Relationship Marketing and Activity2

RELATIONSHIP MARKETING – ACTIVITY#
Most Essential Learning Competency:

1. define “relationship marketing”
2. identify and describe “relationship development strategies;
3. relate the topic in real life experiences or in life
PRETEST
Matching-Type. (WRITE YOUR ANSWER IN YOUR NOTEBOOK)
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 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
A. Reactive
B. Proactive
C. Partnership
D. Basic
E. Accountable
B
RIAccording 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. T
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
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.
H. Product Market Expansion - the company’s employees must be ready to deliver

beyond the company’s boundaries on customer demand.
Directions: Read carefully the following activities and answer the following questions
asked for. Write your answer in your notebook. For checking on THURSDAY FEB.28,2024.
Minimum of 5 sentences and maximum of 10 sentences.
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?
Relationship
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RELATIONSHIP MARKETING – ACTIVITY#

Most Essential Learning Competency:

Matching-Type. (WRITE YOUR ANSWER IN YOUR NOTEBOOK)

Forbes.com defined Relationship marketing is a strategy designed for customer

Characteristics of Relationship Marketing:

Benefits in developing and implementing customer relationship

BENEFITS OF RELATIONSHIP MARKETING

A. Understanding customer characteristics; - the company can segregate its

a. Increasing customer base - satisfied existing customer is 100% more likely to

H. Product Market Expansion - the company’s employees must be ready to deliver

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