Chapter 3 Quiz

Which of the following statements about a company's mission and goals is true?

A firm should define its mission in terms of the broad human needs it attempts to satisfy

A market opportunity is viable and attractive if:

All of the above conditions are met The firm has the marketing communications skills needed to reach that market There are enough potential customers in that market for the needed product so that the total potential sales volume will be substantial The opportunity is consistent with the mission and objectives of the company The firm has the financial and human resources needed to reach that market

Relationships that result in strategic partnerships go through four stages including:

Awareness, exploration, expansion and commitment

Bianca sells a wide variety of products. Once she has established a relationship with a customer, she often tries to sell whatever products she thinks the customer might be interested in. Bianca practices

Cross-selling

Marvin almost always tells customers it will be three days before he can service their boat, knowing he usually will be able to come in one or two days. He uses this strategy to create

Customer delight

Alex studies the projected financial returns from his customers including the money, resources, time and information involved in managing each account. Based on this analysis he may decide to

Fire some customers

After developing a mission statement for his company, Tyler knows ________ and ______________, representing specific targets the firm wishes to meet will be addressed.

Goals; objectives

The most appropriate way for a plant nursery owner to define her business's mission is in terms of:

How it will improve the quality of life of its customers

Which of the following is not one of the advantages of CRM?

Increases advertising costs

Which of the following represents a continuum from low to high trust?

Market exchange, functional relationship, strategic partnership

As part of a sales organization, you are responsible for alerting the company to changes in external environment. Which of the following would most likely be your responsibility?

Market sensing

Personal selling is part of a firm's

Marketing Communication Mix

A Cleveland, Ohio, men's clothing manufacturer has a low industry market share, but it has a high market share with its target market, which is men shorter than 5'8" tall. Which of Michael Porter's competitive strategy is this manufacturer using?

Niche

According to Miles and Snow, a firm using a defender strategy:

Offers a limited stable product line to a predictable market

When a firm uses a push strategy, it:

Offers direct inducements to potential wholesalers and retailers to encourage them to carry a product

Which promotional tool should be used if a company's target market consists of relatively few customers who are geographically clustered together and who are likely to place relatively large orders?

Personal selling

Evanscon manufactures refrigerator units that are sold to retailers that handle perishable products. It is a pioneer in product and market development. It offers a frequently changing product line and has been known to sacrifice short-term profits to gain a long-term stronghold in their market. According to Miles and Snow's Typology, Evanscon uses which of the following competitive strategies?

Prospector

Which of the following statements about the generation and selection of organizational strategies is true?

Sometimes many different strategies may achieve the same objective

The increasing use of customer relationship management is partly attributable to:

Technology

Which of the following is NOT an advantage inherent in the use of personal selling as the primary marketing communications tool?

The large number of customers that can be reached

Which of the following is not a part of the process cycle for CRM?

Touchpoint targeting

Call centers, sales reps, distributors, Web and e-mail are all examples of possible

Touchpoints

Your school is implementing a new CRM initiative. Which of the following questions should they ask?

Who are we?

Some key reasons for CRM system flops in sales organizations include:

All of the above Lack of focus Complicated procedures Minimal buy-in Business units are silos

Low cost, differentiation and niche are examples of __________ pursued by business units across a variety of industries.

Generic strategies

Archway furniture is projecting their expected financial returns from different groups of customers. Archway is estimating the

Lifetime value of customers

A company that wanted to measure its customers' levels of satisfaction should:

Look at customer satisfaction measures, annual retention rates as well as the frequency and size of customer purchases to determine customer satisfaction

The evolution of customer relationship marketing has progressed from:

Mass, target, customer, to one-to-one marketing

Justine is frustrated with her company's inability to link production, customer service and other internal processes with her customers. Justine believes her company's __________ are inadequate

Spanning processes

In return for the endorsement of its products, FTD Florists gives the AARP (Association of American Retired People) a reduced rate on all flower deliveries. FTD also gives the AARP back a percentage of sales it makes as a result of using the AARP name in its ads. AARP members have provided information to FTD about the types of flowers they like to give and receive and on the types of occasions when they believe flowers should be sent. This is an example of a ______ between a buyer and a seller.

Strategic partnership