GB 350 Cascio Final Exam Questions
with Verified Answers
adoption - ANSWER-"onboarding" new customers by educating them about how to
use the product/service; offering an easy return process for dissatisfied customers
retention - ANSWER-delivering such a great experience that the customer comes
back when the need arises again; making it easy to come back
expansion - ANSWER-offering other products/services that existing customers might
need
advocacy - ANSWER-having a mechanism in place that allows happy customers to
sing your praises (e.g., product reviews)
market orientation involves - ANSWER-- Obtaining information about customers
(micro), competitors (micro), and markets (macro)
- Examining the information from a total business perspective (see next slide)
- Determining how to deliver superior customer value and optimize the customer
experience
- Implementing actions to provide value to customers
Goal of societal marketing orientation - ANSWER-- Satisfy customer wants
- Preserve or enhance individuals' and society's long-term best interests
Two obstacles that may face the societal marketing-oriented firm: - ANSWER--
meeting customer performance expectations
-justifying premium prices
Sales and market orientations can be compared in terms of five characteristics: -
ANSWER-1. The organization's focus
2. The firm's business
3. Those to whom the product is directed
4. The firm's primary goal
5. The tools used to achieve the organization's goals
The organization's focus can be on: - ANSWER-1. Market orientation: focus on
building long-term relationships through Customer-oriented personnel, Effective
training programs, Empowered employees with the authority to make decisions and
solve problems, Teamwork
2. Sales orientation: focus on short-term transactions for immediate sales volume
,Customer Relationship Management (CRM) - ANSWER-a company-wide business
strategy designed to optimize profitability, revenue, and customer satisfaction by
focusing on highly defined and precise customer groups
CRM is accomplished by - ANSWER--Organizing the company around customer
segments
-Establishing and tracking customer interactions with the company.
-Fostering customer-satisfying behaviors
-Linking all processes of the company from its customers through its suppliers
Companies that adopt CRM systems are almost always BLANK oriented -
ANSWER-market
In a sales-oriented firm, business is defined in terms of - ANSWER-goods/services
In a market-oriented firm, business is defined in terms of - ANSWER-benefits its
customers seek
benefits of a market-oriented firm - ANSWER-1. Ensures that the firm focuses on
providing solutions to customer needs instead of getting people to buy
2. Reinforces the idea that different customer segments may desire different benefits
from the same general product
3. Stimulates an awareness of changes in customer desires and preferences so that
product offerings are more likely to remain relevant
Sales-oriented firms target - ANSWER-everybody or "the average comsumer"
Market-oriented firms target - ANSWER-specific groups of customers for mutually
beneficial value exchanges using carefully strategized marketing strategies
goal of a sales-oriented firm - ANSWER-achieve profitability through sales volume
and tries to convince potential customers to buy, even if the seller knows that the
customer and product are mismatched
goal of a market-oriented firm - ANSWER-to be "profitable" (however they define it)
by:
- Creating customer value
- Providing customer satisfaction
- Building long-term relationships with customers
primary tool(s) used in a sales-oriented firm - ANSWER-promotion
primary tool(s) used in a market-oriented firm - ANSWER-Effective combination of
Product, Price, Distribution (Place), and Promotion
Why study marketing? - ANSWER-- Marketing plays an important role in society.
- Marketing is important to businesses.
- Marketing offers outstanding career opportunities.
- Marketing affects your life every day.
,Strategic Planning - ANSWER-the ongoing managerial process of creating and
maintaining a fit between the organization's objectives and resources and the
evolving market opportunities
Goals of strategic planning - ANSWER-long-term profitability and growth
strategic planning answers two questions - ANSWER-- What is the organization's
main activity at a particular time?
- How will the organization facilitate mutually beneficial value exchanges with
customers and other stakeholders at a particular time?
Strategic Business Unit (SBU) - ANSWER-a subgroup of a single business or
collection of related businesses within the larger organization
characteristics of an SBU - ANSWER-- A distinct mission and a specific target
market
- Control over its resources
- Its own competitors
- A single business or a collection of related businesses
- Plans independent of the other SBUs in the total organization
Ansoff's matrix: market penetration - ANSWER-present market, present product
goal: increase market share of existing offerings among existing customers
Ansoff's Matrix: market development - ANSWER-new market, present product
goal: attract new customers to existing offerings
Ansoff's matrix: product development - ANSWER-new product, present market
goal: develop new offerings to create value for existing customers
Ansoff's Matrix: diversification - ANSWER-new product, new market
Strategic Alternatives: innovation Matrix - ANSWER-Core Innovations, Adjacent
Innovations, and Transformational Innovations
core innovation - ANSWER-use existing products to serve existing markets
adjacent innovation - ANSWER-Add related products to enter adjacent markets
transformational innovation - ANSWER-Develop new products to create new
markets.
BCG Matrix - ANSWER-a means of evaluating strategic business units on the basis
of (1) their business growth rates and (2) their share of the market
Star product - ANSWER-Has a high market share in a fast-growth market.
, Cash cow product - ANSWER-Has a high market share in a low-growth market.
problem child (question mark) - ANSWER-a business unit that shows rapid growth
but poor profit margins
Dog product - ANSWER-Has a low market share in a low-growth market.
4/5 Strategies to Allocate Future Resources - ANSWER-1. Build - invest resources to
increase market share and/or demand
2. Hold - maintain existing strategy without adjustments (usually cash cows)
3. Harvest - take resources from sales and allocate to another product/SBU without
much concern for long-run prospects of the harvested product/SBU
4. Divest - sell product/unit to another entity or discontinue it altogether
5. Spin-off - transition a strategic unit to another one owned by the parent company,
or create a new SBU altogether
Marketing Plan - ANSWER-a written document that acts as a guidebook of
marketing activities for the marketing manager
Why write a marketing plan? - ANSWER-allows you to examine the marketing
environment in conjunction with the inner workings of the business.
A written marketing plan: - ANSWER-- Provides clearly stated activities that help
employees and managers understand and work toward common goals
- Serves as a reference point for the success of future activities
- Allows decision makers to enter the marketplace with an awareness of possibilities
and problems
Mission Statement - ANSWER-a statement of the firm's business based on a careful
analysis of benefits sought by present and potential customers and an analysis of
existing and anticipated environmental conditions
SWOT analysis is a process through which firms should: - ANSWER-- Identify their
internal strengths and weaknesses
- Examine their external opportunities and threats
SWOT analysis - ANSWER-(internal)
strengths
weaknesses
(external)
opportunities
threats
competitive advantage - ANSWER-a set of unique features of a company and its
products that are perceived by the target market as significant and superior to those
of the competition
The goal of a SWOT analysis is to - ANSWER-determine a SUSTAINABLE
competitive advantage, which cannot be copied by competition
with Verified Answers
adoption - ANSWER-"onboarding" new customers by educating them about how to
use the product/service; offering an easy return process for dissatisfied customers
retention - ANSWER-delivering such a great experience that the customer comes
back when the need arises again; making it easy to come back
expansion - ANSWER-offering other products/services that existing customers might
need
advocacy - ANSWER-having a mechanism in place that allows happy customers to
sing your praises (e.g., product reviews)
market orientation involves - ANSWER-- Obtaining information about customers
(micro), competitors (micro), and markets (macro)
- Examining the information from a total business perspective (see next slide)
- Determining how to deliver superior customer value and optimize the customer
experience
- Implementing actions to provide value to customers
Goal of societal marketing orientation - ANSWER-- Satisfy customer wants
- Preserve or enhance individuals' and society's long-term best interests
Two obstacles that may face the societal marketing-oriented firm: - ANSWER--
meeting customer performance expectations
-justifying premium prices
Sales and market orientations can be compared in terms of five characteristics: -
ANSWER-1. The organization's focus
2. The firm's business
3. Those to whom the product is directed
4. The firm's primary goal
5. The tools used to achieve the organization's goals
The organization's focus can be on: - ANSWER-1. Market orientation: focus on
building long-term relationships through Customer-oriented personnel, Effective
training programs, Empowered employees with the authority to make decisions and
solve problems, Teamwork
2. Sales orientation: focus on short-term transactions for immediate sales volume
,Customer Relationship Management (CRM) - ANSWER-a company-wide business
strategy designed to optimize profitability, revenue, and customer satisfaction by
focusing on highly defined and precise customer groups
CRM is accomplished by - ANSWER--Organizing the company around customer
segments
-Establishing and tracking customer interactions with the company.
-Fostering customer-satisfying behaviors
-Linking all processes of the company from its customers through its suppliers
Companies that adopt CRM systems are almost always BLANK oriented -
ANSWER-market
In a sales-oriented firm, business is defined in terms of - ANSWER-goods/services
In a market-oriented firm, business is defined in terms of - ANSWER-benefits its
customers seek
benefits of a market-oriented firm - ANSWER-1. Ensures that the firm focuses on
providing solutions to customer needs instead of getting people to buy
2. Reinforces the idea that different customer segments may desire different benefits
from the same general product
3. Stimulates an awareness of changes in customer desires and preferences so that
product offerings are more likely to remain relevant
Sales-oriented firms target - ANSWER-everybody or "the average comsumer"
Market-oriented firms target - ANSWER-specific groups of customers for mutually
beneficial value exchanges using carefully strategized marketing strategies
goal of a sales-oriented firm - ANSWER-achieve profitability through sales volume
and tries to convince potential customers to buy, even if the seller knows that the
customer and product are mismatched
goal of a market-oriented firm - ANSWER-to be "profitable" (however they define it)
by:
- Creating customer value
- Providing customer satisfaction
- Building long-term relationships with customers
primary tool(s) used in a sales-oriented firm - ANSWER-promotion
primary tool(s) used in a market-oriented firm - ANSWER-Effective combination of
Product, Price, Distribution (Place), and Promotion
Why study marketing? - ANSWER-- Marketing plays an important role in society.
- Marketing is important to businesses.
- Marketing offers outstanding career opportunities.
- Marketing affects your life every day.
,Strategic Planning - ANSWER-the ongoing managerial process of creating and
maintaining a fit between the organization's objectives and resources and the
evolving market opportunities
Goals of strategic planning - ANSWER-long-term profitability and growth
strategic planning answers two questions - ANSWER-- What is the organization's
main activity at a particular time?
- How will the organization facilitate mutually beneficial value exchanges with
customers and other stakeholders at a particular time?
Strategic Business Unit (SBU) - ANSWER-a subgroup of a single business or
collection of related businesses within the larger organization
characteristics of an SBU - ANSWER-- A distinct mission and a specific target
market
- Control over its resources
- Its own competitors
- A single business or a collection of related businesses
- Plans independent of the other SBUs in the total organization
Ansoff's matrix: market penetration - ANSWER-present market, present product
goal: increase market share of existing offerings among existing customers
Ansoff's Matrix: market development - ANSWER-new market, present product
goal: attract new customers to existing offerings
Ansoff's matrix: product development - ANSWER-new product, present market
goal: develop new offerings to create value for existing customers
Ansoff's Matrix: diversification - ANSWER-new product, new market
Strategic Alternatives: innovation Matrix - ANSWER-Core Innovations, Adjacent
Innovations, and Transformational Innovations
core innovation - ANSWER-use existing products to serve existing markets
adjacent innovation - ANSWER-Add related products to enter adjacent markets
transformational innovation - ANSWER-Develop new products to create new
markets.
BCG Matrix - ANSWER-a means of evaluating strategic business units on the basis
of (1) their business growth rates and (2) their share of the market
Star product - ANSWER-Has a high market share in a fast-growth market.
, Cash cow product - ANSWER-Has a high market share in a low-growth market.
problem child (question mark) - ANSWER-a business unit that shows rapid growth
but poor profit margins
Dog product - ANSWER-Has a low market share in a low-growth market.
4/5 Strategies to Allocate Future Resources - ANSWER-1. Build - invest resources to
increase market share and/or demand
2. Hold - maintain existing strategy without adjustments (usually cash cows)
3. Harvest - take resources from sales and allocate to another product/SBU without
much concern for long-run prospects of the harvested product/SBU
4. Divest - sell product/unit to another entity or discontinue it altogether
5. Spin-off - transition a strategic unit to another one owned by the parent company,
or create a new SBU altogether
Marketing Plan - ANSWER-a written document that acts as a guidebook of
marketing activities for the marketing manager
Why write a marketing plan? - ANSWER-allows you to examine the marketing
environment in conjunction with the inner workings of the business.
A written marketing plan: - ANSWER-- Provides clearly stated activities that help
employees and managers understand and work toward common goals
- Serves as a reference point for the success of future activities
- Allows decision makers to enter the marketplace with an awareness of possibilities
and problems
Mission Statement - ANSWER-a statement of the firm's business based on a careful
analysis of benefits sought by present and potential customers and an analysis of
existing and anticipated environmental conditions
SWOT analysis is a process through which firms should: - ANSWER-- Identify their
internal strengths and weaknesses
- Examine their external opportunities and threats
SWOT analysis - ANSWER-(internal)
strengths
weaknesses
(external)
opportunities
threats
competitive advantage - ANSWER-a set of unique features of a company and its
products that are perceived by the target market as significant and superior to those
of the competition
The goal of a SWOT analysis is to - ANSWER-determine a SUSTAINABLE
competitive advantage, which cannot be copied by competition
