Marketing Management, 15e, Global Edition (Kotler)
Chapter 3 Collecting Information and Forecasting Demand
1) As the manager of an organization that is attempting to build a Marketing Information System
(MIS), you have been informed that an MIS is built upon three fundamental information sources.
The sources are ________, marketing intelligence activities, and marketing research.
A) external records and documents
B) databases found on the Internet
C) consultant reports
D) internal company records
E) secondary data from government sources such as the Better Business Bureau
Answer: D
Diff: 1
LO: 3.1: What are the components of a modern marketing information system?
AACSB: Information technology
2) The company's marketing information system should be a mix of what managers think they
need, what managers really need, and ________.
A) what the marketing research department is able to do
B) what consumers are willing to consume
C) what the government policies allow
D) what is acceptable at the industry level
E) what is economically feasible
Answer: E
Diff: 2
LO: 3.1: What are the components of a modern marketing information system?
AACSB: Information technology
3) Marketers have little information about how consumption patterns vary across and within
countries.
Answer: FALSE
Diff: 1
LO: 3.1: What are the components of a modern marketing information system?
AACSB: Information technology
4) Companies with superior information enjoy a competitive advantage.
Answer: TRUE
Diff: 1
LO: 3.1: What are the components of a modern marketing information system?
AACSB: Information technology
1
Copyright © 2016 Pearson Education Limited
,5) What is a marketing information system (MIS)? From what sources is the MIS developed?
Answer: A marketing information system (MIS) consists of people, equipment, and procedures
to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to
marketing decision makers. A marketing information system is developed from internal company
records, marketing intelligence activities, and marketing research.
Diff: 1
LO: 3.1: What are the components of a modern marketing information system?
AACSB: Information technology
6) What are the two basic advantages that a company's marketers have in identifying significant
changes in the market?
Answer: The two advantages are
1. They have disciplined methods for collecting information.
2. They spend more time interacting with customers and observing competition.
Diff: 1
LO: 3.1: What are the components of a modern marketing information system?
AACSB: Information technology
7) The heart of the internal records system is the ________ because customers favor firms that
can promise timely delivery.
A) sales information system
B) data mining system
C) order-to-payment cycle
D) information needs probe
E) data warehouse
Answer: C
Diff: 3
LO: 3.2: What are useful internal records for a marketing information system?
AACSB: Information technology
8) The ________ begins with sales representatives and dealers sending orders to the firms and is
followed by the sales department preparing invoices, and finally generating shipping and billing
documents which are then sent to various departments.
A) payroll system
B) market research process
C) human resources system
D) expense cycle
E) order-to-payment cycle
Answer: E
Diff: 2
LO: 3.2: What are useful internal records for a marketing information system?
AACSB: Information technology
2
Copyright © 2016 Pearson Education Limited
,9) By equipping its sales force with handheld devices with barcode readers and Internet
connections to speed inventory assessment, TaylorMade allows sales executives to have
significantly more time to interact with their consumers. This is an example of the use of
technology in improving ________.
A) sales information systems
B) payroll systems
C) cookies
D) cohort segmentation
E) competitive intelligence gathering
Answer: A
Diff: 2
LO: 3.2: What are useful internal records for a marketing information system?
AACSB: Information technology
10) Companies can practice targeted marketing by using ________, which are records of Web
site usage stored on personal browsers.
A) plug-ins
B) black swans
C) cookies
D) trolls
E) honey-pots
Answer: C
Diff: 1
LO: 3.2: What are useful internal records for a marketing information system?
AACSB: Information technology
11) Because customers are not really concerned with timely delivery, customers are unlikely to
differentiate between firms based on their order-to-payment cycles.
Answer: FALSE
Diff: 1
LO: 3.2: What are useful internal records for a marketing information system?
AACSB: Information technology
12) Few consumers actually delete cookies frequently. When customers do not delete cookies,
they expect customized marketing appeals and deals.
Answer: TRUE
Diff: 2
LO: 3.2: What are useful internal records for a marketing information system?
AACSB: Information technology
13) Mailing of a new offer to a handful of selected customers instead of all customers reduces
the response rate to the offer.
Answer: FALSE
Diff: 2
LO: 3.2: What are useful internal records for a marketing information system?
AACSB: Information technology
3
Copyright © 2016 Pearson Education Limited
, 14) Why is it necessary for firms to execute the steps of the order-to-payment cycle quickly and
accurately?
Answer: It is necessary for the firms to execute the steps of the order-to-payment cycle quickly
and accurately because customers favor firms that can promise timely delivery.
Diff: 1
LO: 3.2: What are useful internal records for a marketing information system?
AACSB: Information technology
15) Describe the steps in the order-to-payment cycle.
Answer: Sales representatives, dealers, and customers send orders to the firm. The sales
department prepares invoices, transmits copies to various departments, and back-orders out-of-
stock items. Shipped items generate shipping and billing documents that go to various
departments.
Diff: 1
LO: 3.2: What are useful internal records for a marketing information system?
AACSB: Information technology
16) List three examples of how companies are using Big Data.
Answer: Student answers will vary. Examples from the text include: UK supermarket giant
Tesco collects 1.5 billion pieces of data every month to set prices and promotions; US
kitchenware retailer Williams-Sonoma uses its customer knowledge to customize versions of its
catalog. Amazon reports generating 30 percent of its sales through its recommendation engine
("You may also like"). Bank of America is tracking spending and demographic data and tailoring
promotions — for example, offering back-to-school deals to cardholders with children.
JPMorgan Chase has improved communications to new cardholders to gain more engagement.
On the production side, GE set up a team of developers in Silicon Valley to improve the
efficiency of the jet engines, generators, locomotives, and CT scanners it sells.
Diff: 2
LO: 3.2: What are useful internal records for a marketing information system?
AACSB: Information technology
17) The internal records system supplies results data, but the marketing intelligence system
supplies ________ data.
A) internal
B) revenue
C) thematic
D) happenings
E) process
Answer: D
Diff: 1
LO: 3.3: What makes up a marketing intelligence system?
AACSB: Information technology
4
Copyright © 2016 Pearson Education Limited
Chapter 3 Collecting Information and Forecasting Demand
1) As the manager of an organization that is attempting to build a Marketing Information System
(MIS), you have been informed that an MIS is built upon three fundamental information sources.
The sources are ________, marketing intelligence activities, and marketing research.
A) external records and documents
B) databases found on the Internet
C) consultant reports
D) internal company records
E) secondary data from government sources such as the Better Business Bureau
Answer: D
Diff: 1
LO: 3.1: What are the components of a modern marketing information system?
AACSB: Information technology
2) The company's marketing information system should be a mix of what managers think they
need, what managers really need, and ________.
A) what the marketing research department is able to do
B) what consumers are willing to consume
C) what the government policies allow
D) what is acceptable at the industry level
E) what is economically feasible
Answer: E
Diff: 2
LO: 3.1: What are the components of a modern marketing information system?
AACSB: Information technology
3) Marketers have little information about how consumption patterns vary across and within
countries.
Answer: FALSE
Diff: 1
LO: 3.1: What are the components of a modern marketing information system?
AACSB: Information technology
4) Companies with superior information enjoy a competitive advantage.
Answer: TRUE
Diff: 1
LO: 3.1: What are the components of a modern marketing information system?
AACSB: Information technology
1
Copyright © 2016 Pearson Education Limited
,5) What is a marketing information system (MIS)? From what sources is the MIS developed?
Answer: A marketing information system (MIS) consists of people, equipment, and procedures
to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to
marketing decision makers. A marketing information system is developed from internal company
records, marketing intelligence activities, and marketing research.
Diff: 1
LO: 3.1: What are the components of a modern marketing information system?
AACSB: Information technology
6) What are the two basic advantages that a company's marketers have in identifying significant
changes in the market?
Answer: The two advantages are
1. They have disciplined methods for collecting information.
2. They spend more time interacting with customers and observing competition.
Diff: 1
LO: 3.1: What are the components of a modern marketing information system?
AACSB: Information technology
7) The heart of the internal records system is the ________ because customers favor firms that
can promise timely delivery.
A) sales information system
B) data mining system
C) order-to-payment cycle
D) information needs probe
E) data warehouse
Answer: C
Diff: 3
LO: 3.2: What are useful internal records for a marketing information system?
AACSB: Information technology
8) The ________ begins with sales representatives and dealers sending orders to the firms and is
followed by the sales department preparing invoices, and finally generating shipping and billing
documents which are then sent to various departments.
A) payroll system
B) market research process
C) human resources system
D) expense cycle
E) order-to-payment cycle
Answer: E
Diff: 2
LO: 3.2: What are useful internal records for a marketing information system?
AACSB: Information technology
2
Copyright © 2016 Pearson Education Limited
,9) By equipping its sales force with handheld devices with barcode readers and Internet
connections to speed inventory assessment, TaylorMade allows sales executives to have
significantly more time to interact with their consumers. This is an example of the use of
technology in improving ________.
A) sales information systems
B) payroll systems
C) cookies
D) cohort segmentation
E) competitive intelligence gathering
Answer: A
Diff: 2
LO: 3.2: What are useful internal records for a marketing information system?
AACSB: Information technology
10) Companies can practice targeted marketing by using ________, which are records of Web
site usage stored on personal browsers.
A) plug-ins
B) black swans
C) cookies
D) trolls
E) honey-pots
Answer: C
Diff: 1
LO: 3.2: What are useful internal records for a marketing information system?
AACSB: Information technology
11) Because customers are not really concerned with timely delivery, customers are unlikely to
differentiate between firms based on their order-to-payment cycles.
Answer: FALSE
Diff: 1
LO: 3.2: What are useful internal records for a marketing information system?
AACSB: Information technology
12) Few consumers actually delete cookies frequently. When customers do not delete cookies,
they expect customized marketing appeals and deals.
Answer: TRUE
Diff: 2
LO: 3.2: What are useful internal records for a marketing information system?
AACSB: Information technology
13) Mailing of a new offer to a handful of selected customers instead of all customers reduces
the response rate to the offer.
Answer: FALSE
Diff: 2
LO: 3.2: What are useful internal records for a marketing information system?
AACSB: Information technology
3
Copyright © 2016 Pearson Education Limited
, 14) Why is it necessary for firms to execute the steps of the order-to-payment cycle quickly and
accurately?
Answer: It is necessary for the firms to execute the steps of the order-to-payment cycle quickly
and accurately because customers favor firms that can promise timely delivery.
Diff: 1
LO: 3.2: What are useful internal records for a marketing information system?
AACSB: Information technology
15) Describe the steps in the order-to-payment cycle.
Answer: Sales representatives, dealers, and customers send orders to the firm. The sales
department prepares invoices, transmits copies to various departments, and back-orders out-of-
stock items. Shipped items generate shipping and billing documents that go to various
departments.
Diff: 1
LO: 3.2: What are useful internal records for a marketing information system?
AACSB: Information technology
16) List three examples of how companies are using Big Data.
Answer: Student answers will vary. Examples from the text include: UK supermarket giant
Tesco collects 1.5 billion pieces of data every month to set prices and promotions; US
kitchenware retailer Williams-Sonoma uses its customer knowledge to customize versions of its
catalog. Amazon reports generating 30 percent of its sales through its recommendation engine
("You may also like"). Bank of America is tracking spending and demographic data and tailoring
promotions — for example, offering back-to-school deals to cardholders with children.
JPMorgan Chase has improved communications to new cardholders to gain more engagement.
On the production side, GE set up a team of developers in Silicon Valley to improve the
efficiency of the jet engines, generators, locomotives, and CT scanners it sells.
Diff: 2
LO: 3.2: What are useful internal records for a marketing information system?
AACSB: Information technology
17) The internal records system supplies results data, but the marketing intelligence system
supplies ________ data.
A) internal
B) revenue
C) thematic
D) happenings
E) process
Answer: D
Diff: 1
LO: 3.3: What makes up a marketing intelligence system?
AACSB: Information technology
4
Copyright © 2016 Pearson Education Limited
