ABDT2043 FUNDAMENTALS OF MARKETING

TUTORIAL 1

MARKETING: CREATING AND CAPTURING CUSTOMER VALUE

Multiple-choice questions
1) Which of the following is most essential to any definition of marketing?
A) Demand management
B) The production concept
C) Customer relationships
D) Making a sale
E) Making a profit

2) Greg Williams now has the buying power to purchase the computer system he has
wanted for the last six months. Greg's want now has become a ________.
A) need
B) necessity
C) demand
D) satisfier
E) transaction

3) The ________ steps of the five-step marketing process are about understanding
customers, creating customer value, and building strong customer relationships.
A) first two
B) first three
C) first four
D) last three
E) last four

4) Which of the following is an example of a type of market offering?

A) Persons
B) Ideas
C) Information
D) Experiences
E) All of the above

5) ________ refers to sellers being preoccupied with their own products and losing
sight of underlying consumer needs.
A) Selling myopia
B) Marketing management
C) Value proposition
D) Marketing myopia
E) The product concept

6) In addition to attracting new customers and creating transactions, the goal of

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 marketing is to ________ customers and grow the company's business.
A) encourage
B) entertain
C) retain
D) recognize
E) educate

7) The art and science of choosing target markets and building profitable relationships
with them is called ________.
A) marketing management
B) positioning
C) segmentation
D) selling
E) societal marketing

8) Selecting which segments of a population of customers to serve is called ________.

A) market segmentation
B) positioning
C) customization
D) target marketing
E) choosing a value proposition

9) The set of marketing tools a firm uses to implement its marketing strategy is called
the ________.
A) promotion mix
B) product mix
C) marketing mix
D) TQM
E) marketing effort

10) Which of the following marketing management orientations focuses primarily on

improving efficiencies along the supply chain?
A) production concept
B) product concept
C) selling concept
D) marketing concept
E) societal marketing concept

11) The ________ concept holds that firms must strive to deliver value to customers in
a way that maintains or improves both the consumer's and society's well being.
A) marketing
B) selling
C) product
D) societal marketing
E) equity

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12) The three areas of consideration that should be balanced in the societal marketing
concept are consumer wants, society's interests, and ________.
A) human welfare
B) want satisfaction
C) company profits
D) short-run wants
E) long-term needs

13) Building and maintaining profitable value-laden relationships with customers of a

company is called ________.
A) customer lifetime value
B) customer perceived value
C) customer relationship management
D) database marketing
E) societal marketing

14) Which of the following is determined by a customer's personal evaluation of the

benefits and costs of a market offering relative to those of competing offers?
A) Customer-perceived value
B) Customer satisfaction
C) Customer-perceived performance
D) Customer relationship management
E) Market segmentation

15) The marketing world is embracing ________ because consumers can wield greater
power and control in the marketplace through communication technologies.
A) partner relationship management
B) supply chain management
C) customer-managed relationships
D) market segmentation
E) target marketing

16) Sally purchased a newly introduced moisturizing lotion. By attempting to find out if
the lotion's perceived performance matched her expectations, Sally was measuring
her level of customer ________.
A) loyalty
B) satisfaction
C) equity
D) engagement
E) lifetime value

17) Which of the following has NOT contributed to the deeper, more interactive nature
of today's customer relationships?
A) e-mail
B) Web sites
C) online social networks

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 D) traditional advertising
E) video sharing

18) To capture the full essence of customer relationship management, which of the
following should a marketing manager take into consideration?
A) owning customers for life
B) capturing a customer's lifetime value
C) building overall customer equity
D) creating a sense of community surrounding a brand
E) all of the above

19) The social-responsibility and environmental movements are expected to ________

in the future.
A) demand more from companies
B) demand less from companies
C) move away from sustainable marketing
D) move toward partner relationship management
E) move away from using social networking

20) The final steps of the marketing process focus on ________.

A) understanding the market
B) delivering customer service
C) creating value for customers
D) understanding customer demands and needs
E) capturing value from customers

21) ________ marketing calls for socially and environmentally responsible actions that
meet the present needs of consumers and businesses while also preserving or
enhancing the ability of future generations to meet their needs.
A) Sustainable
B) Customer driving
C) Mass
D) Customer-driven
E) Differential

22) The concept of ________ holds that a company's marketing should support the best
long-run performance of the marketing system.
A) consumerism
B) global marketing
C) sustainable marketing
D) the free enterprise system
E) consumer-oriented marketing

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True/False questions
23) Market offerings are limited to physical products.
(T/F)

24) When backed by buying power, needs become wants.

(T/F)

25) In the final step of a marketing process, a company reaps the rewards of its strong
customer relationships by capturing value from customers.
(T/F)

26) It is cheaper for a company to acquire new customers than to maintain relationships
with current customers.
(T/F)

27) Organizations that follow the societal marketing concept most likely practice
socially and environmentally responsible marketing.
(T/F)

28) Satisfying consumers' immediate needs and desires does not always serve the future
best interests of either customers or the business.
(T/F)

29) Today, enlightened companies implement environmental sustainability strategies

not because someone is forcing them to or to reap short-run profits but because it's
the right thing to do.
(T/F)

30) A company that makes marketing decisions by considering consumers' wants and
long-run interests, the company's requirements, and society's long-run interest must
be practicing consumer-oriented marketing.
(T/F)

Briefing on Course Plan, Coursework and Examination formats.