Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
PRINCIPLES OF MARKETING
GRADE 12-ABM
SY 2023-2024
MS. ROWENA A. GONJORAN
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
PRAYER
Come, Holy Spirit, Divine Creator, true source
of light and fountain of wisdom! Pour forth your
brilliance upon our dense intellect, dissipate
the darkness which covers us, that of sin and
of ignorance. Grant us a penetrating mind to
understand, a retentive memory, method and
ease in learning, the lucidity to comprehend,
and abundant grace in expressing myself.
Guide the beginning of our work, direct its
progress, and bring it to successful completion.
This we ask through Jesus Christ, true God
and true man, living and reigning with You and
the Father, forever and ever. Amen.
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
LESSON 2:
Topic: Relationship Marketing
Learning Competencies:
At the end of the lesson 100% of the learners are expected to:
1. define “relationship marketing”
2. identify and describe “relationship development strategies
3. relate the topic in real life experiences or in life
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
PRETEST
FILL IN THE CORRECT ANSWER
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 sales person sells the product but does
not follow up in any way.
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
___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
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
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
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
___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 process 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
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
___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
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
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 ng-term value to
customers and the measure of success is long-term
customer satisfaction.
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
Brief Introduction
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 level 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
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
2. Reactive - The salesperson sells the product and
encourages the customer to call whenever he or she has
any questions or probles.
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.
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
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 delivers better value.
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
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.
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
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.
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
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
relationship:
developing
and
implementing
customer
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
Benefits in developing
relationship:
and
1. Consistent customer experience
2. Customer Feedback
3. Customer Profitability
4. Customer Advocate
5. Innovation
implementing
customer
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
Benefits Of Relationship Marketing:
In the business world, retaining customers has a lesser cost
at least eights time 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 companyget
valuable feedback from its customers and understand their
needs and expectations.
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
B. Delivery and Meeting Expectations
-If the company knows what its customer`s 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.
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
D. Prevents Negative Transition
-Trust and loyalty go hand in hand and it is super beneficial
for all business. t will help prevent customers from turning to
competitors.
E. Word-of-Mouth Marketing
a. Increasing Cutomer 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.
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
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.
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
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 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.
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
Remember:
Relationship marketing is a facet of customer relationship
management (CRM) that focuses on customer loyalty and longterm customer engagement rather than short-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.
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
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, 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.
Department of Education
Division of City Schools Manila
ELPIDIO QUIRINO HIGH SCHOOL
Senior High School Department
ACTIVITIES:
Directions:
Read carefully the following activities and answer the following
questions asked for. Write your answer in a 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, GMA, Robinsons, & A water refilling station.
Activity 2:
Is Customer Relationship differ from “SUKI” of Filipino value
system? Why?