Republic of the Philippines

BOHOL ISLAND STATE UNIVERSITY

Main Campus
Carlos P. Garcia North Avenue, Tagbilaran City
Vision: A premier Science and Technology university for the formation of a world class and virtuous human resource for
sustainable development in Bohol and the country.
Mission: BISU is committed to provide quality higher education in the arts and sciences, as well as in the professional and technological
fields, undertake research and development, and extension services for the sustainable development of Bohol and the country.

College of Business, Arts and Sciences

BS in Office Administration
First Semester, A.Y. 2022- 2023

Group 1 Arvin Caballo, MBA, LPT

BSOAd 3B OA110 Customer Relations

Group Members:
Aceron, Lara
Aceron, Ma. Shenna Mae
Acuzar, Joyce Mae
Alolino, Mary Grace
Alolino, Jenelyn

Summary Report

Topic: Who is the Customer?

Learning objectives:

a) Understand the concepts of customer chain

b) Define marketing mix and marketing segmentation.
c) Appreciate the relationship of the customer to the market with its core and
supplementary products.

Who is the Customer?

We experience being a customer every time we buy goods from a store, pay of bill,
grab a coffee from a shop or think about purchasing a new phone! A customer is any
person or organization who buys product or services in a company. For instance, as we
buy goods in a supermarket we are acting as a customer. Anyone can be a customer
even a company can be a customer to another company.

Customer Vs. Consumer

Given in the previous definition, a customer is any person or organization who buys
product or services in a company. A customer relates to people or businesses who shop
for products and receive them from other individuals or companies following an exchange
of some kind. They participate in short interactions with the seller, which end when the
customer leaves with their desired product. While a consumer, are people or businesses
who use or consume the final product or service offered by another entity. Consumers
are more closely examined from a marketing perspective because they drive supply and
demand, influencing trends in the market while also regulating how finances are
exchanged for a product or service. For instance, Anna buys fruits and vegetables in a
supermarket. So Anna became the customer in that supermarket. When Anna consumed
what she buys in the supermarket, then she became the consumer.
Type of Customer

1. External Customer – These are customers outside your business. It is a type of

customer who does not have any direct relationship with the company but buys
and consumes the produced products and services.
2. Internal Customer – These are customer who work within your company. It is a
type of customer who are part of the organization like the employees of the
company. They also play an important role in the success of a business because
they’re the one who is assigned on the internal process of a company or
organization.

Importance of a customer

Customers are the lifeblood of any business. Without customers, there is no business.
Regardless of what industry we’re in or what kinds of products and services we sell, our
customer is the most important part of the business.

Understanding Customer Behavior

Customer Behavior
- Is how a customer acts or reacts in relation to the products and services they use
and the companies that provide them.

Businesses study customer behavior to understand their target audience and create
more-enticing products and services. Knowing about customer behavior helps to predict
how a new item will be received by potential customers and aids companies in identifying
untapped potential.

Relationship between Customer Service and Customer Satisfaction

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.
Customer Satisfaction
- Is defined as a measurement that determines how happy customers are with a
company’s products, services, and capabilities.

Customer satisfaction is very important consideration when one is engaging into

business. The customer service involves customer support and customer care. Support
is more about specific issues, and care is more about building a connection with the
customer. Both of these approaches ensure customer satisfaction.

Customers are satisfied when transactions go smoothly, when employees are

respectful, and when questions are answered quickly. Providing excellent customer
service is a cause whose result is customer satisfaction.

Marketing Mix

Marketing mix is a set of actions a business takes to build and market its product or
service to the customers. This also means that a product can be taken to both goods and
services and is applicable across all sectors of activity (Kotler 1980).

According to Kotler 1980, marketing mix is comprised of the following:

1. Product/ Customer Value
2. Price/ Cost
3. Branding
4. Promotion/ Communication
5. Place/ Convenience
The importance of marketing mix to its target customer is that it helps understand what
your product or service can offer to your customers. Giving importance to the elements
of the marketing mix allows a business to make profitable marketing decisions at every
level.
Significant Terms

Market Research- A market research is a set of techniques used to gather information

and better understand a company’s target market which is called customer. Effective
market research is about asking the right questions of the right people so that only those
hunches that meet customer requirements come to market. It also ensures that the
products and services offered are those desired by the customer.

Market Segmentation - One of the most effective ways marketers can take their
customers into account when developing their campaigns is to segment them based on
specific criteria. It’s vital to understand that not all customers have the same needs or
behave the same way toward products. When you can segment customers based on
similar criteria, you can develop marketing for each segment for better results.

Delighting Customer - Customer delight is the process of exceeding a customer's

expectations to create a positive experience with your product or brand. Delighting
customer is very important in every business. We need to surpass customer
expectations. Discounts, gifts, promotion, or spontaneous outreach can all increase
customer delight.