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Marketing Management, 15e (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.
2) A marketer's only concern is how best to create demand for a new product produced by his/her
company. Improving product design is not his/her responsibility.
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
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
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
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
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
E) consumer
24) A short definition of marketing is "meeting needs profitably."
25) Services constitute the bulk of most countries' production and marketing efforts.
26) Place marketers include economic development specialists, real estate agents, commercial
banks, local business associations, and advertising and public relations agencies.
27) Properties are tangible rights of ownership to either real property (real estate) or financial
property (stocks and bonds).
28) "Friends Don't Let Friends Drive Drunk," is an example of marketing information to an
interested audience.
29) Unwholesome demand occurs when consumers' purchases vary on a seasonal, monthly,
weekly, daily, or even hourly basis.
30) When consumers share a strong need that cannot be satisfied by an existing product, they are
exhibiting latent demand.
31) Advertising is the most important element in business marketing.
32) Companies selling their goods to nonprofit organizations often charge a premium over their
normal prices because these organizations are largely indifferent to price.
33) Marketing has been described as being both an "art" and a "science." Discuss the differences
and similarities between these two marketing thrusts. Provide your theoretical response and a
"real-life" example where you have seen both processes work effectively at creating customer
value and loyalty.
34) Marketers are involved in marketing 10 types of entities. List and briefly characterize these
entities.
35) Marketers should be skilled in stimulating demand for a company's products. Just as
production and logistics professionals are responsible for supply management, marketers are
responsible for demand management. Marketing managers seek to influence the level, timing,
and composition of demand to meet the organization's objectives. List and briefly describe the
eight different demand states.
36) Discuss the eight demand states with respect to bifocal lenses for glasses.
37) Provide an example of a company that is adapting and thriving in these changing times. Be
specific about how it has adapted its marketing strategy to adjust to the times.
38) Selling is not the most important part of marketing. Explain why not.
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
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
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.
56) Wants are basic human requirements, such as food and shelter.
57) Demands are wants for specific products backed by an ability to pay.
58) Contrary to popular belief, marketers do not create needs.
59) The customer value triad consists of a combination of quality, durability, and price.
60) A distribution channel includes distributors, wholesalers, retailers, and agents that display,
sell, or deliver a physical product or service to a buyer or user.
61) The task environment of a firm consists of demographic, economic, natural, and
technological environments, as well as the political-legal system and the social-cultural arena.
62) The desire to eat a Philly cheesesteak, whether or not you are in the position to buy one, is an
example of a demand.
63) In the statement, "Volvo develops its cars for buyers to whom safety is a major concern,
positioning the vehicles as the safest a customer can buy," buyers to whom safety is a major
concern is the target market.
64) Consumers often have many needs that are not readily obvious. Just observing their behavior
inside a retail store is not enough to get a true understanding of their "needs." List and briefly
describe the five types of needs that most consumers have.
65) Distinguish between the concepts of value and satisfaction.
66) Ford Motor Company knows that to reach its target markets three kinds of marketing
channels may be used. What are these three marketing channels and how might Ford use each of
them?
67) 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
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
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
