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A Framework for Marketing Management, 5e (Kotler)
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) ________ goods constitute the bulk of most countries' production and marketing efforts.
A) Durable
B) Impulse
C) Physical
D) Luxury
E) Intangible
3) Car rental firms, hair dressers, and management consultants provide ________.
A) goods
B) experiences
C) events
D) services
E) information
4) 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
5) 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
6) 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
7) ________ 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
8) 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
9) 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
10) 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
11) A(n) ________ need is a need that the consumer explicitly verbalizes.
A) stated
B) affirmative
C) unsought
D) delight
E) secret
12) 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
13) 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
14) ________ 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
15) 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
16) 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 into a new market
D) develop brand loyalty
E) position its product
17) 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
18) 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
19) 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
20) 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
21) 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
22) 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
23) 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
24) 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
25) 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
26) 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
27) 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
28) 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.
29) 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.
30) 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
31) 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
32) 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
33) 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
34) 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
35) 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
36) 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
