Republic of the Philippines

Department of Education
REGION VII – CENTRAL VISAYAS
Schools Division of Cebu Province
SELF LEARNING HOME TASK (SLHT)

Subject: Principles of Marketing Grade Level: 11 Quarter: 3 Week: 4-5

MELC: explain the value of customers
Competency Code: ABM_PM11-Icd-6
Learning Objectives
Knowledge : explain the value of customers
Skill : develop a program for customer service
Attitude : manifest the attitude of valuing customers
.
Name: __________________________ ________ Section: _______________ Date: __________

School: _______________________________________________ District: ______________

A. Readings/Discussions:
Will Your Business Survive?

Source: https://www.vectorstock.com/royalty-free-vector/people-hold-smile-face-icon-or-emoticon-set-of-vector-26174266

Imagine that you’re a businessman and the above photo is a picture of your customers which
rated your service based on the emojis they hold.

Questions:
1. How many of your customers are very satisfied?
2. How many of your customers are dissatisfied?
3. Do you think your business will survive if you get the same rates for the next five years?
4. What will you do to improve customer satisfaction?
5. Why should we value customers?
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Businesses need money to survive. To make money, businesses need customers. Ideally,
these customers are happy, tell their friends about you, and keep coming back. While your
business might survive with angry, single-purchase customers, only businesses with a focus
on customer satisfaction will thrive. Customer satisfaction is the difference between surviving
and thriving. Without customers, you can’t have a business. As the life force of any
organization, your customers and their satisfaction should always be one of your top priorities.
This explains why we need to value customers.

In this lesson, we will talk about building customer value which is vital to the survival and
growth of a business or your business in the near future. Now, let’s begin!

Building Customer Value

Customer value is defined as the satisfaction derived from what a customer may experience or
expect to experience by choosing a particular action relative to the cost of that action. The action
can be purchase, a visit, an order, or a sign up. The cost refers to anything that can be given up
to receive the desired product or service, which can be in the form of money, time, knowledge,
data, or others. For example, when a customer buys an iPhone, he or she may immediately feel
a sense of satisfaction relative to the price he or she has paid to get it.

The creation of customer value does not rely on marketing alone. It encompasses other
functions such as sourcing, operations, processing, communication, human resource services,
administration, finance, and accounting. These functions directly or indirectly affect customer
value because a product or service will not reach the end users without any of them.

Types of Customer Value

There are four types of customers based on projected customer retention and loyalty to the
brand.

1. Strangers. They are customers whose needs do not fit the company’s offerings. The
company does not need to invest and exert effort to win them.

2. Butterflies. As the name implies, they are not loyal to a specific brand because they keep on
looking for the best deals which may lead to patronizing other brands. The
company can enjoy profits from these customers only for a short period.

3. True friends. These customers have needs that match the company’s offerings. They make
repeat purchases and patronize the brand so long as it satisfies their needs.
The company must invest in these customers and strengthen its relationship
with them.

4. Freeloaders. They are loyal customers but not profitable because of the limited fit between
their needs and the company’s offerings. For example, a few customers of a
salon patronize its services regularly but do not generate enough profit to
sustain the maintenance costs; it can earn only if it raises the prices of its
services.

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 Levels of Customer Value

The levels of customer value indicate what the consumers expect and do not expect from their
purchase decision.

Basic and expected levels. These levels include the basic requirements of conducting a
business. For instance, restaurants are expected to have a spacious dining area and clean
tables and utensils. If these requirements are not met by the business, it cannot provide high-
quality customer value.

Desired customer value. This involves what the customers want from the purchase or service
experience. This is the first opportunity for a business to get ahead of the competition. For
example, a retail shop can provide friendly and helpful staff who can assist the customers in
making the right purchase.

Unanticipated customer value. It pertains to an unexpected purchase or service experience

that may go beyond what the customers desire. For example, in gasoline station, the gasoline
station boy cleans the car windows after filling up the customer’s gasoline tank without an extra
charge.

Relationship Development Strategies

Recent research has shown that loyal customers prove to be more profitable than ordinary
customers. This is the reason why companies are challenged to maintain customer loyalty.
Companies should practice the following relationship development strategies to retain loyal
customers:

1. Communicate with customers frequently and effectively. It is important to always get in

touch with customers through e-mail and social networking sites to sustain brand recall. Also,
they should be provided with various means to give immediate feedback (e.g., online customer
surveys) so companies can promptly respond to them.

2. Offer customer rewards. Customer loyalty programs, which include special discounts,
perks, and freebies, may work well for various types of products and services. These encourage
consumers to remain loyal to the brand because they are rewarded for their patronage.

3. Conduct special events and provide sponsorships. Companies can hold or sponsor
parties, concerts, contests, and the like to boost interaction among loyal customers and
company representatives.

4. Enhance customer service. Some companies outsource their customer services to third
party organizations to cater to complaints and inquiries, promote their latest offerings, and
provide technical support.

5. Utilize languages to reach a wider customer base. Marketers can create promotional
materials in different languages to cater to specific regions. Consumers can also now choose
the language they would like to use to communicate with customer service representatives.

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B. Exercises:

Exercise 1. Concept Mapping

Directions: Explain the value of customers by creating a concept map. (30 points)

Description

Description
Value of
Description
Customers

Description Description

Short
explanation

Rubrics for Concept Map Making

CATEGORY EXCEEDS EXPECTATION MEETS EXPECTATION BELOW EXPECTATION

(10 points) (9 points) (8 points)

Content Content is accurate and Content is somewhat Content is less accurate

precise. accurate and precise. and precise.

Craftsmanship Work done with exceptional Work done with minimal Work done with no care
care and attention to detail and care and attention to or attention to detail or
neatness detail and neatness neatness.

Effort Work shows exceptional effort, Work shows basic effort, Work shows a lack of
planning and pride planning and pride. effort, planning and pride.

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Exercise 2. IDEA RAKE
Directions: Enumerate and describe the types of customer by creating an idea rake.
Answer the additional question then. (30 points)

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 Exercise 3. YOU’RE THE CUSTOMER!
Directions: Read the instructions below and answer the questions that follow. (30 points)

Pick 3 of the business establishments in your municipality which you experienced

customer service. Determine its level of customer value and explain why you choose
that level of customer value.

Name of the Business Level of Customer Value State your reason why did
you choose the level of
customer value.

(1 point each) (4 points each) (5 points each)

1.

2.

3.

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 Exercise 4. IT’S CUSTOMER SERVICE DAY!
Directions: Read the situation below and answer the questions that follow. (25 points)

You have just transferred to a new position from being a Marketing Supervisor to a
Marketing Manager. The company that you are working is a pearl business and its sales
are going down because customers aren’t satisfied to the customer service delivered by
the sales agents. Now, the owner is so disappointed by the sales agents’ careless actions
and he needs you to take action by making a customer service program. What program
will you make?

Name of your customer (5 points)

service program.

How does it work? Clearly (10 points)

state the mechanics.

How does the program help (10 points)

increase the company’s
sales?

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C. Assessment/Application/Outputs

MARKETING DAY
Directions: Read the instructions below and answer the questions that follow. (25 points)

Cite a poor customer service that you have encountered and write your suggestions or
recommendations to the relationship development strategies that establishment should
practice.

Cite a poor (5 points)

customer service.

Write your (10 points)

suggestions or
recommendations
to the business
owner regarding
the relationship
development
strategies that
his/her
establishment
should practice.

State your reason (10 points)

why you chose
that strategy for
the business.

Page 8 of 10
 D. Suggested Enrichment / Reinforcement Activity

Directions: Answer each question in a short paragraph. Compose a minimum of 5

sentences for your answer. Strictly NO ERASURES. (40 points)

1. Why is it important to value customers? Briefly explain.

2. What are the types of customer value? Briefly explain each.
3. What are the levels of customer value? Briefly explain each.
4. What are the development relationship strategies? Briefly explain each.

Rubrics in Rating
Score

10 points 8 points 7 points

Response is correct, well Response is somewhat Response does not answer

written and has a minimum correct and has only 3 to 4 the question and has only 1
of 5 sentences. sentences to 2 sentences

References:

 DepEd. Kto12 MELC. Principles of Management

 Zarate, C.A. (2017). Principles of Marketing for Senior High School. C&E Publishing, Inc.
 https://www.solvexia.com/blog/customer-value-your-complete-guide

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Prepared by:

Jessa A. Anuada
TII-SHS, Sibonga NHS

Edited by:

Imelda V. Canoy, Ed.D.

Principal IV, Sibonga NHS

Reviewed by:

Clavel D. Salinas, Ed.D.

Division SHS Coordinator

For the Teacher:

If you see that there is missing in the lesson, please provide your class a supplementary
activity to ensure the quality of learning in every student.

For the Learner:

Read religiously. If there’s something in the lesson that makes you confused, please feel
free to contact your teacher and surely, they are willing to enlighten you.

For the Parent/Home Tutor:

Patience is a virtue. Please be patient to your children when assisting them, spare time for
them and help them manage their time. If you have concerns related to your child’s school
performance, please don’t hesitate to contact his/her adviser with kindness approach.

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