You are on page 1of 7

TRUE / FALSE

1. Customer relationship management does not emphasize delivering superior


customer value.
2. The purpose of market targeting strategy is to select people or organizations
that management wishes to serve in the product-market
3. A strategic business unit (SBU) is a cohesive organizational unit that is
separately managed incurs costs and, does not generate sales.
4. A product-market consists of a specific product or product line that can satisfy
a set of needs and wants for the people willing and able to purchase it
5. Market sensing refers to the use of computerized, automated data collection
equipment to render the gathering and processing of large volumes of
demographic data.
6. All the major components of distinctive capabilities are organizational
processes and assets.
7. Acceptance of the market-oriented approach requires abandonment of the
traditional marketing concepts.
8. Marketing strategy seeks to identify/implement the firms distinctive
capabilities for satisfaction of customer value requirements.
9. For companies that are becoming market oriented the skills of top
management only are required.
10.Marketing managers typically enjoy the power to command the allocation of
all resources they feel necessary to the execution of the strategies they want
to implement
11.PepsiCo acquired SoBe beverages, extended brand into energy drink for the
school age market. PepsiCo defines its mission as serving the consumer, not
protecting the existing brand is an example of thinking within the competitive
box
12.Fast changing may sometimes be difficult to predict and strategy initiatives
may necessitate trial and error adjustments guided by market responses
13.Industry classification typically have a customer demand rather than supply
orientation
14.When analyzing capability to provide value to the customer the firm should
analyze the effectiveness of only its own value chain rather than concerning
itself with the value chain effectiveness of its suppliers and buyers
15.Demographic buyer profiles provide the best information for guiding targeting
and positioning decisions
16.Perceptual maps provide a useful means of visualizing, albeit in a simplified
way, the competitive positioning of competing brands
17.Mass customization offers a means of providing customized products at
affordable process
18.In consumer products the concept of a one size fils all mass market is
increasingly relevant[
19.Managerial segmentation links to the management vision and strategic intent
of corporate strategy and emphasize product benefits that different types of
buyers seeks

20.Examining specific market segments helps to identify how to compare the


organizations strength (and weaknesses) to key competitors in each
segment
21.Attitude is defined as how buyers select, organize, and interpret marketing
stimuli
22.The choice of segmentation strategy depends on the maturity of market
23.Customers standards for judging customer satisfaction involve nothing other
than pre-purchase expectations.
24.Perceived performance of competing product may also act as customers
standards for judging customer satisfaction
25.CRM gains competitive advantage when it makes customers dependent on
the firm (
26.Market orientation is BOTH a culture and ALSO a process committed to
achieving superior customer value.
27.The strategic perspective of CRM acknowledges that Customers vary in their
economic value to the company
28.CRM emphasizes that executes should focus on the organizations strategy on
customer profitability and the gains from reducing customer churn
29.All functions in the firm are likely to have an involvement with certain CRM
processes and activities

MCQs
1. When a company decides what organizations it wishes to serve in the productmarket, the company is engaged in choosing the _____.
A. Customer relationship management
B. Strategic marketing
C. Market target
D. Corporate positioning
2. Market orientation:
A)
B)
C)
D)

Leads the firm to disregard profit


requires that a marketing executive be elevated to CEO of the firm
requires cross-functional participation
makes the marketing department the focal point of the firm's total operations

3. Which of the following distinctive capabilities is MOST critical to the continuing


success of a firm;s new product development process?
A)
B)
C)
D)

Organizational process employed


skills and accumulated knowledge
tight coordination
financial assets

4. Value is:
A)
B)
C)
D)

Determined by management
determined by customers/consumers
defined solely on economic terms
defined by competitive offerings

5. Answering the questions 'which competitoes, whaat technologies and how


customers perceive being satisfied comes from
A)
B)
C)
D)

Market orientation
Competitor intelligence
Cross-functional coordination
Distinctive capabilities

6. _____ consist(s) of deciding the scope and purpose of the business, the objectives
and the resources necessary to achieve the objectives.
A. Corporate strategy
B. Business and marketing strategy
C. Market sensing
D. Customer relationship management
7. Which of the following has the greatest LONG RUN impact upon firms, industries,
and/or competitions?
A)
B)
C)
D)

Advertising
Pricing
Value migration
Distribution

8. New competitors may come from?


A)
B)
C)
D)

Firms currently in related product markets


Firms exploying related technologies
Firms already targeting similar product groups wit other products
any, or all, of the above

9. Whether the buyers of an industry's product have strong or weak bargaining


leverage over the terms and conditions of sale depends ona
A)

B)
C)

D)

E)

how often that sellers alter their prices, how sensitive buyers are to price
differences among sellers, whether the item being purchased is a good or
a service, and whether buyers buy frequently or infrequently.
the frequency with which rival firms change strategies and the amount of
advertising that sellers utilize.
whether all buyers have the same degree of negotiating power, whether
the item carries a high or low price tag, and whether there are many or
few collaborative partnerships between sellers and buyers.
whether buyers purchase in relatively large or small quantities,
whether the costs of switching to competing brands or to
substitute products are high or low, and how well informed
buyers are about sellers' prices, products, and costs.
whether buyer demand is seasonal or year-round, whether entry barriers
are high or low, and whether competitive pressures from substitutes are
strong or weak.

10. Which of the following conditions generally raise the barriers to entering an
industry?
A)
B)

Low levels of brand loyalty on the part of customers and the presence of
more than 20 rivals in the industry
Rapid market growth, low buyer switching costs, and weak brand
preferences and customer loyalty

C)
D)

Product offerings that are pretty much standardized from rival to rival
High capital requirements, difficulties in building a network of
distributors-retailers and securing adequate space on retailers'
shelves, and the likelihood that industry incumbents will strongly
contest the efforts of new entrants to gain a market foothold
The industry is not characterized by scale economies and/or sizable
learning/experience curve effects and few firms in the industry hold key
patents and/or possess significant proprietary technology not readily
available to a newcomer

E)

11. A _____ is the combination of the product, value chain, price and promotion
strategies a firm uses to position itself against its competitors in meeting the needs
of a market target.
A. Customer relationship strategy
B. Strategic market
C. Market target
D. Positioning strategy
12. The product, distribution, price and promotion strategy components are the
markeing _____
A)
B)
C)
D)

Relationship
Idea
Target
Mix

13. If critical inputs are in jeopardy or prices of those inputs are extraordinarily high, companies may
pursue vertical integration strategies or develop collaborative relationships to reduce the _____

A)
B)
C)
D)

rivalry among existing firms


bargaining power of buyers
threat of substitute products
bargaining power of suppliers

14. The distinctive capabilities of a firm:


A)
B)
C)
D)

may
may
may
any,

offer a potential to compete in several different markets


provide significant value for end-users
create "barriers" to competitive duplication
or all, of the above

15. The three main elements of the CRM are given below except one
A)
B)

Identifying, satisfying, retaining, and maximizing the value of a firm's best


customer
CRM may focus only on the creation and use of a customer database to
support

C)

Wrapping the firm around the customer to ensure that each contact with
the customer is appropriate and based upon extensive knowledge of both
the customer's needs and profitability
Creating a full picture of the customer

D)

16. which one is correct information when recording response to descriptive


information in the database created through CRM technology
A)

Whether the customer responded to specific advertising, a price offer, a


direct marketing initiative, or a sales call, or any other direct contact
Relevant description data that provide the basis for market segmentation
and targeted marketing communication
complete purchase history for each customer with accompanying
details(date, price paid, products purchased)
All customer contacts with the company and its distribution including
sales calls, service requests, complaints, inquiries, and loyalty program
participation

B)
C)
D)

17. Which of the following statements shows the concern of strategic level CRM
A)

considers the processes that are needed to fulfill required marketing


function
This level of CRM is concerned with coordinating information across all
contact channels on a continuing basis
It considers the implications of knowledge about customers and their
preferences across the entire company
None of the above

B)
C)
D)

18. Among the components of CRM Strategy Development which statement


indicates Value proposition
A)

is an assessment that indicates the shareholder value and financial return


of the delivery of the required customer value
Spells out what the organization must provide to customer in order to
satisfy customer expectation
How different customer segments will be formed and managed
Indicates the necessary initiatives to launch the CRM strategy - tha
changes which are required throughout the enterprise

B)
C)
D)

19.Which of the following is not among the factors that determine whether
competitive rivalry among industry members is strong, moderate, or weak?
A)
B)
C)

D)

Whether demand for the product is growing rapidly or slowly.


Whether customers' costs to switch brands is low or high.
How active industry rivals are in initiating fresh competitive moves and
in using the various weapons of competition to try to improve their
market standing and sales volumes
Whether there are few or many rival sellers and whether there are big
differences in their sizes and competitive capabilities.

E)

Whether industry members are vertically integrated and


whether the industry is characterized by significant scale
economies and rapid technological change.

20. Market segmentation may occur at any of the following product-market levels
EXCEPT:
A)
B)
C)
D)

The generic market


product type
product variant
segmentation may be usefully employed in any/all of the levels above.

21. In Best Buy example discussed in the chapter, which one decision illustrates
strategic segmentation
A)
B)
C)
D)

Supporting the segmentation strategy at store level


Providing employees with training and power to focus on the segment
targets
consumer lifestyles and benefits that different types of consumer seek
in choosing and purchasing consumer electronics
Designing relevant messages to targets

22. _____________are most often more useful to describe consumer segments after
they have been formed rather than to identify them
A)
B)
C)
D)

Psychographics
Demographics
Geographic
Perceptual maps

23. Which of the following factors has the greatest impact upon the consumer's
selection of a product/service for purchase?
A)
B)
C)
D)

needs
perceptions
attitudes
advertising

24. Which one of the statement shows the stability criteria for segmentation?
A)
B)
C)
D)

Ideally marketing efforts should focus on the segment of interest and


not be wasted non buyers
It should generate more sales and higher profits
Segment must show adequate stability over time so that the firm's
marketing efforts will have enough time to produce favorable results
It must be possible to identify customer group that exhibit response
differences