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Strategic Marketing MCQs – Customers and marketing

Marketing consists of individual and organisational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment

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Strategic Marketing MCQs

Marketing consists of individual and organisational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion and pricing of goods, services and ideas. Here on MCQs.CLUB we have written useful Multiple-Choice Questions (MCQs) on Strategic Marketing the fully cover practice questions and quizzes on The Role of Strategic Marketing in an Organisation and why is it so important?, market development strategy with example of marketing strategy, marketing mix strategy, the pricing strategies in marketing, strategic brand management, marketing consumer, the types of strategies in marketing, product positioning strategy example. These Marketing MCQ With Answers & Explanation are also useful for business management exams, professional accountancy exams and competitive exams.

Which of the following is correct regarding ‘Marketing’?

1. Marketing as a concept of the way business should be done must be distinguished from marketing as a business function.
2. Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.
3. Marketing consists of individual and organisational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion and pricing of goods, services and ideas.
4. All of the above

A successfully implementing the marketing concept requires the whole organisation to be responsible for meeting customer needs.

1. True
2. False

Which of the following is correct regarding ‘Marketing audit’?

1. The marketing audit an important aspect of marketing control, it can be used to provide much information and analysis for the corporate planning process.
2. Marketing Audit is ‘a systematic examination of a business’s marketing environment, objectives, strategies, and activities, with a view to identifying key strategic issues, problem areas and opportunities’.
3. The marketing audit provides the basis upon which a plan of action to improve marketing performance can be built.
4. All of the above

The Marketing Audit provides answers to the questions in relation to a firm’s marketing strategy such as:

1. Where are we now?
2. How did we get here?
3. Where are we heading?
4. All of the above

The results of the marketing audit are a key determinant of the future direction of the business, and may even give rise to a redefined mission statement for the business as a whole.

1. True
2. False

The aspects of a marketing audit are:

1. Market analysis (such as Market size, buyer behavior, barriers to entry)
2. Strategic issues analysis and Review of marketing mix effectiveness
3. Marketing structure and Marketing systems
4. All of the above

Which of the following is correct regarding ‘Market sensing’?

1. Market Sensing – How the people within an entity understand and react to the external marketplace, and the way it is changing.
2. Market sensing relate to how this information is interpreted and understood by decision-makers in a company, so that that company can fulfil customer’s requirements more successfully than its competitors.
3. Both A&B
4. None

The role of the management accountant in marketing is to provide the company with the information it requires in order to be able to market itself successfully. The management accountant can produce information on where revenues come from. Identify which of the following is correct?

1. The product view follows the idea that the products a company sells are the source of its earnings and so the more products a company sells, the greater its revenues will be.
2. The customer view believes that customers are the source of revenue and, as such, customer relationships and loyalty are the drivers of success.
3. Both A&B
4. None

If an organisation adopts the product view and decides that products are its source of revenue, then issues such as its product portfolio and the product life cycle will be crucial considerations in developing its strategy.

1. The above statement is correct
2. The above statement is incorrect

Brand – A brand is ‘a name, term, sign, symbol or design or combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors’.

1. The above definition is correct
2. The above definition is incorrect

If organisations are adopting a product view of marketing, then brands and brand strategy are also likely to be an important aspect of their marketing approach. The reasons for branding are:

1. The more a product is similar to competing goods, the more branding is necessary to create a separate product identity.
2. Brand loyalty in customers gives a manufacturer more control over marketing strategy and choice of channels of distribution.
3. Brands can have much longer life cycles than products, especially when the technology is developing rapidly.
4. All of the above

Brand positioning is a crucial part of marketing strategy, because in order to develop an effective marketing strategy, a firm also has to decide how to position its product or service in the marketplace. Functions of a brand are linked to the logic of positioning to:

1. Distinguish a company’s offering, and to differentiate one particular product from competitor products
2. Deliver an expected level of quality and satisfaction
3. Help with promotion of the product and to develop awareness of it
4. All of the above

Brand positioning helps to guide marketing strategy by clarifying: what a brand is; how it is unique or how it is different from competing brands; and why consumers should purchase and use the brand.

1. True
2. False

The decision as to whether a brand name should be given to a range of products or whether products should be branded individually depends on quality factors. Which of the following is correct?

1. If the brand name is associated with quality, all goods in the range must be of that standard.
2. If a company produces different quality (and price) goods for different market segments, it would be unwise to give the same brand name to the higher and the lower quality goods.
3. Both A&B
4. None

Which of the following is correct?

1. Segments are groups of customers with similar needs that can be targeted with a distinctly positioned marketing mix.
2. A Product (goods or services) is anything that satisfies a need or want. It is not a ‘thing’ with ‘features’ but a package of benefits.
3. Both A&B
4. None

The immediate task of a marketing manager with respect to the products of the organisation may be:

1. To develop a latent demand
2. To revitalise a sagging demand
3. To sustain a buoyant demand (maintenance marketing)
4. To reduce excess demand
5. All of the above

Many products might satisfy the same customer need. On what basis might a customer choose?

1. Customer value is the customer’s estimate of how far a product or service goes towards satisfying their need(s).
2. Every product has a cost, so the customer must trade-off between expenditure and value.
3. Customers must feel they get a better deal from buying an item than by the alternatives.
4. All of the above

Which of the following is correct?

1. The customer is the person or organisation buying the product or service.
2. The consumer is the person who uses the product or receives the benefit of the service.
3. Both A&B
4. None

Consumer goods – Consumer goods are ready to be used by the consumer without the need for any further commercial processing.

1. True
2. False

Consumer goods are classified according to the method by which they are purchased. They include:

1. Convenience goods (Everyday purchases and likely to be produced by several manufacturers).
2. Shopping goods (Goods for which customers are more discriminating).
3. Speciality goods (The customer will ask for it by name and seek out a dealer who sells it).
4. All of the above

Business or government buyers are motivated as:

1. Price – Where profit margins in the final market are under pressure, the buyer of industrial goods will probably make price the main purchasing motivation.
2. Budgetary control – may encourage the buying department to look further afield for potential suppliers to obtain a better price or quality of goods.
3. Purchasing procedures – The availability of written quotations, legal contracts, or service level agreements could be important for business buyers.
4. All of the above

Market segmentation –

1. Market segmentation recognises that every market consists of potential buyers with different needs, and different buying behaviour. It is relevant to a focus strategy.
2. Market segmentation is ‘the subdividing of a market into distinct and increasingly homogeneous subgroups of customers, where any subgroup can conceivably be selected as a target market to be met with a distinct marketing mix’.
3. Both A&B
4. None

Reasons for segmenting markets include:

1. Better satisfaction of customer needs
2. Growth in Revenue/profits
3. Customer retention
4. All of the above

Customers could be classified into customer segments using a variety of other segmentation bases such as:

1. Geography – location of the customers
2. Socioeconomic group, or social class
3. Stage in the family life cycle
4. Level of education
5. All of the above

The traditional bases for the segmentation of the industrial market include:

1. customer type
2. product/technology
3. customer size
4. purchasing procedures
5. All of the above

A market segment will only be valid if it is worth designing and developing a unique marketing mix for that specific segment.

1. True
2. False

Organisations are not usually able to sell with equal efficiency and success to the entire market, that is to every market segment. It is necessary to select target markets. Which of the following is correct?

1. Undifferentiated marketing – produce a single product and hope to get as many customers as possible to buy it; that is, ignore segmentation entirely.
2. Concentrated marketing – the company attempts to produce the ideal product for a single segment of the market.
3. Differentiated marketing – the company attempts to introduce several product versions, each aimed at a different market segment.
4. All of the above

The choice between undifferentiated, differentiated or concentrated marketing as a marketing strategy will depend on factors such as:

1. The extent to which the product and/or market is homogeneous.
2. The company’s resources must not be over extended by differentiated marketing.
3. The product must be sufficiently advanced in its life cycle to have attracted a substantial total market.
4. All of the above

Customer relationship marketing means using marketing resources to retain, rather than simply attract, customers. It focuses on establishing loyalty among the existing customers.

1. True
2. False

Which of the following is correct regarding ‘Relationship marketing’?

1. Relationship marketing is the use of marketing resources to maintain and exploit a firm’s existing customers, rather than using marketing resources solely to attract new customers.
2. Firms can implement their relationship marketing strategy through effective customer relationship management.
3. Both A&B
4. None

Customer relationship management (CRM) – is the establishment, development, maintenance and optimisation of long-term, mutually valuable, relationships between consumers and organisations.

1. True
2. False

What customer relationship management involves?

1. Organisations must become ‘customer centric’
2. Organisations must be prepared to adapt so that they take customer needs into account and then deliver them
3. Market research must be used to assess customer needs and satisfaction
4. All of the above

What Company benefits realised as a result customer relationship management?

1. Improved customer retention
2. Improved cross-selling
3. Improved profitability
4. All of the above

Phases of CRM (particularly in relation to e-business and e-commerce management) include:

1. Customer acquisition
2. Customer retention
3. Customer extension
4. All of the above

Which of the following is correct?

1. Customer acquisition is the process of attracting customers for their first purchases.
2. Customer retention ensures that customers return and buy for a second time. The organisation keeps them as customers.
3. Customer extension introduces products and services to loyal customers that may not wholly relate to their original purchases.
4. All of the above

Which of the following is correct regarding ’transactional marketing’?

1. Importance of single sale and product features
2. Quality is concern of production
3. Both A&B
4. None

Which of the following is correct regarding ’relationship marketing’?

1. Importance of customer relations and customer benefits
2. Quality is concern of all
3. High customer service
4. All of the above

A number of strategies can be implemented in relation to customer relationship marketing and to develop loyalty towards an organization such as:

1. Develop appropriate staff incentive schemes
2. Obtain senior management buy-in
3. Monitor customer relationships and act appropriately
4. All of the above

Key customer analysis considers several main areas of customer analysis. A firm might wish to identify which customers offer most profit. Such main areas include:

1. Key customer identity
2. Customer history
3. Relationship of customer to product
4. Relationship of customer to potential market
5. Customer attitudes and behavior
6. The financial performance of the customer

1. (I) (III) and (V) only
2. (III) (IV) and (VI) only
3. All of the above
4. None

Customer Profitability Analysis (CPA) –

1. Customer profitability analysis is an analysis of the total sales revenue generated from a customer or customer group, less all the costs that are incurred in servicing that customer group.
2. Analysis of the revenue streams and service costs associated with specific customers or customer groups.
3. Both A&B
4. None

Limitations of Customer Profitability Analysis (CPA) are:

1. CPA may lead to flawed decision making if it only looks at current revenues and costs, and overlooks the life cycle value of the customer.
2. It tends to be used on single products but, in practice, customers may buy a range of products.
3. Both A&B
4. None

Which of the following is correct for Customer life cycle value (CLV)?

1. Customer life cycle value (CLV) is the present value of the future cash flows attributed to the life cycle of an organisation’s relationship with a customer.
2. CLV shows how much each customer is worth to an organisation; and therefore, shows that organisation how much they should be prepared to spend on acquiring and retaining that customer.
3. Both A&B
4. None

In practice, firms have to make some assumptions in order to calculate CLV. Key assumptions are:

1. Churn rate – The percentage of customers that end their relationship with the organisation in any given period – Organisations tend to assume that churn rate remains constant.
2. Retention cost. The amount of time and money the company has to spent in order to retain an existing customer.
3. Both A&B
4. None

Which of the following is correct for ‘Database marketing’?

1. Database marketing illustrates how organisations can use databases to assist with the direct marketing of products.
2. Database marketing is the analysis and use of customer databases in supporting communication and other relationship-building contacts with customers.
3. Customer data held in computerised databases can be interrogated and manipulated in various ways through the process of data mining.
4. All of the above

Database marketing techniques can be used for a range of relationship marketing projects, including:

1. Identifying the most profitable customers, using RFM analysis (Recency of the latest purchase, Frequency of purchases and Monetary value of all purchases).
2. Personalising customer service, by providing service staff with relevant customer details.
3. Tailoring messages and offerings, based on customers’ purchase profiles.
4. All of the above

An organisation’s customer database and potential customer database represents a major source of trade. The company can use it to generate repeat business, or to stimulate new business.

1. True
2. False

Data warehousing –

1. A data warehouse consists of a database, containing data from various operational systems, and reporting and query tools.
2. Data warehouse – A data warehouse is a large-scale data collection and storage area, containing data from various operational systems, plus reporting and query tools which allow the data to be analysed.
3. The key feature of a data warehouse is that it provides a single point for storing a coherent set of information which can then be used across an organisation for management analysis and decision making.
4. All of the above

A data warehouse is:

1. Subject-oriented – A data warehouse is focused on data groups not application boundaries.
2. Integrated Data – within the data warehouse must be consistent in format and codes used.
3. Time-variant – Data is organised by time and stored in time-slices.
4. Non-volatile – Data cannot be changed within the warehouse. Only load and retrieval operations are made.
5. All of the above

Advantages of setting up a data warehouse system include:

1. Decision makers can access data without affecting the use of operational systems.
2. Having a wide range of data available to be queried easily encourages the taking of a wide perspective on organisational activities.
3. Data warehousing can enable faster responses to business queries, not only by storing data in an easily accessible central repository, but also by using online analytical processing (OLAP) technologies.
4. All of the above

Limitations of data warehouses are:

1. The data held may be outdated.
2. An efficient regular routine must be established to transfer data into the warehouse.
3. A warehouse may be implemented and then, as it is not required on a day-to-day basis, be ignored.
4. All of the above

Data mining –

1. Data mining software looks for hidden patterns and relationships in large pools of data.
2. Data mining is concerned with the discovery of meaningful relationships in the underlying data.
3. Both A&B
4. None

The types of relationships or patterns that data mining may uncover may be classified as:

1. Classification or cluster – the identification of patterns within the database between a range of data items.
2. Association – One event can be linked or correlated to another event.
3. Forecasting – Trends are identified within the data that can be extrapolated into the future.
4. All of the above

E-marketing is the application of IS and internet techniques to achieve marketing objectives. Most marketing activities can be enhanced by the use of such techniques, including branding, customer service and sales.

1. The above statement is correct
2. The above statement is incorrect

Specific benefits of e-marketing are:

1. Lower cost – a properly planned and effectively targeted e-marketing campaign can reach the right customers at a much lower cost than traditional marketing methods.
2. 24-hour marketing – with a website your customers can find out about your products even if your office is closed.
3. One-to-one marketing – e-marketing lets you reach people who want to know about your products and services instantly.
4. All of the above

Social media marketing refers to the process of acquiring customers and attracting the attention of potential customers through social media sites.

1. True
2. False

What does buying products online offer which purchasing offline does not?

1. The buyer knows immediately about product features, the facts, not a sales person’s interpretations.
2. The ability to deliver interactivity and more detailed information through the internet is the key to enhancing the augmented or extended product offering online.
3. Both A&B
4. None

Types of e-commerce marketplace include:

1. B2C and B2B
2. C2C and Auctions
3. Consumer reviews and Customer bids
4. All of the above

The aspects of navigation that are key to achieving competitive advantage online are:

1. Reach – this is the potential audience of the e-commerce site. Reach can be increased by moving from a single site to representation with a large number of different intermediaries
2. Richness – this is the depth or detail of information which is both collected about the customer and provided to the customer.
3. Affiliation – this refers to whose interest the selling organisation represents – consumers or suppliers.
4. All of the above

—more to come soon—

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