Marketing Final Exam

Affect marketing regarding the competitive

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Unformatted text preview: ertising. Name and briefly describe three of these federal laws. ANS: Exhibit 4.1 describes the primary U.S. laws that affect marketing, and students can discuss any three of them. The Sherman Act (1890) makes trusts and conspiracies in restraint illegal and makes monopolies and attempt to monopolize a misdemeanor. The Clayton Act (1914) outlaws price discrimination and tying contracts. The Federal Trade Commission Act (1914) created the Federal Trade Commission (FTC) to deal with antitrust matters and outlaws unfair methods of competition. The Robinson-Patman Act (1936) prohibits charging different prices to different competing buyers and requires sellers to make supplementary services or allowances available to all purchasers on a proportionately equal basis. The Wheeler-Lea Amendments to the FTC Act (1938) broadens FTC powers and outlaws false and deceptive advertising. The Lanham Act (1946) establishes protection for trademarks. The Celler-Kefauver Antimerger Act (1950) strengthens the Clayton Act to prevent corporate acquisitions that reduce competition. The HartScott-Rodino Act (1976) requires large companies to notify the government of their intent to merge. PTS: 1 REF: 50 Communication KEY: CB&E Model Strategy OBJ: 04-7 TOP: AACSB MSC: BLOOMS Synthesis 11. What is the CPSC? How does it affect marketing? ANS: The Consumer Product Safety Commission (CPSC) is a federal regulatory agency that directly affects the marketing environment. The sole purpose of the CPSC is to protect the health and safety of consumers in and around their homes. It has the power to prescribe mandatory safety standards for almost all products consumers use. The CPSC has the power to ban dangerous products from the marketplace and levy heavy fines on offending firms. Marketers should be aware of the health and safety needs of consumers when making and distributing products. PTS: 1 REF: 50 Communication KEY: CB&E Model Strategy OBJ: 04-7 TOP: AACSB MSC: BLOOMS Synthesis 12. Describe the competitive environment for a locally owned coffeehouse in your college community. ANS: The competitive environment encompasses the number of competitors a firm must face, the relative size of the competitors, and the degree of interdependence within the industry. To answer this question, students will need to take a broad look at the competition for the consumers’ coffee dollars, including but not limited to fast-food franchises, vending machines, and convenience stores. The competition is large but is fragmented into many small units that all operate independently from each other while still trying to attract similar target markets. PTS: 1 REF: 52 Communication KEY: CB&E Model Strategy Chapter 5—Developing a Global Vision OBJ: 04-8 TOP: AACSB MSC: BLOOMS Synthesis TRUE/FALSE 1. Having a global vision means that management recognizes and reacts to international marketing opportunities, uses effective marketing strategies, and is aware of threats from foreign competitors in all...
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