8.3 Achieving customer satisfaction

Question 1

What are the two general approaches to selling a product?

Answer 1

• Transactional selling

- Relationship marketing

Question 2

Transactional selling definition

Answer 2

An approach to finding and keeping customers that centres on the product rather than the customer

Question 3

Relationship marketing definition

Answer 3

An approach that is centred on the building of long-term relationships

Question 4

Features of transactional selling:

Answer 4

• Focuses on sales targets
• Short timescale
• Low emphasis on customer service
• Limited customer commitment
• Limited customer contact

Question 5

Features of relationship marketing:

Answer 5

• Focus on customer retention
• Long timescale
• High emphasis on customer service
• High customer commitment
• High customer contact

Question 6

Advantages of transactional selling:

Answer 6

• Reduces amount of time and resources spent making a sale

- Administrative costs lower

Question 7

Advantages of relationship marketing:

Answer 7

• Additional cost involved balanced out by loyal customers
• Cheaper to retain existing customer
• Enhance reputation

Question 8

What does the 80:20 rule, or the ‘Pareto principle’, state?

Answer 8

That in many situations 80% of the effects arise from 20% of the causes
- 80% of a firm’s sales, profits and complaints come from 20% of its customers