MK101: Principles of Marketing ANSWER SECTIONS
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1 MK101: Principles of Marketing Chapter 1: Marketing: Creating and Capturing Customer Value Student Name: Student ID:..Group:. Study Time:. Room:.. Lecturer:. ANSWER SECTIONS I. Multiple Choice (40 Marks) II. True/False (20 Marks) I. Multiple choices (20 marks) 1. What is the definition of marketing? A. The process in which needs and wants are obtained by creating and exchanging value with others. B. A process of identifying new products C. Coordinating production assembly lines D. Producing products and services for consumers E. Bidding on products and services 2. How does the marketing process serve consumers? A. By focusing on customers' needs, wants and demands. B. By creating global business opportunities C. It captures value from customers D. It develops buying power E. By forming strategic business alliances 3. What are the key building blocks for developing and managing customer relationships? A. Customer value and gaining the competitive edge B. Customer value and customer satisfaction C. High expectation levels D. Product innovation and global marketing strategies E. Building partnerships
2 4. When would a company practice DE marketing? A. To temporarily or permanently reduce demand B. To eliminate a product C. To satisfy the wants, needs, and demands of customers D. To mislead competitors E. To avoid filing bankruptcy 5. Identify the three considerations companies should balance when setting their marketing strategies. A. Company profits, society's interests, and consumer wants B. Existing products, customer needs, and market trends C. Customer wants, integrated marketing techniques, and profit margins D. Selling concepts, product integrity, and customer base E. Marketing trends, promotions, and long-run welfare 6. What is the key to building lasting customer relationships? A. Delivering superior customer value and satisfaction B. Developing a concrete societal marketing strategy C. Reducing customer costs D. Customer evaluation surveys E. Developing competitive marketing strategies 7. What is the purpose of marketing? A. To attract global customers B. To develop new products C. To generate customer value profitably D. To create brand-building advertising E. To increase sales promotions 8. What is the new view of marketing? A. To gain a competitive edge by any means necessary B. The science and art of finding, retaining, and growing profitable customers C. Using the Internet to market products and services D. To sell products using direct marketing techniques E. To build partner relationships 9. When a company loses a customer they lose sales opportunities and. A. Customer lifetime value B. Customer loyalty C. Stock options D. Global business opportunities E. Customer equity 10. How do social responsibility and environmentalism impact marketing? A. They require marketers to have greater responsibility for their actions. B. They don't have an impact on marketing. C. Their impact is minimal and only concern marketing strategies D. Social responsibility and environmentalism are not important to marketing. E. Social responsibility and environmentalism only impact for-profit businesses.
3 11. Identify the fourth step in the marketing process model. F. Building profitable relationships and creating customer delight G. Identifying new products H. Coordinating assembly lines I. Labeling products J. Bidding on products 12. A marketing offer combines products, services, information, or experiences offered to a market to. A. Help identify a market segment B. Fulfill the needs and wants of consumers C. Capture value from customers D. Avoid marketing mistakes E. Prevent marketing myopia 13. What are the two questions marketing managers answer when designing winning strategies? A. What's our target market? What's our value proposition? B. What is the target market? What is the product value? C. What is the most effective market strategy? Who are our competitors? D. What should our selling concept be centered on? Will our product serve the modern marketing system? E. Will the global market benefit from the product? Will the product have to be demarcated in the future? 14. Why do customer-driven companies conduct current customer research? A. To understand selling concepts B. To differentiate societal marketing concepts and production time lines C. To gather new service and product ideas, conduct tests for improving products, and to learn about customer desires D. To design customer-driven marketing strategies E. To investigate marketing management orientations 15. Identify the Four P's of marketing. A. Product, price, place, and promotion B. Promise to produce, promise to promote, price, and performance C. Producing for consumer satisfaction, profits, promise to deliver timely, and price analysis D. Pricing, performance, purchase order entries, and profit margins E. Planning, programming, performing, and producing 16. What do societal and financial benefits help build? A. Marketing strategy B. New products C. Strategic marketing plans D. Customer relationships E. A competitive edge
4 17. Why do companies use customer relationship management? A. To completely satisfy customers B. To build long-term relationships and financial stability C. To develop new products D. To retain current customers and build profitable long-term relationships E. To emphasize the importance of strategic marketing 18. Why do companies form cross-functional teams? A. To create customer value B. To develop partnerships in the global economy C. To monitor supply chain management D. To build customer development teams E. To improve employee morale 19. How is leveraging customer relationships accomplished? A. By partnering with competitors B. By focusing on customer equity C. By developing innovative marketing techniques D. By marketing on the Internet E. By offering current customers greater variety 20. What is the most important aspect of marketing? A. Building relationships with competitors B. Building profitable, value-laden relationships with target customers C. Understanding differentiation and positioning D. Managing marketing technology E. Pricing, distributing, and promoting new products II. True or False ( 10 marks) 1. When companies want to create profits they capture value from customers. 2. Marketing creates and exchanges value with others. 3. One goal of marketing is to retain customers. 4. Buyers also participate in marketing. 5. Companies develop marketing strategies to build profitable customer relationships.
5 6. Marketing companies go out of their way to satisfy important customers. 7. Mass marketing is no longer practiced by firms. 8. Distributors and retailers are part of the marketing channels. 9. Different relationship management strategies are necessary for different types of customers. 10. Customers can design, order, and pay for products and services. 11. Pricing, distributing, and promoting new products 12. Marketing management may be defined as a technique used to obtain financial resources. 13. When a company remarkets a product, the product is destroyed. 14. The selling concept consists of an inside-outside perspective that begins with the market. 15. The most important aspect of modern marketing is gaining competitive advantage. 16. Companies use selective relationship management to sever business ties with late-paying customers. 17. Strategic partnerships are necessary for companies to be effective.
6 18. The goal of customer relationship management is to provide discounts for repeat customers. 19. According to the text, "brick-and-mortar" companies have become "click-andmortar" companies. 20. Global competition affects small, medium, and large companies. III. Questions ( 40 marks) 1. What steps should companies take to ensure that their customers are delighted? 2. How has the new digital age affected marketing strategies? 3. Explain value proposition and provide an example by using a company's product or service (i.e. McDonald's hamburgers, shakes, or French fries, Toyota Camry, or Corolla, or Listerine mouthwash). 4. Identify the five alternative concepts used to design and carry out the marketing strategies of organizations.
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