MARK301 Quizzes, mark301

The value that predicts how much profit is associated with a customer during their lifetime relationship with a company is the definition of:

customer lifetime value

A marketing discipline that combines computer technology and databases with marketing communication and customer service is the definition of:

customer relationship management

The discipline in marketing that combines databases and computer technology with marketing communications and customer service is the definition of:

customer relationship management

In today's competitive landscape, a company like Netflix can be a marketing success if it puts what guideline as its main focus?

customer satisfaction

Surf Diva, a surf instruction company, finds an unmet need in teaching teenage girls how to surf. The girls that attend its classes are:

customers

Annual Revenue $200 Annual Costs $200 Years a Customer 3 yrs Acquisition Cost $500 CLV??

-300

What type of segmentation criteria are included in demographic segmentation?

gender, education, ethnicity

Annual Revenue ?? Annual Costs $50 Years a Customer 15 yrs Acquisition Cost $2,000 CLV$14,400

1140

Annual Revenue from a Customer $5,000 Annual Costs $800 Years a Customer 7 yrs Acquisition Cost $1500 CLV??

28700

Jill loves freshly made bread and visits her local bakery every week on Saturday mornings. She has been going to the same bakery every week since she moved into the neighborhood six years ago. Half the time her bill amounts to $7, but the other half of the time she indulges and buys some cupcakes or cookies and her bill adds up to $12 Calculate the CLV for Jill.

2964

Annual Revenue $1500 Annual Costs $100 Years a Customer 3 yrs Acquisition Cost $500 CLV??

3800

The annual revenue generated from of a customer Tony Stark is $1,000. Tony has been a customer at this outlet for 5 years and the initial cost of acquiring him was $150 and it costs $50 each year to keep him coming back. Calculate the customer lifetime value for Tony?

4650

Annual Revenue $500 Annual Costs $100 Years a Customer 6 yrs Acquisition Cost ?? CLV $2000

500

Beyoncé usually visits the grocery store twice a month. But every year due to the holidays she visits the store three times a month for four months. She spends $50 on an average each time she goes to the store. Calculate the number of years she will have to shop at the same store for her Customer Lifetime Value (CLV) to be $8400.

6

Roger Federer usually visits the grocery store once a month. He spends $80 on an average each time he goes to the store. He has been shopping at this store for 10 years. Calculate the Customer Lifetime Value (CLV) for Roger.

9600

The Undress company produces a dress that women use to quickly and easily change in public. The company is just over a year old and has been successful through a Kickstarter campaign. The Undress company has identified a customer segment, but if it wants to reach a larger customer segment market outside of the Kickstarter family, what question must it answer?

How can it identify and reach the larger market more effectively?

Armed with marketing research results, the company marketer Jeff is conducting a brainstorming session about the price of his company's main product. Which of these questions are most appropriate to steer the conversation about price?

How would changes to pricing affect sales?

High lifetime value customers bring more money to a company when managed well. How do you manage these customers to bring more value to your company?

Measure and improve their satisfaction

The Stryker company discovered through marketing research that one of its medical devices was too difficult for doctors to locate for purchase. It redesigned its website information and highlighted the device, trained the sales staff, prominently featured the device in trade magazines, and simplified the purchasing process. What important step in the process did the Stryker company forget to do?

Measure the impact and results from all of those changes and make additional adjustments.

What is a useful exercise for a marketer to conduct to encourage a better reception of the marketing research insights in an organization?

Review the original problem the research was trying to solve.

Kimball's Vintage Hats is an online-only business selling unique and affordable replicas of vintage designer hats. The business is new, but Kimball worked in Europe for years as a milliner. He sells his wares through an Etsy storefront and has the objective of becoming successful enough to work full time at his passion, this company. What tool or model would most assist Kimball's Vintage Hats to effectively set its marketing objectives and strategies?

SWOT analysis

A company decides to actively monitor social media interactions with its brand, products, company image, and reach. They begin to monitor Facebook, blogs, media outlets, Twitter, etc. What are potential discoveries it may discover by conducting the social listening research?

See who shapes and influences opinions.

The organization that collects data in the U.S. economy about industries, businesses, and the general population which is focused on a business user is:

U.S. Small Business Administration (SBA) General Business Data and Statistics

Eric, a ghost writer, conducted market research and discovered a niche market in writing scripts for corporate online videos. He also knows now the market will bear $250 per script. What question should he ask next about placement of his marketing mix?

What is the best way to get his service to his target customers?

You need a new phone. You liked your old Android phone but aren't sure you want to stay with the same brand. After visiting a phone carrier store you walk away confused about your options, annoyed at the hour it took to get all your questions answered, and without a new phone. You just experienced an example of:

a poor marketing strategy process

If a corporation sets a company objective of increasing its net profit this year by 5%, what marketing objectives and strategy are being used to achieve the corporate objective?

add new product features customers asked for and increasing product price point

The paid announcement in various media forms calling public attention to a need, product, service, or company for the purpose of selling something is the description of which marketing tool?

advertising

Through a variety of movies, lectures, and magazine articles, Nick has become more aware of environmental problems. It is time for him to purchase a new car. With the environmental impacts in mind, Nick looks at the various cars available and decides to purchase a hybrid car from Toyota since they communicated the best value to him. This is an example of how marketing can:

affect decisions Nick makes in daily life

A lighthouse lantern company objective is to increase its market through entering the international lighthouse market. The marketing department set its strategy of increasing company market share by partnering with a large shopping center developer. In order to align with the corporate objectives and strategy the marketing department needs to:

align with the company objective, abandon the shopping mall development market and focus its efforts on the international community of lighthouses

If behavioral segmentation includes the knowledge of, use of, response to, and attitude toward a product, which choice below is an example of a behavioral segmentation?

an rental car company targeting customers with over 50 car rental instances through the rental car company

Jose needs a new mountain bike since his old one was run over by the garbage truck. He has seen the Trek bike company sponsoring races and seen its logos worn by top riders, so he decides to purchase a Trek bike. Jose was influenced by which marketing tool?

branding

An online gaming company had thousands of people playing its car chase game, but no idea who its ideal customer was. What should this company do?

build a buyer persona with collected data

What is an approach a company can use to evaluate the quality of their customer relationships?

collect customer information and build a buyer persona

A sales associate at Ann Taylor Loft, Karina, has developed a relationship with Jeanne over the years—so much so that she only shops for her clothes at Ann Taylor Loft. Even when there are sales at other stores, she continues to buy at Ann Taylor Loft. What advantage is managing a customer relationship well having on the store?

competitive advantage

Nick purchased a book store gift card for his sister Agatha's birthday. Agatha takes the gift card and purchases a book she's wanted to get. Agatha is a:

consumer

A place where consumers and organizations connect, build relationships, and bring to market unique solutions to problems or needs is Indiegogo. What type of societal benefit does its marketing awareness bring?

creates products that satisfies and delights people

What two components of a business's product or business unit does the BCG Matrix address?

current market share and the market's growth potential

Joe receives a new hat for his birthday from his friend Nate. In this example Nate is a:

customer

According the the strategic opportunity matrix, a diversification strategy is going to potentially involve which of the following?

developing a superior new product and capturing a new market

Tabatha was looking into switching coffee products when her group of friends suggested she check out the local coffee shop that sold a house blend that they liked. Tabatha was influenced by her friends and accompanied them to the coffee shop to try out the house blend. She liked it and purchased a bag to take home. The local coffee house had created an atmosphere and following of fans by offering a free cup if a regular brought in a friend. The coffee shop targeted its marketing using what type of approach?

decision-maker segmentation

When a company that made school notebooks enters the pencil and pen market with its new products it is using a:

diversification strategy

A small company making hole punchers has decided to use a differentiated marketing strategy and target four different market segments. What problems might the company encounter?

each segment requires its own marketing plan and execution and costs add up quickly

A process in marketing involving a provider, a customer, a product, and a transaction is known as the:

exchange process

The Indigo Independent bookstore set a goal to increase the foot traffic to its shop and boost book sales by 10% over the next three months. What type of metrics could capture some of the data necessary to give a more accurate reading of how to reach these goals?

first-time shop visitors, how visitors heard about the shop, repeat shop visitors

Which of these steps assist a business in making its products more effective?

gathering data through one large one-time survey and acting upon findings

According to marketers, what happens when a frozen yogurt customer, Radley, goes on social media promoting his preference about a yogurt shop's service and flavor offerings?

he potentially generates new business

Your coworker Zander is looking for a product that helps him plan and record his year effectively. He wants it to also tie in his overall goals with yearly goals. You remember seeing a social media post about a planner by FranklinCovey that meets all of Zander's criteria. You tell Zander and he buys the planner. You just experienced how marketing can:

highlight solutions to problems

A national TV company that owns several affiliate stations is taking a Saturday in January and having its stations broadcast a fundraising marathon to raise awareness and collect donations for the Multiple Sclerosis Society. This is an example of marketing providing what benefit for society?

highlighting an area in society that is in need of a raised awareness

You are trying to define your target market for a travel agency service. Identify the correct order of the market targeting steps:

identify business needs, segment total market, profile target customer segment, research and validate marketing opportunity

A business has developed a product, but is unsure where to focus its efforts to sell the product. Marketing can help this company by:

identifying potential customers

It is summer break and you are at the beach. Walking down the boardwalk, you notice a sign-spinner flashing the way to a local ice cream shop. He is dressed like a homeless person, and this makes you question the quality of the ice cream being sold. You quickly move on down the boardwalk. This is an example of a marketing strategy that:

ignores customer perception

The marketing strategy created for a cell phone accessories company was put together after conducting a SWOT analysis which looked at the company's internal strengths and weaknesses and external opportunities and threats that it faced. This process is known as identifying:

inputs

A camera company had a system set up to captured their customer's information from company interactions. The information included buying behaviors, communication preferences, gender, geographic location, and age. What is this type of collection of information called?

internal data

The Belvie company's value proposition on its website has few hints as to what it offers to the market. Its value proposition is ineffective because it:

is not compelling and is very generic

Bud's Bucket ice cream company produces a chemically enriched ice cream and decides to penetrate the gourmet market by offering its same ice cream at premium prices. What might happen as a result of its market penetration strategy?

it may turn off its current customer base and cause them to purchase a competitor's ice cream

Chobani chose to price its product at close to $1. It based its marketing mix pricing decision by assuming:

it would be successful and have economies of scale

When Arm & Hammer Baking Soda company ran ad campaigns highlighting all of the additional uses for its baking soda product besides deodorizing the refrigerator, what market strategy was it using?

market development strategy

In 2005 the hamburger restaurant Heart Attack Grill opened its doors and offered its customers food "so bad for you it's shocking." To meet the desires of its customers, they added a new promotion. If a customer finishes a Triple or Quadruple Bypass Burger, they are placed on a wheelchair and wheeled out to their vehicle by their own "personal nurse. " Heart Attack Grill is using what type of marketing approach?

market orientation

The term that best describes the process of identifying, satisfying, and maintaining customer relationships is:

marketing

A company's strategy stems from the ideology that "the customer is king," and the company tries to understand its customer as much as possible. Which concept is the company using to drive its success?

marketing concept

What is the freshest source of dependable customer information from either outside or inside an organization?

marketing information

You are asked to create a tool the company you work for can use to focus its customer identification and acquisition strategy, plan strategic moves within the competitive market environment, focus company resources, and use the 4Ps of marketing to achieve the company's goals. You would be smart to create a:

marketing plan

Which marketing process is a systematic way to link collected and analyzed marketing information of customer insights with marketing opportunities and solutions to marketing problems?

marketing research

Beatrice's Vintage Dresses is an online-only business selling unique and affordable replicas of vintage designer dresses. Beatrice ran a SWOT analysis and discovered that she has opportunities to partner with other Etsy vintage fashion designer shops for cross-promotions. Her SWOT analysis has a direct effect on her:

marketing strategy

A tax software company aligned its overall corporate objectives with its marketing mix strategy and tactics. When the time came to use its strategy and tactics, the team failed to enforce the new plans and returned to older plans of the 4Ps mix. They spent ⅔ of the allocated total marketing funds to run online advertisements in head-to-head competition with a well established tax software competitor instead of sticking with its original advertising campaign strategy. What areas did this company fail to do well?

marketing-mix objectives and tactics implementation and aligning their budget

If the company Target is marketing the same way to an entire market, trying to reach the largest audience possible, which targeting strategy is it using?

mass marketing

A new homeless housing nonprofit begins a social media campaign to build general population awareness for its services. This organization is focusing on what area of relationship management?

meeting and getting acquainted stage

There are five types of common marketing segmentation approaches. One of them is geographic segmentation, which covers:

nations, states, zip codes

AnyBots offers a small camera/scooter device that lets you remotely drive around an office without physically being there. It focuses specifically on business travelers who need to be everywhere at once. AnyBots' marketing strategy is called:

niche marketing

An organization called The Road Home provides people otherwise without a place to stay temporary shelter for a night at no cost to them. This organization is an example of a:

non-profit organization

Skullcrushers makes bodybuilding weights and weight bars. For 2016 they plan to offer a new product line of weight benches to the marketplace. It planned on increasing its market share in the bodybuilding equipment market 5% by rolling out marketing campaigns to extreme athletes and obtain 1000 new leads for its new product line by July 2016. This is an example of a company's:

objectives

Caroline started doing her marketing research process by identifying the problem of poor marketing message penetration. What does Caroline need to articulate next?

objectives for the research

A company conducts primary research by watching its non-customers and customers purchase, shop, return products, give positive and negative feedback, and engage in a variety of behaviors. What type of research did this company use?

observational research

After thinking through the marketing mix, if a disposable razor is sold through a drugstore or grocery store to a discount type of customer, the disposable razor company is more likely to:

package the razor in low-cost packaging

Tom has analyzed the competitive landscape of cookbook costs, what a customer is willing to pay for a cookbook, and what the target customer uses to evaluate a cookbook's value. The marketing mix area Tom is focused on is:

price

The TomTom Bandit camera is an example of which marketing 4Ps component?

product

A company like Gillette, which focuses on producing the best possible disposable razors, is an example of a company following which orientation concept?

product concept

Henry Ford is credited for famously saying, "Any customer can have a car painted any color that he wants so long as it is black." Which orientation concept is used by Ford's philosophy?

product concept

When marketing is effective a company receives the benefit of:

product or service improvements

You are evaluating your company's segmentation approach and discover an important missing condition. They have measured their target market and discovered it is reachable, stable, cost-effective, and measurable. Which condition is missing?

profitability

Your company's marketing manager implements the company's new marketing strategy and tactics on the market. What types of information does your marketing manager need to monitor to judge the plan's implementation success and strategic effectiveness?

profits, customer relations, sales information, and competitor reactions

A product is targeted to a risk-averse individual who makes $40k a year, reads Knit Simple magazine, is college educated, belongs to a local book club, and takes a vacation each year to the same place. What type of segmentation was used to market the product?

psychographic segmentation

A local property management company has seen little increase in its revenues over the last year. Its new marketing director, Kim, conducts several segmentation surveys and discovers an improper alignment of company marketing efforts with its actual and potential customer segments. With customers more clearly identified, Kim strategizes the types of marketing campaigns to effectively reach these current and potential customers. Kim used segmentation identification to meet which of her company's objectives? In order for segmentation :

reducing company risk by deciding where, when, how, and to whom a product, service, or brand will be marketed

You invent of a new type of dog leash. You choose a market segmentation approach and decide to target the large national population of dog owners. After reviewing what identifies an ideal market you realize your segmentation approach does not meet any of the effective segmentation conditions. At this point you should:

refine your approach by going back to the drawing board

Easy Walk, a pet leash company, doesn't conduct customer surveys. If it had it would discover that one of its main leash lines frequently snags and breaks, and customers are dissatisfied. The product defect is not addressed and nothing changes for the customer, so the customer leaves. Because the company did not have good marketing, it failed to

retain customers

Marketing strategy uses customer relationship management to help organizations:

retain their customers

A balloon manufacturer is trying to grow its sales by better addressing the needs of its customers. Besides party stores, the company doesn't really know who purchases balloons from it. What should the company do to understand its customers better?

run a segmentation analysis of current customers

Abby is going on a business trip next week. She needs a new pair of pants. After going to the mall and trying on a few pairs, she takes one up to the register and pays for it. Abby's purchase is an example of which marketing tool?

sales

An online software company sends daily spam emails urging you to buy their latest antivirus software. You have declined this email at least ten times, but continue to receive emails. What orientation concept is this company using?

sales concept

When a company is trying to evaluate the effectiveness of its marketing campaign, or marketing ROI, it needs to monitor what types of information?

sales numbers, expenditures from the marketing budget, number of new customers acquired

Medline, a healthcare supplies company, provides many supplies to hospitals around the country. What are some of the best market research tools Medline could use to identify and verify its target markets?

statistics, focus groups, surveys

A means or action by which a plan or objectives are accomplished is the definition of a:

tactic

In order for a company's marketing mix to most effectively be utilized for reaching the company's objectives and strategies, it must focus on what marketing strategy input?

target customer

Zingerman's Deli in Michigan is deciding which new sandwich to add to their menu. There was a month of customer voting, employee voting, and corporate feedback as well to consider. Each segment chose different sandwiches. If the company follows the marketing mix smartly, which sandwich choice should be added to their menu?

target customer's sandwich choice

Direct mailing campaigns were sent out each month around the region for the area's thrift shop and consignment store. The region had a booming economy, and unemployment was down to 1% over the last five years. What was probably the effect of this thrift store's marketing campaign?

the advertisements wasted money and time because they were not targeted properly

As a marketer you are creating an exchange process for a company. What is your main responsibility?

the entire environment in which the value exchange takes place

Clay is a marketing student learning how to evaluate value propositions for effectiveness. He looked through ten different propositions and found them to all be ineffective. What elements did he mostly likely identify as the reasons for their ineffectiveness?

they were generic, and they had no unique value communicated

Joe's Crab Shack is on the heavily trafficked beach boardwalk. Lance, the owner, decides to see what the other crab shacks are offering. He discovers that most of the competition is within a mile of his location, have better advertising and signage than his shack, and offer smaller meals for lower prices. With this new competitive intelligence, what is Lance's best marketing choice?

update his signage and highlight his bigger meals as a better deal

The Banana Boat sunscreen company offers children's sunscreen and a variety of sunscreens at varying intensities. For its marketing mix it uses a multisegment marketing strategy, which means that it:

uses separate offerings for each different segment it targets

After looking through the Container Store catalogue you discover the perfect components you didn't know you needed to make your small living room closet more useful for you. Marketing just highlighted a benefit for:

you the consumer