SACRED HEART ACADEMY OF LA LOMA

THIRD QUARTER EXAMINATION

S.Y. 2017 - 2018

PRINCIPLES OF MARKETING
Name: ___________________________________ Date: ______________
Gr. and Sec.: ______________________________ Mrs. Erma B. Mercado

This is a 60 item test. The passing score is 36.

KNOWLEDGE
I. CLOZE TEST (10 pts.)
DIRECTION: Supply the missing word on the blank to complete the paragraph.

Relationship marketing is about forming (1.) ____________ relationships with the

(2.) ___________. Rather than encouraging a one-time sale, relationship marketing tries to gain
customer (3.) ____________ by providing quality and exemplary (4.) ______________ and
(5.)______________.
Many customers switch their loyalty to other brands not because they don’t like the
(6.) _____________ but because they were frustrated with the (7.) ______________.
To gain customer loyalty, companies have tried different marketing (8.) ______________.
The use of (9.) _____________ and (10.) _____________have made relationship marketing
easier and a lot more successful.

II. UNDERSTANDING (20 pts.)

A. DIRECTION: Read and understand the case study below and answer the questions
that follow.
Ritz-Carlton, a chain of luxury hotels, who promises a “truly memorable experience” for their guests
caters to the top 5% of corporate and leisure travelers. In surveys of departing guests, 95% report that
they’ve had a truly memorable experience.

Employees are taught to do everything: they can never lose a guest…a staff learns that anyone who
receives a complaint owns that complaint until it’s resolved.

In Ritz-Carlton, newly-hired staff are given intensive training in the art of coddling customers. Customer-
contact people are taught to greet guests warmly and sincerely and to take pride and care in their personal
appearance. Staff are trained to drop whatever they’re doing to help a customer-no matter what they’re
doing or what is their department. Employees are empowered to handle a problem on the spot, without
consulting higher-ups. Each employee can spend up to $2,000 to redress a guest grievance…As they say
“we master satisfaction at the individual level….this is our most sensitive post, our early warning system.

Ritz-Carlton lives by this philosophy: “To take care of customers, you must first take care of those who
take care of customers. Satisfied employees deliver high service value, which then creates satisfied
customers. Satisfied customers, in turn, create sales and profits to the company.

Source: Ligaya, E, et.al (2017) : Principles of Marketing, pp. 10-11

1. What is the name of the company being discussed in the article? ____________________
2. What type of business is the company engaged in? _______________________________
3. What does the company promise its customers? __________________________________
4. Discuss Ritz-Carlton philosophy on employee empowerment. How does the company live
this philosophy? __________________________________________________________
________________________________________________________________________
________________________________________________________________________
5. Explain your idea of “the art of coddling customer”? Apart from Ritz-Carlton, cite a
company or business that exemplify this skill. ___________________________________
________________________________________________________________________
________________________________________________________________________
6. What is Ritz-Carlton’s belief about customer satisfaction? __________________________
________________________________________________________________________
________________________________________________________________________
7. How does Ritz-Carlton idea of customer satisfaction relate to relationship marketing?
________________________________________________________________________
________________________________________________________________________
8. “The customer is always right” a slogan popularized by Marshal Field. Do you think Ritz-
Carlton agree with him? Defend your answer. ___________________________________
________________________________________________________________________
________________________________________________________________________

B. DIRECTION: Make a 3-column table that shows at least 5 Marketing Strategies. Fill in
the details to show how they differ from others. (10 pts.)

DIRECTION: Discuss briefly the 4 tactics in marketing and identify the distinct
customer behavior being addressed by each. ( 10 pts.)

What are the 5 m’s in market environment? Discuss in 1-2 sentences

how each factor affects the company’s ability to establish strong
customer relationship. (10 pts.)