PRINCIPLES OF

MARKETING
CHAPTER 2
by: Jonalyn C. Baquillas
CUSTOMER RELATIONSHIP:
CUSTOMER SERVICE
Relationship Marketing

It focuses on ensuring that prospective

and current customers maintain a long,
profitable relationship with the company.
Keeping and improving relationship with
existing customers

Strategy
 Customer Value, Satisfaction, and Retention

Customer Value

The
customer’s Customer
perception Satisfaction
of the
The
benefits
customer’s Customer Retention
that he or
evaluation
she is
of the
getting
performanc
from a The
e of the
product. company’s
product in
effort to
relation to
maintain
his or her
loyal of
expectatio
customers
ns
Relationship Development Strategies Companies need
to exert effort in
order to satisfy the
Cost Service Provision needs of their
customers and
keep them buying.

Three factors affect the rationale of

Relationship organizations’ strategies in keeping
bonds Factors their customers:

Switching barrier
 Relationship bonds are retention
Factors affect the rationale of strategies that keep the customer
Organization Strategies buying the same brand.

The strategy has four levels.

On time delivery,
discounts, term of
payment. Structural Bond – Combination
of Financial, Social, and
Customization bonds.
Allowing Customized Bond
a wet – Granting a
market
customer’s request
suki to Financial Bond –
choose on extra service
Financial incentives
the best and incentives levels
that he/she receive
parts of extended to him or
from the company
meat. her.

Social bond – Focuses on Discounts,lower

Customers will not social and interpersonal prices, or
readily switch because
relationship b/w the company rewards points
of the competitor’s
lower price. and the customer