Grade 12

Principles of Management
Week 3 – Module 3
“RELATIONSHIP MARKETING”
THE VALUE OF CUSTOMER
 DEPARTMENT OF EDUCATION
REGION VII
DIVISION OF MANDAUE

SUPPLEMENTARY LEARNING MODULE FOR

SENIOR HIGH SCHOOL LEARNER

Grade level: Grade 11

Specialized Subject: Principles of Marketing
Semester : First

LEARNING COMPETENCY

(WEEK 3-5) MODULE 3

DEFINE “RELATIONSHIP MARKETING” – ABM_PM11-Ic
EXPLAIN THE VALUE OF CUSTOMER – ABM_PMII Ic-d6
 INTRODUCTION

Retaining customer is difficult, but attracting new ones is even more

of a challenge. It is therefore important for companies to develop effective
customer relationship management in order to inspire loyalty from
customers. Every customer should be valued and every complaint should be
addressed effectively. Employees should also be valued because their
satisfaction would redound to better performance, which would further
improve customer service.

LESSON OBJECTIVES:
• At the end of the lesson the students will be able to
• Discuss customer relationship management
• Discuss relationship marketing as an aspect of customer
relation management.
• Calculate customer lifetime value
• Discuss examples of customer service in Philippine business.

The impact of customer satisfaction on a business means that the

customer-
Oriented firm must always strive to give satisfaction to its customers. In a
customer oriented firm, the frontline, middle management and top
management are all customer oriented. This means that all employees, even
the company president, should meet with the customers. Treat each one
with respect and provide with proper service. All members of the firm must
adopt a customer-oriented perspective and strive to establish it as the
culture of the organization.
The following figure shows the customer-oriented pyramid.

HAPPY EMPLOYEES MAKE HAPPY CUSTOMERS

Effective customer service stars with the frontline people.
“Frontliners” is the term used to describe people who work on the frontline
of a business operation, primarily in customer service, are the first to interact
with customers and are expected to be the ambassadors ot the business.
The following are the examples of frontline employees in a business
world.
1. CUSTOMER SERVICE The term employees is most commonly
applied to customer service representatives who handle customers’
orders, inquiries, cancellation and complaints.
2. SALES
The primary role of sales is to engage customers, close sales and
maintain
Relationship to extend customer lifetime value as such spends more time
with customers.
3. MARKETING
Marketing people commonly meet customer such as lead users
or market research units may engage customer to provide services or
develop products.
4. BUSFINESS UNITS
Business units may engage customers to provide service or
develop products.
5. CONSULTANTS
Consultants who advise or perform work for customers.

ACTIVITY 1

Write on a one(1) whole sheet of paper an essay about “ A happy

employee makes a happy customer

MARKETING AND CUSTOMER RELATIONSHIPS

Once the business is in the market for years, there is another challenge that
is it has to face and that is a continued patronage from its customers
A customer is a person or organization that transacts with a
businessperson or business organization to buy goods or services for monetary or
other valuable considerations. Acquiring and keeping customers is the end goal of
any businesses because consumers creates demand. A happy and satisfied
customer shares his experiences with his friends and relatives, and this could
create additional sales for a business. When choosing a product, the customer
considers purchase decisions. What does the customers need? This is where the
need for customer service arise. A customer services is the process of ensuring
customer satisfaction with a product or a service. It involves activities that are
designed to enhance customer satisfaction. Although most customer services are
performed by a company representative, technology provides alternatives. Help
desk, contact centers, touch-tone telephones and smart phones capabilities can
address product problem and customer concerns 24 hours a day, 7 days a week.
Social media can also be a platform to provide for customers feedback.

CUSTOMER RELATIONSHIP MANAGEMENT(CRM)

Refers to the development of strategies to establish and sustain desirable
customer relationships. The rationale for CRM is the recognition that companies
can sustain long term profitability by attracting and maintaining their most valuable

ACTIVITY 2
LIST 10 POPULAR CUSTOMER SERVICE PRACTICE IN THE PHILIPPINES AND PRACTICING
ORGANIZATION.
WRITE YOUR ANSWER IN A ONE WHOLE SHEET OF PAPER.
Example
Customer service practice Practicing Organization
Free delivery Restaurant and fast food chains

customers. One important aspect of customer relationship management is

relationship marketing, a type of marketing which focuses on establishing and
maintaining customer loyalty. Relationship marketing strives to:
1. Understand customers needs
2. Deepen the buyer’s trust
3. Enable customers to participate in the creation of value
4. Enhance cooperation and mutual dependence
5. Build satisfying exchange relationships.
CUSTOMER LIFETIME VALUE(CLV)
It is the forecasted sales of profits that a company can derive from the entire
span of its future relationship with a particular customer.
END OF THE LESSON TEST:

Direction: Choose the letter of the best answer in a one whole sheet of paper.

1. A person or organization that transact with a business organization to buy goods

or services for a monetary or other valuable consideration.
a. Dentist c. carpenter
b. Lawyer d. customer
2. It is the end goal of any business, because consumers creates demand.
a. Investing
b. Lending to customer
c. Acquiring and keeping a customer
d. None of the above
3. It is a term used to describe people who work on the frontline of a business
operation, primarily in customer service and are the first to interact with
customers.
a. Customers c. office worker
b. Housewife d. frontliners
4. All of the following are examples of frontline employee in a business world ,
EXCEPT
a. Sales c. Marketing
b. Customer Service d. Doctors
5. Employee satisfaction is ensured by the following, EXCEPT:
a. Better working environment
b. Longer working hours
c. Good social relationship among employers
d. Good compensation package
6. It is the process of ensuring customer satisfaction with a product or a service.
a. Repair service
b. Customer service
c. Church service
d. Quality service
7. It is the type of marketing which focuses on establishing and maintaining customer
loyalty.
a. Relationship marketing
b. Customer satisfactory marketing
c. Loyalty insurance
d. Customer relations
8. It is the forecasted sales of profits that a company can derive from the entire span
of its future relationship with a particular customer.
a. Customer equity
b. Customer lifetime value
c. Net customer sales
d. Customer total value
9. All of the above are characteristics of relationship marketing, EXCEPT
a. Understand customer needs
b. Build satisfying exchange relationship
c. Enhance competition and independence
d. Deepen the buyer’s trust
10. This refers to strategies intended to establish and sustain desirable customer
relationship.
a. Relationship marketing
b. Customer satisfaction
c. Customer relationship management
d. Customer service management
II. Answer the following questions concisely.
1. Why is it important for marketer to consider customer expectations and
satisfaction?
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
2. Why should a business adopt a customer service strategy?

GOD BLESS!

REFERENCES:

PRINCIPLES OF MARKETING for Senior High School

By: Danilo M Te, DBA, MBA
Rodilina Baltazar-Marte, MBA, MAEEE
Donna Vida M. Abrina, MBA
Published by C&E Publishing Inc
2018 Edition
PINCIPLES OF MARKETING
By. Real C So
Oscar G. Torres
Angeles A, De Guzman, DBA
Published by VIBAL Group
Government textbook

DISCLAIMER

I do not own or license any copyright in the texts, images, photographs, graphics and
other content provided in this module. This module is solely for non-commercial,
informational and educational purposes. There is no intention on my part to claim ownership
as the contents or make profit out of this module.

Prepared by: Sheila O. Pielago

Teacher !
Canduman National High School
 DEPARTMENT OF EDUCATION
REGION VII
DIVISION OF MANDAUE

NIMFA D. BONGO, EdD, CESO V

Schools Division Superintendent

ESTELA B. SUSVILLA, EdD, CESO VI

Assistant School Division Superintendent

JAIME P. RUELAN, EdD

Chief Curriculum Implementation Division

ISMAELITA DESABELLE, EdD

Education Program Supervisor (LRMDS)

KENN NORWAY B. MARZADO, EdD

Education Program Supervisor - EPP/TLE

SHEILA O. PIELAGO
Writer/Illustrator/Layout Artist