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SENIOR HIGH SCHOOL
PRINCIPLES OF
MARKETING
Quarter 3 – Module 2
Defining Relationship Marketing
Principles of Marketing – Grade 12
Alternative Delivery Mode
Quarter 3 – Module 2: Defining Relationship Marketing
First Edition, 2020
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Principles of
Marketing
Quarter 3 – Module 2
Defining Relationship Marketing
Introductory Message
For the facilitator:
Welcome to the Grade 12 Principles of Marketing Alternative Delivery Mode
(ADM) Module on Defining Relationship Marketing!
This module was collaboratively designed, developed and reviewed by
educators both from public and private institutions to assist you, the teacher
or facilitator in helping the learners meet the standards set by the K to 12
Curriculum while overcoming their personal, social, and economic
constraints in schooling.
This learning resource hopes to engage the learners into guided and
independent learning activities at their own pace and time. Furthermore, this
also aims to help learners acquire the needed 21st century skills while taking
into consideration their needs and circumstances.
In addition to the material in the main text, you will also see this box in the
body of the module:
Notes to the Teacher
This contains helpful tips or strategies that
will help you in guiding the learners.
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. Furthermore, you are expected to
encourage and assist the learners as they do the tasks included in the module.
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For the learner:
Welcome to the Grade 12 Principles of Marketing Alternative Delivery Mode
(ADM) Module on Defining Relationship Marketing!
This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time.
You will be enabled to process the contents of the learning resource while
being an active learner.
This module has the following parts and corresponding icons:
What I Need to Know
What I Know
This will give you an idea of the skills or
competencies you are expected to learn in the
module.
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; 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
What I Have Learned
What I Can Do
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.
This
includes
questions
or
blank
sentence/paragraph to be filled in to process
what you learned from the lesson.
This section provides an activity which will
help you transfer your new knowledge or skill
into real life situations or concerns.
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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.
Answer Key
This contains answers to all activities in the
module.
At the end of this module you will also find:
References
This is a list of all sources used in
developing this module.
The following are some reminders in using this module:
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 What I Know before moving on to the other activities
included in the module.
3. Read the instruction 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 through with it.
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!
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I
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 the Module 2 which focus on the discussion
about Relationship Marketing.
Marketing prepares students for more than just a career in business but it is a
thorough exploration of customer perceptions, buyer personas, messaging,
communication, data, and much more.
LEARNING COMPETENCY:
• Define and understand marketing (ABM_PM11-Ic-d-5)
OBJECTIVES:
K: Define and understand relationship marketing;
S: Identify and describe “relationship development strategies;
A: Value the importance of relationship marketing and relate it in
real life experiences.
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I
Pre-assessment:
I. Identification.
Directions: Choose appropriate letter in the box and write the letter of your choice
in your activity notebook.
A. Reactive
B. Proactive
C. Partnership
D.
D. Basic
E. Accountable
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.
II. Multiple Choice
Directions: Read each question carefully and choose the letter of the best answer.
1. It is a benefit of relationship marketing where sellers should maintain good attitude to the
buyers.
A. Delivery and meeting expectations
B. Word-of-mouth marketing
C. Repeat Business
D. Reduced marketing cost
2. It is a strategy designed for customer loyalty, interaction, and long-term engagement to be
fostered.
A. Customer Relationship
C. Relationship Marketing
B. Marketing
D. None of these are correct.
3. Another benefit of relationship marketing is where trust and loyalty go hand in hand and it
is super beneficial for all business.
A. Understanding customer characteristics
C. Prevents negative transition
B. Product Market Expansion
D. Identification with the company
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4. If the company knows what its customers’ needs are, it will help reduce wastage due to trial
and error methods.
A. Delivery and meeting expectations
C. Repeat Business
B. Understanding customer characteristics
D. Prevents negative transition
5. The following are benefits in developing and implementing customer relationship except
one.
A. Innovation
C. Customer Feedback
B. Customer Profile
D. Customer Profitability
6. The company’s employees must be ready to deliver beyond the company’s boundaries on
customer demand.
A. Product Market Expansion
C. Repeat Business
B. Identification with the company
D. None of these are correct.
7. Customer relationship involves the following except one.
A. Marketing communications
C. Sales Support
B. Technical assistance
D. Buying Patterns
8. The following are characteristics of relationship marketing except one.
A. It focuses on partners and customers rather than on the company’s products.
B. It relies on cross-functional teams rather than on departmental-level work.
C. It relies more on talking and learning than on listening.
D. It focuses on the long-term rather than the short-term.
9. The following are levels of relationships that can be formed with customers who have
purchased a company’s product except.
A. Proactive
C. Accountable
B. Active
D. Reactive
10. The salesperson solicits from the customer any product improvement suggestions and any
specific disappointments.
A. Accountable
C. Partnership
B. Basic
D. Reactive
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’s In
Task 1: 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. It 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
’s New
Task 2
Answer briefly the following questions. Write your answers on your activity notebook.
1. Why is there a need for a company to practice relationship marketing?
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is It
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.
Partnership. The company works continuously with the customer and with other
customers to discover ways to deliver better value.
Concept of Relationship Marketing
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.
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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
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
❖ 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.
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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.
’s More
Task 3
Activity 1: Is Customer Relationship differ from “SUKI” of Filipino value system? Why?
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.
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I Have Learned
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.
I Can Do
Task 4
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 longterm 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.
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I. Multiple choice.
Directions: Read each question carefully and choose the letter of the best answer in
the box below.
A. Prevents negative transition.
B. Customer Service
C. Reactive
D. Identification with the company
E. Word of mouth marketing
F. Customer relationship
G. Basic
H. Relationship Marketing
I. Accountable
J. Proactive
K. Partnership
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. It 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.
6. The company works continuously with the customer and with other customers to discover
ways to deliver better value.
7. It is an interaction with current customers and potential ones.
8. The salesperson or others in the company phone the customer from time to time with
suggestions about improved product use or helpful new products.
9. The company salesperson sells the product but does not follow up in any way.
10. The salesperson phones the customer a short time after the sale to check whether the
product is meeting the customer’s expectations.
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II. TRUE or FALSE
Directions: Write T if the Statement is True, and write F if the statement is False.
1. According to Serrano, Relationship marketing involves creating, maintaining and
enhancing strong relationships with customers and other stakeholders.
2. Relationship marketing requires that all the company’s departments work together with
marketing as a team to serve the customer.
3. Customer relationship is the development of an ongoing connection between a company
and its customers.
4. Delivery and meeting expectations is where the company’s employees must be ready
to deliver beyond the company’s boundaries on customer demand.
5. Relationship marketing is a facet of customer relationship management (CRM) that
focuses on customer loyalty and long-term customer engagement rather than shorterterm goals like customer acquisition and individual sales.
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. Write your answers your activity notebook
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
____________________________________.
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Pre-Assessment:
I. MATCHING TYPE
1. E
2. D
3. C
4. B
5. A
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II. MULTIPLE CHOICE
6. A
7. D
8. C
9. B
10. A
1. C
2. C
3. C
4. A
5. B
WHAT’S IN – TASK 1
1. C
2.B
3. A
4. C
5.D
WHAT’S NEW – TASK 2
Answers may vary
WHAT’S MORE- TASK 3
Activity 1: 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.
WHAT I CAN DO- TASK 4
FILL-IN THE BLANKS
(1) Relationship marketing (2) Proactive
(3) Partnership
(4) Customer relationship
(5) Accountable.
ASSESSMENT
I.MULTIPLE-CHOICE
1. E
2. A
3. C
II.TRUE OR FALSE
4. F
5. D
6. K
7. H
8. J
9. G
10. I
11. F (Gilaninia) 14. T
12. T
15. F
13. T
(Product)
Market
Expansion)
References
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=iBBje33rtI source:https://www.pwc.com/ph/en/advisory/deals-advisory/responding- to-the
potential- business-impacts –of covid -19--deals-.html
Book:
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-vscontemporary-marketing-strategies
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