Chapter 1

Which of the following best describes customer relationship management? a. It involves establishing and tracking customer interactions with the company. b. It considers all customers as one large group that should be targeted with a single promotional strategy. c. It is used by sales-oriented firms to convince customers to buy their products. d. It involves targeting the average customer or everybody.

a. It involves establishing and tracking customer interactions with the company.

Which of the following best described production-oriented firms? a. They lack an understanding of the needs and wants of the marketplace. b. They determine what products their customers want and then produce them. c. They focus on their customers and have quick cycle times. d. They do not focus on their internal capabilities.

a. They lack an understanding of the needs and wants of the marketplace.

What is the primary tool used by a sales-oriented organization to achieve its corporate goals? a. sales pitches b. product design c. place (distribution) d. price

a. sales pitches

Dofasco Inc. is a highly successful steel company in Ontario. They work together with the community to decide what projects will improve the local environment. This indicates that Dofasco has which type of orientation? a. societal marketing orientation b. sales orientation c. philanthropic orientation d. product orientation

a. societal marketing orientation

What must happen in order for exchange to occur? a. Organized marketing activities must also take place. b. Each party must have something the other party considers to be valuable. c. Money or other legal tender is required. d. A profit-oriented organization must be involved in the process.

b. Each party must have something the other party considers to be valuable.

How would a firm benefit from production orientation? a. it wants to preserve society's long-term best interests b. competition is weak and demand exceeds supply c. the market demand falls short of the firm's supply d. the product it produces is not something that customers want

b. competition is weak and demand exceeds supply

Which of the following is an example of the principle of customer exchange? a. customer relationship management b. customer value c. customer satisfaction d. customer marketing

b. customer value

What do companies that have implemented a market orientation strategy recognize? a. Sales depend predominantly on an aggressive sales force. b. Price is the most important variable for customers. c. What the customer thinks he or she is buying is what is important. d. Selling and marketing are essentially the same thing.

c. What the customer thinks he or she is buying is what is important.

The statement "Marketing should be introduced at the beginning rather than the end of the production cycle and integrated into each phase of the business," is consistent with which type of orientation? a. sales b. retail c. production d. market

d. market

What is the definition of want? a. product or service that is a necessity b. product or service a consumer needs c. product or service that is built for the customer d. product or service that is not a necessity

d. product or service that is not a necessity