SHS

Principles of Marketing
Module 2
Principles of Marketing
Grade 11: Module 2
First Edition, 2021

Copyright © 2021
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form without
written permission from the copyright owners.

Development Team of the Module

Author: Hyacinth A. Mapanao, SST-I

Editor: SDO La Union, Learning Resource Quality Assurance Team

Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

Atty. Donato D. Balderas, Jr.

Schools Division Superintendent

Vivian Luz S. Pagatpatan, Ph.D

Assistant Schools Division Superintendent
German E. Flora, Ph.D, CID Chief

Virgilio C. Boado, Ph.D, EPS in Charge of LRMS

Lorna O. Gaspar, EPS in Charge of ABM
Michael Jason D. Morales, PDO II
Claire P. Toluyen, Libraria
 Target

Good marketing is not about simply selling products to customers. There are
external factors – personal needs and wants that influence customers’ purchasing
decision which must be considered in order to attain customer satisfaction.

This module was designed to help you understand the concept of relationship
marketing. It contains explicit lessons on how to attain customer satisfaction and
loyalty, specifically the different brand benefits that customers look for in a product,
and customer service.

After going through this learning material, you are expected to:
1. define “relationship marketing”

Before going on, check how much you know about this topic. Answer the
activities on the next page.

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 Jumpstart

Are you ready to unlock concepts? Do the following activities to get started!
Good luck and have fun!

Activity 1: Check Your Understanding!

Directions: Answer the questions below and look for the words in the pool of letters.
H K E B N I O S A V N M L O P S W I F I
L A C W O R T H L S B H O A R D S T V I
C O M A R K E T I N G A T R I V B N M A
J M O N E H J L C L O V E F Y U O P L Z
A J N T Y Q C R S A V E T R T Y I O N S
Z O T S U R L C H U F S Y O M K M H E I
T U D E R S P U O V B P K U T R O C F H
S S F L O B N S P U R R L S L H W N U T
L C V W D S F T C E C O N O M Y C M N S
E O B C V U A O B L S F A F O J K O C A
R M M H J E F M V O A I B R Q K L P T S
A P K E E X P E C T A T I O N S U Q I W
B A U R C R I R M R B I D N H O A W O I
N N C A O P M S L I A D E O L C S E N H
M Y V S N R A D N A W S R M I I B D A T
Z T S N O O W R Y D Q E S A S A M S L Y
X A S E M O T I O N A L T D T L A A W L
R L E M I V U A V J C F Y S N E E D S I
T E I W C W M C K S D A J X B D E E L R
U S L R S E T Y L Y C B A L M F A S T U

_______________1. What do you call the process of continuously and profitably

satisfying target customer’s needs, wants, and expectations
superior to competition?
_______________2. What do you call people who have the needs, ability, willingness,
and authority to pay for their purchase?
_______________3. What is considered an indispensable component for a firm to
continuously satisfy its customers?
_______________4. What do you call the basic reason or minimum requirement that
consumers look for in a product or service?
_______________5. What are considered as “motivating attribute” in contrast to needs?
_______________6. What are these values or intangibles associated with a product or
service?
_______________7-10. What are the four brand benefits that customers look for in a
product?

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 Discover

Congratulations! You’ve earned a badge! Time to unlock new concept!

A customer is a person or organization that transacts with a business person or

business organization to buy goods or services for monetary or other valuable
considerations.

Acquiring and keeping customers is the end goal of businesses because

customers create demand. Through customers’ purchase, organizations are able to
cover manufacturing costs, operating expenses, and generate profits. And because
businesses have to be sustainable, products or services are not expected to be
purchased only once. They need to be purchased over and over again in order to
maintain profitable and sustainable operations. And so, it is important for firms to
understand relationship marketing.

What is Relationship Marketing?

• a strategy designed to foster customer loyalty, interaction, and long-term
engagement
• includes activities aimed at developing and managing a trusting and long-
term relationship with larger customers

Characteristics of Relationship Marketing:

1. It focuses on the long-term rather than the short-term.
2. It focuses on partners and customers rather than on the company’s products.
3. It puts more emphasis on customer retention and growth than on customer
acquisition.
4. It relies more on listening and learning than on talking.

Four Brand Benefits

In order to establish a long-term relationship with their customers, firms must
create value based on several benefits since customers’ needs are multi-faceted.
Contrary to popular belief, offering lowest price may not exactly be the correct route
to attain loyal customers as there are four (4) benefits that customers look for.

1. Functional benefit
▪ product/service attribute that provides the customer with functional
utility or that which satisfies the customer’s practical needs
▪ answers the question “Why should I buy your product or service?”
Examples:
a) Pilot Pen Company created G-TEC pens for customers like students
who prefer extremely fine writing.

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 b) From sling laptop bags, laptop manufacturers introduced laptop
backpacks for students’ convenience.

2. Emotional benefit
▪ product/service attribute that provides the customer with a positive
feeling when they purchase or use it
▪ answers the question “How will I feel when I own or use the product or
the service?”
Examples:
a) A product wrapped with a Hallmark wrapper tends to give a feeling of
“importance” to the receiver of gift, compared to the same product
wrapped in an ordinary, low cost wrapper.
b) A wooden toothbrush labeled as eco-friendly gives the customer an
“eco-warrior” feeling or a sense of “responsible human being”.

3. Social benefit
▪ product/service attribute that considers how the customer wants to be
perceived by others when they purchase or use it
▪ answers the question “How will others perceive me when I use your
product or service?”
Examples:
a) Holding a cup of Starbucks coffee offers the consumers a sophisticated
self-image than holding a cup of low cost coffee.
b) A student wearing an original Nike shoes is perceived to be from a
wealthy family than a student wearing Class A shoes.

4. Economic benefit
▪ product/service attribute that considers how much a consumer can
save using the product/service
▪ answers the question “Why is your offer priced the way it is?”
Examples:
a) A Bluetooth speaker that can be used as power bank can costs higher
than a regular Bluetooth speaker. However, customers can consider it
more economic than buying a Bluetooth speaker and a power bank
individually.
b) A 3-in-1 hair tool that can be used to blow dry, straighten, and curl
your hair in one costs higher than a hair drier, hair straightening iron,
or curling iron. However, customers can consider it more economic
than buying those hair tools individually.

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 Aside from meeting or exceeding customers’ expectations on your product, you
must also consider how your customers expects you to treat them.
Customer Service

• the process of ensuring customer satisfaction with a product or service

• can take on many forms – salesperson assistance, product delivery,
technical advice, help desks, or other means

Examples of Customer Service Practices in the Philippines

Customer Service Practice Practicing Organization(s)
free delivery most restaurants and fast food chains
free gift wrapping/plastic book jacket most department stores and bookstores
free appliance installation most appliance centers
drive-through most fast food outlets
valet parking some hotels and resorts
reservations, installment plans some large department stores, bookstores
free parking some churches and religious organizations
complimentary refreshments, waiting most car dealerships
lounge
help desks, touch phone access, 24- most utility firms and telecommunication
hour customer hotline firms

Explore

You’re now ready to level up! Here’s another set of fun activities to practice your
skills!

Activity 2: Facts check!

Direction: Identify four (4) dos and don’ts of relationship marketing. Use the table
below.
Characteristics of Relationship Marketing
DOs DON’Ts

Activity 3: Give me!

Direction: Give two (2) examples of situation illustrating each kind of brand benefit.
1. Functional benefits
a. ____________________________________________________________________
____________________________________________________________________

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 b. ____________________________________________________________________
____________________________________________________________________
2. Emotional benefits
a. ____________________________________________________________________
____________________________________________________________________
b. ____________________________________________________________________
____________________________________________________________________

3. Social benefits
a. ____________________________________________________________________
____________________________________________________________________
b. ____________________________________________________________________
____________________________________________________________________
4. Economic benefits
a. ____________________________________________________________________
____________________________________________________________________
b. ____________________________________________________________________
____________________________________________________________________

Deepen

Congratulations! You’ve earned another badge! Here’s another fun activity to

strengthen your skills!

Activity 4: What do I get?

Direction: Think of products you use in your home. Classify them according to:
(Give at least 2 examples each and explain why did you classified them as such.)
Functional Benefit Emotional Benefit

Social Benefit Economic Benefit

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Activity 5: Share Your Experiences!
Direction: Cite five (5) personal experiences of good customer service. Refer to the
format below.
Customer Service Practice Specific Organization

Gauge

Congratulations! You’ve earned all the badges. Time to use your skills!

Identification. Read the following situations and identify what type of brand benefit
is illustrated.
________________1. John has never switched to android smartphones because he
loves the feeling of being cool projected by the Apple iPhone.
________________2. Mrs. Gomez always buy groceries labeled with “5% of the sales
will be donated to a charitable foundation”.
________________3. Absolute offers a thirst-quenching bottled water.
________________4. Personal Collection offers a multi-purpose surface cleaner.
________________5. Huawei P30 Pro is an android smartphone with a DSLR-quality
camera.
________________6. For ladies, carrying an Hermes bag gives a sophisticated self-
image.
________________7. Hygienix has hand sanitizers for those who do not like the strong
smell of rubbing alcohol.
________________8. For men, driving a limited edition sports car gives a “cool”
impression.
________________9. Nina always buy cosmetics from a brand that claims cruelty-free
products.
________________10. EPSON L3110 is an ink tank printer that can print, photocopy
and scan all in one.

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Essay. In your own understanding, explain the importance of the four brand benefits
and customer service in relationship marketing.
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
Rubric for the essay

Exceeds Meets Partially Meets Minimally

Standard Standard Standard Meets Standard
(4 pts) (3 pts) (2 pts) (1 pt)
Content Writer wrote more Writer wrote 5 Writer wrote 3 – Writer wrote 1 –
than 5 paragraphs paragraphs 4 paragraphs 2 paragraphs.
Introduction The introduction The The The introduction
(Organization) is inviting, states introduction introduction states the main
the main topic clearly states states the main topic, but does
and previews the the main topic topic, but does not adequately
structure of the and previews not adequately preview the
paper. the structure of preview the structure of the
the paper, but structure of the paper AND it is
is not paper nor is it not particularly
particularly particularly inviting to the
inviting to the inviting to the reader.
reader. reader.
Conclusion The conclusion is The conclusion The conclusion The conclusion is
(Organization) strong and leaves is recognizable is recognizable, unclear, and it is
the reader with a and ties up but does not tie difficult for the
feeling that they almost all the up several loose reader to follow
understand what loose ends. ends. it. Many loose
the writer is ends are left.
"getting at."
Grammar & Writer makes no Writer makes 1- Writer makes 3- Writer makes 5
Spelling errors in grammar 2 errors in 4 errors in or more errors in
(Conventions) or spelling that grammar or grammar or grammar or
distract the reader spelling that spelling that spelling that
from the content. distract the distract the distract the
reader from the reader from the reader from the
content. content. content.
Capitalization Writer makes no Writer makes 1 Writer makes 3- Writer makes 5
& errors in or 2 errors in 4 few errors in or more errors in
Punctuation capitalization or capitalization or capitalization capitalization
(Conventions) punctuation, so punctuation, and/ or and/or
the paper is but the paper is punctuation punctuation that
exceptionally easy still easy to that catch the catch the
to read. read. reader's reader's attention
attention and and interrupt
interrupt the flow.

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 flow.
Sentence All sentences are Most sentences Most sentences Student does not
Structure well-constructed are well- are well- use complete
(Sentence with varied constructed constructed but sentences.
Fluency) structure. with varied have a similar
structure. structure.
Product Clean, neat and Fairly neat and Not well Messy and
well organized. clean. Some organized. A unorganized. Not
organization. little cluttered. well put together.

References

Customer Service Practice. (2016). In R. C. Torres, Principles of Marketing (pp. 16,

19). Quezon City: Vibal Group, Inc.
Escareal-Go, J. G. (2017). Principles and Practices in Marketing. New Manila,
Quezon City, Philippines: Josiah Go.
learn.marsdd.com. (2020). Retrieved from MaRS Startup Toolkit:
learn.marsdd.com/article/elements-of-a-products-value-proposition-
functional-self-expressive-and-emotional-benefits/

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Answer Key
Jumpstart
Activity 1.

Explore
Activity 2.

Activity 3.
*answers are subjective

Deepen
Activity 4 & 5
*answers are subjective

Gauge
Identification

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