Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is the ideal outcome of effective marketing management?

1. Increased production costs

2. Enhanced customer satisfaction

3. Reduced product variety

4. Higher employee turnover

The correct answer is: Enhanced customer satisfaction

The ideal outcome of effective marketing management is enhanced customer satisfaction. This outcome is a direct result of understanding customer needs and preferences, which allows businesses to create products and services that meet or exceed those expectations. When marketing management is executed effectively, it involves thorough market research, targeted strategies, and engagement with customers, all of which contribute to a positive customer experience. Satisfied customers are more likely to become repeat buyers, leading to increased loyalty and positive word-of-mouth, ultimately benefiting the business in terms of reputation and profitability. In contrast, increased production costs, reduced product variety, and higher employee turnover do not align with the goals of effective marketing management. Increased production costs may indicate inefficiencies, reduced product variety could result in customer dissatisfaction due to limited choices, and higher employee turnover can disrupt operations and negatively impact customer service, all of which are detrimental to achieving enhanced customer satisfaction. Therefore, the focus of effective marketing management is fundamentally about creating value for customers.