EST

Question 1

Relationship Marketing

Answer 1

build long-term connections between the company and its customers

develop brand and firm loyalty

Works well for services where transactions tend to be continuous, and the switching cost for customers are high.

Personal Interaction with service personel is critical

Question 2

Transaction vs Relationship Marketing: Transaction Marketing

Answer 2

Focus on single sale
Orientation on product features
Short timescale
Little emphasis on customer service
Limited customer commitment
Moderate customer contact
Quality is primarily a concern of production

Question 3

Transaction vs Relationship Marketing: Relationship Marketing

Answer 3

Focus on customer retention
Orientation on product benefits
Long timescale
High customer service emphasis
High customer commitment
High customer contact
Quality is the concern of all

Question 4

Branding

Answer 4

identifies the goods/services of one
seller and differentiates them

Question 5

Branding provides benefits and advantages

Answer 5

1. Sellers ( by providing brand equity)
   * Promotes brand loyalty
   * Provides legal protection against trade mark and copyright infringements
   * Helps in the segmenting the market and positioning of the product
   * Promotes the product and the company (as in a storyline)
2. Buyers
   * Helps buyer to identify products that benefit them
   * Indicates product quality, value and consistency
   * Captures consumers’ attention
   * Increases shopper’s efficiency
3. Society
   * Relates to product quality
   * Promotes innovation
   * Increases shoppers’ efficiency

Criticism of branding are :
* Devise to raise prices
* Unnecessary differentiation
* Increases status consciousness

Question 6

Selling Process

Answer 6

1. Prospecting and Qualifying
2. Pre-approach (learn about customer)
3. Approach (how to meet customer)
4. Presentation/ Demonstration (story with benefits)
5. Handling Objections
6. Closing (customer order)
7. Followup (satisfaction & repeat business)

Question 7

Assessment of attractiveness of SBUs

Answer 7

♦ Stars
High growth high share
High cash consumption due to rapid growth
Generally turn into cash cow
♦ Cash Cows
Low growth high share
Produce lots of cash to finance business
♦ Question Marks
Low share in high growth markets
High cash consumption just to hold
Can be built up to become stars or alternatively phased out
♦ Dogs
Low growth low share
May just cover own

Question 8

The Strategies

Answer 8

♦ Build
Aims at increasing marketing share even at expense of short-term profits
Appropriate for ? whose share must grow if they are to become stars
♦ Hold
Objective is to preserve market share
Appropriate for strong cash cows
♦ Harvest
Objective is to increase short term cash flow
Appropriate for weak cash cow, ? or dogs
Divest
Objective is to sell or liquidate
Appropriate for dogs and ? that company cannot finance.

Question 9

Problem with Matrix Approaches

Answer 9

can be difficult, time-consuming & costly to implement
difficult to define SBU & measure market share/growth
Focus on current businesses, but no future planning
unwise expansion or diversification