Question

A.State appropriate approach RM or Tm in below scenarios`explaining answer

1-Product Yearly sales is constant at 500 JOD

2-Product grow 25% every quarter

3-You serving cost per customer 20jd while acquisition cost is 21JD

4-Cosmetics clinic

5-Advertising agency

B. State customer switching cost/costs in below scenarios:

1.-An airline passenger with diamond loyalty card thinking to swtich to a new airline

2.-A retailer that use specialized company to transfer cash from shops to bank

3.-Nada always wear prada brand and thinking to start wearing zara fashion brand

4.-Sameer feels hesitant to change bank since he was dealing with it for last 30 years.

5.Sameer feels hesitant to change bank as he dont know where are bank ATM branches as well as knows everyone in his bank

Customer

Answer 1

A. Transactional Marketing(TM) is marketing that focuses on getting the customer to buy a certain product.

Relationship marketing(RM) is marketing with the conscious aim to develop and manage long term and or trusting relationships with customers, distributors, suppliers, or other parties in the marketing environment.

(1) Transactional Marketing, as this would ensure the sales increase for the year which is required given the history of sales for the company. The sales are constant as they have existing customers, but they need to increase those sales by finding new customers.

(2) Relationship marketing, because as the product grows at a constant rate, the company would need long term relationships with existing customers to keep the sales intact.

(3) Transactional Marketing, because the need for the time is to get the customers used to the offered product so as to be able to increase the profits at a later time.

(4) Relationship Marketing, because the patients would need several followup visits and multiple operations in the future. Building a long term relationship will help the business in the long run.

(5) Relationship Marketing, because the client base needs to be maintained in order to keep getting business.

B. Types of switching costs are as below:

• Exit fees (when breaking contract)
• Equipment costs (when changing service provider)
• Installation costs
• Learning costs (time and effort, training)
• Emotional costs (relationships, new employees, brand)
• Start-up costs
• Convenience (location)
• Risk (financially, psychologically, and socially)

(1) Equipment costs

(2) Exit Fees, as the cash transfer company would most certainly have an agreement and a contract with the retailer for providing the services.

(3) Emotional Costs

(4) Emotional Costs

(5) Convenience