Maryland F. Mendoza

Most Essential Learning Competency:
Define and understand marketing
• principles
• goals
• approaches
(ABM_PM11-Ia-b-1)

What is Marketing?

“Marketing is the activity, set of
institutions, and processes for
creating, communicating,
delivering, and exchanging
offerings that have value for
customers, clients, partners, and
society at large.”
- American Marketing
Association
What is Marketing?

Concepts of Marketing
1. Marketing must be Customer Oriented.
2. Marketing must be Coordinated Activities
3. Marketing must be able
to achieve the Performance
Target Goals and
Objectives

The Goals of Marketing
1. Maximize the Consumption of Goods
2. Maximize Consumer Satisfaction
3. Maximize Choice of Goods or Service
4. Maximize the Quality of Life

Marketing principles or principles of marketing are agreed-upon
marketing ideas companies use for an effective marketing strategy.
They are the principles upon which we build product promotion
strategies. We can use the marketing principles for the effective
promotion of either goods or services.

Product
In this category, we
focus on the benefits
and features of the
product. We should also
consider product
interaction.
Place
Where the manufacturer makes the
product and where people buy it
can significantly influence its price.
Location can also affect customer
service and how quickly you can
respond to orders and customer
requests.
Price
The price of your product can
determine many things, including
your profit margin and investments
for future growth. Price also
determines what kind of discounts
or special deals you can offer.
Promotion
If you want people to buy your
product, you must make sure
they know about it. Among the
four marketing principles,
promotion is one that many
people do not take seriously
enough.

What have you learned?

Watch the video. Online marketing vs traditional marketing then
write the difference between traditional versus online marketing
for Product, Price, Place and Promotion.
https://www.youtube.com/watch?v=d4aijRJFOq4&t=9s

Most Essential Learning Competency:
define “relationship marketing”
(ABM_PM11-Ic-d-5);
explain the value of customers
(ABM_PM11-Ic-d-6)

Relationship marketing

 involves creating, maintaining, and enhancing strong relationships
with customers and other stakeholders.
 is oriented more towards the long term
 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.
Relationship marketing
The goal is to deliver long-term value to
customers and the measure of success is long-
term customer satisfaction

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.
- Forbes.com

Five different levels of relationships that can be formed with customers who have purchased a
company’s product
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.

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.

7 Benefits of Customer Relationship Management
1. Customer Service and Retention
One of the main benefits of CRM is
improved relationships with your
customers. A CRM system manages all
your business contacts and stores
important information about them across
all channels, including demographics,
purchase history, and previous
communications.
Great customer service builds customer loyalty.

2. Increased Sales
When customers keep coming back, your sales will keep
increasing. CRMs help you build your sales pipeline by
streamlining the sales process and automating the main
It allows you to analyze all of your sales data and store it in
one centralized place, which can be accessed by anyone who
needs it.
3. Analytics
Analytics are essential to understanding customer behavior.
There is plenty of customer data to collect, but do you and
your employees understand what it means and how to use
it? CRM systems will have built-in analytics that are able to
contextualize customer data. These metrics, such as click-
through rates, bounce rates, and demographic data, can
demonstrate the success of a campaign and highlight
opportunities for further optimization.

4. Higher Productivity
Using CRM software with marketing automation tools can free up your
employees by handling more mundane menial tasks. Employees can
focus on more human-centered work and building customer
relationships. It also ensures tasks are completed and don’t fall through
the cracks. Many CRMs have dashboards for your business processes
workflows. Using these features, you will be able to see where your
workflow can improve.
5. Cultivating New Leads
Customer relationships thrive when they are
nurtured. Nurturing requires good communication.
There can be many steps in the communication
process along with many opportunities. Being able
to alert your employees when it is time for them to
reach out to a prospect and track every interaction
is a massive advantage for your business.

6. Better Marketing
CRM allows you to create more targeted marketing aimed
at your customers’ specific needs. It allows your business
cultivate a personal approach to your communications,
you will also be able to develop new products and services
that your customers actually need and want.
7. Increased Profitability
Using a CRM allows you to identify which customers
are profitable and which are not. This knowledge
helps you deal with each segment in the most cost-
effective manner. Not only will you be able to
optimize your costs by doing this, but you will also be
able to increase profitability by being able to focus on
your most profitable customers.

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.

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.

9 Relationship Marketing Strategies and Tools
1. Networking - Networking, online and off,
can be a powerful relationship marketing
technique. This isn’t just for job seekers! Think
about the interests that you have as a business,
and then join groups that share your affinities.
2. Cherish Each Customer - Not just in the way
that every company says that they do. Make sure
that every interaction you have with your
customers shows them that they are valued.

9 Relationship Marketing Strategies and Tools
3. Listen to Your Customers - Listen to your
customers! Every business says they do, but not all
follow through or apply what they’ve heard. Even
listening and responding to compliments can be
beneficial. People love knowing they’ve been heard.
Even complaints can be a blessing in disguise.
People often just want someone to share their
concerns with.
4. Build a Brand Identity - A memorable brand
will make it easy for customers to find you and
your product(s). Customers will gravitate toward
what they find that is memorable.

9 Relationship Marketing Strategies and Tools
5. Give Your Customers Free Information -
What’s better than free? Not much. Your customers
are seeking information about your product(s).
They have questions. Give them answers! Identify
the topics and interests your customers have.
6. Loyalty Rewards - Loyalty programs
encourage shoppers to return to stores where
they frequently make purchases.
7. Communicate Often - Relationships are
based on communication. Your customers and
users want to communicate with you, so be sure to
communicate with them often. Relationship
marketing works well when you strive to be there
for your customers.

9 Relationship Marketing Strategies and Tools
8. Special Events - Holding a special event
for your existing or prospective customers is
a great way to build relationships.
9. Face-To-Face Time - Like a lot of what we’ve
been mentioning, it comes back to interactions.
While electronic communication is great, and often
preferred, having a face-to-face meeting can help
the customer feel valued.

• Promptness: Promises for delivery of products must be on time. Delays and
cancellations of products should be avoided.
• Politeness: Politeness is almost a lost art. Saying 'hello,' 'good afternoon,' 'sir',
and
'thank you very much' are a part of good customer service. For any business,
using good manners is appropriate whether the customer makes a purchase or
not.
• Professionalism: All customers should be treated professionally, which means
the use of competence or skill expected of the professional. Professionalism
shows the customer they're cared for.
• Personalization: Using the customer's name is very effective in producing
loyalty.
Customers like the idea that whom they do business with knows them on a
personal level.

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.
Remember

Read each statements or
questions below carefully
and write the correct answer.

1. It is not just in the way that every company says that they do. Make
sure that every interaction you have with your customers shows them
that they are valued.
2. Encourage shoppers to return to stores where they frequently make
purchases.
3. Like a lot of what we’ve been mentioning, it comes back to
interactions. While electronic communication is great and often
preferred, having a face-to-face meeting can help the customer feel
valued.
A. Professionalism
B. Loyalty Rewards
C. Face-To-Face Time
D. Customer Service
E. Cherish each Customer

4. The act of taking care of the customer's needs by providing and delivering
professional, helpful, high quality service and assistance before, during,
and after the customer's requirements are met.
5. All customers should be treated professionally, which means the use
of competence or skill expected of the professional. Professionalism shows
the customer they're cared for.
A. Professionalism
B. Loyalty Rewards
C. Face-To-Face Time
D. Customer Service
E. Cherish each Customer

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.

1. It is almost a lost art. Saying 'hello,' 'good afternoon,' 'sir',
and'thank you very much' are a part of good customer
service. For any business, using good manners is
appropriate whether the customer makes a purchase or not.
2. It is the relationship between benefits and
the costs including money, stress, and time
to sacrifice that is necessary to get those
benefits.

3. It is the act of taking care of the customer's needs
by providing and delivering professional, helpful, high
quality service and assistance before, during, and after
the customer's requirements are met. Customer service
is meeting the needs and desires of any customer.
4. It includes activities aimed at developing and
managing trusting and long-term relationships with
larger customers.
5. Relationships are based on communication. Your
customers and users want to communicate with
you, so be sure to communicate with them often.