IGCSE Enterprise: Specimen Questions with Answers 39 - 40 of 49

Passage

Case Study -2

Pottery Barn & Sherwin-Williams

Co-Branding Campaign: Color Your Room

  • One of the biggest benefits of co-branding campaigns is the opportunity to expose your product or service to a brand-new audience. that՚s exactly what home furnishing store Pottery Barn and paint company Sherwin-Williams did when they partnered together back in 2013.
  • Together, the two brands created an exclusive product line of paints, and then added a new section of Pottery Barn՚s website that helped customers easily select paint colors to complement their furniture choices.
  • Customers could coordinate paint colors with picture-perfect Pottery Barn furniture for a mutually beneficial partnership – and style assistance for both brands customers to boot. “Paint Landing,” Pottery Barn՚s landing page for the partnership, contains helpful blog posts and how-to ideas for do-it-yourself painting and decorating.

Question 39 (2 of 12 Based on Passage)

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Short Answer▾

What are the reasons of retaining customers?

Explanation

Customer retention refers to the process of maintain the current customers on whom a business has already spent on acquiring them. Attracting new customers to a firm costs five times more than retaining the old customers. Customer retention helps to increase the profitability of the firm.

Reasons for customer retention are:

  • To save money spent on marketing as acquiring new customers costs a lot more to the firm.
  • To encourage repeat purchases from loyal customers or repeat customers and to earn more profit.
  • Firms get free word of mouth advertising from loyal customers.
  • Firms also gets valuable feedback from retained customers. Customers who make regular purchases from a brand will know about the areas where improvement is required.

Question 40 (3 of 12 Based on Passage)

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Short Answer▾

State the different types of communication techniques used to communicate with the stakeholders.

Explanation

Effective Ways to Communicate with the Stake Holders Are

  • Schedule a meeting: Meetings with the stakeholders are the most common way of communicating with the stakeholders. Meetings can save time in communicating the message to many people.
  • Newsletter: Newsletter is great method of communicating where the feedback of the people is not required. It can be used proactively by a company at given time periods.
  • Conference call: Where the issue is too urgent conference calls are the most used method to communicate with stakeholders by scheduling a conference call which can be of minutes or hours.

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