Product Mgt 2

Which of the following is NOT a component of the marketing mix?

• a) Product

• b) Promotion

• c) Place

• d) Price

• e) Packaging

Answer explanation

The marketing mix consists of Product, Price, Place (distribution), and Promotion (communication).

What is the purpose of setting marketing objectives for a product?

• a) To provide a target for sales revenue and market share

• b) To outline the key features and functionality of the product

• c) To determine the optimal pricing for the product

• d) To identify the target market for the product

Answer explanation

Marketing objectives provide a clear target for sales revenue and market share, helping the marketing team to develop strategies to achieve these targets.

What is the final step in the product marketing planning process?

• a) Developing a product launch plan

• b) Conducting a SWOT analysis

• c) Evaluating the success of the marketing plan

• d) Setting marketing objectives

Answer explanation

The final step in the product marketing planning process is evaluating the success of the marketing plan against the set objectives and making necessary adjustments for future plans.

What is customer value management?

• a) A process for identifying customer needs and preferences

• b) A process for managing customer complaints and feedback

• c) A process for maximising the value customers receive from a company's products or services

• d) A process for segmenting customers based on demographic characteristics

Answer explanation

: Customer value management involves understanding and maximising the value that customers receive from a company's products or services, to increase customer satisfaction and loyalty.

Which of the following is NOT a benefit of customer value management?

• a) Increased customer satisfaction and loyalty

• b) Improved product quality

• c) Higher revenue and profitability

• d) Better understanding of customer needs and preferences

Answer explanation

: While customer value management can indirectly lead to improved product quality, it is not a direct benefit of the process.

What is customer lifetime value?

• a) The amount of time a customer has been with a company

• b) The total revenue a customer has generated for a company over their lifetime

• c) The potential future revenue a customer could generate for a company

• d) The amount of money a customer is willing to pay for a company's products or services

Answer explanation

Customer lifetime value is a measure of the total revenue a customer has generated for a company over their lifetime

What is the purpose of customer segmentation?

• a) To identify which customers are most valuable to a company

• b) To tailor marketing strategies to specific groups of customers

• c) To understand the needs and preferences of different groups of customers

• d) All of the above

Answer explanation

Customer segmentation is a process for dividing a company's customer base into groups with similar characteristics, in order to identify valuable customers, tailor marketing strategies to specific groups, and understand customer needs and preferences.

What is the difference between customer satisfaction and customer loyalty?

• a) Customer satisfaction refers to a customer's overall impression of a company, while customer loyalty refers to their likelihood to continue buying from that company

• b) Customer satisfaction refers to a customer's likelihood to recommend a company to others, while customer loyalty refers to their likelihood to continue buying from that company

• c) Customer satisfaction and customer loyalty are the same thing

• d) Customer satisfaction refers to a customer's likelihood to continue buying from a company, while customer loyalty refers to their likelihood to recommend that company to others

Answer explanation

: Customer satisfaction and customer loyalty are related, but not the same thing. Customer satisfaction refers to how satisfied a customer is with a company's products or services, while customer loyalty refers to their likelihood to continue buying from that company.

What is the purpose of an annual product planning process?

• a) To develop a long-term product roadmap

• b) To set goals and priorities for the upcoming year

• c) To identify new product opportunities

• d) To evaluate the success of existing products

Answer explanation

: The purpose of an annual product planning process is to set goals and priorities for the upcoming year, based on market trends, customer needs, and company resources.

.What is a key output of the annual product planning process?

• a) A detailed project plan for each product

• b) A comprehensive market research report

• c) A product roadmap for the next 5 years

• d) A prioritised list of product initiatives for the upcoming year

Answer explanation

The annual product planning process typically results in a prioritised list of product initiatives for the upcoming year, based on company goals, market trends, and customer needs.