Bus2 130 Final Exam UPDATED
QUESTIONS AND CORRECT ANSWERS
What is marketing? - CORRECT ANSWER A social and managerial process by which
individuals obtain what they need and want through creating and exchanging products and value with
others
What is marketing? simple definition - CORRECT ANSWER Marketing is managing
profitable customer relationships
Why do we need marketing? - CORRECT ANSWER We need marketing as the process by
which companies engage customers, build strong customer relationships, and create customer value in
order to capture value from customers in return.
Five step marketing process to create and capture customer value - CORRECT ANSWER The
first four steps, companies work to understand consumers, create value, and build strong customer
relationships and the final step, customers reap the rewards of creating superior customer value.
the marketing mix - CORRECT ANSWER A set of marketing tools that work together to
engage customers, satisfy customer needs, and build customer relationships
4 P's - CORRECT ANSWER Price, Product, Place, Promotion
Five core customer and marketplace concepts - CORRECT ANSWER 1. Needs, wants,
demands
2. Marketing offers (products, services, information and experiences)
3. Value and satisfaction
4. Exchanges and relationships
5. Market
Market Offerings - CORRECT ANSWER some combination of products, services,
information, or experiences offered to a market to satisfy a need or want
,Products - CORRECT ANSWER Anything that can be offered to a market to satisfy a need or
want
Services - CORRECT ANSWER Activity or benefit offered for sale that is essentially
intangible and does not result in the ownership of anything
Marketing myopia - CORRECT ANSWER the mistake of paying more attention to the specific
products a company offers than to the benefits and experiences produced by these products
Small marketers look beyond the attributes of the products and services they sell. By orchestrating
several services and products, they create brand experiences for consumers
Market Segmentation - CORRECT ANSWER divides the market for a product category into
segments of consumers
brand's value proposition - CORRECT ANSWER the set of benefits and values it promises to
deliver to consumers to satisfy their needs
Target marketing - CORRECT ANSWER Process of selecting one or more segments to target
Customers form expectations about the value and satisfaction that various market offerings will
deliver and buy accordingly. (T/F) - CORRECT ANSWER True
Five alternative concepts under which organizations design and carry out their marketing strategies -
CORRECT ANSWER the production, product, selling, marketing and societal marketing
concepts
What does the marketing strategy do? - CORRECT ANSWER The marketing program builds
customer relationships by transforming the marketing strategy into action.
What does the marketing strategy outline? - CORRECT ANSWER The company's marketing
strategy outlines which customers it will serve and how it will create value for these customers. Next,
the marketer develops an integrated marketing program that will actually deliver the intended value to
target customers.
,Customer Relationship Management (CRM) - CORRECT ANSWER the overall process of
building and maintaining profitable customer relationships by delivering superior customer value and
satisfaction
Customer-perceived value - CORRECT ANSWER the customer's evaluation of the difference
between all the benefits and all the costs of a market offering relative to those of competing offers
Customer satisfaction - CORRECT ANSWER the extent to which a product's perceived
performance matches a buyer's expectations
Do companies go out of their way to satisfy consumers? - CORRECT ANSWER Outstanding
marketing companies go out of their way to keep important customers satisfied. Most studies show
that higher levels of customer satisfaction lead to greater customer loyalty.
Partner relationship management - CORRECT ANSWER working closely with partners in
other company departments and outside the company to jointly bring greater value to customers
Who do marketers work with? - CORRECT ANSWER Marketers must also partner with
suppliers, channel partners, and other outside the company. Marketing channels consist of distributors,
retailers, and others who connect the company to its buyers.
supply chain - CORRECT ANSWER longer channel stretching from raw materials to
components to final products that are carried to final buyers
customer lifetime value - CORRECT ANSWER the value of the entire stream of purchases a
customer makes over a lifetime of patronage
share of customer - CORRECT ANSWER the portion of the customer's purchasing that a
company gets in its product categories
How can companies increase share of consumer? - CORRECT ANSWER firms can offer
greater variety to current customers. Or they can create programs to cross-sell and up-sell to market
more products and services to existing customers.
, Customer equity - CORRECT ANSWER the total combined customer lifetime values of all of
the company's customers
What is the ultimate aim of customer relationship management? - CORRECT ANSWER
produce high customer equity.
Customer equity may be a better measure of a firm's performance than current sales or market share.
(T/F) - CORRECT ANSWER True
Strategic Planning - CORRECT ANSWER the process of developing and maintaining a
strategic fit between the organization's goals and capabilities and its changing marketing opportunities
What do strategic plans do? - CORRECT ANSWER Strategic planning sets the stage for the
rest of planning in the firm. Companies usually prepare annual plans.
Mission Statement - CORRECT ANSWER a statement of the organization's purpose - what it
wants to accomplish in the larger environment
Mission statements should be: - CORRECT ANSWER market oriented and defined in terms of
satisfying basic customer needs
Mission statements should also be: - CORRECT ANSWER meaningful and specific yet
motivating.
What questions should mission statements address? - CORRECT ANSWER what is our
business, who is our customer, what do consumers value, what should our business do
Business portfolio - CORRECT ANSWER the collection of businesses and products that make
up the company
What is the best business portfolio? - CORRECT ANSWER the one that best fits the
company's strengths and weaknesses to set opportunities in the environment
QUESTIONS AND CORRECT ANSWERS
What is marketing? - CORRECT ANSWER A social and managerial process by which
individuals obtain what they need and want through creating and exchanging products and value with
others
What is marketing? simple definition - CORRECT ANSWER Marketing is managing
profitable customer relationships
Why do we need marketing? - CORRECT ANSWER We need marketing as the process by
which companies engage customers, build strong customer relationships, and create customer value in
order to capture value from customers in return.
Five step marketing process to create and capture customer value - CORRECT ANSWER The
first four steps, companies work to understand consumers, create value, and build strong customer
relationships and the final step, customers reap the rewards of creating superior customer value.
the marketing mix - CORRECT ANSWER A set of marketing tools that work together to
engage customers, satisfy customer needs, and build customer relationships
4 P's - CORRECT ANSWER Price, Product, Place, Promotion
Five core customer and marketplace concepts - CORRECT ANSWER 1. Needs, wants,
demands
2. Marketing offers (products, services, information and experiences)
3. Value and satisfaction
4. Exchanges and relationships
5. Market
Market Offerings - CORRECT ANSWER some combination of products, services,
information, or experiences offered to a market to satisfy a need or want
,Products - CORRECT ANSWER Anything that can be offered to a market to satisfy a need or
want
Services - CORRECT ANSWER Activity or benefit offered for sale that is essentially
intangible and does not result in the ownership of anything
Marketing myopia - CORRECT ANSWER the mistake of paying more attention to the specific
products a company offers than to the benefits and experiences produced by these products
Small marketers look beyond the attributes of the products and services they sell. By orchestrating
several services and products, they create brand experiences for consumers
Market Segmentation - CORRECT ANSWER divides the market for a product category into
segments of consumers
brand's value proposition - CORRECT ANSWER the set of benefits and values it promises to
deliver to consumers to satisfy their needs
Target marketing - CORRECT ANSWER Process of selecting one or more segments to target
Customers form expectations about the value and satisfaction that various market offerings will
deliver and buy accordingly. (T/F) - CORRECT ANSWER True
Five alternative concepts under which organizations design and carry out their marketing strategies -
CORRECT ANSWER the production, product, selling, marketing and societal marketing
concepts
What does the marketing strategy do? - CORRECT ANSWER The marketing program builds
customer relationships by transforming the marketing strategy into action.
What does the marketing strategy outline? - CORRECT ANSWER The company's marketing
strategy outlines which customers it will serve and how it will create value for these customers. Next,
the marketer develops an integrated marketing program that will actually deliver the intended value to
target customers.
,Customer Relationship Management (CRM) - CORRECT ANSWER the overall process of
building and maintaining profitable customer relationships by delivering superior customer value and
satisfaction
Customer-perceived value - CORRECT ANSWER the customer's evaluation of the difference
between all the benefits and all the costs of a market offering relative to those of competing offers
Customer satisfaction - CORRECT ANSWER the extent to which a product's perceived
performance matches a buyer's expectations
Do companies go out of their way to satisfy consumers? - CORRECT ANSWER Outstanding
marketing companies go out of their way to keep important customers satisfied. Most studies show
that higher levels of customer satisfaction lead to greater customer loyalty.
Partner relationship management - CORRECT ANSWER working closely with partners in
other company departments and outside the company to jointly bring greater value to customers
Who do marketers work with? - CORRECT ANSWER Marketers must also partner with
suppliers, channel partners, and other outside the company. Marketing channels consist of distributors,
retailers, and others who connect the company to its buyers.
supply chain - CORRECT ANSWER longer channel stretching from raw materials to
components to final products that are carried to final buyers
customer lifetime value - CORRECT ANSWER the value of the entire stream of purchases a
customer makes over a lifetime of patronage
share of customer - CORRECT ANSWER the portion of the customer's purchasing that a
company gets in its product categories
How can companies increase share of consumer? - CORRECT ANSWER firms can offer
greater variety to current customers. Or they can create programs to cross-sell and up-sell to market
more products and services to existing customers.
, Customer equity - CORRECT ANSWER the total combined customer lifetime values of all of
the company's customers
What is the ultimate aim of customer relationship management? - CORRECT ANSWER
produce high customer equity.
Customer equity may be a better measure of a firm's performance than current sales or market share.
(T/F) - CORRECT ANSWER True
Strategic Planning - CORRECT ANSWER the process of developing and maintaining a
strategic fit between the organization's goals and capabilities and its changing marketing opportunities
What do strategic plans do? - CORRECT ANSWER Strategic planning sets the stage for the
rest of planning in the firm. Companies usually prepare annual plans.
Mission Statement - CORRECT ANSWER a statement of the organization's purpose - what it
wants to accomplish in the larger environment
Mission statements should be: - CORRECT ANSWER market oriented and defined in terms of
satisfying basic customer needs
Mission statements should also be: - CORRECT ANSWER meaningful and specific yet
motivating.
What questions should mission statements address? - CORRECT ANSWER what is our
business, who is our customer, what do consumers value, what should our business do
Business portfolio - CORRECT ANSWER the collection of businesses and products that make
up the company
What is the best business portfolio? - CORRECT ANSWER the one that best fits the
company's strengths and weaknesses to set opportunities in the environment
