Deck 3: Relationship Marketing and Customer Relationship Management

Question 1

Relationship marketing has 3 basic features. Which of the following is not one of them?

A) Relational databases
B) Data silos
C) Integrated marketing communications
D) Dialogue
E) None are features.

Answer 1

Data silos

Question 2

Which term refers to a partner's belief that the other's actions are in their best interest?

A) Trust
B) Satisfaction
C) Commitment
D) Cognitive consistency
E) None of the above

Answer 2

Trust

Question 3

Before CRM, most marketers focused on the acquisition of customers bymanipulating variables in the marketing mix. Describe how marketers "marketed"before CRM.

Answer 3

Until the early 1980s most marketers focused on the acquisition ofcustomers by attempting to develop a better marketing mix than the competition -the marketing mix being the blending of optimal product, place, promotion, and price for the targeted market segment (the 4Ps). Using mass media, the same basic messages were sent to everyone. Products and prices were developed to attract the average consumer, and distribution outlets were standardized. The focus was on developing economies of scale where cost economies were realized through repetition as opposed to customization. Companies focused on acquiring customers and, once acquired, companies did not personalize their selling efforts.

Question 4

Marketers have extended their CRM techniques to include partner relationshipmanagement (PRM). What is PRM?

Question 5

Companies don't just relate to customers anymore. How do companies such as IBM, Hilton Hotels Corp., United Airlines, Proctor and Gamble, and General Electric exemplify this?

Question 6

Describe the Extended Product Model (EPM) also called the Product Component Model. In what ways does it extend the meaning of a product?

Question 7

Most companies have both transactional and relational customers with the later receiving the major emphasis by companies practicing CRM. How should companies treat transactional customers?

Question 8

Len Berry argues that there are three levels of relationship marketing and that the level of relationship marketing must match the strength of bond appropriate for each type of customer. What are these three levels and their respective relationship marketing efforts?

Question 9

Jim Barnes arrays company-customer relationships on a continuum based onrelationship strength. Give an example of what he means by intimate relationships, face-to-face customer relationships, distant relationships, and no relationships.

Question 10

Sheth and Parvatiyar claim that relationship marketing will make marketing more effective. How will it do this?

Question 11

Sheth and Parvatiyar claim that relationship marketing will make marketing more efficient. How will it do this?

Question 12

Agree or disagree and explain: The CCC has created a new center of information for the company.

Question 13

Reinartz and Kumar provide a typology of customers: butterflies, true friends, strangers and barnacles. Define each and describe how a company can best manage each.

Question 14

Explain what is meant: Transactional marketing is being replaced by relationship marketing.