Skill: Concept
20) Beyond simply retaining good customers, marketers want to constantly increase their \A) Marketers want to increase their market share.
B) Marketers want to increase the share they get of the customer's purchasing in their product categories.
C) Marketers want to increase the profit margin with this target market.
D) Marketers want to continuously increase their customers' levels of satisfaction. E) Marketers want to turn satisfied customers into delighted customers. Answer: B Diff: 3 Page Ref: 22 Skill: Concept
21) Customers can be classified into four relationship groups, according to their profitability and projected loyalty. Which type of customers have the highest profit potential and strong loyalty? A) barnacles B) strangers C) butterflies D) true friends E) big fish Answer: D Diff: 2 Page Ref: 24 Skill: Concept
22) Which of the following statements about the Internet is most accurate?
A) Companies are cautiously using the Internet to build closer relationships with customers and marketing partners alike.
B) After the dot-com meltdown of 2000, fewer consumers are buying products and/or services online.
C) The Internet makes it easy for consumers to view, interact with, and create marketing content.
D) Consumer e-commerce looks promising, but business-to-business e-commerce is declining.
E) Web 2.0 involves a less balanced approach to online marketing than the original dot-com boom did. Answer: C Diff: 2 Page Ref: 26 AACSB: Use of IT Skill: Concept
23) Which of the following is currently the fastest-growing form of marketing? A) consumer-generated marketing
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B) online marketing
C) mass media marketing D) social marketing
E) word-of-mouth marketing Answer: B Diff: 3 Page Ref: 26 AACSB: Use of IT Skill: Concept
24) Today almost every company, small and large, is affected in some way by which of the following?
A) the societal marketing concept B) not-for-profit marketing C) global competition
D) customer-generated marketing E) caring capitalism Answer: C Diff: 2 Page Ref: 26 Skill: Concept
25) Governmental agencies are becoming more involved in marketing as the years pass. When a local government advertises keeping the area's streams and water supply cleaner, it is involved in ________. A) green marketing
B) social marketing campaigns C) demarketing
D) environmental marketing E) partnership marketing Answer: B Diff: 2 Page Ref: 29 Skill: Concept
26) 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. practices societal marketing. Answer: FALSE Diff: 2 Page Ref: 11
AACSB: Reflective Thinking Skill: Application
27) The societal marketing concept calls on marketers to balance consumer wants and desires, company profits, and society's interests. Answer: TRUE Diff: 2 Page Ref: 11
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AACSB: Ethical Reasoning Skill: Concept
28) For most marketers, customer relationship management (CRM) is exclusively a matter of customer data management. Answer: FALSE Diff: 2 Page Ref: 13 Skill: Concept
29) The marketing mix includes production, price, promotion, and packaging; this is known as the four Ps of marketing. Answer: FALSE Diff: 2 Page Ref: 12 Skill: Concept
30) Customer-perceived value is defined as the customer's evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers. Answer: TRUE Diff: 1 Page Ref: 13 Skill: Concept
Chapter 2 Company and Marketing Strategy: Partnering to Build Customer Relationships
1) Which of the following involves adapting a firm to take advantage of opportunities in its constantly changing environment? A) long-range planning B) short-range planning C) media planning D) strategic planning E) annual planning Answer: D Diff: 2 Page Ref: 38 Skill: Concept
2) When a firm develops and maintains a strategic fit between its goals and capabilities, it is performing ________. A) mission planning B) values planning C) strategic planning
D) business-portfolio planning E) operations planning Answer: C
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Diff: 1 Page Ref: 38
3) Which of the following is the first step in strategic planning? A) set objectives and goals
B) develop the business portfolio C) define the company mission D) plan marketing strategies
E) identify threats and weaknesses Answer: C Diff: 1 Page Ref: 39
4) Which of the following is NOT a step in the strategic planning process? A) defining the company mission
B) setting company objectives and goals C) designing the business portfolio
D) planning marketing and other functional strategies E) evaluating all members of the value chain Answer: E Diff: 2 Page Ref: 39
5) Which of the following provides an answer to these questions: What is our business? Who are our customers? What do our customers value? What should our business be? A) objectives and goals B) a mission statement C) a business portfolio
D) marketing and functional strategies E) operational strategies Answer: B Diff: 2 Page Ref: 39 AACSB: Communication Skill: Concept
6) After management has identified the key businesses making up its company, what is the next step in portfolio analysis?
A) identifying businesses in which to invest B) assessing the attractiveness of its SBUs C) deciding whether to harvest any businesses D) completing short-range planning E) identifying SBUs Answer: B Diff: 2 Page Ref: 41
7) The best known product portfolio planning method was developed by ________. A) the Boston Consulting Group B) Philip Kotler
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C) Harvard University
D) the SRI Consulting Firm E) James P. Hess Answer: A Diff: 2 Page Ref: 41
8) Most portfolio analysis methods evaluate SBUs on two dimensions, namely ________ and ________.
A) market share; strength of the SBU's position B) market diversification; relative market share
C) market or industry attractiveness; strength of the SBU's position D) market growth rates; profits
E) market penetration; market development
9) In the Boston Consulting Group approach, ________ provides a measure of market attractiveness.
A) relative market share B) market development C) market penetration D) market growth rate E) market segmentation Answer: D Diff: 2 Page Ref: 41 Skill: Concept
10) In the Boston Consulting Group approach, ________ serves as a measure of company strength in the market. A) relative market share B) market development C) market diversification D) market growth rate E) market segmentation Answer: A Diff: 2 Page Ref: 41
11) Each department in a company that carries out value-creating activities can be thought of as a link in the company's ________. A) market development B) product development C) business portfolio D) value chain
E) value delivery network Answer: D Diff: 1 Page Ref: 46
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