Principles of Marketing: Senior High School
Principles of Marketing: Senior High School
SCHOOL
Principles of Marketing
Supplementary Materials
(Module 2)
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PRINCIPLES OF MARKETING
(Localized Module)
3rd Quarter – Module 2
Week 3 – Week 4
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For the learner:
Welcome to the Introduction to Philosophy of the Human Person Alternative Delivery Mode (ADM)
Module on Principles of Marketing.
The hand is one of the most symbolized part of the human body. It is often used to depict skill, action
and purpose. Through our hands we may learn, create and accomplish. Hence, the hand in this learning
resource signifies that you as a learner is capable and empowered to successfully achieve the relevant
competencies and skills at your own pace and time. Your academic success lies in your own hands!
This module was designed to provide you with fun and meaningful opportunities for guided and
independent learning at your own pace and time. You will be enabled to process the contents of the
learning resource while being an active learner.
What I Need to Know This will give you an idea of the skills or competencies
you are expected to learn in the module.
What I Know This part includes an activity that aims to check what
you already know about the lesson to take.
What’s In This is a brief drill or review to help you link the current
lesson with the previous one.
What’s New In this portion, the new lesson will be introduced to you in
various ways such as a story, a song, a poem, a problem
opener, an activity or a situation.
What Is It This section provides a brief discussion of the lesson. This aims to
help you discover and understand new concepts and skills.
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Assessment This is a task which aims to evaluate your level of
mastery in achieving the learning competency.
1. Use the module with care. Do not put unnecessary mark/s on any part of the module. Use a
separate sheet or the prescribe answer sheet of your teacher in answering the exercises.
2. Do not forget to answer What I Know before moving on to the other activities included in the
module.
4. Observe honesty and integrity in doing the tasks and checking your answers.
6. Return this module to your teacher/facilitator once you are through with it.
7. If you encounter any difficulty in answering the tasks in this module, do not hesitate to consult
your teacher or facilitator. Always bear in mind that you are not alone.
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Week 3
What I Know Day 1-2
Direction: Multiple Choice. Read the sentences and choose the correct answer that describe in the
sentences. Write your answer in your answer sheet.
1. Type of customers that purchase goods (raw materials and industrial products) or render
services (manpower and transportation) for the production of their products or services.
a. consumer market c. business market
b. government market d. international market
2. A set of activities designed to develop and manage customer loyalty and long-term customer
relationship.
a. customer relationship management c. value of customer
b. Relationship marketing d. customer satisfaction
3. The process of dividing the entire market of consumers into particular groups whose likeness
makes them a market for specific products or services, which satisfy their distinct needs.
a. customer value c. market segmentations
b. basic relationship d. frequency marketing program
4. The overall process of building and maintaining profitable customer relationship by delivering
superior customer value and satisfaction.
a. customer relationship management c. development marketing
b. relationship marketing d. loyalty management
5. Type of customers that purchases commodities or services to provide public services.
a. media markets c. public market
b. government markets d. international market
6. A relationship development strategy that provides loyal customers who regularly buy goods or
services in big amount with rewards in a form of points, discount, freebies, coupons, and gift
certificates.
a. frequency marketing program c. sales promotional strategy
b. full-part partnership d. customer relations program
7. Type of customers that purchases products or services that they resell and gain profit from it.
a. industrial markets c. business markets
b. commercial markets d. reseller markets
8. A relationship development strategy that provides sponsorships for clubs, which give special
benefits to members and from communities.
a. membership marketing strategy c. consumer relationship program
b. club marketing program d. sponsorship strategy
9. The perceived performance of the product in connection with the expectations of the customer.
a. customers expectation c. customer value
b. customer satisfaction d. customer attention
10. A relationship development strategy that establishes a relationship with their customers
through brand advertisements, publicities, public relations activities and social media.
a. club marketing program c. basic relationship
b. customer relationship program d. promotional strategy
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Week 3-4Relationship: Customer Service
Customer
With the fast changing trends in the market and the mushrooming of new products that offer superior
value to customers, where competition is set to the highest level, one factor remains basic ingredient to
attain loyalty of the market that is having a excellent customer relationship through a responsive
customer service.
The learners should understand that amid the stiff competition if the market, superior product offerings
are not solely the way to attain the marketing goals. It should go along with the total customer service
strategy to strengthen the relationship between the company and the customers.
Thus, this lesson will give emphasis on the importance of Relationship Marketing in attaining and
maintaining the loyalty of the customers. It will focus on the value of the customers and the
development relationship strategies. Moreover, this lesson will also provide the learners scenario of
successful customer service strategy.
Companies with a serious focus on customers and have a firm commitment to marketing will understand
the essence of having Customer Relationship Management or CRM in satisfying the needs of the
customer.
Nowadays, having a good relationship with the customer and offering great value are both important
elements in attaining and maintaining a good position in the market. Most of the customers today really
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values their money spent for products or services and reviews their relationship with them. Hence, it is
essential for the learners to know the concept of CRM and their function in the marketing process.
What Is It
As defined by Kotler and Armstrong, CRM is “the overall process of building and maintaining profitable
customer relationship by delivering superior customer value and satisfaction.”
Marketers believe the CRM helps the company in gaining, maintaining and increasing market share. That
is why it is one of the greatest important concepts that the learners should understand.
The very foundation of a lasting customer relationship relies on the customer value and customer
satisfaction. It has been said that loyal customers are satisfied customers. If a brand satisfies the needs
of the customer in terms of the value of the product and quality of the service, there is a great possibility
that the customer will give his or her loyalty to the brand. And is this be the case, the company will
enjoy a larger share of the market.
However, in reality, there are many competing brands in the market that the consumers are facing every
day. Therefore, getting the attention and retention of the customers is not an easy task. Customers pick
products, which they think offer utmost value. This process is called customer-perceived value.
Consumers may subjectively see the value and cost of the product. Their selection of products and
services will be based on their individual value perspective. Example, not all mothers think the same way
in choosing a detergent soap. Some may pick soaps that have reasonable value at low price. And some
may pick soaps that are expensive, thinking that they will get more value if they will pay more.
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Customer satisfaction, on the other hand, is based on the perceived performance of the product in
connection with the expectations of the customer. This means that if the performance of the product
does not meet the expectation of the customer, he or she will be dissatisfied and may switch to the
other brands that will satisfy his or her expectations.
The learners of marketing should remember that company must provide products or service that will
meet both the perceived value and performance of the customers to achieve total satisfaction.
Another concept in customer relationship that learners should understand is the concept of Relationship
Marketing, which is one of the aspect of CRM.
The concept of relationship marketing is very vital in getting customers loyalty and establishing and
maintaining a long lasting relationship. Hence, relationship marketing is a set of activities designed to
develop and manage customer loyalty and long-term customer relationship.
The relationship marketing teaches companies and the customers to build trust by having interactions,
which result in lasting relationship. In this concept, both the buyer and seller are essential components
in the process. The seller should make the customer feel that his or her needs are important and should
take care. Moreover, even after sales, the seller must continue to provide the client with information
and service.
Hence adopting the concept of relationship marketing, it is wrong to say that the process ends after a
customer buys the product. Feedback and follow-through using related products and service are
outstanding.
For example, after selling a refrigerator to a customer, the seller must continue the relationship by
getting buyer’s feedback through a satisfaction survey and/or offering other service such as annual
maintenance check-up, extended warriors, and flexible payment plans.
2. Receive referrals from potential customers. Amidst the different channels of promotion, the
word of mouth is still one of the best means of promotion. The testimonials and
recommendations of the satisfied and loyal customers are a powerful persuasive tool to
influence their families, friends, and colleagues. Thus, a seller has established good relationship
marketing, may likely to receive more referral from satisfied and loyal customers.
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3. Provides feedback mechanism. It will be easier for the seller to get feedback from customers
who are satisfied and loyal. Getting the complaints of the customers is a form of feedback. It is
essential that sellers know how to receive complaints by making the customer feel that his or
her complaint is properly attended. This will help companies to solve problems and show service
commitment to public. Thus, the feedback will help the company to improve the product or the
services it offers.
4. Gives competitive edge. Having satisfied and loyal customers means having certain captured
market. This will provide the company a competitive advantage regarding market share.
Through the years, marketers have realized the value of customers in the marketing process. Having
strong customer relationship makes the business more profitable in the long term. This is perhaps the
reason why marketers develop different approaches to building and maintaining healthy relationship
with the customers.
One of the great values of clients in marketing is being the advocate of the product or service
themselves. This is very common in viral marketing. New customers buy products or services because of
the words they get from the satisfied and loyal customers. Their testimonials are so powerful compared
to the traditional promotional tools that companies are commonly used. Their words spread fast from
one person to probably multiple receivers. It can be through face-to-face communications like small
talks with friends or a channel like in the social media (Youtube, Facebook, Twitter and Instagram).
Another value of a customer in marketing is being the source of information in developing or improving
the product and service features and benefits. The marketers conduct market research to have a basis of
product development plan. The market researchers generate or gather the views, thoughts, or opinions
of the customers and turning it into a useful data, which is treated with a large importance in producing
and improving the products or services regarding its pricing, distribution and communication efforts.
The thoughts, words, opinions and conversations with customers, it may be in the informal way (face-to-
face or social media blog) or a constructed way (research), has a significant role in shaping the brand.
Ergo, the customer, is a vital marketing force.
Customer as Advocate
Word of mouth is effective means of
promotion. It can influence people’s
buying decision.
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Learning the relationship Development Strategies
The companies utilize different strategies in developing relationship with their customers. Here are
some ways to establish a customer relationship.
Full-part partnership. Companies with having identified few and high margin target customers
sort to this kind of relationship. Marketers create a relationship by working actively with
the principal customers like large retailers or distributors.
Frequency marketing program. Most of the companies use this kind of approach in establishing
and maintaining a relationship with customers. Usually, marketers provide loyal
customers who regularly buy goods or services in big amount with rewards in a form of
points, discounts, freebies, coupons, and gift certificates.
Club marketing programs. Sometimes companies provide sponsorships for clubs, which give
special benefits to members and form member communities. Many companies today do
this type of relationship. Usually, the company is the one initiates the formation of the
club and recruits loyal customers to be a member by issuing membership cards.
Many marketers believe that relationship is a continuous process of knowing the customers,
identifying the things that will truly satisfy them to strengthen the mutual bond
between the seller and the buyer. Therefore, learners should understand the basic
customer service strategy that will build up a strong relationship with customers.
Offering a total solution to customers through excellent service quality is a distinct advantage to any
marketers. However, many are still oblivious to the role they need to partake in this customer service
relations.
Trained and experienced sales personnel realize that customer service does not only focus on after
sales. Rather, they see it as an orchestrated set of activities involving various individuals in the
organization in delivering quality service to the customers.
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Adopting the framework presented by Go and Escareal-Go in the Fundamentals of Marketing in the
Philippine Setting, it presents the dynamic relationship of variable and explains the important roles of
external and internal customers in the process of managing customer satisfaction.
Strategic Customers
Satisfaction Management
Based on the concept of the framework, the management should realize the customers satisfaction
must not only be felt by the final buyer and/or end users of the products or services offered by the
company. Customer satisfaction must be viewed in a macro-perspective that internal customers who are
the distributors or the selling arm of the company, which can be a part of the organization or a separate
business enterprise, need also to be considered by the management as their customer.
Thus to manage the customer satisfaction process properly, the management should let the internal
customers comprehend their essence in the process as a proficient and responsive partners in attaining
marketing goals.
For example, the main function of training officer is to provide capacity and capability building programs
to different personnel to increase their productivity and efficiency in the respected fields.
Hence, a training officer should be equipped with knowledge on the brand vision, its market, and sales
techniques in training the company’s salespersons. If the training officer fails in delivering this, the
company will produce and distribute incompetent sales persons in the market place who will face the
external customers.
The result of this will not serve any good for the company’s sales. The training officer must consider the
sales persons as his or her internal customers and must be realize that his or her inputs to the process
will affect the sales of the company and achieve the marketing goals.
Viewing this concept through a clearer lens, each personnel in the enterprise should know his or her role
in the process of support of the marketing efforts. In this way, a culture of excellence in customer
service will be achieved.
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Customer, on the other hand, may be classified according to the market, but not limited to the
following: (A--ac)
1. The consumer markets
2. The business markets
3. The reseller markets
4. The government markets
5. The international markets
Consumer
Markets
Intenational Business
Markets Markets
Government Reseller
Markets Markets
The consumer markets are the most common of all of these customers. For their consumptions, these
individuals or households purchase products or render services to satisfy their needs. These markets are
the mothers, teenagers, young executives, and farmer.
The business markets are customers that purchase goods (raw materials and industrial products) or
render services (manpower and transportation) for the production of their products or services. These
markets are the companies like Proctor & Gamble, San Miguel Corporation, Lamoiyan Corporations.
The reseller markets purchase products or services that they resell and gain profit from it. These
markets are the companies like Robinson, SM, and Landmark.
The government markets are customers that purchase commodities or services to provide public
services like providing relief goods during disasters. Their markets are government agencies like
Department of Social Welfare and Development, Department of Agriculture, Department of Education.
The international markets are customers that import commodities for various purposes. Examples of
these markets are Asian market, European market, and American market.
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The Strategic Customer Satisfaction Management has three essential elements. They are the market
segmentation, Leadership, and Feedback and Reward System. (Go and Escareal-Go)
Market
Segmentation
Strategic
Customer Satisfaction
Management
Feedback and
Reward System Leadership
Market segmentation is needed in identifying the specific groups of customers that a company wishes to
serve. The learners must understand the importance of segmenting the market of consumers in
satisfying the different needs through customer service.
Market segmentation is the process of dividing the entire market of consumers into particular groups
whose likeness makes them a market for specific products or service, which satisfy their distinct needs.
By segmenting the market, marketers will have a more strategic approach in dealing with customers,
especially in designing customer service solutions. For example, the mood and tone of a sales person
who is persuading the external customers to buy a product are may be different compared to a sales
person who is providing technical assistance to the internal customers in operating the product. This is
because both groups of customers have different needs and purpose to be satisfied by the product.
Identifying the kind of corporate values and service culture is a crucial part of any company. There
should be an assurance that the desired satisfaction of external customers is parallel to the satisfaction
you want of internal customers to achieve harmony. To achieve this, a certain type of leadership is
needed. For instance, leaders should look into the kind of technology used by the company in delivering
quality customer service. The determined technological tools like company websites should be
responsive to the
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needs of the customers. The website should offer downloadable forms, informative pieces, feedback
system, and other user-friendly features that would promote customer satisfaction.
Another facet to look at in the concept of leadership is the motivation of workforce. Leaders should
create company programs that will empower employees to build champions in delivering customer
service. This has a direct impact on the levels of customer satisfaction.
Most of the employees are thrilled and motivated in knowing that they will receive incentives or
rewards for doing excellent work in their job. The reward system for providing bonus, commissions, gift
check and vacation trips, is the typical stimulant for employees to reach and even exceed the set target
performance. The more they are motivated in providing top customer service, the greater number of
satisfied clients for the company.
Feedback is an excellent source of referrals. Happy customers refer the brand to other potential clients
that lead to buying the product or service. Thus, the company will receive more positive feedbacks from
the customers that lead to more referrals, which results in rewarding sales to the employees.
The following are steps that learners can take in assuring the delivery of excellent customer service
culture.
Provide product knowledge. The key secret in increasing number of brand champions in a company is to
provide every employee excellent product knowledge by producing a product briefer that is
handy, easy to read and understand. If all employees in the company are well equipped with the
right information about the product or services, the chances of giving proper answers to
inquiries of customers in an unexpected moment and place will be greater.
Anytime and anywhere may attend to sudden inquiries about the brand from their friends,
classmates, relative or strangers that they meet in the groceries, parks, gyms, parties and many
places. This extended customer service is a reflection of company’s good service culture.
Train employees. Providing proper training to employees on customer service is critical. This is where
they commonly imbibe the culture of customer service excellence.
It is not enough for employees to know the profile, value, and promotion of the product or
service. It is necessary to train the employees to have customer empathy. The customers must
feel the genuine care and concern of the employees in providing service.
Hence, the employees must know the types and characteristics of the customers they are
serving. Employees should learn the ‘what to say’ and the ‘how to say it’ to different kinds of
customers. The content of the message is as important as the delivery of the substance of the
message. Learners must remember that consistency matters in answering questions and providing
feedback to the customers.
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Establish system. The venue is another thing that needs to be considered in providing quality customer
service. The company should develop systems that will support excellent customer service. From
over-the-counter customer service via information desk to more sophisticated technologically
driven customer service system like phone and Internet customer service, many companies in
the country have invested in new technologies in finding solutions to the needs of the
customers.
Almost all banks today offer phone banking and Internet banking services to resolve the
problems of their busy clients. Now, customers of banks can check their accounts, pay their bills,
follow up their applications, and file reports and complaints through 24-hour hotlines and online
customer service systems.
LANDBANK iAccess is an example of online banking system that provides convenient, reliable and secure
delivery of banking transactions 24 hours a day, 7 days a week
Attend to issue. Resolving to customer issues is one of the main considerations in providing quality
customer service. The employees should properly deal with customers even if they are at the
height of their emotions in filing complaints.
The customer must feel that the employee is truthfully listening to his or her complaints. Thus,
employees should show interest in the things that the customer is saying. Employees should not
make gestures, postures and facial expressions that will signify negative responses like displeasure
or belief.
Interrupting the customer while talking and raising an argument will not help to achieve mutual
understanding. Employee should realize the importance of polite listening and acknowledge the
customer’s points that being raised.
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To properly address the customer complaint, the employee should acknowledge the customer
by stating his or her name, sincerely apologize for the inconvenience, and reiterate the
customer’s points of complaint. In this way, the customers will feel that the employees are
attentive and serious in helping the customers.
The employee should offer solutions that are feasible, possible, suitable and acceptable.
Providing options will help customers to select the best solution to solve their issue. It will help
the customers a lot of the options are clearly explained. In explaining the solution, the customer
must feel the genuine concern of the employee in helping. The learners should remember that
in resolving the issues of the customers, the employee should show respect and concern by
attentively listening to their complaints and by clearly and politely explaining the best possible
options for solving their problems.
Empower employees. Every employee is the face of the company once they are in front of the customer.
Empowered employees are proud and happy to serve customers with utmost quality and care.
Thus, the company must empower their employees. The employee must feel that they are
expert in the brand, and their primary goal is to secure customer satisfaction. When employees
are given the power to make the customer happy and satisfied, the whole company will benefit.
In some department stores, their employees greet and cheer shoppers every hour. This gesture
is not just reminding the customers of how happy the employees are in serving them, but also
instilling in the minds of the employees of their power to make the customer happy by providing
excellent service.
Week 3
What’s More Day 3-4
Aqua Cure Water Station is a newly established water refilling company that offers clean and
safe drinking water by using quality purification process. They provide the customers with
drinking water that has C.A.S.H. (Clean-free from any impurities, Affordable – the price of water
is P7 per gallon. It is P1 peso lower that the usual price per gallon in the market, Safe- the
purification process is tried and tested in producing pure and safe drinking water, and Healthy-
Drinking water produced by the company can maintain a low acid environment in the body that
makes customers less prone to disease). The water station is open from 8:00 am to 8:00 pm,
every day with no holidays. The delivery is free. The company provides customer service seminar
and workshop to the employees to maintain efficient delivery of service. The company is open
for business partners who want to franchise and/or distribute the produced bottled drinking
water in their community.
CRM
CUSTOMER VALUE CUSTOMER SATISFACTION
1. 1.
2. 2.
3. 3.
4. 4.
Week 4
Additional Activities Day 1
a. If you are the marketing specialist, what are the best solutions that you will propose to the
owner of the bakeshop to solve the problem? Consider your internal and external customers
planning your CRM.
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“You have a very poor service. There are three bakeshop attendants in your shop,
and there are no one other customers except me buying a chocolate cake for my
son’s birthday. However, seems that your attendants do not like to assist me. They
are busy gossiping. What kind of service is this?” – Jose Dela Reyna, Pasig City
“Your attendant, Helda Marcelo is so rude! I am just asking her about the price of
this cake, and she replied to me boastfully by saying, ‘it is expensive!’ I am very
irritated! Don’t you know that I can buy her, you and this store” – Antonette Sy,
Ayala Alabang, Muntinlupa City
Week 4
Activity 3 Day 2
In a dyad, Think of an ideal customer relations that you want for a clothing boutique for
teenagers. Be creative and innovative in your ideas. Use the table below.
Brand Name:
Week 4
What I have Learned Day 3
2. The process of dividing the entire market of consumers into particular groups whose
likeness makes them a market for specific products or services, which satisfy their
distinct needs.
3. The process of selection of products based on the value perceived by the customers.
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4. A relationship development strategy that provides sponsorship for clubs, which give
special benefits to members and from member communities.
5. Type of customers that purchases product or services that they resell and gain profit from
it.
6. The perceived performance of the product in connection with the expectations of the
customer.
7. Type of customers that purchase goods (raw material and industrial products) or render
service (manpower and transportation) for the production of their products or services.
8. A relationship development strategy that provides loyal customers who regularly buy goods
or services in a big amount with rewards in a form of points, discounts, freebies, coupons
and gift certificates.
10. The overall process of building and maintaining profitable customer relationship by
delivering superior value and satisfaction.
1-5. Five (5) steps in assuring the delivery of excellent customer service culture.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
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Week 4
Go Extra Mile Day 4
1. Make a simple research on Business Markets. Choose a company that you think can be
considered as business market. Please be guided with the table below.
Vision :
Products :
Customers :
2. Interview three (3) mothers on their favorite grocery store. Ask their customer-perceived value
of the grocery store. Ask also how does the customer service of the grocery store satisfy their
expectations. Compare their answer.
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Assessment
DIRECTION: Multiple Choice. Read the sentences and choose the correct answer that
describe in the sentences. Write your answer in your answer sheet.
1. What are ways that marketers build trust with the customer?
a. Providing discounts b. Criticizing customers' opinions
c. No action is needed d. Transparency and integrity
2. Which customers make up the highest percentage of sales in most companies?
a. Wandering customers b. Need-based customers
c. Timely customers d. Loyal customers
3. Which of the following remains at the center of any marketing
process? a. Target consumers b. Product
c. Price d.
4. Focuses on building long-term relationships with customers.
a. promotion b. relationship marketing
c. personal influence d. none of the above
5. Approach to business that focuses on satisfying customers as the means of achieving profit goals.
a. promotion b. marketing strategy
c. marketing concept d. geographic segmentation
6. Which one of the following statements by a company chairman BEST reflects the marketing
concept?
a. We try to encourage company growth in the market.
b. We have organized our business to satisfy the customer needs.
c. We try to produce only high quality, technically efficient products.
d. We believe that marketing department must organize to sell what we produce.
7. Which one of the following is a key to build lasting relationships with consumers?
a. Price of the product b. Quality of the product
c. Need recognition d. Customer satisfaction
8. Which marketing concept has the aim of building mutually satisfying long-term relations with
key parties such as customers, suppliers, distributors, and other marketing partners in order to
earn and retain their business.
a. Holistic Marketing b. Demand-based marketing
c. Relationship Marketing d. Direct Marketing
9. Which of the following firms emphasizes on product’s benefits to the customers rather than
product attributes?
a. Product oriented c. Sales oriented
b. Market oriented d. Production oriented
10. When a manager focuses on making whatever products are easy to produce, and then
trying to sell them, that manager has orientation.
a. marketing b. production
c. sales d. profit
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