. Lack of Financial Resources is a threat to the business.

Changing consumer lifestyles that potentially increase demand for your company's products is a,

1. Strength
2. Weakness
3. Opportunity
4. Threat

A new competitor in one of your important existing markets is a,

1. Strength
2. Weakness
3. Opportunity
4. Threat