Exam 17: Relationship Marketing and Customer Relationship Management CRM

Briefly explain each of the three levels of the relationship marketing continuum.

What is the ultimate expression of relationship marketing in the business-to-business sector?

What do third-level relationship marketing programs usually aim to create?

It costs millions in advertising to lure new customers to cosmetic counters. A cosmetics company CEO recognized that women prefer to be loyal to their cosmetic brands and, in doing so, would need products that take a woman through her lifetime, changing as her skin changes. By following this philosophy, the company began practicing one of the main tenets of relationship marketing.

A proactive approach to customer feedback involves initiating the interface through telephone calls, visiting, surveys, and technological interfacing that will provide a company with data.

Organizations may embrace dissimilar values and still partner successfully in the long run.

Large retailers pay special attention to suppliers from whom they buy millions of dollars in merchandise each year. To solidify their commitment to these suppliers, a retailer's buying office is often located near the supplier's home office.

Match each item to the statement or sentence listed below. a.transaction-based marketing b.relationship marketing c.internal marketing d.frequency marketing e.affinity marketing f.database marketing g.application service providers (ASPs) h.customer relationship management i.partnership j.co-branding k.co-marketing l.electronic data interchange (EDI) m.supply chain n.lifetime value of a customer o.strategic alliance p.value chain q.web services r.internal customers s.seller partnership t.national account selling u.grassroots marketing v.quick-response merchandising -is a relationship involving long-term exchange of goods or services in return for cash or other valuable consideration.

What type of marketing is described as managerial actions that enable all members of an organization to understand, accept, and fulfill their respective roles in implementing marketing strategy?

A biotechnology company and a university have formed a partnership to develop a new class of cancer-fighting drugs. What type of partnership is this?

In relationship marketing, the focus is on enticing a buyer to make an immediate purchase based on factors such as low price, convenience, or packaging.

Match each item to the statement or sentence listed below. a.transaction-based marketing b.relationship marketing c.internal marketing d.frequency marketing e.affinity marketing f.database marketing g.application service providers (ASPs) h.customer relationship management i.partnership j.co-branding k.co-marketing l.electronic data interchange (EDI) m.supply chain n.lifetime value of a customer o.strategic alliance p.value chain q.web services r.internal customers s.seller partnership t.national account selling u.grassroots marketing v.quick-response merchandising -The _____ is the sequence of suppliers that contribute to the creation and delivery of a product.

Cannondale Bicycles has an owner's group called "The Chain Club." Members receive e-mails listing cycling-related tips, as well as access to a special website. What level of relationship marketing is this an example of?

What is created when partners in a strategic alliance form a new business unit to implement their plans?

General Foods offers a "Box Tops for Education" program that rewards schools with funds to purchase needed supplies. The funds are accrued through submitted box tops found on specially marked products. This charitable program provides added value to families and encourages stronger customer relationships. It is, in essence, affinity marketing.

Lifetime value calculations involve matching the costs of acquiring and maintaining customer relationships with the profit produced by those customers over the length of time they can be expected to do business with the company.

What type of interaction is usually created by a second-level relationship marketing program?

Since the Industrial Revolution, most manufacturers have focused on making products and then promoting them to customers in hopes of selling enough to cover costs and earn a profit.

Match each item to the statement or sentence listed below. a.transaction-based marketing b.relationship marketing c.internal marketing d.frequency marketing e.affinity marketing f.database marketing g.application service providers (ASPs) h.customer relationship management i.partnership j.co-branding k.co-marketing l.electronic data interchange (EDI) m.supply chain n.lifetime value of a customer o.strategic alliance p.value chain q.web services r.internal customers s.seller partnership t.national account selling u.grassroots marketing v.quick-response merchandising -The employees or departments within an organization whose success depends on the work of other employees or departments are referred to as _____.

In seller partnerships, companies want to sell as much product as quickly as possible without dealing with long-term business relationships.