Deck 5: Market Opportunities: Current and Potential

Question 1

Many companies find that it is much easier to get current customers to do more business than it is to get business from prospective customers.

Answer 1

True

Question 2

A "good" market segment is identifiable,accessible and substantial.

Answer 2

True

Question 3

The focus group is best used to generate ideas,gain insights into customer needs/constraints and identify possible market opportunities.

Answer 3

True

Question 4

Customer lifetime value is an estimate of the net present value of the stream of benefits from a customer.

Question 5

SIC is based on a six-digit hierarchical code.

Question 6

For identifying unmet customer needs for guiding new product development,one-on-one interviews can be more economical than focus groups.

Question 7

Computerized data warehouses have made it much more feasible to organize and analyze the data needed to better serve existing customers.

Question 8

Ideally,the focus group moderator would be the senior,most experienced member of the marketing/sales department.

Question 9

Data mining describes the process of using multivariate statistical approaches and user-controlled tools to predict behavior in a product market.

Question 10

Business marketing research is a useful tool for both customer management AND new customer acquisition.

Question 11

Most business marketers find it difficult to be all things to all customers.

Question 12

Empathic dialogue is active listening and identification with customer concerns,resulting in customer-centered communication and problem solving.

Question 13

Generally,firms will derive nearly 80 percent of their total sales from only 20 percent of their total customers.

Question 14

The actual symbols,messages and media used in positioning campaigns become more important than what the customers perceive,believe and retain.

Question 15

Market segmentation recognizes that every product is a breakthrough and also the fact that the competitive arena is often docile.

Question 16

Focus groups are especially useful for measuring market share and/or forecasting adoption rates.

Question 17

Generally,consumers welcome telephone research efforts because they typically are short and nonintrusive.

Question 18

The major advantage of online surveys is that all populations are well represented online.

Question 19

The use of marketing research as a guise for sales presentation has been found to be both effective and ethical.

Question 20

Business markets often comprise many customer firms.

Question 21

To identify unmet customer needs for guiding new product development,which of the following face to face methods can be more economical?

A) Focus groups
B) One-on-one interviews
C) Mail
D) Telephone
E) Internet

Question 22

Which term refers to the practice of storing all of the firm's information on a centrally managed computer which may be accessed by authorized users firm wide?

A) Data mining
B) Data warehousing
C) Data centralization
D) Data compression
E) Data analysis

Question 23

A small group of customers may be probed in-depth about a specific topic or issue in:

A) Data mining
B) Data warehousing
C) Focus groups
D) Projective techniques
E) Depth interviews

Question 24

Focus groups are not useful for:

A) Generating ideas
B) Gaining insights into consumer needs
C) Gaining insights into consumer constraints
D) Developing hypotheses about market opportunities
E) Forecasting adoption rates

Question 25

Focus groups are popular because of all the following EXCEPT:

A) They are supported by the efficient and accurate access to customers afforded by the database
B) They can be conducted quickly and relatively cheaply
C) They almost always yield a surprising customer insight and some new ideas
D) They provide quantitative results like percentages
E) They are best used to generate ideas

Question 26

Which of the following statements about surveys is FALSE?

A) Affirmation of the relationship serves to motivate customers to reveal unmet needs and points of supplier weakness
B) Typically the survey aims to strengthen the relationship
C) In all cases the researcher must remain unanimous to the respondents
D) Respondents should be given hope to realize greater satisfaction from within the current relationship, instead of seeking other sources
E) Even if the researcher's objective is to identify customers for disengagement, it is prudent to sever the exchange amicably, with minimal turmoil or stress

Question 27

The focus group is NOT a proper procedure for:

A) Measuring market share potential
B) Generating ideas
C) Gaining insights into consumer needs
D) Gaining insights into consumer constraints
E) Developing hypotheses about market opportunities

Question 28

Business managers have often noted that 20 percent of customers account for _____ percent of sales.

A) 60
B) 80
C) 20
D) 40
E) 30

Question 29

A(n)_____ report orders the firm's customers from best to worst,according to purchase volume for the period,summarized by tenths.

A) Ten-step
B) Performance
C) Interactive
D) Decile
E) Percentile

Question 30

Surveys can be administered to customers through all the following ways EXCEPT:

A) Personal interview
B) Mail
C) Focus groups
D) Internet
E) Telephones

Question 31

Ideally,firms should allocate their marketing budget to service their best customers until:

A) The budget is exhausted
B) 80 percent of the budget has been spent
C) Total revenue equals total costs
D) Marginal costs are minimized
E) Marginal revenue equals marginal costs and marginal costs are rising

Question 32

Query tools and exploratory techniques are used to extract information from a centralized data storage computer/server through the process of:

A) Data marting
B) Data mining
C) Data warehousing
D) Data centralization
E) Data compression

Question 33

Leading companies periodically profile their top accounts and formally develop strategies for greater:

A) Account penetration
B) Idea generation
C) Idea screening
D) Business analysis
E) Commercialization

Question 34

What is account retention?

A) It is the increase in the volume of light and medium accounts
B) The payoffs from many marketing expenditures
C) The seller's ability to provide value to the buyer
D) The percentage of accounts that continue doing business with the seller each year
E) It is the anticipated account maintenance charges

Question 35

What is the limitation of using personal interview as a survey tool?

A) Feedback from physical stimuli cannot be ascertained
B) Does not allow good depth of questioning and probing
C) Answers cannot be clarified
D) Feedback from product demonstrations cannot be ascertained
E) The expense of sending interviewers to the field to secure elusive appointments

Question 36

This is a questionnaire administered to a representative group of a particular population and is a versatile approach to problems that involve asking people questions.

A) Sample survey
B) Focus group
C) Direct observation
D) Analyses of personal documents
E) Segment form

Question 37

Focus groups accomplish all of the following EXCEPT:

A) Reveal a spectrum of customer motivations
B) Suggest differences in usage patterns
C) Provide sales estimates
D) Provide close contact with actual customers
E) Stimulate thinking about new products/services

Question 38

In terms of focus groups,a(n)_____,an experienced professional,often with advanced behavioral science training,provides a brief icebreaker and general introduction to the topic and generally tries to let the group carry on the conversation.

A) Moderator
B) Broker
C) Facilitator
D) Arbitrator
E) Negotiator

Question 39

In terms of network payoffs,first of all,every business must seek to:

A) Understand fully its role in the value chain
B) Enable its customers to better satisfy its downstream customers
C) Achieve market share growth
D) Compete in new markets
E) Increase the volume of light and medium accounts

Question 40

The ability to listen actively and identify with customer concerns is at the core of:

A) Learning
B) Negotiation
C) Empathic dialogue
D) Market sensing
E) Known requisites

Question 41

_____ is a strategy that enables a firm to maximize the results of a given marketing effort by exploiting clearly identified strengths in relation to a submarket which is inadequately satisfied by other suppliers.

A) Complexity management
B) Positioning
C) Factoring
D) Demand planning
E) Segmentation

Question 42

What is a major disadvantage of online surveys?

A) They are a more intrusive medium than the telephone
B) They are very expensive to implement
C) Most of the time they are extremely slow as a medium
D) Some populations are not well represented online
E) Their inefficiency often leads to only a few samples

Question 43

CLV is a statistical estimate whose accuracy depends upon all the following EXCEPT:

A) The relevance of historical data
B) The proximity of the horizon
C) The choice of a discount rate
D) The accuracy of anticipated account maintenance rates
E) The customer service strategies

Question 44

The survey:

A) Can be alternatively used to mask selling activities
B) Should be used to compile information from the database
C) Offer benefits to the respondents
D) Must ask only questions that cannot be answered by information on the customer database
E) Respondent need not be informed about the use for the data

Question 45

Angie,a telemarketer for an insurance firm,calls up Elizabeth,a customer,on the telephone and starts a conversation with Elizabeth by pretending to be conducting a survey,but soon launches into sales talk by trying to induce Elizabeth to buy an insurance policy.This behavior of Angie illustrates:

A) Sugging
B) Spamming
C) Phishing
D) Factoring
E) Trolling

Question 46

Viewing customer acquisition/retention as an investment has led to increasing acceptance of the concept of:

A) Marginal revenue
B) Profit maximization
C) Customer lifetime value
D) Market share forecasting
E) MR=MC

Question 47

Which of the following costs do NOT form a part of burden in determining customer lifetime value?

A) Training cost
B) Entertainment cost
C) Cost of periodic meetings
D) Annual Thanksgiving turkey gift baskets
E) Purchase cost of the product

Question 48

Sugging:

A) Is the seller's ability to provide value
B) Is the unethical practice of using marketing research as a guise for selling
C) Is the percentage of accounts that continue doing business with the seller each year
D) Means that members of a market can be reached by some directed marketing activity
E) Generally refers to marketing efforts to secure a valued categorization in the mind of a customer

Question 49

_____ establishes a common code between the United States,Canada and Mexico.

A) NAICS
B) ISIC
C) NAPCS
D) FSC
E) SIC

Question 50

The ISIC industry classification code was developed by:

A) Business marketers
B) The US Census Bureau
C) The United Nations
D) The European Union
E) The Soviet Union

Question 51

What is the key drawback of using telephone surveys?

A) There always are recipient concerns about privacy
B) It does not offer a fair mix of population
C) Some populations are not well connected
D) This is usually a time-consuming method
E) The telephone is a more intrusive medium than the mail

Question 52

_____ involves partitioning the general need for a solution to a class of problems into smaller clusters involving distinct markets.

A) Market segmentation
B) Sugging
C) Statistical profiling
D) Data warehousing
E) Data mining

Question 53

Customer lifetime value:

A) Involves hard thinking and analysis of how the product fits into the value-added process
B) Is an estimate to improve market share potential and track performance
C) Is an estimate of the net present value of the stream of benefits from a customer, less the burdens of servicing the account
D) Is an estimate of satisfaction or buying intentions
E) Involves sorting prospective customers on the basis of how they buy

Question 54

The SIC codes:

A) Establishes a common code between the United States, Canada and Mexico
B) Has organized the nation's economy into 5 divisions since the 1930s
C) Were developed by the U.S. government to collect and disseminate meaningful information on different sectors of the economy
D) Is compatible with ISIC
E) Has been designed to include industries in services and emerging technology fields

Question 55

NAICS:

A) Groups the economy into 10 major sectors
B) Has organized the nation's economy into 10 divisions since the 1930s
C) Have now been replaced by a new system called SIC
D) Establishes a common code between the United States and Germany
E) Has been designed to include industries in services and emerging technology fields

Question 56

Which of the following statements about business and consumer markets is TRUE?

A) Consumer segments of a million or two home studies of brand perception can pay for themselves with sales gains of less than a share point
B) Business markets often comprise many customer firms
C) Consumer markets evaluate complex products with more dimensions of performance than business markets
D) Consumers are largely vocal about their needs
E) Consumer segments have access to a wealth of secondary data

Question 57

Online surveys:

A) Represent the total population
B) Are a more intrusive medium than the telephone
C) Are remarkably fast
D) Totally eliminate recipient's concerns about privacy
E) Are expensive

Question 58

What are the two broad purposes of business marketing research?

A) Gathering marketing information; Product development
B) Customer management; Acquisition of new customers
C) Retention of profitable customers; Research and development
D) Key account management; Production management
E) Manufacturing; Production operations

Question 59

Since spending time at a customer's venue to test concepts and problem solve has value,many business marketers have been stepping up the frequency and complexity of:

A) Customer visits
B) In house customer budgets
C) Sugging
D) Telephone surveys
E) Informal socialization

Question 60

The _____ codes were developed by the U.S.government to collect and disseminate meaningful information on different sectors of the economy.

A) NAPCS
B) NAICS
C) ISIC
D) SIC
E) FSC

Question 61

Different levels of favorability toward the company is called:

A) Factoring
B) Switchability
C) Positioning
D) Sugging
E) Leapfrogging

Question 62

_____ members of market segments can be enumerated and evaluated.

A) Switchable
B) Accessible
C) Identifiable
D) Reliable
E) Valuable

Question 63

What is purchasing mentality?

A) Serving customers in a segment that values economy
B) It refers to marketing efforts to secure a valued categorization in the mind of a customer
C) Some buyers simply seek the lowest price on tightly defined products
D) Having a broad view of supply in the value creation process
E) Buyers give importance and performance ratings based on price criteria

Question 64

_____ is a means of ensuring quality through storage and transport,an avenue for distinguishing the brand and part of a process that offers opportunities for efficiency gains in the use of labor and working capital.

A) Positioning
B) Sugging
C) Factoring
D) Servicing
E) Packaging

Question 65

_____ represent a class of tools that help to reveal customers' mental picture of the marketplace.

A) Perceptual maps
B) Gap analyses
C) Cognitive maps
D) SWOT analyses
E) Conceptual maps

Question 66

Write a short note on the 80-20 and 75-10 rules?

Question 67

Which of the following statements about NAICS is FALSE?

A) It is based on a six-digit hierarchical code
B) It divides each economic division into two-digit designations of major groups of companies
C) It allows for finer distinctions between industries than SIC does
D) This finer-grained approach begins at the first level
E) It groups the economy into 20 major sectors

Question 68

Sellers often seek to secure a preferred position in the customer's mind through:

A) Focusing
B) Sugging
C) Segmenting
D) Positioning
E) Factoring

Question 69

What are the three major factors for the popularity of focus group research?

Question 70

Identify the key drawbacks of telephone surveys and online surveys?

Question 71

Classifying customers on the basis of _____,often leads to a breakdown featuring Fortune 500 firms,other named accounts,midsized firms and small businesses.

A) Size
B) Product
C) Industry
D) Geography
E) Technology

Question 72

Market estimates by this approach come from building up the materials or parts units needed in a specific application or from specific accounts.

A) Factoring
B) Positioning
C) Diversification
D) SWOT analysis
E) Scenario process

Question 73

_____ comprise a forecasting technique that requires managers to write explicit anticipated futures and articulate the chains of events that would need to occur to make the future happen.

A) References
B) Synopses
C) Case studies
D) Scenarios
E) Abstracts

Question 74

_____ means that members of a market can be reached or impacted by some directed marketing activity.

A) Volatility
B) Substantiality
C) Switchability
D) Accessibility
E) Identifiability

Question 75

The volume of certain materials,logistical services or MRO goods can be compared to finished products output in a:

A) Scenario process
B) Buildup approach
C) Conceptual map
D) SWOT analysis
E) Statistical series

Question 76

This involves hard thinking and analysis of how the product fits into the value-added process.

A) Scenario process
B) Buildup approach
C) Positioning
D) Diversification
E) SWOT analysis

Question 77

Compare and contrast scenarios and the buildup approach?

Question 78

Briefly describe data mining?

Question 79

Which of the following is an estimation technique that uses the correlation between demand and some other set of economic activities to yield a forecast?

A) Scenario process
B) Buildup approach
C) Statistical series
D) Field testing
E) Gap analysis

Question 80

Good markets are identifiable,accessible,and:

A) Reliable
B) Intensive
C) Critical
D) Small
E) Substantial