Marketing Management, 15e, Global Edition (Kotler)
Chapter 1 Defining Marketing for the New Realities
1) Which of the following statements about marketing is true?
A) It is of little importance when products are standardized.
B) It can help create jobs in the economy by increasing demand for goods and services.
C) It helps to build a loyal customer base but has no impact on a firm's intangible assets.
D) It is more important for bigger organizations than smaller ones.
E) It is seldom used by nonprofit organizations.
3) ________ management is the art and science of choosing target markets and getting, keeping,
and growing customers through creating, delivering, and communicating superior customer
value.
A) Marketing
B) Knowledge
C) Operations
D) Strategic
E) Distribution
4) Identify the correct statement about marketing management.
A) It is primarily concerned with the systematic gathering, recording, and analysis of data about
issues related to marketing products and services.
B) It focuses mostly on monitoring the profitability of a company's products and services.
C) It focuses solely on attaining an organization's sales goals in an efficient manner.
D) It is defined as the field that deals with planning and managing a business at the highest level
of corporate hierarchy.
E) It occurs when at least one party to a potential exchange thinks about the means of achieving
desired responses from other parties.
5) A social definition of marketing says ________.
A) effective marketing requires companies to remove intermediaries to achieve a closer
connection with direct consumers
B) a company should focus exclusively on achieving high production efficiency, low costs, and
mass distribution to facilitate the broadest possible access to the company's products
C) marketing is the process by which individuals and groups obtain what they need and want
through creating, offering, and freely exchanging products and services of value with others
D) marketing is the process of extracting the maximum value from consumers to facilitate
corporate growth
E) marketing is the process of aggressive selling and promotion to encourage the purchase of
products that might otherwise be unsought by the consumer
6) ________ goods constitute the bulk of most countries' production and marketing efforts.
A) Durable
B) Impulse
C) Physical
D) Luxury
E) Intangible
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7) As economies advance, a growing proportion of the economy's activities focuses on the
production of ________.
A) products
B) events
C) experiences
D) luxury goods
E) services
8) Car rental firms, hair dressers, and management consultants provide ________.
A) goods
B) experiences
C) events
D) services
E) information
9) Soccer's World Cup is promoted aggressively to both companies and fans. This is an example
of marketing a(n) ________.
A) idea
B) place
C) luxury item
D) event
E) service
Answer:
10) The "Malaysia, Truly Asia" ad campaign that showcased Malaysia's beautiful landscape and
its multicultural society in order to attract tourists is an example of ________ marketing.
A) event
B) property
C) service
D) place
E) idea
11) In Walt Disney's Magic Kingdom, customers can visit a fairy kingdom, a pirate ship, or even
a haunted house. Disney is marketing a(n) ________.
A) experience
B) service
C) event
D) organization
E) good
12) Janet is very upset that she can't get tickets to the Rolling Stones concert because they are
sold out. Which of the following demand states applies to Janet's situation?
A) nonexistent demand
B) latent demand
C) full demand
D) unwholesome demand
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E) overfull demand
13) Sales of woolen clothing usually increase during the winter season and decline thereafter.
This is an example of ________ demand.
A) irregular
B) declining
C) impulse
D) latent
E) negative
14) Julia is worried about the rising pollution levels in her city. She doesn't mind paying extra for
goods and services that use sustainable processes to help control pollution. This is an example of
________ for pollution.
A) declining demand
B) nonexistent demand
C) latent demand
D) negative demand
E) unwholesome demand
15) People in emerging countries today are becoming increasingly health conscious and are
seeking healthy food choices. As a result, demand for health foods is rising steadily, creating an
opportunity for marketers to exploit this ________ market.
A) demographic
B) business
C) need
D) geographic
E) service
16) When consumers share a strong need that cannot be satisfied by an existing product, it is
called ________ demand.
A) negative
B) latent
C) declining
D) irregular
E) nonexistent
17) When demand is ________, it implies that more customers would like to buy the product
than can be satisfied.
A) latent
B) irregular
C) overfull
D) full
E) negative
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18) In the case of ________ demand, consumers dislike the product and may even pay a price to
avoid it.
A) nonexistent
B) overfull
C) irregular
D) negative
E) declining
19) Organizations catering to the ________ market need to price their offerings carefully
because these markets usually have limited purchasing power.
A) business
B) global
C) nonprofit
D) consumer
E) exclusive
20) Which of the following is true of business markets?
A) Buyers are usually not skilled at comparing competitive product offerings.
B) Buyers have limited purchasing power.
C) Property rights, language, culture, and local laws are the most important concerns.
D) Products sold in such markets are usually highly standardized.
E) Business buyers purchase goods to make or resell a product to others at a profit.
21) The responses marketers seek from prospects include all of the following EXCEPT
________.
A) decampment
B) attention
C) a purchase
D) a vote
E) a donation
22) Jorge drinks two liters of soda each day. He is aware of the negative impacts of sugary drinks
on his health and the potential for the empty bottles to add to pollution. His demand state is best
characterized as ________ demand.
A) overfull
B) latent
C) irregular
D) unwholesome
E) nonexistent
23) P&G sells cosmetics, laundry detergent, and products like Pringles to the ________ market
by establishing strong brand images, developing superior products, ensuring their availability,
and backing them with engaging communications and reliable performance.
A) business
B) governmental
C) global
D) nonprofit
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E) consumer
39) ________ are basic human requirements, while ________ are the ways in which those
requirements are satisfied.
A) Wants; needs
B) Demands; wants
C) Needs; wants
D) Needs; demands
E) Demands; needs
40) When Frank buys his own house, he would like to have a home theater system and a jacuzzi.
He plans to save enough money in the next three years so that he can fulfill his wish. Frank's
desire for the home theater and the jacuzzi is an example of a(n) ________.
A) need
B) want
C) demand
D) unstated need
E) latent demand
41) When companies measure the number of people who are willing and able to buy their
products, they are measuring ________.
A) demand
B) price elasticity
C) real needs
D) standard of living
E) disposable income
42) A(n) ________ need is one that the consumer is reluctant or unwilling to explicitly verbalize.
A) secondary
B) unstated
C) delight
D) secret
E) stated
43) A(n) ________ need is a need that the consumer explicitly verbalizes.
A) stated
B) affirmative
C) unsought
D) delight
E) secret
44) The identification and profiling of distinct groups of buyers who might prefer or require
varying product and service mixes is known as ________.
A) segmentation
B) integration
C) disintermediation
D) cross-selling
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E) customization
45) Companies address needs by putting forth a ________, a set of benefits that they offer to
customers to satisfy their needs.
A) brand
B) value proposition
C) deal
D) marketing plan
E) demand
46) During market segmentation analysis, the marketer identifies which segments present the
greatest opportunity. These segments are called ________ markets.
A) target
B) capital
C) tertiary
D) demographic
E) developing
47) ________ reflects a customer's judgment of a product's performance in relation to his or her
expectations.
A) Brand equity
B) Satisfaction
C) Value
D) Perception
E) Brand image
48) The value of an offering is described as the ________.
A) price consumers are charged for a product
B) cost of manufacturing a product
C) degree to which consumer demand for a product is positive
D) sum of the tangible and intangible benefits and costs to customers
E) intangible benefits gained from a product
49) When Volvo runs ads suggesting that its cars are the safest that money can buy, it is trying to
________.
A) segment the market
B) provide a service
C) enter a new market
D) develop brand loyalty
E) position its product
50) If a marketer uses warehouses, transportation companies, banks, and insurance companies to
facilitate transactions with potential buyers, the marketer is using a ________ channel.
A) service
B) distribution
C) communication
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D) relationship
E) standardized
51) The ________ is the channel from raw materials to components to final products that are
carried to final buyers.
A) communication channel
B) distribution channel
C) supply chain
D) service chain
E) marketing chain
52) The actual and potential rival offerings and substitutes that a buyer might consider are
referred to as the ________.
A) supply chain
B) global market
C) value proposition
D) competition
E) marketing environment
53) The ________ environment includes the actors involved in producing, distributing, and
promoting an offering. The main actors are the company, suppliers, distributors, dealers, and the
target customers.
A) economic
B) management
C) strategic
D) task
E) tactical
54) Chipotle engages customers through Facebook, Twitter, and other social media via its
grassroots "Food with Integrity" digital strategy, which puts the focus on what it sells and where
it comes from. These are examples of ________ media.
A) owned
B) earned
C) paid
D) service
E) marketing
55) Which of the following is NOT true regarding impressions?
A) They are useful for tracking the scope of a communication.
B) They are useful for tracking the breadth of a communication's reach.
C) They can be compared across all communication types.
D) They represent a less active response than engagement.
E) They provide insight into the results of viewing the communication.
67) In an attempt to create greater competition and growth opportunities, countries often
________.
A) increase trade barriers
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B) protect industries
C) deregulate industries
D) encourage intermediation
E) reduce privatization
68) Which of the three transformative forces mentioned in the chapter is associated with the
number of mobile phones in India recently exceeding 500 million and Boston Consulting Group
believing brand marketers must enhance their "digital balance sheets"?
A) demographics
B) accountability
C) social responsibility
D) globalization
E) technology
69) By 2025, annual consumption in emerging markets will total $30 trillion and contribute more
than ________ percent of global GDP growth.
A) 65
B) 70
C) 78
D) 81
E) 85
70) The three central trends in Marketing 3.0 are collaborative marketing, globalization, and
________.
A) cultural relevance
B) horizontal marketing
C) consumer well-being
D) the rise of a creative society
E) sustained technological development
71) The Body Shop, Timberland, and Patagonia incorporate ________ as a way to differentiate
themselves from competitors, build consumer preference, and achieve notable sales and profit
gains.
A) social responsibility
B) technology
C) globalization
D) collaboration
E) goodwill
72) Tracy's is a chain of hair dressing salons for women. They use television, magazines, radio,
and newspapers to advertise their services. The owners ensure that all communication channels
deliver a common message to prospective customers. Tracy's believes in ________ marketing.
A) internal
B) integrated
C) socially responsible
D) global
E) relationship
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73) The ultimate outcome of relationship marketing is a unique company asset called the
________, consisting of the company and its supporting stakeholders.
A) brand
B) supply chain
C) marketing network
D) value proposition
E) service channel
74) Which of the following is NOT one of the 4 As customers most value?
A) acceptability
B) affordability
C) affability
D) accessibility
E) awareness
75) Which of the following reflects the "people" component of the marketing mix?
A) the creativity, discipline, and structure brought to marketing management
B) the development of new products by the marketers
C) the firm's consumer-directed activities
D) the right set of processes to guide activities and programs within the firm
E) the internal marketing of the firm
76) Which of the new four Ps encompasses the old four Ps as well as a range of other marketing
activities that might not fit well into the old view of marketing?
A) programs
B) processes
C) promotion
D) people
E) performance
84) Showrooming is associated with which of the following new consumer capabilities?
A) Consumers can tap into social media to share opinions and express loyalty.
B) Consumers can actively interact with companies.
C) Consumers can use the Internet as a powerful information and purchasing aid.
D) Consumers can reject marketing they find inappropriate.
E) Consumers can communicate on the move.
85) The drugstore chain CVS uses loyalty-card data to better understand what consumers
purchase, the frequency of store visits, and other buying preferences, which is associated with
which technology-enhanced company capability?
A) Companies can reach consumers quickly and efficiently via social media and mobile
marketing, sending targeted ads, coupons, and information.
B) Companies can improve purchasing, recruiting, and internal and external communications.
C) Companies can improve cost efficiency.
D) Companies can collect fuller and richer information about markets, customers, prospects, and
competitors.
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E) Companies can use the Internet as a powerful sales channel.
86) The success of online purchasing resulted in ________ in the delivery of products and
services by intervening in the traditional flow of goods through distribution channels.
A) disintermediation
B) diversification
C) reduced competition
D) deregulation
E) privatization
87) In response to threats from such companies as [Link], E*TRADE, and dozens of
others, established manufacturers and retailers became "brick-and-click" oriented by adding
online services to their existing offerings. This is known as ________.
A) reintermediation
B) disintermediation
C) retail transformation
D) e-collaboration
E) new-market synchronization
88) When eBay and [Link] cut out the majority of middlemen that normally would
participate in the exchange process, it is an example of ________.
A) deregulation
B) reverse auctioning
C) reintermediation
D) disintermediation
E) diversification
89) Each of the following is true about the Internet's impact on the way business is conducted
today, EXCEPT one. Identify the exception.
A) It has facilitated high-speed communication among employees.
B) It has empowered consumers with easy access to information.
C) It can be used as a powerful sales channel.
D) It has facilitated mass marketing but not the sale of customized products.
E) It enables marketers to use social media to advertise their products.
90) Which of the following is NOT a consumer touch point?
A) store layouts
B) package designs
C) product functions
D) shipping and logistics
E) All of these are touch points.
96) Which of the following holds that consumers prefer products that are widely available and
inexpensive?
A) the product concept
B) the production concept
C) the selling concept
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D) the performance concept
E) the marketing concept
97) Managers of ________ businesses concentrate on achieving high manufacturing efficiency,
low costs, and mass distribution.
A) selling-oriented
B) product-oriented
C) production-oriented
D) marketing-oriented
E) consumer-oriented
98) The ________ concept holds that consumers will favor offerings with the best quality,
performance, or innovative features.
A) product
B) marketing
C) production
D) selling
E) holistic marketing
99) Which of the following categories of goods and services is most likely to require an
aggressive use of the selling concept?
A) shopping goods
B) unsought goods
C) necessary goods
D) luxury goods
E) complementary goods
100) As a major steel manufacturer, SteelMakers Inc. focuses on having the most efficient
manufacturing processes in place. The company believes that its competitive edge lies in its
ability to offer the best prices. They also maintain an excellent distribution network that ensures
wide availability of their products. SteelMakers has a ________ orientation.
A) selling
B) production
C) product
D) marketing
E) social
101) Webmax Inc. produced and marketed cameras. After considerable research and
development, they developed a new digital camera that had an array of new features. Webmax
was so sure about the new offering that they even reduced their marketing budget. What sort of
orientation does Webmax have toward the marketplace?
A) production orientation
B) product orientation
C) selling orientation
D) marketing orientation
E) holistic marketing orientation
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102) Rick Johnson trains his company's sales force to target the consumer. He repeatedly asks
his team to bear in mind the fact that it is the sales team's responsibility to rouse the consumer's
interest and make the consumer feel that he or she needs the product. A true salesman is one who
can convert an indifferent consumer walking into the store into a new customer. Johnson
believes in the ________ concept.
A) product
B) production
C) selling
D) marketing
E) social responsibility
103) Marketers at Johnny Inc. believe in putting their customers ahead of everything else. Their
products are carefully designed to meet customer requirements and the entire focus is on
achieving customer satisfaction. Johnny Inc. follows the ________ concept in doing business.
A) production
B) product
C) selling
D) marketing
E) social responsibility
104) The ________ concept holds that consumers and businesses, if left alone, will ordinarily not
buy enough of the organization's products.
A) production
B) selling
C) marketing
D) product
E) holistic marketing
105) Identify the concept that emerged in the mid-1950s as a customer-centered, sense-and-
respond philosophy.
A) the product concept
B) the production concept
C) the selling concept
D) the marketing concept
E) the holistic marketing concept
106) The marketing concept holds that ________.
A) a firm should find the right products for its customers, and not the right customers for its
products
B) customers who are coaxed into buying a product will most likely buy it again
C) a new product will not be successful unless it is priced, distributed, and sold properly
D) consumers and businesses, if left alone, won't buy enough of the organization's products
E) a better product will by itself lead people to buy it without much effort from the sellers
107) ________ marketing is based on the development, design, and implementation of marketing
programs, processes, and activities that recognize their breadth and interdependencies.
A) Niche
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B) Holistic
C) Relationship
D) Supply chain
E) Demand-centered
108) What are the four broad components of holistic marketing?
A) relationship, internal, position, and performance marketing
B) integrated, internal, position, and performance marketing
C) relationship, integrated, internal, and performance marketing
D) integrated, relationship, social responsibility, and position marketing
E) relationship, social responsibility, internal, and performance marketing
109) ________ marketing aims to build mutually satisfying long-term collaboration with key
constituents, such as customers, employees, suppliers, distributors, and other marketing partners,
in order to earn and retain their business.
A) Integrated
B) Demand-based
C) Direct
D) Relationship
E) Internal
110) Which of the following is most consistent with the integrated marketing approach?
A) A good product will sell itself.
B) If left alone, consumers are inclined to purchase only inexpensive products.
C) All communication to consumers must deliver a consistent message irrespective of the
medium.
D) In order to succeed, the main focus should be on having an efficient production process in
place.
E) Online marketing is less important than traditional marketing efforts.
111) Which aspect of holistic marketing motivates employees and ensures that everyone in the
organization embraces appropriate marketing principles, especially senior management?
A) relationship marketing
B) integrated marketing
C) internal marketing
D) network marketing
E) performance marketing
112) Financial accountability and social responsibility marketing are elements of ________
marketing.
A) performance
B) relationship
C) internal
D) social
E) mass
113) Companies are recognizing that much of their market value comes from ________,
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particularly their brands, customer base, employees, distributor and supplier relations, and
intellectual capital.
A) variable assets
B) value propositions
C) intangible assets
D) market offerings
E) industry convergence
114) Holistic marketing incorporates ________ marketing, an understanding of broader concerns
in the ethical, environmental, legal, and social context of marketing activities.
A) internal
B) cultural
C) social responsibility
D) relationship
E) integrated
115) Design is at the root of ________.
A) acceptability
B) affordability
C) affability
D) accessibility
E) awareness
116) McCarthy classified marketing activities into the four Ps of the marketing mix. These four
Ps stand for ________.
A) product, positioning, place, and price
B) product, production, price, and place
C) promotion, place, positioning, and price
D) place, promotion, production, and positioning
E) product, price, promotion, and place
117) Incorporating the holistic view of marketing, the four Ps of the marketing mix can be
updated to ________.
A) product, positioning, people, and price
B) people, processes, place, and promotion
C) product, processes, price, and people
D) people, processes, programs, and performance
E) product, price, promotion, and people
118) ________ combined with affordability determines the product's value proposition.
A) Acceptability
B) Affluence
C) Affability
D) Accessibility
E) Awareness
119) Sheth and Sisodia say ________ is ripest for improvement because most companies are
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either ineffectual or inefficient at developing it.
A) acceptability
B) affordability
C) affability
D) accessibility
E) awareness
143) At the heart of any marketing program is the firm's ________, its tangible offering to the
market.
A) strategy
B) product
C) brand
D) value
E) people
Answer: B
Diff: 1
LO: 1.7: What tasks are necessary for successful marketing management?
AACSB: Reflective thinking
144) ________ activities include those the company undertakes to make the product accessible
and available to target customers.
A) Line extension
B) Segmentation
C) Marketing research
D) Channel
E) New-product development
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