Deck 11: Building Customer Relationships Through Effective Marketing

Question 1

Is the business buyer or the individual consumer more likely to know more about the product being purchased? Support your answer.

Answer 1

Answer not provided.

Question 2

Caroline's Crafts 'N Things
Sarah works for a retail shop called Caroline's Crafts 'N Things.Sarah was often quite rude to customers when they annoyed her.One morning, her supervisor asked Sarah into her office and informed her that her behavior was unacceptable.To be rude to one customer could cause several customers not to come back.Sarah's supervisor told her that retaining a customer is much cheaper than trying to get a new one.After their constructive discussion, Sarah's boss told her that she wanted her to go out on the floor that day and attempt to be more helpful to customers.
Over the next few months, Sarah began to help customers learn more about the different products in the store and often explained why the customer might want to purchase one product over another.In doing so, she realized the importance of her role in the retail shop and began to truly enjoy her job.She started to think about the future of the company.She even thought that the company could do very well if it were to sell its products on eBay.When she brought this idea to her boss, her boss thought it was excellent, and asked Sarah to look further into the pros and cons of her idea.
After evaluating Sarah's research, her boss decided to move forward with the idea, asking Sarah to head up this new venture for the company.Sarah then realized that retail is not just about making the sale; the customer should be the focus of all operations.Sarah now looks up to her boss, and is very glad that she was there to mentor her.
Refer to Caroline's Crafts 'N Things.When Sarah was brought into her boss's office, what was her manager trying to explain?

A) customer motivation
B) customer lifetime value
C) disposable income
D) marketing information system
E) possession utility

Answer 2

B

Question 3

Would personal income, disposable income, or discretionary income be of the greatest interest to marketers? Explain your answer.

Answer 3

Answer not provided.

Question 4

Your Best, Inc.
Christie worked for a retail company and noticed there were many things which could be done.She shared some of her ideas with upper management, but it did not want to do things differently.When Christie went home to talk to her husband, they both realized that, given her passion, it would be better for Christie to open her own business.After a lot of consideration, she decided to open a sporting goods store called Your Best, Inc.She also knew just where to open the store-right next to her house.
To be certain to address all aspects of the business, Christie hired a marketing research firm to determine the best location.Once all the research was compiled and analyzed, she realized that it would actually be better to open the store in a different area.She also realized that deciding where to locate the business was not the only major concern.More specifically, she would have to focus on the four elements of the marketing mix as well, creating a whole marketing plan.Her husband mentioned the possibility of using online information services to help with the business.With her husband's support and a good marketing plan, Christie felt that she would be prepared to make the right decisions.

-Refer to Your Best, Inc.Marketing research involves

A) satisfying customers.
B) determining a target market.
C) creating a product mix.
D) interpreting information.
E) product promotion.

Question 5

Caroline's Crafts 'N Things
Sarah works for a retail shop called Caroline's Crafts 'N Things.Sarah was often quite rude to customers when they annoyed her.One morning, her supervisor asked Sarah into her office and informed her that her behavior was unacceptable.To be rude to one customer could cause several customers not to come back.Sarah's supervisor told her that retaining a customer is much cheaper than trying to get a new one.After their constructive discussion, Sarah's boss told her that she wanted her to go out on the floor that day and attempt to be more helpful to customers.
Over the next few months, Sarah began to help customers learn more about the different products in the store and often explained why the customer might want to purchase one product over another.In doing so, she realized the importance of her role in the retail shop and began to truly enjoy her job.She started to think about the future of the company.She even thought that the company could do very well if it were to sell its products on eBay.When she brought this idea to her boss, her boss thought it was excellent, and asked Sarah to look further into the pros and cons of her idea.
After evaluating Sarah's research, her boss decided to move forward with the idea, asking Sarah to head up this new venture for the company.Sarah then realized that retail is not just about making the sale; the customer should be the focus of all operations.Sarah now looks up to her boss, and is very glad that she was there to mentor her.
Refer to Caroline's Crafts 'N Things.Sarah should understand that all except which of the following are different types of utilities?

A) form
B) time
C) possession
D) place
E) market

Question 6

Identify and describe the four major types of utility.Which one is influenced indirectly by marketing efforts?

Question 7

What are the major steps in the consumer buying decision process? Describe the factors that are believed to affect this process.

Question 8

Explain the difference between marketing research and marketing information systems.

Question 9

Your Best, Inc.
Christie worked for a retail company and noticed there were many things which could be done.She shared some of her ideas with upper management, but it did not want to do things differently.When Christie went home to talk to her husband, they both realized that, given her passion, it would be better for Christie to open her own business.After a lot of consideration, she decided to open a sporting goods store called Your Best, Inc.She also knew just where to open the store-right next to her house.
To be certain to address all aspects of the business, Christie hired a marketing research firm to determine the best location.Once all the research was compiled and analyzed, she realized that it would actually be better to open the store in a different area.She also realized that deciding where to locate the business was not the only major concern.More specifically, she would have to focus on the four elements of the marketing mix as well, creating a whole marketing plan.Her husband mentioned the possibility of using online information services to help with the business.With her husband's support and a good marketing plan, Christie felt that she would be prepared to make the right decisions.

-Refer to Your Best, Inc.In preparing a marketing plan, Christie should ensure that all except which of the following components are included?

A) executive summary
B) SWOT analysis
C) production schedule
D) environmental analysis
E) evaluation and control

Question 10

How is relationship marketing related to the marketing concept?

Question 11

What does it mean for a firm to have a strong production orientation? How does this differ from the marketing concept?

Question 12

What are the four main elements of the marketing mix?

Question 13

What is a market?

Question 14

Caroline's Crafts 'N Things
Sarah works for a retail shop called Caroline's Crafts 'N Things.Sarah was often quite rude to customers when they annoyed her.One morning, her supervisor asked Sarah into her office and informed her that her behavior was unacceptable.To be rude to one customer could cause several customers not to come back.Sarah's supervisor told her that retaining a customer is much cheaper than trying to get a new one.After their constructive discussion, Sarah's boss told her that she wanted her to go out on the floor that day and attempt to be more helpful to customers.
Over the next few months, Sarah began to help customers learn more about the different products in the store and often explained why the customer might want to purchase one product over another.In doing so, she realized the importance of her role in the retail shop and began to truly enjoy her job.She started to think about the future of the company.She even thought that the company could do very well if it were to sell its products on eBay.When she brought this idea to her boss, her boss thought it was excellent, and asked Sarah to look further into the pros and cons of her idea.
After evaluating Sarah's research, her boss decided to move forward with the idea, asking Sarah to head up this new venture for the company.Sarah then realized that retail is not just about making the sale; the customer should be the focus of all operations.Sarah now looks up to her boss, and is very glad that she was there to mentor her.
Refer to Caroline's Crafts 'N Things.Doing business on eBay allows an entrepreneur to

A) develop a business-to-business selling model.
B) develop form utility.
C) create place utility.
D) find out what works, fast.
E) explore producer markets.

Question 15

Caroline's Crafts 'N Things
Sarah works for a retail shop called Caroline's Crafts 'N Things.Sarah was often quite rude to customers when they annoyed her.One morning, her supervisor asked Sarah into her office and informed her that her behavior was unacceptable.To be rude to one customer could cause several customers not to come back.Sarah's supervisor told her that retaining a customer is much cheaper than trying to get a new one.After their constructive discussion, Sarah's boss told her that she wanted her to go out on the floor that day and attempt to be more helpful to customers.
Over the next few months, Sarah began to help customers learn more about the different products in the store and often explained why the customer might want to purchase one product over another.In doing so, she realized the importance of her role in the retail shop and began to truly enjoy her job.She started to think about the future of the company.She even thought that the company could do very well if it were to sell its products on eBay.When she brought this idea to her boss, her boss thought it was excellent, and asked Sarah to look further into the pros and cons of her idea.
After evaluating Sarah's research, her boss decided to move forward with the idea, asking Sarah to head up this new venture for the company.Sarah then realized that retail is not just about making the sale; the customer should be the focus of all operations.Sarah now looks up to her boss, and is very glad that she was there to mentor her.
Refer to Caroline's Crafts 'N Things.Caroline's purchased its Thanksgiving products in June.However, in October, when the store finally displays the Thanksgiving products, which form of utility is being provided?

A) possession
B) place
C) market
D) time
E) form

Question 16

What are the major forces in the marketing environment?

Question 17

Your Best, Inc.
Christie worked for a retail company and noticed there were many things which could be done.She shared some of her ideas with upper management, but it did not want to do things differently.When Christie went home to talk to her husband, they both realized that, given her passion, it would be better for Christie to open her own business.After a lot of consideration, she decided to open a sporting goods store called Your Best, Inc.She also knew just where to open the store-right next to her house.
To be certain to address all aspects of the business, Christie hired a marketing research firm to determine the best location.Once all the research was compiled and analyzed, she realized that it would actually be better to open the store in a different area.She also realized that deciding where to locate the business was not the only major concern.More specifically, she would have to focus on the four elements of the marketing mix as well, creating a whole marketing plan.Her husband mentioned the possibility of using online information services to help with the business.With her husband's support and a good marketing plan, Christie felt that she would be prepared to make the right decisions.

-Refer to Your Best, Inc.Christie thought about focusing on the four elements of the marketing mix.Which of the following is one of those elements?

A) production
B) price
C) power
D) possession
E) personal income

Question 18

Your firm would like to implement the marketing concept.What information will you need? Since the acquisition of information costs money, justify your need for this information.

Question 19

What are the major components of a marketing plan?

Question 20

What is a company sales forecast? Why is it important to the sales department as well as to the people who handle raw materials inventory, finished-goods inventory, hiring, and advertising?

Question 21

The utility created by converting production inputs into finished products is called ____ utility.

A) form
B) time
C) production
D) place
E) possession

Question 22

The utility created by making a product available when customers wish to purchase it is called ____ utility.

A) form
B) time
C) production
D) place
E) possession

Question 23

Using information about customers to create marketing strategies that develop and sustain desirable long-term customer relationships is known as _____.

A) computer resource management
B) customer resource management
C) customer relationship management
D) customer research management
E) e-marketing

Question 24

When John returned a shirt he had purchased at JCPenney for a refund, he essentially reversed the effect of which type of utility?

A) form
B) possession
C) time
D) transfer
E) place

Question 25

When Food Lion grocery stores offer milk and eggs at all of its locations, it is providing customers with ____ utility.

A) time
B) place
C) form
D) marketing
E) possession

Question 26

Your Best, Inc.
Christie worked for a retail company and noticed there were many things which could be done.She shared some of her ideas with upper management, but it did not want to do things differently.When Christie went home to talk to her husband, they both realized that, given her passion, it would be better for Christie to open her own business.After a lot of consideration, she decided to open a sporting goods store called Your Best, Inc.She also knew just where to open the store-right next to her house.
To be certain to address all aspects of the business, Christie hired a marketing research firm to determine the best location.Once all the research was compiled and analyzed, she realized that it would actually be better to open the store in a different area.She also realized that deciding where to locate the business was not the only major concern.More specifically, she would have to focus on the four elements of the marketing mix as well, creating a whole marketing plan.Her husband mentioned the possibility of using online information services to help with the business.With her husband's support and a good marketing plan, Christie felt that she would be prepared to make the right decisions.

-Refer to Your Best, Inc.When Christie's business gets going, her income less all additional personal taxes would be called her _____.

A) business buying behavior
B) disposable income
C) IRS imposed income
D) discretionary income
E) total loss

Question 27

Arthur was a salesperson for a manufacturing firm in the late 1920s.Which of the following would his employer most likely have asked him to do?

A) use high-pressure sales techniques to sell more of the company's high production output
B) nothing, because at this time production lagged well behind customer demand
C) simply take orders from customers and turn them in to the company
D) find out what customers really want and how the company can change its products to better meet customer needs
E) develop long-term relationships with clients

Question 28

Your Best, Inc.
Christie worked for a retail company and noticed there were many things which could be done.She shared some of her ideas with upper management, but it did not want to do things differently.When Christie went home to talk to her husband, they both realized that, given her passion, it would be better for Christie to open her own business.After a lot of consideration, she decided to open a sporting goods store called Your Best, Inc.She also knew just where to open the store-right next to her house.
To be certain to address all aspects of the business, Christie hired a marketing research firm to determine the best location.Once all the research was compiled and analyzed, she realized that it would actually be better to open the store in a different area.She also realized that deciding where to locate the business was not the only major concern.More specifically, she would have to focus on the four elements of the marketing mix as well, creating a whole marketing plan.Her husband mentioned the possibility of using online information services to help with the business.With her husband's support and a good marketing plan, Christie felt that she would be prepared to make the right decisions.

-Refer to Your Best, Inc.If Christie were to use information services available online, they would offer her access to which of the following?

A) databases
B) financial assistance
C) physical location
D) production materials
E) disposable income

Question 29

The organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders is _____.

A) production
B) the chain of command
C) marketing
D) distribution
E) dispersion

Question 30

Between the 1920s and the 1950s, business had a strong ____ orientation, in which emphasis was placed on increased advertising, enlarged sales forces, and occasionally high-pressure selling techniques.

A) production
B) sales
C) marketing
D) customer
E) organizational

Question 31

A Corvette, a dinner at the Olive Garden, and an overnight stay at a Hilton Hotel all satisfy human needs.Therefore, each

A) is a service.
B) is a convenience product.
C) possesses utility.
D) is unique.
E) is created for an unsegmented market.

Question 32

The process of shipping fresh flowers from California to Texas gives ____ utility to the flowers.

A) form
B) time
C) place
D) possession
E) very little

Question 33

Car dealers are financed by automobile manufacturers, and Wal-Mart receives financing from its wholesalers and manufacturers.What marketing functions do such activities perform?

A) physical distribution
B) standardization
C) marketing information
D) financing
E) storage

Question 34

Mattel, Inc.selects suppliers and obtains raw materials to make toys.The company is engaged in which function of marketing?

A) selling
B) buying
C) storing
D) financing
E) risk taking

Question 35

Wal-Mart has its own trucks that ship merchandise to its warehouses from the supplier for backstock purposes.Wal-Mart is carrying out which of the following functions?

A) contracting with suppliers
B) standardizing and grading its facilities
C) buying and selling
D) risking obsolescence of its products
E) transporting and storing

Question 36

The marketing activities associated with time, place, and possession utility account for about ____ of every consumer dollar spent.

A) ten cents
B) one-fourth
C) one-third
D) one-half
E) three-fourths

Question 37

From the beginning of the Industrial Revolution until the early twentieth century, business effort was directed mainly toward

A) developing new machinery.
B) the production of goods.
C) the development of new markets.
D) keeping the cost of labor low.
E) fighting unionization.

Question 38

By selling Christmas trees from late November through December, Home Improvement is providing ____ utility.

A) form
B) possession
C) place
D) time
E) marketing

Question 39

The utility created by transferring ownership of a product to a buyer is called ____ utility.

A) form
B) place
C) time
D) possession
E) ownership

Question 40

Club Med Inc.talks to its present and potential customers to assess their needs for its products.Then it develops products to satisfy those needs.The firm is thus applying the ____ concept.

A) production orientation
B) sales orientation
C) marketing
D) physical distribution
E) facilitating

Question 41

If Carolyn Smith purchases office supplies for her home office from which she operates her insurance business, she is a member of which type of market?

A) consumer
B) business-to-business
C) reseller
D) institutional
E) producer

Question 42

Teenagers spend billions of dollars on stereo equipment and compact discs.They have the ability, willingness, and authority to purchase such products because of their perceived need.These teenagers are an example of a(n) ____ market.

A) consumer
B) business-to-business
C) producer
D) governmental
E) institutional

Question 43

Dell Computer Corporation sells personal computers to colleges and universities, hospitals, civic clubs, charitable organizations, and foundations.This market is called a(n) ____ market.

A) consumer
B) producer
C) governmental
D) institutional
E) reseller

Question 44

A plan that will enable an organization to make the best use of its resources to meet its objectives is called a _____.

A) production plan
B) marketing program
C) marketing strategy
D) promotional plan
E) marketing orientation

Question 45

A market is a group of individuals and/or organizations that have needs for products in a given category and have the ability, willingness, and ____ to purchase such products.

A) utility
B) credit
C) desire
D) money
E) authority

Question 46

Emerson, an electronics manufacturer, purchases the wires it needs to make televisions and stereos from various wire manufacturers.Emerson is a part of which type of market?

A) institutional
B) governmental
C) consumer
D) producer
E) reseller

Question 47

Which of the following indicates a customer orientation?

A) increasing advertising
B) taking orders from customers
C) distributing goods to customers
D) intensifying sales techniques
E) developing products that fulfill customers' needs

Question 48

Federated Insurance wants to expand its line of life insurance products by introducing a new policy.In keeping with the marketing concept, it likely will research all except which of the following?

A) what price level is acceptable to customers
B) what features potential customers are most interested in
C) who the major competitor's most recent buyers are
D) what promotional activities will best illustrate the new product's benefits
E) where the product should be distributed

Question 49

Which of the following is not one of the steps in implementing the marketing concept?

A) obtaining information about existing and potential customers
B) pinpointing needs and potential customers for further marketing activities
C) mobilizing marketing resources to provide, promote, and distribute products
D) obtaining new information about effectiveness of efforts
E) the selection and analysis of a target market

Question 50

To implement the marketing concept, a firm must first

A) mobilize its marketing resources.
B) promote the product.
C) obtain information about its customers' needs.
D) develop the product.
E) determine if customers want the firm to practice the marketing concept.

Question 51

During the 1950s, the marketing concept began to develop as business managers recognized that they were not primarily producers or sellers but rather were in the business of

A) satisfying customers' needs.
B) researching new technologies.
C) developing human resources.
D) developing corporate cultures.
E) creating positive public relations.

Question 52

Sears buys finished products and sells them for a profit to its customers.Sears is a part of which type of market?

A) consumer
B) producer
C) governmental
D) institutional
E) reseller

Question 53

Western Civic Club's goals differ from those of a profit-driven business, meaning that it is part of a(n) ____ market.

A) producer
B) governmental
C) institutional
D) consumer
E) organizational

Question 54

Morton Salt Company designs a single marketing mix and directs it at the entire market.The company is using the ____ approach.

A) target market
B) undifferentiated
C) market segmentation
D) concentrated
E) differentiated

Question 55

Business-to-business markets include all of the following except ____ markets.

A) producer
B) governmental
C) institutional
D) financial
E) reseller

Question 56

Topps, a company that produces baseball cards, develops its products to appeal primarily to males who are baseball fans.This group is Topps's _____.

A) business-to-business market
B) market segmentation
C) promotion strategy
D) target market
E) marketing mix

Question 57

Southside Distributors in Los Angeles distributes beverages for a major corporation in Kansas City.It is specifically a part of a(n) ____ market.

A) reseller
B) governmental
C) institutional
D) consumer
E) organizational

Question 58

A marketing strategy consists of the selection and analysis of a target market and

A) the examination of potential market regions.
B) the determination of product features and benefits to meet the customers' needs.
C) decisions about how to distribute the product and at what price.
D) decisions about how and where to advertise and promote the product.
E) the creation and maintenance of an appropriate marketing mix.

Question 59

When Pepsi decides to develop a new product, it creates the product itself, determines the price the new product will sell for, decides how to distribute the product to consumers, and develops a promotion campaign to inform the market of the new product.Pepsi has created a(n) _____.

A) marketing strategy
B) consumer market
C) undifferentiated approach
D) market segmentation
E) marketing mix

Question 60

Markets are classified as either

A) producer or consumer.
B) institutional or reseller.
C) governmental or institutional.
D) reseller or consumer.
E) consumer or business-to-business.

Question 61

Products that can be marketed successfully with the undifferentiated approach include sugar and _____.

A) cars
B) clothing
C) writing pens
D) flour
E) furniture

Question 62

Females in a market can be classified as a(n) _____.

A) a market segment
B) a marketing mix
C) market segmentation
D) an independent market
E) a classified market

Question 63

Bic ballpoint pens appeal to price-conscious consumers because of their affordability.Bic has segmented its market on a ____ basis.

A) behavioristic
B) geographic
C) brand-related
D) psychographic
E) demographic

Question 64

Furs Unlimited is using a combination of advertising and personal selling to increase the sales of its fur coats.This activity involves the ____ ingredient of the marketing mix.

A) distribution
B) promotion
C) pricing
D) timing
E) product

Question 65

The Terminator Home Security Company markets its infrared alarm system to urban residents who are more likely to experience a theft than their rural counterparts.This is an example of ____ segmentation.

A) demographic
B) brand-related
C) psychographic
D) geographic
E) behavioristic

Question 66

A single marketing mix consists of one type of product with little or no variation, one price, one promotional program aimed at everyone, and ____ distribution system(s) to reach all customers in the total market.

A) five
B) four
C) three
D) two
E) one

Question 67

Kelly Warren owns a frozen yogurt shop.She has decided to focus her marketing efforts on health-conscious customers.Kelly is using the ____ approach.

A) differentiated
B) undifferentiated
C) concentrated
D) target market
E) marketing-mix

Question 68

When Target decides the number and locations of warehouses it needs to build and operate, it is addressing the ____ element of the marketing mix.

A) price
B) distribution
C) promotion
D) storage
E) product

Question 69

Ikea furniture store promotes its furniture to its target market based on its customers' personality attributes and lifestyles.Therefore, it is segmenting the furniture market on which type of basis?

A) demographic
B) behavioristic
C) psychographic
D) geographic
E) social class

Question 70

Which of the following is not a major marketing mix element?

A) price
B) distribution
C) promotion
D) packaging
E) product

Question 71

The product Centrum Silver is positioned as a vitamin supplement for older adults.The makers of Centrum Silver have segmented the vitamin market on a ____ basis.

A) behavioristic
B) demographic
C) psychographic
D) brand-related
E) geographic

Question 72

The elements of the marketing mix are combined to

A) demonstrate the expertise of the marketing staff.
B) meet product display requirements.
C) encourage in-house support for marketing.
D) fulfill trade show and other promotional commitments.
E) satisfy the target market.

Question 73

Betty and Carole recently opened a local candy store.They considered the entire market of candy eaters as their market.Which targeting strategy did they use in choosing a target market for their store?

A) market segmentation
B) undifferentiated approach
C) differentiated
D) concentrated
E) the marketing-mix approach

Question 74

A group of persons for whom a firm develops and maintains a marketing mix suitable for the group's specific needs and preferences is commonly referred to as a target _____.

A) unit
B) segment
C) market
D) source
E) demand

Question 75

Which of the following is the most likely basis on which a market for boats can be segmented?

A) the end use of the product
B) the size of the product
C) the product's proximity to a retail outlet
D) religion
E) the color of the product

Question 76

The process of dividing a market into segments is called _____.

A) market grouping
B) market segmentation
C) market sampling
D) target marketing
E) consumer sampling

Question 77

When KFC Corporation decides on brand names, package designs, sizes of orders, and flavors of sauces and recipes, it is controlling which element of marketing mix?

A) price
B) distribution
C) product
D) promotion
E) chicken

Question 78

Fern Motors is offering a rebate on cars purchased this month.This activity involves the ____ ingredient of the marketing mix.

A) distribution
B) promotion
C) pricing
D) timing
E) product

Question 79

General Motors uses multiple marketing mixes for its various divisions and focuses these marketing mixes on various segments of the automobile-purchasing market.General Motors uses

A) concentrated market segmentation.
B) an undifferentiated approach.
C) differentiated market segmentation.
D) segmentation by function.
E) mixed market segmentation.

Question 80

A market segment toward which a company directs its marketing effort is called a _____.

A) marketing group
B) marketing sample
C) target market
D) consumer market
E) marketing median