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PRINCIPLES OF MARKETING
For Senior High School
Module 2
LESSON
2
Relationship
Marketing
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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
subjected to discuss Module 2 – Define “Relationship Marketing”
Most Essential Learning Competency:
1. define “relationship marketing”
2. identify and describe “relationship development strategies;
3. relate the topic in real life experiences or in life

Let us start your journey

in learning thru a Pretest.

PRETEST Smile and Enjoy!

Matching-Type.
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 A.
from Reactive
the customer any product improvement suggestions andB. Proactive
any specific disappointments. This information helps theC.
Partnership
company continuously to improve its offering. D. Basic
2. The company salesperson sells the product but does E. Accountable
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.

Great, you are now

finished answering the
questions. You may request
your facilitator to check your
2 work.
Congratulations and keep on learning!
LOOKING BACK TO YOUR LESSON

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 relationships in
ways that benefit the organization and its stakeholders.
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

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.

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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.
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.
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.
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

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Learning Module for Principles of Marketing

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 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.
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Learning Module for Principles of Marketing
H. Product Market Expansion - the company’s employees must be
ready to deliver beyond the company’s boundaries on customer
demand.

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?

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.

CHECK YOUR UNDERSTANDING

FILL IN THE BLANKS
Directions: Complete the following statements. Write the word/s that
would complete the given statement.
1. 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.

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Learning Module for Principles of Marketing
2. the salesperson or others in the company phone
the customer from time to time with suggestions about improved product
use or helpful new products.
3. the company works continuously with the
customer and with other customers to discover ways to deliver better
value.
4. 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.
5. 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.

POST-TEST

MULTIPLE CHOICE.
Directions: Read each question carefully and choose the letter of the best
answer in the box below.

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 and its
customers. The relationship involves marketing communications, sales
support, technical assistance and customer service. 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 customers coming in and build brand
equity for the company in the long run.

A. Prevents negative transition. C. Relationship marketing

B. Reactive D. Identification with the company
C. Word of mouth marketing F. Customer relationship

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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. As only 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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ANSWER KEY

PRETEST:
1. Accountable
2. Basic.
3. Partnership.
4. Proactive.
5. Reactive.

LOOKING BACK TO YOUR LESSON:

1. C 2.B 3. A 4. C 5.D

ACTIVITIES:

Activity 1: choose 2 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.
Answer. The learner will identify the brands practice Relationship Marketing and
how the following brands practice relationship marketing.

Activity 2: Is Customer Relationship differ from “SUKI” of Filipino value system?

Why? Answer. Yes. “Suki” is a distinct Filipino value system which is rooted
primarily in personal alliance systems based on commercial relationships In
business: Though
a suki relationship usually takes time and many business transactions to be
solidified, suggesting a suki like relationship.

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:

FILL-IN THE BLANKS

(1) Relationship marketing (2) Proactive (3) Partnership (4) Customer relationship
(5) Accountable.

POSTTEST

MULTIPLE-CHOICE
1. C 2. A 3. B 4.F 5. D
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E-SITES
To further explore the concept learned today and if it possible to
connect the internet, you may visit the following links:
link: https://www.youtube.com/watch?v=iBBje33-rtI
source:https://www.pwc.com/ph/en/advisory/deals-advisory/responding-
to-the potential- business-impacts -of-covid -19--deals-.html

REFERENCES
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
Gilaninia, Sharam & Almani et al (2011) Relationship Marketing: A New Approach to
Marketing in the Third Millennium. Australian Journal of Basic and
Applied Science.
Go, Josiah (1996). Contemporary Marketing Strategy in the Philippine Setting,
Manila: National Bookstore
MEDINA, ROBERTOs G. (2008), Principles of marketing revised edition REX
Bookstore.
Williamson, Will (2020), Traditional Vs Contemporary Marketing Strategies,
Retrieved from https://blog.jdrgroup.co.uk/digital-
prosperity-blog/traditional-vs- contemporary-marketing-strategies

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