Most management theorists have long told marketers that the marketing

Question

Most management theorists have long told marketers that the marketing environment is both uncontrollable and inescapable, and that therefore the marketer's critical skill is adapting to that environment. These believers in environmental determinism argue that environmental forces such as government regulation, consumers' changing tastes, and foreign competition are essentially unmanageable. But believers in strategic choice presume that decision makers can affect the environment, for instance by lobbying politicians, running public relations campaigns, and employing other techniques to shape the environment to their advantage.

Advocates of strategic choice point out that many conventional marketing tools have built-in deterministic biases. One such tool, the product life cycle (PLC) concept, occupies a prominent place in marketing theory. It holds that industries, product categories, and individual brands pass through four distinct stages: introduction, growth, maturity, and decline. Proponents prescribe specific strategies for marketing a product at each stage. The PLC concept is an "if-then" strategic tool: if one can identify the stage, then one knows which strategy to use. There is no doubt that PLC prescriptions are appropriate under certain conditions; for example, a company famous for instant-camera technology decided to enter the conventional film market in light of a steady consumer shift away from instant cameras and film, demonstrating the reasonableness of PLC orthodoxy in light of unmanageable environmental forces. But the PLC approach can often result in missed opportunities. PLC wisdom suggests that sales, profit margins, competitive intensity, and appropriate business strategy are all determined by life cycle stages, thus constraining managerial action within narrow limits. According to strategic choice advocates, however, the marketing environment is subject to human manipulation, and therefore business decisions need not be chained to the PLC "if-then" doctrine. For example, a major cereal company nurtured the adult breakfast cereal market despite warnings that cereal sales would level off as the "baby boomer" generation reached adulthood. Ignoring PLC wisdom, company executives decided to encourage the growth of the supposedly no-growth cereal industry by attempting to influence consumer tastes through targeted advertising. As a result, the ready-to-eat cereal market grew considerably within just five years, and the 25- to 49-year-old segment of the market increased by 26 percent.  
 1 
1. Which of the following is mentioned in the passage as an advantage of the PLC marketing concept?

A. It encourages decision makers to nurture seemingly no-growth markets.
B. It breaks the product life cycle into four distinct stages.
C. It generates new marketing strategies by using an "if-then" approach.
D. It exploits the fact that marketing opportunities are constrained by controllable forces.
E. It provides guidelines that are beneficial in some situations.

2 
2. Which of the following is the best example of the environmental determinist's approach to marketing as that approach is described in the passage?

A. A company known for high-quality timepieces decides to expand its customer base by also marketing an inexpensive line of watches at drugstores.
B. An orange juice producer promotes increased consumption in an advertising campaign proclaiming that orange juice is "not just delicious at breakfast."
C. Producers of unleaded gasoline lobby Congress to mandate the use of their product because of its environmental advantage.
D. An automobile manufacturer responds to a market trend of increasing taste for luxury cars by increasing its production of such cars.
E. A baking soda manufacturer promotes nontraditional uses of its product, for example as a carpet deodorizer and toothpaste supplement.

3 
3. The passage is primarily concerned with

A. pointing out some limitations of an approach to marketing and offering an alternative
B. tracing the development of an approach to marketing
C. comparing changes in the marketing strategies of two companies
D. cataloging the types of environmental forces that can affect a company's marketing strategy
E. describing an approach to marketing and providing several examples of its application

4 
4. The passage suggests that if the instant-camera manufacturer mentioned in the highlighted text had ignored PLC prescriptions, it would most likely have

A. been able to manipulate the market to its advantage
B. missed an opportunity to employ a strategic choice approach in its marketing decisions
C. suffered adverse consequences due to a failure to adjust to changing consumer preferences
D. adapted more rapidly to changes in the market environment
E. capitalized on a consumer shift away from its major products

conquerthegmat · Answer

KarishmaB   MartyMurray   GMATNinja  Please solve these RC Questions, thanks

jain67 · Answer

Hi  MartyMurray   GMATNinja   KarishmaB  Can you please help explaining this RC. I got this RC in OG mock. Really need some expert's advice on it. Thank you.

Fiji2000 · Answer

MartyMurray   GMATNinja   KarishmaB

I got this during my official mocks too and ended up getting majority wrong. Found it hard to keep track of the details. 
Would be great if you can help with the explanation, thank you!

kittle · Answer

bb  - can we get some expert's solution on this official passage? It was challenging for me during the test.

sanebeyondone · Answer

It's confusing for Q2. and Q4. They makes it seem like companies are using the same tactic, no matter PLC or environmental determinist approach.

I don't understand why choice C is wrong for Q.2. Someone please explain. Choice C could be the right answer as Choice D, imo.

For Q.4 choice C. "to adjust to changing consumer preferences" This means not changing the environment but adjusting to it. So it's the correct answer.
Choice B. "missed an opportunity to employ a strategic choice approach in its marketing decisions" is persuasive.
Though "strategic choice approach" is NOT 'PLC' appoarch but environmental determinist approach.
I made a mistake in my mind that PLC could be "strategic choice approach" too but the passage clearly mentions otherwise.

sunnypulipaka · Answer

1st Question !

The correct answer is (E) It provides guidelines that are beneficial in some situations.

The passage mentions that "there is no doubt that PLC prescriptions are appropriate under certain conditions" and provides an example of a company successfully using the PLC concept to adapt to changing consumer preferences. This suggests that the PLC approach can be useful in specific situations.

The other options are not mentioned as advantages of the PLC concept in the passage:

(A) In fact, the passage suggests that the PLC approach can lead to missed opportunities if companies follow its prescriptions too rigidly.

(B) While the PLC concept does break the product life cycle into four stages, this is not mentioned as an advantage.

(C) The "if-then" approach is mentioned as a characteristic of the PLC concept, but not as an advantage.

(D) The passage actually suggests that the PLC approach can be too limiting, implying that marketing opportunities are not constrained by controllable forces.

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sunnypulipaka · Answer

1st Question !

The correct answer is (E) It provides guidelines that are beneficial in some situations.

The passage mentions that "there is no doubt that PLC prescriptions are appropriate under certain conditions" and provides an example of a company successfully using the PLC concept to adapt to changing consumer preferences. This suggests that the PLC approach can be useful in specific situations.

The other options are not mentioned as advantages of the PLC concept in the passage:

(A) In fact, the passage suggests that the PLC approach can lead to missed opportunities if companies follow its prescriptions too rigidly.

(B) While the PLC concept does break the product life cycle into four stages, this is not mentioned as an advantage.

(C) The "if-then" approach is mentioned as a characteristic of the PLC concept, but not as an advantage.

(D) The passage actually suggests that the PLC approach can be too limiting, implying that marketing opportunities are not constrained by controllable forces.

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Radhika_Bakshi · Answer

Can someone please help me out with the solution to this passage? Recently got it incorrect in an official mock.

nishkarshs_ · Answer

pls explain q3 why A cause passage is not offering any alternative

jain67 · Answer

Hi  MartyMurray   GMATNinja   KarishmaB   Magoosh  Can you please give the solution to this RC?

GMATNinja · Answer

The passage points out the limitations of the conventional approach (i.e. the PLC concept and "environmental determinism") and offers strategic choice as an alternative, so (A) works.

abhisekagrawal · Answer

This passage contrasts two perspectives on how marketers should approach the marketing environment: environmental determinism and strategic choice.

Environmental Determinism: This view holds that the marketing environment is uncontrollable and inescapable. Marketers are seen as needing to adapt to external forces they cannot change, such as government regulations, consumer preferences, and competition. According to this view, the key skill for marketers is their ability to adapt to these external forces.

Strategic Choice: This perspective argues that marketers and decision-makers are not just passive adapters but can actively influence the environment. Proponents of strategic choice believe that through actions such as lobbying, public relations campaigns, and other strategies, marketers can shape the external environment to their advantage.

In summary, the passage presents two contrasting views on whether marketers should adapt to or actively influence their environment.

Here are the examples from the passage with their meanings:

Instant-Camera Company Example:
 Example: A company known for instant-camera technology entered the conventional film market as consumer preferences shifted away from instant cameras.
 Meaning: This illustrates that the PLC concept can guide appropriate strategies when environmental forces are unmanageable, aligning with the expected product life cycle stages.

Cereal Company Example:
 Example: A cereal company ignored the PLC prediction of stagnant growth and instead nurtured the adult cereal market through targeted advertising, leading to significant market growth.
 Meaning: This demonstrates that, contrary to the PLC's deterministic approach, companies can actively influence and expand markets by shaping consumer preferences.

Dbrunik · Answer

For the question on primary purpose, E is very tempting however, it doesn’t actually provide several. It really only provides one.

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lucasserlin · Answer

I'm not sure why the answer to question 2 is D - The question asks "which of the following is the best example of the environmental determinist's approach to  marketing ".

D is the only option that is directly demonstrating 'adapting to a changing environment', but Increasing car production is not the role of the marketer, thus my confusion about how this demonstrates an environmental determinist's approach to marketing.

Any insight onto why D is the correct over A or E?

Arjun123321 · Answer

For Question 2:
The para shows that depending on the environment, the marketting can be altered to get the best results - Also categorised as Environmental Determinism

And if a marketer is choosing a structured approach irrespective of the environement and alter the conditions to best suit the product - Strategic marketting choice.

In Q2 Option C: "   Producers of unleaded gasoline lobby Congress to mandate the use of their product because of its environmental advantage.", this is an example of how a producer on unleaded gasoline is taking in extra steps (Lobbying Congress) to favour its product. So there is no mention of the environement of gasoline industry, and the producer doesnt care for it. The producer is using a strategi approach (of lobbying the congress) to favours its product, and doesnt care of the industry of gasoline (Doesnt care if gasoline is trending, price rising, consumer preferences to it etc.)

Option D makes much more sense here since the Manufacturer is responding to the Market Trend (The environment of this industry) and thus bumping up the production profit from that trend.

Arjun123321 · Answer

You are right in your analysis of the work Marketing, but I solved this question by trying to find the BEST answer which is the closes to the Environemental Determinists Approach.

In A and E both, none of them talk about the environment of the respective industries and how its affected the decesions regarding their respective products. Same is with other answer choices except D, since it is the only one which talks about Environmental Factors and how it MIGHT have impacted the decision of some of the aspects of the product.

The question asked for BEST, and that is why, I think D is the correct answer for question 2.

KK12333 · Answer

q1. The passage contrasts two approaches to marketing strategy:

Environmental Determinism: Adapting to the environment, acknowledging it as unmanageable.
Strategic Choice: Attempting to manipulate or influence the environment to gain an advantage.
The highlighted example of the instant-camera manufacturer demonstrates the use of environmental determinism (i.e., adhering to PLC prescriptions). This company observed a consumer shift away from instant cameras and entered the conventional film market, aligning with PLC strategies and acknowledging unmanageable environmental forces.

The question asks what would likely have happened if the company had ignored PLC prescriptions—essentially failing to adapt to the observed environmental shift (i.e., changing consumer preferences). In such a case, the company would likely have been harmed by its inability to address the shifting market dynamics, leading to adverse consequences.

Why not the other options?
A. There is no evidence that ignoring PLC prescriptions would have led to market manipulation or a strategic advantage.
B. The company already followed an adaptive approach (environmental determinism), so "missing an opportunity for strategic choice" doesn't fit the context.
D. Ignoring PLC wisdom would likely slow adaptation, not speed it up, as PLC prescriptions are designed to guide responses to market changes.
E. Capitalizing on a shift away from instant cameras occurred because the company did follow PLC wisdom. Ignoring it would likely have resulted in a failure to respond effectively.

KK12333 · Answer

q2. The passage critiques the Product Life Cycle (PLC) concept, which is rooted in environmental determinism, and highlights its limitations. It then introduces strategic choice as an alternative approach that allows companies to actively shape their marketing environment rather than merely adapting to it. The discussion of examples, such as the cereal company’s success and the instant-camera manufacturer, serves to illustrate the merits and drawbacks of the two approaches.

Why not the other options?
B. The passage doesn’t trace the development of a marketing approach over time but rather critiques and compares two approaches.
C. While two companies are mentioned (the cereal company and the instant-camera manufacturer), the primary focus isn’t on comparing their strategies but on contrasting the marketing philosophies they represent.
D. The passage mentions some environmental forces (e.g., government regulation and consumer preferences), but cataloging them isn’t the main focus.
E. Although the passage describes the PLC approach and provides examples, its main purpose is to critique the PLC approach and propose an alternative (strategic choice).

KK12333 · Answer

q3. Environmental determinism, as described in the passage, involves adapting to external forces or trends in the marketing environment, which are considered uncontrollable. In this example, the automobile manufacturer is responding to a market trend (the increased demand for luxury cars) by adjusting its production to align with that trend, exemplifying an adaptive approach.

Why not the other options?
A. This represents a strategic choice to expand the customer base by entering a new market (inexpensive watches), not merely adapting to an existing trend.
B. Promoting increased orange juice consumption for nontraditional times reflects an attempt to manipulate consumer behavior, aligning with strategic choice rather than environmental determinism.
C. Lobbying Congress to mandate unleaded gasoline usage is an example of trying to influence the environment, which aligns with strategic choice.
E. Promoting nontraditional uses for baking soda is an example of reshaping consumer perceptions and preferences, another instance of strategic choice.

Most management theorists have long told marketers that the marketing

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GMAT Reading Comprehension (RC) Questions

Most management theorists have long told marketers that the marketing

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

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My Rewards