Marketing, Sales and Customer RelationshipsIntroductionFor a small business, marketing is not merely advertising. It is the coordinated process of identifying customer needs, designing value, communicating that value, delivering an appropriate experience, and building relationships that support profitable growth. Sales converts market interest into exchange, while customer relationship management (CRM) helps the firm retain customers, learn from interactions, and improve future decisions. Small firms face distinctive marketing conditions. They often have limited budgets, informal processes, concentrated customer bases, weak bargaining power, and close personal contact between owners and customers. These constraints can be disadvantages, but they also permit speed, authenticity, specialization, and personal service. Effective small-business marketing therefore depends less on spending the most and more on selecting a clearly defined target market, communicating a credible value proposition, and managing every customer contact consistently. This chapter integrates marketing strategy, branding, pricing, selling, service quality, retention, digital channels, e-commerce, and CRM. The emphasis is application: translating concepts into decisions that an entrepreneur can implement and evaluate. Learning ObjectivesBy the end of this chapter, students should be able to: - Design an integrated marketing mix for a small business.
- Segment markets, select target customers, and formulate a value proposition.
- Develop a coherent brand and pricing strategy.
- Explain and manage personal selling and sales pipelines.
- Evaluate service quality and design customer-retention practices.
- Select appropriate digital-marketing, social-media, and e-commerce activities.
- Use CRM systems and performance measures responsibly.
- Identify ethical, legal, and operational risks in marketing and sales.
1. The Strategic Role of Marketing in Small BusinessMarketing begins with the customer, not with the product. A product-oriented entrepreneur asks, “What can we make?” A market-oriented entrepreneur asks, “Which customer problem can we solve better, for whom, and under what conditions?” Market orientation involves three linked activities: - Generating intelligence: learning about customers, competitors, regulations, and trends.
- Disseminating intelligence: sharing relevant information across the business.
- Responding: adapting the offering, operations, and communication to create customer value.
Customer value is the customer’s assessment of the benefits received relative to the monetary and non-monetary sacrifices made. Benefits may include performance, convenience, status, reliability, or emotional satisfaction. Sacrifices include price, time, effort, risk, and uncertainty. Because value is perceived rather than purely technical, a small business must understand the customer’s evaluation criteria. A useful strategic sequence is: - Analyze the environment and customer problem.
- Segment the market.
- Select a target segment.
- Position the offering.
- Design the marketing mix.
- Implement, measure, and improve.
Segmentation, Targeting, and PositioningSegmentation divides a broad market into groups with relatively similar needs or behaviors. Common bases include: | Segmentation basis | Examples |
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| Geographic | Neighborhood, city, climate, delivery radius | | Demographic | Age, income, household size, occupation | | Psychographic | Lifestyle, values, personality, risk orientation | | Behavioral | Usage rate, purchase occasion, loyalty, benefits sought | | Firmographic | Industry, firm size, location, purchasing process (business markets) |
A segment should be identifiable, reachable, sufficiently substantial, responsive to a distinct offering, and compatible with the firm’s capabilities. Entrepreneurs should avoid targeting “everyone,” because broad targeting usually produces vague messages and inefficient spending. Targeting involves evaluating segments according to attractiveness and strategic fit. A small firm may use focused targeting, serving one narrow segment, or differentiated targeting, serving several segments with adapted offerings. Positioning is the place an offering occupies in the target customer’s mind relative to alternatives. A positioning statement can be structured as follows: “For [target customer], [brand] is the [category or frame of reference] that [principal benefit], because [reason to believe].” For example: “For time-poor urban professionals, QuickBowl is the healthy weekday meal service that delivers nutritionally balanced dinners in under 20 minutes, because its menus are prepared by registered dietitians and delivered locally.” The statement is an internal strategic tool. Customer-facing communication should use clear, credible, and memorable language rather than abstract marketing terminology. 2. The Integrated Marketing MixThe traditional marketing mix consists of product, price, place, and promotion. For services, three additional elements are frequently added: people, process, and physical evidence. Integration means that these elements reinforce the same positioning rather than sending conflicting signals. Product and Service DesignThe product includes the core benefit, the actual offering, and supporting elements. A bicycle-repair business, for example, provides not only mechanical repair but also reliability, convenience, advice, warranties, booking systems, and post-service support. Entrepreneurs should define: - The customer problem being solved.
- The minimum viable offering.
- Features that create meaningful differentiation.
- Quality standards and service guarantees.
- Complementary products or services.
- The offering’s stage in its life cycle.
A product portfolio may contain a basic option, a standard option, and a premium option. Such architecture can clarify choices and serve different willingness-to-pay levels, but excessive complexity increases inventory, training, and communication costs. PricePrice is both an economic sacrifice and a signal of quality, positioning, and fairness. Pricing decisions should consider customer value, costs, competitors, capacity, objectives, and legal constraints. A basic contribution calculation is: Contribution per unit = Selling price per unit − Variable cost per unit The variables must be measured in the same currency per unit. This relationship is useful for short-run decisions when fixed costs do not change and the unit can actually be sold. It does not by itself determine the best price. The break-even quantity is: QBE = F ÷ (P − V) where QBE is break-even units, F is total fixed cost in currency, P is selling price per unit, and V is variable cost per unit. The formula assumes constant unit price and variable cost, all produced units can be sold, and fixed costs remain unchanged over the relevant range. Worked example. A small bakery sells gift boxes for $24. Variable cost is $14 per box and monthly fixed cost is $4,000. Contribution per box is $10. Therefore: QBE = 4,000 ÷ (24 − 14) = 400 boxes. The bakery must sell 400 boxes per month to cover the specified costs. If demand at that price is only 250 boxes, the owner should not simply raise the price without considering demand elasticity, perceived value, and competitor responses. Common pricing approaches include: - Cost-plus pricing: adding a markup to cost; simple but may ignore customer value.
- Competitor-based pricing: referencing comparable offers; useful in transparent markets but risks imitation.
- Value-based pricing: setting price according to perceived benefits and willingness to pay; strategically powerful but information-intensive.
- Penetration pricing: initially using a low price to encourage adoption; risky if customers later resist increases.
- Premium or skimming pricing: charging more for distinctive benefits, innovation, scarcity, or status.
- Subscription pricing: charging regularly for continuing access or service.
Discounts should have a clear purpose, such as introducing a product, filling off-peak capacity, or rewarding a profitable segment. Permanent discounting can weaken reference prices and train customers to delay purchases. Place and DistributionPlace concerns how the offering reaches the customer. Options include a physical store, direct delivery, marketplaces, wholesalers, agents, click-and-collect, and an owned e-commerce site. The choice depends on customer convenience, product characteristics, geographic coverage, control, margin, and investment. An omnichannel approach coordinates multiple channels so that information, pricing, inventory, and service policies are reasonably consistent. It does not require every business to use every channel. A small firm should select channels it can operate reliably. Promotion and Integrated CommunicationPromotion includes advertising, public relations, sales promotion, personal selling, content, events, email, social media, and direct communication. Integrated marketing communication aligns the message, visual identity, timing, and call to action across channels. A practical campaign brief should specify: - Target audience.
- Customer insight or problem.
- Desired response.
- Core message and evidence.
- Channel and budget.
- Timing and owner.
- Performance measure.
The communication objective must be realistic. Awareness campaigns should not be judged only by immediate sales; conversely, a sales campaign needs a conversion measure rather than merely impressions. People, Process, and Physical EvidenceIn service businesses, employees and owners are part of the offering. Recruitment, training, empowerment, appearance, and emotional labor influence perceived quality. Processes should make the customer journey clear, fast, and dependable. Physical evidence includes the premises, packaging, website, invoices, uniforms, signage, and interface design. These visible cues reduce uncertainty when customers cannot assess quality before purchase. 3. Brand StrategyA brand is a set of associations, expectations, and experiences linked to an offering and its name, symbols, design, or reputation. Branding is not limited to a logo. It includes the promise made to customers and the evidence that the business consistently delivers. A small-business brand should establish: - Purpose: why the business exists beyond making a sale.
- Promise: the value customers should expect.
- Personality: human characteristics expressed through language and behavior.
- Identity: name, color, typography, symbols, packaging, and tone.
- Proof: reviews, demonstrations, certifications, guarantees, and outcomes.
Brand equity is the additional value associated with a branded offering compared with an otherwise similar unbranded alternative. It can support trust, repeat purchase, employee pride, and price tolerance. It is built through consistency, distinctiveness, relevance, and credible performance—not through visual design alone. Brand decisions also involve architecture. A firm may use one master brand, separate brands for different offerings, or an endorsed structure in which a product has its own identity while being supported by the parent company. Small firms should avoid unnecessary brand proliferation because each brand requires maintenance and communication. A brand audit asks: What do we claim? What do customers actually experience? What do competitors own in the customer’s mind? Where are the gaps between promise and delivery? 4. Personal Selling and Sales Pipeline ManagementPersonal selling is a two-way process in which a representative identifies needs, presents a solution, handles concerns, and facilitates an exchange. It is especially important when products are complex, expensive, customized, risky, or relationship dependent. A consultative selling process commonly includes: - Prospecting: identifying potential customers who fit the target profile.
- Qualification: assessing need, authority, budget, timing, and fit.
- Preparation: researching the customer and planning questions.
- Needs discovery: listening and diagnosing before presenting.
- Solution presentation: linking benefits to stated needs.
- Objection handling: clarifying concerns rather than arguing.
- Closing: agreeing on the next commitment or transaction.
- Follow-up: confirming delivery, measuring satisfaction, and identifying future needs.
Ethical selling requires accurate claims, transparent prices, respect for customer autonomy, and no manipulation of vulnerable customers. The objective is not merely to close today’s sale but to create a relationship that remains valuable to both parties. A sales pipeline represents prospects at stages such as lead, qualified opportunity, proposal, negotiation, closed-won, or closed-lost. Each stage must have observable entry and exit criteria. “Proposal sent” is a better stage definition than “highly interested,” because the former can be verified. A simple expected-value forecast is: Expected sales value = ∑(Opportunity valuei × Probability of closingi) where each opportunity i has a monetary value and an estimated probability between 0 and 1. The estimate is useful for planning but is not guaranteed revenue. Probabilities should be based on historical evidence or explicit stage assumptions, not optimism. Example. Three opportunities are valued at $10,000 with a 20% probability, $6,000 with a 50% probability, and $3,000 with an 80% probability. Expected sales value is: (10,000 × 0.20) + (6,000 × 0.50) + (3,000 × 0.80) = 2,000 + 3,000 + 2,400 = 7,400. The firm should plan cautiously because outcomes are uncertain and opportunities may not be independent. Pipeline metrics include lead-to-opportunity conversion, opportunity-to-win conversion, average deal value, sales-cycle length, response time, and revenue by source. Managers should examine definitions and data quality before comparing salespeople or channels. 5. Service Quality and Customer RetentionService quality is evaluated through the customer’s comparison of expectations with perceived performance. Important dimensions include reliability, responsiveness, assurance, empathy, and tangibles. Reliability—doing what was promised accurately and consistently—is often more important than promotional creativity. The customer journey maps stages such as awareness, consideration, purchase, onboarding, use, support, renewal, and advocacy. At each stage, the firm should identify customer goals, possible friction, employee responsibilities, and evidence of success. Useful service measures include: - First-contact resolution.
- On-time delivery.
- Complaint-response time.
- Repeat-purchase rate.
- Refund or defect rate.
- Customer satisfaction.
- Customer effort.
- Recommendation intention.
Retention is economically important because acquiring a new customer commonly requires more marketing and selling effort than serving an existing customer. However, retention is not automatically profitable. A customer who demands costly service and generates little margin may not deserve the same retention investment as a high-value customer. A basic retention rate for a period can be calculated as: Retention rate = (Customers at end of period − New customers acquired during period) ÷ Customers at beginning of period × 100% This formula assumes the customer count is defined consistently and that “new” customers are correctly identified. If a firm begins with 200 customers, acquires 30, and ends with 190, retention rate is (190 − 30) ÷ 200 × 100% = 80%. Customer lifetime value (CLV) can be estimated in several ways. A simple contribution-based approximation for a stable, non-contractual business is: CLV ≈ Average contribution per period × Expected number of active periods − Retention and service costs This is an approximation, not a universal law. For subscription businesses with discounting and stable assumptions, a commonly used simplified expression is: CLV ≈ (Monthly contribution × Monthly retention probability) ÷ (1 + Monthly discount rate − Monthly retention probability) The formula assumes constant contribution, constant retention probability, and a constant discount rate, and it excludes acquisition cost unless explicitly added. Small firms should treat CLV as a decision aid and test its sensitivity to churn, margins, and service costs. Recovery is part of service management. A good recovery process acknowledges the problem, apologizes where appropriate, explains the remedy, acts quickly, records the cause, and prevents recurrence. Compensation should be fair and proportionate rather than an automatic substitute for operational improvement. 6. Digital Marketing, Social Media, and E-CommerceDigital marketing enables targeting, measurement, personalization, and rapid experimentation. It also creates risks of privacy invasion, misleading claims, platform dependence, and reputational damage. An effective digital system usually combines: - Owned media: website, email list, blog, app, and customer database.
- Earned media: reviews, referrals, shares, and editorial coverage.
- Paid media: search advertising, social advertising, display advertising, and sponsorships.
Owned channels are strategically valuable because the firm has greater control over access and data. Social platforms are useful for discovery, community, demonstrations, and dialogue, but algorithm changes can reduce reach without warning. Content should serve a customer purpose: explain a problem, demonstrate use, answer objections, show evidence, or support a community. Posting frequency is less important than relevance, quality, and response capability. Businesses should establish rules for handling criticism, personal data, confidential information, and harmful content. A basic digital conversion rate is: Conversion rate = Number of desired actions ÷ Number of relevant visitors or opportunities × 100% The denominator must be specified. A website purchase conversion rate differs from an email click-through rate and should not be presented as the same measure. For paid acquisition: Customer acquisition cost (CAC) = Total acquisition spending ÷ Number of new customers acquired If a campaign costs $1,200 and produces 40 new customers, CAC is $30 per customer. The calculation should include the costs chosen by the firm—such as media, creative, software, and campaign labor—and should be compared with contribution, not merely revenue. E-commerce requires more than a digital catalogue. Core capabilities include accurate product information, search, mobile usability, secure payment, inventory visibility, delivery communication, returns, accessibility, fraud controls, and customer support. A technically attractive store that cannot fulfill orders reliably damages the brand. Artificial intelligence can assist with product recommendations, customer-service triage, demand forecasting, content drafting, and sentiment analysis. Human oversight remains necessary because AI may reproduce bias, invent information, expose confidential data, or make inappropriate inferences. Firms should define approved data, review processes, escalation rules, and disclosure practices. 7. Customer Relationship Management SystemsCRM is both a philosophy and a technology. As a philosophy, it treats customer knowledge and relationship quality as organizational assets. As a system, it records contacts, opportunities, purchases, service cases, preferences, and consent. A small-business CRM implementation should begin with processes rather than software features. The firm should decide: - What customer information is necessary?
- Who may enter, view, correct, or export it?
- What constitutes a qualified lead?
- Which follow-ups are mandatory?
- How will complaints and consent be recorded?
- Which reports will guide decisions?
Poor CRM outcomes commonly result from duplicate records, incomplete fields, inconsistent definitions, untrained users, excessive data collection, or treating the system as surveillance. Data minimization, accuracy, security, access control, retention limits, and lawful communication are essential. Applicable privacy and consumer-protection rules vary by jurisdiction; businesses should obtain appropriate legal advice. A CRM dashboard might combine operational, customer, and financial indicators: | Objective | Possible indicator |
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| Generate demand | Qualified leads, cost per lead, source quality | | Convert demand | Conversion rate, win rate, sales-cycle duration | | Deliver value | On-time delivery, defect rate, first-contact resolution | | Retain customers | Repeat purchase, churn, retention rate | | Protect profitability | Contribution margin, CAC, service cost | | Build advocacy | Referral rate, review quality, recommendation intention |
Metrics should support decisions. Vanity measures such as impressions or follower count may be useful diagnostic signals, but they are not substitutes for profitable customer outcomes. 8. Integrated Planning and ControlA marketing plan should connect strategy to action. A compact plan contains: - Situation analysis and key assumptions.
- Target segment and positioning.
- Objectives stated in measurable terms.
- Product, price, distribution, and communication decisions.
- Sales process and service standards.
- Budget, timeline, and responsibilities.
- Data, privacy, and compliance controls.
- Review dates and corrective actions.
Objectives should be specific about the population, period, and measure. For example, “increase repeat purchases among local subscription customers from 35% to 45% within six months” is more useful than “improve loyalty.” At review points, managers should distinguish outcomes from causes. A fall in sales may result from weaker traffic, lower conversion, higher prices, poor availability, a competitor’s action, or service failures. Testing one change at a time is not always possible, but experiments should use a clear hypothesis, defined measure, comparison where feasible, and a decision rule. Illustrative Case: GreenCup Mobile CaféBackgroundGreenCup is a fictional small business operating a mobile coffee van near offices and a university campus. It has strong morning traffic but weak afternoon sales and inconsistent social-media activity. Its owner competes with two cafés and several vending machines. ProblemThe business has no clear target segment, prices are based on copying a nearby café, customer information is not recorded, and complaints about slow service occur during peak periods. The owner wants growth but has limited capital. AnalysisObservation and short interviews show two attractive segments: office workers seeking speed and students seeking affordable drinks and a place-related social experience. GreenCup cannot serve both with the same promise at all times. Its strongest capability is rapid service from a compact menu, not extended seating. The owner maps the customer journey and finds that ordering is delayed by too many customizations. Afternoon demand is low because the van leaves the campus before classes finish. Reviews praise friendliness but mention unpredictable availability. Approach and SolutionGreenCup adopts a focused positioning: “Fast, responsibly sourced coffee for people moving between commitments.” It introduces a small core menu, a premium seasonal drink, and a prepaid digital stamp program. Prices are not simply copied; the owner estimates contribution by item and uses a modest premium for ethically sourced beans while offering a lower-priced brewed coffee. The van publishes a reliable schedule through an owned website and social channels. A QR code enables pre-ordering during peak periods. The owner uses a basic CRM or secure customer database to record consented email addresses, purchase preferences in aggregate, and complaints. Staff receive a service standard: acknowledge each customer, provide an accurate waiting-time estimate, and resolve errors immediately. The sales and marketing plan tracks afternoon transactions, average transaction value, repeat-purchase rate, queue time, complaint rate, and contribution by product. A two-week test compares extended campus hours with a paid social campaign. The decision is based on incremental contribution after labor and promotional costs, not on reach alone. OutcomeIn this illustrative scenario, the extended-hours test produces more afternoon transactions and higher contribution than the advertising-only test. However, demand is insufficient on some days, so GreenCup keeps the later schedule only on high-demand days. The simplified menu reduces queue time, while the digital stamp program increases repeat visits but requires privacy controls and clear terms. Learning PointsThe case demonstrates that marketing integration is operational. Positioning must be supported by capacity, schedule, service behavior, price, and evidence. Digital tools are useful when connected to a customer problem and a measurable decision. Retention programs should reward profitable behavior without creating unnecessary data or discount costs. Challenges, Ethics, and GovernanceSmall-business marketing faces several recurring challenges: - Limited data may make customer estimates unreliable.
- Small samples can produce misleading conclusions.
- Platform algorithms and advertising costs change quickly.
- A successful promotion may exceed operational capacity.
- Deep discounts can damage margins and brand meaning.
- Personalization may become intrusive or discriminatory.
- Fake reviews, hidden sponsorships, and exaggerated claims damage trust.
- Customer data can be lost, misused, or retained unnecessarily.
Ethical marketing requires truthfulness, fairness, transparency, respect for consent, accessibility, and accountability. Businesses should clearly identify paid endorsements, avoid dark patterns that pressure customers into unwanted choices, disclose important restrictions, and provide accessible ways to complain or unsubscribe. Marketing must also comply with applicable consumer-protection, advertising, competition, electronic-communication, accessibility, and privacy laws. Best-Practice ChecklistBefore launching a marketing or sales initiative, ask: - Is the target customer clearly defined?
- Is the customer problem important and evidenced?
- Does the value proposition differ meaningfully from alternatives?
- Can operations deliver the promised experience?
- Does price reflect cost, value, positioning, and willingness to pay?
- Is there a clear next action for the customer?
- Are sales stages and responsibilities explicit?
- Are service failures recorded and corrected?
- Are metrics connected to profit, retention, or customer value?
- Are data collection, consent, security, and claims ethically and legally appropriate?
Chapter SummaryMarketing, sales, and customer relationships form one integrated system. Market orientation begins with understanding customer problems and selecting a viable target segment. Positioning provides a clear value direction, while the marketing mix translates that direction into product, price, place, promotion, people, process, and physical evidence decisions. Pricing must consider contribution, demand, perceived value, competitors, and strategic objectives. Branding creates a credible and distinctive promise, but brand equity depends on consistent delivery. Personal selling is most effective when it is consultative, evidence-based, and supported by defined pipeline stages. Service quality depends especially on reliability, responsiveness, assurance, empathy, and effective recovery. Digital marketing and e-commerce expand reach and measurement, but they require operational reliability, privacy protection, and disciplined interpretation of metrics. CRM systems create value only when data, processes, responsibilities, and governance are clear. Retention and lifetime-value analysis should guide investment, while recognizing that estimates depend on assumptions. Ultimately, sustainable small-business growth comes from creating and delivering customer value profitably, ethically, and consistently. Key TermsMarket orientation: An organizational approach that uses customer and market knowledge to guide decisions. Segmentation: Dividing a market into groups with relatively similar needs or behaviors. Targeting: Selecting the market segment or segments the firm intends to serve. Positioning: Establishing a distinctive place for an offering in the target customer’s mind. Value proposition: A clear statement of the benefits an offering provides and why it is credible. Marketing mix: The coordinated set of product, price, place, and promotion decisions, often extended for services. Brand equity: The additional value associated with a recognized and trusted brand. Value-based pricing: Setting price with reference to customers’ perceived benefits and willingness to pay. Contribution: Selling price minus variable cost per unit. Break-even point: The sales quantity or revenue at which total contribution covers fixed costs. Personal selling: Interactive communication designed to understand needs and facilitate an exchange. Sales pipeline: A structured representation of opportunities progressing through defined sales stages. Service quality: The customer’s evaluation of service performance relative to expectations. Customer retention: The continuation of a customer relationship over a defined period. Customer lifetime value: An estimate of the contribution expected from a customer over the relationship. Customer acquisition cost: Acquisition spending divided by the number of new customers acquired. Owned media: Communication channels controlled by the firm, such as its website or email list. Conversion rate: The proportion of relevant visitors or opportunities completing a defined action. Customer relationship management: The coordinated philosophy, process, and technology used to manage customer interactions and knowledge. Omnichannel marketing: Coordinated use of multiple customer-facing channels. Review QuestionsShort Answer Questions- What is the difference between segmentation, targeting, and positioning?
- Why should a small business integrate its marketing-mix decisions?
- Identify four stages in a consultative selling process.
- What is the purpose of a CRM system?
- Distinguish between owned, earned, and paid media.
Long Answer Questions- Explain how a small business can develop a value proposition and translate it into an integrated marketing mix.
- Compare cost-plus, competitor-based, and value-based pricing, including the circumstances in which each may be useful.
- Discuss the relationship between service quality, customer retention, and profitability.
- Explain how a sales pipeline supports forecasting and managerial control.
- Evaluate the opportunities and risks of digital marketing, social media, and e-commerce for a small firm.
Analytical / Application Questions- A small consultancy has a strong technical product but low conversion rates. Design a segmentation, positioning, and consultative-selling approach to improve performance.
- A retailer has rising website traffic but declining profit. Propose a diagnostic framework using conversion, CAC, contribution, fulfillment, and retention measures.
- Develop a one-page marketing and CRM plan for a local service business, including target segment, positioning, pricing logic, channels, service standards, metrics, and privacy safeguards.
Multiple Choice Questions with AnswersQuestion 1Which sequence correctly represents the strategic marketing process? A. Promotion, production, hiring, auditing B. Segmentation, targeting, positioning, marketing-mix design C. Pricing, borrowing, exporting, recruiting D. Branding, accounting, taxation, distribution Correct Answer: B. Segmentation, targeting, positioning, marketing-mix design Question 2A product sells for $30 and has a variable cost of $18. What is its contribution per unit? A. $12 B. $18 C. $30 D. $48 Correct Answer: A. $12 Question 3Which pricing approach primarily considers customers’ perceived benefits and willingness to pay? A. Cost-plus pricing B. Competitor-based pricing C. Value-based pricing D. Random pricing Correct Answer: C. Value-based pricing Question 4Which sales-pipeline stage should be defined by observable evidence? A. Very interested B. Likely to buy C. Proposal sent D. Positive attitude Correct Answer: C. Proposal sent Question 5A business begins with 500 customers, acquires 80 new customers, and ends with 460 customers. What is its retention rate? A. 76% B. 84% C. 92% D. 108% Correct Answer: C. 92% Question 6Which is an example of owned media? A. A customer’s unsolicited review B. A paid search advertisement C. The firm’s email list D. A newspaper article written independently Correct Answer: C. The firm’s email list Question 7What is the primary purpose of a customer journey map? A. To calculate tax liability B. To identify customer goals, friction, and service responsibilities across stages C. To replace all employee training D. To guarantee a particular sales volume Correct Answer: B. To identify customer goals, friction, and service responsibilities across stages Question 8A campaign costs $900 and acquires 30 new customers. What is the customer acquisition cost? A. $3 B. $30 C. $270 D. $930 Correct Answer: B. $30 Question 9Which practice best reflects ethical CRM governance? A. Collecting every possible personal detail B. Sharing customer data without notice C. Using necessary data with consent, security, and access controls D. Retaining inaccurate data indefinitely Correct Answer: C. Using necessary data with consent, security, and access controls Question 10Why should a small firm avoid judging marketing success only by follower count? A. Followers are never measurable B. Follower count may not indicate conversion, contribution, retention, or customer value C. Followers always reduce sales D. Social media cannot support customer relationships Correct Answer: B. Follower count may not indicate conversion, contribution, retention, or customer value
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