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Marketing Management, 15e (Kotler)
Chapter 2 Developing Marketing Strategies and Plans
1) The task of any business is to ________.
A) create customer needs
B) differentiate in terms of cost of production
C) deliver customer value at a profit
D) reduce competition
E) communicate similar value as provided by competitors
Answer: C
Diff: 1
LO: 2.1: How does marketing affect customer value?
AACSB: Reflective thinking
2) What is the traditional view of marketing?
A) Firms should just focus on production because if the products are good then they will
automatically sell.
B) Firms should just focus on production and selling because marketing occurs as a part of the
selling process.
C) Firms should have a proper marketing team that can increase consumers’ awareness of their
products and rouse their interest in them.
D) Firms should price their products as low as possible so that marketing them becomes easy.
E) Firms should remember that promotion is the most important of the four Ps.
Answer: B
Diff: 1
LO: 2.1: How does marketing affect customer value?
AACSB: Reflective thinking
3) The value delivery process can be divided into three phases, out of which “choosing the value”
implies ________, which is the essence of strategic marketing.
A) segmentation, developing, and delivering
B) targeting, positioning, and communicating
C) targeting, positioning, and delivering
D) segmentation, targeting, and positioning
E) researching, developing, and delivering
Answer: D
Diff: 1
LO: 2.1: How does marketing affect customer value?
AACSB: Reflective thinking
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4) Apex Corporation is one of the best in its industry in terms of costs and performance. Many
companies in its industry will probably consider Apex as a ________.
A) pioneer
B) benchmark
C) target for acquisition
D) future supplier
E) sounding board for ideas
Answer: B
Diff: 1
LO: 2.1: How does marketing affect customer value?
AACSB: Application of knowledge
5) James Frank has been put in charge of gathering marketing intelligence, disseminating it
within his organization, and eventually directing action on the information. Mr. Frank’s task is
best described as part of the ________ process.
A) market-sensing
B) new-offering realization
C) customer acquisition
D) customer relationship management
E) fulfillment management
Answer: A
Diff: 3
LO: 2.1: How does marketing affect customer value?
AACSB: Analytical thinking; Application of knowledge
6) When a customer places an order at BookBox.com, the company processes the customer’s
payment information, sends the order to the nearest warehouse, and ships the order via FedEx.
This is best described as the ________ process.
A) market-sensing
B) customer acquisition
C) customer relationship management
D) fulfillment management
E) new-offering realization
Answer: D
Diff: 2
LO: 2.1: How does marketing affect customer value?
AACSB: Analytical thinking; Application of knowledge
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7) Today, the “mass market” is actually splintering into numerous segments, each with its own
wants, perceptions, preferences, and buying criteria. This implies that ________.
A) the traditional marketing approach would be the best approach to follow
B) the producers must consider themselves as a part of the value-chain process
C) the producers should focus on niche markets
D) all market segments are equally profitable
E) target market strategies are no longer effective
Answer: B
Diff: 2
LO: 2.1: How does marketing affect customer value?
AACSB: Analytical thinking
8) The first phase of the value creation and delivery sequence is ________ the value that
represents the “homework” marketing must do before any product exists.
A) choosing
B) providing
C) communicating
D) considering
E) acquiring
Answer: A
Diff: 1
LO: 2.1: How does marketing affect customer value?
AACSB: Reflective thinking
9) What is the second phase of the value creation and delivery sequence?
A) choosing the value
B) providing the value
C) communicating the value
D) calculating the value
E) calibrating the value
Answer: B
Diff: 2
LO: 2.1: How does marketing affect customer value?
AACSB: Reflective thinking
10) The last step in the value creation and delivery sequence is ________ the value where the
sales force, sales promotion, advertising, and other communication tools announce and promote
the product.
A) developing
B) positioning
C) communicating
D) reversing
E) researching
Answer: C
Diff: 1
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LO: 2.1: How does marketing affect customer value?
11) Angelo made the decision to outsource the software components of his consulting company
so he could focus on the company’s ________, which are sources of competitive advantage,
make a contribution to perceived customer benefits, have application in a wide variety of
markets, and are difficult to imitate.
A) core competencies
B) infrastructure
C) market-sensing processes
D) fulfillment management processes
E) outbound logistics
Answer: A
Diff: 1
LO: 2.1: How does marketing affect customer value?
AACSB: Application of knowledge
12) The ________ in the value chain cover the sequence of bringing materials into the business
(inbound logistics), converting them into final products (operations), shipping out final products
(outbound logistics), marketing them (marketing and sales), and servicing them (service).
A) operations processes
B) manufacturing processes
C) primary activities
D) secondary activities
E) tertiary activities
Answer: C
Diff: 1
LO: 2.1: How does marketing affect customer value?
AACSB: Reflective thinking
13) Michael Porter’s value chain would identify which of the following as a support activity?
A) shipping out final products
B) marketing products
C) procurement
D) servicing products
E) operations
Answer: C
Diff: 1
LO: 2.1: How does marketing affect customer value?
AACSB: Analytical thinking
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14) Which of the following can be considered a primary activity in the value chain process?
A) procurement
B) human resource management
C) technology development
D) inbound logistics
E) firm infrastructure
Answer: D
Diff: 2
LO: 2.1: How does marketing affect customer value?
AACSB: Analytical thinking
15) The fulfillment management process includes all the activities in ________.
A) gathering and acting upon information about the market
B) researching, developing, and launching new high-quality offerings quickly and within budget
standards
C) defining target markets and prospecting for new customers
D) building deeper understanding, relationships, and offerings to individual customers
E) receiving and approving orders, shipping the goods on time, and collecting payment
Answer: E
Diff: 2
LO: 2.1: How does marketing affect customer value?
AACSB: Reflective thinking
16) With respect to core business processes, the ________ process includes all the activities
involved in gathering external information, disseminating it within the organization, and acting
on the information.
A) market-sensing
B) market research
C) target marketing
D) market pulse
E) deployment
Answer: A
Diff: 1
LO: 2.1: How does marketing affect customer value?
AACSB: Analytical thinking
17) With respect to core business processes, the ________ process includes all the activities
involved in developing and launching high-quality products quickly and within budget.
A) market-sensing
B) new-offering realization
C) fulfillment management
D) customer acquisition
E) customer relationship management
Answer: B
Diff: 1
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LO: 2.1: How does marketing affect customer value?
AACSB: Analytical thinking
18) Activities involved in building deeper understanding of existing consumers and what the
product offerings mean to them would be a part of the ________ process.
A) customer acquisition
B) customer relationship management
C) customer prospecting
D) customer integrating management
E) customer equity
Answer: B
Diff: 2
LO: 2.1: How does marketing affect customer value?
AACSB: Reflective thinking
19) ________ management allows the company to discover who its target markets are, how they
behave, and what they need or want. It also enables the company to respond appropriately,
coherently, and quickly to different customer opportunities.
A) Network
B) Supply chain
C) Marketing
D) Customer relationship
E) Total quality
Answer: D
Diff: 1
LO: 2.1: How does marketing affect customer value?
20) Another way to describe a supply chain, where companies partner with specific suppliers and
distributors to ensure a smooth functioning of the system, is to call it a ________.
A) teamwork group
B) horizontal integration
C) domestic power center
D) value exploration
E) value delivery network
Answer: E
Diff: 1
LO: 2.1: How does marketing affect customer value?
AACSB: Interpersonal relations and teamwork
21) The key to utilizing organizational core competencies is to ________ that make up the
essence of the business.
A) force organizational departments to justify the budgetary components
B) vertically integrate and own all intermediaries
C) own and nurture the resources and competencies
D) emphasize global promotions
E) segment the workforces
Answer: C
Diff: 2
LO: 2.1: How does marketing affect customer value?
AACSB: Reflective thinking
22) A ________ has three characteristics: (1) a source of competitive advantage making a
significant contribution to perceived customer benefits; (2) has applications in a wide variety of
markets; and (3) is difficult to imitate.
A) core competency
B) market sensing process
C) corporate social responsibility effort
