Republic of the Philippines

Department of Education
Region VII
SCHOOLS DIVISION OF TOLEDO CITY

SENIOR HIGH SCHOOL

A lternative D elivery M ode

Department of Education
Toledo City Division
 Republic of the Philippines

Department of Education
Region VII
SCHOOLS DIVISION OF TOLEDO CITY

GRADE 12 PRINCIPLES OF MARKETING

THIRD QUARTER, WEEK 3-4
Module 2

CUSTOMER RELATIONSHIP :
CUSTOMER SERVICE

Learning Competency:

• Define “relationship marketing”, and “relationship development

strategies”
ABM_PM11-Icd-5

Address: D. Macapagal Highway, Poblacion, Toledo City

Tel. No.: (032) 322-7770; Fax. No.: (032) 467-8629;
Email Address: toledo.city@deped.gov.ph

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 Republic of the Philippines

Department of Education
Region VII
SCHOOLS DIVISION OF TOLEDO CITY

What I Need to Know

This module will help you:
1. Define Relationship Marketing;
2. Describe relationship development strategies;
3. Appreciate the importance of relationship development strategies;
3. Be responsible in doing the tasks about relationship marketing

What’s In

1. What are the typical characteristics of services?

a. Services confer benefits; are tangible; are time- and place-dependent; are
consistent; cannot be owned; and providers and consumers form part of the service.
b. Services confer no benefits; are intangible; are time- and place-dependent; are
inconsistent; cannot be owned.
c. Services are intangible; are time- and place-dependent; are inconsistent; cannot
be branded; and providers and consumers form part of the service.
d. Services confer benefits; are intangible; are time- and place-dependent; are
inconsistent; cannot be owned; and providers and consumers form part of the
service.
2. _____ is the amount of money charged for a product or service
a. expense curve c. Price
b.fixed cost d. Wage
3. A quantity discount Is a price reduction to buyers who purchase?
a. superior merchandise c. close outs
b. large volumes d. inferior merchandis0065
4. Common _____ objectives include survival, current profit maximization, market
share leadership, leadership building
a. Marketing mix c.pricing
b. management d. costing
5. Companies usually develop_____ rather than single products
a.product brands c. Product line
b. product groupings d. product families

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 Republic of the Philippines

Department of Education
Region VII
SCHOOLS DIVISION OF TOLEDO CITY

Mini-Lesson

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)
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.

BENEFITS OF RELATIONSHIP MARKETING

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 Republic of the Philippines

Department of Education
Region VII
SCHOOLS DIVISION OF TOLEDO CITY
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.

What Is Customer Service?

Customer service is the direct one-on-one interaction between a consumer making a
purchase and a representative of the company that is selling it. Most retailers see this

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Department of Education
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direct interaction as a critical factor in ensuring buyer satisfaction and encouraging repeat
business.
Even today, when much of customer care is handled by automated self-service systems,
the option to speak to a human being is seen as necessary to most businesses

Tips for having a good customer service:

1 .Persuasive Speaking Skills. Think of the most persuasive speaker in your organization.
2.Empathy
3. Adaptability
4. Ability to Use Positive Language
5.Clear Communication Skills
6.Self-Control
7.Taking Responsibility
8. Patience

What’s More

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
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 Republic of the Philippines

Department of Education
Region VII
SCHOOLS DIVISION OF TOLEDO CITY
B. Sales Concept D. Market structure
____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. Long term goals

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.
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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 Republic of the Philippines

Department of Education
Region VII
SCHOOLS DIVISION OF TOLEDO CITY

Post-Assessment
.
Assessment 1 :
Directions: For numbers 1-5 ,Read each question carefully and choose the letter of
the best answer in the box below.

A. Prevents negative C. Relationship marketing

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

____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.

Directions: For numbers 6-10, choose the letter of the correct answer.

6. Higher-level human needs appeal more to the emotions. These are the social needs
for recognition and the development of higher social satisfaction which is limitless.
A. Needs C. Wants
B. Drives D. Desire
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 Republic of the Philippines

Department of Education
Region VII
SCHOOLS DIVISION OF TOLEDO CITY
____7. Marketers often use the term ________ to cover various groupings of
customers
A. Buying power C. Market
B. Demographic segment D. People
____8.. Company are selling products and/or services by first promoting its benefit
that is environmentally friendly or produced in an environmentally friendly way.
A. Marketing Research C. Innovative marketing
B. Green Marketing D. Market Structure
___9.. 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
____10.refers to the characteristics of the market either organizational or competitive,
that describes the nature of competition and the pricing policy followed in the market.
A. Market structure C. Marketing management
B. Market share D. Marketing research

Assessment 2
Direction: Again, choose the letter of the best answer
____1. What is the difference between the term “customer” and the term “consumer”?
A. There’s no difference
B. The term consumer refers only to people who buy food and drink products.
C. Customers buy products but it is consumers who use them.
D.Customers make organisational rather than pers
____2. are human needs as shaped by individual personality and culture
A. Needs C. Demands
B. Wants D. Values
____3. All of the following are accurate descriptions of modern marketing, EXCEPT which
one?
A. Marketing is the creation of value of customers
B. Marketing is managing profitable customer relationships
C. $elling and advertising are synonymous with marketing
D.Marketing involves satisfying customers’ needs
____4. Why is marketing important in a demand-driven economy?
A. Consumers have lots of choice.
B. There is competition for customers.
C. Supply often exceeds demand.
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 Republic of the Philippines

Department of Education
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SCHOOLS DIVISION OF TOLEDO CITY
D. All of the above.
____5. In a competitive market it is important to retain customers, keep them happy and
increase the value of their orders. One of the techniques that has evolved to assist with this
is called:
A. cause-related marketing
B. transactional marketing
C. buzz marketing
D. customer relationship management
____6. The buying process starts when the buyer recognizes a _________.
A. Product
B. an advertisement for the product
C. a salesperson from a previous visit
D. problem or need
____7. Which of the following is considered a “key player” in the marketing industry?
A. marketer
B. suppliers or vendors
C. distributors or retailers
D.all of the above
___8 Which of the following is NOT considered a type of reseller?
A.wholesaler C. manufacturer
B. retailer D. distributor
___9. Holistic marketers achieve profitable growth by expanding customer share, ___, and
capturing customer lifetime value.
A. undermining competitive competencies
B. building customer loyalty
C. milking the market for product desires
D. renewing a customer base
___10.The task of any business is to deliver ________ at a profit.
A. customer needs
B. customer value
C.products and services
D. improved quality

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 Republic of the Philippines

Department of Education
Region VII
SCHOOLS DIVISION OF TOLEDO CITY

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 Republic of the Philippines

Department of Education
Region VII
SCHOOLS DIVISION OF TOLEDO CITY
References

Whiteside, Jupiter/ Emit, Mark Vincent / Gumaru, Isabel/ Dela Cruz, Elaine- Principles
of Marketing Division of City Schools- Manila

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.

Principles of Marketing ModuleQ2, Module 9 By :MARK JOSEPH V. SANGIL, DBA

Real C. So & Oscar G. Torres (2016).Principles of Marketing, pp. 72-82

Roberto Medina (2008), Principles of Marketing, pp. 122-153

Kotler, P. and Armstrong, G. (2014) Principles of Marketing (15th edn). Harlow:

Pearson Education

Websites
https://study.sagepub.com/masterson4e/student-resources/chapter-1/multiple-
choice-quiz

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 Republic of the Philippines

Department of Education
Region VII
SCHOOLS DIVISION OF TOLEDO CITY
Williamson, Will (2020), Traditional Vs Contemporary Marketing Strategies, Retrieved
from https://blog.jdrgroup.co.uk/digital-prosperity-blog/traditional-vs-contemporary-
marketing-strategies 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

http://dimr.edu.in/wp-content/uploads/2015/03/MCQ-FOR-BOM.pdf

https://www.google.com/search?q=marketing+principles&oq=marketing+principles&
aqs=chrome..69i57j69i60j69i61j69i60.4879j0j4&sourceid=chrome&ie=UTF-8
https://www.salesforce.com/products/service-cloud/best-practices/important-
customer-service-skills-list/

```` https://smallbusiness.chron.com/economic-influence-marketing-59889.html

https://brainly.ph/question/4372763

Writer
Jhoanna Mae Abapo is a Secondary Teacher 1 (JHS) of Matab-ang National
High School and is currently handling Business Math, Principles of Marketing, Applied
Economics and Araling Panlipunan 10 subjects. She is a graduate of BSC major in
Management Accounting. She got DPE units in Social Studies and complete academic
requirements in MBA major in Financial Management.

The Editor
: Ji-An M. Catibig is a Senior High School Master Teacher 1 from Luray II National
High School. She is a graduate of BSED-Mathematics and MaEd-Math and is
currently teaching Practical Resea4rch2 and Inquiries, Investigation and Immersion

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