12 SENIOR HIGH SCHOOL

PRINCIPLES OF
MARKETING
Quarter 3 – Module 2
Defining Relationship Marketing

NegOr_Q3_Principles of Marketing12_Module2_v2
Principles of Marketing – Grade 12
Alternative Delivery Mode
Quarter 3 – Module 2: Defining Relationship Marketing
Second Edition, 2021

Republic Act 8293, section 176 states that: No copyright shall subsist in any
work of the Government of the Philippines. However, prior approval of the
government agency or office wherein the work is created shall be necessary for
exploitation of such work for profit. Such agency or office may, among other things,
impose as a condition the payment of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand

names, trademarks, etc.) included in this module are owned by their respective
copyright holders. Every effort has been exerted to locate and seek permission to
use these materials from their respective copyright owners. The publisher and
authors do not represent nor claim ownership over them.

Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio

Development Team of the Module

Writer: Christine G. De Padua
Editor: Maria Acenith D. Pastor
Reviewer: Salvador G. Aguilar Jr
Layout Artist: Bb. Boy Jonnel C. Diaz
Management Team: Senen Priscillo P. Paulin, CESO V Rosela R. Abiera
Joelyza M. Arcilla, Ed. D, CESE Maricel S. Rasid
Marcelo K. Palispis, JD, Ed. D Elmar L. Cabrera
Nilita L. Ragay, EdD
Elisa L. Baguio, EdD

Printed in the Philippines by ________________________

Department of Education –Region VII Schools Division of Negros Oriental

Office Address: Kagawasan, Ave., Daro, Dumaguete City, Negros Oriental

Tele #: (035) 225 2376 / 541 1117
E-mail Address: [email protected]

NegOr_Q3_Principles of Marketing12_Module2_v2
Introductory Message

This Self-Learning Module (SLM) is prepared so that you, our dear

learners, can continue your studies and learn while at home. Activities,
questions, directions, exercises, and discussions are carefully stated for you
to understand each lesson.
Each SLM is composed of different parts. Each part shall guide you
step-by-step as you discover and understand the lesson prepared for you.
Pre-tests are provided to measure your prior knowledge on lessons in
each SLM. This will tell you if you need to proceed on completing this
module or if you need to ask your facilitator or your teacher’s assistance for
better understanding of the lesson. At the end of each module, you need to
answer the post-test to self-check your learning. Answer keys are provided
for each activity and test. We trust that you will be honest in using these.
In addition to the material in the main text, Notes to the Teacher are
also provided to our facilitators and parents for strategies and reminders on
how they can best help you on your home-based learning.
Please use this module with care. Do not put unnecessary marks on
any part of this SLM. Use a separate sheet of paper in answering the
exercises and tests. And read the instructions carefully before performing
each task.
If you have any questions in using this SLM or any difficulty in
answering the tasks in this module, do not hesitate to consult your teacher
or facilitator.
Thank you.

i
NegOr_Q3_Principles of Marketing12_Module2_v2
 I

This module was designed to provide with fun and meaningful opportunities
for the guided and independent learning at our own pace and time. You will be
enabled to process the contents of the learning resource while being an active learner.

The module is subjected to discuss the Module 2 which focuses on the

discussion about Relationship Marketing. Marketing prepares students to value its
importance and relate it in real life experiences.

1
NegOr_Q3_Principles of Marketing12_Module2_v2
 I

Pre-assessment:
I. Identification.

Directions: Choose appropriate letter in the box and write the letter of your choice
in your activity notebook.

A. Reactive D. Basic
B. Proactive E. Accountable
C. Partnership
D.
1. 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.
2. The company salesperson sells the product but does not 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.

II. Multiple Choice

Directions: Read each question carefully and choose the letter of the best answer.
1. It is a benefit of relationship marketing where sellers should maintain good attitude to the
buyers.
A. Delivery and meeting expectations
B. Word-of-mouth marketing
C. Repeat Business
D. Reduced marketing cost
2. It is a strategy designed for customer loyalty, interaction, and long-term engagement to be
fostered.
A. Customer Relationship C. Relationship Marketing
B. Marketing D. None of these are correct.
3. Another benefit of relationship marketing is where trust and loyalty go hand in hand and it
is super beneficial for all business.
A. Understanding customer characteristics C. Prevents negative transition
B. Product Market Expansion D. Identification with the company

2
NegOr_Q3_Principles of Marketing12_Module2_v2
4. If the company knows what its customers’ needs are, it will help reduce wastage due to
trial and error methods.
A. Delivery and meeting expectations C. Repeat Business
B. Understanding customer characteristics D. Prevents negative transition
5. The following are benefits in developing and implementing customer relationship except
one.
A. Innovation C. Customer Feedback
B. Customer Profile D. Customer Profitability
6. The company’s employees must be ready to deliver beyond the company’s boundaries on
customer demand.
A. Product Market Expansion C. Repeat Business
B. Identification with the company D. None of these are correct.
7. Customer relationship involves the following except one.
A. Marketing communications C. Sales Support
B. Technical assistance D. Buying Patterns
8. The following are characteristics of relationship marketing except one.
A. It focuses on partners and customers rather than on the company’s products.
B. It relies on cross-functional teams rather than on departmental-level work.
C. It relies more on talking and learning than on listening.
D. It focuses on the long-term rather than the short-term.
9. The following are levels of relationships that can be formed with customers who have
purchased a company’s product except.
A. Proactive C. Accountable
B. Active D. Reactive
10. The salesperson solicits from the customer any product improvement suggestions and any
specific disappointments.
A. Accountable C. Partnership
B. Basic D. Reactive

3
NegOr_Q3_Principles of Marketing12_Module2_v2
 ’s In

Task 1: 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. It 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

’s
New
Task 2
Answer briefly the following questions. Write your answers on your activity
notebook.

Why is there a need for a company to practice relationship marketing?

4
NegOr_Q3_Principles of Marketing12_Module2_v2
 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.
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.

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.

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.

5
NegOr_Q3_Principles of Marketing12_Module2_v2
 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

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
❖ 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.

6
NegOr_Q3_Principles of Marketing12_Module2_v2
 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.
H. Product Market Expansion - the company’s employees must be ready to deliver
beyond the company’s boundaries on customer demand.

’s More

Task 3
Activity 1: Is Customer Relationship differ from “SUKI” of Filipino value 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.

7
NegOr_Q3_Principles of Marketing12_Module2_v2
 I Have Learned

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.

I Can Do

Task 4
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.
1. _____________________the salesperson or others in the company phone the customer
from time to time with suggestions about improved product use or helpful new products.
2. _____________________ the company works continuously with the customer and with
other customers to discover ways to deliver better value.
3. _____________________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.
4. _____________________ 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.

8
NegOr_Q3_Principles of Marketing12_Module2_v2
 I. Multiple Choices. Directions: Read each question carefully and choose the letter
of the best answer in the box below.

A. Prevents negative transition. G. Basic

B. Customer Service H. Relationship Marketing
C. Reactive I. Accountable
D. Identification with the company J. Proactive
E. Word of mouth marketing K. Partnership
F. Customer relationship

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. It 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.
6. The company works continuously with the customer and with other customers to discover
ways to deliver better value.
7. It is an interaction with current customers and potential ones.
8. The salesperson or others in the company phone the customer from time to time with
suggestions about improved product use or helpful new products.
9. The company salesperson sells the product but does not follow up in any way.
10. The salesperson phones the customer a short time after the sale to check whether the
product is meeting the customer’s expectations.

9
NegOr_Q3_Principles of Marketing12_Module2_v2
 II. TRUE or FALSE
Directions: Write T if the Statement is True, and write F if the statement is False.
1. According to Serrano, Relationship marketing involves creating, maintaining and
enhancing strong relationships with customers and other stakeholders.
2. Relationship marketing requires that all the company’s departments work together
with marketing as a team to serve the customer.
3. Customer relationship is the development of an ongoing connection between a
company and its customers.
4. Delivery and meeting expectations is where the company’s employees must be ready
to deliver beyond the company’s boundaries on customer demand.
5. 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.

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. Write your answers your activity notebook

________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
____________________________________________________________.

10
NegOr_Q3_Principles of Marketing12_Module2_v2
NegOr_Q3_Principles of Marketing12_Module2_v2
11
Pre-Assessment:
I. MATCHING TYPE II. MULTIPLE CHOICE
1. E 1. C 6. A
2. D 2. C 7. D
3. C 3. C 8. C
4. B 4. A 9. B
5. A 5. B 10. A
WHAT’S IN – TASK 1
1. C 2.B 3. A 4. C 5.D
WHAT’S NEW – TASK 2
Answers may vary
WHAT’S MORE- TASK 3
Activity 1: 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.
WHAT I CAN DO- TASK 4
FILL-IN THE BLANKS
(1) Relationship marketing (2) Proactive (3) Partnership
(4) Customer relationship (5) Accountable.
ASSESSMENT
I.MULTIPLE-CHOICE II.TRUE OR FALSE
1. E 4. F 7. H 10. I 11. F (Gilaninia) 14. T
2. A 5. D 8. J 12. T 15. F
3. C 6. K 9. G 13. T (Product)
Market
Expansion)
References

Book
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, Josiah (1996). Contemporary Marketing Strategy in the Philippine Setting,
Manila: National Bookstore
Medina, Robertos G. (2008). Principles of marketing revised edition REX Bookstore.
Williamson, Will (2020). Traditional Vs Contemporary Marketing Strategies.
Retrieved from https://blog.jdrgroup.co.uk/digital-prosperity-blog/traditional-vs-
contemporary-marketing-strategies

Website

Filmore, Kenneth. n.d. https://www.zabanga.us/sales-promotion/relationship-

marketing.html (accessed December 15, 2021).

Pamtree MLM App. n.d. https://www.youtube.com/watch?v=y9z-ULngCRk (accessed

December 15, 2021).

12
NegOr_Q3_Principles of Marketing12_Module2_v2