Archdiocese of Tuguegarao

TUGUEGARAO ARCHDIOCESAN SAN VICENTE INSTITUTE

OF SOLANA
SCHOOL SYSTEM 204 Bonifacio St., Centro, Solana
SCHOOL SYSTEM (078) 824-8389/ 824-8366

GRADE 11 – ABM| PRINCIPLES OF MARKETING

CHAPTER 2
BUILDING CUSTOMER LOYALTY THROUGH CUSTOMER SERVICE

LESSON 1: RELATIONSHIP MARKETING

LESSON 2: SERVICE MARKETING

LESSON 1: RELATIONSHIP MARKETING

RELATIONSHIP MARKETING
➢ The process of building and maintaining profitable customer relationships by delivering superior
customer value and satisfaction ensuring brand loyalty.

CUSTOMER LOYALTY (BRAND LOYALTY)

➢ Arises when customer has had several positive experiences with a company’s products and
services and thus is motivated to continue to support the company and patronize its products and
services.

LEVELS OF RELATIONSHIP MARKETING

The company has already built a loyal group of

PARTNERSHIP MARKETING customers who can help in improving its
performance and offerings.

The company works closely with a group of regular

PROACTIVE MARKETING customers who provide constructive feedback for
the improvement of the product or service.
The salesperson voluntarily contacts the customer to
ACCOUNTABLE MARKETING ensure that the product is in perfect condition and
asks if it met the latter’s expectations.
The salesperson tells the customer that he or she
REACTIVE MARKETING can be contacted to answer any inquiry about the
product or service.
It also called direct sales and the most basic level of
BASIC MARKETING interaction between the company and customer.
The salesperson takes charge of selling products or
services to consumers.

CUSTOMER VALUE
➢ The satisfaction derived from what a customer may experience or expect to experience by
choosing a particular action relative to the cost of that action.

• THE COST
- Refers to anything that can be given up to receive the desired product or service, which
can be in the form of money, time, knowledge, data or others.

-VERITAS-
Enter with Gladness…Learn and Share God’s Goodness!
 Archdiocese of Tuguegarao
TUGUEGARAO ARCHDIOCESAN SAN VICENTE INSTITUTE
OF SOLANA
SCHOOL SYSTEM 204 Bonifacio St., Centro, Solana
SCHOOL SYSTEM (078) 824-8389/ 824-8366

• THE ACTION
- Can be a purchase, a visit, an order, or a sign up.

LEVEL OF CUSTOMER VALUE

1. BASIC AND EXPECTED LEVELS

▪ Includes the basic requirements of conducting a business.

2. DESIRED CUSTOMER VALUE

▪ This involves what the customers want from the purchase or service experience.

3. UNANTICIPATED CUSTOMER VALUE

▪ It pertains to an unexpected purchase or service experience that may go beyond what
customers desire.

TYPES OF CUSTOMERS

1. STRANGERS
▪ Customers whose needs do not fit the company’s offering. The company does not need to
invest and exert effort to win them.

2. BUTTERFLIES
▪ They are not loyal to a specific brand because they keep on looking for the best deals
which may lead to patronizing other brands.

3. TRUE FRIENDS
▪ Have needs that match the company’s offerings. They make repeat purchase and
patronize the brand so long as it satisfies their needs.

4. FREELOADERS
▪ They are loyal but not profitable because of the limited fit between their needs and the
company’s offerings.

RELATIONSHIP DEVELOPMENT STRATEGIES

1. Communicate with customers frequently and effectively.

2. Offer customer rewards.
3. Conduct special events and provide sponsorships.
4. Enhance customer service.
5. Utilize languages to reach a wider customer base.

CUSTOMER SERVICE IN THE PHILIPPINE BUSINESS ENTERPRISE

1. EMAIL AND SMS

2. SOCIAL NETWORKING SITES
3. LIVE CHAT SUPPORT
4. MOBILE APPLICATIONS

-VERITAS-
Enter with Gladness…Learn and Share God’s Goodness!
 Archdiocese of Tuguegarao
TUGUEGARAO ARCHDIOCESAN SAN VICENTE INSTITUTE
OF SOLANA
SCHOOL SYSTEM 204 Bonifacio St., Centro, Solana
SCHOOL SYSTEM (078) 824-8389/ 824-8366

SERVICE MARKETING
SERVICE
➢ An act that is provided by a party that creates value and provides benefits to the other party.

CHARACTERISTICS OF SERVICE

1. INTANGIBLE
▪ Does not have a physical manifestation that can be seen, touched and described
quantitatively.

2. INSEPARABLE
▪ Involves simultaneous production and consumption, so there is outright feedback.

3. PERISHABLE
▪ Because they are intangible, rendered services cannot be stored or returned.

4. HOMOGENOUS
▪ The service in itself is the same but the way it is provided may differ from time to time.

COMPONENTS OF SERVICE MARKETING

1. Products and its elements

2. Time and place
3. Process
4. Quality service or productivity
5. People or service providers
6. Promotion
7. Physical awareness
8. Price

-VERITAS-
Enter with Gladness…Learn and Share God’s Goodness!
 Archdiocese of Tuguegarao
TUGUEGARAO ARCHDIOCESAN SAN VICENTE INSTITUTE
OF SOLANA
SCHOOL SYSTEM 204 Bonifacio St., Centro, Solana
SCHOOL SYSTEM (078) 824-8389/ 824-8366

WORKSHEET 1:

Interview any person in your compound that has a small business (sari – sari store may do,
or any business) and ask them the BEST PRACTICES they do in getting along with their
customers. Ask them about some good and bad experiences they had with their customers
and how they have dealt with them. Record your interview and upload it in this
FB PAGE: GRADE 11ABM PRINCIPLES OF MARKETING (40 pts.)

After interviewing, record yourself giving an insight about the interview you had.

TAKE NOTE:
✓ There is no need for you to get out of your barangays/compounds to make the
interview. You can interview your close relatives that has a small business.

✓ During the interview, please follow STRICTLY the protocols for Covid-19 such
as wearing of your face mask, face shield and social distancing. Without doing
so, your scores will NOT be recorded.

-VERITAS-
Enter with Gladness…Learn and Share God’s Goodness!
 Archdiocese of Tuguegarao
TUGUEGARAO ARCHDIOCESAN SAN VICENTE INSTITUTE
OF SOLANA
SCHOOL SYSTEM 204 Bonifacio St., Centro, Solana
SCHOOL SYSTEM (078) 824-8389/ 824-8366

WORKSHEET 2:

In availing of a particular service, when do you say that you got your money’s worth or that
it is sulit?
Reflect on the time when you availed of a service and felt that you did not get your money’s
worth. Share your experie

-VERITAS-
Enter with Gladness…Learn and Share God’s Goodness!