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A fundamental rule in marketing is to not set customer expectations so high that they
cannot be effectively met on a consistent basis.
It is okay to fire a customer who has a low predicted lifetime value, even if there is not
a more attractive customer in sight.
A variable pricing strategy makes planning and forecasting infinitely easier than the
alternative approach, one-price.
Marketing managers who want to improve the effectiveness of CRM focus on three
areas: Customers, the relationship, and managerial decision-making.
Fred Wiersema's book The New Market Leaders states that marketers will continue to
have more power than customers in both B2B and B2C markets.
__________ is the reduction in sales (units or dollars) of a firm's existing products due
to the introduction of a new product.
A.Cannibalization
B.Margin on Sales
C.Penetration
D.Customer Lifetime Value
E.Sales Force Effectiveness
Cannibalization is the reduction in sales (units or dollars) of a firm's existing products
due to the introduction of a new product.
A request for proposal (RFP) ____________________.
A.Is the end point for vendors in the B2B market
B.Is the starting point from which vendors put together their product solution
C.Seeks information from the customers regarding the product performance
D.Is not a very time consuming part of the sales process
E.Evaluates the performance of sales personnel
Putting product specifications into a document for distribution is known as a request for
proposal (RFP). The second purpose of outlining product specifications is to guide
potential suppliers. Product specifications as contained in the RFP become the starting
point from which vendors put together their product solution.
Values shared by Americans are _____ while Japanese value _____.
A.Hard work and achievement, harmony and hierarchy
B.Achievement and family, harmony and devotion
C.Hard work and achievement, recognition and hierarchy
D.Achievement and family, harmony and hierarchy
E.Hard work and achievement, harmony and recognition
Among the values shared by Americans are achievement, hard work, and freedom while
Japanese value social harmony, hierarchy, and devotion.
With reference to the VALS¢ framework, _______ have goal-oriented lifestyles that
center on family and career.
A.Makers
B.Survivors
C.Believers
D.Achievers
E.Thinkers
With reference to the VALS¢ framework, achievers have goal-oriented lifestyles that
center on family and career. They avoid situations that encourage a high degree of
stimulation or change.
A personnel leadership position implies that the company ________.
A.Has employees who are more talented than the competition
B.Spends the least amount of money on employee salaries
C.Offers the highest salaries to its employees as per the industry standards
D.Hires only those employees who are already trained
E.Has systems to monitor employee benefits
Hiring employees who are competent, reliable, courteous, credible, responsive, and able
to communicate clearly, leads to personnel leadership. Personnel leadership is based on
differentiation in terms of quality of employees.
___________________ is an advantage that is most likely to be associated with store
retailing.
A.Social experience
B.Reduced risk to the consumer
C.Payment options
D.None of the above
E.All of the above
Social experience, reduced risk to the consumer, and payment options are the
advantages of store retailing.
Aaron's boss wants him to travel to Canada to investigate opening retail stores in
Montreal and Ottawa. The firm operates under the name of Bob's Bargain Basement.
Most likely, this would be classified as __________ in Ansoff's Product-Market Matrix.
A.Market diversification
B.Marketing strategy development
C.Market penetration
D.Product development
E.Market development
As per Ansoff's Product-Market Matrix, Market development means introducing
existing products to new markets. Since the company wants to open retail stores in new
locations, this is an example of market development.
_____________ focuses on lower prices, which means fewer services and limited
assortments and variety.
A.Supermarkets
B.Specialty retailers
C.Discount stores
D.Catalog retailing
E.Direct selling
Carrying more inventories or providing additional services has a cost that ultimately
must be covered by the consumer. So discount stores focus on lower prices, which
means fewer services and limited assortments and variety.
XYZ department store advertises the "biggest sale of the year" every weekend and
offers extra bargains to early bird customers. ABC department store advertises seasonal
sales and employees send handwritten notes to customers who spend more than a
certain amount of money. This implies that _______________________.
A.XYZ is long-term oriented and ABC is short-term oriented
B.XYZ is focused on selling and ABC is focused on relationship building
C.Both firms are trying to achieve the same goal of profitability so tactics do not matter
D.XYZ must be more successful since it advertises every week
E.They should both be worried about LMN
The move toward a relationship orientation by firms has been driven by the realization
that it is far more efficient and effective to invest in keeping and cultivating profitable
current customers instead of constantly having to invest in gaining new customers that
come with unknown return on investment. ABC is focused on relationship building and
retaining more customers, while XYZ is following the usual sales tactics.
The greater the ___________, the more market testing a company will want to do
before a full product launch.
A.Profit motive of the company
B.Risk of alienation of existing customers
C.Risk of failure
D.Cost of doing nothing
E.Time required for manufacturing the product
The cost of launching a product failure is very high. Hence, the greater the risk of
failure, the more market testing a company will do before a full product launch.
Once a product is ready to be test marketed, ________.
A.It is marketed under a code name
B.It is marketed with a brand identity and packaging that will be used when
commercialized
C.It is marketed under a fake name to hide its real market existence from competitors
D.It is marketed with very different appeals than will be used in the commercialization
phase to keep the benefits hidden from competition
E.None of the above
It is usual to use the real name and branding identity when test marketing to make sure
the whole of the product is tested for commercialization.
Perceptual map is a visual tool used for ________.
A.Gap analysis
B.Positioning
C.Concept testing
D.Price elasticity testing
E.None of the above
A perceptual map is a useful visual tool for positioning which displays paired attributes
in order to compare consumer perceptions of each competitor's delivery against those
attributes.
Are the core concepts of CRM new? What is the driving force that makes CRM
possible today?
List the three essential elements of a telemarketing campaign.
What are the four things a firm must do in order use touchpoints successfully?
Identify and explain the boundaries of branding.
How do consumer package goods companies use product extension? How does this
relate to new product development?
Debbie understands that customers often want to buy a product immediately, especially
in her case where customers are usually vacationers. Due to this, Debbie keeps a huge
inventory of her beach themed items at her beachfront shop. Why is this not the best
idea for Debbie?
Define market segmentation.
Carrie is the marketing manager at University Sporting, where she works with many
intermediaries to get University Sports teams their uniforms and equipment. She is
trying to explain to her boss that they should be operating in a value network. Explain
elements of a value network.
