MGMT Final Questions

Which of the following customer questions is answered by a company's value proposition?

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

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

"firing" unprofitable customers

A financial services firm has several loyal customers who conduct business with them exclusively. However, the company has noticed that this customer group is the least profitable for the company, and in some cases, it increases their losses when engaging in business with this group. Which of the following customer groups is being referred to in this scenario?

barnacles

Hank is an assistant marketing director for a firm in a market with many low-margin customers. What type of relationship with these customers would be the most profitable for him?

basic relationships

According to the five-step model of the marketing process, which of the following is the final step in creating value for customers?

building profitable relationships and creating customer delight

In the context of customer relationship groups, a potentially profitable and short-term customer is referred to as a ________.

butterfly

The final step in the marketing process is ________.

capturing value from customers

The societal marketing concept seeks to establish a balance between ________.

consumer short-run wants and consumer long-run welfare

Which of the following refers to the total combined customer lifetime value of all of the company's current and potential customers?

customer equity

Which of the following terms refer to customers who make repeat purchases and tell others about their positive experiences with a product or service?

customer evangelists

The primary key to delivering customer satisfaction is to match product performance with ________.

customer expectations

"Losing a customer once means losing the entire stream of possible purchases that the customer would make over an extended period of patronage." The above statement specifically indicates loss in terms of ________.

customer lifetime value

Building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is called ________.

customer relationship management

Which of the following marketing strategies should marketing managers focus on to manage detailed information about individual customers and carefully manage customer touchpoints to maximize customer loyalty?

customer relationship management

An organization that understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future needs is said to practice ________ marketing.

customer-driving

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

customer-driving

The marketing world is most likely embracing ________ because consumers wield greater power nowadays with a wealth of platforms for airing and sharing their brand views with other consumers.

customer-managed relationships

When backed by buying power, wants become ________.

demands

When marketers set low expectations for a market offering, they run the risk of ________.

failing to attract enough customers

Which of the following is the aim of the product concept?

focus on making continuous product improvements

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

inside-out

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

make selling unnecessary

A(n) ________ is the set of actual and potential buyers of a product

market

A ________ is some combination of products, services, information, or experiences provided to consumers to satisfy a need or want.

market offering

Consumer research, product development, communication, distribution, pricing, and service are all core ________ activities

marketing

Greater consumer control means that companies can no longer rely on ________.

marketing by intrusion

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

marketing management

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

marketing mix

Which of the following terms refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?

marketing myopia

The marketing concept that starts with a well-defined market, focuses on customer needs, and integrates all the marketing activities that affect customers takes a(n) ________.

outside-in perspective

It is most accurate to say that when customers purchase products they act on ________ as they judge values and costs.

perceived value

The ________ concept is aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer the most in quality, performance, and innovative features.

product

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

product concept

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

production concept

Keith, a clothing store owner, offers product suggestions to customers based on their current purchases. Which of the following is Keith targeting to increase?

share of customer

The portion of the customer's purchasing that a company gets in its product categories is known as ________.

share of customer

Government agencies design ________ to encourage energy conservation and discourage smoking, excessive drinking, and drug use

social marketing campaigns

Through ________, companies today are strengthening their connections with all partners, from providers of raw materials and components to those involved in the delivery of final goods and services.

supply chain management

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

target marketing

Which of the following follows a customer-centered "sense-and-respond" philosophy rather than a product-centered "make-and-sell" philosophy?

the marketing concept

Which of the following marketing orientations holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do?

the marketing concept

Which of the following marketing orientations calls for aggressive promotional efforts and focuses on creating transactions rather than long-term customer relationships?

the selling concept

Customers can be classified into four relationship groups based on their profitability and projected loyalty. Which customer type is associated with high profitability and long-term loyalty?

true friends

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

understand the marketplace and customer needs and wants

Following the change in consumer values and consumption patterns after the Great Recession, marketers have changed their marketing strategies to emphasize the ________ of their products.

value

Which of the following refers to a set of benefits that a company promises to deliver to customers to satisfy their needs?

value proposition

The selling concept is typically practiced ________.

with goods that buyers normally do not think of buying

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

Exchange

How is marketing applied in the not-for-profit sector

Firms in the not-for-profit sector use marketing to enhance their images, to encourage donor marketing to attract memberships and donors, and to design social marketing campaigns to encourage specific causes.

) The marketing team at Bead Beautiful, a jewelry brand targeted at preteen girls, is meeting to formulate the products' value proposition. What should team members consider as they define a value proposition for Bead Beautiful?

In considering Bead Beautiful's value proposition, the marketing team should identify the benefits and values the company promises to deliver to customers to satisfy their needs. The value proposition should differentiate Bead Beautiful from other similar brands and thus help customers choose their brand over others

Explain why electronics and pharmaceuticals manufacturers use customer-driving marketing.

In such industries, consumers do not know exactly what new products are available; therefore, consumers rely on such firms to tell them what they need. Customer-driving marketing focuses on understanding customer needs even better than customers themselves do and creating products and services that meet both existing and latent needs, now and in the future

Which of the following statements is true of the selling concept?

It is typically practiced with unsought goods

Which of the following statements is true of the production concept?

It leads to companies focusing too narrowly on their own operations.

Explain how storing customer information in a database might better prepare car-maker Kia in customer relationship management (CRM).

Managing detailed information about customers may allow Kia to design new models based on customer demographics and desires for specific features. These "touch points" can be the key to long-term customer loyalty

Apart from retaining good customers, most marketers want to constantly increase their "share of customer." What does this mean in marketing terms?

Marketers want to increase the share they get of the customer's purchasing in their product categories.

________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through value creation and exchange.

Marketing

How are local retailers affected by global competition

A local retailer might have global suppliers and customers. The retailer's goods may come from abroad, or components of those goods may be produced or assembled abroad. In addition, a local retailer may also sell goods over the Internet to international customers

Alex works in the marketing department of an international company. How can Alex use modern technologies to conduct market research and better serve his company's customers?

Alex could use videoconferencing to monitor customer focus groups discussing the company's products and services in various locations. Alex could use online data services to learn more about the needs and wants of his customers, or he could create a customer database for the company to target individual customers with tailored offers.

Which of the following is NOT an accurate description of modern marketing?

Marketing emphasizes selling and advertising exclusively.

In nineteenth-century Dublin, Molly Malone sold mussels at a market while shouting to passersby, "alive-alive-oh." Was Molly taking an outside-in or inside-out perspective? Explain

Molly's approach was inside-out. Molly's approach called for heavy selling and promotion to obtain profitable sales. It focused primarily on customer conquest—getting short-term sales with little concern about who bought the mussels or why

Explain how and why marketers go beyond selling a product or service to create brand experiences.

Sellers are most effective when they focus more on the benefits and experiences produced by their products and services than on the specific products and services themselves. Smart marketers focus on creating a brand experience, incorporating several products and services for their customers. By doing so, marketers hope to increase customer satisfaction. Satisfied customers buy again and tell others about their good experiences.

What should sellers consider if they wish to avoid marketing myopia?

Sellers should consider the particular benefits and experiences desired by their customers, and not just pay attention to the specific products they offer.

You are a manufacturer of tents, sleeping bags, and outdoor cooking equipment. How might you go about creating brand experiences for your customers?

Such manufacturers should focus on the benefits enjoyed through the use of their products, such as arrangements to visit great outdoor locations, chances for customers to enjoy with their families, and relive their memories of camping trips.

________ refers to socially and environmentally responsible marketing that meets the needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.

Sustainable marketing

Explain how the Internet has transformed the way in which we conduct business today

The Internet links individuals and businesses of all types to each other. The Internet allows firms access to new marketspaces. In addition to the click-only dot-coms, traditional "brick-and-mortar" companies of the past are now "click-and-mortar" companies, with online presences aimed at attracting new customers and strengthening bonds with current customers

Which of the following statements about the Internet is most accurate?

The Internet makes it easy for consumers to view, respond to, and create marketing content

How can a marketer increase its "share of customer"?

The marketer can offer greater variety to customers; in addition, the marketer can train employees to cross-sell and up-sell in order to market more products and services to existing customers.

When demand for toys produced by Bean Toyz was at its highest, manufacturers purposefully maintained strong demand by limiting supply, which drove the price of Beanie Babies up. Compare the actions of these manufacturers to the production concept

The production concept holds that consumers favor products that are available and affordable. According to this concept, manufacturers work to improve production and distribution efficiency. Bean Toyz manufacturers purposefully limited production, making their products less available and less affordable, a technique that contradicts the philosophy of the production concept.

Company X, a manufacturer of office supplies, follows the selling concept. Explain how the firm may lose sight of customer relationships with this marketing orientation

The selling concept of Company X focuses on selling its office supplies rather than making what the market wants; such a strategy creates sales transactions but not long-term customer relationships. The company would most likely have a faulty assumption that customers who are persuaded to buy the product will like it or that they will buy the product again later even if they weren't really initially satisfied. Company X will not foster customer loyalty with this approach.

What determines whether sellers pursue basic relationships or full partnerships with customers?

The type of relationship a seller seeks to create with its customers is dependent on the number of customers and their profitability. A company with many low-margin customers develops basic relationships; a company with just a few high-margin customers invests resources to create full partnerships.

How do suppliers help companies like Walmart maintain consistently low prices

Walmart has been able to maintain its promise of providing low prices to its customers only because of its suppliers who provide merchandise at low costs. Walmart has developed and managed relationships with its suppliers

________ are human needs that are shaped by culture and individual personality.

Wants

Explain what marketers can expect from individuals in the customer relationship group classified as "butterflies."

Butterflies" are profitable but not loyal. Marketers should enjoy this type of customer "for the moment" because they soon flutter off. Marketers should create profitable and satisfying transactions with "butterflies," then cease investing in them until the next time around. Marketers can expect transactions with butterflies when conditions are optimal, but they should not expect butterflies to become loyal customers.

A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of ________.

a frequency marketing program

Which of the following statements is true about the recession that began in 2008?

Consumers brought spending more in line with their incomes.

________ is one of the best ways to increase share of customer

Cross-selling

Define customer equity and explain how a company can increase it.

Customer equity is the sum of the lifetime values of all of the company's current and potential customers. It's a measure of the future value of the company's customer base. Clearly, the more loyal the firm's profitable customers, the higher its customer equity. Customer equity may be a better measure of a firm's performance than current sales or market share. To increase customer equity, companies should work to delight their customers and establish full relationships with their most profitable customers.

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

Customer-perceived value

Which of the following is a characteristic of customer-driven marketing

Customers know what they want