Relationship

MARKETING
GROUP 2 IN PRINCIPLES OF MARKETING
 GUIDE

INTRODUCTION TRANSITION OF
RELATIONSHIP MARKETING

BENEFITS TRANSACTION VS
RELATIONSHIP
MARKETING
 GUIDE

LEVELS OF PLAYERS IN RELATIONSHIP

RELATIONSHIP MARKETING

SIX MARKET MODELS RELATIONSHIP

MARKETING AND 4'Ps.
 GUIDE

SUCCESS IN
RELATIONSHIP
MARKETING
Introduction
“Relationship Marketing is a strategy
1. to attract, maintain and enhance
customer relationship”

“Relational Marketing refers to all

2. marketing activities directed towards
establishing, developing and
maintaining successful relational
exchanges.”
- Morgan & Hunt (1994).
BENEFITS OF
RELATIONSHIP
MARKETING
1. Long-term retention of the customer.
2. Word of mouth.
3. Rise in the price of a product.
4. Valuable feedback.
5. Competitive edge.
 BENEFITS OF RELATIONSHIP
MARKETING

1. Long-Term Customer Retention:

-strategy that focuses on building and
maintaining relationships customers.

2. Word of Mouth
-customers who are happy with a brand can become
cheerleaders and spread the word about it.
 BENEFITS OF RELATIONSHIP
MARKETING

3. Rise in the price of a product

-Loyal customers are willing to pay more
for products/services from trusted brands.

4. Valuable Customer Feedback

-Insights from engaged customers inform product
development, marketing strategies, and improvement
areas.
 BENEFITS OF RELATIONSHIP
MARKETING

3. Competitive Edge
-Differentiate your brand through
personalized connections, establishing a
unique market position.
 transactional
marketing is
short-term
thinking, While
RELATIONSHIP
MARKETING is
long-term
thinking.
 TRANSACTION VS.
RELATIONSHIP MARKETING

TRANSACTION RELATIONSHIP
MARKETING MARKETING

Focus on customer
Focus on the single
Focus retention
sale

Orientation on
Orientation Orientation on product benefits
product features

TIME Short-time scales

Long-time scales
 TRANSACTION VS.
RELATIONSHIP MARKETING

Customer Little emphasis on High emphasis on

customer service customer service
Service

Limited customer High customer

Customer
commitment commitment
Command

Moderate
Customer High customer
customer contact
Contact contact

Concern for Quality is the Quality is the

concern of the concern of all
Quality
production
department
 LEVELS OF RELATIONSHIP
MARKETING

1. Basic Marketing

-A company simply promotes its products or services

without actively engaging with customers beyond the
initial sale.

2. Reactive Marketing
-The company responds to customer inquiries and
concerns after a purchase, providing basic customer
service.
 LEVELS OF RELATIONSHIP
MARKETING
3. Accountable Marketing
-The company actively checks in with customers post-
sale to ensure satisfaction and gather feedback on
their experience
4. Proactive Marketing:
-The company proactively anticipates customer needs
and provides relevant information or offers based on
customer data, building a more personalized
relationship.
 LEVELS OF RELATIONSHIP
MARKETING

5. Partnership Marketing
-The highest level where the company works closely
with customers as partners, collaborating on product
development, improvement, and mutually beneficial
strategies.
 SIX MARKET MODELs
1. Internal Markets
-Focuses on relationships within the organization,
keeping employees motivated, informed, and
aligned with the company’s goals.

2. Referral Markets
-Centers on building relationships with
individuals or organizations that can refer
new customers.
 SIX MARKET MODELs
3. Influence Markets
-Targets influential groups like media, regulators, or
industry experts who can impact the organization’s
reputation and success.

4. Employee Markets
-Concerns attract, retaining, and developing skilled
employees, treating them as internal customers who
contribute to the organization’s success.
 SIX MARKET MODELs
5. Supplier Markets
-Involves in developing strong relationships with
suppliers to ensure reliable, high-quality inputs for
the business.

6. Customer Markets
Directly focuses on understanding and
meeting the needs of customers to build
loyalty and satisfaction.
 PLAYERS IN RELATIONSHIP
MARKETING

1. Supplier
-Provides goods or services the company needs.
Maintaining a good relationship ensures timely and
quality supply.
2. Distributors
-Handles the delivery of products to customers. Strong
partnerships improve efficiency and customer reach.
 PLAYERS IN RELATIONSHIP
MARKETING

3. End Users
-The final consumers of your products or services.
Building loyalty and satisfaction is key to repeat
business.
4. Employees
-They deliver the brand promise. Engaged employees
improve service quality and customer experience.
 PLAYERS IN RELATIONSHIP
MARKETING

5. Financial Firms
-Banks or investors that provide financial
support. A strong relationship ensures funding
or financial stability.

6. Government
-Regulates businesses through laws and policies. A
cooperative relationship ensures compliance and avoids
legal issues.
 PLAYERS IN RELATIONSHIP
MARKETING

7. Media
-Share information about the business. Good
relations help build a positive public image
and manage crises.

8. Allies
-Strategic partners or collaborators that help in growth
and innovation. These could be other businesses or
organizations.
 PLAYERS IN RELATIONSHIP
MARKETING

9. Competitor
-Understanding competitors can help foster
healthy competition and, sometimes,
collaboration in the industry.

10. General Public

-The wider community where the business operates. A
good relationship ensures societal approval and trust.
 RELATIONSHIP
MARKETING AND 4P’S

PRODUCT
i. Products are more customised to the customer’s
preferences.
ii. New products are developed and designed
cooperatively with supplier and distributor.
 RELATIONSHIP
MARKETING AND 4P’S

PRICE
1. The company will set a price based on the
relationship with the customer and the bundle of
features and services ordered by the customer.
2. In business to business marketing, there is more
negotiation because products are often designed for
each customer.
 RELATIONSHIP
MARKETING AND 4P’S

PLACE
1. RM favours more direct marketing to the customer,
thus reducing the role of middlemen.
2. RM Favours offering alternatives to customers to
choose the way, they want to order, pay for,
receive, install, and even repair the product.
 RELATIONSHIP
MARKETING AND 4P’S
PROMOTION
1. RM favours more individual communication and
dialogue with customers.
2. RM favours more integrated marketing
communications to deliver the same promise and
image to the customer.
3. RM sets up extranets with large customers to
facilitate information exchange, joint planning,
ordering, and payments
 FACTORS FOR SUCCESS IN
RELATIONSHIP MARKETING

1. Market Knowledge 2. Training

Programs.

3. Empowering
Employees
 FACTORS FOR SUCCESS IN
RELATIONSHIP MARKETING
1. Market Knowledge
-refers to the understanding and awareness of a specific
market, including its trends, customer preferences,
competitors, pricing strategies, and overall dynamics.

2. Training Program
-is a structured series of activities designed to
enhance the knowledge, skills, and competencies of
individuals or groups in a specific area.
 FACTORS FOR SUCCESS IN
RELATIONSHIP MARKETING

3. Empowering Employees
-refers to providing individuals within an organization
the authority, tools, resources, and confidence to make
decisions and take ownership of their tasks.
 VALUE
OF

CUSTOMERS
BY GROUP 2
 QSP or which are the three main components
of customer value, also known as the customer
value triad. Value increases as quality and
service increase, and decreases as price
increases.

1. QUALITY
2. SERVICE
3. PRICE
 1. QUALITY- the degree to which a product or service
meets a set of requirements or satisfies the needs of it
customers

2. SERVICE- an intangible activity, benefit, or item

offered for economic value.

3. PRICE- the amount of money that a buyer gives to a

seller in exchange for a good service.
 Benefit--- Value---Cost----Satisfaction

Benefit -the advantages that a customer receives

from a product or service

Value- is the perceived benefit of that product

or service compared to its cost
 Benefit--- Value---Cost----Satisfaction

Cost- the amount a customer pays to use a product

or service.

Satisfaction- is a measure of how happy customers

are with a company's products or services, and how
well the company meets or exceeds their
expectations
 Value can be
enhanced by:
• Increasing the • Reducing the
functionality of price
the product.

• Giving better • Giving the customer

service support easy access

• Offering beneficial
communication
 Value can be
enhanced by:
1. **Increasing functionality**: Adding more features or
improving performance makes the product more useful,
enhancing its value to customers.

2. **Reducing the price**: Lowering the price makes the

product more affordable, increasing demand and
perceived value.
 Value can be
enhanced by:
3. **Better service support**: Offering fast, helpful
customer service increases trust and satisfaction,
adding value to the experience.

4. **Easy access**: Making the product easy to find and

purchase removes barriers and enhances customer
convenience.
 Value can be
enhanced by:

5. **Beneficial communication**: Keeping customers

informed through clear, relevant updates builds trust
and strengthens the customer relationship.
 4 steps in value
providing process
• Value selection • Value creation/
value delivery

• Value • Value enhancement

communication
 4 steps in value
providing process
1. **Value Selection**: Identifying the key features and
benefits that will appeal to your target audience to
ensure alignment with their needs.

2. **Value Communication**: Effectively conveying the

value of your product or service through marketing and
clear messaging.
 4 steps in value
providing process
3. **Value Creation/Delivery**: Ensuring the product
or service is developed and provided in a way that
delivers the promised value to customers.

4. **Value Enhancement**: Continuously improving

and refining the product or service to maintain
customer satisfaction and competitiveness.
 Value selection

• Marketing • Buyer analysis

planning

• Market • Market targeting

segmentation
 Value selection
1. **Marketing Planning**: Developing a strategic plan to
align the product or service with market needs and
business goals.

2. **Buyer Analysis**: Understanding customer

preferences, behaviors, and pain points to tailor the
offering effectively.
 Value selection
3. **Market Segmentation**: Dividing the broader
market into smaller, distinct groups based on shared
characteristics or needs.

4. **Market Targeting**: Selecting specific segments

to focus on and tailor marketing efforts to meet their
unique needs.
 Value creation/
value delivery
• Product
development • Manufacturing

• Service planning • Pricing

• Distribution • Servicing
 Value creation/
value delivery
1. **Product Development**: Designing and creating a
product that meets customer needs and provides value.

2. **Service Planning**: Designing services that

complement the product, ensuring a complete and
valuable customer experience.
 Value creation/
value delivery
3. **Manufacturing**: Efficiently producing the product
while maintaining quality and cost-effectiveness.

4. **Pricing**: Setting a price that reflects the

product’s value while remaining competitive and
appealing to customers.
 Value creation/
value delivery
5. **Distribution**: Ensuring the product is available to
customers through the right channels, in the right
places, at the right time.

6. **Servicing**: Providing post-sale support and

maintenance to enhance customer satisfaction and
loyalty.
 Value
communication
• Making a value
proposition

• Communicating the
value proposition
 Value
communication
1. **Making a Value Proposition**: Clearly defining the
unique benefits and value that your product or service
offers to meet customer needs.

2. **Communicating the Value Proposition**: Effectively

conveying this value to the target audience through
marketing and other channels.
 Value
enhancement
• Marketing
research

• Marketing
control
 Value
enhancement
Marketing Research helps businesses create value by
providing insights into the market, competitors, and
customers.

Marketing Control is a process that involves

monitoring and evaluating marketing activities to
ensure they align with predetermined goals
 CUSTOMERS
CUSTOMER PERCEIVED VALUE

TOTAL CUSTOMER TOTAL CUSTOMER

BENEFIT COST

PRODUCT BENEFIT MONETARY COST

SERVICE BENEFIT TIME COST

PERSONAL BENEFIT ENERGY COST

IMAGE BENEFIT PSYCHOLOGICAL COST
 Customer Perceived Value -the value a customer
attributes to a product or service, based on their
perception of what they receive in exchange for what
they give.
 *Total Customer Benefit- is the total monetary
benefit a customer receives from a product or
service.
1. Product benefit- the basic attributes of the product
such as quality, design, functionality, packaging and cost
savings.

2. Service benefit- the support services a company

offers alongside a product, such as delivery, installation,
warranties, and customer service
 3. Personal benefit -the value that company
representatives add during the sales process to help
customers overcome objections and make a purchase.

4. Image benefit -the value a customer receives from

owning and using a product that improves their image
and reputation
 Total Customer Cost- is the total amount of money a
customer expects to spend on a product or service,
including the price of the product, transportation,
usage, and disposal.

1. Monetary cost- the price paid for the product or

service by the customer.
2. Time cost- the amount of time a customer
spends in the decision-making and buying process
for a product or service.
3. Energy cost- the degree of physical effort used by the
customer for searching, evaluating, buying desired
product and also taking them to their house.

4. Psychological cost- a pricing strategy that involves

setting prices for products or services based on
psychological effects and perceptions rather than
logical or rational factors.
 MODERN CUSTOMER-
ORIENTED
ORGANISATION CHART

CUSTOMERS
FRONT LINE
MANAGEMENT
MIDDLE
MANAGEMENT

TOP MANAGEMENT
 MODERN CUSTOMER-
ORIENTED
ORGANIZATION CHART
Customers- a person or business that buys goods or
services from another business in exchange for payment

Front line management- the people in charge of a

business unit, ensuring that it runs smoothly on a
day-to-day basis.
 MODERN CUSTOMER-
ORIENTED
ORGANIZATION CHART
Middle management- a leadership level in an
organization that sits between senior management and
lower-level managers.

Top management- the executive managers who lead

the organization as a whole and have the most
authority when making business decisions.
 VALUE CHAIN
popularized by Michael
Porter in 1985, Competitive
Advantage: Creating and
Sustaining Superior
Performance.

A value chain is a set of

activities that an
organization carries out to
create value for its
customers
 A customer value chain shows how a
business creates customers. It looks at
every step to see what makes customers
satisfied and likely to recommend the
business.

Customers will choose a product based on

their perceived value of it. Satisfaction is the
degree to which the actual use of a product
matches the perceived value at the time of
the purchase. A customer is satisfied only if
the actual value is the same or exceeds the
perceived value
 Conclusion
Strong customer relationships,
built through valuing customers
and relationship marketing, are
key to long-term business
success and sustainable
profitability. why are these two
the keys for long-term success
and sustainable profitability.
Members
ANGELA PAIGE
ORNOPIA

BRENT KEVIN
PALLEGA

JOHN CARLO
ABLAÑA

CARLO EMMANUEL
ABLAÑA

ARCHIEMAE CUBAO
THANK YOU