MKTG Exam 1 (Ch. 1 Practice Questions)

marketers are said to suffer from marketing myopia when they ignore underlying consumer needs and focus excessively on____

consumers existing wants

the ___ concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do

marketing

many leading business and marketing thinkers are now preaching the concept of "shared value" which recognizes that ___ needs, not just economic needs, define markets

societal

marketing process

five step mode. the first four steps, companies work to understand consumers, create customer value, and build strong customer relationships. in the final step, companies reap the rewards of creating superior customer value. by creating value for consumers, they in turn capture value from consumers in the form of sales, profits, and long term customer equity

cosmetic retailer lush knows that doing whats right benefits both customers and the company. their premium beauty products are made by hand from the freshest possible natural ingredients. this is an example of the ____ concept

societal marketing

companies that practice marketing by ____ create offerings and messages that engage consumers rather than interrupt them

attraction

abel now has the buying power to purchase the computer that he wanted to buy six months ago. abel's want has most likely become a ____

demand

when sellers pay less attention to the specific products they offer and more attention to the benefits and experiences produced by these products, they suffer from marketing myopia

false

xenon corp, releases frequent updates to improve its expensive software products. this marketing approach used by the firm is most likely based on the production concept

false

which of the following is an example of consumer-generated marketing

fun & run, a local park, promotes its services by allowing consumers to upload videos and write reviews about the park

dividing a market into several sections of customers is known as

market segmentation

____ is the art and science of choosing target markets and building profitable relationships with them

marketing management

___ refers to working closely with people inside and outside the company to jointly bring more value to customers

partner relationship management

the ultimate aim of customer relationship management is to

produce higher customer equity

the ___ concept holds that consumers will favor goods and services that offer the most in quality, performance, and innovative features

product

Henry Ford's philosophy was to perfect the model-t so that its cost could be reduced further for increased consumer affordability. this most likely reflects the ___

production concept

PC manufacturer, Lenovo, focuses on low labor costs and mass distribution to ensure the continuous availability of its products at reasonable prices. lenovo most likely follow the ____

production concept

Sally purchased a newly introduced moisturizing lotion. by attempting to find out if the lotion's perceived performance matched her expectations, sally was measuring her level of customer ____

satisfaction

____ refers to the portion of the customers' purchase that a company gets in its product categories

share of customer

various government agencies have launched campaigns to encourage energy conservation and concern for the environment as well as discourage smoking, illegal drug use, and obesity. this illustrates ___ marketing

social

Customer evangelists are those who ___

spread the word about their good experiences with a brand or product

in which of the following customer relationship groups do organizations generally avoid investing

strangers

____ are customers who show low potential profitability and little projected loyalty

stranglers

____ marketing is defined as socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs

sustainable

dollar general profitably appeals to families with more modest means. the retailer's approach is most likely referred to as

target marketing

customers who are classified as true believers

tell others about their good experiences with a company

which of the following transforms marketing strategies into real values for consumers

the four Ps of marketing

which of the following concepts is based on a customer-centered philosophy

the marketing concept

which of the following is a difference between the marketing concept and the selling concept

the marketing concept focuses on customer needs, whereas the selling concept focuses on existing products

what is marketing

the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

which of the following concepts calls for sustainable marketing

the societal marketing concept

a brands value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs

true

a market is a segment of potential consumers who share a common need or want

true

companies like coca-cola and facebook deliver customer satisfaction by spreading happiness and connecting individuals through shared experiences

true

customer-percieved value is defined as a customer evaluation of the perceived difference between all the benefits and all the costs of a market offering relative to those of competing offers

true

market offerings including entities such as people, places, information, and ideas

true

organizations that follow the societal marketing concept most likely practice socially and environmentally responsible marketing

true

product, price, place, and promotion make up the elements of a firms marketing mix

true

success at delivering customer value rests on how well a company's entire

true

the marketing concept is a customer-centered, sense-and-respond philosophy

true

the product concept holds that consumers will favor products that offer the most in quality performance, and innovative features

true

through consumer-generated marketing, consumers themselves are playing a bigger role in shaping their own brand experiences and those of others.

true

a customer who is both loyal and profitable is referred to as a

true believer

the amazon prime program strives to convert casual shoppers into loyal customers. an amazon prime customer can be classified as a ___

true believer

According to the five-step model of the marketing process, the first step in marketing is ____

understanding the marketplace and customer needs and wants

JetBlue's promise to put "you above all" by "bringing humanity back to travel" is their

value proposition

a brands ____ is the set of benefits that it promises to deliver to consumers to satisfy their needs

value proposition

____ are the form human needs take as they are shaped by culture and individual personality

wants

in which of following circumstances is an organization likely to engage in full partnerships with key consumers

when the market has few customers and high margins

cylog, a leading provider of personal computer systems, began manufacturing tablet devices after predicting a future consumer needs for portability. which of the following was most likely implemented by cylog?

customer-driven marketing

the social marketing concept holds that ____

a companys marketing decisions should focus on creating economic value in a way that also creates value for the surrounding environment

___ refers to a channel stretching from raw materials to components to final products that are carried to final buyers

a supply chain

when backed by buying power, wants become needs

false

consumers needs and wants are fulfilled through

market offerings

_____ are defined as state of felt deprivation

needs

why do companies generally divide a market into segments of customers

a company decides whom it will serve by dividing the market into segments of customers and selecting which segments it will go after. some people think of marketing management as finding as many customers as possible and increasing demand. marketing managers know that they cannot serve any customer well. hence, companies usually want to select only customers they can serve well and profitably. ultimately, marketing manager must decide which customers they want to target and on the level, timing, and nature of their demand.

Carla, a team leader in charge of customer relationship management, is planning strategies to improve the profitability of her firm's least profitable but loyal customers. She is also examining methods for "firing" customers in this group who cannot be made profitable. To which of the following customer relationship groups do these customers belong?

barnacles

procter & gamble's tide detergents does not phone or call on all of its consumer to get to know them personally. instead, tide creates engagement and relationships through brand-building advertising, websites, and social media presence. which of the following types of associations would be most profitable for the firm to develop with these customers?

basic relationships

mattel's american girl doll creates special ____ between the dolls and the girls who adore them

brand experiences

efforts to convert ____ into loyal customers are rarely successful

butterflies

a consumer who is potentially profitable but not loyal to a firms offerings is referred to as a

butterfly

stew's leonards has created what has been the "disneyland of dairy stores" complete with costumed characters, scheduled entertainment and a petting zoo. its built 30 additions onto the original store, which now serves more than 300,000 customers each week. the legion of loyal shoppers is largely a result of the stores passionate approach to customer service. instead of focusing on individual transactons, stew and his straff are putting a priority on ___

capturing customer lifetime value

the final step in the marketing process is ____

capturing value from customers

customer driven marketing is most effective when

clear needs exist and customers know what they want

Apple encourages customers to form local Apple user groups. This is an example of a___

club marketing program

for the past 9 years, pepsico doritos brand has held a Crash the Super Bowl contest in which it invites 30 second ads from consumers and runs the best ones during the game. this is an example of ___

consumer generated marketing

the selling concept holds that ____

consumers will not buy enough of a firms products unless the firm undertakes large scale persuasion

Ritz-Carlton is fervently dedicated to anticipating customers' slightest needs. Without ever asking, they seem to know when customers want a king-size bed, non-allergenic pillow, extra body gel or the blinds open upon arrival. An amazing 95 percent of departing guests report that their stay has been a truly memorable experience. This is an example of ________.

customer delight

________ is the total combined customer lifetime values of all the company's current and potential customers.

customer equity

___ companies research customers deeply to learn about their desires, gather new product ideas and test product improvements

customer-driven

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

exchange

a greater focus on underlying customer needs than on existing customer wants leads to market myopia

false

club marketing programs reward who buy frequently or in large amounts

false

customer equity is a measure of the past value of a companys customer base

false

customer relationship management focuses on retaining existing customers but not on acquiring new customers

false

in markets with few customers and high margins, sellers should try to develop basic relationships rather than full partnerships

false

market offerings are limited to physical products

false

marketing is primarily concerned with engaging customers and secondarily with profitable customer relationships

false

the more loyal a firm's profitable customers, the lower its customer equity

false

compare and contrast the concepts of needs, wants, and demands

human needs are states of felt deprivation. needs are part of the human make-up, they are not created by external forces. wants are not innate, they are shaped by culture, society, and individual personality. for example, an american needs food, wants a big mac and demands lunch at mcdonalds. wants become demands when they are backed by consumers buying power. marketers conduct extensive research to understand customers needs, wants, and demands. they then attempt to fulfill customers needs, wants ,and demands through their market offerings.

the "stop the texts. stop the wrecks" campaign co-sponsored by the ad council and the National Highway Traffic Safety Administration is an example of a marketing offering for a

idea

Imaginative Web sites, smartphone apps, and social media allow marketers to deliver messages that are direct and personal so consumers can ________.

live the brand