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Which of the following reflects the marketing concept philosophy?

"We don't have a marketing department, we have a customer department."

Which customer question is answered by a company's value proposition?

"Why should I buy your brand rather than a competitor's?"

________ is the set of actual and potential buyers of a product.

A market

________ is the set of benefits a company promises to deliver to its consumers to satisfy their needs.

A value proposition

Which of the following is an example of consumer-generated marketing? A) Toyota's presence in online communities B) Nike's Nike Plus running Web site C) BMW's use of brand-related consumer videos posted on video-sharing Web sites D) Neiman Marcus's InCircle Rewards program for its best customers E) The Lexus Covenant aimed at creating customer delight

C) BMW's use of brand-related consumer videos posted on video-sharing Web sites

Which of the following statements about the Internet is most accurate? A) Companies are hesitant to use the Internet to build closer relationships with customers and marketing partners alike. B) The Internet is still in its infancy with few consumers buying products and/or services online. C) The Internet allows anytime, anywhere connections to information, entertainment, and communication. D) Consumer e-commerce looks promising, but business-to-business e-commerce is declining. E) Web 2.0 involved a less balanced approach to online marketing than the original dot-com boom did.

C) The Internet allows anytime, anywhere connections to information, entertainment, and communication.

Shania works hard to foster an emotional relationship between her Internet customers and the beauty products and services that she and her staff sell. By promoting a company culture that values exceptional value and service, Shania aims to create ________ by going beyond the expected.

Customer delight

________ is the total combined customer lifetime values of all the company's current and potential customers.

Customer equity

Which of the following phrases reflects the marketing concept? A) The supplier is king. B) Marketing should be viewed as hunting and not gardening. C) This is what I make, won't you please buy it? D) This is what I want, won't you please make it? E) none of the above

D) This is what I want, won't you please make it?

Customer-driven marketing is most likely to work well when ________ and when customers ________. A) a clear need exists; are difficult to identify B) customers do not know what they want; have limited budgets C) there are few competitors; are concerned about their long-run welfare D) a clear need exists; know what they want E) a want exists; cannot afford it

D) a clear need exists; know what they want

Which of the following is a true statement about the economic crisis that began in 2008? A) The economic crisis caused a short-term change in consumers' spending habits. B) The average home value increased after the stock market plunge. C) Decreasing energy prices provided consumers with unexpected savings. D) Disposable incomes decreased. E) Consumers quickly regained confidence in the economy.

D) disposable incomes decreased

Which of the following has NOT contributed to the deeper, more interactive nature of today's customer relationships? A) e-mail B) Web sites C) online social networks D) traditional advertising E) video sharing

D) traditional advertising

When backed up by buying power, wants become _________.

Demands

Which of the following is an example of a type of market offering? A) persons B) ideas C) information D) experiences E) all of the above

E

Which of the following best explains why consumers have greater power and control in today's marketplace? A) The production concept and competition have lowered prices. B) Implementation of the product concept has resulted in continually improving products. C) Customer-driving marketing creates products and services that meet customers' future needs. D) More companies are implementing societal marketing and weighing long-run costs and benefits. E) Through new communication technologies, customers have more access to information and more methods of sharing their opinions with other customers.

E) Through new communication technologies, customers have more access to information and more methods of sharing their opinions with other customers.

In today's world, marketing should be done by ________ employees in an organization. A) marketing B) marketing, sales, and customer-support C) sales and technology D) management E) all

E) all

To capture the full essence of customer relationship management, which of the following should a marketing manager take into consideration? A) owning customers for life B) capturing a customer's lifetime value C) building overall customer equity D) creating a sense of community surrounding a brand E) all of the above

E) all of the above

You have just taken a new position in an organization and you're learning about the job functions of your new colleagues. You observe that your marketing manager is heavily involved in the process of building and maintaining profitable customer relationships. Your marketing manager frequently speaks about the need to deliver superior customer value and satisfaction. Your manager is concerned with which one of the following? A) database management B) Web site hits C) the societal marketing concept D) not-for-profit marketing E) customer relationship management

E) customer relationship management

________ is the act of obtaining a desired object from someone by offering something in return.

Exchange

A customer-centered organization seeks to maximize customer satisfaction.

False

Amy's law office has developed a new format and wording for wills. The staff believes they offer the most in quality, performance, and innovative features. Her law office is practicing the production concept.

False

Customer-perceived value depends on the product's perceived performance relative to a buyer's expectations.

False

Human needs are shaped by culture and individual personality.

False

In its broadest sense, customer relationship management (CRM) is a customer data management activity.

False

Market offerings are limited to physical products.

False

Market segmentation is the process of seeking fewer customers and reduced demand for profit maximization.

False

Only sellers of products, services, and ideas practice marketing, whereas buyers do not.

False

Selling is managing profitable customer relationships.

False

Unlike Web 1.0 and 2.0, Web 3.0 is about connecting people with information.

False

When backed by buying power, needs become wants.

False

When sellers focus on existing needs and lose sight of underlying customer wants, they suffer from marketing myopia.

False

Which of the following is the most likely result of a marketing strategy that attempts to serve all customers?

Few customers will be satisfied

The ________ steps of the five-step marketing process are about understanding customers, creating customer value, and building strong customer relationships.

First four

Frequent flyer programs offered by airlines are an example of a ________.

Frequency marketing program

According to the authors of your text, the ________ concept is a "sense and respond" philosophy rather than a "make and sell" philosophy.

Marketing

Consumer research, product development, communication, distribution, pricing, and service are all most accurately described as core ________ activities.

Marketing

________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others.

Marketing

The art and science of choosing target markets and building profitable relationships with them is called ________.

Marketing management

________ refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs.

Marketing myopia

Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain?

Production concept

In addition to attracting new customers and creating transactions, the goal of marketing is to ________ customers and grow the company's business.

Retain

The ________ concept calls for aggressive selling and focuses on generating transactions to obtain profitable sales.

Selling

All of the following are accurate descriptions of modern marketing today, EXCEPT which one?

Selling and advertising are synonymous with marketing

Family Dollar stores profitably focusing on buyers who have relatively modest means is an example of ________.

Target marketing

Selecting which segments of a population of customers to serve is called ________.

Target marketing

Large-scale marketing approaches that foster two-way customer relationships are made possible by new communication technologies.

True

Market offerings can include products, services, information, or experiences offered to a market to satisfy a need or want.

True

Marketers should look beyond the attributes of the products and services they sell to also create brand experiences for consumers.

True

The difference between human needs and wants is that needs are not influenced by marketers.

True

The production concept and product concept are orientations that can lead to marketing myopia.

True

The selling concept holds that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort.

True

The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.

True

Two important questions underlying marketing strategy are "Who is our target market?" and "What's our value proposition?"

True

According to the simple five-step model of the marketing process, a company needs to ________ before designing a customer-driven marketing strategy.

Understand the marketplace and customer needs and wants

_______ are human needs as shaped by individual personality and culture.

Wants

Which version of the Internet has introduced small, fast, and customizable applications that can be accessed through multifunction mobile devices?

Web 3.0

Greater consumer control means that companies must rely more on marketing by ________ than by ________.

attraction; intrusion

) Afia, a team leader in charge of customer relationship management, is planning strategies for improving the profitability of her firm's least profitable but loyal customers. She is also examining methods for "firing" customers in this group who cannot be made profitable. To which of the following customer relationship groups do these customers belong?

barnacles

You are an assistant marketing director for a firm in a market with many low-margin customers. What type of relationship would it be most profitable for you to develop with these customers?

basic relationships

A highly profitable, short-term customer is a ________.

butterfly

At Gina's Nails, the posted policy is "Without our customers, we don't exist." Gina and her staff aim to delight each customer, and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied. Instead of focusing on each individual transaction, Gina and her staff put a priority on ________.

capturing customer lifetime value

The final step in the marketing process is ________.

capturing value from customers

The Niketown running club that organizes twice weekly evening runs for Nike customers is an example of a ________.

club marketing program

The three areas of consideration that should be balanced in the societal marketing concept are consumer wants, society's interests, and ________.

company's profits

The first four steps of the marketing process focus on ________.

creating value for customers

Which of the following is the term for customers who make repeat purchases and tell others about their positive experiences with a product or service?

customer evangelists

Tommy Gray attempts to deliver customer satisfaction every day in his Audio Expressions installation business. The key to this goal is to match the customer-perceived performance of his product with ________.

customer expectations

Stew Leonard, owner/operator of supermarkets, reacts adversely to losing a single customer sale. He feels that this amounts to losing the entire stream of future purchases that a customer is likely to make if he or she remains in the area. This is an illustration of ________.

customer lifetime value

It is most accurate to say that a customer will buy from the company that offers the highest ________.

customer perceived value

Members of the sales team at Dekko International visit only prospective customers who purchase a minimum of $50,000 of insulated wire per year. Dekko is using ________.

customer profitability analysis

Building and maintaining profitable value-laden relationships with customers of a company is called ________.

customer relationship management

Of the following, which is the most important concept of modern marketing?

customer relationship management

Which of the following is most essential to any definition of marketing?

customer relationships

Sally purchased Brand X lotion. In comparing her perception of how the lotion performed to her expectations for Brand X lotion, Sally was measuring her level of ________.

customer satisfaction

Marie Ortiz enjoys her work at Futuristic Designs, Inc. Her organization understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future wants and demands. Marie's firm practices ________ marketing.

customer-driving

When customers don't know what they want or don't even know what's possible, the most effective strategy is ________ marketing.

customer-driving

Elisandra, a marketing manager at a regional chain restaurant, has decided to create a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization's home page. Elisandra's plan is an example of ________.

customer-generated marketing

The marketing world is embracing ________ because consumers can wield greater power and control in the marketplace through communication technologies.

customer-managed relationships

FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these aforementioned benefits against the monetary and psychic costs of using the service, they are acting upon ________.

customer-perceived value

Which of the following is determined by a customer's personal evaluation of the benefits and costs of a market offering relative to those of competing offers?

customer-perceived value

Greg Williams now has the buying power to purchase the computer system he has wanted for the last six months. Greg's want now has become a ________.

demand

The social-responsibility and environmental movements are expected to ________ in the future.

demand more from companies

The product concept says that a company should __________.

devote its energy to making continuous product improvements

When marketers set low expectations for a market offering, they are most likely to run the risk of which of the following?

failing to attract enough customers

Consumer-generated marketing, a relatively new phenomenon, has so far had little impact as a marketing force.

false

It is cheaper for a company to acquire new customers than to maintain relationships with current customers.

false

Marketing management is interested in serving all customers in every way to remain competitive in today's markets.

false

The major difference between customer-driving marketing and customer-driven marketing is that the customer-driving marketing considers only existing needs.

false

It is most accurate to say that today almost every company, small and large, is affected in some way by which of the following?

global competition

The ultimate aim of customer relationship management is to produce ________.

high customer equity

A firm that uses the selling concept takes a(n) ________ approach.

inside-out

The societal marketing concept seeks to establish a balance between consumer short-run wants and consumer ________.

long-run welfare

Which of the following strategies would a company most likely use to increase customer satisfaction?

lowering prices

According to management guru Peter Drucker, "The aim of marketing is to ________."

make selling unnecessary

The ________ concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do.

marketing

The set of marketing tools a firm uses to implement its marketing strategy is called the ________.

marketing mix

Pete Sanchez, a recent graduate of business school, has a different approach than his marketing manager, who believes in keeping customers at arm's length and using mass media advertising. Pete knows that today few successful firms still practice this type of true ________ and are instead turning to selective relationship management

mass marketing

When the economy tightens, customer loyalty and customer retention become ________ for marketers.

more important

A church targeting different demographic groups to increase attendance is an example of ________.

not-for-profit marketing

Which of the following is currently the fastest-growing form of marketing?

online marketing

Partner relationship management focuses on working with ________ to bring more value to customers.

partners inside and outside of the company

"Build a better mousetrap and the world will beat a path to your door" reflects the ________ concept.

product

Which of the following marketing management concepts is most closely aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer high quality, performance, and innovative features?

product

Which of the following marketing management concepts is most likely to lead to marketing myopia?

product

Railroads were once operated based on the thinking that users wanted trains rather than transportation, overlooking the challenge of other modes of transportation. This reflects the ________.

product concept

Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This reflects the ________.

production concept

As part of the rapid globalization of today's economy, companies are selling more locally produced goods in international markets and ________.

purchasing more supplies abroad

Jolene's firm believes that consumers will not buy enough of its products unless the firm undertakes a large-scale selling and promotion effort. Jolene's firm is practicing the ________.

selling concept

Amazon.com leverages relationships with its 35 million customers by offering them music, videos, gifts, toys, consumer electronics, and office products, among other product items. Based on previous purchase history, the company recommends related CDs, books, or videos that might be of interest. This helps Amazon.com capture a greater ________.

share of customer

When an airline goes after a "share of travel" from its customers, it is attempting to increase ________.

share of customer

Your state's department of education has budgeted a significant amount of money for a radio, print, television, and online advertising campaign emphasizing the long-term benefits, both educational and professional, of reading every day. This is an example of a(n) ________ campaign.

social marketing

Ben & Jerry's challenges all stakeholders, including employees, top management, and even ice cream scoopers in their stores, to consider individual and community welfare in their day-to-day decisions. Actions such as this by companies seizing the opportunity to do well by doing good reflects ________.

social responsibility

The ________ concept holds that firms must strive to deliver value to customers in a way that maintains or improves both the consumer's and society's well being.

societal marketing

Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they contribute to a national obesity epidemic and environmental problems. These fast-food restaurants overlook the ________ philosophy.

societal marketing concept

Which of the following has been the most common consumer response to the economic downturn that began in 2008?

spending less and choosing products more carefully

Suzie Chan strengthens her company's connections by treating suppliers of raw materials, vendors, and distributors as partners in delivering customer value. What type of management is she practicing?

supply chain

Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials and components to final buyers who purchase final products.

supply chain management

Customer-perceived value is defined as the customer's evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

true

Delivering superior customer value and customer satisfaction are the two keys to building lasting customer relationships.

true

Every functional area of an organization, not only a marketing department, can and should interact with customers.

true

New communication technologies create challenges as well as advantages for marketers.

true

Product, price, place, and promotion make up the elements of a firm's marketing mix.

true

The societal marketing concept calls on marketers to balance consumer wants and desires, company profits, and society's interest.

true

The authors of your text classify customers into four relationship groups, according to the customers' profitability and projected loyalty. ________ are the customers with the highest profit potential and strong loyalty.

true friends

During the economic downturn, marketers have been emphasizing the ________ of their products more than ever.

value