MKGT300 - Ch.1 Quiz

Apart from retaining good customers, most marketers want to constantly increase their "share of customer." What does this mean in marketing terms? Answers: Marketers want to turn satisfied customers into delighted customers. Marketers want to continuously increase their customers' levels of satisfaction. Marketers want to increase their market share. Marketers want to increase the share they get of the customer's purchasing in their product categories. Marketers want to diversify their operations and customize their products to cater to the entire market.

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

A gym equipment manufacturer encourages customers to become members of the firm's Web site. Membership provides customers with exercise tips as well as discounts on gym equipment and workout apparel. This is an example of ________. Answers: a frequency marketing program a basic customer relationship consumer-generated marketing a club marketing program the selling concept

a club marketing program

A seller pursues a full partnership with what kind of customers? Answers: a few low-margin customers many low-margin customers many high-margin customers many customers regardless of profitability a few high-margin customers

a few high-margin customers

A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of ________. Answers: a basic relationship a frequency marketing program partner relationship management a club marketing program sustainable marketing

a frequency marketing program

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 the firm's success? Answers: true friends strangers butterflies shooting stars barnacles

butterflies- potentially profitable but not loyal strangers- low potential profitability and little projected loyalty true friends- both profitable and loyal barnacles- highly loyal but not very profitable

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 ________. Answers: attracting "butterflies" capturing customer lifetime value selling new products converting "barnacles" to "strangers" managing partner relationships

capturing customer lifetime value

According to management guru Peter Drucker, "The aim of marketing is to ________." Answers: sell products emphasize customer wants and not customer needs maximize profits of the company fulfill unrealistic customer expectations make selling unnecessary

make selling unnecessary

Consumer research, product development, communication, distribution, pricing, and service are all core ________ activities. Answers: production marketing outsourcing logistics positioning

marketing

Amazon Echo's Alexa is an example of Answers: desktop computing digital learning the worldwide web data analytics artificial intelligence

artificial intelligence

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? Answers: barnacles true friends strangers cash cows butterflies

barnacles- highly loyal but not very profitable strangers- low potential profitability and little projected loyalty butterflies- potentially profitable but not loyal true friends- both profitable and loyal

According to the five-step model of the marketing process, which of the following is the final step in creating value for customers? Answers: capturing value from customers to create profit and customer equity understanding the marketplace and customer needs constructing an integrated marketing program that delivers superior value building profitable relationships and creating customer delight designing a customer-driven marketing strategy

capturing value from customers to create profit and customer equity 1. understanding the marketplace and customer needs 2. designing a customer-driven marketing strategy 3. constructing an integrated marketing program that delivers superior value 4. engage customers, build profitable relationships, and create customer delight 5. capturing value from customers to create profit and customer equity

A marketer wants to increase its "share of customer." It can do this by offering a greater variety to customers, or by ________. Answers: increasing discounts and coupons sending samples directly to customers decreasing prices creating programs to cross-sell and up-sell to market more products and service to existing customers introducing customers to "brand evangelists"

creating programs to cross-sell and up-sell to market more products and service to existing customers

"Losing a customer once means losing the entire stream of possible purchases that the customer would make over an extended period of patronage." This statement specifically indicates loss in terms of ________. Answers: partner relationship management marketing offerings customer lifetime value value proposition customer-perceived value

customer lifetime value

Building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is called ________. Answers: customer-perceived value customer relationship management partner relationship management customer equity customer lifetime value

customer relationship management

A firm that uses the selling concept takes a(n) ________ approach. Answers: outside-in inside-out customer-driven societal marketing niche marketing

inside-out

At a local farmers' market, Molly Malone sells mussels while shouting to passersby, "Fresh seafood, get your fresh seafood here!" What kind of perspective is Molly taking? Answers: customer-driven outside-in niche marketing customer-driving inside-out

inside-out

A seller pursues a basic relationship with what kind of customers? Answers: a few low-margin customers many customers regardless of profitability a few high-margin customers many high-margin customers many low-margin customers

many low-margin customers

A(n) ________ is the set of actual and potential buyers of a product or service. Answers: control group market subsidiary audience focus group

market

A ________ is some combination of products, services, information, or experiences provided to consumers to satisfy a need or want. Answers: market segment value proposition market offering market mix brand positioning

market offerings- some combination of products, services, information, or experiences offered to a market to satisfy a need or want market segments- group of consumers who respond in a similar way to a given set of marketing efforts value propositions- full positioning of a brand-full mix of benefits on which it is positioned marketing mixes- set of tactical marketing tools-product, price, place, and promotion-that the firm blends to produce the response it wants in the target market

Dividing the market into various groups of customers that a company may serve is called ________. Answers: market segmentation differentiation target marketing customization positioning

market segmentation

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. These three groups are examples of ________. Answers: value propositions marketing mixes market offerings marketing intermediaries market segments

market segments- group of consumers who respond in a similar way to a given set of marketing efforts value propositions- full positioning of a brand-full mix of benefits on which it is positioned marketing mixes- set of tactical marketing tools-product, price, place, and promotion-that the firm blends to produce the response it wants in the target market market offerings- some combination of products, services, information, or experiences offered to a market to satisfy a need or want marketing intermediaries- firms that help the company to promote, sell, and distribute its goods to final buyers

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 proposition for Bead Beautiful? Answers: mature designs ease of availability variety of colors in products quality of materials price

mature designs

A church targeting different demographic groups to increase attendance is an example of ________. Answers: not-for-profit marketing evangelism marketing affiliate marketing affinity marketing societal marketing

not-for-profit marketing

Customer satisfaction is a goal that companies strive to earn. Companies can achieve customer delight by ________. Answers: regularly putting products on sale using celebrities to advertise the products offering promotional deals such as "buy one and get one free" creating contests with exciting prizes promising only what they can deliver and then delivering more than they promise

promising only what they can deliver and then delivering more than they promise

As part of the rapid globalization of today's economy, companies are selling more domestically produced goods in international markets and ________. Answers: downplaying concerns for social responsibility reducing competition within their industry purchasing more supplies abroad taking a local view of their industry competing solely in traditional marketplaces

purchasing more supplies abroad

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 ________. Answers: societal marketing cause marketing ambush marketing target marketing social marketing

target marketing

Customer equity refers to ________. Answers: a firm's market share the share a firm earns of a customer's purchasing in their product categories a firm's current sales the amount a customer is spending each year on certain products the total combined customer lifetime value of all of the company's current and potential customers

the total combined customer lifetime value of all of the company's current and potential customers

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? Answers: cash cows butterflies barnacles true friends strangers

true friends- both profitable and loyal strangers- low potential profitability and little projected loyalty butterflies- potentially profitable but not loyal barnacles- highly loyal but not very profitable

According to the five-step model of the marketing process, a company should ________ before designing a customer-driven marketing strategy. Answers: construct an integrated marketing program build profitable relationships with customers determine how to deliver superior value to customers use customer relationship management to create full partnerships with key customers understand the marketplace and customer needs and wants

understanding the marketplace and customer needs 1. understanding the marketplace and customer needs 2. designing a customer-driven marketing strategy 3. constructing an integrated marketing program that delivers superior value 4. engage customers, build profitable relationships, and create customer delight 5. capturing value from customers to create profit and customer equity

Digital technology allows companies to reach out to customers in numerous ways. Which of the following is NOT the purpose of a company reaching out using digital and social media? Answers: solving consumer problems working with suppliers building customer relationships providing product information helping customers shop

working with suppliers