REVIEW UNIT 2
1. B.
2. C.
3. B.
4. B.
5. B.
6. C.
7. B.
8. C. Advertising agencies
9. C. Population size, age, and gender
10. C. Environmental change
11. B. Innovations and technological advancements
12. B. Market intermediaries
13. B. Macro environment
14. C. They target similar customers as the business
15. B. To analyze competition and market trends
16. B. Cultural values and consumer lifestyles
17. B. It helps businesses predict future trends and challenges
18. C. Marketing
19. B. It allows businesses to identify competitive advantages
20. C.
1. What is the marketing environment?
A. The physical space where marketing takes place
B. The combination of internal and external factors affecting a business
C. The technology used in marketing
D. The legal framework governing marketing activities
2. Which of the following is NOT part of the internal environment?
A. Money
B. Machinery
C. Customers
D. Markets
3. What are the two main components of the external environment?
A. Internal and micro environment
B. Micro and macro environment
C. Internal and macro environment
D. Market and non-market environment
4. Which of the following is part of the micro environment?
A. Demographic factors
B. Suppliers
C. Technological environment
D. Political-legal environment
5. What does the macro environment include?
A. Factors related directly to business operations
B. Factors like demographics, economy, and politics
C. Only the internal factors affecting business decisions
D. Only competitors and suppliers
6. Which of the following is a component of the internal environment?
A. Economic policies
B. Competitors
C. Sales department
D. Government regulations
7. The internal environment is under the control of:
A. The government
B. The marketer
C. The competitors
D. The customers
8. Which of the following is an example of a market intermediary?
A. Customers
B. Competitors
C. Advertising agencies
D. Government agencies
9. The demographic environment includes factors such as:
A. Income distribution and GDP
B. Lifestyle and cultural values
C. Population size, age, and gender
D. Political stability and laws
10. The economic environment does NOT include which of the
following?
A. GDP and inflation
B. Interest rates
C. Environmental change
D. Income distribution
11. What does the technological environment refer to?
A. The physical and climatic conditions affecting business
B. Innovations and technological advancements
C. Customer preferences and behaviors
D. The competitive landscape in the market
12. Which of the following is NOT a factor in the macro environment?
A. Social-cultural environment
B. Market intermediaries
C. Political-legal environment
D. Technological environment
13. Which component of the marketing environment is beyond the
control of a business?
A. Internal environment
B. Macro environment
C. Sales department
D. Production unit
14. What is the role of competitors in the micro environment?
A. They supply raw materials to businesses
B. They conduct market research for companies
C. They target similar customers as the business
D. They regulate business activities
15. Why is understanding the marketing environment important?
A. To ensure compliance with legal regulations
B. To analyze competition and market trends
C. To monitor the financial health of competitors
D. To avoid unnecessary marketing efforts
16. The social-cultural environment includes:
A. Population size and density
B. Cultural values and consumer lifestyles
C. Economic growth and inflation rates
D. Political stability and legal policies
17. How does the marketing environment help in planning?
A. It provides detailed financial projections
B. It helps businesses predict future trends and challenges
C. It ensures businesses operate independently of external factors
D. It eliminates the need for customer research
18. Which of the following is NOT part of the Five Ms of the internal
environment?
A. Machinery
B. Materials
C. Marketing
D. Men
19. How can understanding competitors benefit a business?
A. It helps businesses increase product pricing
B. It allows businesses to identify competitive advantages
C. It eliminates the need for innovation
D. It ensures businesses operate without competitors
20. Which of the following best describes market intermediaries?
A. Groups that provide resources to businesses
B. People who directly purchase the company's products
C. Entities involved in distributing products and services
D. Government agencies regulating the market
