Principles of Marketing Marketing Quarter 1 Week-2 PDF

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Learning Competency:After going through this module, you areexpected to achieve:1. define “relationship marketing”2. identify and describe “relationship developmentstrategiesABM_PM11-Icd-Republic of the Philippines Department of Education National Capital Region DIVISION OF CITY SCHOOLS – MANILA Man...

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Republic of the Philippines Department of Education National Capital Region

DIVISION OF CITY SCHOOLS – MANILA Manila Education Center Arroceros Forest Park Antonio J. Villegas St. Ermita, Manila

PRINCIPLES OF MARKETING

Quarter 1 Week 2 Module 2 Learning Competency: After going through this module, you are expected to achieve: 1. define “re 2. identify an strategies

HOW TO USE THIS MODULE? Before starting the module, I want you to set aside other tasks that will disturb you while enjoying the lessons. Read the simple instructions below to successfully enjoy the objectives of this kit. Have fun! 1. Follow carefully all the contents and instructions indicated in every page of this module. 2. Write on your notebook the concepts about the lessons. Writing enhances learning, that is important to develop and keep in mind. 3. Perform all the provided activities in the module. 4. Let your facilitator/guardian assess your answers using the answer key card. 5. Analyze conceptually the posttest and apply what you have learned. 6. Enjoy studying!

PARTS OF THE MODULE •

Expectations - These are what you will be able to know after completing the lessons in the module.

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Pre-test - This will measure your prior knowledge and the concepts to be mastered throughout the lesson.

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Looking Back to your Lesson - This section will measure what learnings and skills did you understand from the previous lesson. Brief Introduction- This section will give you an overview of the lesson.

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Activities - This is a set of activities you will perform with a partner. Remember - This section summarizes the concepts and applications of the lessons. Check your Understanding - It will verify how you learned from the lesson. Post-test - This will measure how much you have learned from the entire module.

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LESSON

Relationship Marketing

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EXPECTATIONS As we study and immerse ourselves in “Principles of Marketing” in the process, it is necessary to know some Marketing Principles and Strategies. The module is subjected to discuss Module 2 – Define “Relationship Marketing” Most 1. 2. 3.

Essential Learning Competency: define “relationship marketing” identify and describe “relationship development strategies; relate the topic in real life experiences or in life Let us start your journey in learning thru a Pretest. Smile and Enjoy!

PRETEST Matching-Type.

Directions: choose appropriate letter in the box and write the letter in the space provided before the number. ____1. The salesperson phones the customer a short time after the sale to check whether the product is meeting the A. Reactive customer’s expectations. The salesperson also solicits from the customer any product improvement suggestions and B. Proactive any specific disappointments. This information helps the C. Partnership company continuously to improve its offering. D. Basic ____2. The company salesperson sells the product but does not E. Accountable follow up in any way. ____3. The company works continuously with the customer and with other customers to discover ways to deliver better value. ____4. 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. The salesperson sells the product and encourages the customer to call whenever he or she has any questions or problems.

Great, you are now finished answering the questions. You may request your facilitator to check your work. Congratulations and keep on learning!

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LOOKING BACK TO YOUR LESSON

MULTIPLE CHOICE. 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 b. Sales Concept d. None of the above ____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. None of the above

BRIEF INTRODUCTION 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. Relationship marketing requires that all the company’s departments 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.

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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. 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)

Characteristics of Relationship Marketing: 1. It focuses on the long-term rather than the short-term. 2. It focuses on partners and customers rather than on the company’s products. 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

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Learning Module for Principles of Marketing

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 - 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.

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Learning Module for Principles of Marketing

H. Product Market Expansion - the company’s employees must be ready to deliver beyond the company’s boundaries on customer demand.

ACTIVITIES Directions: Read carefully the following activities and answer the following questions asked for. Write your answer in yellow pad paper. Activity 1: Choose two brands and Identify how the following brands practice Relationship Marketing. Bench, Okada, SM, Petron, Mercury Drug Store, Puregold, Jollibee, ABS-CBN, Robinsons, & A water refilling station. Answer shall be written in a whole pad paper . Activity 2: Is Customer Relationship differ from “SUKI” of Filipino value system? Why?

REMEMBER

Relationship marketing is a facet of customer relationship management (CRM) that focuses on customer loyalty and long-term customer engagement rather than shorter-term goals like customer acquisition and individual sales. The goal of relationship marketing (or customer relationship marketing) is to create strong, even emotional, customer connections to a brand that can lead to ongoing business, free word-of-mouth promotion and information from customers that can generate leads. Relationship marketing is about forming long-term relationships with customers. Rather than trying to encourage a one-time sale, relationship marketing tries to foster customer loyalty by providing exemplary products and services. This is different than most normal advertising practices that focus on a single transaction; watch ad A and buy product B. Relationship marketing, by contrast, is usually not linked to a single product or offer. It involves a company refining the way they do business in order to maximize the value of that relationship for the customer.

CHECK YOUR UNDERSTANDING 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. 6

Learning Module for Principles of Marketing

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.

POST-TEST MULTIPLE CHOICE. Directions: Read each question carefully and choose the letter of the best answer in the box below. ____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. A. Prevents negative transition. B. Reactive C. Word of mouth marketing

C. Relationship marketing D. Identification with the company F. Customer relationship

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REFLECTIVE LEARNING SHEET During the current COVID-19 pandemic, global markets are severely disrupted. Businesses are forced to explore innovative solutions to overcome the growing negative implications of this unprecedented crisis. Due to various quarantine measures imposed by governments around the world, certain industries have been affected much more than others. As only businesses involved in the value chain of essential commodities are operational, the rest of the industries need to evaluate how they will respond to business unusual. The existing business continuity plans may not be sufficient to address the fast-changing variables presented by COVID-19.

Reflective Question. Can businesses still use relationship marketing despite this pandemic situation? Explain. _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________

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ANSWER KEY PRETEST:

1. 2. 3. 4. 5.

Accountable Basic. Partnership. Proactive. Reactive.

LOOKING BACK TO YOUR LESSON: 1. C

2.B

3. A

4. C

5.D

ACTIVITIES: Activity 1: choose 2 brands and Identify how the following brands practice Relationship Marketing. Bench, Okada, SM, Petron, Mercury Drug Store, Puregold, Jollibee, ABS-CBN, Robinsons, & A water refilling station. Answer shall be written in a whole pad paper. Answer. The learner will identify the brands practice Relationship Marketing and how the following brands practice relationship marketing. Activity 2: Is Customer Relationship differ from “SUKI” of Filipino value system? Why? Answer. Yes. “Suki” is a distinct Filipino value system which is rooted primarily in personal alliance systems based on commercial relationships In business: Though a suki relationship usually takes time and many business transactions to be solidified, suggesting a suki like relationship.

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. CHECK YOUR UNDERSTANDING: FILL-IN THE BLANKS (1) Relationship marketing (2) Proactive (3) Partnership (4) Customer relationship (5) Accountable. POSTTEST MULTIPLE-CHOICE 1. C 2. A

3. B

4.F 9

5. D

E-SITES To further explore the concept learned today and if it possible to connect the internet, you may visit the following links: link: https://www.youtube.com/watch?v=iBBje33-rtI source:https://www.pwc.com/ph/en/advisory/deals-advisory/respondingto-the potential- business-impacts -of-covid -19--deals-.html

REFERENCES 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, Jos...