CUSTOMER RELATIONSHIP - 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.

Benefits of Developing and Implementing Customer Relationships

1. Consistent customer experience
2. Customer Feedback
3. Customer Profitability
4. Customer advocate
5. Innovation

Elements needed for a successful relationship marketing

campaign:

1. Prioritizing Customer Service - Excellent customer service is

a vital component of relationship marketing, as it demonstrates
that you care about people’s needs rather than just wanting their
money.
2. Engagement - Promote your brand values and position yourself
as a trusted industry leader, so customers want to engage with you
on a human level. The more they interact with you, the more you’ll
understand their needs, which gives you extra scope for
personalization.
3. Social media - Social media marketing campaign should be in
line with your brand personality and appeal to your target audience.
Include your emails.
4. Email marketing - Despite the huge popularity of social media,
email is still a great way to engage with customers. It helps you
reach out to them directly, with your message landing right in their
inbox instead of appearing among a heap of other content.
5. Loyalty Programs - are a great way to make customers feel
special. When you reward them for using your services, they know
they’re a valuable part of your business. Example: points scheme,
discounts.
6. Utilize surveys - Encouraging customer feedback is an
important element of relationship marketing, as it lets them know
their opinions matter. You also must demonstrate you’re prepared
to act on this feedback. A simple way to manage feedback is to
send out customer surveys. These might be CSATs (customer
satisfaction scores), polls on social media, or longer
questionnaires.
7. Content - To build strong relationships, make sure content
appeals to your target audience and provides value to them, such
as helping them make the most of your services. Creating
personalized content for specific customers shows how well you
understand them.

FOUR BRAND BENEFITS - According to Josiah & Chiqui

Escareal, Go, customers look for these 4 benefits for them to build
loyalty to certain products and services.\

1. Function benefit- This is an enticing (interest) functional benefit

that may be a valid reason to switch product preference. This is
done by analyzing consumers’ needs and wants and creating
features or attributes that can respond to these needs and wants.
Example: Kopiko, a brand of coffee created different types of
coffee like brown sugar, creamy white, and black coffee to suit the
needs of coffee drinkers.

2. Emotional benefit - The company invests in the emotional

connection with its customers. The product that they offer must
give positive feelings upon its consumption.
Example: Eating in a fine dining restaurant not only satisfies one’s
craving for food but also the memory of eating with family or loved
ones.

3. Social benefit - Focuses more on the status quo that a product

or service that may be provided to the customers. How one is
perceived when using or availing of a particular product or service
is of great importance.
Example: Wearing a Rolex watch gives a sophisticated image to
the person wearing it. There is prestige among peers for being
able to buy branded products.

4. Economical benefit - This concentrates on the price of an item

can do. It may give the idea that an expensive product may
indicate high quality. On the other hand, if the product’s price is too
low, this may create doubt about its quality. Brand image and
value are deciding factors for economic benefit.
Example: Nike rubber shoes cost more but they are worth the price
for their quality and durability.
VALUE OF CUSTOMER

Customer value - is defined as the satisfaction derived from what

a customer may experience or expect by choosing a particular
action relative to the cost of that action. The action can be a
purchase, a visit, an order, or a sign-up.

Worth - the customer feels that they get the benefits and services
over what he pays for.

Customer satisfaction - is defined as a measurement that

determines how happy customers are with a company's products,
services, and capabilities.

Level of Customer value

1. Basic and expected levels - Includes the basic requirements of

conducting a business. For instance, restaurants are expected to
have a spacious dining area and clean tables and utensils.
2. Desired customer value - Involves what the customers want
from the purchase or service experience. This is the first
opportunity for a business to get ahead of the competition. For
example, a retail shop can provide friendly and helpful staff who
can assist the customers in making the right choices.
3. Unanticipated customer value - Pertains to an unexpected
purchase or service experience that may go beyond what the
customers desire. For example, in a gasoline station, the gasoline
boy cleans the window after filling up the customer’s gasoline tank
without an extra charge.

TYPES OF CUSTOMER

1. Strangers - Customers whose needs do not fit the company’s

offerings.
2. Butterflies - as the name implies, are not loyal to specific
brands because they keep on looking for the best deals which may
lead to patronizing other brands.
3. True friends - have needs that match the company’s offerings.
They make repeat purchases and patronize the brand as long as it
satisfies their needs. The company must invest in these customers
and strengthen its relationship with them.
4. Freeloaders - are loyal but not profitable because of the limited
fit between their needs and the company’s offering. For example, a
few customers of a salon patronize its services regularly but do not
generate enough profit to sustain the maintenance costs, it can
earn only if it raises the prices of its service.

CUSTOMER RELATIONSHIP DEVELOPMENT STRATEGIES

1. Technology - Advancement in technology is a great advantage

in any business. Taking advantage of it may also contribute to the
development of relationship marketing. One best example of this is
the use of Microsoft HoloLens headsets by different airline
services. Airplane steward finds it easy to detect the body
temperature of the passengers and even detect their mood to offer
drinks or food.
2. Value Chain Excellence - Employees must realize that
customer satisfaction is the job of everyone in the company. It’s
important for marketers to match the buyer and seller process for a
better understanding of what truly delivers good customer
satisfaction. The delivery of service is entirely linked to different
departments. Any delay or failure to perform the expected task by
one or two departments will lead to customer dissatisfaction or
worse customer loss.
2.1. Customer service can be expanded into 3 parts to comprise
a full cycle instead of limiting it to the usual customer complaint,
inquiry, or claim.

Pre-transaction - marketing, distribution, demand, and forecasting

Transaction - order processing, credit, billing, delivery, product
manual, and installation.
Post transaction - warranty, collection, inquiries, after-sales
services, and parts availability

3. Frontline Excellence - Service is an attitude. Employees

should be committed to satisfying the needs and wants of their
customers. A person whose job requires delivering good service,
he/she should have the same intention. Happy and empowered
employees make happy customers, so being aware and sensitive
to the needs of employees and addressing them accordingly will
motivate and inspire workers to be devoted and committed to their
work. As a result, the quality of services and products will improve
and thus benefit external customers.
4. Account Segmentation - Successful companies segregate
their clients for the purpose of creating customized marketing
strategies depending on the client type. This will enable them to
effectively deliver the needs and wants of the customer. Various
types of people may need different types of accommodation and
assistance. Account segmentation defines the service level in a
service-type business. Stores that give exclusivity to their clients
by providing them with loyalty cards, discount cards, and
membership cards are examples of segmenting clients. In return,
these customers enjoy privileges as holders of these exclusive
cards from stores or establishments.
5. Coopetition - Cooperation and teamwork are also possible
among competitors. This is what coopetition is about, and
innovation in alliances is also possible in Marketing. This form of
allegiance in businesses creates value for the customers where
increasing the total satisfaction of customers is the main goal.

STRATEGIC AND TACTICAL MARKETING PLANNING

Strategic marketing - is defined as the general plan of action with

the company’s vision and goals. This is a carefully thought-out
course of action developed for the purpose of achieving a desired
result such as profitability and high productivity. It has a longer
time frame, usually three to five years. One type of marketing
strategy is to offer more expensive and branded products to a
small number of loyal customers. Another strategy is to offer
different products, from cheap to more expensive ones, catering to
different types of customers.

Strategic marketing process - involves conducting research and

establishing goals and objectives that will maximize the
effectiveness and success of your overall marketing strategy.
This process is beneficial as it helps you be more intentional with
your marketing. You’ll be able to ensure that you’ve targeted the
right audience, entered the right markets, and used the correct
mediums. It is the act of uncovering the information you’ll need to
create an effective marketing plan and execute successful
campaigns.
Step 1: Mission Identification - defines what an organization is,
why it exists, its reason for being, its primary customers, the
products and services it produces, and its geographical area of
operation.
Step 2: Situation Analysis - assesses and evaluates the market,
customers, competitors, and the company’s internal and external
environment. The objective is to identify the company’s strengths
and weaknesses, as well as the available opportunities and threats.
Step 3: Objective Setting - are marketing targets that are Specific,
Measurable, Attainable, Reliable and Time-bound (SMART).
These enable a company to control its marketing plan and provide
a consistent focus for all functions of an organization. These
objectives include sales revenues, market share and profits. They
are used as basis for strategy selection and development.
Step 4: Marketing strategy development - involves market
segmentation, identification of target market, positioning, selection
of board marketing strategies, and the translation into action plan.
Step 5: Strategy evaluation and control - After the strategy is
developed, periodic, monitoring and evaluation are needed. This is
necessary to identify deviations and make necessary adjustments
and corrections.

CATEGORIES OF STRATEGIES
1. Cost Leadership - primarily for achieving low-cost leadership,
overhead expense control, economies of scale, and
comprehensive cost-cutting efforts among industry competitors.
Example: While a 16” desk fan ordinarily retails for P1,000.00 a
local appliance brand can market the same at P635.00 through
mass production.
2. Differentiation - seeks to achieve superior product attributes
and features that are different from industry competitors. This
result pronounced consumers preference for the company’s
products.
Example: A cell phone brand introduces its version of the
smartphone that does not have a keyboard but is activated and
controlled by thought.
3. Focused - Efforts are concentrated on a relatively small but
profitable market. The development of products and services
primarily ensures that the needs and wants of this market are
addressed and that satisfaction is provided.
Example: A convenience store that concentrates on the very high-
end niche market by converting its operations into convenience
stores with superior customer service.

SUB CATEGORIES
1. Forward integration - involves gaining ownership or increased
control over distribution of retailers. Example: A known newspaper
company buying 418 newspaper stands in Metro Manila
2. Backward integration - gaining ownership or increased in
control over supplies. Example: A consumer goods company in the
Philippines purchasing a cow farm and dairy facility in General
Santos City.
3. Horizontal integration - purchase of or increased control over
competition. Example: A pizza company buying a controlling
interest in another pizza company.
4. Market penetration - objective of this strategy is to increase
market share of current products or services in current markets
through greater and more intensive marketing efforts. Example: A
doughnut company launching a P56 million advertising campaign
directed at current customers.
5. Market Development - involves the introduction of existing
products or services into a new geographical area or market.
Example: A private learning institution opening a new campus in
Cebu City.
6. Product development - improvement of current products or
services or the development of new product with the purpose of
increasing sales. Example: A company on carbonated beverages
introducing its product line in tetra pack.
7. Related diversification - introducing new related products or
services. Example: Battery manufacturers introducing solar-
powered automotive batteries.
8. Unrelated diversification - introducing new but unrelated
products or services. Example: A bank opening a chain of ice
cream parlors.
9. Retrenchment - involves halting or reversing declining sales
and profits through cost or asset reduction.
Example: A shopping mall selling off its hardware department and
laying off 847 of its department store employees
10. Divestiture - involves selling all of a company’s asset as a
whole, for their tangible worth. Example: A prime holdings
company selling of all its companies.
11. Liquidation - involves selling all of a company’s asset, in parts,
or as a whole, for their tangible worth. Example: A prime holding
company selling all its companies.

Tactical marketing refers to the specific actions and tactics that a

company takes in order to achieve its marketing objectives. These
tactics can be both digital and traditional and are typically outlined
in a tactical marketing plan. also refers to a detailed action
program covering a shorter period.

In writing the marketing plan, one should indicate the marketing

tactics needed to achieve the marketing strategy. These tactics
must cover the factors that address consumer needs and wants
product, price promotion place, people, process, and physical
evidence.

The tactical marketing process determines the means or tactics

to implement the strategies. It involves the identification of specific
activities, timetables, responsibilities, and budgets and their
implementations. The objective is to ensure that the strategies are
implemented successfully.
Differences between tactical marketing and strategic
marketing:

Strategic marketing and tactical marketing share similar goals,

but they're not synonymous. Strategic marketing typically focuses
on a company's long-term objectives. Marketers often create
strategic plans in response to overarching business targets.
Tactics are often an important piece of strategic marketing plans
because they describe specific actions within a plan. Once you've
established a larger goal, such as growing your business,
expanding your audience, or redefining your brand, it's important to
brainstorm specific strategies, which is when companies tactically
plan. Both are plans that often work together to ensure teams
design useful strategies.

Strategic marketing will always come first because it shows

where the company wants to go in terms of growth and relation to
its competitors. Tactical marketing consists of the activities
needed to implement the strategies. In short, strategic marketing is
the idea and tactical marketing is the action.

Consumer markets - consists of people who buy products and

services for their consumption and not for resale. final consumers
of a product or service.

Types of Consumer products

1. Convenience Goods - are purchased more frequently,
inexpensively, and do not require much effort and evaluation.
2. Shopping Goods - are goods that are purchased less
frequently, relatively more expensive, and require some amount of
information search and evaluation before purchasing.
3. Specialty Goods - are goods that are more difficult for
consumers to acquire. more expensive that consumers are willing
to spend more and would be willing to travel distances to obtain
these goods.
4. Unsought Goods - are goods that are purchased for
extraordinary reasons. Consumers seldom actively look for these
goods. Commonly marketed goods by highly skilled salespeople.

BUSINESS MARKETS - not the final consumers of products.

business-to-business (B2B): transaction between firms and
business customers

Types of Industrial Products​

1. Materials and Parts - Industrial products that become a part of
the business customer’s product through further processing or
components.
2. Capital Items - These are industrial products that aid in the
buyer’s production or operations.
3. Supplies and Services - Industrial products that do not enter or
are used in the finished product. Firms in their other business
operations need these to function effectively.