Deck 1: Marketing: Creating and Capturing Customer Value

Question 1

Marketing is only selling and advertising.

Answer 1

False

Question 2

Holt Renfrew and Harry Rosen stores want to only select customers they can serve well and profitably so they target affluent professionals.

Answer 2

True

Question 3

Market offerings are limited to products and services.Persons,places,organizations,information,and ideas are not included.

Answer 3

False

Question 4

Market segmentation is the process of seeking fewer customers and reduced demand for profit maximization only.

Question 5

Market offerings are limited to physical products.

Question 6

Marketing managers know that they can serve all customers in every way.

Question 7

Only sellers of products,services,and ideas practise marketing; buyers do not.

Question 8

Like Running Room,today's successful companies have one thing in common: they are strongly customer focused and heavily committed to marketing.

Question 9

When sellers focus on existing wants and lose sight of underlying customer needs,they suffer from marketing myopia.

Question 10

Competitors are one of the main elements in the modern marketing system.

Question 11

The production concept and product concept are orientations that can lead to marketing myopia.

Question 12

An experience such as a vacation can be defined as a market offering.

Question 13

Not-for-profit organizations,such as universities,hospitals,and museums,do not need to use marketing.

Question 14

Marketing occurs when people decide to satisfy needs and wants through exchange relationships.

Question 15

The David Suzuki Foundation powerfully markets the idea that government,business,and individuals can be involved in creating a healthy and sustainable environment.Its marketing offering is not a physical product but an idea.

Question 16

Human needs are shaped by culture and individual personality.

Question 17

At TELUS,"The future is friendly" whereas Rogers Wireless promises "Canada's reliable network"; such value propositions differentiate one brand from another.

Question 18

Marketing is the process by which companies create value for all the shareholders in order to build strong relationships with them in return.

Question 19

Human wants are states of felt deprivation.

Question 20

When backed by buying power,needs become demands.

Question 21

Customer satisfaction is the extent to which a product's perceived performance matches the seller's expectations.

Question 22

The purpose of marketing is to generate customer value profitably.

Question 23

Customer-perceived value is defined as the customer's evaluation of the difference between all benefits and all costs of a marketing offer relative to those of competing offers.

Question 24

Consumer-generated marketing,whether invited by marketers or not,has become a significant marketing force.

Question 25

In markets with few customers and high margins,sellers want to create full partnerships with key customers.

Question 26

The key to building lasting customer relationships is to create superior customer value and satisfaction.

Question 27

Your department holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do.Your department is practising the selling concept.

Question 28

The value of the entire stream of purchases that the customer would make over a lifetime of patronage is called customer loyalty.

Question 29

The marketing mix includes production,price,promotion,and packaging; this is known as the four Ps of marketing.

Question 30

The changing communications environment caused by the new technologies does not affect how companies and brands relate to customers.

Question 31

Marketers must often understand customer needs even better than the customers themselves do.

Question 32

For most marketers,customer relationship management (CRM)is exclusively a matter of customer data management.

Question 33

Fast Food Inc.views marketing as the science and art of finding,retaining,and growing profitable customers by providing them with the food they want.Fast Food Inc.practises societal marketing.

Question 34

The aggressive selling concept focuses on creating sales transactions rather than on building long-term and profitable customer relationships.

Question 35

Customer relationship management is perhaps the least important concept of modern marketing.

Question 36

The selling concept holds that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort.

Question 37

The societal marketing concept calls on marketers to balance consumer wants and desires,company profits,and society's interests.

Question 38

With selective relationship management,companies use customer profitability analysis to eliminate losing customers and target winning ones.

Question 39

To increase their "share of customer," a firm concentrates on retaining as many customers as possible over their lifetimes.

Question 40

Computer maker Lenovo dominates the highly competitive,price-sensitive Chinese PC market through low labour costs,high production efficiency,and mass distribution.This is an example of the product concept.

Question 41

In recent years,marketing also has become a major part of the strategies of many not-for-profit organizations.

Question 42

According to management guru Peter Drucker,"The aim of marketing is to ________."

Question 43

________ is broadly defined as a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others.

Question 44

Core ________ activities include consumer research,product development,communication,distribution,pricing,and service.

Question 45

A company needs to construct a marketing program that delivers superior value and then ________ according to the five-step model of the marketing process described in the text.

Question 46

Our ________ are the products and services,backed by buying power,that we believe will provide us with benefits that add up to the most value and satisfaction.

Question 47

What is the first step of the five-step marketing process?

A) Design a customer-driven marketing strategy.
B) Set a profitable price.
C) Build profitable relationships.
D) Understand the marketplace and customer needs and wants.
E) Construct a marketing program that delivers superior value.

Question 48

Beyond simply attracting new customers and creating transactions,companies want to ________ and grow their businesses.

Question 49

Marketing consists of actions taken to build and maintain desirable exchange relationships with ________ involving a product,service,idea,or other object.

Question 50

__________ is defined as the art and science of choosing target markets and building profitable relationships with them.

Question 51

The following is an accurate description of modern marketing:

A) Marketing is maximizing profits.
B) Selling and advertising are synonymous with marketing.
C) Marketing is all about sales.
D) Marketing involves satisfying customers' needs in a socially responsible and ethical manner.
E) Marketing is used only by for-profit organizations.

Question 52

During a(n)________ a desired object is obtained from someone while giving something else of value in return.

Question 53

At which step of the five-step marketing process do we examine five core customer and marketplace concepts,including needs and wants,market offerings,value and satisfaction,exchanges and relationships,and markets?

A)The first step
B)The second step
C)The third step
D)The fourth step
E)The fifth step

Question 54

Very low expectations set by marketers for a market offering can likely result in ________.

Question 55

The total combined customer lifetime values of all of the company's current and potential customers are called customer lifetime values.

Question 56

The most dramatic digital technology is the iPad.

Question 57

Greg Williams now has the buying power to purchase the computer system he has wanted for the past six months.Greg's want now has become a(n)________.

Question 58

When sellers become obsessed with their own products and lose sight of the underlying customer needs we say this is ______________.

Question 59

A company needs to understand the marketplace and customer needs and wants and then ________ according to the five-step model of the marketing process described in the text.

Question 60

Today,almost every company,large or small,is touched in some way by global competition.

Question 61

The _________ is the set of benefits or values a company promises to deliver to customer to satisfy their needs.

Question 62

Cathy's Clothes is a small retail chain successfully selling women's clothing and accessories with a profitable focus on buyers who have relatively modest means.This is an example of ________

Question 63

The product concept says that a company should do which of the following?

A) Improve marketing of its best products
B) Market only those products with high customer appeal
C) Focus on the target market and make products that meet those customers' demands
D) Focus on making continuous product improvements
E) Make promoting products the top priority

Question 64

The ________ concept is aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer the most in quality,performance,and innovative features.

Question 65

Which of the following marketing management orientations focuses primarily on improving production and distribution efficiency?

A) Production concept
B) Product concept
C) Selling concept
D) Marketing concept
E) Social marketing concept

Question 66

Customer-driven marketing usually works well when ________ and when customers ________.

Question 67

Though often criticized,the selling concept is particularly appropriate and effective with which of the following types of products?

A) Convenience
B) Shopping
C) Specialty
D) Unsought
E) Luxury

Question 68

Under the marketing concept,________ are the paths to sales and profits.

Question 69

Which of the following reflects the marketing concept philosophy?

A)"We don't have a marketing department; we have a customer department."
B)"We're in the business of making and selling superior products."
C)"We build them so you can buy them."
"When it's profits versus customers' needs, profits will always win out."
D)"You won't find a better deal anywhere."

Question 70

Which of the following marketing management orientations is most likely to lead to marketing myopia?

A) Customer-driven marketing
B) Production concept
C) Social marketing
D) Selling concept
E) Customer-driven marketing.

Question 71

"Build a better mousetrap,the world will beat a path to your door" reflects the ________ concept.

Question 72

According to the production concept,consumers will favour products that are ________ and ________.

Question 73

Which 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?

A) Product
B) Production
C) Selling
D) Marketing
E) Equity

Question 74

A company's value proposition should answer this question:

A) "What kind of experience will I have with products and services associated with this brand?"
B) "How does your brand benefit me and society?"
C) "What are the costs and benefits of your brand?"
D) "Why should I buy your brand rather than a competitor's?"
E) "What are the benefits of being a loyal consumer of your brand?"

Question 75

Railroads were once operated based on the thinking that users wanted trains rather than transportation,overlooking the challenge of other modes of transportation.This reflects the ________ concept.

Question 76

Herb Kelleher of Southwest Airlines used the marketing concept in his successful organization.Having a customer department rather than a marketing department,as suggested by Kelleher,is an example of a(n)________ perspective.

Question 77

The art and science of choosing target markets and building profitable relationships with them is called ________.

Question 78

A firm that uses the selling concept takes a(n)________ approach.

Question 79

Which concept calls for aggressive selling and focuses on creating sales transactions rather than on building long-term customer relationships?

A) Product
B) Production
C) Selling
D) Societal marketing
E) Marketing

Question 80

Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability.This reflects the ________ concept