REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF EDUCATION
DIVISION OF CABADBARAN CITY

NORTHERN MINDANAO COLLEGES, INC.

Atega Street, Barangay 11 Poblacion, Cabadbaran City
8605 Agusan del Norte, Region XIII
NON-SECTARIAN
1946

Self-Learning Module for Principles of Marketing

Quarter 1, Week 2

Name : ________________________________________
Grade and Section : ________________________________________
Date : ________________________________________

Introduction:
Every human interaction and transaction is built around relationships. Networks of relationships is
the fundamental design of the human society. No wonder that this fundamental fact has been recognized
and explored by all the businesses where in they have been building business strategies around the
customer and strive to build a relationship with every Customer.
Relationship Marketing therefore has evolved not only as a marketing strategy but has
been the foundation on which the Companies build their core values and ethics. Relationship
Marketing defines the framework for the Company to reach out as well as and orient themselves to the
outside markets, to the end customer as well as to the business partners, the suppliers and vendors too.
Relationship marketing is not limited to Customers and Suppliers alone but has been extended in scope
to cover he internal employees as well as an effective way of reaching out to attracting best talent too. If
you scan any advertisement of a leading Corporate in the Newspaper, you will see that major portion of
the advertisement for recruitment is related to the Company’s background, culture and the effort to reach
out to the prospective employees. The advertisements are designed to strike a cord amongst the readers
that prompts one to apply for the job.

Directions for the User

Here are some reminders to guide as you go through this module:

1. Understand and follow the instructions carefully.

2. Accomplish the pretest to identify your preparedness about the lesson in this module.
3. Be honest in answering and checking your activity.
4. Read each lesson and do activities provided for you.
5. Demonstrate the activities to guide you in comprehending the lessons
6. Answer the posttest measure how much you have gained from the topics.

Pretest
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 from the customer any product
improvement suggestions and any specific disappointments. This information helps the company
continuously to improve its offering.
____2. The company salesperson sells the product but does 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.
A. Reactive B. Proactive C. Partnership D. Basic E. Accountable

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 Objectives and Competencies
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;
relate the topic in real life experiences or in life

Procedure/Learning Experience
A. ENGAGE: Activity 1: Charting…
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 .

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

Why?

C. EXPLAIN: Lesson 1. Relationship Marketing

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.
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.

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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

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.

H. Product Market Expansion - the company’s employees must be ready to deliver beyond the
company’s boundaries on customer demand.

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.

D. ELABORATE: Activity 3: FILL IN THE BLANKS

Directions: Complete the following statements. Write the word/s that would complete the given
statement.
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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
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

B. Essay:
Reflective Question. Can businesses still use relationship marketing despite this pandemic situation?
Explain.
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References:

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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

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

Prepared by:

BRIAN REYES GANGCA

SHS Teacher

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