Learning Area FUNDAMENTALS OF MARKETING Grade Level 11

W3 Quarter 3 Date

I. LESSON TITLE Relationship Marketing

II. MOST ESSENTIAL LEARNING
The learners shall be able to define “relationship marketing” (ABMˍPM11-Ic-d-5)
COMPETENCIES (MELCs)
III. CONTENT/CORE CONTENT The learners demonstrate an understanding of the value of customer relations
and customer service.
Suggested
IV. LEARNING PHASES Learning Activities
Timeframe
A. Introduction
Panimula After going through this lesson, you will be able to:
20 mins 1. define “relationship marketing; and
2. identify and describe relationship development strategies.

Let us start your journey in learning through our first activity.

Activity 1: Use in a Sentence

Directions: Look for the meaning of the following words and use them in a
sentence. Write it in your notebook.
1. Relationship marketing
2. Basic marketing
3. Reactive marketing
4. Accountable marketing
5. Proactive marketing
6. Partnership marketing
7. Word-of-mouth marketing
8. Repeat business
9. Meeting expectations
10. Product market expansion
B. Development What is relationship marketing?
Pagpapaunlad
50 mins Relationship marketing
It is a long-term customer-centric strategy to build customer loyalty,
satisfaction and retention rather than single-sale transactions. It recognizes
the lifelong value of customer relationships and creates strong, even
emotional, customer connections to a brand that can lead to repeatable
products and services acquisition while being cost-effective. With the
advancement of technology relationship marketing opens more
collaborative and social channels to promote open and easy two-way
communication between customers and the business.

Forbes defined it as a strategy designed to foster customer loyalty,

interaction and long-term engagement. It is designed to develop strong
connections with customers by providing them with information directly
suited to their needs and interests and by promoting open communication.

According to Serrano, it includes activities aimed at developing and

managing trusting and long-term relationships with larger customers. The
customer profiles, buying patterns and history contacts for reference and
future transaction activities are kept in the sales database. Based on those
activities, tailored information that suits the needs and interests are directly
provided to customers and develop strong connections.

The following are the five levels of relationship marketing. Each level
represents different stages from Basic which is the simplest form that serves
as the first step to the partnership which is the most advanced stage.
The 5 Levels of Relationship Marketing:
1. Basic marketing: this involves acquiring a customer and successfully
guiding them through a sale.
2. Reactive marketing: when a company receives feedback from a
customer after a sale.
3. Accountable marketing: this occurs when a business reaches out to
a customer for suggestions and ideas to improve their experience
with the business.
4. Proactive marketing: this is where businesses actively work to
improving their products and services to provide the best possible
experience for their customers.
5. Partnership marketing: this involves collaboration with other
businesses to improve customer experience and satisfaction.
- Learning Module for Principles of Marketing, DepEd Manila

Activity 2: Sketch a Skit

Directions: Think about what it was that specifically made you view the
service or product as an excellent one. Write a skit about this scenario and
ask your classmate or household member/s to draw out the characteristics
of relationship marketing based on your skit.

Characteristics of Relationship Marketing

1. It focuses on the long-term customer relationship.
2. It focuses on customer benefit and satisfaction rather than the
company’s products.
3. It emphasizes customer retention and growth rather than customer
acquisition.
4. It depends more on cross-functional teams rather than
departmental-level work.
5. It depends more on listening and learning than on talking.

To build customer loyalty, a good marketer puts its customers at the center
of all campaigns and strategies and provides the best product, service, and
experience possible.

Relationship Marketing influences in Marketing Mix

1. Product: More products begin to customize to customers’ preferences
thus new products are developed and designed supportively with suppliers
and distributors.
2. Price: There is more negotiation in business-to-business marketing
because products are often designed for individual customers. The
businesses set the price based on the relationship with the customer and the
bundle of features designed and services requested by the customer.
3. Place: It reduces the role of middlemen and favors more direct marketing
to customers. There are more alternatives to choose on ways or how the
customer wants to order, pay, receive, install or even repair the product.
4. Promotion: Delivered products and services as promised to the image
described by customers due to more integrated marketing
communications. A more personal or individual communications, and
dialogue with customers. It sets up extranets with large customers to simplify
the exchange of information, joint planning, ordering and payments.

Benefits of Relationship Marketing

In the business world, retaining customers is more cost-efficient by at least
eight times compared to acquiring new ones. Thus, relationship marketing
capitalizes is valuable to the company in different ways such as:

A. Understanding customer characteristics: A valuable feedback from

customers helps businesses understand their needs and expectations. With
this, the company can segregate its customers based on groups or
characteristics like purchasing power, frequency, and volume of sale
transactions.
 B. Delivery and meeting expectations: Product creation will be easier for
businesses if they know the features and specifications of the product their
customer needs and wants thus reducing wastage due to trial and error
methods.

C. Repeat Business: Good attitude and relationship with the customers will
make them feel that they do not need to switch to other sellers.

D. Prevents negative transition: Trust and loyalty are beneficial for all
businesses to prevent customers from turning to competitors.

E. Word-of-mouth marketing: A happy customer will always promote

business by telling ten other people of their amazing services or
performance received from a company.

F. Reduced marketing cost: Lesser marketing costs means more value

creation. For every 5% increase in customer retention, it can increase the
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. It benefits both the company and the
customers. Keeping your communication lines open and keeping in touch
with the customers makes them feel valued. This will keep customers coming
in and build brand equity for the company in the long run thus makes them
identify more with the company.

H. Product market expansion. Going an extra mile, businesses and

employees must be ready to deliver beyond the boundaries on customer
demand. - Learning Module for Principles of Marketing, DepEd Manila

C. Engagement Determined to truly develop the relationship, you need to bond with your
Pakikipagpalihan customers, create friendships and get inside the customer’s mind and heart.
25 mins Let’s take a closer look at how this would be possible.

Several activities to facilitate relationship marketing:

● Customers who are impressed by a brand’s exceptional service are
more likely to remain loyal to the brand.
● Post in social media a simple thank you or a surprise gift card.
● Value customer opinions through customer feedback. Surveys, polls,
and phone calls can create a positive impression and help produce
better products and services.
● Reward customers for their continued patronage through a loyalty
program or card.
● Take-off customer events to connect with customers and build a
community.
● Make your customer your brand ambassadors especially those who
provide word-of-mouth advertisement.
● Offer discounts, promos, or bonuses to long-time or repeat customers.

Activity 3: Think About It!

Directions: Contemplate and explain (3-5 sentences) your views on the
following statements. Write your essay in your notebook.
1. Customers are the reason you have a job.
2. Poor customer service loses money for companies and even
individuals.
3. Happy customers stay loyal.
4. Unhappy customers frequently talk about their bad experiences.
 D. Assimilation Customers want service, expect it, and demand it. Any other response,
Paglalapat action, or behavior is usually summed up in the mind of the customer by one
25 mins word, excuse.
Activity 4: Excuses, Excuses, Excuses
Directions: Some common excuses are not welcome in the exchange
process. As a marketer, how would you render the service or product that
your customer wants and expects to retain your customers?
V. ASSESSMENT Activity 5: Oh My Skills!
(Learning Activity Sheets for 10 mins Directions: Explain relationship marketing and give its significance in
Enrichment, Remediation or
ssessment to be given on Weeks 3
developing an assuring long-term customer relationship. Write your answer
and 6) in your notebook.

VI. REFLECTION
5 mins In your notebook, write your insight about the lesson using the prompts
below:
I understand that ________________________________________________.
I realize that _____________________________________________________.
I need to learn more about ______________________________________.

Prepared by: Ma. Cristina F. Pabalate, SDO Imus City Checked by: Dr. Josephine P. Canlas, Adora G. del Mundo,
Jeramie G. Buensuceso