Question

1) Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing.

		cost-plus
		everyday low value
		target return
		value-added

Marketing is the process by which companies ________________ and build strong relationships in order to ________________.

sell products and services; obtain revenue
		capture current revenue; gain future revenue
		create value for customers; capture value from customers in return
		create value for customers; capture profit from customer

Which of the following is part of the microenvironment of a firm’s marketing environment?

the political state of the country in which the firm exists
		the cultural forces that exist in the company
		the different demographic trends in the market
		the suppliers who work with the company

Companies today are moving away from target marketing and toward mass marketing.

True

False

Answer 1

Q1 : value added

The correct answer is value added. In this the company differentiates its products from the competitors by providing additional amenities in its products compared to its competitors. These additional amenities provide extra value to the customers and in turn customers are ready to pay more for the product in the form of higher price.

Q2 : create value for customers; capture value from customers in return

In marketing, the company or the firm identifies an unmet need of the customers and produces products or provides services which help to meet that unmet need thus creating and providing value to the customers. The customers in turn pay for this services or products as per the utility which they feel for the same. The higher the value perceived by the customers, the higher is the value or price they pay to the company.

Q3 : the suppliers who work with the company

The environmental factors are those that exist outside the company. The macro-environmental factors include factors like technology, legal and political factors, social factors, demographic trends which are common for all players in the industry. The micro-environmental factors include suppliers, customers, the 3rd parties which the company interacts with which are unique to the company.

Q4 : False

This is false as the companies today try to focus the marketing efforts instead of generalizing it. With the availability of multiple data points and analytics tools, the companies try to segment the market as fine as possible and perform targeted marketing instead of considering entire market as a single entity and using mass marketing.