Chap 11* Flashcards
What is transaction-based marketing?
buyer and seller exchanges characterized by limited communications and little or no ongoing relationship between the parties
What is relationship marketing?
Development growth and maintenance of long term, cost effective relationships with individual customers, suppliers, employees and other partners for mutual benefit usually in B2B markets
Forms of buyer-seller interactions
Integration > Customer relationship Management
Cooperations > Relationship marketing
Conflict > Transaction-based marketing
Relationship Marketing focuses on?
.Long term rather short term .Retaining customers .Customer service .Frequent customer contact .Customer commitment .Cooperation and Trust
Steps (Elements) of Relationship Marketing
- Gather info about customers
- Analyze the data and use to modify marketing mix
- Monitor interactions with customers
- Use customers’ preferences and knowledge CRM
Marketing Mix uses what?
4P Price Promotion Place Product
External Customers are who?
People or organizations that buy or use a firm’s goods or services
Internal Customers are who?
Employees or departments within the organization whose success depends on the work of other employees or departments
First level of Relationship Marketing?
Focus on price
- most superficial level
- rely on pricing to motivate
- competitors can easily duplicate pricing benefits
Second level of Relationship Marketing?
Social Interactions
- customer service and communication
Third level of Relationship Marketing?
Interdependent Partnership
- relationship turns into structural changes that ensure partnership and interdependence between buyer and seller
What are 3 steps to measure consumer satisfaction?
Understanding customer needs
Customer feedback
Ongoing measurement
Consumers form relationships to ________ ?
- reduce choices
- simplify info gathering and the entire buying process
- reduce the risk of dissatisfaction
What is customer churn?
customer turnover (expensive for companies)
What is Frequency Marketing?
frequent-buyer or user marketing programs that reward customers
What is Affinity Marketing?
solicits responses from individuals who share common interests and activities
What is a key benefit for customers in a buyer/seller relationship?
perceived positive value
What is Database Marketing?
use of software to analyze data about customers
- reduces marketing and promo costs
- boost sales volume per customer
- expands loyalty programs
Data sources for database marketing?
credit card apps
software reg
product warranties
customer opinion surveys
What is Grassroots Marketing?
also called Gorilla Marketing
- connecting directly with existing and potential customers through non-mainstream channels
Viral Marketing is?
satisfied customers spread the word to others
Buzz marketing?
gathers volunteers to try products and then relies on them to create buzz about them
What is CRM?
Customer Relationship Managment
What are some benefits of CRM?
.simplifies complex business processes
.software systems can make sense of huge amounts of data
What is customer win-back?
process of rejuvenating lost relationships with customers
What is B2B marketing?
Organizational sales and purchases of goods and services to support production of other products
What is a partnership in B2B marketing?
affiliation of two or more companies that help each other achieve common goals
What is a buyer partnership?
firm purchases goods and services from one or more providers
What is a seller partnership?
long-term exchanges of goods and services in return for cash or other consideration
What is an internal partnerships?
relationship involving customers within an organization
What is a lateral partnership?
strategic relationship that extends to external entities but involves no direct buyer-seller interactions
What is cobranding?
cooperative arrangement in which two or more businesses team up to closely link their names on a single product
What is comarketing?
cooperative arrangement in which two businesses jointly market each other’s products
*Which of the following is true of relationship marketing?
It views customers as equal partners in buyer-seller transactions.
*Which of the following concepts forms the basis of buzz marketing?
Word of mouth
*The term Customer Relationship Management refers to a combination of strategies and tools that attempts to:
reorient an entire organization to a concentrated focus on satisfying customers
