Ch. 10 – Relationship Marketing and Customer Relationship Management (CRM) – Flashcards
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Transaction-based Marketing
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Buyer and seller exchanges characterized by limited communications and little or no ongoing relationship between the parties.
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Relationship Marketing
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Development, growth, and maintenance of long-term, cost-effective relationships with individual customers, suppliers, employees, and other partners for mutual benefit.
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Frequency Marketing
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Frequent buyer or user marketing programs that reward customers with cash, rebates, merchandise or other premiums.
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Affinity Marketing
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Marketing effort sponsored by an organization that solicits responses from individuals who share common interests and activities.
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Database Marketing
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Use of software to analyze marketing information, identifying and targeting messages toward specific groups of potential customers.
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Customer Relationship Management (CRM)
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Combination of strategies and tools that drives relationship programs, reorienting the entire organization to a concentrated focus on satisfying customers.
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Partnership
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Affiliation of two or more companies that help each other achieve common goals.
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Cobranding
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Cooperative arrangement in which two or more businesses team up to closely link their names on a single product.
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Comarketing
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Cooperative arrangement in which two businesses jointly market each other's products.
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Electronic Data Interchange (EDI)
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Computer to computer exchanges of invoice, orders, and other business documents.
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Vendor-managed Inventory (VMI)
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Inventory management system in which the seller- based on an existing agreement with a buyer- determines how much of a product is needed.
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Supply Chain
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Sequence of suppliers that contribute to the creation and delivery of a product.
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Lifetime Value of a Customer
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Revenues and intangible benefits such as referrals and customer feedback a customer brings to the seller over an average lifetime, less the amount the company must spend to acquire, market to, and service the customer.
