Deck 38: Building a Customer-Focused Business

Question 1

McDonald's ensures that a customer receives the same fast, friendly, accurate, clean, and reliable service at every McDonald's restaurant. This demonstrates that McDonald's is a company that is

A) focused on its customers.
B) focused on its products.
C) focused on nutrition.
D) focused on the competition.
E) focused on sales.

Answer 1

A

Question 2

The concept that is redefining how success is measured in an organization is

A) market segmentation.
B) customer focus.
C) mass marketing.
D) online marketing.
E) supply chain management.

Answer 2

B

Question 3

An example of one of the performance metrics at a customer-centric company is

A) number of new products.
B) profitability per product.
C) market share by product.
D) share of wallet of customers.
E) market share by sub-brand.

Answer 3

D

Question 4

The type of customer knowledge captured by a customer-centric firm is based on

A) competitive activity.
B) response to advertising messages.
C) brand equity.
D) what the company knows about a customer.
E) what a customer thinks about the company.

Question 5

McDonald's was the first organization in its industry to offer breakfast. By offering the customer a range of meal options, it wants to

A) introduce new products.
B) access new channels.
C) capture an increasing portion of the customer's wallet.
D) increase profitability per product.
E) increase market share by product.

Question 6

Throughout a customer-focused organization, there is

A) a commitment to research and development.
B) a transaction-oriented philosophy.
C) an emphasis on new product development.
D) a strong knowledge of market and competitive trends.
E) a clear and shared understanding of the customer.

Question 7

In a customer-centric company, customer relations is the responsibility of

A) the marketing department.
B) the sales department.
C) the customer service department.
D) the call centre.
E) all employees.

Question 8

The CEO of "Brand X," which manufactures a new high-performance long-distance running shoe, instructs the marketing and sales departments to sell its product to as many customers as possible. This company is

A) focused on the customer.
B) focused on the product.
C) focused on technology.
D) focused on marketing communications.
E) focused on its portfolio of customers.

Question 9

In a customer-focused business, senior management is committed to

A) marketing research.
B) making all decisions based around the customer.
C) research and development.
D) public relations.
E) its portfolio of products.

Question 10

GE Healthcare tried to differentiate a commodity product by offering consulting services; however, it failed to recognize that when different parts of the company do not focus on the customer,

A) the sales cycle is shortened.
B) the pocket price is higher.
C) increased marketing communications is required.
D) it over-serves the customer.
E) they do not have the same goals.

Question 11

The Healthy Tasty Company lost a customer for life because the marketing function failed to

A) test its new soup with focus groups.
B) anticipate its competitor's introduction of a me-too product.
C) train all company employees to focus on the customer.
D) allocate sufficient funds for advertising.
E) include media other than magazines in its product launch.

Question 12

The opposite of customer centric is

A) product centric.
B) technology centric.
C) marketing centric.
D) sales centric.
E) research centric.

Question 13

Marketers that devote at least 50% of their time to advanced, customer-centric marketing processes and capabilities will achieve marketing return on investment (ROI) that is at least ____ greater than that of their peers, who lack such emphasis.

A) 10%
B) 20%
C) 30%
D) 40%
E) 50%

Question 14

Subway became known as the fast-food restaurant that offered healthy choices for customers who wanted to maintain a healthy lifestyle or lose weight. Subway's product positioning is typical of a company that is

A) focused on its products.
B) focused on nutritional research.
C) focused on customer needs.
D) focused on the competition.
E) focused on sales execution.

Question 15

A customer-centric approach

A) emphasizes selling products to whoever will buy.
B) is transaction oriented.
C) is internally focused.
D) is relationship oriented.
E) highlights product features and benefits in its positioning.

Question 16

The organizational focus of a product-centric company is

A) external.
B) internal.
C) relationship oriented.
D) based on customer satisfaction.
E) on its portfolio of customers.

Question 17

A business orientation that is focused on the number of transactions and signed contracts, regardless of whether the deals were made with new or existing customers, is characteristic of a

A) sales consulting firm.
B) product sales team.
C) product-centric company.
D) customer-centric company.
E) factory warehouse.

Question 18

Product profit centres, product managers, and product sales teams are typical functions in the organizational structure of a

A) research and development company.
B) marketing consulting firm.
C) sales consulting firm.
D) product-centric company.
E) customer-centric company.

Question 19

McDonald's constantly tries new ventures, such as its upscale sandwich stores in New York and the United Kingdom, Pret A Manger. It is not afraid to take risks based on

A) product research.
B) potential profitability per product.
C) competitive activity.
D) customer trends.
E) market share by sub-brand.

Question 20

With a product-centric approach,

A) all decisions start with the customer.
B) building long-lasting customer relationships is key.
C) the organization focuses on new account development and market share growth.
D) the organization is externally focused.
E) product positioning highlights what the product can do to meet customer needs.

Question 21

At Arbol Industries, a factory marketing coordinator position was created at each of its 15 manufacturing plants to ensure that marketing strategies were being understood and implemented by all functions. Which of the four key building blocks does this action illustrate?

A) senior management commitment
B) organizational realignment
C) support systems
D) support processes
E) revised financial metrics

Question 22

One of the four key building blocks in building a customer-focused business is

A) CRM tools.
B) a revised product mix.
C) sales training.
D) organizational realignment.
E) marketing research.

Question 23

One of the traps to avoid on the way to becoming a customer-focused business is

A) the use of revised financial metrics.
B) organizational realignment.
C) a support system and process.
D) senior management commitment.
E) maintaining functional alignment.

Question 24

The first step Arbol Industries took in building a truly customer-focused business was to form a committee comprising the heads of all functions, called the Operating Committee. Which of the four key building blocks does this action illustrate?

A) senior management commitment
B) organizational realignment
C) support systems
D) support processes
E) revised financial metrics

Question 25

A business committed to collecting and disseminating data on the customer using customer relationship management (CRM) tools isn't

A) focused on the customer.
B) focused on research.
C) focused on the number of new products.
D) focused on transactions.
E) focused on sales and marketing.

Question 26

Customer focus is diametrically opposite to

A) service focus.
B) research focus.
C) product focus.
D) CRM focus.
E) technology focus.

Question 27

Building a customer-focused business requires

A) an investment in marketing communications.
B) an empowered product sales team.
C) senior management commitment.
D) new product development.
E) CRM tools.

Question 28

When Greystone Property Management's senior managers developed a deep understanding of customers, they demonstrated to the rest of the organization that customer focus is

A) a senior management function.
B) a research function.
C) a marketing function.
D) a key priority.
E) part of the company's future-oriented planning.

Question 29

By insisting that all engineers and designers attend at least one surgical procedure a year to watch how their customers used their products, the former CEO of Medtronic (a maker of surgical devices) demonstrated

A) a focus on new product development.
B) a focus on new account development.
C) his commitment to market share growth.
D) a field sales training initiative.
E) his commitment to customer focus.

Question 30

Without a total, organization-wide focus on the customer, the best marketing strategies will fail.

Question 31

Marketers that devote at least 50% of their time to customer-centric capabilities will achieve at least a 50% return on investment (ROI) compared to their peers, who lack such an emphasis.

Question 32

Essentially, customer focus means collecting and disseminating data on the customer using customer relationship management (CRM) tools.

Question 33

Customer focus is a management philosophy.

Question 34

Building a customer-focused business takes senior management commitment.

Question 35

Rewarding the operational team for keeping costs low and rewarding the finance team for lowering accounts receivable cycles are examples of Greystone Property Management's

A) profit-driven orientation.
B) internal focus.
C) product positioning.
D) revised financial metrics.
E) management criteria.

Question 36

Instead of focusing on cost-cutting to achieve profitability, British Airways gained a competitive edge by focusing on the

A) number of transactions.
B) introduction of a new and improved fleet.
C) development of new accounts.
D) customer's total experience.
E) marketing communications strategy.

Question 37

Arbol Industries' Operating Committee discovered that each function made decisions that optimized its own goals. It introduced new measures that rewarded functions for placing the needs of the customer first. Which of the four key building blocks does this action illustrate?

A) senior management commitment
B) organizational realignment
C) support systems
D) support processes
E) revised financial metrics

Question 38

To demonstrate the commitment to customer focus from top management, senior managers should

A) be hot and cold about customer focus.
B) say one thing, but do something else.
C) devote resources to customer focus.
D) make leadership changes.
E) change direction.

Question 39

Customer-oriented values and beliefs are uniquely the responsibility of

A) senior management.
B) marketing.
C) product sales teams.
D) product managers.
E) product profit centres.

Question 40

Customer focus is the commitment of each and every employee to make every customer interaction with the brand an opportunity to

A) make a sale.
B) capture customer data.
C) increase market share.
D) communicate product features.
E) reinforce brand values.

Question 41

One common trap that many senior managers fall into is to think of customer focus as a philosophy or strategic priority.

Question 42

Customer focus is redefining how success is measured in an organization.

Question 43

GE Healthcare's consulting services value proposition failed because it was designed through the lens of its own products, rather than with a focus on the customer.

Question 44

The fact that the customer gets the same fast, friendly, clean, and accurate service at any McDonald's, regardless of location, demonstrates that everyone within the organization is focused on the customer.

Question 45

By building a customer-focused business, Arbol Industries saw a steep increase in customer satisfaction, which had a positive impact on its financial position.

Question 46

Organizations using a customer-centric approach focus on new account development and market share growth.

Question 47

Product-centric organizations look at the number of new products, profitability per product, and market share by product/brand as their performance metrics..

Question 48

In a product-centric approach, the positioning strategy highlights product features and benefits.

Question 49

McDonald's is so focused on the customer that, at its Hamburger University outside Chicago, managers and franchisees are taught minute details such as the correct arm motion to use when salting fries.

Question 50

It is the customer who determines what a business is, what it produces, and whether it will prosper.

Question 51

The organizational structure of a customer-centric company includes customer segment centres, customer relationship managers, and customer segment sales teams.

Question 52

Customer focus is diametrically opposite to product focus.

Question 53

At Arbol Industries organizational, not functional, objectives became the glue that bound all of the company's functions together.

Question 54

The business orientation of a product-centric company is relationship oriented.

Question 55

One of the key building blocks in building a customer-focused business is the use of revised financial metrics.

Question 56

Once a business is successfully established as customer focused, it can go with the flow--past successes guarantee future successes.

Question 57

Product-centric companies manage a portfolio of customers, while customer-centric companies manage a portfolio of products.

Question 58

One reason that many companies are not customer focused is that the concept of customer focus is hard to understand.

Question 59

When different parts of the company do not focus on the customer, they do not have the same goals.

Question 60

A customer-focused philosophy is essentially the same as a product-centric philosophy.

Question 61

How did Greystone Property Management successfully realign its organization to focus on the customer?

Question 62

What revised financial metrics did Greystone Property Management put in place to ensure that the customer focus model was working smoothly and equitably?

Question 63

How did the newly privatized British Airway's focus on the "total customer experience" transform the business?

Question 64

Describe three characteristics of a business that is customer focused.

Question 65

How did Arbol Industries realign the organization to make it a customer-focused company?

Question 66

What systems and process support did Greystone Property Management develop to keep everyone focused on the customer?

Question 67

How does McDonald's demonstrate its focus on the customer throughout every aspect of its business?

Question 68

List three of the common traps to avoid in building a customer-focused business.

Question 69

Compare and contrast the philosophy, organizational structure, and focus of a product-centric business with a customer-centric business.

Question 70

List the four key building blocks of building a customer-focused business.