Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
A Framework for Marketing Management, 5e (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
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) 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
8) 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
9) In the cycle of complete strategic planning, taking corrective action is a part of ________.
A) planning
B) implementation
C) controlling
D) organizing
E) analyzing
10) 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
11) Micheal 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
12) The fullfilment 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
13) 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
14) 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
15) 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
16) 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
17) 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
18) ________ 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
19) 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
20) 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
21) 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
22) Of the four organizational levels, the corporate level is likely to make 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
23) 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
24) 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
25) 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
26) 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
27) 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
28) 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
29) 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
30) 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.
31) 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
32) 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
33) 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
34) 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
35) 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
36) 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
37) 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
