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Marketing An Introduction 15e (Global Edition) By Gary Armstrong, Philip Kotler (Test Bank All Chapters, 100% Original Verified, A+ Grade) Marketing: An Introduction, 15e (Armstrong) Chapter 1 Marketing: Creating Customer Value and Engagement 1) Marketing, more than any other business function, deals with ________. A) customers B) sales C) advertising D) new products E) brands Answer: A Diff: 1 LO: 1-1: Define marketing and outline the steps in the marketing process. AACSB: Application of knowledge 2) According to the five-step model of the marketing process, the first step in marketing is ________. A) capturing value from customers to create profits and customer equity B) constructing an integrated marketing program that delivers superior value C) engaging customers, building profitable relationships, and creating customer delight D) understanding the marketplace and customer needs and wants E) designing a customer-driven marketing strategy Answer: D Diff: 2 LO: 1-1: Define marketing and outline the steps in the marketing process. AACSB: Analytical thinking 3) According to the five-step model of the marketing process, the final step in marketing is ________. A) capturing value from customers to create profits and customer equity B) constructing an integrated marketing program that delivers superior value C) engaging customers, building profitable relationships, and creating customer delight D) understanding the marketplace and customer needs and wants E) designing a customer-driven marketing strategy Answer: A Diff: 2 LO: 1-1: Define marketing and outline the steps in the marketing process. AACSB: Analytical thinking

4) For marketing to be effective, it must ________. A) create a buying experience B) help people connect with the people in their lives C) create customer value D) develop a culture of warmth and belonging E) deliver high quality products Answer: C Diff: 3 LO: 1-1: Define marketing and outline the steps in the marketing process. AACSB: Analytical thinking 5) A good definition of marketing is "telling and selling." Answer: FALSE Diff: 1 LO: 1-1: Define marketing and outline the steps in the marketing process. AACSB: Analytical thinking 6) Marketing is primarily concerned with engaging customers and secondarily with managing profitable customer relationships. Answer: FALSE Diff: 2 LO: 1-1: Define marketing and outline the steps in the marketing process. AACSB: Analytical thinking 7) The final step in the marketing process is capturing customer value in the form of profits and customer equity. Answer: TRUE Diff: 1 LO: 1-1: Define marketing and outline the steps in the marketing process. AACSB: Application of knowledge 8) What is marketing? Briefly describe the marketing process. Answer: Marketing can be defined as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. The marketing process consists of five steps. In the first four steps, companies work to understand consumers, create customer value, and build strong customer relationships. In the final step, companies reap the rewards of creating superior customer value. By creating value for consumers, they in turn capture value from consumers in the form of sales, profits, and long-term customer equity. Diff: 2 LO: 1-1: Define marketing and outline the steps in the marketing process. AACSB: Analytical thinking

9) Explain why marketing is not simply "making a sale." Answer: Marketing is essentially satisfying customer needs. If marketers engage consumers effectively, understands their needs, develops products that provide superior customer value, and price, distribute, and promote them well, these products will sell easily. In fact, according to management guru Peter Drucker, "The aim of marketing is to make selling unnecessary." Diff: 3 LO: 1-1: Define marketing and outline the steps in the marketing process. AACSB: Analytical thinking 10) ________ are defined as states of felt deprivation. A) Needs B) Ideas C) Demands D) Values E) Exchanges Answer: A Diff: 1 LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 11) ________ are the form human needs take as they are shaped by culture and individual personality. A) Wants B) Necessities C) Services D) Benefits E) Risks Answer: A Diff: 1 LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 12) Abel now has the buying power to purchase the computer that he wanted to buy six months ago. Abel's want has most likely become a ________. A) need B) value C) demand D) market offering E) desire Answer: C Diff: 3 LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 3 Copyright © 2023 Pearson Education, Inc.

13) To market the cause of suicide prevention, rapper Logic worked with the National Suicide Prevent Lifeline (NSPL) to create a video embedded with his song "1-800-273-8255," the NSPL phone number. This is an example of a marketing offering for a(n) ________. A) product B) person C) idea D) place E) exchange Answer: C Diff: 2 LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 14) The Walt Disney World Resort doesn't just offer amusement park rides, it uses its famed Disney magic to create carefully orchestrated ________. A) service offerings B) benefits C) wants D) values E) experiences Answer: E Diff: 2 LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 15) ________ is the act of obtaining a desired object from someone by offering something in return. A) Targeting B) Segmentation C) Differentiation D) Exchange E) Positioning Answer: D Diff: 1 LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking

Use the information below to answer the following questions. Amazon founder Jeff Bezos vaulted to the position of wealthiest person in the world in a relatively short period of time by building his small online book selling platform into an online retail giant that was listed as the most valuable brand in the world in 2021. One of the things Bezos does is to frequently read customer emails. When something catches his eye he forwards the email to the appropriate person to take care of the issue. Jeff Bezos views Amazon's role as that of "creating genuine value for customers." Bezos is motivated by the fact that Amazon customers will be loyal until another firm offers better products and/or service. Amazon has also been extremely innovative in the order and delivery process which makes the shopping experience a breeze for consumers. In the past three years Amazon's revenues have more than doubled to $386 billion dollars and the firm accounts for 45% of all online sales. 16) Much of Amazon's success can be attributed to ________. A) rapid delivery B) selling only the highest quality products C) identifying customer needs D) creating value for customers E) a vast product selection Answer: D Diff: 3 LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 17) One simple method used by Jeff Bezos to identify customer concerns is to ________. A) visit various retail stores B) send out digital surveys C) read customer emails D) periodically call Amazon customers E) analyze big data from the website Answer: C Diff: 2 LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking

18) If Jeff Bezos and Amazon originally focused solely on his online product offerings, he would be guilty of ________. A) marketing myopia B) focusing on needs over wants C) paying too much attention to the customer D) competitive analysis E) niche marketing Answer: A Diff: 2 LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 19) Amazon's primary focus is on its product offerings. Answer: FALSE Diff: 2 LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 20) Jeff Bezos attributes Amazon's success to the focus on creating value for customers. Answer: TRUE Diff: 2 LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 21) When backed by buying power, wants become needs. Answer: FALSE Diff: 2 LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 22) Market offerings are limited to physical products. Answer: FALSE Diff: 1 LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Application of knowledge 23) Market offerings include entities such as people, places, information, and ideas. Answer: TRUE Diff: 2 LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 6 Copyright © 2023 Pearson Education, Inc.

24) A greater focus on underlying customer needs than on existing customer wants leads to marketing myopia. Answer: FALSE Diff: 2 LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Application of knowledge 25) A market is a segment of potential consumers who share a common need or want. Answer: TRUE Diff: 1 LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 26) A market is a physical space where exchange occurs. Answer: FALSE Diff: 2 LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 27) Using suitable examples, briefly compare and contrast the concepts of needs, wants, and demands. Discuss how these concepts relate to marketing practices. Answer: Human needs are states of felt deprivation. Needs are part of the human make-up; they are not created by external forces. Humans have a basic physical need for food, clothing, warmth, and safety, a basic social need for belonging and affection, and a basic individual need for knowledge and self-expression. Unlike needs, wants are not innate. Instead, wants are needs shaped by culture, society, and individual personality. For example, an American needs food, wants a Big Mac and soft drink, and demands lunch at McDonald's. Wants become demands when they are backed by consumers' buying power. Marketers conduct extensive research to understand customers' needs, wants, and demands. They then attempt to fulfill customers' needs, wants, and demands through their market offerings. Diff: 3 LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking

28) Explain market offerings and marketing myopia. Answer: Consumers' needs and wants are fulfilled through market offerings — some combination of products, services, information, or experiences offered to a market to satisfy a need or a want. Market offerings are not limited to physical products. They also include services—activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything. Examples include banking, airline, hotel, retailing, and home repair services. More broadly, market offerings also include other entities, such as persons, places, organizations, information, and ideas. Many sellers make the mistake of paying more attention to the specific products they offer than to the benefits and experiences produced by these products. These sellers suffer from marketing myopia. They are so taken with their products that they focus only on existing wants and lose sight of underlying customer needs. They forget that a product is only a tool to solve a consumer problem. A manufacturer of quarter-inch drill bits may think that the customer needs a drill bit but what the customer really needs is a quarter-inch hole. These sellers will have trouble if a new product comes along that serves the customer's need better or less expensively. The customer will have the same need but will want the new product. Diff: 2 LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Application of knowledge 29) Which of these questions must be answered to develop a winning marketing strategy? A) How do we deliver products to customers? B) What products should we focus on selling? C) What is our value proposition? D) Which online platform should we use to market our products? E) How many marketing representatives will we need to hire? Answer: C Diff: 2 LO: 1-3: Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 30) Savvy marketing managers know ________. A) the best strategy is to try to serve as many customers as possible B) that market segmentation involves positioning the product for maximum exposure C) it is better to have more products available for sale D) that it is impossible to serve all potential customers in every way E) hiring more sales reps always leads to higher sales volume Answer: D Diff: 3 LO: 1-3: Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking

31) Which of these questions is answered by a firm's value proposition? A) What products should I deliver? B) Which markets do I serve? C) Why should I buy your brand rather than a competitor's? D) How will I inform my target audience about my products? E) Should I use more digital marketing tools or traditional tools? Answer: C Diff: 2 LO: 1-3: Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 32) ________ is the art and science of choosing target markets and building profitable relationships with those markets. A) Differentiation B) Marketing management C) Positioning D) Segmentation E) Customer-perceived value Answer: B Diff: 1 LO: 1-3: Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 33) Dividing a market into several sections of customers is known as ________. A) mass customization B) market positioning C) market segmentation D) value engineering E) undifferentiated marketing Answer: C Diff: 1 LO: 1-3: Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking

34) Dollar General profitably appeals to families with more modest means. The retailer's approach is most likely referred to as ________. A) mass distribution B) cost leadership C) consumer-generated marketing D) target marketing E) undifferentiated marketing Answer: D Diff: 3 LO: 1-3: Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 35) A brand's ________ is the set of benefits that it promises to deliver to consumers to satisfy their needs. A) dominant effect B) fringe benefit C) perquisite D) value proposition E) dividend yield Answer: D Diff: 1 LO: 1-3: Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 36) JetBlue's promise that "Just Alright Doesn't Fly Here" and their commitment to deliver "award-winning service from award-winningly nice humans" is their ________. A) value proposition B) segmentation strategy C) market offering D) selling concept E) production concept Answer: A Diff: 2 LO: 1-3: Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking