Republic of the Philippines

Bohol Island State University

Main Campus
North Avenue, Tagbilaran City, 6300 Bohol

Vision: A premier Science and Technology university for the formation of world class and virtuous human resource for sustainable development in Bohol and the
Country.
Mission: BISU is committed to provide quality higher education in the arts and sciences, as well as in the professional and technological fields; undertake research and
development and extension services for the sustainable development of Bohol and the country.

Name: _______________________________________________ Date: ______________________

Course, Year and Section: ________________________________ Score: ______________________

Topic: “Who is the Customer?”

Learning Outcomes:

At the end of this activity, the students will be able to:

a) Understand the concepts of customer chain and value chain.

b) Define marketing mix and marketing segmentation.
c) Appreciate the relationship of the customer to the market with its core and supplementary products.

Reference:

 In marketing we tend to use the word customer and consumer interchangeably. However our customer
and the consumer re not strictly speaking the same. A customer is a person or company who
purchases goods and services. A customer becomes a consumer when he or she uses the good or
services where there is some consumption.
 Customer is the person who is served. The one for whom you satisfy a need and who you delight in
respect of their wants.
 Need is something that we cannot do without while want is the method by which we would like the
need to be satisfied. In modern society basic needs are satisfied using money and money has to be
earned. In order to earn money, large numbers of people need to travel to work and thus
transportation is a facilitory need in order to fulfil basic needs. Their preference of transportation forms
their wants; if a person wants to buy a motorcycle or vehicle to use as his/her means of transportation
or ride in a public transportation.

Situation 1: It is your child’s birthday and sitting proudly in their bedroom is a new computer system
bought from a major retailing chain.

A major home computer system consists of a number of components manufactured mainly from metal
and plastic. At each stage of the assembly process, value was added to them.What happens is that each
step in the manufacturing, distribution and retailing process adds value to those bits of metal and
plastic.The people involved in the process of those operations (supplies, sales, apply to design,
manufacturing, etc.) are called Internal Customers. The manufacturer/assembler can sell the coherent
computer system to a retailer at a profit. Profit is the added value left when all the costs have been taken
into account.

If you bought the computer you are clearly the purchaser or customer of the retailer which is in turn
the customer of the manufacturer.And, it is your child who will be delighted with your purchased item and
the end user of the computer. You and your child is the External Customers who see the company
mainly as a provider of the computer. This situation illustrates customer chain and value chain.

 Anecdotal evidence suggests that the better the internal customer relationships are, so the likelihood of
the external customer being delighted increase (Cartwright and Green, 1997).

 Marketing Mix means that a product can be taken to both goods and services and is applicable
across all sectors of activity. Marketing mix is a term introduced and refined by Kotler (1980). It is
compromised of the following:

1. PRODUCT/CUSTOMER VALUE
 A customer not just looking the core product when buying a car, mobile phone, laptop, etc. but
also considers the supplementary products. Core products are the goods components and
the tangible thing/good itself while supplementary products are the services offered,
ambience, customer services/value and after sales service.
2. PRICE/COST
Price is the quantity that is charged for your product considering its quality. It is the total cost
of the entire price attached to the goods and services.
3. BRANDING
Customers relate as much to brand names as to products. Brands make for customer loyalty
and there is a perception that certain brands are of better quality and value than others are.
4. PROMOTION/COMMUNICATION
Promotion means communicating with the people (prospect customers) to introduce one’s
product. It includes advertising, lets people know and keeps the product and service in their
mind. Personal recommendations are very important in purchase decisions.
5. PLACE/CONVENIENCE
The setting of the negotiations or transactions of products and services must make the prospect
customer convenient to talk and deal within the place.
 In a monopoly situation, there is likely to be a degree of competition. The four basic ways to compete
are considering the price, quality, uniqueness and service.
 Market Research is concerned with finding about out about your customer, especially their needs,
wants, demands and lifestyles. Effective market research is about asking the right questions of the
right people so that only those hunches that meet customer requirements come to market. It also
ensures that the products and services offered are those desired by the customer.
 Market segmentation is the processof dividing a market of potential customers into groups based on
the manner by which their needs and wants are fulfilled.
 Delighting a customer is when a customer receives more than they expected. Likewise, the
customer feels important, core products have a higher quality, supplementary product that really added
value, and quick recovery if things went wrong.
 Republic of the Philippines
Bohol Island State University
Main Campus
North Avenue, Tagbilaran City, 6300 Bohol

Vision: A premier Science and Technology university for the formation of world class and virtuous human resource for sustainable development in Bohol and the
Country.
Mission: BISU is committed to provide quality higher education in the arts and sciences, as well as in the professional and technological fields; undertake research and
development and extension services for the sustainable development of Bohol and the country.

Name: _______________________________________________ Date: ______________________

Course, Year and Section: _______________________________ Score: ______________________

Topic: Value for Money

Learning Outcomes:

At the end of this activity, the students will be able to:

d) Familiarize Expectancy Theory and Value Expectation.

e) Understand value for money.
f) Design a unique points for management in respect of quality.

Reference:

 Value for Money or VFM as it referred may well be a very individual matter as it compromises a
series of factors, which may be very personal to the customer, like, desire for the product/service,
amount of finance available, and cost of competing product/service. A product/service can only be
deemed value for money if the targeted customer can actually afford it. It could be said that VFM is
achieved whenever quality exceeds expectation.
 Expectancy Theory is the belief that motivational effort leads to an effective performance that will
lead to some form of reward.
 Value Expectation is the perception of the quality of a product/service. There are four basic
perceptions held by the customers:
1. Weigh the direct relationship between price and quality. The higher the price the more the
higher the quality or the lesser the price the lower the quality.
2. Strength of their needs or wants for the particular product/service.
3. Due to previous experience.
4. Perception in regards to the market.
 Porter’s Forces shows that competitions of most organizations recognize and are used to are that
between existing players within their particular market. It also interprets the value of any product or
service is not vested within the product or service itself but in the customers’ perceptions of what it will
do for them.
 W Edward Deming’s philosophy revolves around the belief that ‘happy people, delighted by what you
have provided become loyal customers’ (Deming, 1988). Deming produces 14 Points for Management
in respect of quality. Deming’s point of view are reproduced as follows:
1. Create constancy of purpose towards improvement of product and service.
2. Adopt the new philosophy. We can no longer live with commonly accepted levels of delay,
mistakes and defective workmanship.
3. Cease dependence on mass inspection. Instead, require statistical evidence that quality is built
in.
4. End the practice of awarding business on the basis of price.
5. Find problems. It is management’s job to work continually on the system.
6. Institute modern methods of training on the job.
7. Institute modern methods of supervision of production workers. Leader’s primary role is to
ensure that workforce produce a high standard.
8. Drive out fear, so that everyone may work effectively for the company.
9. Break down barriers between departments.
10. Eliminate numerical goals, posters and slogans for the workforce asking for new levels of
productivity without providing methods.
11. Eliminate work standards that prescribe numerical quotas.
12. Remove barriers that stand between the hourly worker and their right to pride of workmanship.
13. Institute a vigorous program of education and retraining.
14. Create a structure in top management that will push on the above points every day.
 Philip Crosby maintains that ‘zero defects’ approach should be the aim of a products quality.
 Joseph Juran made point that quality is not free. However the extra income that quality products and
services can provide together with the decrease in expenditure rectifying errors will normally lead to a
positive gain.
 Total Quality Management (TQM) is a holistic approach that requires an organizational attitude and
culture that run through every operation. TQM is very much a people oriented as opposed to a control
centered approach.
 Republic of the Philippines
Bohol Island State University
Main Campus
North Avenue, Tagbilaran City, 6300 Bohol

Vision: A premier Science and Technology university for the formation of world class and virtuous human resource for sustainable development in Bohol and the
Country.
Mission: BISU is committed to provide quality higher education in the arts and sciences, as well as in the professional and technological fields; undertake research and
development and extension services for the sustainable development of Bohol and the country.

Name: _______________________________________________ Date: ______________________

Course, Year and Section: ________________________________ Score: ______________________

Topic: Customer Loyalty

Learning Outcomes:

At the end of this activity, the students will be able to:

g) Explain customer loyalty;

h) Recognize the types of loyalty; and
i) Comprehend loyalty schemes.

Reference:

Customer Loyalty is the result of consistently positive emotional experience; physical-attribute based
satisfaction, and perceived value of experience, which includes the products or services. Consider you yourself
are loyal to. A customer finds the zone of comfort to the product or services. For a customer, any movement
away from the zone of comfort; be it more convenient or better or worse, it is resisted. It is the reason when a
costumer stays loyal to an organization or product even if another is convenient, is called comfort loyalty.
For a customer,

Types of Loyalty in considering Customer Loyalty (These varieties of loyalty describe customer
behavior.):

 PRODUCT LOYALTYis an extent to which a customer and consumers are committed to buying, and
feel a connection with the product.
 BRAND LOYALTY a customer or consumer whom buys a particular brand or at least a brand from the
same producer.
 A-LOYALTY (MERCENARYby Jones and Strasser types of customer behaviors)is those who have no
loyalty at all to a particular brand. They will tend to go for the cheapest or the most convenient option.
 SUPPLIER LOYALTY
 SUPRA-LOYALTY (APOSTLES by Jones and Strasser types of customer behaviors)is a term that can
be applied to those who are extremely loyal to an organization, product or service. In the case of
loyalty to an organization they have normally built up a personal relationship with the organization over
a period of time or in the case of a product/service they identify themselves with it.
 A-LOYALTY
 DE-LOYALTY (DEFECTORby Jones and Strasser types of customer behaviors)is when a customer
makes a deliberate decision to move to another organization because he/she has been let down by an
organization that they were previously loyal to.
 ANTI-LOYALTY (TERRORISTby Jones and Strasser types of customer behaviors)is who seek
retribution against the organization and become what are known as terrorists.
 DISLOYALTY
 PSEUDO-LOYALTY (HOSTAGE by Jones and Strasser types of customer behaviors) appears to be
loyal but that is only because they have no choice.

LOYALTY SCHEMES are the organizations strategies and offered service that makes a customer come back
to their organizations. It make customer feels sense of belonging, thus binding the customer closer to the
organization. A number of the schemes involve the awarding of points, stamps, or vouchers to the loyal
customer. Some examples are as follows:
 Multi-organizationalallows the customer to collect points based on purchases at a wide range. They
can use their collected points to the negotiated alliance or partners in a said company for additional
points or discounts.
 Trading stamps are those stamps given by each store based on the value of the customer’s spend
and could then be used to pay for subsequent items exactly as cash.
 Republic of the Philippines
Bohol Island State University
Main Campus
North Avenue, Tagbilaran City, 6300 Bohol

Vision: A premier Science and Technology university for the formation of world class and virtuous human resource for sustainable development in Bohol and the
Country.
Mission: BISU is committed to provide quality higher education in the arts and sciences, as well as in the professional and technological fields; undertake research and
development and extension services for the sustainable development of Bohol and the country.

Name: _______________________________________________ Date: ______________________

Course, Year and Section: ________________________________ Score: ______________________

Topic: Complaints and Recovery

Learning Outcomes:

At the end of this activity, the students will be able to:

j) Better understand of customer complaints.

k) Enlightened oneself on ways to handle customers.
l) Cite some examples of complaints in real world setting.

Reference:

In every organization there are bound to be times when things don’t turn out as expected. There are
bound to be some complaints during that lifetime and the customer will judge the organization as much on
how it recovers the situation as on the times when everything is just so. There are three basic reasons why
customer complaints: a) lower than expected quality; b) lower than expected service; and c) higher than
expected price. None organization can avoid complaints. One, almost paradoxical, of Cartwright & Green’s
(1997) Golden Rules for Customer care is ‘Welcome complaints, they allow for recovery’; in effect, if
complaints is properly handled. Turn a disaster into a triumph. Indeed, organizations may be able to enhance
the relationship with the customer by effectively dealing with a complaint. There are set out series of scenarios
relating to customer complaints as follows:

 The organization knows what has gone wrong and it is the organizations fault.
 The organization knows what has gone wrong and does not think it is the organization’s fault but the
fault of a supplier.
 The organization knows that the fault is beyond the organization’s control.
 The organization does not know whose fault it is.
 The organization cannot believe the customer expected that particular service.
 The organization has no idea that there is a complaint as the customer walks away and never uses the
organization again.

There is also a clearly defined typology of complainers:

1. Professional Complainers are individuals who have often decided to complain before the
product or service has even been delivered in the hope of financial gain or some enhancement to
the product or service.
2. Reluctant Complainers are those who have no wished to make a fuss may even feel
embarrassed about having to complain; they may well not know how to complain effectively. The
vast majority of people who make a complaint do so reluctantly.
3. Non-Complainers do not mean people with no complaints. They have legitimate complaints but
for one reason or another does not see fit to make a complaint to the organization although they
may well complain to their friend and relatives.

Customer plays vital functions of role in the market. Complaints of the customers must be deal
efficiently, effectively, and uprighteous of the organizations. Many people become defensive when dealing with
complaints because this is a person’s natural reaction to someone who is angrily criticizing their organization.
 Dealing with complaints, organizations must pay a sincere apology. Then organizations carried out an
investigation to see whether the customer’s complaint is justified. If the customer has been found to be
justified in making a complaint, some form of remedy has been applied as an action and organization has,
hopefully, learned from what has happened taken steps to ensure that there is no repetition and clear
customer relations policy.Customer relations policy is made by an organization to set out a clear policy for
dealing with complaints.

 Customer Recovery means doing something for the customer that mitigates against some failure in
the product or service.

It is the staffs in the front line that normally receive and take burnt of a customer’s complaint and any
complaints’ procedure should support their key role. They may be dealing with the customer face to face, over
the telephone or by writing. Complaints are form of problem that requires a decision, and thus problem-solving
and decision-making models need to be applied.

A Customer Service Problem-solving/Decision-making Model

Complaints, if handled correctly, can provide the organization with both valuable feedback and another
method for enhancing their relationship with the customer.
 Republic of the Philippines
Bohol Island State University
Main Campus
North Avenue, Tagbilaran City, 6300 Bohol

Vision: A premier Science and Technology university for the formation of world class and virtuous human resource for sustainable development in Bohol and the
Country.
Mission: BISU is committed to provide quality higher education in the arts and sciences, as well as in the professional and technological fields; undertake research and
development and extension services for the sustainable development of Bohol and the country.

Name: _______________________________________________ Date: ______________________

Course, Year and Section: ________________________________ Score: ______________________

Topic: Customer Care and New Technologies

Learning Outcomes:

At the end of this activity, the students will be able to:

m) Know the different new technologies used in the market.

n) Reflect on the implications of technology on the relationships between customers and suppliers.
o) Cite a reality scenario that shows the benefits of technology for customer.
p) Evaluate the advantages and disadvantage of new technologies in customer relationship.

Reference:

Synergyis the phenomenon that occurs when two or more things come together with the result that
the sum of the parts is actually greater than the whole. Synergy is one of the processes that make up new
technologies today.The revolution of technologies now a day is abruptly innovating. It is worth remembering
that yesterday’s amazing technological advance is today’s normality and may be tomorrow’s obsolescence.

In respect of customer relations, technology can be divided into a number of types, although there is
considerable overlap between them:

 technology that makes the operation safer for both the organization and the customer;
 technology that provides the customer with something completely new;
 technology that provides the customer with a more convenient service;
 technology that provides the customer with a quicker service; and
 technology that provides the supplier with more information about the customer.

Here are examples of new technologies for customer care:

1. Personal Identification Number (PIN) is a combinations of number from 0-9 (repeated or not),
thus allow each customer to have their own unique number which can be encoded onto the magnetic
strip on the card. It is for better identifying or recognizing the customer who is making query,
transactions, complaints etc.
2. Telephones are the heart of communication and computer revolution. Likely, ATM machines covered
lately rely on a telephone link to a central computer to carry out the transaction with the customer.
Telephones allow both to transmit and receive human voices that are connected either by wires or
radio to a central switching point where the message is routed to the desired other
receiver/transmitter.
3. Plastic is not the only form of ‘plastic’in common us but they are possibly the most important from the
standpoint of customer relations. Examples are: credit cards, debit cards, ATM cards, store cards,
telephone cards, loyalty cards, identification cards, mastercard and visa cards.
4. Facsimile machine matches telephone and photocopier technologies to allow the documents to be
sent over telephone lines. This may be mundane technology today but the ‘fax’ can still help build
useful relationships with customers.
5. Email (Electronic Mail) is one of the major manifestations of the synergy gained by linking computer
and telephone technology. It has become a normal method of business communications its ability to
send document files, pictures and greetings cards to anybody in the world with an internet connection.
Email has meant that time and distance have been truly overcome.
6. Internet is the combination of telephone and computer technology through a gateway provided by
one of the Internet Service Providers (ISP) allows people to gain access to millions of web pages
covering every possible subject. The two major implications of the internet in customer relations
namely: information for customers and electronic commerce (Ecommerce).
7. On-line bankingis an electronic payment system that enables customers of a bank or other financial
institution to conduct a range of financial transactions through the financial institutions website. It is a
way to transfer money to another account through online of the banks available app.

These new technologies offer variety of services for customer relationship in a fast and easy access ways.
 Republic of the Philippines
Bohol Island State University
Main Campus
North Avenue, Tagbilaran City, 6300 Bohol

Vision: A premier Science and Technology university for the formation of world class and virtuous human resource for sustainable development in Bohol and the
Country.
Mission: BISU is committed to provide quality higher education in the arts and sciences, as well as in the professional and technological fields; undertake research and
development and extension services for the sustainable development of Bohol and the country.

Name: _______________________________________________ Date: ______________________

Course, Year and Section: ________________________________ Score: ______________________

Topic: Relationships

Learning Outcomes:

At the end of this activity, the students will be able to:

q) Comprehend the relationships of the organizations and customers.

r) Explain organizational body language.
s) Compare and contrast extrinsic body language and OBL.
t) Realize reality happenings that relate to the major aspects of OBL.

Reference:

Between any organization and its internal and external customers, must have good relationship in
terms of legal, moral, ethical and plain good business sense good. The good relationship stands to reason that
the closer the proximity of the supplier and customer geographically, the closer their relationship is likely to
be. Equally, the smaller the organization, the more likely it is that the more intimate the customer/supplier
relationship. Large organizations cannot cater to be closed relationship with their customers. Since, one way to
have good relationship is well communication with both parties. Large organizations build closer relationships
with customers by: adopting a devolved structure and allowing each branch or business unit to develop close
links to its customers, may appoint client managers whose role it is to look after a small, discrete group of
customer on a personal basis or using technology to appear close to the customer. Today’s modern
technologies have greatly increased the speed and methods by which communication between supplier and
customer can be accomplished. The advent of technologies has meant that distance is no barrier to
communication and time zone differences have been made of little account. Organizations having a good
relationships results on a successful transactions with the customers and all the way down the value of chain.

Mostly in an organization the staffs are the one who make effort to bind good relationships with
customers. The staff must practice CARE, stands for competence, attitude, resources and empathy.

 Competence must exist in the staff working for an organization which means staffs need to have a
considerable degree of expertise in both the organization and the product.
 Attitude,staffs possess upright attitudes toward the customers. Especially when a customer
complaints, they should be handled with justifiable behavior. Here are the state of behaviors of a
person when there is a potential or actual complaints/conflict: assertive behavior is when a person
(staff) stands up for their rights without violating the rights of other person, submissive behavior is
when a person (staff)allows somebody to violate their roles while aggressive behavioris when
somebody (staff) violates the rights of the other person whilst standing up for their own rights. Right
attitude is one that recognizes the importance of the customer to the well-being of everybody in the
value chain.
 Resources staffs require to carry out and effective customer relations’ role include:
a) Physical Resources. If a customer wishes to have a replacement of item, staffs must have the authority
to take such actions. So, the sooner it is supplied the more likely it is that any problem situation can be
recovered.
b) Financial Resources. Staff should certainly have a delegated budget that allows them to provide basic
hospitality for customers, especially, when refunding customer’s money.
 c) Information Resources. Staff need to access customer’s information to be widely and immediately
available. It will allow delivering a better standard of customer care.
d) Time. Management needs to allow staff the necessary time with competence to deal with the customer
as an individual.
 Empathy is the ability to understand the situation from the other persons’ point of view. A good
relationship is one where the staff member can put themselves ‘in the shoes’ of the customer and
understand how they feel.

One way also to interpret communication is through body language. It express how you communicate and
deal with others of how every part of your body moves. But one must be very careful of their body language
because in some actions is a bad and rude in other cultures. In customer/supplier relationship body language
develops a communication. For example,extrinsic body language is the way how you dressed up yourself
says how you should be treated. Likewise, a person in business attire will expect to be treated in a
businesslike manner. Staff should always be smart, wear the organization dress/logo where this is supplied
and need to look the part. Customers look at the image a person generates and match to their perception of
the organization. Organization Body Language (OBL)determines what an organization actually thinks
about its customers as opposed to what it says its policy. There are major aspects to OBL:

1. Locations/Buildings
The actual visual image of the premises in organizations is one of the things that set all important
first impressions.
2. Security
Customers need to feel safe that their security has been considered in all aspects, from the
customer and to the customer’s properties.
3. Convenience
Organizations need to respond for customer needs for comfy and convenient. AS much as the
access of facilities like comfort rooms, doors arrangements are suitable proper access of disabled in
a wheelchair and others that make organizations facilities and employees customer friendly.
4. Communications
Entertaining customers to welcome them with a smile, to attend their complaints and feed their
curiosity of the organizations products and services. If customers have question, might well, staffs
are ready to respond.
5. Ambience
Ambience is a word relates to the overall impression gained by the customer. The ambience of an
organization is built up from all the above OBL factors. When the customer feels that he or she is
important and that their comfort has been thought about in the way the organization designs its
operations.

The way how and organizations treated and make their customers feel leads to the kind of relationship
an organization to its customer and the customer to the organization build.
 Republic of the Philippines
Bohol Island State University
Main Campus
North Avenue, Tagbilaran City, 6300 Bohol

Vision: A premier Science and Technology university for the formation of world class and virtuous human resource for sustainable development in Bohol and the
Country.
Mission: BISU is committed to provide quality higher education in the arts and sciences, as well as in the professional and technological fields; undertake research and
development and extension services for the sustainable development of Bohol and the country.

Name: _______________________________________________ Date: ______________________

Course, Year and Section: ________________________________ Score: ______________________

Topic: Public Relations

Learning Outcomes:

At the end of this activity, the students will be able to:

u) Define public relations based on their understanding.

v) Illustrate existing examples involving advertising, publicity and public relations
w) Know the various methods public relations do to put their message across.
x) Evaluate the implications of the publics to an organization.

Reference:

 Advertising could be classed as an activity type of active publicity. It is related in promoting or rising
of interest in products or services.
 Publicity is the result of actions by or to the organization and is managed through the public relations’
process.
 Public Relations define as the deliberate, planned and sustained effort to institute and maintain
mutual understanding between and organization and its publics (Brassington&Pettitt, 1997). It is also
concerned with presenting a positive image of the organization to its various publics in response to the
needs of those publics.

Public relations are also not publicity (Jefkins 1980). Publicity is the result of something that has happened,
public relations is the response to that publicity which may in turn generate more publicity. Good public
relations will generate positive publicity that may be used in future advertising. Conversely, poor public
relations will produce further negative publicity. Likewise, complaints can be used positively and negative
publicity can be transformed into positive publicity by good public relations. This is the task of those people in
public relations offices/department; they are to maintain good relationship with the public for a good publicity
and easy advertising. Here are a number of publics with whom any organization needs to communicate,
including: customers, suppliers, shareholders in the private sector, electorate for the public sector, local and
national government, competitors (where there are matters of mutual concern), the media, own employees,
pressure groups, and professional and trade bodies. These groups of public are the skeletal system of the
organization that make an organization standing strong and keep moving for success.

Public relations do not just happen. Regardless of whether the issue requires reactive or proactive public
relations, there are a number of methods open to an organization to put their message across, as mentioned
below:

1) Press Releases
If an organization wants to forward a message in speed it wishes to, whether it is response to an
externally driven event or an internal one that the organization wishes the public and the media to
know about, a press release can be very useful tool. A typical press release will be succinct, covering
the main part of the issue only and not cluttered up by detail, and will state clearly who to approach for
any additional information.
2) Press Conferences
 Major issues often result in the need for the organization to call the media together for a press
conference. An organization make a statement once and allows media to ask questions for
clarifications, But thorough briefing is required for smooth interviews.
3) Publicity Stunts
In many ways this is a form of advertising but, not being as controlled as commercial advertising, there
is always the danger that the stunt can go wrong and thus produce the wrong image. If a publicity
stunt is successful, it carries with it more credibility than advertising because the customers are well
aware that advertising is both paid for and controlled.
4) Sponsorship
When an organization support partnership and financial to a sports team, other organizations, events
and etc. for their organizations to be acknowledge.
5) Trade Shows etc.
Trade shows, country shows, military tattoos etc. all present an opportunity for organization to meet
their publics. Retailers and others in the value chain are an important public, and trade shows give an
opportunity for organizations to meet them and to provide corporate hospitality.
6) Charities
Organizations give charitable donations to their chosen ones. It is also true that such donations can
offer tax advantages and help to show the caring nature of the organization.
7) Advertising
Modern advertising is expensive and is thus carefully targeted. Advertising seek to attract the attention
of a potential customer, interest them and create a desire for the product or service. The hope is they
to create an action of the desire.

Public relations objectives are to maintain the relationships of an organization with its various publics
and the need to ensure effective communication with them, as well as to ensure a good corporate identity.
Corporate image is also a form of brand and is very important in respect of customer relations. Much public
relations’ activity is directed at showing the corporate body in a good light.
 Republic of the Philippines
Bohol Island State University
Main Campus
North Avenue, Tagbilaran City, 6300 Bohol

Vision: A premier Science and Technology university for the formation of world class and virtuous human resource for sustainable development in Bohol and the
Country.
Mission: BISU is committed to provide quality higher education in the arts and sciences, as well as in the professional and technological fields; undertake research and
development and extension services for the sustainable development of Bohol and the country.

Name: _______________________________________________ Date: ______________________

Course, Year and Section: ________________________________ Score: ______________________

Topic: Customer Relations in Action

Learning Outcomes:

At the end of this activity, the students will be able to:

y) Understand deeper customer relations.

z) Appreciate the importance of customer relations.

Reference:

 CUSTOMER RELATIONS is the process a business uses proactively develops positive relationships
with its customers. This includes activities such as marketing, public relation communications, sales and
customer service. The aim is to ensure that customers are highly engaged and satisfied with the
business. This then leads to positive outcomes such as customer retention and a higher customer
lifetime value. Success in customer relations is measured by the degree of customer satisfaction
throughout the buying cycle. It’s all about building a genuine connection and strong bond with
customers. Here are some situations how customer relations exist:
 For Hal Malquardt, a comedy magician, that, ‘the audience (customer) is everything and
he appreciates that he is not there for himself, a true customer driven approach. If they don’t
laugh (which is rare), then he must carry on. As he says of the one occasion when this
happened, ‘atleast they didn’t leave’. At times like that he relies on body language and his own
carefully developed senses of how people are feeling.
 Princess Cruises (USA/UK) is a company offering cruise ships and cruise service that have their
comprehensive customer care programme named CRUISE (Courtesy, Respect, Unfailing, In,
Service, Excellence). The CRUISE program recognizes that the success of the organization
is ultimately in the hand of those who interface directly with the customer.It also
supported by regular training sessions. Of all the intangibles and supplementary, service is
frequently the most important.
 Highland Distillers’ Glenturett Distillery is a whisk distillery. The staffs are well trained in
customer care; Highland Distillers operating a vocational qualification in customer service
though a local college plus their own in-house training. There is a corporate uniform based
on the Glenturret tartan and this adds to the air of professionalism that pervades the
operation. As an exemplar of good customer relations, Glenturret scores highly because of:
a. Smart, well-trained and knowledgeable staff;
b. Excellent presentations throughout the facility;
c. Well-kept facilities;
d. Good merchandising, not cheap but of high quality and well-displayed;
e. Good food and operation services;
f. Thought given to the types and nationalities of visitors;
g. Separation of coaches and private cars;
h. Location both macro and micro; and
i. Good relations with the local community.
  Roseanna Cunningham is one of a growing number of politicians who have realized that the
relationship with the customer is a vital area of study for those in politics because those
customers are voters and nobody is more important than the customer.
 In growing market it is, paradoxically, just as important to retain customer loyalty as in shrinking
market.
 A successful company will not only generate a growth in new clients but will wish to build on its
existing customer base as the existing customers carry far fewer marketing customers than new ones.
In effect, existing customers, if satisfied, will perform part of the marketing function by promoting the
company to their friends, relative and colleagues (Cartwright and Green, 1997).
 Republic of the Philippines
Bohol Island State University
Main Campus
North Avenue, Tagbilaran City, 6300 Bohol

Vision: A premier Science and Technology university for the formation of world class and virtuous human resource for sustainable development in Bohol and the
Country.
Mission: BISU is committed to provide quality higher education in the arts and sciences, as well as in the professional and technological fields; undertake research and
development and extension services for the sustainable development of Bohol and the country.

Name: _______________________________________________ Date: ______________________

Course, Year and Section: ________________________________ Score: ______________________

Topic: Developing a Customer Relations Strategy

Learning Outcomes:

At the end of this activity, the students will be able to:

aa) Know and understand the strategies to develop customer relations.

bb) Create their own idea own OBL audit form.

Reference:

 The direction and scope of an organization over the long term: ideally, which matches its resources to
its changing environment, and in particular its markets, customers or clients so as to make stakeholder
expectation is a strategy (Johnson and Scholes, 1993). In order to plan strategically, you need to
have analyzed the organization in terms of its environment, available resources, customers and clients,
and stakeholders.
 Strategic planning is planning for the long-term while strategic decisions are those long-term
decisions from which the day to day operational decisions flow. Whereas, operational decisions are
mainly routine, specific, involve small-scale changes and are resource driven, strategic decisions must
taken account of ambiguity and complexity, the work of the whole organization, the implications of
significant changes and are likely to be driven by the environment within which the organization
operates. To be effective, operational (or tactical) decisions need to be firmly rooted within the
strategic framework of the organization.
 All decisions and plans, operation or strategic, flow from the mission of the organization. Organization
should have clearly defined aims and objectives that are wishing to achieve. All plans, and one
definition of strategy is that it is plan designed to move the organization in a desired direction, should
be built around clearly understood aims and objectives.
 Every organization is different and every customer has their individual needs, and thus there is not a
single generic strategy that can be adopted by all organizations.
 Customer Service Strategy Determinants is designed to show the factors that determine the most
effective strategy an organization can develop to build and enhance its relationship with its customers.
Here is the model (the circle represents the organization):
A. INTERNAL ANALYSIS

 What type of organization is under consideration?

Profit, Not for Profit, Private Sector, Public Sector, and Voluntary Sector
 Is the organization Concentrated or Diffuse?
Concentrated Organization will be located and operates in a small geographical area while Diffuse
Organization may have branches and operations stretching over a wide, even global area.
 Is the organization: growing, stationary or contracting?
 What are the core and supplementary products/services of the organization?
 What are the current strategic objectives of the organization?
 BACK Analysis (Baggage, Aspirations, Culture, Knowledge)
This is a recently devised analysis by Cartwright et al.(1994) designed to provide an analytical picture
of an organization.
Baggage is about where the organization has been. It include procedures, policies, rules and even
product themselves that were once relevant but are no longer needed, or the imposition of procedures
that do not match the need of the customer.
Aspiration is about where it wants to go. It is important that an organization has an idea to its
aspirations and what they are realistic, since it is only if one knows where one wants to go that proper
plans can be made and implemented.
Culture, when referring to organizations, is a function of ‘the way we do things around here’. As in
definitions of national cultures, it is made up of a set of underlying values, assumptions and beliefs.
Charles Handy (1976, 1978) identified four types of organizational cultures each with its own distinctive
behaviours.Role culture places great emphasis on stating what a person’s job title is, position in the
hierarchy, time served and have a plethora of rules and regulations with departmental boundaries
clearly defined.Task culture actively break down departmental barriers and lies in expertise and
creativity. Existential Culture, the organization exists to serve the needs of those in it. And, the
Power/club culture.A successful organization will attempt to adapt itself to the customers and not
force customers to adapt to its methods and procedures.
Knowledge, it is common sense that certain things cannot be accomplished without prior knowledge.
If an organization wishes to pursue a particular strategy or set of goals it needs people with the
relevant knowledge.
 SWOT ANALYSIS
The STRENGTHS of an organization are those things it does particularly well, especially when viewed
against the operations of its competitors, whereas it’s WEAKNESSES are areas in which it is less
strong that the competition. OPPORTUNITIES are those external factors where the organization can
use its strength to outclass the competition and THREATS are those factors from the external
environment from which the organization may suffer because of its weaknesses.
The goal should always be to aim for strategies that built on strengths, minimize weaknesses,
exploit opportunities and defend against threats.
 7S ANALYSIS
Structure is very often structure reflects the underlying culture of the organization, with an old-
fashioned hierarchy often having a very clear layered structure, and a task culture organization being
much more diffuse in its structure.
System linked to this will be the amount of freedom given to subordinates to make decisions and the
degree to which initiative is allowed and tolerated
Style is the main style of management used in the organization. Are the managers free to innovate
and to deal with customer issues without recourse to higher authority, or does the culture and
organization constrain their responses?
Staff is the person does the organization employed. Staffs are concerned with their attitudes and
readily they respond to change.
Skills relates to the actual tasks people carry out.
Strategy, where does the organization want to go and how easily will this be given the implications to
the other Ss?
The key point about this model is that the 7S are interlinked and that a change to one will require
changes to the others.
B. EXTERNAL ANALYSIS

 PESTLE ANALYSIS
Political factors include government policy, and the policy of international organizations if relevant, for
example the Europe Union and United Nations.
Economic, shareholders need to respond to changes in economic circumstances and the availability of
disposable income to customers will be a major consideration.
Social, society wants from the organization and effects of social trends. The move towards ethical
considerations may affect the relationship between an organization and its customers.
Technological, considered the impact of technology on customer service. In the reason of fast
moving world of technology that will affect the organization.
Legalis dealing with the laws. It is a legalissue that affects the relationship between an organization
and its customers.
Environmental is to reflect the growing public awareness of the environment. It is to know how an
organization operation affects the environment.
 STAKHOLDERS/PUBLICS who interface with the organization and consider their particular needs.
 COMPETITOR ANALYSIS will allow for a direct comparison between the organization and its current
competitors to see if there are any competitors whose strengths outweigh the organization or whose
weaknesses are less than those of the organization.
 SUPPLIERS are obviously very important as they form part of the value chain that leads to the
external customer.
 CUSTOMER ANALYSIS, there are three types of customers to consider:
1. Ex Customers, who are they and why are they no longer customers?
2. Current Customers, who are they and what do they value about the organization? Are there
any hostages?
3. Potential Customers are there any groups that could become customers and what steps can
the organization take to gain their custom?

And not forgetting, are there any existing or potential customers that the organization does not
want to be associated with? It might be that there are particular groups or types of customers that
might cause a public relations’ problem who might be just too demanding.

 ORGANIZATIONAL BODY LANGUAGE AUDIT should be undertaken. Sample form to rate is as

follow:
E (Excellence) S (Satisfactory) N (Not Satisfactory)
 Carrying out the various analyses will provide a vast amount of data. The acceptable strategy will meet
the needs of both organization and customer in that it delivers mutually acceptable quality at a cost the
organization can accept and at a price the customer is willing to pay. Such a strategy can only be derived
through a careful study of the customer