Deck 12: Building Customer Relationships Through Effective Marketing

Question 1

What four main elements does the marketing mix contain?

Answer 1

Answer not provided.

Question 2

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

Answer 2

Answer not provided.

Question 3

Your Best, Inc.
Marietta worked for a retail company and noticed there were many things it could do better. She shared some of her ideas with upper management, but management did not want to do things differently. When Marietta went home to talk to her husband, they both realized that, given her passion, it would be better for Marietta 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, Marietta 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, Marietta 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.

Answer 3

D

Question 4

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 5

Explain the difference between marketing research and marketing information systems.

Question 6

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

Question 7

What is a market?

Question 8

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

Question 9

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

Question 10

Why would relationship marketing be valuable to a company? Why would it be valuable to a customer?

Question 11

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

Question 12

Describe the three major targeting strategies, and give an example of each.

Question 13

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 14

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 15

How is relationship marketing related to the marketing concept?

Question 16

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 17

What are the major forces in the marketing environment?

Question 18

What are the major components of a marketing plan?

Question 19

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

Question 20

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 of the following are different types of utilities except

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

Question 21

Car dealers are financed by automobile manufacturers, and Walmart 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 22

Your Best, Inc.
Marietta worked for a retail company and noticed there were many things it could do better. She shared some of her ideas with upper management, but management did not want to do things differently. When Marietta went home to talk to her husband, they both realized that, given her passion, it would be better for Marietta 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, Marietta 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, Marietta felt that she would be prepared to make the right decisions.
Refer to Your Best, Inc. If Marietta 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 23

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 24

New Seasons Market, a locally owned and operated one-stop grocery store based in Portland, Oregon is committed to providing local products for its particular customer base. New Seasons strives to deepen customer trust and loyalty by keeping close and regular connection with customers in a quest to better understand the customers' needs and desires. New Seasons Market is creating a model for

A) form utility.
B) customer relationship management.
C) relationship marketing..
D) customer research management.
E) market segmentation.

Question 25

Your Best, Inc.
Marietta worked for a retail company and noticed there were many things it could do better. She shared some of her ideas with upper management, but management did not want to do things differently. When Marietta went home to talk to her husband, they both realized that, given her passion, it would be better for Marietta 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, Marietta 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, Marietta felt that she would be prepared to make the right decisions.
Refer to Your Best, Inc. Marietta 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 26

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 27

Walmart has its own trucks that ship merchandise to its warehouses from the supplier for backstock purposes. Walmart 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 28

Which of the following is not one of the four commonly recognized forms of utility?

A) Form
B) Time
C) Production
D) Place
E) Possession

Question 29

____ utility is the only type of utility created by the production process.

A) Form
B) Time
C) Production
D) Place
E) Possession

Question 30

What focuses on using information about customers to create marketing strategies that develop and sustain desirable customer relationships?

A) Customer relationship management
B) Electronic data interchange
C) Business-to-consumer marketing
D) Strategic partnerships
E) The marketing concept

Question 31

Your Best, Inc.
Marietta worked for a retail company and noticed there were many things it could do better. She shared some of her ideas with upper management, but management did not want to do things differently. When Marietta went home to talk to her husband, they both realized that, given her passion, it would be better for Marietta 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, Marietta 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, Marietta felt that she would be prepared to make the right decisions.
Refer to Your Best, Inc. In preparing a marketing plan, Marietta should ensure that all of the following components are included except a(n)

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

Question 32

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 33

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 34

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 35

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

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

Question 36

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 37

Your Best, Inc.
Marietta worked for a retail company and noticed there were many things it could do better. She shared some of her ideas with upper management, but management did not want to do things differently. When Marietta went home to talk to her husband, they both realized that, given her passion, it would be better for Marietta 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, Marietta 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, Marietta felt that she would be prepared to make the right decisions.
Refer to Your Best, Inc. When Marietta'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 38

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

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

Question 39

Sheridan Marcy is getting married on Saturday. She purchases flowers for the church ceremony early Saturday morning from a local flower shop. Which of the following types of utility is not created by this activity?

A) Form
B) Place
C) Time
D) Possession
E) Ownership

Question 40

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 41

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 42

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 43

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 technique 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 44

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 45

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 of the following except

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

Question 46

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 47

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 48

An approach to marketing that involves the entire business organization in the process of satisfying customers' needs while achieving the organization's goals is called

A) market utility.
B) market segmentation.
C) marketing systems.
D) the marketing concept.
E) the market plan.

Question 49

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 50

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 51

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 52

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) All are steps in implementing the marketing concept.

Question 53

Burlington Coat Factory manufactures its winter jackets in April but does not display them in its stores until early September. Burlington recognizes the importance of ____ utility.

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

Question 54

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 55

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 56

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 57

The Bitty-Baby Store wants to update its way of doing business from the methods of the sales era to the more current methods of the marketing concept. Which of the following tactics will not be a step in the right direction?

A) Creating cross-departmental teams to generate more new-product ideas
B) Doubling its advertising budget to reach its customers more frequently
C) Attempting to obtain more information from present customers
D) Finding new distribution methods that improve delivery times
E) Modifying pricing structures to increase sales

Question 58

In the 1920s, producers had to shift to a new sales orientation, which was characterized by all of the following except

A) taking orders and delivering goods.
B) increasing advertising.
C) determining what goods consumers wanted.
D) enlarging the sales force.
E) using occasional high-pressure selling techniques.

Question 59

Teenagers spend billions of dollars on smart phones, music downloads, and video games. 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 60

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 61

All of the following are types of business-to-business markets except ____ markets.

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

Question 62

Rufus opened a fast-food restaurant on the corner of First and Main Streets in a small town. He named the restaurant The Hamburger Place. He offered one type of hamburger (a juicy homemade hamburger), for which he designed a marketing mix for the entire hamburger-eater market in town. What approach did he use in choosing a target market?

A) Market segmentation
B) Target market
C) Differentiated
D) Undifferentiated
E) Marketing-mix

Question 63

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 64

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 65

Females in a market can be classified as

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

Question 66

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 67

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 68

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 69

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 70

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 71

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 72

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 73

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 74

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 75

Kari 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 76

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 77

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 78

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.

Question 79

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 80

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

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