Download File

COMA N303:
Student ID:
Marketing and Advertising
Student Name:
RKMC
1. Ask two business people from different industries (for example, food service,
retailing, consumer-product manufacturing, industrial-product manufacturing,
education, and so on) what they think marketing is. Evaluate their definitions and
discuss whether or not they are consistent with the goal of creating customer value
and managing profitable customer relationships.
Answer:
I have asked the following two people’’ what they think marketing is.’’

Peter Hopkins : Founder of a language coaching Institute’’
Being a marketing graduate himself Peter is well versed of marketing strategies .He
understand the value of building a solid customer base. According to him before
starting a business a well etched marketing plan is very important which includes the
target client , the right approach as well knowing your competitors . He says ‘’
Marketing defines the need and wants of consumers and deliver the right product to
satisfy their wants and the needs.’’ He is constantly improvising his marketing
strategies to create a new customer base as well as retaining the existing customers

Mahra Humaidi: Owner of a ladies garment store and boutique.
Mahra is a young entrepreneur who has ventured in to business with the support of her
family. Her father runs a chain of successful business. Though she is not a Marketing
Graduate she has learned the skills on the job by assisting her father. According to her it
is very important to keep the consumers basic requirements and choices in mind while
making something for the masses.
She thinks that ‘’Marketing is a bridge between manufacturer to the consumers’’ It
involves step by step activity to turn a thought into a product and finally deliver it to
the consumer.
REVIEW ACTIVITY SET 2
25-Sep-2012
Page 1 of 5
COMA N303:
Student ID:
Marketing and Advertising
Student Name:
RKMC
2. Define the different relationship levels companies can build with customers. Pick a
company and describe the types of relationships you have with it.
Answer:
The different levels of relationships a company may have with customers is as follows:
1. Basic marketing – salesman sells to final customers
2. Reactive marketing – The salesman sells the product and also asks for feedback
3. Accountable marketing – The salesman follows up the satisfactory performance
of the product.
4. Proactive marketing – The company works with large customers to continuously
improve the product.
5. Partnership marketing – the company builds permanent relationship and takes
regular input from the largest customers.
The example I choose is the car company, Nissan.
When I go to buy a new car, and meet the floor salesman, he is giving me basic
marketing.
However, if I choose to take a test drive, then the action is reactive marketing, because
the salesman wants to know what my experience was like.
If I do not make a choice, sometimes I will receive a call from the salesman a week later,
and he will ask about my desire to buy the car or not.
Ofcourse, since I am an individual buyer, I cannot experience Proactive or Partnership
Marketing. But I am sure that Nissan makes the requested changes, when selling an
entire fleet of cars to the government or to a private taxi company, like installing fuel
meters etc.
REVIEW ACTIVITY SET 2
25-Sep-2012
Page 2 of 5
COMA N303:
Student ID:
Marketing and Advertising
Student Name:
RKMC
3. Companies are realizing that losing a customer means more than losing a single sale.
It means losing a stream of revenue from that customer over their lifetime.
Answer:
The cost of earning a new customer is quite large. A customer is always the beginning
of the relationship, and both parties must spend an amount of time, money and trust to
build this relationship.
However, once the relationship is built, the company-customer interaction hopefully
remains steadily smooth. It is unsaid, but understood, that as long as the customer’s
demand will not change drastically, and the quality of the company’s product will not
decrease, the customer will be willing to give repeated business to the producer, in
return for the expected goods and services.
However, if this customer is lost in the beginning, all the potential business from this
customer is lost.
Therefore companies are trying to make it very easy for customers to build relationships
with them. Almost no company can know for sure how much business a new customer
may bring to them. Therefore, the company must put their best effort into building a
good relationship with each and every potential customer, and convert all the potential
customers to new customers as soon as possible. This is the best course of action for the
business.
REVIEW ACTIVITY SET 2
25-Sep-2012
Page 3 of 5
COMA N303:
Student ID:
Marketing and Advertising
Student Name:
RKMC
4. Is it possible to take his idea of “the customer is always right” too far so that it
becomes a negative on the company? Why or why not?
Answer:
“The customer is always right”, is a often quoted phrase from the world of customer
relations. However, there can be many cases, where the customer may be misinformed,
uneducated, or purposely wrong. Such a customer oriented approach only applies to
the retail sector without question, in all other cases, we much test how applicable this
phrase is.
Customers only know their individual needs and wants, and cannot possibly look at the
long-term big-picture. For example, customers in a restaurant may request a very rarely
cooked burger, as they prefer it. In such a case however, the undercooked burger might
carry fatal diseases. If a customer is affected by the undercooked burger, the restaurant
is liable for legal damages, unless the customer agrees to sign a legal waiver. However,
a market where a producer takes no legal responsibility for his product is not one that
serves the customer in the first place.
Therefore, such a business may suffer by catering to every whim of the customer. In
areas like quality control accreditation and accounting, the customer cannot possibly be
always right. Moreover, in the field of higher education, the young customer may claim
to know exactly what he needs to study, but such young customers are often not very
sure about their own life-choices, which is why they want higher education in the first
place! Therefore, believing that the customer is always right, can decrease the quality of
the firm’s product, and in the long term, anything that harms the customer, is not
sustainable .
Certain customers may request a price drop for automobiles, and may be willing to
forgo a lot of the extra safety features. However, if a company removes these safety
features, then the car will have a lot more passenger injuries, and become unpopular.
This is a direct example where the producer suffers directly by listening to every little
whim of the customer.
REVIEW ACTIVITY SET 2
25-Sep-2012
Page 4 of 5
COMA N303:
Student ID:
Marketing and Advertising
Student Name:
RKMC
5. Marketing activities by not-for-profit organizations have increased substantially in
recent years. Organizations such as hospitals and charities now spend significant
money to get their individual messages out and draw in new customers, clients,
members, etc. Discuss whether or not you consider this a good long-term strategy to
grow the business.
Answer:
The conventional perception of non-profit businesses, was one of mediocre capabilities,
where the social goals of the organization were met, but efficiency and productivity
were not really stressed upon.
However, as the markets have matured, people have started to realize that efficiency is
very important, specially in areas like charity and hospitals, because their efficient
functioning can bring about greater social change. Instead of viewing their non-profit
structure as a weakness that limits their performance (because they are not motivated
by profit), new non-profits are working hard to maximize the value of every dollar of
funding they receive. The new aim is to maximize their benefit to society.
This is why, in the old model, advertising was seen as a purely profit-seeking activity,
and not applicable to non-profit organizations. Moreover, there were not so many
causes and very few organizations supporting them in the past.
However, today, while the population and the willingness to contribute has increased,
so has the number of non-profits and charities seeking this funding/aid. Advertising is
a much-needed tool, to allow the organization to attract more funding, and make its
work more visible. Greater visibility means greater contributions, which in turn will
help the non-profit to achieve its goal.
Therefore, in the long term, advertising is highly recommended for successful nonprofits, to demonstrate that they are achieving their goals, and spending their funding
wisely, giving the greatest social benefit possible.
REVIEW ACTIVITY SET 2
25-Sep-2012
Page 5 of 5