Question 1

Which of the following is not a part of the process cycle for CRM?

Accepted Answer

Touchpoint targeting is not typically considered a distinct phase in the CRM process cycle, which generally includes marketing planning, knowledge discovery, customer interaction, and analysis and refinement.

Question 2

Market-driven companies do a better job of market sensing.

Accepted Answer

Market-driven companies prioritize understanding their customers' needs and preferences in order to create products and services that meet those needs. This focus on market sensing allows them to stay ahead of changing market trends and maintain a competitive edge.

Question 3

CRM has facilitated the shift from one-to-one to mass marketing.

Accepted Answer

CRM (Customer Relationship Management) focuses on building strong relationships with individual customers, rather than treating them as a mass audience. CRM helps companies personalize their marketing efforts and create targeted campaigns for specific groups or individuals, rather than using a one-size-fits-all approach. Therefore, CRM facilitates the shift from mass marketing to one-to-one marketing, not the other way around.

Question 4

CRM is both a philosophy and a pragmatic system.

Accepted Answer

CRM (Customer Relationship Management) is not only a system or technology, but it is also a business philosophy that focuses on creating and maintaining long-term relationships with customers. The CRM system is the tool that brings this philosophy to fruition by allowing businesses to track interactions, analyze customer data, and personalize communication with customers.

Question 5

Personal selling is always a more expensive marketing communications tool than either advertising or sales promotion.

Accepted Answer

The cost of personal selling can vary and is not always more expensive than advertising or sales promotion, as it depends on factors like the scale and scope of the campaign.

Question 6

The major cause of growth in CRM is technology.

Accepted Answer

Technology has played a significant role in the growth of CRM by enabling companies to collect, analyze, and utilize customer data more efficiently, as well as automate various aspects of customer engagement and communication.

Question 7

Your school is implementing a new CRM initiative. Which of the following questions should they ask?

Accepted Answer

The most relevant question in this scenario is "Who are we?" as it will help the school identify their goals, values, and needs that the CRM initiative should align with. The other options are not directly related to a CRM initiative and may not be the most relevant questions to ask in this context.

Question 8

__________ is a comprehensive business model for increasing revenue and focusing on customers.

Accepted Answer

Customer relationship management (CRM) is a comprehensive business model that focuses on building and maintaining strong relationships with customers to increase revenue. It involves using technology, data analytics, and marketing strategies to understand and anticipate customer needs and preferences, personalize interactions, and provide excellent customer service. Targeted marketing (A) and market orientation (C) are related concepts, but they focus more on identifying and appealing to specific customer segments or market trends rather than building long-term relationships. Enterprise resource planning (D) is a software system used to manage and integrate different aspects of a company's operations, such as inventory and finances, but it is not directly related to customer management.

Question 9

Alex studies the projected financial returns from his customers including the money, resources, time and information involved in managing each account. Based on this analysis he may decide to:

Accepted Answer

Based on the analysis of projected financial returns from customers, Alex may decide to fire some customers who are not providing enough returns or may require too much time and resources to manage. This can help him focus on more profitable and efficient relationships. The other options are not directly related to the analysis mentioned in the question.

Question 10

Which of the following is not one of the advantages of CRM?

Accepted Answer

increasing advertising costs is not an advantage of CRM. The other options - B, C, D, and E - are all advantages of CRM.

Question 11

A ___________ environment affords the opportunity to combine large amounts of information and then use __________ techniques to learn more about current and potential customers.

Accepted Answer

A data warehouse environment provides a large and centralized repository of data from multiple sources which can then be analyzed using data mining techniques to gain insights into customer behavior and preferences.

Question 12

Archway furniture is projecting their expected financial returns from different groups of customers. Archway is estimating the:

Accepted Answer

Archway furniture is estimating the lifetime value of different groups of customers, which is a measure of the expected financial returns from each group over their lifetime as customers. This indicates that they are focusing on understanding the value that each customer can bring to their business, rather than just looking at short-term profits or cost savings.

Question 13

CRM is any application or initiative that optimizes interactions with customers, vendors or prospects via one or more tops-to-tops.

Accepted Answer

CRM (Customer Relationship Management) specifically focuses on optimizing interactions with customers and prospects, not vendors.

Question 14

To The process cycle for CRM may be broken down into the following four elements: â€¨(1) knowledge discovery, (2) market planning, (3) customer interaction and (4) analysis and refinement.

Accepted Answer

This statement is true, as the four elements listed are commonly recognized as key components of the CRM process cycle.

Question 15

The lifetime value of a customer concept emphasizes cost savings, revenue growth, profits and referrals from loyal customers.

Accepted Answer

The lifetime value of a customer concept focuses on the long-term value of a customer to a business, which includes cost savings, revenue growth, profits, and referrals from loyal customers.

Question 16

Commitment in a relationship need only exist between the salesperson and the customer contact.

Accepted Answer

Commitment in a sales relationship involves not only the salesperson and the customer contact, but also the organization and the customer as a whole. This includes the delivery of the promised products or services, ongoing support and communication, and maintaining a relationship beyond the initial sale.

Question 17

The advantage of personal selling as a marketing communications tool stems largely from its face-to-face communication with a potential customer.

Accepted Answer

Personal selling allows for direct and personalized communication with a potential customer, which can lead to better understanding and building of relationships.

Question 18

Many companies have abandoned CRM because of no change in management initiative.

Accepted Answer

CRM (Customer Relationship Management) is a strategy that helps businesses manage and track their interactions with customers. It is a long-term initiative that requires commitment from management in order to be successful. If a company abandons CRM because of no change in management initiative, it is likely that the company did not have a clear understanding of the benefits of CRM or was not willing to commit to the long-term investment required to make it successful.

Question 19

Research suggests that firms with a higher level of customer orientation are more successful.

Accepted Answer

Research has shown that firms that prioritize their customers and focus on customer satisfaction tend to have higher levels of success, including increased customer loyalty, positive word-of-mouth marketing, and higher profits.

Question 20

Some key reasons for CRM system flops in sales organizations include:

Accepted Answer

All of the above factors can contribute to the failure of a CRM system in a sales organization. A lack of focus on proper implementation and use of the system, compiled procedures that are difficult to follow, minimal buy-in from team members, and business units operating in silos can all hamper the effectiveness of a CRM system. It is crucial to address these issues in order to successfully implement and utilize a CRM system in a sales organization.

Quiz 3: Linking Strategies and the Sales Role in the Era of Customer Relationship Management