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Marketing Management 15th Edition Kotler Test Bank

Marketing Management chapter 1 practice test
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.
Page: 4
B
________ is the art and science of choosing target markets and getting, keeping, and growingcustomers through creating, delivering, and communicating superior customer value.
A) Marketing management
B) Knowledge management
C) Operations management
D) Strategic management
E) Distribution management
Page: 5
A
Identify the correct statement about marketing management.
A) It is primarily concerned with the systematic gathering, recording, and analysis of data aboutissues 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 ofcorporate hierarchy.
E) It occurs when at least one party to a potential exchange thinks about the means of achievingdesired responses from other parties.
Page: 5
E
A social definition of marketing says ________.
A) effective marketing requires companies to remove intermediaries to achieve a closer connectionwith direct consumers
B) a company should focus exclusively on achieving high production efficiency, low costs, and massdistribution 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 wantthrough 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 facilitatecorporate growth
E) marketing is the process of aggressive selling and promotion to encourage the purchase ofproducts that might otherwise be unsought by the consumer
Page: 5
C
________ goods constitute the bulk of most countries’ production and marketing efforts.
A) Durable
B) Impulse
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C) Physical
D) Luxury
E) Intangible
Page: 5
C
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
Page: 5
E
Car rental firms, hair dressers, and management consultants provide ________.
A) goods
B) experiences
C) events
D) services
E) information
Page: 5
D
The Soccer World Cup is promoted aggressively to both companies and fans. This is an example ofmarketing a(n) ________.
A) idea
B) place
C) luxury item
D) event
E) service
Page: 5
D
The “Malaysia, Truly Asia” ad campaign that showcased Malaysia’s beautiful landscape and itsmulticultural society in order to attract tourists is an example of ________ marketing.
A) event
B) property
C) service
D) place
E) idea
Page: 6
D
In Walt Disney’s Magic Kingdom, customers can visit a fairy kingdom, a pirate ship, or even ahaunted house. Disney is marketing a(n) ________.
A) experience
B) service
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C) event
D) organization
E) good
Page: 6
A
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
Page: 8
E
Sales of woollen clothing usually increase during the winter season and decline thereafter. This is anexample of ________ demand.
A) irregular
B) declining
C) impulse
D) latent
E) negative
Page: 8
A
Julia is worried about the rising pollution levels in her city. She doesn’t mind paying extra forgoods 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
Page: 8
D
People in emerging countries today are becoming increasingly health conscious and are seekinghealthy food choices. As a result, demand for health foods is rising steadily, creating an opportunityfor marketers to exploit this ________ market.
A) demographic
B) business
C) need
D) geographic
E) service
Page: 8
C
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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
Page: 8
B
When demand is ________, it implies that more customers would like to buy the product than canbe satisfied.
A) latent
B) irregular
C) overfull
D) full
E) negative
Page: 8
C
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
Page: 8
D
Organizations catering to the ________ need to price their offerings carefully because thesemarkets usually have limited purchasing power.
A) business market
B) global market
C) nonprofit market
D) consumer market
E) exclusive market
Page: 9
C
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.
Page: 9
E
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A ________ is a cluster of complementary products and services that are closely related in theminds 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
Page: 9
A
Consider the real estate industry. The ________ for this industry includes construction companies,financing institutions, paint manufacturers, interior decorators, furniture manufacturers, andplumbing industries.
A) marketspace
B) latent market
C) need market
D) metamarket
E) geographic market
Page: 9
D
Automobile manufacturers, new car and used car dealers, financing companies, and insurancecompanies are all part of the automobile ________.
A) marketplace
B) marketspace
C) metamediary
D) marketportal
E) metamarket
Page: 9
E
________ are basic human requirements, while ________ are the ways in which those requirementsare satisfied.
A) Wants; needs
B) Demands; wants
C) Needs; wants
D) Needs; demands
E) Demands; needs
Page: 9-10
C
When Frank buys his own house, he would like to have a home theater system and a jacuzzi. Heplans to save enough money in the next three years so that he can fulfill his wish. Frank’s desire forthe home theater and the jacuzzi is an example of a(n) ________.
A) need
B) want
C) demand
D) unstated need
E) latent demand
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Page: 9-10
B
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
Page: 10
A
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
Page: 10
D
A(n) ________ need is a need that the consumer explicitly verbalizes.
A) stated
B) affirmative
C) unsought
D) delight
E) secret
Page: 10
A
The identification and profiling of distinct groups of buyers who might prefer or require varyingproduct and service mixes is known as ________.
A) segmentation
B) integration
C) disintermediation
D) cross-selling
E) customization
Page: 10
A
Companies address needs by putting forth a ________, a set of benefits that they offer to customersto satisfy their needs.
A) brand
B) value proposition
C) deal
D) marketing plan
E) demand
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Page: 10
B
During market segmentation analysis, the marketer identifies which segments present the greatestopportunity. These segments are called ________.
A) target markets
B) capital markets
C) tertiary markets
D) demographic markets
E) developing markets
Page: 10
A
________ reflects a customer’s judgment of a product’s performance in relation to his or herexpectations.
A) Brand equity
B) Satisfaction
C) Value
D) Perception
E) Brand image
Page: 10
B
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
Page: 10
D
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
Page: 10
E
If a marketer uses warehouses, transportation companies, banks, and insurance companies tofacilitate transactions with potential buyers, the marketer is using a ________.
A) service channel
B) distribution channel
C) communication channel
D) relationship channel
E) standardized channel
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Page: 11
A
The ________ is the channel stretching from raw materials to components to final products that arecarried to final buyers.
A) communication channel
B) distribution channel
C) supply chain
D) service chain
E) marketing chain
Page: 11
C
The actual and potential rival offerings and substitutes that a buyer might consider are referred toas the ________.
A) supply chain
B) global market
C) value proposition
D) competition
E) marketing environment
Page: 11
D
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
Page: 11
D
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
Page: 12
C
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
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Page: 12
E
Industry boundaries are blurring rapidly as companies identify new opportunities at theintersection of two or more industries. This is called ________.
A) globalization
B) customization
C) industry convergence
D) disintermediation
E) privatization
Page: 12
C
The success of online purchasing resulted in ________ in the delivery of products and services byintervening in the traditional flow of goods through distribution channels.
A) disintermediation
B) diversification
C) reduced competition
D) deregulation
E) privatization
Page: 13
A
In response to threats from such companies as AOL, Amazon.com, Yahoo!, eBay, E*TRADE, anddozens of others, established manufacturers and retailers became “brick-and-click” oriented byadding 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
Page: 13
A
When eBay and Amazon.com cut out the majority of middlemen that normally would participate inthe exchange process, it is an example of ________.
A) deregulation
B) reverse auctioning
C) reintermediation
D) disintermediation
E) diversification
Page: 13
D
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
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E) greater consumer buying power
Page: 13
E
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.
Page: 14-15
D
The ________ process consists of analyzing marketing opportunities, selecting target markets,designing marketing strategies, developing marketing programs, and managing the marketingeffort.
A) marketing planning
B) strategic planning
C) market research
D) opportunity analysis
E) operational management
Page: 15
A
Kotler and Casoline suggested eight factors that marketers must keep in mind in order to deal withrisk and uncertainty. Which of the following statements are they most likely to agree with when theenvironment 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.
Page: 16
B
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
Page: 17
C
Which of the following holds that consumers prefer products that are widely available andinexpensive?
A) the product concept
B) the production concept
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C) the selling concept
D) the performance concept
E) the marketing concept
Page: 18
B
Managers of ________ businesses concentrate on achieving high manufacturing efficiency, lowcosts, and mass distribution.
A) selling-oriented
B) product-oriented
C) production-oriented
D) marketing-oriented
E) consumer-oriented
Page: 18
C
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
Page: 18
A
Which of the following categories of goods and services is most likely to require an aggressive use ofthe selling concept?
A) shopping goods
B) unsought goods
C) necessary goods
D) luxury goods
E) complementary goods
Page: 18
B
As a major steel manufacturer, SteelMakers Inc. focuses on having the most efficientmanufacturing processes in place. The company believes that its competitive edge lies in its abilityto offer the best prices. They also maintain an excellent distribution network that ensures wideavailability of their products. SteelMakers has a ________.
A) selling orientation
B) production orientation
C) product orientation
D) marketing orientation
E) social orientation
Page: 18
B
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Webmax Inc. produced and marketed cameras. After considerable research and development, theydeveloped a new digital camera that had an array of new features. Webmax was so sure about thenew offering that they even reduced their marketing budget. What sort of orientation doesWebmax have toward the marketplace?
A) production orientation
B) product orientation
C) selling orientation
D) marketing orientation
E) holistic marketing orientation
Page: 18
B
Rick Johnson trains his company’s sales force to go after the consumer. He repeatedly asks his teamto bear in mind the essential fact that it is the sales team’s responsibility to rouse the consumer’sinterest and make him feel that he needs the product. A true salesman is one who can convert anindifferent 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
Page: 18
C
Marketers at Johnny Inc. believe in putting their customers ahead of everything else. Theirproducts are carefully designed to meet customer requirements and the entire focus is on achievingcustomer satisfaction. Johnny Inc., follows the ________ concept in doing business.
A) production
B) product
C) selling
D) marketing
E) social responsibility
Page: 18
D
The ________ concept holds that consumers and businesses, if left alone, will ordinarily not buyenough of the organization’s products.
A) production
B) selling
C) marketing
D) product
E) holistic marketing
Page: 18
B
Identify the concept that emerged in the mid-1950s as a customer-centered, sense-and-respondphilosophy.
A) the product concept
B) the production concept
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C) the selling concept
D) the marketing concept
E) the holistic marketing concept
Page: 18
D
The marketing concept holds that ________.
A) a firm should find the right products for its customers, and not the right customers for itsproducts
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
Page: 18
A
________ 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
Page: 18
B
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
Page: 19
D
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
Page: 19
C
________ marketing aims to build mutually satisfying long-term collaboration with keyconstituents, such as customers, employees, suppliers, distributors, and other marketing partners,in order to earn and retain their business.
A) Integrated
B) Demand-based
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C) Direct
D) Relationship
E) Internal
Page: 20
D
Tracy’s is a chain of hair dressing salons for women. They use the television, magazines, radio, andnewspapers to advertise their services. The owners ensure that all communication channels delivera common message to prospective customers. Tracy’s believes in ________.
A) internal marketing
B) integrated marketing
C) socially responsible marketing
D) global marketing
E) relationship marketing
Page: 20
B
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
Page: 20
C
Which of the following is most consistent with the integrated marketing approach?
A) A good product will sell itself.
B) If left alone, consumers are inclined to purchase only inexpensive products.
C) All communication to consumers must deliver a consistent message irrespective of the medium.
D) In order to succeed, the main focus should be on having an efficient production process in place.
E) Online marketing is less important than traditional marketing efforts.
Page: 20-21
C
Which aspect of holistic marketing motivates employees and ensures that everyone in theorganization embraces appropriate marketing principles, especially senior management?
A) relationship marketing
B) integrated marketing
C) internal marketing
D) network marketing
E) performance marketing
Page: 21
C
Financial accountability and social responsibility marketing are elements of ________.
A) performance marketing
B) relationship marketing
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C) internal marketing
D) social marketing
E) mass marketing
Page: 22
A
Companies are recognizing that much of their market value comes from ________, particularlytheir brands, customer base, employees, distributor and supplier relations, and intellectual capital.
A) variable assets
B) value propositions
C) intangible assets
D) market offerings
E) industry convergence
Page: 22
C
Holistic marketing incorporates ________, an understanding of broader concerns in the ethical,environmental, legal, and social context of marketing activities.
A) internal marketing
B) cultural marketing
C) social responsibility marketing
D) relationship marketing
E) integrated marketing
Page: 22
C
The ________ holds that the organization’s task is to determine the needs, wants, and interests oftarget markets and to deliver the desired satisfactions more effectively and efficiently thancompetitors in a way that preserves or enhances the consumer’s and the society’s well-being.
A) selling concept
B) integrated marketing concept
C) social responsibility marketing concept
D) production concept
E) relationship marketing concept
Page: 22
C
Joanna owns a chain of fast-food joints. As the chain became more and more successful, shedecided to contribute a share of her profits each year to support cancer research. This is anexample of ________.
A) corporate community involvement
B) environmental marketing
C) cause-related marketing
D) benefit marketing
E) responsible marketing
Page: 24
C
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McCarthy classified marketing activities into the four Ps of the marketing mix. These four Ps standfor ________.
A) product, positioning, place, and price
B) product, production, price, and place
C) promotion, place, positioning, and price
D) place, promotion, production, and positioning
E) product, price, promotion, and place
Page: 25
E
Incorporating the holistic view of marketing, the four Ps of the marketing mix can be updated to________.
A) product, positioning, people, and price
B) people, processes, place, and promotion
C) product, processes, price, and people
D) people, processes, programs, and performance
E) product, price, promotion, and people
Page: 25
D
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
Page: 25
E
Which of the four new Ps encompasses the old four Ps as well as a range of other marketingactivities that might not fit well into the old view of marketing?
A) programs
B) processes
C) promotion
D) people
E) performance
Page: 25
A
At the heart of any marketing program is the firm’s ________, its tangible offering to the market.
A) strategy
B) product
C) brand
D) value
E) people
Page: 27
B
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________ activities include those the company undertakes to make the product accessible andavailable to target customers.
A) Line extension
B) Segmentation
C) Marketing research
D) Channel
E) New-product development
Page: 27
D
A marketer’s only concern is how best to create demand for a new product produced by hiscompany. Improving product design is not his responsibility.
Page: 4
false
A short definition of marketing is “meeting needs profitably.”
Page: 5
true
Services constitute the bulk of most countries’ production and marketing efforts.
Page: 5
false
The U.S. economy today consists of a 70-30 services-to-goods mix.
Page: 5
true
Place marketers include economic development specialists, real estate agents, commercial banks,local business associations, and advertising and public relations agencies.
Page: 6
true
Properties are tangible rights of ownership to either real property (real estate) or financial property(stocks and bonds).
Page: 6
false
“Friends Don’t Let Friends Drive Drunk,” is an example of marketing information to an interestedaudience.
Page: 7
false
Unwholesome demand occurs when consumers’ purchases vary on a seasonal, monthly, weekly,daily, or even hourly basis.
Page: 8
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false
When consumers share a strong need that cannot be satisfied by an existing product, they areexhibiting latent demand.
Page: 8
true
Advertising is the most important element in business marketing.
Page: 9
false
Companies selling their goods to nonprofit organizations often charge a premium over their normalprices because these organizations are largely indifferent to price.
Page: 9
false
Shops and stores have a physical existence and as such are examples of marketspace.
Page: 9
false
Wants are basic human requirements, such as food and shelter.
Page: 9-10
false
Demands are wants for specific products backed by an ability to pay.
Page: 10
true
Contrary to popular belief, marketers do not create needs.
Page: 10
true
The customer value triad consists of a combination of quality, durability, and price.
Page: 10
false
A distribution channel includes distributors, wholesalers, retailers, and agents that display, sell, ordeliver the physical product or service(s) to the buyer or user.
Page: 11
true
The task environment of a firm consists of demographic, economic, natural, and technologicalenvironments, as well as the political-legal system and the social-cultural arena.
Page: 11
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false
Regulation of industries has created greater competition and growth opportunities because theplaying field has been leveled.
Page: 12
false
Industry boundaries are blurring at an incredible rate as companies are recognizing that newopportunities lie at the intersection of two or more industries.
Page: 12
true
The overabundance of information available on the Internet has made it more difficult forconsumers to compare product features and prices.
Page: 13
false
Companies can facilitate and speed external communication among customers by creating onlineand off-line “buzz” through brand advocates and user communities.
Page: 14
true
The proliferation of targeted media and communication channels has allowed marketers to becomemuch more aware of their target consumers’ preferences and to customize both products andmessages for individual consumers.
Page: 15
true
The production concept is one of the newest concepts in business.
Page: 18
false
The selling concept holds that consumers will favor those products that offer the most quality,performance, or innovative features.
Page: 18
false
The selling concept holds that consumers will prefer products that are ethical, environmentallyresponsible, legal, and social in the context of marketing activities and programs.
Page: 18
false
The marketing concept stresses on finding the right customers for the company’s products.
Page: 18
false
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The selling concept is based on the development, design, and implementation of marketingprograms, processes, and activities that recognize their breadth and interdependencies.
Page: 18
false
Relationship marketing aims to build mutually satisfying long-term relationships with key parties.
Page: 20
true
Attracting a new customer costs far more than retaining an existing one.
Page: 20
true
One of the key themes of integrated marketing is that there are very few marketing activities thatcan effectively communicate and deliver value.
Page: 20
false
Proponents of holistic marketing consider internal marketing to be as important as marketing toconsumers.
Page: 21
true
Integrated marketing is the task of hiring, training, and motivating able employees who want toserve customers well.
Page: 21
false
Performance marketing requires understanding the financial and non-financial returns to businessand society from marketing activities and programs.
Page: 22
true
Performance marketing involves reviewing metrics assessing market share, customer loss rate,customer satisfaction, and product quality in the evaluation of the effectiveness of marketingactivities.
Page: 22
true
The social responsibility marketing concept holds that the organization’s task is to determine theneeds, wants, and interests of target markets and to deliver the desired satisfactions moreeffectively and efficiently than competitors in a way that preserves or enhances the consumer’s andthe society’s well-being.
Page: 22
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true
Adapting and conducting business practices that protect the environment and human and animalrights is specifically a part of corporate social marketing.
Page: 24
false
Cause-related marketing involves donating a percentage of revenues to a specific cause based on therevenue occurring during the announced period of support.
Page: 24
true
Making gifts of money, goods, or time to help nonprofit organizations, groups, or individuals isknown as corporate philanthropy.
Page: 24
true
The marketing-mix component called “people” reflects all the creativity, discipline, and structurebrought to marketing management.
Page: 25
false
A firm’s tangible offering to the market includes product quality, design, features, and packaging.
Page: 27
true
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Marketing Management chapter 2 practice test
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
Page: 33
C
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.
Page: 33
B
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
Page: 34
D
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
Page: 34
B
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
6.7.8.9.10.E) fulfillment management process Page: 34AWhen a customer places an order at BookBox.com, the company processes the customer’s paymentinformation, sends the order to the nearest warehouse, and ships the order via FedEx. This is bestdescribed as the ________. A) market-sensing process B) customer acquisition process C) customer relationship management process D) fulfillment management process E) new-offering realization process Page: 34DToday, 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 Page: 34BThe 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 Page: 34AThe last step in the value creation and delivery sequence is ________ the value where the salesforce, sales promotion, advertising, and other communication tools announce and promote theproduct. A) developing B) positioning C) communicating D) reversing E) researching Page: 34CIn the cycle of complete strategic planning, taking corrective action is a part of ________. A) planning B) implementation
11.
12.
13.
14.
15.
C) controlling
D) organizing
E) analyzing
Page: 37
C
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
Page: 34
C
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
Page: 34
C
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
Page: 34
D
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
Page: 34
E
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
16.17.18.19.B) market research process C) target marketing process D) market pulse process E) deployment process Page: 34AWith respect to the core business processes, the ________ includes all the activities involved indeveloping, 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 Page: 34BActivities involved in building deeper understanding of existing consumers and what the productofferings 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 Page: 34B________ allows the company to discover who its target markets are, how they behave, and whatthey need or want. It also enables the company to respond appropriately, coherently, and quickly todifferent customer opportunities. A) Network management B) Supply chain management C) Marketing management D) Customer relationship management E) Total quality management Page: 34DAnother way to describe a supply chain, where companies partner with specific suppliers anddistributors 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 Page: 34-35E
20.21.22.23.24.The key to utilizing organizational core competencies is to ________ that make up the essence of thebusiness. 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 Page: 35C________ has three characteristics: (1) it is a source of competitive advantage in that it makes asignificant contribution to perceived customer benefits; (2) it has applications in a wide variety ofmarkets; 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 Page: 35ACore 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 Page: 35BHolistic marketers achieve profitable growth by expanding customer share, ________, andcapturing customer lifetime value. A) undermining competitive competencies B) building customer loyalty C) creating customer needs D) renewing a customer base E) cannibalizing products Page: 36BThe holistic marketing framework is designed to address three key management questions. Whichof 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? Page: 36
25.26.27.28.29.EAs Kodak addresses the digital revolution taking over the photographic industry, it wantscustomers to see it as a leader in digital photography. Thus, it is moving away from the productionof 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 Page: 36COf the four organizational levels, the corporate level is likely to take which of the followingdecisions? 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 Page: 36AMost large companies consist of four organizational levels: the corporate level, the ________, thebusiness 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 Page: 36DDuring Jill’s market research study, many customers indicated that traditional oven mitts made itvery difficult to hold baking dishes, resulting in frequent spills. Jill brought her findings to theresearch department, and her company leveraged its engineering and design competencies todevelop a new hand-held hot-pad that allows for significantly greater dexterity in handling hotcooking 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 Page: 36BThe marketing plan, the central instrument for directing and coordinating the marketing effort,operates at ________ levels. A) functional and operational
30.31.32.33.B) strategic and tactical C) corporate and operational D) customer and expenditure E) corporate and division Page: 36-37BThe ________ lays out the target markets and the value proposition that will be offered, based onan analysis of the best market opportunities. A) organizational plan B) strategic marketing plan C) corporate tactical plan D) corporate mission E) customer-value statement Page: 36-37BWhich of the following plans would most likely include directions for implementing and addressingdaily challenges and opportunities in product features, promotion, merchandising, pricing, saleschannels, 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 Page: 37AWhich of the following is NOT one of the four planning activities undertaken by all corporateheadquarters? A) defining the corporate mission B) establishing strategic business units C) assigning resources to each SBU D) assessing growth opportunities E) deciding sales channels Page: 37EJuan Garcia plans the daily promotional releases about his company’s products and services. Hecan be described as a(n) ________ planner. A) strategic B) selective C) tactical D) niche E) operational Page: 37C
34.35.36.37.38.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 Page: 38CMission statements are at their best when they reflect a ________. A) market B) strength C) competency D) vision E) value Page: 38DWhich 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. Page: 38CThe ________ 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 Page: 39BGerber primarily serves the baby food market. In choosing to focus on this market, Gerber isdefining its competitive sphere on the basis of ________. A) vertical segmentation B) backward integration C) market segmentation D) diversification E) differentiation Page: 39C
39.
40.
41.
42.
43.
44.
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
Page: 39
B
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
Page: 39
C
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
Page: 39
A
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.
Page: 40
D
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
Page: 41
A
A strategic-planning gap can be corrected by ________.
A) changing the company’s mission
45.46.47.48.49.B) adjusting its core values C) choosing integrative growth strategies D) redefining organizational culture E) increasing resource use Page: 42-43CMarket-penetration, product-development, and market-development strategies would all beexamples of ________ strategies. A) concentric growth B) conglomerate C) horizontal D) intensive growth E) integrative growth Page: 43DWhich 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 Page: 43BA company that seeks to increase its sales and profits through backward, forward, or horizontalintegration 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 Page: 43DWhich 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 Page: 43DIf you were the CEO of a company that was looking to implement strategies to fill a perceivedstrategic-planning gap, you would most likely explore ________ strategy first because it is easier toimprove