SHS

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PRINCIPLES OF MARKETING
Module 3

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Principles of Marketing
Grade 11: Module 3
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: Rudyna M. Minasalvas, T-II

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 ABM
Michael Jason D. Morales, PDO II
Claire P. Toluyen, Librarian II

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Target
This learning material will provide you with information and activities that will
help you to know and understand customers value and impart knowledge in creating
customer service strategy.

This learning materials composed of one lesson:

Lesson 1- Explain the value of customer ABM_PM11-Icd-6

After going through this learning materials, you are expected to:

a. Define customer;
b. and understand the value of customers.
c. Apply customers value in real life situation

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Jumpstart

For you to understand the lesson well, let us do some practice drills.
Have fun!

Directions: Match the following statements in the words/ phrases inside the
box below. Write the letter of the corresponding words/phrases on a separate
sheet of paper.
____1. It is not just in the way that every company says that they do. Make sure that
every interaction you have with your customers shows them that they are
valued.
____2. Encourage shoppers to return to stores where they frequently make
purchases.
____3. Like a lot of what we’ve been mentioning, it comes back to interactions. While
electronic communication is great, and often preferred, having a face-to-face
meeting can help the customer feel valued.
____4. The act of taking care of the customer's needs by providing and delivering
professional, helpful, high quality service and assistance before, during, and
after the customer's requirements are met.
____5. All customers should be treated professionally, which means the use of
competence or skill expected of the professional. Professionalism shows the
customer they're cared for.

A. Professionalism D. Customer Service

B. Loyalty Rewards E. Cherish each Customer
C. Face-To-Face Time

Discover
These days, brands must try even harder to create and communicate value in
everything we do. Customers have an overwhelming abundance of choice. They have
high expectations and little loyalty to spare brands that fail to meet them. It’s very
much a buyer’s market.

What is a customer?
A customer is a person or company that receives, consumes or buys a
product or service and can choose between different goods and suppliers.

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What is customer value?
Customer value is the satisfaction of the customer experiences (or expects to
experience) by taking a given action relative to the cost of that action.
The given action is traditionally a purchase, but could be sign-up, a vote or a
visit, while the cost refers to anything a customer must forfeit in order to receive the
desired benefit, such as money, data, time, knowledge.
Think about the following definition of marketing:
Marketing creates, communicates, and delivers value to customers.
The internal chain of sourcing like operations, process, sales, marketing and
customer service all contribute to the creation of value. All staff inside the business
affect customers directly or indirectly in some way, informing the perception in to the
business.
Customers do not buy things because you like them. They buy them because
they like them, or need them.
Whether you are deciding on a restaurant or a milk tea house to visit, or which
digital marketing you want to use, there are choices available and many factors play
a part informing that decision.
Customer value is all about subjective perceptions, which can only be
influenced, not controlled.

Measuring customers value?

The simplest is this: Perceived Value = Perceived Benefits/Cost
Value does not refer to price. It refers to perceive benefits stood to be gained in
the context of price. Cost is only part of the equation.

Two identical products with identical exposure can only compete on cost. Two
differentiated products do not have to compete on cost. Products are not just
differentiated by their features. They can also be differentiated because of their
brand. If Toyota brings out a car, you may presume it’s reliable because one of its
key brand features is reliability. If another carmaker releases a near-identical car,
they may struggle to compete because they do not share the same customer
perceptions.

The Drivers of Value

• Product function
• Points of differentiation
• Quality
• Service
• Marketing
• Branding
• Price
• Existing relationships or experience
• Personal bias from experience and upbringing

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These are drivers that impact a customer’s perception of value. Some you can
control, some you cannot. For any individual customer they will rank differently in
importance. Some people love brands. Some people only buy cheap. Some favor short
form content. Some people treasure personal relationships.

What can you do?

Discover Value
Opportunities

Communicate the Create a suitable

value market offering

Deliver the value

The Customer Value Delivery Cycle

1. Think of everything you do in terms of delivering value to your customers and

audience with the understanding that they have choices and you are not the only
choice.
2. Understand your market well enough that you can break it down into individual
segments with unifying characteristics that will respond in the same way to a
given value proposition.
3. Always look for the opportunity to create new value propositions. If you sit on your
laurels, your competition won’t.
4. Look for avenues to communicate this value at the right time and in the right
place.
5. Listen to your customers. Learn their perceptions about what you offer. Do not
hesitate to change based on what you learn. The customer, in this case, is always
right.
Source: Mansfield, Dani (2018) https://builtvisible.com/understanding-customer-value/

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How to cultivate Customers Value to attract new customer?

Your
Offering

Your Value
Proposition
The What the
Marketplace Customer
Offerings Needs

Figure 1.
https://www.google.com/search?tbs=simg:CAQSoAIJTtgfq6kTxrkalAILELCMp

Value proposition - a statement that answers the 'why' someone should do

business with you. It should convince a potential customer why your service or
product will be of more value to them than similar offerings from your competition.

Refine your value Proposition

Consider all the businesses out there offering exactly what you offer. With
similar products, customers have no choice but to make a subjective choice.
Your value proposition is where you win them over. You need to communicate what
makes you different, and continually work to increase that value proposition to set
yourself apart. You can do that through the following:

Audience Segmentation
Segment your audience based on what they value, and adjust your message
to each. What an adult considers as value, can be completely different than
teenagers. Old age customers they like you always greeted them “Hi, Hello, good
morning, good afternoon.” Figure out what’s a gesture they would appreciate.

Don’t compete on Price

If you try to compete on price alone with competitors, you’ll often lose. Cost is
certainly a factor for customers, but many people are willing to pay more when they
can see the value and feel like they’re getting their money’s worth. Satisfied
customers that perceive a lot of value in your offering are not only willing to pay
more, they’re willing to talk you up.

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Conversely, an unsatisfied customer who hasn’t seen the value is going to go
somewhere else, even if you offer the lowest price.

Focus on Your Most Valuable Customers

You can’t spread your resources, sales force evenly among entire customer
base and expect a good return. You need to focus on the customers who provide the
greatest value in return.
Likewise push a lot of resources towards building relationship with existing
customers over acquisition. It cost less to keep a customer than to acquire a new
one, and great services will boost the lifetime customer value so each customer is
worth more than in the long run.

Bonus: 5 Customer Value Creation Ideas

➢ Make the value/price ratio seem bigger than it is. Go extra mile, give them
a free gift, extra service. Make them feel that they’re appreciated.
➢ Make your service or products easy to buy. Offering different ways to pay
for it, delivery, etc.
➢ Create areal Unique Value Proposition. This holds especially true if you’re
dealing with B2B. Communicate with your costumer, why they should buy
your product over competition.
➢ Work on your brand. Your business name itself should be synonymous with
value. Develop a unique method to treat your customers, handle complaints
with care, etc.
➢ Provide stellar customer service. Treating them as such can be extremely
rewarding for both parties.

Source: AMIT https://tallyfy.com/customer-value

REMEMBER:
Customers are very important to businesses/companies. They provide
competitive advantage. Because of customers companies can achieve High
market share lead which means high sales in terms of volume and pesos.
Customers are also influencers and models for they spread good things about
your company and your services. Also, they are the reason for the company’s
existence. Finally, customers can make or break a company.

Sjf[j[gr[gExplore

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Explore
Fill-in the Blanks
Directions: Read each statement below carefully and fill in the blanks with the
correct answer. Choose your answer from the concepts inside the box. Use separate
sheet of paper for your answer.

___________ 1. It is the process of dividing customers into groups based on common

characteristics so companies can market to each group effectively and
appropriately.
____________2. It is the relationship between benefits and the costs including
money, stress, and time to sacrifice that is necessary to get those
benefits.
____________3. It is a person or company that receives, consumes or buys a product
or service and can choose between different goods and suppliers.
____________4. It is the process of convincing a potential customer why your service
or product will be of more value to them than similar offerings from
your competition.
____________5. It is the act of taking care of the customer's needs by providing
and delivering professional, helpful, high quality service and
assistance before, during, and after the customer's requirements are
met.

Customer Customers Segmentation

Costumers Value Customer Service
Value Proposition

Deepen
At this point, you are now ready to apply your knowledge in real-life situations.

Directions: Answer the question below. Write your answer in a separate sheet of
paper.

Activity: Can you cite or enumerate businesses that use customer service strategy?
Explain how will it help the business.

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__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

Rubrics for Scoring the Essay:

5- If the paragraph consists of 5 or more sentences with correct and complete
Information.
4- If the paragraph consists of 3 to 4 sentences with correct information.
3- If the paragraph consists of 2 to 3 sentences with correct information.
2- If the paragraph consists of 2 sentences with correct information
1- if the paragraph consists of only one sentence with correct information

Gauge
A. Direction: Read the following exceptional situations which show ideas on how
to value customers. Suggest 3 other ideas that can be adopted by different
business industry in your locality.

a. For business law firms, distributing a booklet on how to get started in

business outlining how to register, how to name your company properly, and
tips on how your business can survive can be given for free.

b. For auto repairs shops, automatically checking brake fluid, oil, water,
batteries, clocks, and ensuring a clean car even if customers didn’t ask for it
may do wonders.
c. ___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
d. ___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
e. ___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

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RUBRIC for scoring the output
Content Excellent Very Good Good Poor Very
(15 pts) (10 pts) (6pts) (4pts) Poor
(0pt)
Content Answers are Answers are Answers are Answers are No
comprehensive accurate and not completely partial or Answer
, accurate, complete. Key stated and key incomplete.
and complete. points were points are Questions
Key ideas were stated and addresses but not
clearly stated, supported. not supported. adequately
explained and answered.
well
supported.

Construction Well Organization is Inadequate Organization No

organized, mostly clear organization and structure Answer
coherently and easy to and structure detract from
developed and follow. of answer is the answer.
easy to follow. not easy to
follow.

B. Direction: Read the situation then answer the question that follows:

During the current COVID-19 pandemic, global markets are severely

disrupted. Businesses are forced to explore innovative solutions to overcome the
growing negative implications of this unprecedented crisis. Business environment
are affected, and few had close because of this pandemic situation. Due to various
quarantine measures imposed by the government. The existing business continuity
plans may not be enough to address the fast-changing variables presented by
COVID-19 pandemic.
Question. Can businesses still use concept of Customer Value despite of this
pandemic situation? Explain.
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

Rubric:
Content Excellent Very Good Good Poor Very
(5 pts) (4pts) (3pts) (2pts) Poor
(1pt)
Content Answer is Answers is Answers is not Answer is Answer
comprehensive accurate and completely partial or does not
, accurate, complete. Key stated and key incomplete. address
and complete. points were points are Questions the
Key ideas were stated and addresses but not question.
clearly stated, supported. not supported. adequately
explained and answered.
well
supported.

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References:
Printed Materials

Go, Josiah; Go, Chiqui E. (2017) , Principles and Practices in Marketing; Josiah
and Carolina Go Publishing; 14 Ilang-ilang Street., New Manila, Quezon City

Go, Josiah (1996). Contemporary Marketing Strategy in the Philippine Setting, Manila: National
Bookstore
https://www.google.com/search?tbs=simg:CAQSoAIJTtgfq6kTxrkalAILELCMp

Mansfield, Dani (2018) https://builtvisible.com/understanding-customer-value/

Source: Roxas-Divinagracia, M. T. (n.d.). Responding to the potential business impacts of COVID-19

(Deals and Corporate Finance). Retrieved June 30, 2020, from
https://www.pwc.com/ph/en/advisory/deals-advisory/responding-to-the-potential-business-
impacts-of-covid-19--deals-.html

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13
DEEPEN
Answer: the learners are expected to answer actual businesses who use
customer service strategy to help their business.
Rubrics for Grading the Essay:
5- If the paragraph consists of 5 or more sentences with correct and complete
Information.
4- If the paragraph consists of 3 to 4 sentences with correct information.
3- If the paragraph consists of 2 to 3 sentences with correct information.
2- If the paragraph consists of 2 sentences with correct information
1- if the paragraph consists of only one sentence with correct information
Explore
Fill in the Blanks Jumpstart
Matching Type
1. Customers Segmentation
1. E.
2. Costumers Value
2. B
3. Customer
3. C
4. Value Proposition
4. D
5. Customer Service
5. A
Answer Key