Deck 9: Delivering Customer Value

Question 1

In many businesses the role of marketing is improperly defined to include only

A)integrated marketing communications strategies.
B)sales generation.
C)channel strategies.
D)advertising strategies.
E)public relations strategies.

Answer 1

B

Question 2

When the sales function does not have marketing support,

A)sales and market entry costs go up.
B)marketing has direct contact with the customer.
C)sales cycles are shorter.
D)the result is higher pocket prices.
E)advertising expenditures increase.

Answer 2

A

Question 3

While marketing focuses on long-term strategies,sales focuses on short-term strategies such as

A)brand building.
B)brand extensions.
C)marketing communications.
D)protecting price integrity.
E)revenue generation.

Answer 3

E

Question 4

When lacking clear direction from the marketing function,the sales function may take matters into its own hands,resulting in

A)declining sales.
B)a grassroots marketing approach.
C)lower pocket prices.
D)inconsistent advertising.
E)changes to the marketing plan.

Question 5

All customers go through a predictable sales cycle called

A)brand association.
B)brand awareness.
C)product knowledge.
D)product trial.
E)a buying funnel.

Question 6

The role of sales includes

A)conducting formal marketing research.
B)developing customer value propositions.
C)measuring customer satisfaction.
D)managing the brand.
E)developing specialized knowledge of the customer's industry and business.

Question 7

The role of marketing includes

A)making sales calls to customers.
B)developing sales plans.
C)delivering customer value propositions.
D)conducting sales reviews.
E)developing specialized knowledge of the customer's industry and business.

Question 8

Realizing that its business-to-business customers were looking for long-term solutions,Grand & Toy restructured itself to

A)save money and resources.
B)reduce the number of retail locations.
C)focus on just a consumer audience.
D)create more value for the customer.
E)improve its warranties.

Question 9

Compared to sales,which is more focused on the here and now,marketing is focused on

A)long-term strategies.
B)short-term strategies.
C)price discounting.
D)product development.
E)the number of transactions.

Question 10

One reason the misalignment between marketing and sales exists is because

A)marketing and sales roles are clearly defined.
B)both functions share equal ownership of the customer.
C)they have different views on an organization's strategy.
D)a process has been put in place to link them.
E)they share resources.

Question 11

Although marketing and sales thought worlds are different,an organization suffers when

A)marketing and sales are aligned.
B)the focus is on the customer.
C)the two functions work together.
D)only one skill set is emphasized.
E)sales and marketing are considered equally important.

Question 12

When IBM focused both the sales and marketing functions' attention on creating value for the customer,the end result was

A)higher market entry costs.
B)longer sales cycles.
C)improved performance metrics.
D)higher cost of sales.
E)a focus on fulfilling product demand,not creating it.

Question 13

Recognizing that its sales and marketing functions were not aligned,IBM introduced a new function called channel enablement.This function's role was to

A)conduct marketing research.
B)execute sales strategies.
C)track competitive activity.
D)mediate conflicts between sales and marketing.
E)focus everyone's attention on the customer.

Question 14

By creating brand awareness and knowledge in the target audience,marketing is providing the sales force with

A)a lower pocket price.
B)a competitive edge in the marketplace.
C)a higher cost of ownership.
D)increased sales costs.
E)limited price integrity.

Question 15

At a certain point in the purchase funnel,

A)the marketing function handles purchase details.
B)the marketing function responds to customer concerns.
C)the marketing function follows up with customers to ensure purchase satisfaction.
D)the sales function takes over and steers purchase intention to the brand.
E)the sales function creates a "need" for the product.

Question 16

Robeez,the manufacturer of infants' shoes,found it difficult to maintain price integrity because the company had been

A)marketing driven.
B)sales driven.
C)product driven.
D)technology driven.
E)advertising driven.

Question 17

Longer sales cycles are common in businesses where

A)the product is new.
B)the sales and marketing function are not aligned.
C)the marketing function has introduced a new segmentation model.
D)distribution is national.
E)the sales function receives clear direction from marketing.

Question 18

Both sales and marketing have unique roles to play in

A)creating customer awareness.
B)creating brand preference.
C)maintaining customer loyalty.
D)the buying funnel.
E)customer advocacy.

Question 19

If marketing has positioned a brand uniquely in the marketplace and created brand awareness and knowledge before the salesperson calls,the end result is

A)increased sales costs.
B)a lack of price integrity.
C)reduced sales costs.
D)a higher cost of ownership.
E)a lower pocket price.

Question 20

The purpose of a sales force is not just to communicate the value created by marketing,but also to play an active role in

A)developing marketing strategies.
B)executing marketing communications tactics.
C)segmenting the audience.
D)performing competitive analysis.
E)creating value.

Question 21

The marketing and sales function should jointly

A)create the marketing plan.
B)conduct sales reviews.
C)develop sales plans.
D)perform market segmentation.
E)manage the brand.

Question 22

To align the marketing and sales functions,the language of marketing has to be translated into

A)customer value propositions.
B)brand associations.
C)marketing communications tactics.
D)sales collateral materials.
E)the language of sales.

Question 23

The key to translating marketing planning into sales action lies in

A)marketing communications.
B)market segmentation.
C)the sales review.
D)supply chain management.
E)sales force deployment.

Question 24

Development of clear value propositions by customer type enables the development of

A)marketing communications strategies.
B)product development strategies.
C)market research strategies.
D)sales strategies.
E)brand extension strategies.

Question 25

The section of the sales plan that contains information on key sales issues facing the business is called

A)opportunity analysis.
B)performance targets.
C)sales strategies.
D)sales plan implementation and control.
E)the executive summary.

Question 26

The section of the sales plan that contains market,customer,product,and competitor analysis is called

A)the executive summary.
B)opportunity analysis.
C)performance targets.
D)sales strategies.
E)sales plan implementation and control.

Question 27

Through market segmentation,GE discovered that the top 30% of prospective customers were three times more likely to do business with GE than the bottom 70%.This is an example of how GE was able to

A)create customer value propositions.
B)harness the power of marketing with sales action by identifying attractive prospects.
C)create organizational silos for the sales and marketing functions.
D)revise its marketing plan.
E)identify new customers for product extensions.

Question 28

GE used data from past company transactions to organize customers by the type of equipment leased and by their likelihood of wanting to do business with GE.This is an example of

A)customer segmentation.
B)understanding customer needs.
C)creating customer value.
D)a sales strategy.
E)a marketing communications strategy.

Question 29

Providing feedback to other functions on what the sales function is observing in the marketplace regarding competitors,customers,and market trends is part of

A)a sales review.
B)competitive analysis.
C)market segmentation.
D)product analysis.
E)environmental analysis.

Question 30

By giving the sales force direction,we avoid any tension the salesperson may feel between serving the customer and

A)serving the marketing function.
B)delivering customer value.
C)serving key decision makers.
D)managing customer relationships.
E)serving the company.

Question 31

Providing feedback on the market and customers to key decision makers is an example of how the sales function

A)creates customer value.
B)reviews customer segments.
C)manages customer value.
D)delivers customer value.
E)understands customer needs.

Question 32

Profiling a customer based on needs and willingness to pay provides the sales force with a clear understanding of

A)marketing communications strategies.
B)the total cost of ownership.
C)what can and cannot be offered to the customer.
D)brand preferences.
E)resource requirements.

Question 33

The section of the sales plan that spells out detailed tactical plans for each sales strategy is called

A)opportunity analysis.
B)performance targets.
C)sales strategies.
D)sales plan implementation and control.
E)sales budgets and key resources.

Question 34

A necessary first step in aligning the sales and marketing functions is

A)a sales review.
B)a competitive analysis.
C)clear role definition.
D)a market analysis.
E)goal setting.

Question 35

The glue binding marketing and sales is

A)product development.
B)market segmentation.
C)sales reviews.
D)brand equity.
E)customer value propositions.

Question 36

Announcing distinct but complementary roles of marketing and sales based on the understand-create-deliver-manage customer value framework was one of the steps that Arbol Industries took in the process of

A)customer segmentation.
B)new product development.
C)aligning its marketing and sales functions.
D)building brand equity.
E)improving the corporate culture.

Question 37

The section of the sales plan that identifies target customers by priority is called

A)opportunity analysis.
B)performance targets.
C)sales strategies.
D)sales plan implementation and control.
E)sales budgets and key resources.

Question 38

In a sales plan,value propositions by market segment and by customer are addressed in the

A)performance targets.
B)opportunity analysis.
C)sales strategies.
D)sales plan implementation and control.
E)executive summary.

Question 39

By profiling a customer based on needs and willingness to pay,development of ___________ becomes straightforward.

A)new products
B)marketing communications strategies
C)public relations strategies
D)customer value propositions
E)market segments

Question 40

Conducting reviews of segments,customers,and the product mix is an example of how the marketing function

A)understands customer needs.
B)creates customer value.
C)delivers customer value.
D)manages customer value.
E)manages customer relationships.

Question 41

The purpose of a sales force is to simply communicate the customer value created by marketing.

Question 42

Development of clear value propositions by customer type enables the development of sales strategies.

Question 43

Marketing has a short-term focus,while sales has a long-term focus.

Question 44

In businesses where there is alignment between marketing and sales,shorter sales cycles are common.

Question 45

The sales plan is the marketing plan;it's just written in the language of sales.

Question 46

Marketing develops customer value propositions,while sales delivers them.

Question 47

One of the roles of marketing is to conduct sales reviews.

Question 48

Both marketing and sales have a role to play all through the sales cycle.

Question 49

The role of marketing should be defined as lead generation.

Question 50

In a sales plan the section that addresses target customers by priority is called performance targets.

Question 51

Without clear direction from the marketing function,the sales function may engage in pricing practices that lower the pocket price.

Question 52

When marketing and sales are not aligned,sales and market entry costs go down.

Question 53

Detailed tactical plans for each sales strategy are spelled out in the sales plan implementation and control section of a sales plan.

Question 54

The key to translating marketing plans into sales action lies in market segmentation.

Question 55

Developing value propositions by customer type provides the sales force with clear direction on how to serve customers.For example,car salespeople know that they cannot offer free services or upgrades to the value-minded,price-sensitive customer.

Question 56

Without a process to align the sales and marketing functions,the organization will not be able to achieve its strategic goals.

Question 57

By giving the sales force direction,we avoid any tension the salesperson may feel between serving the customer and creating customer value.

Question 58

When a customer is profiled based on needs and price sensitivity,developing value propositions is easy.

Question 59

While having different thought worlds is not necessarily a bad thing,it can have negative consequences if the power of marketing planning is not harnessed with the impact of sales action.

Question 60

One of the roles of sales is to measure customer satisfaction.

Question 61

Explain the different thought worlds of marketing and sales.Why does an organization need both viewpoints?

Question 62

What is a buying funnel?

Question 63

What end results has IBM enjoyed after aligning its sales and marketing functions and focusing everyone's attention on the customer?

Question 64

What is the role of marketing in the buying funnel?

Question 65

What happens when marketing and sales are not aligned?

Question 66

How is the sales function responsible for creating value for the customer?

Question 67

What is the role of sales in the buying funnel?

Question 68

Market segmentation is the key to translating marketing planning into sales execution.Explain this statement.

Question 69

What is examined in a sales review?