1. Environmental scanning is a one-off activity carried out by new companies. True or false?

True

False

2. Luxembourg is a member of the European Union. True or false?

True

False

3. Ferry trips and air travel can be substitute products. True or false?

True

False

4. Niche brands are sold into small, well-defined markets. True or false?
 

True

False

5. The marketing function is part of an organisation’s internal environment. True or false?

True

False

6. What does it mean if an organisation has significant economies of scale?

1. It is on a tight budget.
2. It is a large company with significant debts.
3. Because it is a large operation, its costs per product are relatively low.
4. Because it is a small operation, its product prices are relatively low.
5. It is a large company with a wide range of products.

7. How would an asset-led company make decisions on what products to sell?

1. They would choose products that made best use of their existing resources.
2. They would choose products that would bring in the best return on investment.
3. They would choose products that would enhance the company’s image.
4. They would just sell the products they already had.
5. They would base their decisions on extensive market research.

8. What does the acronym PRESTCOM stand for?

1. personal, reliable, eco-friendly, sociable, true, comprehensive, open marketing
2. political, regulatory, environmental, sociological, technological, customer, organisation, markets
3. political, real, economic, social, technological, competition, organisational, marketing
4. personal, rational, eco-friendly, social, true, creative, organisations, media
5. political, regulatory, economic, social, technological, competitive, organisational, market

9. What is the PRESTCOM analysis used for?

1. market research
2. idea development
3. product review
4. developing advertising
5. environmental analysis

10. When analysing the marketing environment, which heading should the company’s increased brand equity go under?

1. political
2. personal
3. organisational
4. environmental
5. regulatory

11. In a PRESTCOM analysis, under which heading would a change in the provisions of the Sale of Goods Act be placed?

1. political
2. regulatory
3. social
4. customer
5. marketing

12. What is the correct term for an economy that is growing, in a country with full employment, and with high business confidence in the future despite rising prices?

1. bomb
2. bust
3. upturn
4. swing
5. mixed

13. Britain has an ageing population. This trend would be identified as part of which PRESTCOM environment?

1. political
2. regulatory
3. social
4. environmental
5. market

14. In a SWOT analysis, which two elements are part of the internal environment?

1. strengths and threats
2. opportunities and threats
3. strengths and opportunities
4. weaknesses and strengths
5. weaknesses and threats

15. The first stage of a SWOT analysis is to identify relevant variables and classify them under the SWOT headings. What is the follow-on stage?

1. ranking the variables in order of importance to the organisation
2. organising the variables alphabetically
3. prioritising the variables according to their associated costs
4. classifying the variables according to PRESTCOM
5. identifying the easiest variables to deal with

16. Imagine you are conducting a SWOT analysis for a British manufacturer who exports to Thailand. If the Thai currency becomes unstable, which category would you place that in for your analysis?

1. opportunity
2. weakness
3. economic
4. strength
5. threat

17. Identify a close competitor for Walker’s crisps.

1. Golden Wonder crisps
2. Nobby’s nuts
3. mashed potato
4. Coca-Cola
5. sunflower oil

18. What do the three Cs of international marketing environmental analysis stand for?

1. country, currency and culture
2. competition, costs and culture
3. culture, costs and climate
4. country, climate and competition
5. currency, climate and costs

19. What is the general term given to any group or individual who can affect, or is affected by, an organisation’s activities?

1. shareholders
2. pressure groups
3. unions
4. stakeholders
5. board members

20. Often, the first significant company to move into a market becomes the market leader. What is the term for this?

1. first come first served
2. first mover advantage
3. market first
4. last in first out
5. organisational first

21. A SWOT analysis is used to analyse an organisation’s current ______

22. In a SWOT analysis, ______ are external environmental trends that may be advantageous for the organisation in question.

23. Most other soft drinks are close competitors of Coca-Cola but Pepsi would be classified as a ______ competitor.

24. Environmental information is used in two main ways, as an input to the _____ process and as part of ongoing analysis of marketing opportunities and threats.

25. Advertising in the UK should be legal, decent, honest and ______