Marketing Management, 14e (Kotler/Keller)
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
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.
3) 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
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
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 ________.
A) market-sensing process
B) new-offering realization process
C) customer acquisition process
D) customer relationship management process
E) fulfillment management process
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 ________.
A) market-sensing process
B) customer acquisition process
C) customer relationship management process
D) fulfillment management process
E) new-offering realization process
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
8) The first phase of the value creation and delivery sequence is ________ that represents the
“homework” marketing must do before any product exists.
A) choosing the value
B) providing the value
C) communicating the value
D) considering the value
E) acquiring the value
9) 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
10) In the cycle of complete strategic planning, taking corrective action is a part of ________.
A) planning
B) implementation
C) controlling
D) organizing
E) analyzing
11) 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
12) 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
13) 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
14) 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
15) With respect to core business processes, the ________ includes all the activities involved in
gathering external information, disseminating it within the organization, and acting on the
information.
A) market-sensing process
B) market research process
C) target marketing process
D) market pulse process
E) deployment process
16) With respect to the core business processes, the ________ includes all the activities involved
in developing, and launching high-quality products quickly and within budget.
A) market-sensing process
B) new-offering realization process
C) fulfillment management process
D) customer acquisition process
E) customer relationship management process
17) Activities involved in building deeper understanding of existing consumers and what the
product offerings mean to them would be a part of ________.
A) customer acquisition process
B) customer relationship management process
C) customer prospecting process
D) customer integrating management process
E) customer equity process
18) ________ 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 management
B) Supply chain management
C) Marketing management
D) Customer relationship management
E) Total quality management
19) 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
20) 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
21) ________ has three characteristics: (1) it is a source of competitive advantage in that it
makes a significant contribution to perceived customer benefits; (2) it has applications in a wide
variety of markets; and (3) it is difficult for competitors to imitate.
A) Core competency
B) Market sensing process
C) Corporate social responsibility
D) Strategic business unit
E) Philanthropy
22) Core competencies tend to refer to areas of special technical and production expertise,
whereas ________ tend to describe excellence in broader business processes.
A) process benchmarks
B) distinctive capabilities
C) distributive capabilities
D) facultative benchmarks
E) concentric capabilities
23) Holistic marketers achieve profitable growth by expanding customer share, ________, and
capturing customer lifetime value.
A) undermining competitive competencies
B) building customer loyalty
C) creating customer needs
D) renewing a customer base
E) cannibalizing products
24) The holistic marketing framework is designed to address three key management questions.
Which of the following is one of those questions?
A) Value claims—how does the company deal with value clutter?
B) Value proposition—how can value propositions be made profitable?
C) Value erosion—are there weak links in the company’s value chain?
D) Value network—how can a company effectively network?
E) Value exploration—how can a company identify new value opportunities?
25) As Kodak addresses the digital revolution taking over the photographic industry, it wants
customers to see it as a leader in digital photography. Thus, it is moving away from the
production of film roll cameras. This would be an example of which of the following value
creation steps?
A) abandoning current product lines
B) changing the corporate vision
C) repositioning the company’s brand identity
D) redoing the corporate logo
E) realigning core competencies
26) Of the four organizational levels, the corporate level is likely to take which of the following
decisions?
A) entering a new market
B) resource allocation for each product
C) strategic plan for individual business units
D) choosing specific suppliers for each business unit
E) marketing plan for each product
27) Most large companies consist of four organizational levels: the corporate level, the
________, the business unit level, and the product level.
A) board of director level
B) major stakeholder level
C) management team level
D) division level
E) strategic level
28) During Jill’s market research study, many customers indicated that traditional oven mitts
made it very difficult to hold baking dishes, resulting in frequent spills. Jill brought her findings
to the research department, and her company leveraged its engineering and design competencies
to develop a new hand-held hot-pad that allows for significantly greater dexterity in handling hot
cooking implements, while protecting the cook from burns. This is an example of the ________
element of the holistic marketing framework.
A) integrated marketing
B) value creation
C) negative demand
D) value networking
E) value focus
29) The marketing plan, the central instrument for directing and coordinating the marketing
effort, operates at ________ levels.
A) functional and operational
B) strategic and tactical
C) corporate and operational
D) customer and expenditure
E) corporate and division
30) The ________ lays out the target markets and the value proposition that will be offered,
based on an analysis of the best market opportunities.
A) organizational plan
B) strategic marketing plan
C) corporate tactical plan
D) corporate mission
E) customer-value statement
31) Which of the following plans would most likely include directions for implementing and
addressing daily challenges and opportunities in product features, promotion, merchandising,
pricing, sales channels, and service areas?
A) the tactical marketing plan
B) the target marketing plan
C) the deployment plan
D) the product-launch plan
E) the product-development plan
32) Which of the following is NOT one of the four planning activities undertaken by all
corporate headquarters?
A) defining the corporate mission
B) establishing strategic business units
C) assigning resources to each SBU
D) assessing growth opportunities
E) deciding sales channels
33) Juan Garcia plans the daily promotional releases about his company’s products and services.
He can be described as a(n) ________ planner.
A) strategic
B) selective
C) tactical
D) niche
E) operational
34) A clear, thoughtful mission statement provides employees with a shared sense of purpose,
direction, and ________.
A) profitability
B) target market feasibility
C) opportunity
D) continuous improvement
E) quality products
35) Mission statements are at their best when they reflect a ________.
A) market
B) strength
C) competency
D) vision
E) value
36) Which of the following is one of the five major characteristics of good mission statements?
A) They focus on a large number of goals.
B) They expand the range of individual employee discretion.
C) They define the major competitive spheres within which the company will operate.
D) They take a short-term view.
E) They are long and comprehensive to ensure that all critical concepts are included.
37) The ________ is the number of channel levels, from raw materials to final product and
distribution, in which a company will participate.
A) industry sphere
B) vertical sphere
C) product/application sphere
D) competence sphere
E) market segment sphere
38) Gerber primarily serves the baby food market. In choosing to focus on this market, Gerber is
defining its competitive sphere on the basis of ________.
A) vertical segmentation
B) backward integration
C) market segmentation
D) diversification
E) differentiation
39) While viewing businesses in terms of customer needs can suggest additional growth
opportunities, a ________ tends to focus on selling a product or service to a current market.
A) strategic market definition
B) target market definition
C) cognitive definition
D) product definition
E) tactical definition
40) What are hollow corporations?
A) companies that market their products through franchisees
B) companies that have liabilities exceeding their assets
C) companies that outsource all production to suppliers
D) companies that do not have any physical presence and only operate online
E) companies that are horizontally integrated
41) A ________ of a business focuses on selling a product or service to an existing market.
A) target market definition
B) strategic market definition
C) mass-market definition
D) differentiated market definition
E) integrated market definition
42) Which of the following is best described as a market-oriented business definition?
A) Missouri-Pacific Railroad: We run a railroad.
B) Xerox: We make copying equipment.
C) Standard Oil: We sell gasoline.
D) Encyclopedia Britannica: We distribute information.
E) Columbia Pictures: We make movies.
43) A characteristic of a ________ is that it can be a single business or collection of related
businesses that can be planned separately from the rest of the company.
A) strategic business unit
B) subsidiary unit
C) merged unit
D) niche market unit
E) specialized business unit
44) A strategic-planning gap can be corrected by ________.
A) changing the company’s mission
B) adjusting its core values
C) choosing integrative growth strategies
D) redefining organizational culture
E) increasing resource use
45) Market-penetration, product-development, and market-development strategies would all be
examples of ________ strategies.
A) concentric growth
B) conglomerate
C) horizontal
D) intensive growth
E) integrative growth
46) Which of the following is an example of growth by diversification?
A) a company introducing its existing products in a new market
B) a company introducing new product category in a new market
C) a company increases its product line in an existing market
D) a company introducing a new product category in an existing market
E) a company integrates backward to cut costs
47) A company that seeks to increase its sales and profits through backward, forward, or
horizontal integration within the industry is said to be employing a(n) ________ strategy.
A) diversification growth
B) intensive growth
C) target growth
D) integrative growth
E) conglomerate growth
48) Which of the following is an example of intensive growth?
A) a company improves its market share with its current products in the current markets
B) a company enters a new market with current products
C) a company develops new products for its existing markets
D) a company improving sales by integrating backward
E) a company developing new products for new markets
49) If you were the CEO of a company that was looking to implement strategies to fill a
perceived strategic-planning gap, you would most likely explore ________ strategy first because
it is easier to improve an existing business than to build a new one.
A) market-penetration
B) market-development
C) diversification
D) product-development
E) exclusive
50) Once Starbucks had established its presence in thousands of cities internationally, the
company sought to increase the number of purchases by existing customers with a ________
strategy that led to new in-store merchandise, including compilation CDs and high-speed
wireless access.
A) product-development
B) market-penetration
C) diversification
D) market-development
E) conglomerate
51) Qantas, the Australian national carrier, introduces flights to the Middle East. This is an
example of ________.
A) product development
B) diversification
C) market development
D) market penetration
E) differentiation
52) A(n) ________ is when a company might seek new businesses that have no relationship to its
current technology, products, or markets.
A) concentric strategy
B) conglomerate strategy
C) horizontal strategy
D) intensive growth strategy
E) integrative strategy
53) Which of the following terms can be defined as “the shared experiences, stories, beliefs, and
norms that characterize an organization”?
A) organizational dynamics
B) a business mission
C) an ethical/value statement
D) customer relationships
E) corporate culture
54) When it was first launched, Google’s paid search platform represented a new strategy for
revenue generation on the Internet. This is an example of innovation along which of the
following dimensions?
A) process
B) supply chain
C) value capture
D) presence
E) brand
55) The first step in the business unit strategic-planning process deals with which of the
following?
A) formulate goals
B) define business mission
C) implement strategies
D) execute programs
E) conduct SWOT analysis