End Of Unit 4 Test - 1 Attempt Answer Key

UNIT 4: CUSTOMER RELATIONSHIPS AND STRATEGIES TEST Question 1 How should a company use third-party websites for customer relationship management (CRM)? To integrate data collected from campaigns Correct! A company should use third-party websites to integrate data collected from campaigns. Collecting and using the data allows marketers to develop customized approaches to engaging buyers with dynamic content. Question 2 What is the purpose of market segmentation in the customer relationship management process? It is the appropriate use of marketing messages to specific groups. Correct! Market segmentation allows a firm to target different buyer groups based upon their buying criteria and characteristics. Question 3 A retail store that sells high-performance running shoes relies on relationship marketing with loyal customers to improve its business. Which tactic should the firm use for this marketing approach? Conduct regular free fun runs for customers Correct! Relationship marketing goes beyond just focusing on sales transactions. Instead, it looks to foster long-term relationships with customers. Creating a fun run at which customers can meet other runners and discuss the store's products is a method for building these relationships. Question 4 An online retailer logs the number of customer clicks made on its website and tracks all related purchase data. The retailer takes this action to create detailed customer profiles that provide insights which are used to create personalized offerings for each customer. Which customer relationship management (CRM) strategy is the retailer using? One-to-one marketing Correct! One-to-one marketing relies on tracking customer usage and buying data in order to create individualized marketing plans for each customer. Question 5 A business is initially gathering information about customer purchases, trends, and competitive data. Which customer relationship management (CRM) process cycle is this business in? Knowledge discovery Correct! Knowledge discovery focuses on gathering information about customer purchases, trends, and competitive data. Question 6 A company wants to develop a 360-degree customer view of its online purchasing experience. How should the company achieve this goal? Review social media interactions Correct! Social media interactions provide valuable information about the customer’s online purchasing experience that the company can use to develop a 360-degree customer view. Question 7 A firm's marketing team uses sales analytics to prioritize its current customers so that marketing messages can target the current customers more effectively. Which action is the marketing team taking? Segmentation Correct! The use of the sales analytics to prioritize its customers into groups is segmenting the customers so that the marketing department can send the right marketing message to each industry group. Question 8 An organization with an innovative approach to cyber-security learns from its analytics team that 83% of prospects who sign up for a product demo result in purchasing and keeping the software for at least a year. However, only 12% of prospects are signing up for this demo. How should the organization use this data? Increase advertising and promotion of the demo Correct! The company should increase advertising and promotion of the demo because only a small proportion of its prospects are signing up for the demo, and those who do see the demo converted into customers at a high rate. Question 9 A salesperson is feeling pressure to meet sales goals for the quarter. How should the salesperson determine whether goals have been met? Conduct a win-loss review of purchases Correct! The salesperson should conduct a win-loss review of purchases to determine if sales goals for the quarter have been met. Win-loss reviews identify whether a sale is made or not and the number of opportunities that were presented to make the sale. Question 10 A sales manager wants to evaluate the performance of the sales team's ability to move buyers along the sales funnel toward final purchase. How should the sales manager evaluate the sales team? Analyze conversion ratios Correct! A sales manager that wants to evaluate the performance of the sales team's ability to move buyers along the sales funnel should analyze conversion ratios. Conversion ratios reveal a salesperson's ability to move buyers through the sales funnel towards final purchase.