CBO CBO Marketing & Customer Relations 1 — Questions and Answers
Question 1: What does the marketing concept of 'target market' refer to?
- A specific group of consumers most likely to purchase a product or service (Correct answer)
- The geographic region where a business operates
- The total number of potential customers in a market
- The pricing strategy used to attract buyers
Correct answer: A specific group of consumers most likely to purchase a product or service
A target market is the defined segment of consumers with shared characteristics whose needs and preferences align with the business's offerings.
Question 2: Which customer retention metric measures a customer's total expected revenue over the entire business relationship?
- Customer lifetime value (CLV) (Correct answer)
- Net Promoter Score (NPS)
- Customer acquisition cost (CAC)
- Churn rate
Correct answer: Customer lifetime value (CLV)
Customer lifetime value estimates the net revenue a business can expect from a single customer account throughout the duration of their relationship.
Question 3: What is the primary purpose of a SWOT analysis in a marketing context?
- To assess internal strengths and weaknesses alongside external opportunities and threats (Correct answer)
- To calculate return on advertising spend
- To segment the customer base by demographics
- To evaluate social media engagement metrics
Correct answer: To assess internal strengths and weaknesses alongside external opportunities and threats
A SWOT analysis provides a structured framework to evaluate a business's competitive position by examining internal capabilities and external market conditions.
Question 4: Which pricing strategy sets a product's price based on what competitors charge for similar products?
- Competitive pricing (Correct answer)
- Cost-plus pricing
- Value-based pricing
- Penetration pricing
Correct answer: Competitive pricing
Competitive pricing benchmarks prices against rivals rather than solely on costs or perceived value, keeping the business aligned with market expectations.
Question 5: What term describes the process of dividing a broad market into subgroups of consumers with common needs?
- Market segmentation (Correct answer)
- Market penetration
- Brand positioning
- Channel distribution
Correct answer: Market segmentation
Market segmentation identifies distinct subgroups within a market based on demographics, psychographics, geography, or behavior to enable targeted marketing.
Question 6: Which element of the traditional marketing mix refers to how a product or service is made available to customers?
- Place (distribution) (Correct answer)
- Price
- Promotion
- Product
Correct answer: Place (distribution)
'Place' in the 4 Ps of marketing encompasses the distribution channels and logistics strategies used to deliver the product to the end consumer.
CBO CBO Marketing & Customer Relations 1
What does the marketing concept of 'target market' refer to?