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marketing management TB, Exercises of Marketing Management

American University of Science and TechnologyMarketing Management

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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.
Answer: B
Diff: 1
LO: 1.1: Why is marketing important?
AACSB: Reflective thinking
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.
Answer: FALSE
Diff: 1
LO: 1.1: Why is marketing important?
AACSB: Reflective thinking
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
Answer: A
Diff: 1
LO: 1.2: What is the scope of marketing?
AACSB: Reflective thinking
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.
Answer: E
Diff: 2
LO: 1.2: What is the scope of marketing?
AACSB: Reflective thinking
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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. Answer: B Diff: 1 LO: 1.1: Why is marketing important? AACSB: Reflective thinking
  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. Answer: FALSE Diff: 1 LO: 1.1: Why is marketing important? AACSB: Reflective thinking
  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 Answer: A Diff: 1 LO: 1.2: What is the scope of marketing? AACSB: Reflective thinking
  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. Answer: E Diff: 2 LO: 1.2: What is the scope of marketing? AACSB: Reflective thinking
  1. 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 Answer: C Diff: 1 LO: 1.2: What is the scope of marketing? AACSB: Reflective thinking
  2. ________ goods constitute the bulk of most countries' production and marketing efforts. A) Durable B) Impulse C) Physical D) Luxury E) Intangible Answer: C Diff: 1 LO: 1.2: What is the scope of marketing? AACSB: Reflective thinking
  3. 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 Answer: E Diff: 2 LO: 1.2: What is the scope of marketing? AACSB: Reflective thinking

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 Answer: E Diff: 2 LO: 1.2: What is the scope of marketing? AACSB: Analytical thinking; Application of knowledge

  1. 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 Answer: A Diff: 2 LO: 1.2: What is the scope of marketing? AACSB: Analytical thinking; Application of knowledge
  2. 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 Answer: D Diff: 2 LO: 1.2: What is the scope of marketing? AACSB: Analytical thinking; Application of knowledge
  1. 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 Answer: C Diff: 3 LO: 1.2: What is the scope of marketing? AACSB: Analytical thinking
  2. 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 Answer: B Diff: 2 LO: 1.2: What is the scope of marketing? AACSB: Reflective thinking
  3. 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 Answer: C Diff: 1 LO: 1.2: What is the scope of marketing? AACSB: Reflective thinking

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 Answer: D Diff: 2 LO: 1.2: What is the scope of marketing? AACSB: Application of knowledge

  1. 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 Answer: E Diff: 2 LO: 1.2: What is the scope of marketing? AACSB: Application of knowledge
  2. A short definition of marketing is "meeting needs profitably." Answer: TRUE Diff: 1 LO: 1.2: What is the scope of marketing? AACSB: Analytical thinking
  3. Services constitute the bulk of most countries' production and marketing efforts. Answer: FALSE Diff: 2 LO: 1.2: What is the scope of marketing? AACSB: Analytical thinking
  4. Place marketers include economic development specialists, real estate agents, commercial banks, local business associations, and advertising and public relations agencies. Answer: TRUE Diff: 1 LO: 1.2: What is the scope of marketing?
  1. Properties are tangible rights of ownership to either real property (real estate) or financial property (stocks and bonds). Answer: FALSE Diff: 1 LO: 1.2: What is the scope of marketing?
  2. "Friends Don't Let Friends Drive Drunk," is an example of marketing information to an interested audience. Answer: FALSE Diff: 2 LO: 1.2: What is the scope of marketing? AACSB: Reflective thinking
  3. Unwholesome demand occurs when consumers' purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis. Answer: FALSE Diff: 2 LO: 1.2: What is the scope of marketing? AACSB: Analytical thinking
  4. When consumers share a strong need that cannot be satisfied by an existing product, they are exhibiting latent demand. Answer: TRUE Diff: 2 LO: 1.2: What is the scope of marketing?
  5. Advertising is the most important element in business marketing. Answer: FALSE Diff: 2 LO: 1.2: What is the scope of marketing? AACSB: Diverse and multicultural work environments
  6. Companies selling their goods to nonprofit organizations often charge a premium over their normal prices because these organizations are largely indifferent to price. Answer: FALSE Diff: 1 LO: 1.2: What is the scope of marketing? AACSB: Reflective thinking
  1. 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. Answer: The eight different demand states are:
  1. negative demand — consumers dislike the product and may even pay a price to avoid it
  2. nonexistent demand — consumers may be unaware or uninterested in the product
  3. latent demand — consumers may share a strong need that cannot be satisfied by an existing product
  4. declining demand — consumers begin to buy the product less frequently or not at all
  5. irregular demand — consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis
  6. full demand — consumers are adequately buying all products in the market
  7. overfull demand — more consumers would like to buy the product than can be satisfied
  8. unwholesome demand — consumers may be attracted to products that have undesirable social consequences. Diff: 3 LO: 1.2: What is the scope of marketing? AACSB: Analytical thinking
  1. Discuss the eight demand states with respect to bifocal lenses for glasses. Answer: Student answers will vary, but a possible answer includes the following:
  • negative demand — many people don't want to admit they need bifocals
  • nonexistent demand — when bifocal lenses were first introduced, people didn't know they existed
  • latent demand — before they were introduced, many people thought such a product would be nice, but didn't think it would ever exist
  • declining demand — this will occur when something better and more convenient is invented
  • irregular demand — the consumer perceives a need for eye care devices only periodically, possibly when they begin to have trouble with their vision
  • full demand — the manufacturers of the lenses are making all they possibly can
  • overfull demand — the manufacturers of the lenses can't make enough and inventories are low
  • unwholesome demand — seeking alternatives that can lead to undesirable consequences. Diff: 2 LO: 1.2: What is the scope of marketing? AACSB: Analytical thinking
  1. 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. Answer: Student responses will vary, but may include the American Express, BMW, Corning, or P&G examples from the text. Look for information about the marketing strategy (4 Ps, 4 As) in the response. Diff: 3 LO: 1.2: What is the scope of marketing? AACSB: Application of knowledge
  1. Selling is not the most important part of marketing. Explain why not. Answer: According to Peter Drucker, "There will always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available." Diff: 2 LO: 1.2: What is the scope of marketing? AACSB: Reflective thinking
  2. ________ 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 Answer: C Diff: 1 LO: 1.3: What are some core marketing concepts? AACSB: Reflective thinking
  3. 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 Answer: B Diff: 2 LO: 1.3: What are some core marketing concepts? AACSB: Analytical thinking; Application of knowledge
  4. 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 Answer: A Diff: 2 LO: 1.3: What are some core marketing concepts? AACSB: Reflective thinking
  5. A(n) ________ need is one that the consumer is reluctant or unwilling to explicitly verbalize.

B) capital C) tertiary D) demographic E) developing Answer: A Diff: 2 LO: 1.3: What are some core marketing concepts? AACSB: Reflective thinking

  1. __________ 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 Answer: B Diff: 1 LO: 1.3: What are some core marketing concepts?
  2. 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 Answer: D Diff: 2 LO: 1.3: What are some core marketing concepts? AACSB: Reflective thinking
  3. 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 Answer: E Diff: 2 LO: 1.3: What are some core marketing concepts? AACSB: Analytical thinking; Application of knowledge
  1. 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 Answer: A Diff: 3 LO: 1.3: What are some core marketing concepts? AACSB: Application of knowledge
  2. 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 Answer: C Diff: 1 LO: 1.3: What are some core marketing concepts? AACSB: Reflective thinking
  3. 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 Answer: D Diff: 1 LO: 1.3: What are some core marketing concepts? AACSB: Reflective thinking
  1. Demands are wants for specific products backed by an ability to pay. Answer: TRUE Diff: 1 LO: 1.3: What are some core marketing concepts? AACSB: Analytical thinking
  2. Contrary to popular belief, marketers do not create needs. Answer: TRUE Diff: 1 LO: 1.3: What are some core marketing concepts?
  3. The customer value triad consists of a combination of quality, durability, and price. Answer: FALSE Diff: 2 LO: 1.3: What are some core marketing concepts? AACSB: Analytical thinking
  4. A distribution channel includes distributors, wholesalers, retailers, and agents that display, sell, or deliver a physical product or service to a buyer or user. Answer: TRUE Diff: 1 LO: 1.3: What are some core marketing concepts? AACSB: Reflective thinking
  5. 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. Answer: FALSE Diff: 2 LO: 1.3: What are some core marketing concepts? AACSB: Analytical thinking
  6. The desire to eat a Philly cheesesteak, whether or not you are in the position to buy one, is an example of a demand. Answer: FALSE Diff: 3 LO: 1.3: What are some core marketing concepts? AACSB: Application of knowledge
  7. 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. Answer: TRUE Diff: 2 LO: 1.3: What are some core marketing concepts? AACSB: Application of knowledge
  1. 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. Answer: Suppose a customer wants to buy a car. The five types of customer needs with respect to this example are:
  1. stated needs — the customer wants an inexpensive car
  2. real needs — the customer wants a car whose operating cost, not its initial price, is low
  3. unstated needs — the customer expects good service from the dealer
  4. delight needs — the customer would like the dealer to include an onboard navigation system
  5. secret needs — the customer wants to be seen by friends as a savvy consumer. Diff: 3 LO: 1.3: What are some core marketing concepts? AACSB: Analytical thinking
  1. Distinguish between the concepts of value and satisfaction. Answer: The offering will be successful if it delivers value and satisfaction to the target buyer. The buyer chooses between different offerings on the basis of his or her perception about which product will deliver the most value. Value reflects the perceived tangible and intangible benefits and costs to customers. Value can be seen as primarily a combination of quality, service, and price (called the customer-value triad ). Satisfaction reflects a person's comparative judgments resulting from a product's perceived performance (or outcome) in relation to his or her expectations. Diff: 1 LO: 1.3: What are some core marketing concepts? AACSB: Reflective thinking
  2. 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? Answer: The three marketing channels are communication, distribution, and service channels. Ford uses advertising to position its products and convey a certain message to consumers (communication channel). The delivery of cars to end consumers would require a distribution channel, such as a car dealership, and the company can have tie-ups with insurance companies to provide car insurance (service channel). Diff: 3 LO: 1.3: What are some core marketing concepts? AACSB: Analytical thinking; Application of knowledge
  1. 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 Answer: D Diff: 3 LO: 1.4: What forces are defining the new marketing realities? AACSB: Reflective thinking
  2. 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 Answer: A Diff: 1 LO: 1.4: What forces are defining the new marketing realities? AACSB: Application of knowledge
  3. 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 Answer: B Diff: 2 LO: 1.4: What forces are defining the new marketing realities? AACSB: Analytical thinking; Application of knowledge
  1. 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 Answer: C Diff: 2 LO: 1.4: What forces are defining the new marketing realities? AACSB: Reflective thinking
  2. Which of the following is NOT one of the 4 As customers most value? A) acceptability B) affordability C) affability D) accessibility E) awareness Answer: C Diff: 1 LO: 1.4: What forces are defining the new marketing realities? AACSB: Analytical thinking
  3. 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 Answer: E Diff: 2 LO: 1.4: What forces are defining the new marketing realities? AACSB: Reflective thinking
  4. 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 Answer: A Diff: 2 LO: 1.4: What forces are defining the new marketing realities?