12

Principles of
Marketing
1st Quarter (Module 2)

Relationship Marketing and Customer Value

Yvonne P. Recelestino
Module Writer

Department of Education – Republic of the Philippines Page 1

Content Standards:
The learners demonstrate an understanding of…
1. The marketing principles, goals, and traditional and contemporary
approaches to marketing
2. The value of customer relations and customer service
3. The importance of information, the market characteristics affecting
consumer behavior, and the bases of market segmentation

Performance Standards:

The learners shall be able to…

1. Plot marketing goals and approaches for product or service

2. Develop a program for customer service
3. Conduct marketing research, interpret market buying behavior on product
or service, and identify the product or service target market

Learning Competency:

 Define relationship marketing

 Explain the value of customers

Learning Objectives:

At the end of this module the students will be able to:

1. Understand the meaning and importance of relationship marketing

2. Understand the ways to build relationship between the customers and the
organization
3. Understand the importance of capturing customer value
4. Appreciate the importance of capturing customer value in achieving the goal
of the organization

To the Learners

This module will equip you a necessary content knowledge, skills, and
competencies about relationship marketing and the importance of capturing the
value of customers in achieving the goal of the organization, especially in the
business industry.

You read and understand carefully each part of the module so that you can
be able to answers various activity that will help you develop your potentials in
understanding the lesson.

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 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 into process
what you learned from the lesson.

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.

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 What I Need to Know

In this module you will be able to encounter terminologies such as

relationship marketing, customer perceived-value, customer satisfaction, customer
lifetime value etc.. You will be able to understand the importance of marketing in
achieving the goals of the organization.

There are various activities prepared by the writer/s that will help you
understand the meaning and importance of relationship marketing and the ways to
capture customer value, and how helpful it is in achieving the vision, mission,
goals and objectives of the organization. It is hope that you will learn to value the
knowledge and wisdom of this module.

What I Know

Instruction: True or False. Write T if the statement is true and F if it is false.

___________1. Producing valuable product is one way to capture customer value.

___________2. Customer lifetime value is not important in an organization.
___________3. A satisfied customer is sensitive to price increase of the product.
___________4. Basic marketing is also known as direct sales.
___________5. Customer equity is the total combined customer lifetime values of all
the company's customers
___________6. Customer satisfaction is not important in marketing.
___________7. A satisfied customer is more likely to talk about good things
regarding the product.
___________8. Partnering with other departments or company is one way to market
a product.
___________9. A satisfied customer has the possibility to be loyal for a long period of
time.

___________10. Customer perceived-value is the customer's evaluation of the

difference between all the benefits and all the costs of a marketing offer relative to
those of the competitors.

What’s In

On your previous lessons you learned about the importance of marketing, and its
function in the organization. Kindly write 3 importance of marketing in achieving
the company’s vision and mission.

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Importance of marketing

1. ___________________________________________________________________________
___________________________________________________________________________
2. ___________________________________________________________________________
___________________________________________________________________________

Also you also learned about the different approaches you can use in marketing.
Kindly list at least 5 approaches; it can be traditional or contemporary and explain
each one of them.

Marketing Approaches Explanation

Before the lesson proper, kindly write the following guide questions to be given to
you in a piece of paper. Answer them based on your stocked knowledge or even as
a knowledgeable guess. After the discussion, try to answer those questions again,
and now apply the things learned from the lesson.

1. What is the meaning and importance of relationship marketing?

2. What is a customer perceived value?
3. As an ABM student, is it important that you know this topics? Why?
4. How can you be able to apply the things learned from the lessons in your
everyday living?

What’s New

It is important to have customer value for it will secure your profit for years. Also
once your product is being trusted, then there is a possibility that the trust for the
product or brand will pass through generation. In order to achieve it you need to
ensure relationship marketing.

Relationship marketing- has the aim to build a mutually satisfying long-

term relationship with key parties in order to earn and retain
their business.

CRM (Customer Relationship Marketing)- is the values and strategies of

relationship marketing with particular emphasis on customer
relationship turned into practical application.

Customer loyalty and satisfaction

A highly satisfied customer is:

1. Less price sensitive

2. More likely to talk favorably about the product
3. More likely to refer products to others
4. Remain loyal for long

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 What Is It

5 Levels of relationship marketing

1. Basic marketing- the salesperson sells to the final customer. Also

known as direct sales.
2. Reactive marketing- sells the product and encourages the customer to
call for any comments or inquiries.
3. Accountable marketing- calls the customers to ensure whether the
product is working as per satisfaction and if there is any problem
in the product.
4. Proactive marketing- the company works continuously with its large
customers to help improve performance.

Relationship marketing is the practice of building long-term satisfying relations

with key parties (customers, suppliers and distributors), in order to retain long-
term preference and business.

Customer relationship management- is an important concept to attain the goal of

marketing which is capturing customer value.

-the overall process of building and maintaining profitable customer

relationships by delivering superior customer value and satisfaction.

Customer perceived-value- is the customer's evaluation of the difference between

all the benefits and all the costs of a marketing offer relative to those of competing
offers.

Customer satisfaction- the extent to which a product's perceived performance

matches a buyer's expectations.

Customer-managed relationships- marketing relationships in which customers,

empowered by today's new digital technologies, interact with companies and with
each other to shape their relationships with brands.

Consumer-generated marketing- brand exchanges created by consumers

themselves-both invited and uninvited- by which consumers are playing an
increasing role in shaping their own brand experiences and those of their
consumers.

Partner relationships management- working closely with partners in other

company departments and outside the company to jointly bring greater value to
customers.

Customer lifetime value- the value of the entire stream of purchases that the
customer would make over a lifetime of patronage.

Share of customer- the portion of the customer's purchasing that a company gets
in its product categories.

Customer equity- the total combined customer lifetime values of all the company's
customers.

Department of Education – Republic of the Philippines Page 6

 https://www
.google.com/
search?q=cu
stomer+valu
e&source=ln
ms&tbm=isc

As you can see all the factors are being centered to the main goal, which is the
customer value. Meaning to say, when you design a marketing strategy capturing
customer value should be first in line.

What’s More

Activity 1: Matching Type: Choose the answer from the following terms/concepts.
Write the letter of the correct answer.

A. consumer-generated marketing
B. customer lifetime value
C. customer relationship management
D. loyal customer
E. partner relationships management
F. customer satisfaction
__________1. It refers to the brand exchanges created by consumers themselves-
both invited and uninvited- by which consumers are playing an increasing role in
shaping their own brand experiences and those of their consumers.

__________2. It refers to the way of working closely with partners in other

company departments and outside the company to jointly bring greater value to
customers.

__________3. It refers to the value of the entire stream of purchases that the
customer would make over a lifetime of patronage.

__________4. It refers to the extent to which a product's perceived performance

matches a buyer's expectations.

__________5. It refers to the overall process of building and maintaining profitable

customer relationships by delivering superior customer value and satisfaction.

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 What I have learned.

Activity 2.1

Instruction: Write an example situation for every level of relationship

marketing given below.

Levels of Relationship Marketing Example

Basic Marketing

Reactive Marketing

Accountable Marketing

What I Can Do

Activity 3.1

Instruction: Name 1 product/brand that the popularity already runs through

generations, or able to survive being in the industry for years. And state their
marketing strategy that they used for them to made this far. Write your answer on
a separate sheet of paper.

Example: Safeguard soap- they produced an anti bacterial soap which is in need
especially if you are into hygiene and health. Also they produced many variants,
sizes and scents that will suit the preference of the market. They also packaged it
based on the convenience and for it to be affordable, because the lower the cost for
packaging, the lower the price will be.

Name of the Product/Brand Explanation

Assessment

Instruction: Read and understand the statement below and choose the
letter of the correct answer.

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 1. Which of the following is NOT a characteristic of a satisfied customer?

A. talk favorably about the product

B. remain loyal for long

C. price increase sensitive

D. refer products to other

2. Which of the following refers to the way of selling of the product and
encourages the customer to call for any comments or inquiries?

A. basic C. accountable

B. reactive D. partnership

3. Which of the following levels of relationship marketing refers to the way

of selling directly to the final customer?

A. basic C. reactive

B. partnership D. accountable

4. Which of the following refers to the continuous working of the company

with its large customers to improve its performance?

A. partnership C. satisfaction

B. loyalty D. accountable

5. Which of the following is NOT a characteristic of a satisfied customer?

A. promote the products to other

B. purchase for a short-time only

C. less price sensitive

D. talk good things about the product

6. Which of the following refers to the total combined customer lifetime

values of all the company’s customers?

A. share of customer C. customer satisfaction

B. relationship management D. customer equity

7. Which of the following refers to the extent to which a product’s perceived

performance matches a buyer’s expectation?

A. consumer-generated marketing

Department of Education – Republic of the Philippines Page 9

 B. customer satisfaction

C. partner relationships management

D. customer lifetime value

8. Which of the following refers to the value of the entire stream of purchases that
the customer would make over a lifetime of patronage?

A. customer lifetime value C. customer equity

B. share of customer D. consumer-generated marketing

9. Which of the following refers to the customer’s evaluation of the difference

between all the benefits and all the cost of a marketing offer relative to those of
competing offers?

A. customer perceived value

B. customer satisfaction

C. customer-managed relationship

D. share of customer

10. Which of the following refers to the portion of the customer’s purchasing
that a company gets in its product categories?

A. share of customer C. customer satisfaction

B. customer equity D. customer lifetime value

Additional Activity

Instruction: List 2 products/brands that you value or purchase every time

there is a need for it. And then explain why you value this product/brand.

Name of the Product/Brand Explanation

1

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