1.B Ch 1. Business Considerations

Maintaining a high level of customer care is critical to customer-driven brand image promotion because: A. price and placement are no longer of importance to today's service-conscious customer. B. the internet has given dissatisfied customers the means to make their dissatisfaction quickly and widely known. C. customer loyalty no longer extends from an individual product to the supplier of that product. D. brand image awareness has become independent of product satisfaction.

B. Dissatisfied customers have the means to make their dissatisfaction very well-known by the internet. Complaints posted on websites, blogs, chat rooms, or electronic bulletin boards can have a significant impact on today's internet-savvy customer and can destroy a once-strong business relationship. Module 1, Section B, Chapter 1, Topic 1

A business finds that a dissatisfied customer has created a website on which the business and its products are harshly criticized. This situation most likely represents a failure in: A. development of brand identity. B. customer communication and care. C. managing media for customer communication. D. monitoring of competitive activities.

B. Generally, customers who resort to this tactic feel that they have not been heard by the "offending" business and that attempts have not been made to address their problems. This is a failure of customer communication and customer care rather than brand identity, specific communication media, or competitors' activities. Module 1, Section B, Chapter 1, Topic 1

Which formula determines how long it will take to recoup an initial investment or break even? A. Return on investment B. Economic value added C. Discounted payback period D. Net present value

C. Discounted payback period determines how long it will take to recoup an initial investment or break even. It also discounts future cash flows to the present value before applying them. Module 1, Section B, Chapter 1, Topic 2

What is the best definition of the phrase "contact channel strategy"? A. Strategy regarding the use of tiered communications to customer segments based on their relative value B. Strategy dealing with the selection of key distributors of a service or product C. Strategy to ensure the most cost-effective and customer preferred channel is used to distribute products; and securing lifetime customers through exceptional customer care D. Strategy pursuing the most cost-effective and highest-impact media for advertising

C. In the customer-focused model, product placement is often referred to as the contact channel strategy. It is a means to increase profitability, first, by ensuring that the most cost-effective and customer-preferred channel is used to distribute products and services and, second, by securing lifetime customers through highly effective customer care and customer research activities. Module 1, Section B, Chapter 1, Topic 1

The manufacturer of a formerly popular kitchen appliance has decided to redesign and re-brand the product in an effort to reach new, younger consumers. Which of the following functions would the marketing department be primarily responsible for in this effort? A. Selecting packaging materials. B. Leading the product redesign project C. Educating retailers on the product re-branding D. Generating product performance specifications

C. One of the primary responsibilities that a marketing department has during a re-branding is educating supply chain partners, including retailers. Marketing may use product performance specifications, but that information is most likely to come from the product design and testing team. Marketing may be involved in some aspects of the product redesign project but would be unlikely to lead it. The aesthetic design may be left up to the marketing team, but they are unlikely to be responsible for selection of materials. Module 1, Section B, Chapter 1, Topic 1

A razor blade manufacturer installs RFID in their promotional displays so they can monitor when these displays leave the back rooms of retail locations and when they are discarded. This is an example of marketing control over which of the following? A. Educating supply chain partners B. Branding C. Placement D. Packaging

C. The organization achieves greater control over product placement by using automated systems to track when promotional displays are in stores, so that marketing promotional timing can be synchronized. Module 1, Section B, Chapter 1, Topic 1

Which of the following is the primary demand generation task for a surgical device manufacturer developing a new product to compete against an existing product? A. Educating potential patients B. Designing packaging C. Educating doctors D. Understanding pricing strategy

C. While all of the answers should be part of the organization's demand generation activities, educating doctors is the most critical task because this supply chain partner must understand the benefits of the new device and how to use it. The doctors are in effect the primary customer for the product and the primary salesperson, since they have a direct responsibility to advise their patients. Module 1, Section B, Chapter 1, Topic 1

An organization that has a famous brand of cookies is considering approaching a famous ice cream company to co-produce a cookies and cream flavor. How best should this be positioned? A. Their current generic cookies are very similar to our cookies. B. Their current generic cookies are not very good. C. The organization will gain access to new markets. D. The brands add value to each other.

D. Each company in this case has a strong brand, and this added value can expand the ice cream organization's market share over competitors that are offering competing cookies and cream flavors. Module 1, Section B, Chapter 1, Topic 2

In a customer-driven marketing strategy, which of the following must include getting information about the product to the consumer and giving the consumer a sense of being listened to? A. Promotion B. Product C. Price D. Placement

D. In the customer-driven model, placement includes the way in which the customer gains information about the product and post-purchase support. Module 1, Section B, Chapter 1, Topic 1

Creation of brand image is a concern related to: A. pricing. B. placement. C. product. D. promotion.

D. Pricing, product, and placement are all important strategy elements in implementing and maintaining brand image or identity, but creation of the desired image is a promotional activity. Module 1, Section B, Chapter 1, Topic 1

Which of the following statements about the elements of a marketing strategy is true? A. Placement is determined primarily by product specifications. B. Promotion in customer relationship management is distinctly different from traditional marketing strategies. C. Price is determined primarily by the cost of production. D. The starting point for product design is customer need.

D. Successful product designs begin with knowledge of the customers' needs and buying habits. Promotional activities are greatly supported and enhanced by customer relationship management abilities, but promotion decisions, goals, and activities are, for the most part, unchanged from the traditional marketing model. Price is primarily a strategic decision, as is placement. Module 1, Section B, Chapter 1, Topic 1

An organization is looking to expand sales of its product line into a new market. What process should it undertake to identify the best new market area to move into? A. Demand management B. Demand shaping C. Demand generation D. Market research

D. The purposes of market research include finding potential markets, analyzing markets, and refining product design to fit the markets. Module 1, Section B, Chapter 1, Topic 1

In the customer-driven business model, strategic pricing: A. must be continually analyzed to ensure that it is attractive to customers but still profitable to the business. B. must be consistent across targeted customer segments. C. is calculated by adding a firm's standard profit margin to the total costs of creation, sales, and overhead. D. is calculated by a sliding scale based upon customers' ability to pay.

Pricing is generally a strategic decision, based on competition, perceived value, and brand identity. Strategic pricing must be carefully and frequently analyzed to ensure that the pricing structure is attractive to customers but still profitable to the business. Module 1, Section B, Chapter 1, Topic 1