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

Question 1

According to Miles and Snow, a firm using a defender strategy:

A) Strives to be a pioneer in product/market development
B) Emphasizes high volume sales
C) Sells to high-growth markets while holding onto substantial mature markets
D) Offers a limited stable product line to a predictable market
E) Aggressively constructs efficient-scale facilities

Answer 1

D

Question 2

You are the new sales manager for automobile retailer. You attempt to improve the customer focus of the organization but the _____________ department resists your efforts.

A) Parts
B) Accounting
C) Finance
D) Human resources
E) Every department other than sales

Answer 2

E

Question 3

After developing a mission statement for his company, Tyler knows ________ and ______________, representing specific targets the firm wishes to meet will be addressed.

A) Touchpoints; concepts
B) Push; pull strategies
C) Advantages; disadvantages
D) Goals; objectives
E) Distinctive corollaries; formalized value concepts

Answer 3

D

Question 4

Tyler takes over as CEO of a failing software company. He asks to see the company's mission statement and finds there isn't one. Without clarity in its mission and goals, Tyler knows the company will lack:

A) Integrated supply chain alliances
B) Strategic direction
C) Generic strategies
D) Functional strategic partnerships
E) Customer delight

Question 5

The key factor in the generation of strategies is:

A) Creativity
B) Consistency with the organizational culture
C) Costs
D) Feasibility of success
E) Acceptance by organizational stakeholders

Question 6

Which of the following statements about market opportunity analysis is true?

A) One of the tasks of market opportunity analysis is to determine whether a mission statement is feasible
B) A market opportunity would be viable and attractive to a firm even if the opportunity is inconsistent with the company's mission and objectives
C) The steps involved in a market opportunity analysis begin with the generation of strategies, followed by the determination of marketing objectives and ends with the reviewing and revising of plans
D) Market opportunities must be defined for the whole marketplace, not for specific target markets
E) None of the above

Question 7

Which of the following represents a continuum from low to high trust?

A) Market exchange, strategic partnership, functional relationship
B) Functional relationship, market exchange, strategic partnership
C) Market exchange, functional relationship, strategic partnership
D) Strategic partnership, functional relationship, market exchange
E) None of the above

Question 8

Which of the following is the BEST example of a market exchange?

A) Andre renews his membership at his health club
B) After an unsuccessful job interview, Melanie buys a hamburger from a Dulles Airport vendor while on her way home to Tulsa, Oklahoma
C) Handelmann Florist buys two cases of flower vases from its regional gardening supplies distributor
D) A consumer products company hires a Minnesota company to oversee another promotional contest and to determine the winners of the prizes
E) Susan and Alan buy life insurance from the same insurance agent from whom they purchased car and home insurance

Question 9

Which of the following statements about the generation and selection of organizational strategies is true?

A) It would be a waste of resources for a company to use brainstorming to generate strategic ideas
B) Sometimes many different strategies may achieve the same objective
C) A firm must review many strategies to find the optimal strategy
D) The organizational objectives should be set once the organizational strategy has been determined
E) All of the above statements about the generation and selection of organizational strategies are true

Question 10

Justine is frustrated with her company's inability to link production, customer service and other internal processes with her customers. Justine believes her company's __________ are inadequate.

A) Spanning processes
B) Customer value measures
C) Strategic business units
D) Mission statements
E) Top-to-top selling teams

Question 11

The question of what business a firm is in is addressed in its:

A) Organization-wide strategic plan
B) Opportunity analysis
C) Tactical plans
D) Mission statement
E) Market segmentation strategy

Question 12

A market opportunity is viable and attractive if:

A) The firm has the marketing communications skills needed to reach that market
B) There are enough potential customers in that market for the needed product so that the total potential sales volume will be substantial
C) The opportunity is consistent with the mission and objectives of the company
D) The firm has the financial and human resources needed to reach that market
E) All of the above conditions are met

Question 13

Low cost, differentiation and niche are examples of __________ pursued by business units across a variety of industries.

A) Market exchanges
B) Generic exchanges
C) Sustainable competitive advantage
D) Customer orientations
E) Category management systems

Question 14

Relationships that result in strategic partnerships go through four stages including:

A) Awareness, exploration, expansion and commitment
B) Awareness, integration, designation and expansion
C) Exploration, change, dynamics, restoration
D) Suggestion, response, communication, concurrence
E) Beginning, adjustment, middle, end

Question 15

Evanscon manufactures refrigerator units that are sold to retailers that handle perishable products. It is a pioneer in product and market development. It offers a frequently changing product line and has been known to sacrifice short-term profits to gain a long-term stronghold in their market. According to Miles and Snow's Typology, Evanscon uses which of the following competitive strategies?

A) Niche
B) Differentiation
C) Defender
D) Analyzer
E) Prospector

Question 16

In return for the endorsement of its products, FTD Florists gives the AARP (Association of American Retired People) a reduced rate on all flower deliveries. FTD also gives the AARP back a percentage of sales it makes as a result of using the AARP name in its ads. AARP members have provided information to FTD about the types of flowers they like to give and receive and on the types of occasions when they believe flowers should be sent. This is an example of a ______ between a buyer and a seller.

A) Market exchange
B) Strategic partnership
C) Transactional relationship
D) Functional relationship
E) Transformational relationship

Question 17

As part of a sales organization, you are responsible for alerting the company to changes in external environment. Which of the following would most likely be your responsibility?

A) Cost control
B) Market sensing
C) Purchasing management
D) Strategy development
E) Environmental health and safety

Question 18

A strategic partnership between buyer and seller is identified by a:

A) Short-time horizon
B) Low concern for the other party
C) Collaborative relationship between the participants
D) Bargaining relationship between the participants
E) Cooperative relationship between the participants

Question 19

_____ relationships are relationships between buyer and seller based upon close personal friendships and a medium level of concern for the other party.

A) Strategic
B) Partnering
C) Transactional
D) Functional
E) Transformational

Question 20

Marvin almost always tells customers it will be three days before he can service their boat, knowing he usually will be able to come in one or two days. He uses this strategy to create

A) Customer exchange
B) Transactional partnership
C) Relationship approval
D) Customer delight
E) Transformational restructuring

Question 21

What is the basis of a sustainable competitive advantage?

Question 22

When developing selling objectives, what factors should be considered?

Question 23

According to Michael Porter, a firm practicing a niche strategy:

A) Has relative market share and emphasizes efficient-scale facilities
B) Dominates a particular target market although its overall market share may be low
C) Chooses high-growth markets while holding onto substantial mature markets
D) Attempts to pioneer in product/market development
E) Insulates itself from competitive rivalry by creating brand loyalty and the resulting lower sensitivity to price

Question 24

Full-line selling is a sales strategy that

A) Sells only the full line or nothing
B) Leverages marketing relationships to sell full line
C) Induces full line seller to reorder more rapidly
D) Defines the line over which market intermediaries must extend themselves to effectively manage CRM
E) Upgrades low-level relationships to full-line intermediaries

Question 25

Describe how a customer-centric or CRM philosophy influences the selling function in an organization.

Question 26

What is the difference between a push and pull strategy?

Question 27

How do personal selling activities change in the different stages of developing a business relationship?

Question 28

What are the advantages of CRM?

Question 29

The primary disadvantage inherent in the use of personal selling as the primary marketing communications tool is its:

A) Lack of flexibility
B) Ability to communicate with only a small number of customers
C) Two-way communication flow
D) Inconsistency from customer to customer
E) Ability to be used successfully with other marketing communications tools

Question 30

What questions does an organization need to address in order to improve the effectiveness of CRM initiatives?

Question 31

Bianca sells a wide variety of products. Once she has established a relationship with a customer, she often tries to sell whatever products she thinks the customer might be interested in. Bianca practices

A) Customer value selling
B) Cross-selling
C) Returns on customer investment selling
D) Efficient consumer selling
E) Integrated marketing

Question 32

Which of the following is NOT an advantage inherent in the use of personal selling as the primary marketing communications tool?

A) The large number of customers that can be reached
B) The amount of information that can be conveyed
C) The two-way communication flow
D) The ability to tailor messages to the needs of interests of specific customers
E) The type of information that can be transmitted to a customer

Question 33

What is customer relationship management?

Question 34

To build a relationship-based enterprise and to improve the effectiveness of CRM, managers need to address questions in what three areas?

Question 35

Hillary knows several of her customers' copier machines are old and likely to need frequent repair. Knowing this, she uses a/an __________ strategy to when selling to these customers.

A) Customer exchange
B) Transactional partnership
C) Upgrading
D) Customer delight
E) Full-line selling

Question 36

A Cleveland, Ohio, men's clothing manufacturer has a low industry market share, but it has a high market share with its target market, which is men shorter than 5'8"" tall. Which of Michael Porter's competitive strategies is this manufacturer using?

A) Niche
B) Differentiation
C) Defender
D) Analyzer
E) Prospector

Question 37

What is the lifetime value of a customer concept? How does it influence sellers?

Question 38

What are touchpoints? Where do they most often take place?

Question 39

Preferred supplier status represents

A) Attainment of market share dominance
B) Successful TQM marketing strategy
C) Functional relationship superiority
D) Increased commitment
E) Transformational security

Question 40

What is Michael Porter's typology of generic business strategies?

Question 41

The order from weakest to strongest market relationships is market exchanges, strategic partnerships and functional relationships.

Question 42

The goal in developing customer relationships is gaining customer loyalty.

Question 43

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

Question 44

Why do CRM initiatives fail?

Question 45

The improvement of post-sale customer service and loyalty:

A) Creates positive word-of-mouth for the seller and its products)
B) Allows a company to avoid the high costs associated with acquiring a new customer
C) Increases the number of customer referrals
D) Produces larger volume sales with lower selling and distribution costs
E) All of the above

Question 46

When a firm uses a push strategy, it:

A) Attempts to build strong customer demand for a product which it hopes will, in turn, encourage wholesalers and retailers to carry the product
B) Must expect to have a larger promotional budget than if it followed a pull strategy
C) Understands that advertising is the key to successful market development
D) Offers direct inducements to potential wholesalers and retailers to encourage them to carry a product
E) Must immediately follow it by implementing a pull strategy

Question 47

A company that wanted to measure its customers' levels of satisfaction should:

A) Not bother with determining why some customers are no longer buying its products
B) Rely solely on customer satisfaction measures as determined through survey and personal interview techniques
C) Not be concerned with how much a customer is buying from distributors of similar products
D) Look at customer satisfaction measures, annual retention rates as well as the frequency and size of customer purchases to determine customer satisfaction. Use an external market research company to determine customer satisfaction in order to make sure that the collected data are not biased

Question 48

A manufacturer of window air conditioning units that wanted to use a pull strategy could:

A) Create point-of-purchase displays to show how quiet a unit is
B) Develop a sales contest for retail salespeople of its units
C) Teach the retail salespeople how to offer advice on correctly installing the unit
D) Develop a just-in-time reordering system
E) Run a $25-off coupon in a New England regional magazine

Question 49

Convincing the accounting department to change its procedures to meet the needs of important customers is an example of external partnering.

Question 50

Generally, good objectives should be specific, measurable and realistically attainable.

Question 51

Many companies attempt full line selling as a means of getting their ""foot in the door.""

Question 52

TQM is often a requirement in order to gain preferred provider status.

Question 53

Which promotional tool should be used if a company's target market consists of relatively few customers who are geographically clustered together and who are likely to place relatively large orders?

A) Consumer sales promotions
B) Advertising
C) Personal selling
D) Consumer sales promotions
E) Publicity and public relations

Question 54

Prospector, defender and analyzer are three strategies to develop functional competencies.

Question 55

Strategic partnerships can be created with every customer.

Question 56

According to Michael Porter, competitive strategies can be based on cost, differentiation and niche.

Question 57

The first step in developing and implementing market strategies is programming the appropriate marketing mix.

Question 58

Both market sensing and relationship building can develop without the presence of adequate spanning processes.

Question 59

Personal selling fits into the marketing mix as part of a firm's product strategy.

Question 60

Many retailers employ a restocking system where sales information automatically leads to an order to replenish the store's inventory. This is known as a/an:

A) Automatic delivery system
B) Efficient consumer response system
C) Customer satisfaction guarantee system
D) Quantity control system
E) Emergency response shelving system

Question 61

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

A) Marketing planning
B) Knowledge discovery
C) Customer interaction
D) Touchpoint targeting
E) Analysis and refinement

Question 62

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

Question 63

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

Question 64

CRM is both a philosophy and a pragmatic system.

Question 65

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

Question 66

The major cause of growth in CRM is technology.

Question 67

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

A) What do our investors want and expect?
B) How do we centralize control?
C) Who are we?
D) How do we increase our control for change?
E) All of the above

Question 68

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

A) Targeted marketing
B) Customer relationship management CRM)
C) Market orientation
D) D. Enterprise resource planning ERP)
E) None of the above

Question 69

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:

A) Formalize customer loyalty
B) Fire some customers
C) Utilize a push and pull financial information strategy
D) Develop strategic, sustainable functional trusts
E) None of the above

Question 70

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

A) Increases advertising costs
B) Makes it easier to target specific customers
C) Allows greater competition based on service rather than price
D) Prevents overspending on low-value customers
E) Makes it easier to track effectiveness

Question 71

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

A) One-to-one; strategic partnerships
B) Customer loyalty; delivery
C) Data warehouse; data mining
D) Just-in-time data; efficient customer response ECR)
E) Preferred supplier; Total quality management TQM)

Question 72

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

A) Data warehousing ROI
B) Supply chain cost and revenues
C) Lifetime value of customers
D) Marketing mix profitability
E) ) Generic strategy returns

Question 73

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

Question 74

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

Question 75

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

Question 76

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

Question 77

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

Question 78

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

Question 79

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

Question 80

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

A) Lack of focus
B) Compiled procedures
C) Minimal buy-in
D) Business units are silos
E) All of the above