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1. Explain the concept of the customer relationship
2. Define relationship marketing.
3. Explain the value of consumer.
4. Identify and describe relationship development
5. Illustrate successful customer service strategy.
Customer Relationship Management
• The overall process of building and maintaining
profitable customer relationships by delivering
superior customer value and satisfaction. (Kotler and
• It helps the company in gaining, maintaining, and
increasing market share.
Customer Customer
Value Satisfaction

Customer-perceived value
- Customer pick products, which they think offer
utmost value. Consumer may subjectively see
the value and cost of the product. Their
selection of products and services will be based
on their individual value perspective.
Customer satisfaction
- It is based on the perceived performance
od the products in connection with the
expectations of the customers.
Relation Marketing
• Is a set of activities designed to develop and
manage customer loyalty and long-term
customer relationship.
• Teaches companies and the customers to build
trust by having interactions, which will result
in lasting relationship.
• The concept of relationship marketing, it is
wrong to say that the process ends after
customer buys the products. Feedback
and follow-through using related products
and service are outstanding.
Fresh Perspective: Advantage of Having
a Strong Relationship Marketing
Maintaining long-term customer relationship
- By building a relationship with customers and
not treating them as just for the sales, the loyalty of
the customers will be developed and the likelihood of
patronizing the product for extended time increases.
Receive referrals from potential customers
- The testimonials and recommendations
of the satisfied and loyal customers are a
powerful persuasive tool to influence their
families, friends, and colleagues.
Provides feedback mechanism
- 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.
Gives competitive edge
- Having satisfied and loyal customers
means having certain captured market. This
will provide the company a competitive
advantage regarding market share.
Understanding the Value of
Customers in Marketing
• Strong customer relationships makes the
business more profitable in the long
• Value of a customer in marketing is being
the source of information in developing
or improving their product and service
features and benefits.
Customer as Advocate
• Word of mouth is effective means of
promotion. It can influence people’s buying
Learning the Relationship
Development Strategies
According to levels: (Kotler and Armstrong)
Basic relationships: Companies with having
identified many low-margin target customers often utilize
this approach.
Full-part partnership: Companies with having
identified few and high margin target customers sort to this
kind of relationship.
According to Marketing Tools: (Kotler and Armstrong)
Frequency marketing program: Most of the companies
use this kind of approach in establishing and maintaining a
relationship with customers.
Club marketing programs: Sometimes companies
provide sponsorships for clubs, which give special benefits to
members and form member communities.
Realizing Customer Service
Trained and experienced sales personnel realize that customer service
does not only focus on after sales.

Strategic Customer

Internal Customer External Customer

Framework in Fundamentals of Marketing in the Philippine Setting(Go and Escareal-Go)

- To manage the customer satisfaction
process properly, the management should let
the internal customer comprehend their essence
in the process as a proficient and responsive
partners in attaining marketing goals.
Customers, on the other hand, may be classified according to
the market, but not limited to the following:
• The consumer markets
• The business markets
• The reseller markets
• The government markets
• The international markets
Types of Customers According to Markets

International Business
Markets Markets

Government Reseller
Markets Markets
The consumer markets are the most common of all of
these customers. For their consumption, these individuals
or households purchase products or render services to
satisfy their needs.
The business markets are customers that purchase
goods or render services for the production of their products
or services.
The international markets are customers that import
commodities for various purposes.
The government markets are customers that
purchase commodities or services to provide public services
like providing relief goods during disasters.

The international markets are customers that

export commodities for various purposes. Example of
this market are (Asian market, European market,
American market ).

Feedback Management
and Reward

Elements of Strategic Customer Satisfaction Management

 Marketing segmentation is the process
of dividing the entire market of consumer
into particular groups whose likeness
makes them a market for specific products
or services, which satisfy their distinct
• External customer is parallel to the satisfaction you
want to internal customer to achieve harmony.
• Leaders should look into the kind of technology used
by the company in delivering quality customer
• The determined technological tools like company
websites should be responsive to the needs of the
• Leaders should create company
programs that will empower
employees to build champions in
delivering customer service.
• The reward system for providing
bonus, commissions, gift checks and
vacation trips, is the typical stimulant
for employees to reach ad even
exceed the set target performance.
• Feedback is an excellent source of
referrals. Happy customers refer the
brand to other potential clients that
lead to buying the product or service.
The following are steps that learners can take in assuring
the delivery of excellent customer service culture.
• Provide product knowledge
• Train employees
• Establish system
• Attend to issues
• Empower employees
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.
Train Employee
- Providing proper training to
employees on customer service is
critical. This is where they commonly
imbibe the culture of customer service
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.
Attend to Issue
- Resolving to customer issues is one of the
main consideration in providing quality
customer service. The employees should
properly deal with customers even if they
are at the height of their emotions in filling
Empower Employees
- Every employees is the face of the
company once they are front of the
customer. Empowered employees are
proud and happy to serve customers
with utmost quality and care.