Value Through Relationships/ Chapter 10

Question 1

what is transactional marketing?

Answer 1

• Little emphasis on customer service
• Limited commitment to meeting customer expectations
• Quality as the concern of production staff
• orientation to single sales
• discontinuous customer contact

Question 2

What is relationship marketing?

Answer 2

Relationship Marketing…

• Orientation to customer retention
• Continuous customer contact
• Focus on customer value
• Long time scale
• High emphasis on customer service
• High commitment to meeting customer expectations
• Quality as the concern of all staff

Question 3

what is the definition of relationship marketing?

Answer 3

the process of creating, maintaining and enhancing strong relationships with customers and other stakeholders.

Question 4

relationship marketing has a consequence on the 4P’s, how does it affect price?

Answer 4

• price is negotiated with customers (developed trust)
• product varies with customer preference
• pricing relative to customer lifetime values
• application of price differentiation strategies

Question 5

relationship marketing has a consequence on the 4P’s, how does it affect place?

Answer 5

• closer to the customer

- customer choice of distribution elements

Question 6

relationship marketing has a consequence on the 4P’s, how does it affect promotion?

Answer 6

• individual customers offered choice of communication channels
• need for integrated communication and technology (internet- point of sale)

Question 7

what types of market relationships is there?

Answer 7

• supplier customer
• supplier- customer competitor
• physical distribution network

Question 8

what two conditions must be met for a successful relationship marketing?

Answer 8

• a relationship should be a mutually rewarding connection between two or more parties
• the parties involved in the relationship should commit to the relationship over time and be willing to make adaptions to their own behaviour to maintain its continuity

Question 9

what are the benefits of managing customer relationships for the organisation?

Answer 9

• increased purchase
  -lower cost
  -lifetime value of a customer
  word of mouth
  -employee satisfaction and retention
  sustainable competitive advantage

Question 10

what are the benefits of managing customer relationships for the customer?

Answer 10

• risk and stress reduction
• higher quality service
• social and status benefits

Question 11

what are some strategies to develop customer retention?

Answer 11

• targeting customers for retention
• bonding
• internal marketing
• building trust
• service recovery
• promise fulfilment

Question 12

what are some factors associated with successful customer related management?

Answer 12

• ability to manage cultural change
• designing an integrated system
• being customer orientated
• piloting before launch
• face-to-face contact between marketing and IT staff

Question 13

what are the stages of development of a buyer -seller relationship

Answer 13

pre key account management:
early kam- involves exploring opportunities for closer collaboration
mid KAM - trust has been established
partnership KAM- buying org regards the supplier as an important strategic resource
synergetic KAM- buyer and seller see each other as part of a larger entity

Question 14

what factors potentially affect outcome of relationships?

Answer 14

• service quality- experience customer has
• trust - level of confidence in a company’s ability to supply the required goods and its reliability
• commitment
• satisfaction

Question 15

how do you build relationships?

Answer 15

• technical support- e.g. after sales service, providing training to the customers staff
• expertise- look for opportunities to provide expertise for their customers, which enables them to improve their service quality
• resource support- extending credit facilities
• service levels - improved level of service offered - JIT stock, reliable delivery