Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF QUEZON
RECTO MEMORIAL NATIONAL HIGH SCHOOL
Tiaong, Quezon
PRINCIPLES OF MARKETING
Quarter 1: Module 2 Week 3-5
WHAT I NEED TO KNOW
Most Essential Learning Competency:
After going through this module, you are expected to
achieve:
1. define “relationship marketing” and the value of
customers
2. identify and describe “relationship development
strategies”; and
3. relate the topic in real life experiences or in life
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Lesson 2 : Relationship Marketing
WHAT I KNOW (PRETEST)
I.Matching-Type.
Meet the Need
Directions: Choose appropriate letter in the box and write the letter in the space
provided before the number.
____1. The salesperson phones the customer a short time after the sale to check
whether the product is meeting the customer’s expectations. The
salesperson also solicits from the customer any product improvement
suggestions and any specific disappointments. This information helps the
company continuously to improve its offering.
____2. The company salesperson sells the product but does not follow up in any way.
____3. The company works continuously with the customer and with other
customers to discover ways to deliver better value.
____4. The salesperson or others in the company phone the customer from time to
time with suggestions about improved product use or helpful new products.
____5. The salesperson sells the product and encourages the customer to call
whenever he or she has any questions or problems.
A. Reactive D. Basic
B. Proactive E. Accountable
C. Partnership
WHAT’S IN (LOOKING BACK TO YOUR LESSON
II.MULTIPLE CHOICE.
Directions: Read each question carefully and choose the letter of the best answer.
Write your answer in the space provided before the number.
____1. Is a marketing strategy a company uses to determine if it can produce a viable
product consumer want or need,whether the company can produce enough
products to fill the need, and the marketing method by which the need can
be filled?
a. New concept in Marketing c. Tradition Concept in Marketing
b. Sales Concept d. Marketing Concept
____2. This concept refers to the idea that people will buy more goods and services
through personal is?
a. Marketing Concept c. Production Concept
b. Sales Concept d. None of the above
____3. An organizational function and a set of processes for creating,communicating,
and delivering value to customers and for managing customer relationship
in ways that benefit the organization and its stakeholders.
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a. Marketing c. Production
b. Marketing Research d. Sales
____4. This concept refers to the views that organizations must satisfy the needs of
consumers in a manner that gives for society’s benefit.
a. Marketing Concept c. Production Concept
b. Sales Concept d. None of the above
____5. Top-level broad goals to show how the business can benefit from channels.
So, goals are the broad aims used to shape strategy. They describe how
marketing will contribute to the business in key areas of growing sales,
communicating with audience and saving money.
a. SMART Objectives c. Objectives
b. Goals d. None of the above
WHAT’S NEW (BRIEF INTRODUCTION
According to Gilaninia et al (2011) Relationship marketing involves creating,
maintaining and enhancing strong relationships with customers and other
stakeholders. Increasingly, marketing is moving away from a focus on individual
transactions and towards a focus on building value-laden relationships and
marketing networks. Relationship marketing is oriented more towards the long
term. The goal is to deliver long- term value to customers and the measure of
success is long-term customer satisfaction. Relationship marketing requires that all
the company’s departments work together with marketing as a team to serve the
customer. It involves building relationships at many levels – economic, social,
technical and legal – resulting in high customer loyalty.
We can distinguish five different levels of relationships that can be formed With
customers who have purchased a company’s product, such as a car or a piece of
equipment:
1. Basic. The company salesperson sells the product but does not follow up in any way.
2. Reactive. The salesperson sells the product and encourages the customer to call
whenever he or she has any questions or problems.
3. Accountable. The salesperson phones the customer a short time after the sale to
check whether the product is meeting the customer’s expectations. Thesalesperson also
solicits from the customer any product improvement suggestions and any specific
disappointments. This information helps the company continuously to improve its
offering.
4. Proactive. The salesperson or others in the company phone the customer from time
to time with suggestions about improved product use or helpful new products.
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5. Partnership. The company works continuously with the customer and with other
customers to discover ways to deliver better value.
Forbes.com defined Relationship marketing is a strategy designed for customer
loyalty, interaction, and long-term engagement to be fostered. It is designed to
develop strong connections with customers by providing them with information
directly suited to their needs and interests by promoting open communication.
Customer relationship is the development of an ongoing connection between a
company and its customers. The relationship involves marketing communications,
sales support, technical assistance and customer service. Customer relationship is
a big part of marketing. Relationship marketing is an interaction with current
customers and potential ones.
According to Serrano, Relationship Marketing includes activities aimed at developing
and managing trusting and long-term relationships with larger customers. (Customer
profile, buying patterns and history of contacts are kept in a sales database)
Characteristics of Relationship Marketing:
1. It focuses on the long-term rather than the short-term.
2. It focuses on partners and customers rather than on the company’s products.
3. It puts more emphasis on customer retention and growth than on customer
acquisition.
4. It relies on cross-functional teams rather than on departmental-level work.
5. It relies more on listening and learning than on talking.
Benefits in developing and implementing customer relationship
1. Consistent customer experience
2. Customer Feedback
3. Customer Profitability
4. Customer advocate
5. Innovation
BENEFITS OF RELATIONSHIP MARKETING
In the business world, retaining customers has a lesser cost at least eight times
compared to acquiring new ones. Thus, this marketing capitalizes on the same fact
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and is beneficial to the company in several ways.
A. Understanding customer characteristics; - the company can segregate its
customers into groups based on their characteristics like purchasing power,
frequency and volume of sale transactions. It also helps the company get
valuable feedback from its customers and understand their needs and
expectations.
B. Delivery and meeting expectations - if the company knows what its customers’
needs are, it will help reduce wastage due to trial and error methods. It is
easier to create a product if the features and specifications of the product are
known.
C. Repeat Business - Sellers should maintain good attitude to the buyers. By
doing this, buyers will feel that they do not need to switch sellers.
D. Prevents negative transition. - Trust and loyalty go hand in hand and it is
super beneficial for all business. It will help prevent customers from turning
to competitors.
E. Word-of-mouth marketing
a. Increasing customer base - satisfied existing customer is 100% more likely
to recommend a product/service to a prospective customer. Apart from
customer, referrals, there are several other ways to increase customer
satisfaction by employing methods of utilizing social networking websites,
blogs, informal surveys, benefits on loyalty cards,timely response to
complaints and requests as a constant reminder of its presence around and
retention equity is improved by enhancing customer satisfaction.
F. Reduced marketing cost - benefits also include lesser marketing costs and
More value creation. This can be explained by stating the following statistics:
every 5% increase in customer retention can increase a company’s annual
profits from at least 25% to as much as 125%, while simultaneously leading
to a reduction of 10% in marketing costs. An existing customer will spend
33% more than a new customer to buy a company’s product/service.
G. Identification with the company - the benefits are reaped both by the company
and the customers. It helps customers identify more with the company.
Keeping your communication lines open and keeping in touch with the
customers makes them feel like they are being valued. It will keep customers
coming in and build brand equity for the company in the long run.
H. Product Market Expansion - the company’s employees must be ready to deliver
beyond the company’s boundaries on customer demand.
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WHAT’S MORE (ACTIVITIES)
Directions: Read carefully the following activities and answer the following
questions asked for. Write your answer in yellow pad paper.
Activity 1: Choose two brands and Identify how the following brands practice
Relationship Marketing. Bench, Okada, SM, Petron, Mercury Drug Store, Puregold,
Jollibee, ABS-CBN, Robinsons, & A water refilling station. Answer shall be written
in a whole pad paper .
Activity 2: Is Customer Relationship differ from “SUKI” of Filipino value system?
Why?
WHAT I HAVE LEARNED (REMEMBER)
Relationship marketing is a facet of customer relationship management (CRM)
that focuses on customer loyalty and long-term customer engagement rather than
shorter-term goals like customer acquisition and individual sales. The goal of
relationship marketing (or customer relationship marketing) is to create strong, even
emotional, customer connections to a brand that can lead to ongoing business, free
word-of-mouth promotion and information from customers that can generate leads.
Relationship marketing is about forming long-term relationships with
customers. Rather than trying to encourage a one-time sale, relationship marketing
tries to foster customer loyalty by providing exemplary products and services. This is
different than most normal advertising practices that focus on a single transaction;
watch ad A and buy product B. Relationship marketing, by contrast, is usually not linked
to a single product or offer. It involves a company refining the way they do business in
order to maximize the value of that relationship for the customer.
REFLECTIVE LEARNING SHEET
During the current COVID-19 pandemic, global markets are severely disrupted.
Businesses are forced to explore innovative solutions to overcome the growing negative
implications of this unprecedented crisis.
Due to various quarantine measures imposed by governments around the world,
certain industries have been affected much more than others. Asonly businesses involved in
the value chain of essential commodities are operational, the rest of the industries need to
evaluate how they will respond to business unusual. The existing business continuity plans may
not be sufficient to address the fast-changing variables presented by COVID-19.
Reflective Question. Can businesses still use relationship marketing despite this pandemic
situation? Explain.
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
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Lesson 3 : Customer Value
WHAT I NEED TO KNOW (EXPECTATIONS):
As we study and immerse ourselves in “Principles of
Marketing” in the process, it is necessary to know some
Marketing Principles and Strategies. The module is
Meet the
subjected Need Module 3 – Explain the Value of
to discuss
Customer.
WHAT I KNOW (PRETEST)
Matching-Type. Directions: Match letters in the box below in the following
statements and write it in the space provided before the number.
____1. It is not just in the way that every company says that they do. Make sure that
every interaction you have with your customers shows them that they are valued.
____2. Encourage shoppers to return to stores where they frequently make purchases.
____3. Like a lot of what we’ve been mentioning, it comes back to interactions. While
electronic communication is great, and often preferred, having a face-to-face meeting
can help the customer feel valued.
____4. The act of taking care of the customer's needs by providing and delivering
professional, helpful, high quality service and assistance before, during, and after the
customer's requirements are met.
____5. All customers should be treated professionally, which means the use of
competence or skill expected of the professional. Professionalism shows the customer
they're cared for.
A. Professionalism
B. Loyalty Rewards
C. Face-to-Face Time
D. Customer Service
E. Cherish each Customer
WHAT’S IN (LOOKING BACK TO YOUR LESSON
FILL-IN THE BLANKS
Directions: Read each statements or questions below carefully and fill in the
blanks with the correct answer.
__________________1. Involves creating, maintaining and enhancing strong relationships
with customers and other stakeholders. Increasingly, marketing is moving away from a
focus on individual transactions and towards a focus on building value-laden
relationships and marketing networks.
__________________2. Trust and loyalty go hand in hand, and it is super beneficial for all
business. It will help prevent customers from turning to competitors.
__________________3. The salesperson sells the product and encourages the customer to
call whenever he or she has any questions or problems.
__________________4. Is the development of an ongoing connection between a
company
7
and its customers. The relationship involves marketing communications, sales support,
technical assistance and customerservice. Customer relationship is a big part of
marketing.
__________________5. the benefits are reaped both by the company and the customers.
It helps customers identify more with the company. Keeping your communication lines
open and keeping in touch with the customers makes them feel like they are being
valued. It will keep customerscoming in and build brand equity for the company in the
long run.
WHAT’S NEW (BRIEF INTRODUCTION
CREATING
EXCHANGING VALUE COMMUNICATION
DELIVERING
According to Serrano, Relationship Marketing includes activities aimed at developing
and managing trusting and long-term relationships with larger customers. (Customer
profile, buying patterns and history of contacts are kept in a sales database)
Relationship marketing is a strategy designed for customer loyalty, interaction, and
long-term engagement to be fostered. Customer Relationship focuses more on longterm
customer retention than acquiring large numbers of new and potentially single-
transaction customers.
Customer Value is the relationship between benefits and the costs including money,
stress, and time to sacrifice that is necessary to get those benefits. Or simply stated
in a mathematical equation: Benefits – Cost = Customer Value.
Importance of Customer Value
1. Designing and providing superior customer value are the keys to successful business
strategy in the 21st century.
2. Value reigns supreme in today’s marketplace and marketspace.
3. Customers will not pay more than a product is worth and will reward excellence.
4. A customer-centric culture provides focus and direction for the organization,
ensuring that exceptional value will be offered to customers.
5. Designing and delivering superior customer value propels organizations to market
leadership positions in today’s highly competitive global markets –absolute advantage.
6. Providing outstanding customer value has become a mandate for management.
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Customer Relationship Marketing -will make earlier agents of change look
inadequate. The key facilitator is technology available to marketers. CRM weds the
individual customer and technology in ways that are unique. These fourth-wave
relationships, propelled by a confluence of technological advances, will themselves
change at geometric rates. (1) One-to-one marketing, (2) Database marketing, (3)
Integrated marketing, and (4) Interactivity.
9 Relationship Marketing Strategies and Tools
There are some actionable relationship marketing strategies that we hope will be
successful for you and your business from www.powerobjects.com .
1. Networking - Networking, online and off, can be a powerful relationship marketing
technique. This isn’t just for job seekers! Think about the interests that you have as a
business, and then join groups that share your affinities.
2. Cherish Each Customer - Not just in the way that every company says that they do.
Make sure that every interaction you have with your customers shows them that they are
valued.
3. Listen to Your Customers - Listen to your customers! Every business says they do,
but not all follow through or apply what they’ve heard. Even listening and responding
to compliments can be beneficial. People love knowing they’ve been heard. Even
complaints can be a blessing in disguise. People often just want someone to share their
concerns with.
4. Build a Brand Identity - A memorable brand will make it easy for customers to find you
and your product(s). Customers will gravitate toward what they find that is memorable.
5. Give Your Customers Free Information - What’s better than free? Not much. Your
customers are seeking information about your product(s). They have questions. Give
them answers! Identify the topics and interests your customers have.
6. Loyalty Rewards - Loyalty programs encourage shoppers to return to stores where they
frequently make purchases.
7. Communicate Often - Relationships are based on communication. Your customers
and users want to communicate with you, so be sure to communicate with them often.
Relationship marketing works well when you strive to be there for your customers.
8. Special Events - Holding a special event for your existing or prospective customers is a
great way to build relationships.
9. Face-To-Face Time - Like a lot of what we’ve been mentioning, it comes back to
interactions. While electronic communication is great, and often preferred, having a
face-to-face meeting can help the customer feel valued.
Customer service is the act of taking care of the customer's needs by providing and
delivering professional, helpful, high quality service and assistance before, during, and
after the customer's requirements are met. Customer service is meeting the needs and
desires of any customer. Some characteristics of good customer service include:
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Characteristics of Good Customer Service:
• Promptness: Promises for delivery of products must be on time. Delays and
cancellations of products should be avoided.
• Politeness: Politeness is almost a lost art. Saying 'hello,' 'good afternoon,' 'sir', and 'thank
you very much' are a part of good customer service. For any business, using good
manners is appropriate whether the customer makes a purchase or not.
• Professionalism: All customers should be treated professionally, which means the use of
competence or skill expected of the professional. Professionalism shows the customer
they're cared for.
• Personalization: Using the customer's name is very effective in producing loyalty.
Customers like the idea that whom they do business with knows them on a personal
level.
Source: D365, Joe (2017, June 02). 9 Relationship Marketing Strategies and Tools – PowerObjects: Microsoft Dynamics
365 Blog. Retrieved June 30, 2020, from https://www.powerobjects.com/blog/2015/07/16/9- relationship-marketing-
strategies-and-tools/
WHAT’S MORE (ACTIVITIES)
Directions: Answer the following questions below. Write your answer in yellow pad paper.
Activity 1: Is Customer Relationship Marketing differ from Relationship Marketing? Explain.
Activity 2: Can you site or illustrate businesses who use customer service strategy? How
this help the business? Explain.
WHAT I HAVE LEARNED (REMEMBER)
Customers are very important to
companies. They provide competitive advantage.
Because of customers companies can achieve High market share lead which means
high sales in terms of volume and pesos. Customers are also influencers and models for
they spread good things about your company and your services. Also, they are the
reason for the company’s existence. Finally, customers can make or break a company.
MODIFIED TRUE OR FALSE:
Directions: Write Correct if the statement regarding customer value is true and correct
but write the correct word/s if the statement is false.
__________________1. SSimply stated in a mathematical equation: Benefits – Cost
= Customer Satisfaction.
__________________2. PPyramiding, online and off, can be a powerful relationship
marketing technique. This isn’t just for job seekers! Think about the
interests that you have as a business, and then join groups that
share your affinities.
__________________3. LLoyalty Rewards - Loyalty programs encourage shoppers to
return to stores where they frequently make purchases
__________________4. CCustomer service is the act of taking care of the customer's
needs by providing and delivering professional, helpful, high quality
service and Assistance before, during, and after the customer's
requirements are met.
10
__________________5. PPromptness is using the customer's name is very effective in
producing loyalty. Customers like the idea that whom they do
business with knows them on a personal level.
Fill-in the Blanks
Directions: Read each statement below carefully and fill in the blanks with the
correct answer.
__________ 1. It is almost a lost art. Saying 'hello,' 'good afternoon,' 'sir', and 'thank you
very much' are a part of good customer service. For any business, using
good manners is appropriate whether the customer makes a purchase or
not.
__________ 2. It is the relationship between benefits and the costs including money,
stress, and time to sacrifice that is necessary to get those benefits.
__________ 3. It is the act of taking care of the customer's needs by providing and
delivering professional, helpful, high quality service and assistance before,
during, and after the customer's requirements are met. Customer service is
meeting the needs and desires of any customer.
__________ 4. It includes activities aimed at developing and managing trusting and long-
term relationships with larger customers.
__________ 5. Relationships are based on communication. Your customers and users
want to communicate with you, so be sure to communicate with them
often. Relationship marketing works well when you strive to be there for
your customers.
Customer Value Customer relationship Marketing Professionalism
Communicate often Customer Service Politeness
During the current COVID-19 pandemic, global markets are severely disrupted.
Businesses are forced to explore innovative solutions to overcome the growing negative
implications of this unprecedented crisis.
Business environment are affected, and few had close because of this pandemic
situation. Due to various quarantine measures imposed by the government. The existing
business continuity plans may not be enough to address the fast-changing variables
presented by COVID-19 pandemic.
Source: Roxas-Divinagracia, M. T. (n.d.). Responding to the potential business impacts of COVID-19
(Deals and Corporate Finance). Retrieved June 30, 2020, from
https://www.pwc.com/ph/en/advisory/dealsadvisory/responding-to-the-potential-business-impacts-of-
covid-19--deals-.html
Reflective Question. Can businesses still use concept of Customer Value despite of
this pandemic situation? Explain.
_____________________________________________________________________________________
_____________________________________________________________________________________
11
_____________________________________________________________________________________
___________________________________________________________________________________________________
PRETEST:
1. E. 2. B 3.C 4. D 5.A
LOOKING BACK TO YOUR LESSON:
(1) Relationship Marketing, (2) Prevent negative transitions, (3) Reactive (4)
customer relationship, and (5) Identification with the company
ACTIVITIES:
Activity 1: Is Customer Relationship Marketing differ from Relationship Marketing?
Explain.
Customer Relation Marketing will make earlier agents of change look inadequate.
The key facilitator is technology available to marketers. CRM weds the individual
customer and technology in ways that are unique. These fourth-wave relationships,
propelled by a confluence of technological advances, will themselves change at
geometric rates. (1) One-to-one marketing, (2) Database marketing, (3) Integrated
marketing, and (4) Interactivity while Relationship marketing is a strategy designed
for customer loyalty, interaction, and long-term engagement to be fostered. Customer
Relationship focuses more on long-term customer retention than acquiring large
numbers of new and potentially single-transaction customers. Relationship Marketing
is designed to develop strong connections with customers by providing them with
information directly suited to their needs and interests by promoting open
communication.
Activity 2: Can you site or illustrate businesses who use customer service strategy?
How this help the business? Explain.
Answer: the learners are expected to answer actual businesses who use customer
service strategy to help their business.
Rubrics for Grading the Essay:
5- If the paragraph consists of 5 or more sentences with correct and complete
Information.
4- If the paragraph consists of 3 to 4 sentences with correct information.
3- If the paragraph consists of 2 to 3 sentences with correct information.
2- If the paragraph consists of 2 sentences with correct information
1- if the paragraph consists of only one sentence with correct information.
CHECK YOUR UNDERSTANDING:
MODIFIED TRUE OR FALSE: (1) Customer value, (2) Networking, (3) Correct, (4)
Correct, and (5) Personalization.
POSTTEST
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Fill-in the Blanks (1). Politeness (2) Customer Value, (3) Customer Service, (4)
Relationship Marketing, and (5) Communicate often.
To further explore the concept learned today and if it possible to connect the internet,
you may visit the following links:
Topic: Creating Customer Valuelink: https://www.youtube.com/watch?v=9I2baWR-rqg
Armstrong, Gary (2013). Marketing: An introduction 11th, Global ed. Harlow, England:
Pearson
Attar, Asiyeh, (2019) CONTEMPORARY TYPES OF MARKETING, Retrieved from
https://blog.ubrik.com/types-of-marketing
Garrovillas, Eduardo P ( 2007), Out of the Box Marketing Principles, that work and
Make sense. Books Atbp. Publishing Corp
Go, Josiah (1996). Contemporary Marketing Strategy in the Philippine Setting, Manila:
National Bookstore
MEDINA, ROBERTO G. (2008), Principles of marketing revised edition REX Bookstore.
Microsoft Dynamics 365, (2015, July 16). RELATIONSHIP Marketing Strategies and
tools Retrieved from https://www.powerobjects.com/blog/2015/07/16/9-
relationshipmarketing-strategies-and-tools/
Serrano, Angelita C. (2019) Principles of Marketing, published by Unlimited Books
Library Services & Publishing Inc, ISBN: 978-971-9654-30-8.
Singh, Deepesh (2013, September 11). 6 Market Models of Relationship Marketing
Retrieved from https://topbullets.com/2013/09/11/six-markets-model-
relationship-marketingcrm/
Williamson, Will (2020), Traditional Vs Contemporary Marketing Strategies, Retrieved
From https://blog.jdrgroup.co.uk/digital-prosperity-blog/traditional-vs-
Contemporary
Acknowledgements
Development Team of the Module
Writers: Jupiter Q. Whiteside, MBA
Mark Vincent B. Emit, PhD
Editor: Isabel A. Gumaru, DBA
Evaluator: Ellaine Dela Cruz, DBA
Validators & Reviewers:
Remylina T. Soriano, EPS, Math
Angelita Z. Modesto, PSDS
George B. Borromeo, PSDS
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Management Team:
Maria Magdalena M. Lim, CESO V
Schools Division Superintendent- Manila
