12 SENIOR HIGH SCHOOL
PRINCIPLES OF
MARKETING
Quarter 3 Module 2
Defining Relationship Marketing
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process, it is necessary to know some Marketing Principles and Strategies.
The module is subjected to discuss the Module 2 which focus on the discussion
about Relationship Marketing.
Marketing prepares students for more than just a career in business but it is a
thorough exploration of customer perceptions, buyer personas, messaging,
communication, data, and much more.
LEARNING COMPETENCY:
Define and understand marketing (ABM_PM11-Ic-d-5)
OBJECTIVES:
K: Define and understand relationship marketing;
S: ;
A: Value the importance of relationship marketing and relate it in
real life experiences.
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is It
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
long- term value to customers and the measure of success is long-term customer satisfaction.
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 levels of relationships that can be formed with
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
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.
Partnership. The company works continuously with the customer and with other
customers to discover ways to deliver better value.
Concept of Relationship Marketing
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.
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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.
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 Developing and Implementing Customer Relationship
1. Consistent customer experience
2. Customer Feedback
3. Customer Profitability
4. Customer advocate
5. Innovation
Benefits of Relationship Marketing
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 -
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
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.
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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
much as 125%, while simultaneously leading to a reduction of 10% in marketing costs.
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.
H. Product Market Expansion -
Task 3
Activity 1: system? Why?
Rubrics for Grading the Essay:
5- If the paragraph consists of 5 or more sentences with correct and complete Information.
4- If the paragraph consists of 3 to 4 sentences with correct information.
3- If the paragraph consists of 2 to 3 sentences with correct information.
2- If the paragraph consists of 2 sentences with correct information
1- if the paragraph consists of only one sentence with correct information.
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