Lesson 5.
DEFINE "RELATIONSHIP MARKETING" (ABM_PM11-Ic-d-5):
“Share Your Experience”
Think of any product or service you have repeatedly purchased or used before. Think about its quality,
service, and why you have become a repeat buyer. Then, think again if you have been able to voice any
concerns or feedback to them. Do you ever wonder why they ask you for feedback or encourage you to
share your experience with others?
Since businesses rely on their customers to continue operating, their ideas, thoughts, and concerns must
always be considered. More and more enterprises use digital technology and social media to reach out
to their customer base.
For instance, a haircare company would encourage its customers to post their selfies and share their
experiences with their products and services. To foster participation, the said company would offer
discount codes for people who will participate. For the consumer, giving a review, feedback, or
suggestion is easy and simple. But in turn, it actually creates a community where people support, ask,
and learn from each other.
Questions to Ponder:
1. Why do you think social media is used to gain feedback or reviews?
2. Why do you think companies encourage their customers to participate in share your experience
activities?
3. What do you think you would gain from such activities if you were the consumer
In this lesson, you should be able to do the following:
● Discuss the definition, characteristics, and benefits of relationship marketing.
● Demonstrate understanding of the relationship marketing concept.
● Relate the relationship marketing concept with the marketing mix.
What makes customers repeat their purchases and develop a deep loyalty to a brand?
Relationship Marketing
● Relationship marketing is building a long-term relationship with the customers.
● It is to create, maintain, and strengthen connections to give long-term value and measure its
success through providing long-term customer satisfaction.
Relationship with Customers and Stakeholders
● It is building a long-term relationship with the customers.
● It is to create, maintain, and strengthen connections to give long-term value and measure its
success through providing long-term customer satisfaction.
● It is developed and implemented by every department.
BASIC MARKETING
● It is when a salesperson approaches a customer to sell the product or service.
● It is known as direct marketing.
REACTIVE MARKETING
● It happens when a salesperson encourages customers who bought the product to contact the
company for any concern or suggestions.
ACCOUNTABLE MARKETING
● It is when a salesperson contacts customers after sales to ensure that the customer is satisfied or
has encountered any problems.
PROACTIVE MARKETING
● It is when the company regularly contacts its customers for feedback to help improve
performance.
PARTNERSHIP MARKETING
● It is when the company continuously interacts with its customers to improve overall
performance and discover ways to deliver better value.
Relationship marketing aims to develop an important asset called the marketing network.
EXAMPLE OF MARKETING NETWORK: COMFORTABLE AND CONNECTION
A coffee shop employs the following marketing strategy to build a strong marketing network with all
stakeholders:
● serves delicious coffee that's locally sourced from different small businesses operated by farmers
● strictly adheres to government policies and regulations
● maintains transparency and accountability in all its financial and business dealings
● adds to the comfortable customer experience
● makes sure that the staff look well-rested and happy, and talk respectfully with clients
● offers different rewards like a free reusable cup for a customer's birthday
● gives discounts to customers who bring their containers to discourage using disposable cups
Characteristics of Relationship Marketing:
1. Communication
● establishing communication channels for customers to voice out their concerns
● understanding the customer’s needs
2. Trust and Commitment
● delivering promises
● committed to obtaining the customer’s trust
● transparent and accurate in providing information
3. Service and Support
● providing high-quality service and support before and after sales, or whenever needed
4. Benefits and Rewards
● offering benefits and rewards
● offering additional value to the product or service itself
● motivating customers to keep coming back
5. Customer Retention
● providing a unique customer experience
● resulting from effective communication, rewards and benefits, trust and commitment, and
support and service
Benefits and Importance of Relationship Marketing
● recognizes a customer's value; shows the business cares and values its customers
● keeps a good relationship with stakeholders
● provides valuable product or service information
1. Customer experience and feedback
Customers leaving great reviews can lead to a boost in the brand’s reputation.
2. Loyalty and word-of-mouth
When customers are more connected with a brand, they associate with it.
3. Consistent improvement and enhanced value
Customers provide valuable insight that helps in improving the business operation and improving value.
The 4Ps and Relationship Marketing
● Companies conduct marketing to keep their customers content while maintaining a positive
bottom line.
● The decisions related to the marketing mix ultimately influence consumers to purchase a
company's products or avail of its services.
● Develop the right product that addresses the needs of the target market.
● Utilize the right channels to reach and be reached by their target market.
● Guide companies on how they interact with audiences, promote their products, and build strong
customer relationships.
● Set the right price and measure customer reaction to all possible pricing options.
● Relationship marketing brings companies closer to their customers and target markets, allowing
them to make the right decisions and strategies on the product, place, promotion, and price
Which Side Its Bread is Buttered
A big chain of supermarkets supports sari-sari stores and small retail shops in the Philippines that hold a
large customer base. Offering a free membership program provides the company valuable insight into
what products sell well and what do not.
The program has different activities like sessions on finance, product presentation, and capital
maximization. The company also helps members understand customer behavior which helps them gain
an advantage over others. Aside from steep discounts, they also have a rewards program where
members can convert points from purchases to e-money.
This strategy resulted in the company's growth. From a few hundred members, the company created a
massive number of followers. They aim for their loyal customers to grow and be successful too. They also
intend to continuously build their success on the stable foundation of their ever-strengthening
relationship.
Keep in Mind:
● Relationship marketing is about building lifelong customer relationships. It values customer
feedback leading to customer loyalty and retention, and it has five levels: basic, reactive,
accountable, proactive, and partnership.
● Relationship marketing is also used to develop a mutually beneficial relationship with key
constituents, namely the customers, employees, marketing partners (suppliers, distributors,
etc.), and members of the financial community (investors, lenders, banks, etc.). It leads to the
development of an asset called the marketing network.
● Strong relationships with customers and stakeholders have five characteristics: communication,
trust and commitment, service and support, benefits and rewards, and customer retention. If
the company has effectively applied the first four elements in its relationship marketing plan, it
will result in customer retention and loyalty.
● Relationship marketing brings companies closer to their customers. By giving importance to
customer feedback and value, companies can make the right mix of decisions and strategies on
product, place, promotion, and price.
