Principle of Marketing Essay

Marketing: Managing Profitable Customer Relationships Multiple Choice 1. Marketing seeks to create and manage profitable customer relationships by delivering _____ to customers. a. competitive prices b.

superior value c. superior service d. superior promotion (b; Easy) 2. The marketing manager at Sunshine Car Washes is holding a training session for new employees. She stresses that perhaps the most important concept of modern marketing is _____. a. customer relationship management b.

e-mail advertising c. a quality Web site d. properly trained sales people (a; Moderate) 3.Jeff Bezos, founder of Amazon. com, wants to deliver a _____ to every customer.

a. special experience b. superior value c.

wide selection of products d. none of the above (a; Easy) 4. Many experts predict that the future will belong to retailers who offer both “clicks” and _____. a. major discounts b. bricks c. superior locations d.

superior promotion (b; Easy) 5. You have learned at work that today’s successful companies at all levels have one thing in common: they are strongly customer focused and heavily committed to _____. a.

obtaining the best CEOs b. ncreasing wealth to stockholders c. marketing d. employee motivation (c; Moderate) 6.

The twofold goal of marketing is to attract new customers by promising superior value and to _____. a. keep and grow current customers by delivering satisfaction b. keep and grow current customers by delivering competitive pricing c. keep and grow current customers by delivering friendly service d. all of the above (a; Challenging) 7. Highly successful companies know that if they take care of their customers, _____ will follow. a.

frequent word of mouth b. market share c. rofits d. market share and profits (d; Moderate) 8.

Marketing is more than _____ and advertising. a. distribution b. promotion c. selling d. customer service (c; Easy) 9.

Marketing is not only an exchange and managerial process, it is a _____. a. numbers game b.

social process c. cultural process d. subcultural process (b.

Moderate) 10. Tommy Wang now has the buying power to purchase the computer system he has wanted for the last six months. Tommy’s want now has become a _____. a. need b. necessity c. demand d. none of the above (c; Easy) 11.

You are preparing a combination of products, services, information, and experiences to a market to satisfy needs and wants. What are you preparing? a. value proposition b. demand satisfaction c. tactical plan d. marketing offer (d; Challenging) 12. The difference between customer value and customer satisfaction is that value is the difference between the values the customer gains from owning and using a product and the _____. a.

costs of delivery of the product b. cost of obtaining the product c. cost of competing products d. cost of the lost experience (b. Moderate) 13.We can safely say that when a customer’s purchase lives up to his or her expectations, the customer is experiencing this state of being. a.

customer value b. self-esteem c. self-actualization d. customer satisfaction (d; Moderate) 14. The five alternative concepts under which organizations conduct their marketing activities include the production, _____, selling, marketing, and societal marketing concepts.

a. promotion b. pricing c.

distribution d. product (d; Moderate) 15. We have learned by sad experience that the product concept can lead to marketing _____. a. failures b. myopia c.

roblems d. incongruences (b; Moderate) 16. Jolene’s firm believes that consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort.

Jolene’s firm is practicing the _____. a. production concept b. marketing concept c. selling concept d. relationship concept (c; Easy) 17.

Most firms practice the selling concept when they face _____. a. a crisis b.

a recession c. fierce competition d. overcapacity (d; Moderate) 18. To practice the marketing concept, an organization must deliver the _____ better than competitors. a.

esired satisfactions b. attractive prices c. level of service d.

advertising campaign (a; Moderate) 19. Jonathan Nonis works in sales for a telemarketing firm. His firm uses the selling concept which takes a (an) _____ approach. a. outside-in b.

myopic c. inside-out d. marketing concept (c; Easy) 20. Mary Tanaka enjoys her work at Times Designs, Pte Ltd. Her organization understands customer needs even better than customers themselves do and creates products and services that will meet existing and latent needs, now and in the future. Mary’s firm practices _____ marketing. a. customer-driven b.

ustomer-driving c. relationship d. none of the above (b; Challenging) 21. The societal marketing concept seeks to establish a balance between consumer short-run wants and consumer_____. a. short-run costs and profits b. short-run ethics c. long-run welfare d.

health (c; Moderate) 22. Since customers tend to act on perceived values, they often do not judge product values and costs _____. a. reliably b. accurately c. objectively d. accurately or objectively (d; Moderate) 23.

All of the following are associated with highly satisfied customers except one. a. They are less price sensitive. b.They remain loyal for a longer period. c. They spend a higher percentage of their discretionary income on personal items. d.

They talk favorably to others about the company and its products. (c; Moderate) 24. You have just read a report in a leading business magazine. It states that the major marketing developments as we enter the new millennium can be summed up in what single theme? a. relationship marketing b. connecting c. partnering d. networking (b; Challenging) 25.

You will learn that marketing ultimately involves attracting, keeping, and _____ profitable customers. a. tracking b. lacing in a database c. growing d. none of the above (c; Moderate) 26.

Many firms today are taking a proactive orientation by becoming more socially and _____ responsible. a. environmentally b. financially c. ethically d. all of the above (a; Challenging) 27.

The old marketing view emphasized trying to make a profit on each sale rather than trying to profit by managing what value? a. customer lifetime value b. customer satisfaction index c. cognitive dissonance d.

all of the above (a; Challenging) 28. Modern companies are improving their customer knowledge and customer _____. a. ppreciation b. awareness c. connections d. none of the above (c; Easy) True – False 1.

It is safe to say that today’s most important marketing concept is customer relationship management. (True; Easy) 2. Internet-based companies tend to spend tremendous outlays on customer acquisition.

(True; Moderate) 3. Like Amazon. com, today’s successful companies at all levels have one thing in common – they are strongly supplier focused and heavily committed to cost savings. (False; Challenging) 4. The simplest definition of modern marketing is managing profitable customer relationships. (True; Easy) 5.

A thorough definition of marketing tells us that it is a business and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. (False; Moderate) 6. The difference between human needs and wants is that needs are states of felt deprivation. (True; Easy) 7. Smart marketers look beyond the attributes of the products and services they sell. They create brand meaning and brand experiences for consumers. (True; Moderate) 8. Customer value in relation to a purchase depends on how well the product’s performance lives up to the customer’s expectations.

False; Moderate) 9. Marketing management is interested in serving all customers in every way to remain competitive in today’s markets. (False; Moderate) 10. 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. (True; Easy) 11. We say that the selling concept is an inside-out perspective. (True; Challenging) 12.

To practice customer equity, a company must be concerned with the total combined customer lifetime values of all major purchasers of its products. (False; Challenging)