Marketing Management, 14e (Kotler/Keller)
Chapter 1 Defining Marketing for the 21st Century
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.
2) ________ 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 management
B) Knowledge management
C) Operations management
D) Strategic management
E) Distribution management
3) 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.
4) 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
5) ________ goods constitute the bulk of most countries’ production and marketing efforts.
A) Durable
B) Impulse
C) Physical
D) Luxury
E) Intangible
6) As economies advance, a growing proportion of their activities focuses on the production of
________.
A) products
B) events
C) experiences
D) luxury goods
E) services
7) Car rental firms, hair dressers, and management consultants provide ________.
A) goods
B) experiences
C) events
D) services
E) information
8) The Soccer 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
9) 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
10) 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
11) 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
E) overfull demand
12) Sales of woollen 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
13) 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
14) 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
15) When consumers share a strong need that cannot be satisfied by an existing product, it is
called ________.
A) negative demand
B) latent demand
C) declining demand
D) irregular demand
E) nonexistent demand
16) 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
17) In the case of ________, consumers dislike the product and may even pay a price to avoid it.
A) nonexistent demand
B) overfull demand
C) irregular demand
D) negative demand
E) declining demand
18) Organizations catering to the ________ need to price their offerings carefully because these
markets usually have limited purchasing power.
A) business market
B) global market
C) nonprofit market
D) consumer market
E) exclusive market
19) 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 buy goods to make or resell a product to others at a profit.
20) A ________ is a cluster of complementary products and services that are closely related in
the minds of consumers but are spread across a diverse set of industries.
A) metamarket
B) vertically integrated market
C) horizontally integrated market
D) marketspace
E) synchronized market
21) Consider the real estate industry. The ________ for this industry includes construction
companies, financing institutions, paint manufacturers, interior decorators, furniture
manufacturers, and plumbing industries.
A) marketspace
B) latent market
C) need market
D) metamarket
E) geographic market
22) Automobile manufacturers, new car and used car dealers, financing companies, and
insurance companies are all part of the automobile ________.
A) marketplace
B) marketspace
C) metamediary
D) marketportal
E) metamarket
23) ________ 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
24) 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
25) 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
26) 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
27) A(n) ________ need is a need that the consumer explicitly verbalizes.
A) stated
B) affirmative
C) unsought
D) delight
E) secret
28) 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
E) customization
29) 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
30) During market segmentation analysis, the marketer identifies which segments present the
greatest opportunity. These segments are called ________.
A) target markets
B) capital markets
C) tertiary markets
D) demographic markets
E) developing markets
31) ________ 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
32) The value of an offering is described as ________.
A) the price consumers are charged for a product
B) the cost of manufacturing a product
C) the degree to which consumer demand for a product is positive
D) the sum of the tangible and intangible benefits and costs to customers
E) the intangible benefits gained from a product
33) 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 new a new market
D) develop brand loyalty
E) position its product
34) If a marketer uses warehouses, transportation companies, banks, and insurance companies to
facilitate transactions with potential buyers, the marketer is using a ________.
A) service channel
B) distribution channel
C) communication channel
D) relationship channel
E) standardized channel
35) The ________ is the channel stretching 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
36) 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
37) The ________ 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 environment
B) management environment
C) strategic environment
D) task environment
E) tactical environment
38) In an attempt to create greater competition and growth opportunities, countries often
________.
A) increase trade barriers
B) protect industries
C) deregulate industries
D) encourage intermediation
E) reduce privatization
39) Rising promotion costs and shrinking profit margins are the result of ________.
A) new and improved technology
B) disintermediation
C) industry convergence
D) privatization
E) heightened competition
40) Industry boundaries are blurring rapidly as companies identify new opportunities at the
intersection of two or more industries. This is called ________.
A) globalization
B) customization
C) industry convergence
D) disintermediation
E) privatization
41) 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
42) In response to threats from such companies as AOL, Amazon.com, Yahoo!, eBay,
E*TRADE, and dozens of others, established manufacturers and retailers became “brick-and–
click” oriented by adding online services to their existing offerings. This process is known as
________.
A) reintermediation
B) disintermediation
C) retail transformation
D) e-collaboration
E) new-market synchronization
43) When eBay and Amazon.com 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
44) Disintermediation via the Internet has resulted in ________.
A) higher prices
B) stronger brand loyalty
C) greater emphasis on personal selling
D) well-established brand names
E) greater consumer buying power
45) 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.
46) The ________ process consists of analyzing marketing opportunities, selecting target
markets, designing marketing strategies, developing marketing programs, and managing the
marketing effort.
A) marketing planning
B) strategic planning
C) market research
D) opportunity analysis
E) operational management
47) Kotler and Casoline suggested eight factors that marketers must keep in mind in order to deal
with risk and uncertainty. Which of the following statements are they most likely to agree with
when the environment is uncertain?
A) Companies should be prepared to implement ad hoc strategies whenever required.
B) Companies should push aggressively for the market share of their competitors.
C) Companies should focus less on their core segments, and more on new target markets.
D) Companies should not increase marketing budgets in times of uncertainty.
E) Companies should focus and improve their marginal brands.
48) What are customer touch points?
A) all aspects of the offering that directly affect consumer preferences
B) all needs and wants of customers
C) all direct or indirect interactions between the customer and the company
D) all interactions between customers and competitors
E) all factors that affect buying behavior
49) 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
D) the performance concept
E) the marketing concept
50) 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
51) 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
52) 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
53) 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 ________.
A) selling orientation
B) production orientation
C) product orientation
D) marketing orientation
E) social orientation
54) 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
55) Rick Johnson trains his company’s sales force to go after the consumer. He repeatedly asks
his team to bear in mind the essential fact that it is the sales team’s responsibility to rouse the
consumer’s interest and make him feel that he 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
56) 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
57) 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
58) 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
59) 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
60) ________ is based on the development, design, and implementation of marketing programs,
processes, and activities that recognize their breadth and interdependencies.
A) Niche marketing
B) Holistic marketing
C) Relationship marketing
D) Supply chain marketing
E) Demand-centered marketing
61) Which of the following is considered as a “sin” in the marketing discipline?
A) focusing too much on new opportunities
B) targeting a competitor’s market share
C) prioritizing customer relationships over everything else
D) using technology in an inefficient manner
E) increasing the marketing budget in times of uncertainty and risk
62) 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