Topic 8

Question 1

Transactional selling features

Answer 1

Focus - Sales targets
  Orientation - Service features
  Timescale - Short
  Customer service - Low emphasis
  Customer commitment - Limited
  Customer contact - Limited
  Quality - Concern of operations

Question 2

Relationship marketing

Answer 2

Focus - customer retention 
Orientation - customer benefits
Timescale - long
Customer service - high emphasis
Customer commitment - high
Customer contact - high
Quality - concern of all parties

Question 3

Creating an ethical culture

Answer 3

• the Co-operative bank has an ethical policy that covers human rights, international development, ecological impact, animal welfare and social enterprise
• bank restricts its offer of finance to certain business sectors meaning there are certain industries and activities in which it will not invest such as firms that manufacture or transfer armaments to oppressive regimes, companies that carry out animal testing on cosmetic or house kohl’s product and drums that use child labour
• co-op have been in financial trouble I’m recent years and has been saved with the help of institutional investors that aren’t mutuals
• co-op Group only owns 30% of the banks shares and has lost overall control

Question 4

Looking at a loss leader

Answer 4

HSBC’s ‘MyMoney’ account is aimed at young people between the ages of 7 and 17
•customer can open a MySavings account with a minimum deposit of £10
•when the customer reaches the age of 11, they’re given a current account called ‘MyAccount’ which they use for their spending money and receive payments
•after 11, they’re given a HSBC debit card and PIN which they can use to make purchases in shops or online