12

Principles of
Marketing
Quarter 3 – Module 2:
Relationship Marketing and
Customer Service
Principles of Marketing – Grade 12
Quarter 3 – Module 1: Marketing Principles and Strategies

First Edition, 2020

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Layout Artist:
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Renato Pacpakin Antonio Apat

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 5

Principles of
Marketing
Quarter 3rd – Module 2:
Relationship Marketing and
Customer Value
Introductory Message
For the facilitator:
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 at home.
Furthermore, you are expected to encourage and assist the learners as
they do the tasks included in the module.

For the learner:

As a learner, you must learn to become responsible of your own
learning. Take time to read, understand, and perform the different
activities in the module.
As you go through the different activities of this module be
reminded of the following:
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 Let Us Try before moving on to the other
activities.
3. Read the instructions 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 done.
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!

ii
 Let Us Learn
Let us join in the journey of understanding the basic principles
of Marketing as to its goals, and traditional and contemporary approaches
in marketing. The topics covered will give you an opening eye on the
importance of Marketing in the world of business and in our daily lives.

The pre-requisite of this subject is Organization and Management and

Applied Economics to align and connect its relationship in understanding
the principles of marketing, traditional and contemporary marketing
approaches.

At the end of the module, the learners are expected to: ( Based on
MELCS )
a. define “relationship marketing; and
ABM_PM11-Ic-d-5

b. explain the value of customers.

ABM_PM11-Ic-d-6

Let Us Try
Fill in the Blank: Write the correct answer in the space provided and
below are your options to answer the given items:
Set A Set B
Accountable Marketing Build brand identity
Basic Marketing Communicate often
Customer Value Face to face time
Partnership Marketing Free Information
Proactive Marketing Listen to your customers
Reactive Marketing Loyalty Rewards
Relationship Marketing Networking
Word of Mouth Special events

Set A
_______ 1. The salesperson will call the customers and solicit feedback if the
product bought meets customer’s expectation and it serves as an
avenue for product improvement.
_______ 2. The salesperson will just sell the product without customer
follow-up.
_______ 3. The company works continuously together with customers for
better delivery of customer value.
_______ 4. The salesperson makes encourage the customers to call if there
are questions to raise related to the product purchased.
_______ 5. The salesperson will call the customers and solicit feedback if the
product bought meets customer’s expectation and it serves as an
avenue for product improvement.
_______ 6. It is concentrated on developing programs related to customer
loyalty and long-term relationship with the customers and other
stakeholders.
_______ 7. The relationship between benefits and the costs, including money,
stress, and time to sacrifice that is necessary to get those
benefits.
_______ 8. The living testimony coming from the company’s satisfied
customer.
Set B
_______ 9. A direct personal interaction between the buyer and seller.
_______10. The company needs to organize activities to strengthen the
customers and other stakeholders (e.g. Stakeholders Night)
________11. The stronger the retention of brand in the mind of the market,
the higher advantage against company’s competitors.
_______12. It is part of the organization to create allies for better strong
connections in the business environment.
_______13. The company and the salesperson need to open for
communication for easy contacts between the seller and buyer.
_______14. Almost all the malls nationwide are applying a “Suki” cards in a
form of points.
_______15. The best salesman is somebody who has heart and ears to attend
the customers concerns.
 \Let Us Study
In the previous module you were able to know the basic concept, goals
and approaches in marketing. The next lesson to know the relationship
marketing and explain the value of customer doing business.
The most challenging in part of the organization is to sustain the market
loyalty to the product or service offered to them. Considering the
uncontrollable changing mode and preferences of the market will think you
million folds of ideas about creativity in innovating possible strategies in the
4Ps of marketing (Product, Price, Promotion and Place).
For the organization to sustain in the dynamic pressures in the
marketplace, marketers should plan ahead to offer the best for their
customers, and it is evident now that customers does not only look for the
product that they wanted to buy but rather on the add-on services offered by
the organization.
Whatever changing preferences it is expected that marketers should
take the lead to develop marketing strategies that will enhance their customer
service because the feeder of the business are customers without them the
business is nothing.
Thus, organizations should embrace of the possible customer service
management program to let the market feel that they are part of the
company’s business by treating them as a partner. By doing it, relationship
marketing should take it as one of the organization’s top priorities.

Relationship Marketing Defined

Relationship Marketing is part of customer relation management (CRM)

which concentrated on developing programs related to customer loyalty and
long-term relationship with the customers and other stakeholders. It is
directed to create strong customer connections on the brand of product
offered by the company which leads to word-of-mouth or personal testimony
from the satisfied customers.
Cambridge dictionary also defined relationship marketing as the way
the business and customers feel and behave towards each other over in a long
period of time. In effect, it results to encourage trust leads to customer
relationship and offering range of products under the same brand which
starts to create customer value from customer relationship.
In addition, Zvi Band defined relationship marketing as practice of
building and cultivating authentic relationships with key contacts to leverage
the strength of your network for business success. Relationship marketing is
about prioritizing whom we already have a connection with, rather than solely
looking at “new” leads.
There are plenty of definitions, but the heart of the relationship
marketing is building a long term-relationship with the customers and their
primary goal is to let their customers be part of the business not as customer
only but as business partners.

https://searchcustomerexperience.techtarget.com/definition/relationship-
marketing
 An effective relationship marketing requires an array of intersecting
strategies and technologies to nurture long-term relationship with the current
and future market.

Five ( 5 ) levels of Relationship Marketing

There are Five (5) levels of relationship marketing that are present in
in the dealing the customers after the sales. These are enumerated and
discussed below.
Basic Marketing. The sales associate only sells the product without
follow up after sales.
Reactive Marketing. The sales associate sells the product and
encourage the customers to call if there are queries related to the product
bought.
Proactive Marketing. The sales associate or any company
representatives call the customers from time to time for possible updates,
product assistance, etc.
Accountable Marketing. The sales associates will call the customer after
sales and check the customer if the product bought meets his/her
expectations. If not, they solicit feedbacks or suggestions for improvements
for the avenue of product or service improvements.
Partnership Marketing. The rest of the company’s team works
unceasingly to give customer satisfaction by giving continuous service to the
customers and potential leads to provide excellent customer value.

Characteristics of Relationship Marketing:

1. It focuses on the long-term rather than short-term.
2. It relies more on the listening and learning than talking.
3. It focuses on partners and customers rather than on the company’s
product.
4. It relies on the cross-functional teams rather than on departmental-
level work.
5. It puts more emphasis on customer retention and growth than on
Customer acquisition.
Benefits in Developing and Implementing Customer Relationship
Customer Retention is the best strategy for a long-term and continuous
connection with the existing customers and leading to more leads. Below are
the benefits in developing and implementing customer relationship in an
organization:
1. Repeat Business. A satisfied, and valued customer will easily be
attracted to switch into another brand. So, a company should take
into consideration in developing strong customer relationship
programs.
2. Reduced marketing cost. If the customers are satisfied the lesser the
cost to develop aggressive marketing strategies since they already
have a strong customer retention program.
3. Word-of-mouth marketing. The most credible promoter is the
customer who has the experience in using the product.
4. Increasing customer base. It is guaranteed that if the customers are
satisfied, they are likely the walking promoter of the product. This
will increase referrals and the employment of the use of social media
will multiply its effect.
5. Product market expansion. If the demand arises, the company
should be ready beyond his logistic boundaries.
6. Prevents negative transition. If the trust and loyalty has been
established, it prevents the customer to switch into another brand.
7. Identification with the company. If the company has a strong image
this will build brand equity that is beneficial to both company and
customer.
8. Delivery and meeting expectations. Knowing the market’s needs,
wants and expectation will eradicate or eliminate delivery cost.
9. Understanding customer characteristics. The process of segmenting
the market will help the company to offer products according to the
characteristics of the market grouped.
10. Minimization of customer price sensitivity. If the customers have full
trust and loyalty to the product, the lesser the comparison to
another brand since they already have a strong brand conviction.
Relationship Marketing Strategies and Tools
The success of the organization’s relationship marketing strategies
depends on the spirit of oneness among the team involve in the delivery of
strategies and tools. The recommended strategies from www.educba.com are
as follows: SMS Marketing; Email marketing; Consumer campaigns &
Referrals; Web site, online chats, toll free numbers; Invest in technology: ERP
& CRM solutions; Sending Greetings on festivals and New Year; Include social
media for relationship marketing; and Building Customer Relationship
through loyalty points.
In addition, the www.powerobjects.com also enumerated the successful
strategies and tools for relationship marketing, namely: Networking; Cherish
each customer; Listen to your customers; Build a brand identity, Give your
customers free information; Loyalty Rewards; Communicate often; Special
Events; and Face-to-Face time.

Customer Value
Marketing creates, communicates, and delivers value to customers.
According to Serrano (2019) that relationship marketing includes craft
activities aiming to develop and manage trust among customers in a long-
term relationship between the company and customers.

There are different means that companies can track the customer
profile, buying pattern ad history of contacts are stored in a database as a
reference for scouting potential leads of future buyer of the product.

The Customer Value is the relationship between benefits and costs,

including money, stress, and time to sacrifice that is necessary to get those
benefits. This can be represented in a mathematical equation as Benefits -
Cost = Customer Value.
Importance of Customer Value
Customer value is one of the vital focus on the business, indicated below
are some of the importance of customer value. The following are:

1. The customer value is dominant in today’s marketplace.

2. It is a mandate in the management to provide outstanding customer
value.
3. Providing adequate customer value is an ingredient to competitive
advantage.
4. The market is smart, and they patronize companies that deliver maximum
customer value.
5. It is crucial in managing customer value in an information-based
economy.
6. The paradigm shift from balance of power from companies to value-
seeking customers.
7. The trend of 21st century business strategy is to design and provide
superior to their customers.
8. Customers are becoming more oriented in customer value rather than the
product purchase.
9. An organization that is customer-centered culture is focused and directed
towards the delivery of exceptional value to their customers.
10. If the thrust of the organization is to deliver superior customer value, the
market leadership position is the highly competitive in the global market.
11. Customers are valued seekers, and they look for companies that create
maximum delivery of customer value.
 Let Us Practice
Fill in the chart according to the five (5) levels of customer
relationship. Make your own definition in an operational manner.

Example: Transaction: Gaisano offer a product to middle average

income earner with a wage rate from
Php295.00 to Php396.00.

Levels
of
Customer
Operational Definition
Relationship

Basic

Reactive

Accountable

Proactive

Partnership
 /Let Us Practice More
Venn Diagram: Analyze and compare the customer relationship
and customer value. Write your answer in a Venn diagram form. Below is
the rubric for scoring purposes.
Venn Diagram Rubric
Concepts being compared in the Venn Diagram:
Customer Relationship and Customer Value

Strong Grasp Progressing Not in Evidence

5 3 1
Text support All statements are Most statements Few or none of
of supported by the are supported by the statements
comparison text. the text. are supported by
statements the text.
Placement of All statements Most statements Few statements
statements noting similarities are placed in the are placed in the
within the are placed in the correct circle, but correct circle.
Venn center circle and student mixed up
Diagram all statements that a few statements.
note differences
are placed in the
correct outer
circle.
Number of Student is able to Student in able to Student makes
quality make five or more make 3-4 two or fewer
statements comparison comparison comparison
statements in statements in each statements in
each circle. circle. each circle.
https://www.pdffiller.com/jsfillerdesk14/?requestHash=338820d1b6a303ada62f7582fa23ef2f0eac6b4d565ec2c02
af2a9ccafd3b8f2&projectId=661505790#68e0d4a1009c45fac3349fcda615981e
 Let Us Remember
JUMBLED LETTERS: Analyze the letters of each number item,
write the correct word/s in the space provided.

JUMBLED CLUE ANSWER

LETTERS
USOMRECT Benefit – Cost =_______________
AEVUL
ELATPSIIORNH Long-term and directed to create strong
RNAGMTKIE
customer connections.
SOMUECRT The expected performance upon using the
EXPECTATIONS
product.
VRPATOEIC The salesperson will use telemarketing and
with product improvement suggestions and
new uses.
TVCEEAIR The salesperson will assure the customer to
call 24/7 if customers have concerns about
the product purchase.
BLCEUAAONTC The salesperson will solicit feedbacks from
the customers as avenue for improvement.
ACBIS The salesperson will sell the product without
follow-up after sales.
RREANPHPSIT The company and team will work together for
continuous improvement of superior delivery
of customer value.

Let Us Assess
MULTIPLE CHOICE: Choose the correct letter answer, write the
letter in the space provided.

_______ 1. The salesperson makes encourage the customers to call if there

are questions to raise related to the product purchased.
a. Accountable Marketing c. Partnership Marketing
b. Basic Marketing d. Proactive Marketing
e. Reactive Marketing
_______ 2. The salesperson will call the customers and solicit feedback if the
product bought meets customer’s expectation and it serves as an
avenue for product improvement.
a. Accountable Marketing c. Partnership Marketing
b. Basic Marketing d. Proactive Marketing
e. Reactive Marketing
_______ 3. The best salesman is somebody who has heart and ears to attend
the customers concerns.
a. Listen to your customers c. Networking
b. Loyalty Rewards d. Special events
e. Word-of-Mouth
_______ 4. The company works continuously together with customers for
better delivery of customer value.
a. Accountable Marketing c. Partnership Marketing
b. Basic Marketing d. Proactive Marketing
e. Reactive Marketing
_______ 5. The salesperson will just sell the product without customer
follow-up.
a. Accountable Marketing c. Partnership Marketing
b. Basic Marketing d. Proactive Marketing
e. Reactive Marketing

_______ 6. The salesperson will call the customers and solicit feedback if the
product bought meets customer’s expectation and it serves as an
avenue for product improvement.
a. Accountable Marketing c. Partnership Marketing
b. Basic Marketing d. Proactive Marketing
e. Reactive Marketing
_______7. The company needs to organize activities to strengthen the
customers and other stakeholders (e.g. Stakeholders Night)
a. Listen to your customers c. Networking
b. Loyalty Rewards d. Special events
e. Word-of-Mouth
________ 8. The stronger the retention of brand in the mind of the market,
the higher advantage against company’s competitors.
a. Build brand identity c. Face-to-Face
b. Communicate often d. Free Information
e. Word-of-Mouth
_______ 9. It is concentrated on developing programs related to customer
loyalty and long-term relationship with the customers and other
stakeholders.
a. Customer Value c. Relationship Marketing
b. Customer Relationship Mktg. d. Special events
e. Testimony
_______10. Almost all the malls nationwide are applying a “Suki” cards in a
form of points.
a. Listen to your customers c. Networking
b. Loyalty Rewards d. Special events
e. Word-of-Mouth
_______11. A direct personal interaction between the buyer and seller.
a. Build brand identity c. Face-to-Face
b. Communicate often d. Free Information
e. Word-of-Mouth
_______12. The living testimony coming from the company’s satisfied
customer.
a. Customer Value c. Relationship Marketing
b. Customer Relationship Mktg. d. Showmanship
e. Word-of-Mouth
_______13. The company and the salesperson need to open for
communication for easy contacts between the seller and buyer.
a. Build brand identity c. Face-to-Face
b. Communicate often d. Free Information
e. Word-of-Mouth
_______14. It is part of the organization to create allies for better strong
connections in the business environment.
a. Listen to your customers c. Networking
b. Loyalty Rewards d. Special events
e. Word-of-Mouth
_______15. The relationship between benefits and the costs, including
money, stress, and time to sacrifice that is necessary to get those
benefits.
a. Customer Value c. Relationship Marketing
b. Customer Relationship Mktg. d. Testimony
e. Word-of-Mouth
 Let Us Enhance
Ready carefully the questions, try to associate your answers in a real-
life situation/experience. Answer it briefly and be guided on the
rubric indicated below.

Rubric

Criteria 5 3 1 Score
Clarity The learner has able The learner has able The learner has no
to present the topic to present the topic clarity since it does
with strong clarity of with moderate not able to present
the discussion on clarity since some of the topic and totally
the given topic. the discussions does the discussion does
not closely match to not match on the
the given topic. given topic.
Justification The learner has The learner has The learner has no
strong justification moderate justification by not
by giving concrete justification by giving example/s
example/s to giving example/s that connects to
connect on the given that connect on the the given topic.
topic. given topic.
Realization The learner has The learner has The learner has
strong realization moderate realization poor realization by
through connecting through connecting not giving a
to real life situation. to real life situation connection to a
in a half-baked real-life situation
discussion.

1. Based on your actual experiences while doing a window shopping at any

mall in Davao City, identify one (1) mall that you would like to discuss
on their strongest strategy in relationship marketing programs.

2. Among the malls in Davao City, identify one (1) mall that needs to
improve their relationship marketing programs.
 Let Us Reflect

The final note that will help you reflect on the given topic is briefly
present below.

Are you in or out? question that need to be reflected by all businessmen

in developing their relationship marketing programs. Things that need to be
tailored to the needs and wants of the target market and their perceived value
as customers.

Whatever curves or status of business, organization should always put

the priority of understanding the importance of customer relationship and
customer value all the time. Considering the market right now are customer
value oriented which does not limit only of thinking buying the product, but
the extended services provided by the company and its customer retention
program that allows the feeling of partnership between the company and
customer.

It involves cost, time, and effort in the part of the organization

implementing different strategies and tools just to sustain the dynamism of
building competitive advantage in the marketplace. Nevertheless, the ending
point of the challenges will help flank and maintain their status in the world
of business.
 Answer Key

customer a 15.
15. Listen to your c 14.
14. Loyalty rewards b 13.
often Partnership 8. e 12.
13. Communicate c 11.
Basic 7.
12. Networking b 10.
Accountable 6.
Identity c 9.
11. Build brand Reactive 5.
a 8.
10. Special Events Proactive 4.
d 7.
9. Face to face Expectations a 6.
8. Word of mouth 3. Customer b 5.
7. Customer Value Marketing c 4.
6. Relationship Mktg. 2. Relationship a 3.
5. Accountable Mktg. 1. Customer Value d 2.
4. Reactive Mktg. e 1.
3. Partnership Mktg. Answer
2. Basic Mktg. Answer
1. Proactive Mktg.
Set A

Answer

References

Ates, Luviminda, et. Al. (2016). Worktext of Principles of Marketing. Holy

Cross of Davao College, Inc., Sta. Ana Avenue, Davao City.
Kotler, Philip and Armstrong, Gary (2012). Principles of Marketing. Pearson
Education, Inc., publishing as Prentice Hall, One Lake Street, Upper
Saddle River, New Jersey 07458.
Serrano, Angelita C. (2019). Principles of Marketing, published by Unlimited
Books Library Services & Publishing Inc. ISBN: 978-971-9654-30-8.
Vibal Group Inc., So, Real and Torres Oscar, Principles of Marketing (2016).
Vibal Group Inc. , 1253 Gregorio Araneta Avenue, Quezon City .
Online
https://www.deped.gov.ph/wp-content/uploads/2019/01/ABM_Principles-
of-Marketing-CG.pdf
https://www.google.com/search?q=goals+of+marketing&oq=goals+of+marke
ting&aqs=chrome..69i57j0i20i263j0l2j0i20i263j0l5.5486j0j7&sourceid=
chrome&ie=UTF-8
https://searchcustomerexperience.techtarget.com/definition/relationship-
marketing

https://www.pdffiller.com/jsfillerdesk14/?requestHash=338820d1b6a303a
da62f7582fa23ef2f0eac6b4d565ec2c02af2a9ccafd3b8f2&projectId=661
505790#68e0d4a1009c45fac3349fcda615981e
https://dictionary.cambridge.org/us/dictionary/english/customer-
relationship
https://powerobjects.com/dynamics-365-for-marketing/9-relationship-
marketing-strategies-and-tools/
https://www.educba.com/what-is-relationship-marketing-its-strategies/

For inquiries or feedback, please write or call:

Department of Education – Region XI

F. Torres St., Davao City

Telefax:

Email Address: lrms.regionxi@deped.gov.ph