(Test Bank) Marketing Management

Kotler, 16

Business

Test Bank

16th Edition

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Test Bank for Marketing Management, The downloadable file consists of 834 pages, and the total size of the file is 4.19 MB. Purchase now only for highly discounted price.

Author(s): Kotler

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1 Copyright © 2022 Pearson Education, Inc. Marketing Management, 16e (Kotler) Chapter 1 Defining Marketing for the New Realities 1) Which of these is an accurate characterization of the contemporary view of marketing? A) Marketing is synonymous with selling. B) With the rise of social commerce, company-driven marketing is no longer important. C) Marketing's emphasis within the firm continues to decline. D) To improve efficiency, most firms now restrict marketing activities within the "official" boundaries of the marketing department. E) Marketing is about identifying and meeting human and social needs in a way that harmonizes with the goals of the organization. Answer: E Diff: 3 LO: 1.1: Define the scope of marketing. AACSB: Reflective thinking 2) With regard to the selling function, what did Peter Drucker have to say about the aim of marketing? A) Selling should replace marketing. B) Selling should have equal importance in the corporate hierarchy. C) It should make selling superfluous. D) The sales function should set strategy, while the marketing function owns tactics. E) Selling and marketing are synonymous. Answer: C Diff: 2 LO: 1.1: Define the scope of marketing. AACSB: Reflective thinking 3) Which of these was identified as key reason why Nintendo had a hit with the Wii and Apple with the iPad? A) Both companies designed the right product based on thoughtful research. B) Both products were flukes that happened to hit the market at the right time. C) Neither product led its category, but both were sold aggressively. D) Both products underpriced their competition. E) American consumers have enough disposable income to afford luxury gadgets. Answer: A Diff: 2 LO: 1.1: Define the scope of marketing. AACSB: Reflective thinking 2 Copyright © 2022 Pearson Education, Inc. 4) Which of these entities represent the bulk of most countries' marketing efforts? A) Experiences B) Services C) Goods D) Events E) Places Answer: C Diff: 1 LO: 1.1: Define the scope of marketing. AACSB: Reflective thinking 5) Raw materials, labor, and sources of funding represent which kind of market? A) Basic B) Primary C) Secondary D) Resource E) Business to business Answer: D Diff: 2 LO: 1.1: Define the scope of marketing. AACSB: Reflective thinking 6) A public service announcement (PSA) encouraging people to wear masks during a pandemic outbreak represents what kind of marketed entity? A) Ideas B) Services C) Experiences D) Information E) Social good Answer: A Diff: 3 LO: 1.1: Define the scope of marketing. AACSB: Reflective thinking 7) Which of these is NOT one of the five basic markets? A) Resource markets B) Manufacturer markets C) Educational markets D) Consumer markets E) Government markets Answer: C Diff: 2 LO: 1.1: Define the scope of marketing. AACSB: Reflective thinking 3 Copyright © 2022 Pearson Education, Inc. 8) How does successful marketing create jobs? A) By raising the standard of living B) By encouraging conspicuous consumption C) By increasing brand equity D) By promoting capitalism E) By building demand for products and services Answer: E Diff: 3 LO: 1.1: Define the scope of marketing. AACSB: Reflective thinking 9) In the four flows in a modern exchange economy, what do sellers receive from buyers in addition to money? A) Legal rights B) Legal releases C) Intangible resources D) Information E) Confirmation Answer: D Diff: 2 LO: 1.1: Define the scope of marketing. AACSB: Reflective thinking 10) The decline of companies such as MySpace and Blockbuster can be attributed at least in part to which of these marketing mistakes? A) Failing to continually improve value offerings and marketing strategies B) Failing to articulate a clear customer message C) Overpricing in a declining economy D) Confusing markets with unclear corporate branding E) Failing to use marketing intermediaries effectively Answer: A Diff: 2 LO: 1.1: Define the scope of marketing. AACSB: Reflective thinking 11) Which of these reasons was identified as a success factor for the British firm RB (formerly Reckitt Benckiser)? A) Strong sales teams B) Emotional advertising C) Digging deeply into consumer habits D) Government subsidies E) Undercutting competitors on prices Answer: C Diff: 2 LO: 1.1: Define the scope of marketing. AACSB: Reflective thinking 4 Copyright © 2022 Pearson Education, Inc. 12) Which of these is a reason senior management should encourage fresh ideas from underrepresented groups of employees? A) To challenge company orthodoxy B) To lower costs by engaging lower-paid worker in research C) To avoid charges of discrimination D) To copy what benchmark competitors are doing E) To promote employee morale Answer: A Diff: 1 LO: 1.1: Define the scope of marketing. AACSB: Reflective thinking 13) 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: Define the scope of marketing. AACSB: Reflective thinking 14) ________ 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: 1.1: Define the scope of marketing. AACSB: Reflective thinking 5 Copyright © 2022 Pearson Education, Inc. 15) 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: 3 LO: 1.1: Define the scope of marketing. AACSB: Reflective thinking 16) 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: 2 LO: 1.1: Define the scope of marketing. AACSB: Reflective thinking 17) ________ 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: 1.1: Define the scope of marketing. AACSB: Reflective thinking 6 Copyright © 2022 Pearson Education, Inc. 18) 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: 1.1: Define the scope of marketing. AACSB: Reflective thinking 19) Car rental firms, hair dressers, and management consultants provide ________. A) goods B) experiences C) events D) services E) information Answer: D Diff: 1 LO: 1.1: Define the scope of marketing. AACSB: Analytical thinking; Application of knowledge 20) 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 Answer: D Diff: 2 LO: 1.1: Define the scope of marketing. AACSB: Application of knowledge 21) 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 Answer: D Diff: 2 LO: 1.1: Define the scope of marketing. AACSB: Analytical thinking; Application of knowledge 7 Copyright © 2022 Pearson Education, Inc. 22) 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 Answer: A Diff: 1 LO: 1.1: Define the scope of marketing. AACSB: Analytical thinking; Application of knowledge 23) 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: 1.1: Define the scope of marketing. AACSB: Analytical thinking 24) Services constitute the bulk of most countries' production and marketing efforts. Answer: FALSE Diff: 3 LO: 1.1: Define the scope of marketing. AACSB: Analytical thinking 25) 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: 1.1: Define the scope of marketing. 26) Properties are tangible rights of ownership to either real property (real estate) or financial property (stocks and bonds). Answer: FALSE Diff: 1 LO: 1.1: Define the scope of marketing. 8 Copyright © 2022 Pearson Education, Inc. 27) How does the social definition of marketing differ from the managerial definition? Answer: The managerial definition focus on the challenges and responsibilities of managing marketing functions and processes within the organization. The social definition is more of an "outside looking in" definition, as a societal 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. Diff: 3 LO: 1.1: Define the scope of marketing. AACSB: Analytical thinking 28) What are the five basic markets in the modern economy? Answer: The five basic markets are resource markets, manufacturer markets, consumer markets, intermediary markets, and government markets. Diff: 2 LO: 1.1: Define the scope of marketing. AACSB: Reflective thinking 29) 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. Answer: The student should demonstrate his or her understanding that the marketer must use data to understand customer needs and translate this understanding into properly designed products and services. This requires application of state-of-the art tools and techniques. It is also an art as marketers try to find creative solutions to consumer needs. Diff: 2 LO: 1.1: Define the scope of marketing. AACSB: Reflective thinking 30) Marketers are involved in marketing 10 types of entities. List and briefly characterize these entities. Answer: The types of entities that are marketed are: • goods – physical goods • services – hotels and car rental services • events – time-based events such as trade shows • experiences – Walt Disney's Magic Kingdom • persons – celebrity marketing • places – cities, states, regions, and even whole nations • properties – intangible rights of ownership of either real property or financial property • organizations – corporate identity • information – information produced and marketed as a product • ideas – marketing the basic idea of a market offering. Diff: 3 LO: 1.1: Define the scope of marketing. AACSB: Analytical thinking; Application of knowledge 9 Copyright © 2022 Pearson Education, Inc. 31) 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: 1.1: Define the scope of marketing. AACSB: Reflective thinking 32) Relationship marketing, integrated marketing, internal marketing, and performance marketing are the four pillars of what concept? A) Business to business marketing B) Technology-driven marketing C) Strategic marketing D) Holistic marketing E) Tactical marketing Answer: D Diff: 3 LO: 1.2: Describe the new marketing realities. AACSB: Application of knowledge 33) Which of these is true regarding the growth of data analytics and artificial intelligence platforms? A) Their complexity is beyond the capability of all but the largest firms. B) Their spiraling costs put them out of reach of all but the largest firms. C) Everyone can use them now, so their competitive advantages have disappeared. D) Growth has democratized these technologies, making them available to smaller firms. E) Despite initial promise, they haven't had much impact on contemporary marketing. Answer: D Diff: 2 LO: 1.2: Describe the new marketing realities. AACSB: Application of knowledge 34) What effect have advanced telecommunication technologies and workflow platforms had on global business? A) They have diluted global marketing efforts. B) They have increased nationalistic tendencies in marketing communication. C) They have encouraged a backlash against multiculturalism. D) They have had no measurable impact. E) They have lowered geographic and political barriers. Answer: E Diff: 2 LO: 1.2: Describe the new marketing realities. AACSB: Application of knowledge 10 Copyright © 2022 Pearson Education, Inc. 35) Which of these is an identified health risk associated with increased globalization? A) Localized diseases can become worldwide pandemics more easily. B) Governments are less likely to assist with global health crises. C) Misinformation creates anxiety around critical health issues. D) Globalization encourages hoarding of scarce medical resources. E) Globalization interferes with international medical research. Answer: A Diff: 2 LO: 1.2: Describe the new marketing realities. AACSB: Application of knowledge 36) Why are a company's own employees considered vital participants in holistic marketing? A) Employees who feel ignored will lash out on social media. B) Companies can spread out the costs of marketing by involving more people. C) Marketing succeeds only when all departments work together to achieve customer goals. D) A democratic approach to marketing invites everyone in the company to participate. E) Few companies still have traditional marketing departments. Answer: C Diff: 3 LO: 1.2: Describe the new marketing realities. AACSB: Application of knowledge 37) Which of these characterizes the need for internal coordination of the marketing effort? A) A tops-down approach that pushes the marketing concept through the organization B) Concentric alignment with marketing at the center C) Vertical alignment with senior management D) Vertical alignment with senior management and horizontal alignment with other departments E) Horizontal alignment with other departments and vertical alignment with the sales channel Answer: D Diff: 3 LO: 1.2: Describe the new marketing realities. AACSB: Application of knowledge 38) Which of these components of holistic marketing should take priority over the others? A) Internal marketing B) Relationship marketing C) Integrated marketing D) Performance marketing E) None of them take priority over the others Answer: E Diff: 3 LO: 1.2: Describe the new marketing realities. AACSB: Application of knowledge 11 Copyright © 2022 Pearson Education, Inc. 39) What is the ultimate outcome of relationship marketing? A) Higher profits B) Sustainable profits C) A marketing network with mutually profitable relationships D) Lower barriers to entry in new markets E) Lower marketing costs through cost-sharing with network partners Answer: C Diff: 3 LO: 1.2: Describe the new marketing realities. AACSB: Application of knowledge 40) Who are the four key constituencies in relationship marketing? A) Investors, news media, customers, and employees B) Suppliers, customers, retailers, and wholesalers C) Customers, retailers, financial analysts, and investors D) Customers, employees, marketing partners, and the financial community E) Manufacturers, customers, service providers, and investors Answer: D Diff: 2 LO: 1.2: Describe the new marketing realities. AACSB: Application of knowledge 41) Why have firms such as Bank of America suspended their blogging efforts in favor of Twitter and Facebook? A) To focus on where their customers are communicating B) To reduce regulatory burdens C) To improve cost efficiencies in corporate communications D) To reduce staff time required to connect with customers E) To reduce their digital footprints Answer: A Diff: 2 LO: 1.2: Describe the new marketing realities. AACSB: Integration of real-world business experiences 42) If a company rolling out a new marketing communications campaign conducted an employee preview party and training session to help workers understand the significance of the new campaign, the company would be engaging in ________. A) integrated marketing B) internal marketing C) performance marketing D) relationship marketing E) multichannel marketing Answer: B Diff: 1 LO: 1.2: Describe the new marketing realities. AACSB: Reflective thinking 12 Copyright © 2022 Pearson Education, Inc. 43) ________ marketing recognizes and reconciles the scope and complexities of marketing activities and offers an integrated approach to managing strategy and tactics. A) Niche B) Holistic C) Relationship D) Supply chain E) Demand-centered Answer: B Diff: 2 LO: 1.2: Describe the new marketing realities. AACSB: Reflective thinking 44) 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 Answer: C Diff: 2 LO: 1.2: Describe the new marketing realities. AACSB: Reflective thinking 45) ________ marketing aims to build mutually satisfying long-term collaboration with key constituents, such as customers, employees, suppliers, distributors, and other marketing partners, in order to earn and retain their business. A) Integrated B) Demand-based C) Direct D) Relationship E) Internal Answer: D Diff: 1 LO: 1.2: Describe the new marketing realities. AACSB: Reflective thinking 13 Copyright © 2022 Pearson Education, Inc. 46) 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. Answer: C Diff: 2 LO: 1.2: Describe the new marketing realities. AACSB: Application of knowledge 47) Which aspect of holistic marketing motivates employees and ensures that everyone in the organization embraces appropriate marketing principles, especially senior management? A) Relationship marketing B) Integrated marketing C) Internal marketing D) Network marketing E) Performance marketing Answer: C Diff: 2 LO: 1.2: Describe the new marketing realities. AACSB: Analytical thinking 48) Financial accountability and social responsibility marketing are elements of ________ marketing. A) performance B) relationship C) internal D) social E) mass Answer: A Diff: 2 LO: 1.2: Describe the new marketing realities. AACSB: Analytical thinking 14 Copyright © 2022 Pearson Education, Inc. 49) Companies are recognizing that much of their market value comes from ________, particularly their 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 Answer: C Diff: 1 LO: 1.2: Describe the new marketing realities. AACSB: Reflective thinking 50) 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 Answer: C Diff: 2 LO: 1.2: Describe the new marketing realities. AACSB: Diverse and multicultural work environments 51) Which of the four transformational market 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 Answer: E Diff: 2 LO: 1.2: Describe the new marketing realities. AACSB: Reflective thinking 15 Copyright © 2022 Pearson Education, Inc. 52) 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: 1.2: Describe the new marketing realities. AACSB: Application of knowledge 53) 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: 1.2: Describe the new marketing realities. AACSB: Analytical thinking; Application of knowledge 54) 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: 1.2: Describe the new marketing realities. AACSB: Reflective thinking