Relationship Marketing

Pre-test
(on your own words)

• Activity 1: Use in a Sentence

•Directions: Look for the meaning of the following words and use them in a sentence. Write it in your notebook.
1. Relationship marketing
2. Basic marketing
3. Reactive marketing
4. Accountable marketing
5. Proactive marketing
6. Partnership marketing
7. Word-of-mouth marketing
8. Repeat business
9. Meeting expectations

10. Product market expansion

Relationship marketing

•It is a long-term customer-centric strategy to build customer loyalty, satisfaction and retention rather than single-sale transactions. It
recognizes the lifelong value of customer relationships and creates strong, even emotional, customer connections to a brand that can lead
to repeatable products and services acquisition while being cost-effective. With the advancement of technology relationship marketing
opens more collaborative and social channels to promote open and easy two-way communication between customers and the business.  
•Forbes defined it as a strategy designed to foster customer loyalty, interaction and long-term engagement. It is designed to develop strong
connections with customers by providing them with information directly suited to their needs and interests and by promoting open
communication.
•According to Serrano, it includes activities aimed at developing and managing trusting and long-term relationships with larger customers.
The customer profiles, buying patterns and history contacts for reference and future transaction activities are kept in the sales database.
Based on those activities, tailored information that suits the needs and interests are directly provided to customers and develop strong
connections. 
•The following are the five levels of relationship marketing. Each level represents different stages from Basic which is the simplest form
that serves as the first step to the partnership which is the most advanced stage.
 
The 5 Levels of Relationship Marketing:

1. Basic marketing: this involves acquiring a customer and successfully guiding them through a sale.
2. Reactive marketing:  when a company receives feedback from a customer after a sale.
3. Accountable marketing:  this occurs when a business reaches out to a customer for suggestions and ideas to
improve their experience with the business.
4. Proactive marketing: this is where businesses actively work to improving their products and services to
provide the best possible experience for their customers.
5. Partnership marketing: this involves collaboration with other businesses to improve customer experience
and satisfaction.
Characteristics of Relationship Marketing

1. It focuses on the long-term customer relationship.

2. It focuses on customer benefit and satisfaction rather than the company’s products.
3. It emphasizes customer retention and growth rather than customer acquisition.
4. It depends more on cross-functional teams rather than departmental-level work.
5. It depends more on listening and learning than on talking.

To build customer loyalty, a good marketer puts its customers at the center of all campaigns and strategies and
provides the best product, service, and experience possible.
Relationship Marketing influences in Marketing Mix

•1. Product: More products begin to customize to customers’ preferences thus new products are developed and
designed supportively with suppliers and distributors.
•2. Price: There is more negotiation in business-to-business marketing because products are often designed for
individual customers. The businesses set the price based on the relationship with the customer and the bundle of
features designed and services requested by the customer.
•3. Place: It reduces the role of middlemen and favors more direct marketing to customers. There are more
alternatives to choose on ways or how the customer wants to order, pay, receive, install or even repair the product.
•4. Promotion: Delivered products and services as promised to the image described by customers due to more
integrated marketing communications. A more personal or individual communications, and dialogue with
customers. It sets up extranets with large customers to simplify the exchange of information, joint planning,
ordering and payments.
•Benefits of Relationship Marketing
•In the business world, retaining customers is more cost-efficient by at least eight times compared to acquiring
new ones. Thus, relationship marketing capitalizes is valuable to the company in different ways such as:
•A. Understanding customer characteristics: A valuable feedback from customers helps businesses understand
their needs and expectations. With this, the company can segregate its customers based on groups or
characteristics like purchasing power, frequency, and volume of sale transactions.
•B. Delivery and meeting expectations: Product creation will be easier for businesses if they know the features
and specifications of the product their customer needs and wants thus reducing wastage due to trial and error
methods.
•C. Repeat Business: Good attitude and relationship with the customers will make them feel that they do not
need to switch to other sellers.
•D. Prevents negative transition: Trust and loyalty are beneficial for all businesses to prevent customers from
turning to competitors.
•E. Word-of-mouth marketing: A happy customer will always promote business by telling ten other people of
their amazing services or performance received from a company.
•F. Reduced marketing cost: Lesser marketing costs means more value creation. For every 5% increase in
customer retention, it can increase the 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. It benefits both the company and the customers. Keeping your
communication lines open and keeping in touch with the customers makes them feel valued. This will keep
customers coming in and build brand equity for the company in the long run thus makes them identify more with
the company.

• H. Product market expansion. Going an extra mile, businesses and employees must be ready to deliver
beyond the boundaries on customer demand.
•Determined to truly develop the relationship, you need to bond with your customers, create friendships and get
inside the customer’s mind and heart. Let’s take a closer look at how this would be possible.
•Several activities to facilitate relationship marketing:
● Customers who are impressed by a brand’s exceptional service are more likely to remain loyal to the brand.
● Post in social media a simple thank you or a surprise gift card.
● Value customer opinions through customer feedback. Surveys, polls, and phone calls can create a positive
impression and help produce better products and services.
● Reward customers for their continued patronage through a loyalty program or card.
● Take-off customer events to connect with customers and build a community.
● Make your customer your brand ambassadors especially those who provide word-of-mouth advertisement.
● Offer discounts, promos, or bonuses to long-time or repeat customers.
 • Activity 2: Think About It!
•Directions: Contemplate and explain (3-5 sentences) your views on the following statements. Write your essay
in your notebook.
1. Customers are the reason you have a job.
2. Poor customer service loses money for companies and even individuals.
3. Happy customers stay loyal.
4. Unhappy customers frequently talk about their bad experiences.
•Customers want service, expect it, and demand it. Any other response, action, or behavior is usually summed up
in the mind of the customer by one word, excuse.
• Activity 3: Excuses, Excuses, Excuses

• Directions: Some common excuses are not welcome in the exchange process. As a marketer, how would you
render the service or product that your customer wants and expects to retain your customers?
• Activity 4: Oh My Skills!
•Directions: Explain relationship marketing and give its significance in developing an assuring long-term
customer relationship. Write your answer in your notebook.