CHAPTER 1
According to the 5-step model of the marketing process, what is the final step in creating value for customers?
Capturing value from customers to create profit and customer equity.
What reflects the marketing concept?
Consider customer focus and value as the paths to sales and profits.
A marketer wants to increase its "share of customers." it can do this by offering a greater variety to customers, or by ______________.
Creating programs to cross-sell and up-sell more products and service to existing customers
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 wiled greater power now with many platforms for airing and sharing their brand views with other customers
Customer-managed relationships
Greg Williams now has the buying power to purchase the desktop computer that he has wanted for the last 6 months. Greg's want now has become a(n)
Demand
________ is the act of obtaining a desired object from someone by offering something in return
Exchange
When marketers set low expectations for market offering, they run the risk of
Failing to attract enough customers
What is the aim of the product concept?
Focus on making continuous product improvements
What is true of the production concept?
It leads to companies focusing too narrowly on their own operations (market myopia)
What is true about creating customer loyalty and retention?
Losing a customer means losing the entire stream of purchases that the customer would make over a lifetime of patronage.
Which strategy would a company most likely use to increase customer satisfaction?
Lowering prices
Dividing the market into various groups of customers that a company may serve is called
Market segmentation
What is most likely the result of a marketing strategy that attempts to serve all potential customers?
Not all customers will be satisfied
It is most accurate to say that when customers purchase products they act on _______ as they judge values and cost
Perceived value
Railroads were once operated based on the thinking that users wanted trains that would offer the most in quality, performance, and innovative features. The railroad managing companies overlooked the fact that there could be other modes of transportation. This reflects the ______ concept.
Product
Which marketing management concept is most likely to lead to market myopia?
Product concept
Customer satisfaction is a goal that companies strive to earn. Companies can achieve customer delight by
Promoting only what they can deliver and then delivering more than they promise
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-foods overlook the _______ philosophy.
Societal marketing concept
Which marketing orientation holds that achieving organizational goals depends on knowing the needs and wants of target markets delivering the desired satisfactions better than competitors do?
The marketing concept
Which uses a customer centered "sense and respond" philosophy?
The marketing concept
Needs don't include
The newest iphone
Jolene's firm markets preplanning services for a mortician. She finds that most of her target market avoids discussing future funeral needs. She convinces people to invest in the firm's services through her large-scale promotional efforts. Jolene's firm most likely practices the ___________.
The selling concept
Which market orientation calls for aggressive promotional efforts and focuses on creating transactions rather than long-term customer relationships?
The selling concept
Customer equity refers to ________
The total combined customer lifetime value of all the company's current and potential customers
What refers to a set of benefits that a company promises to deliver to customers to satisfy their needs?
Value Proposition
What is a question answered by a company's value proposition?
Why should I buy your brand rather than a competitor's?
A gym equipment manufacturer encourages customers to become members of the firm's website. Membership provides customers with exercise tips as well as discounts on gym equipment and workout apparel. This is an example of
a club marketing program
a seller pursues a full partnership with what kind of customers?
a few high-margin customers
A room upgrade offered by a hotel guest who often stays in the hotel is an example of
a frequency marketing program
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
In the context of customer relationship groups, a group potentially profitable and short-term is referred to as
butterflies
At Gina's retail stores, the posted policy reads, "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. Gina and her staff strive to make every customer a repeat customer. It is most accurate to say that instead of focusing on each individual transaction, Gina and her staff put a priority on ________.
capturing customer lifetime value
Kao Corp, a deodorant manufacturer, invited teenage girls to make an ad that would encourage other girls to buy the product. This program is an example of
consumer-generated marketing
Which of the following terms refers 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
_______ marketing is practiced by 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.
customer-driving
Elisandra, a marketing manager at a regional chain restaurant, has decided to organize a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization's home page. This is an example of ________.
customer-generated marketing
FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with other costs of using the service, they are acting upon __________.
customer-perceived value
In what situation has a company most actively embraced customer-managed relationships?
iRobot invited enthusiastic Roomba owners to develop and share their own uses for the company's robotic vacuum cleaner.
A firm that uses the selling concept takes a(n)_____ approach.
inside-out
A seller pursues a basic relationship with what kind of customers?
many low-margin customers
An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. The three groups are examples of
market segments
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
Bead Beautiful is a jewelry brand targeted at preteen girls. What needs do NOT fit with this audience as the marketing team develops a value prop? -Variety of colors - Mature designs - Quality of materials - Price - Ease of availability
mature designs
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
When the demand for athletic shoes produced by Nike and endorsed by MichaelJordan is high, Nike limits how many pairs of shoes are manufactured. This action maintains strong demand by limiting supply. The decision contradicts the philosophy of which marketing concept?
production concept
The portion of the customer's purchasing that a company gets in its product categories is known as
share of customer
A company should not always target all possible customers. Which kind of customer is not the most valuable to a company, but, can over time, contribute to a firm's success?
strangers
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
Cathy's clothes is a small yet successful retail chain that sells women's clothing and accessories with a focus on buyers who have relatively modest means. For this specific purpose, the firm has rolled out several marketing initiatives aimed at women of a specific demographic. This is an example of _____
target marketing
Customers can be classified into four relationship groups based on their profitability and projected loyalty. Which customer type is associated with high profitability and long0term loyalty?
true friends
The selling concept is typically practiced
with goods that buyers normally do not think of buying (unsought)
