Principles of Marketing

Quarter 1 – Module 4:
Relationship Development
Strategies
Personal Development
Alternative Delivery Mode
Quarter 1 – Module 1: Relationship Development Strategies
First Edition, 2020

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Principles of Marketing
Quarter 1 – Module 3:
Relationship Development
Strategies
Introductory Message
For the facilitator:

Welcome to the Principles of Marketing Alternative Delivery Mode (ADM)

Module on Relationship Development Strategies !

This module was collaboratively designed, developed and reviewed by educators

both from public and private institutions to assist you, the teacher or facilitator in
helping the learners meet the standards set by the K to 12 Curriculum while
overcoming their personal, social, and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and independent
learning activities at their own pace and time. Furthermore, this also aims to help
learners acquire the needed 21st century skills while taking into consideration
their needs and circumstances.

In addition to the material in the main text, you will also see this box in the body of
the module:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to
manage their own learning. Furthermore, you are expected to encourage and assist
the learners as they do the tasks included in the module.

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For the learner:

Welcome to the Principles of Marketing Alternative Delivery Mode (ADM) Module on

Relationship Development Strategies!

Relationship development strategy creates strong customer bonds that lead to

ongoing business with this customer, as well as free word of mouth promotion and
lead generation. The ultimate goal of relationship marketing is to get customers,
keep customers, and grow customers.

This module was designed to provide you with fun and meaningful opportunities
for guided and independent learning at your own pace and time. You will be
enabled to process the contents of the learning resource while being an active
learner.

This module has the following parts and corresponding icons:

What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in
the module.

What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.

What’s In This is a brief drill or review to help you link

the current lesson with the previous one.

What’s New In this portion, the new lesson will be

introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.

What is It This section provides a brief discussion of

the lesson. This aims to help you discover
and understand new concepts and skills.

What’s More This comprises activities for independent

practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.

What I Have Learned This includes questions or blank

sentence/paragraph to be filled in to
process what you learned from the lesson.

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 What I Can Do This section provides an activity which will
help you transfer your new knowledge or
skill into real life situations or concerns.

Assessment This is a task which aims to evaluate your

level of mastery in achieving the learning
competency.

Additional Activities In this portion, another activity will be given

to you to enrich your knowledge or skill of
the lesson learned. This also tends
retention of learned concepts.

Answer Key This contains answers to all activities in the

module.

At the end of this module you will also find:

References This is a list of all sources used in

developing this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of
the module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your
answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.

We hope that through this material, you will experience meaningful learning
and gain deep understanding of the relevant competencies. You can do it!

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 What I Need to Know

This module was designed and written with you in mind. It is here to help you
develop the relationship marketing. The scope of this module permits it to be used
in many different learning situations. The language used recognizes the diverse
vocabulary level of students. The lessons are arranged to follow the standard
sequence of the course. But the order in which you read them can be changed to
correspond with the textbook you are now using.

The module is all about Relationship Development Strategies.

After going through this module, you are expected to:

1. Identify and describe relationship development strategies;
2. Identify and describe the different stages in the development of customer
relationship;
3. Illustrate the relationship development stages of a Philippine business
enterprise.

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 What I Know

Choose the letter of the best answer. Write the chosen letter on a separate sheet of
paper.

1. The ratio between the customer’s perceived benefits and the resources to
obtain those benefits.
a. Customer Satisfaction
b. Customer value
c. Customer Retention
d. Customer marketing

2. The evaluation of the product’s performance in relation to the expectations

set by the customer.
a. Customer Satisfaction
b. Customer value
c. Customer Retention
d. Customer marketing

3. An effort made by companies in order to keep customers happy and loyal

a. Customer retention
b. Customer value
c. Customer satisfaction
d. Customer marketing

4. The strategy that concentrates on keeping and improving relationship with

customers.
a. Customer relation
b. Relationship marketing
c. Customer marketing
d. Customer value

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 Lesson
Relationship Development
1 Strategies
Relationship development strategies is a plan of businesses and organizations for
acquiring new customers to thrive and retain customers. The company must be
able to satisfy the customer by meeting the expectations from a product or service.

What’s In

In your previous module, it has pointed out the importance of satisfying customers-
doing so will encourage retention, which in turn will provide various benefits to the
company. Companies need to exert effort in order to satisfy the needs of their
customers and keep them buying. Three factors affect the rationale of
organization’s strategies in keeping their customers: core service provision,
switching barrier, and relationship bonds which will be discuss in the next page

Notes to the Teacher

Tell the students that if a customer sees the value of a

product and is satisfied with the benefits obtained from
using it, a company has a higher chance of keeping that
customer loyal. Example is the Apple Co. they are providing
the security features to all the users or customers.

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 What’s New

Relationship Development Strategies

Relationship Development strategies is all about planning on how to create and
maintain to the engagement of possible customers or other strategies that
increases the chances of returning customer to the business in the future. Loyal
customers are especially important, as they are great sources for referrals and
feedback and are also likely to make repeat purchases.
Switching barrier can also affect the loyalty of customers. It is the economic and
psychological difficulty perceived by the customers if they switch from one brand to
another.

Relationship Bonds
Relationship bonds are retention strategies that keep the customer buying the
same brand. This strategy has four levels.

At this level, the customer Example: Customers who

patronizes a brand because of owns a loyalty card to
Financial Bond the financial incentives that he collect points that can be
or she receive from the converted into rewards.
company.

Example: The apple user

It focus on the social and inter- who doesn’t want to switch
personal relationship between to other brand, because of
Social Bond the company and the customer. familiarity and personal
Figure 4.1 Four levels of relationship Bonds confidence.

Business that offers a customers Example: Automobile

Relationship
Customization tailored services that fit their Development Stages
company, who offered a
Bond individual’s needs. customized service exclusive
Business deal with customers on a daily basis.
to their customer.
A company’s relationship with various
customers differs depending on how well the
staff knows the Business to Business customer, how long the
Example: Automobile
customer has been
Structural transactions that customized in shopping at the store, and
company, who offered a
how knowledgeable
Bond order to deliver services that fit the customer is of the
customized service exclusive
company’s the need of their client or products,
to theiramong others.
customer.
business

Partners
 Enhancing

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 Friends
 Retaining
Acquaintances
 Satisfying
Strangers
 Acquiring

Figure 4.2 Evolution of customer relationships and the marketing goal

at each stage

A company’s relationship with its customers starts as strangers. In this stage, the
customers are not familiar with the company’s products. Because the company is
introducing itself to its customers, its marketing goals is to acquire and earn the
trust of the customer. Once the customers understand what the company can do
for them, they move to the next stage: acquaintances. Here the customers are
trying out the products of the company and investing a little by buying a product or
two, the relationship is still fragile at this point, the company must avoid making
mistakes and satisfy the customer. Once the company satisfied the customers, it
will develop loyalty. In this stage, the company and the customers become
friends. The business goal is to retain the customers and keep them close through
different activities, such as offering sales promotions, offering freebies and price
discount. The last stage is when companies and customers as already partners,
they are partners because the company provides value to the customers through
loyalty programs, the customers also provide value to the company by
recommending it to friends, talking about it to social media and keeping it in their
top of mind choice.

What’s It

 Relationships development strategies are the plans to builds upon

customer experience management and puts improving customer
interactions to foster brand loyalty at the core of marketing activities
and efforts, including offering excellent customer service and getting

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 to know individual customers to anticipate their needs, and offering
loyalty program perks and rewards for repeat customers.
 There is four stages in developing the relationship to the customer
which summarized in the below table

Evolution Strangers Acquaintances Friends Partners

stage
Marketing Acquiring Satisfying Retaining Enhancing
Goal
Marketing Advertising, Superior Product and Rewards/points/
Activities sales, customers service incentive
promotion service and consistency, programs,
product quality special offers, exclusive
sales privileges
promotion

What’s More

Choose the letter of the best answer. Write the chosen letter on a separate sheet of
paper.

1. Which of The following is NOT belong to the relationship development

stages.
a. Customization bond c. Customer satisfaction
b. Social Bond d. Financial Bond

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2. The evaluation of the product’s performance in relation to the
expectations set by the customer.
a. Customer satisfaction c. Customer value
b. Customer retention d. Relation marketing

3. This is where the customer patronizes a brand because of the

financial incentives.
a. Social bond c. Structural bond
b. Financial bond d. customer value

4. The stage where the customers are trying out the products of the
company and trying a product.
a. Friends c. Partners
b. Acquaintance d. Customer value

5. The stage where the customers are not yet familiar with the company’s
product.
a. Friends c. Partners
b. Acquaintance d. Customer value

What I Have
Learned

Write your answer on the space provided.

1. How are the concepts of customer value, customer satisfaction, and

customer retention related to each other?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
2. What are the different stages of evolution of customer relationships?
Explain the marketing goal for each stage?

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 ___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

3. Why should companies value customers as friends and partners? How can
the company benefit from the customers, and vice versa?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

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 What I Can Do

Apply it in real life

You are hired by a milk tea company to take care of its customer of its customer
relationship. As the customer relationship manager, you have been tasked to
develop a loyalty program that will encourage its customers to buy more products
and more frequently by offering rewards. Set specific purchase requirements with
specific rewards for the customers. Make sure that the rewards you will offer will
satisfy the consumers and will actually encourage them to buy more, and
frequently. Develop a sample of your loyalty card and make a presentation to
discuss your rewards program to the marketing director (Teacher). Make sure that
your rewards program is measurable and viable.

See the below rubrics for the Loyalty card output presentation.

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 Assessment

FILL IN THE BLANKS. Directions: Read each statement below carefully and
fill in the blank(s) with the correct answer. Answer on a separate sheet of
paper.

_________________ 1. The bond that focuses on the social and interpersonal

relationship between the company and the customer.
_________________2. The bond that that determine the financial, social and
customization bonds are all combined in order to deliver
services.
_________________3. The retention strategies that keep the customer buying
the same brand.
_________________4. The stage where the customers are trying out the
products of the company.
_________________ 5. Stage where the customers are already loyal to the
brand.

Additional Activities

Enriching your knowledge and skills. Write your answer on a separate sheet of
paper.

1. Do you own a loyalty or rewards cards? From which company? How

often do you use it? Do you think the rewards that you get are enough
to keep you loyal to the company?

2. What are the different stages of evolution of customer relationships?

Explain the marketing goal for each stage?

3.

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Answer Key

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References

Baquillas, J.C. 2017., Principles of Marketing. Makati city, Diwa Learning

Systems Inc. ISBN 978-971-46-1119-1

Delayco, M.L.C 2016., Learning to succeed in Business with Marketing.

Quezon city, The Phoenix Publishing House Inc. ISBN 978-971-06-
4008-9

Kotler, K. Armstrong, G., Principles of Marketing Seventeenth Edition, 2018.

United Kingdom., Pearson Education Limited.

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