A Comparison of the Marketing Concept and Customer Relationship Management

question 249

Multiple Choice

A comparison of the marketing concept and customer relationship management indicates that customer relationship management

• A) and the marketing concept are in fact identical.
• B) attempts to improve profits by keeping quality high, while the marketing concept attempts to improve profits by a careful design of the promotional mix.
• C) turns the marketing concept upside down. The marketing concept emphasized that marketing was the most important function performed by a firm, but customer relationship management views management to be the most important function.
• D) extends the marketing concept by calling for the firm to learn more about its customers so that it not only satisfies them, but exceeds their expectations over time.

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Definitions:

Promissory Note

A financial instrument that represents a written promise by one party to pay a specified sum of money to another party, either on demand or at a predetermined future date.

Account Receivable

Funds that are yet to be received from customers to whom goods or services have been sold on credit.

Formal Credit Instrument

A legal document that represents an agreement to extend credit, specifying the terms under which credit is provided and must be repaid.

Maturity Date

The specified date on which the principal amount of a financial instrument is due to be paid in full.