CBO CBO Marketing & Customer Relations 1

Question 1

What does the marketing concept of 'target market' refer to?

Accepted Answer

A specific group of consumers most likely to purchase a product or service

Answer

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?

Accepted Answer

Customer lifetime value (CLV)

Answer

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?

Accepted Answer

To assess internal strengths and weaknesses alongside external opportunities and threats

Answer

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?

Accepted Answer

Competitive pricing

Answer

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?

Accepted Answer

Market segmentation

Answer

Market segmentation identifies distinct subgroups within a market based on demographics, psychographics, geography, or behavior to enable targeted marketing.

(CBO) Certified Business Operator Practice Test

(CBO) Certified Business Operator Practice Test

CBO CBO Marketing & Customer Relations 1