Marketing Strategy and Competition

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What is the primary focus of marketing strategy according to the provided definition?

To allocate resources to different departments within the organization

To create value for stakeholders without considering competitors

To build a sustainable differential advantage relative to competitors in the minds of customers (correct)

To enhance firm performance without considering customer perspective

What was the original context of the concept of strategy?

Financial planning

Military operations (correct)

Marketing and sales

Business management

In the 1990s, marketers emphasized the importance of whose perspective in marketing strategy?

The competitor's perspective

The customer's perspective (correct)

The organization's perspective

The shareholder's perspective

Who should be responsible for marketing, according to Jack Welch?

Every department within the organization Signup and view all the answers

What is the corporate strategy responsible for?

Determining the overall scope and direction of the firm Signup and view all the answers

What is the current situation in many organizations regarding marketing?

Marketing does not have a place of importance in the organizational hierarchy Signup and view all the answers

What is the primary focus of a selling orientation?

Maximize sales of present products Signup and view all the answers

What is the main difference between a market driving and market driven orientation?

One is proactive and the other is responsive Signup and view all the answers

What is the key characteristic of a product orientation?

Development of products with the most quality and performance Signup and view all the answers

What is the goal of a market orientation?

To determine and satisfy consumer needs Signup and view all the answers

What is the main difference between latent and expressed needs?

Latent needs are unknown to the customer, while expressed needs are known Signup and view all the answers

What is the result of a balanced orientation?

A balance between selling and satisfying consumer needs Signup and view all the answers

What is a potential disadvantage of having a Market-Driving Orientation?

Other people may not share your taste Signup and view all the answers

What is the correlation between market orientation and firm performance according to Kirca, A.H., Jayachandran, S., & Bearden, W.O.(2005)?

0.25 Signup and view all the answers

What is the purpose of Customer Satisfaction Index (CSI)?

To compute the average of the customers' satisfaction ratings Signup and view all the answers

Why is customer retention important?

Acquiring new customers can cost five times more than retaining existing customers Signup and view all the answers

What is the benefit of having a Very Satisfied customer?

They will give a CSI rating of 100 Signup and view all the answers

What is the purpose of empathic research in market orientation?

To understand latent needs Signup and view all the answers

What is the potential impact of a 5% increase in customer retention on profits?

25-85% increase Signup and view all the answers

Why do satisfied customers tend to purchase more?

Because they tend to buy more at higher margins Signup and view all the answers

What is a consequence of having an unhappy customer?

They will tell 13 people about their dissatisfaction Signup and view all the answers

Why is customer retention important for a firm's marketing strategy?

Because it makes customers purchase more at higher margins and requires less marketing resources Signup and view all the answers

What tends to happen to the customer profit rate over the life of a retained customer?

It increases Signup and view all the answers

What is the relationship between market demand and a firm's sales revenue?

Firm's Sales Revenue is equal to Market Demand multiplied by 1,000,000 Signup and view all the answers

What can improve a firm's profit besides growing market size and share?

Better prices and margins, and reducing costs Signup and view all the answers

What is the percentage of the firm's market share in the given scenario?

10% Signup and view all the answers

What is the firm's average selling price in the given scenario?

$5 Signup and view all the answers

What is one of the challenges faced by marketers in today's economy?

Increase in product selection Signup and view all the answers

What is the firm's gross margin in the given scenario?

20% Signup and view all the answers