CBO Marketing & Customer Relations Flashcards

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

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.

Which customer retention metric measures a customer's total expected revenue over the entire business relationship?

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.

What is the primary purpose of a SWOT analysis in a marketing context?

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.

Which pricing strategy sets a product's price based on what competitors charge for similar products?

Answer: Competitive pricing

Competitive pricing benchmarks prices against rivals rather than solely on costs or perceived value, keeping the business aligned with market expectations.

What term describes the process of dividing a broad market into subgroups of consumers with common needs?

Answer: Market segmentation

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

Which element of the traditional marketing mix refers to how a product or service is made available to customers?

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.