Q3 - POM - Module 3
Q3 - POM - Module 3
PRINCIPLES OF
MARKETING
Quarter 3 – Module 3
Value of Customer and Differentiate
Strategic and Marketing Planning
NegOr_Q3_Principles of Marketing12_Module3_v2
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NegOr_Q3_Principles of Marketing12_Module3_v2
Introductory Message
This Self-Learning Module (SLM) is prepared so that you, our dear learners,
can continue your studies and learn while at home. Activities, questions,
directions, exercises, and discussions are carefully stated for you to
understand each lesson.
Each SLM is composed of different parts. Each part shall guide you step-
by-step as you discover and understand the lesson prepared for you.
Pre-tests are provided to measure your prior knowledge on lessons in each
SLM. This will tell you if you need to proceed on completing this module or if
you need to ask your facilitator or your teacher’s assistance for better
understanding of the lesson. At the end of each module, you need to answer
the post-test to self-check your learning. Answer keys are provided for each
activity and test. We trust that you will be honest in using these.
In addition to the material in the main text, Notes to the Teacher are also
provided to our facilitators and parents for strategies and reminders on how
they can best help you on your home-based learning.
Please use this module with care. Do not put unnecessary marks on any
part of this SLM. Use a separate sheet of paper in answering the exercises
and tests. And read the instructions carefully before performing each task.
If you have any questions in using this SLM or any difficulty in answering
the tasks in this module, do not hesitate to consult your teacher or
facilitator.
Thank you.
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This module was designed to provide with fun and meaningful opportunities for
guided and independent learning at our own pace and time. You will be enabled to
process the contents of the learning resource while being an active learner.
In this lesson discusses how to build and maintain the customer loyalty despite the
fast-changing market. To communicate value to our customers, we have to understand what
value really is, and more important, what is not.
Pre-assessment:
Directions: Read each item carefully. Write True if the statement is true and False if it is not
true. Write your answers on your activity notebook.
1. Satisfaction is the measure off how well customer expectations from a purchased product
or service have been met.
2. Demand refers to the value of customer’s place on a product or service.
3. Wants are more psychological indicating preferences that can improve the consumer’s
life condition.
4. Customer value is the satisfaction felt by a customer immediately after making purchase
relative to what has actually been given up to receive them.
5. Customer loyalty is founded on excellent customer services.
6. The creation of customer value does not rely on marketing alone.
7. A key factor in relationship marketing is not a customer loyalty.
8. The levels of customer value indicate what the customers expect and do not expect from
their purchased decisions.
9. Unanticipated customer value pertains to an unexpected purchase or service experience
that may go beyond what the customer desire.
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10. Strangers are customers whose needs do not fit the company’s offering.
’s In
Task 1
Match column A with column B the services/ product each companies offered
to their valued customers.
Column A Column B
’s New
Task 2
Caselet:
Nike + and the Active Lifestyle
In 2010, the global sports brand Nike developed technologies that allow users to live an
active lifestyle and keep track of their performance in their respective sports. Nike organized
a Digital Sport division which created applications that help its customers maintain in active
life.
Nike also launched an online platform, Nike+, where users can sign up to access various
applications. Two of the popular applications in the Nike+ platform are Nike+ Training Club
and Nike Run Club.
The Nike+ Training Club serves as an online personal trainer. It features more than 100
workout videos of Nike trainers and athletes. The application can also create a personalized
training plan adapted to the user’s lifestyle.
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The Nike+ Run Club helps users engaged in the running lifestyle prepare for races and
track their progress. The application provides accurate details about pace, distance, routes,
and personal records. Users also get personalized coaching and are able to share their
training journeys with fellow runners.
Discussion Questions
is It
Customer value is defined as the satisfaction derived from what a customer may
experience or expect by choosing a particular action relative to the cost of that action. The
action can be a purchase, a visit, an order, or a sign up. The cost refers to anything that can
be given up to receive the desired product or service which can be in the form of money,
time, knowledge, data or others.
The levels of customer value indicate what the consumer expect and do not expect
from their purchases.
Basic and expected levels. These levels include the basic requirements of conducting
a business. For instance, restaurants are expected to have a spacious dining area and clean
tables and utensils. If these requirements are not met by the business, it cannot provide high
quality customer value.
Desired customer value. This involves what the customers want from the purchase
or service experience. This is the first opportunity for a business to get ahead of the
competition. For example, a retail shop can provide friendly and helpful staff who can assist
the customers in making the right choices.
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Strangers – are customers whose needs do not fit the company’s offerings. The
company does not need to invest and exert effort to win them .
Butterflies-as the name implies, are not loyal to specific brand because they keep on
looking for the best deals which may lead to patronizing other brands. The company can
enjoy profits from these customers only for a short period.
True friends- have needs that match the company’s offerings. They make repeat
purchases and patronize the brand as long as it satisfies their needs. The company must
invest in these customers and strengthen its relationship with them.
Freeloaders- are loyal but not profitable because of the limited fit between their
needs and the company’s offering. For example, a few customers of a salon patronizes its
services regularly but do not generate enough profit to sustain the maintenance costs, it can
earn only if it raises the prices of its services.
2. Offer customer rewards. Customer loyalty programs, which include special discounts,
freebies, perks, may work well for various types of products and services. These encourage
customers to remain loyal to the brand because they are rewarded for their patronage.
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3. Conduct special events and provide sponsorship. Companies can hold or sponsor
parties, concerts, contests, and the like to boost interaction among loyal customers and
company representatives.
4. Enhance customer service. Some company outsource their services to third party
organizations to cater complaints and inquiries, promote their latest offerings and provide
technical support.
5. Utilize languages to reach a wider customer base. Marketers can create promotional
materials in different languages to cater specific regions. Consumers can also now choose
the language they would like to use to communicate with customer service representative.
The success of our home grown companies lies not just on their offerings but also on their
customer service. Local business now utilizes customer service tools that fit our customer-
oriented culture and extensive technology usage.
1. Email and SMS – also help businesses communicate with their clientele more easily as
most consumers regularly check their inboxes.
2. Social Networking sites – aside from their primary function of connecting people, have
become a channel for netizens to ask for customer support. Telecom Companies promptly
responds to inquiries and complaints on social media and redirects the customer to the site’s
private messaging system for further assistance.
3. Live chat support – facilitates real time correspondence between customer and the
company representative.
’s More
Task 3
Directions: Read and understand the following questions. Write your answers on
your activity notebook.
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I Have Learned
Task 4
Directions. Write a short reflection on your activity notebook.
What is the value of customer to you? Narrate your personal experience indicating
what you expect as a customer and indicate what level of customer value where you are at
that time.
I Can Do
Task 5
Directions. Give what is asked and write your answers on your activity notebook.
Select five persons in your family and ask them to talk about the value of their mobile
phones and their satisfaction with them. Compare their answers and from the perspective of a
cell phone company’s marketer, develop five marketing strategies based on their feedback.
Rubrics
Level of Achievement General Approach Comprehension
Exemplary •Addresses the task. •Demonstrates an accurate and complete
(15 pts quizzes) •States a relevant, justifiable understanding of the task.
answer. •Backs conclusions with data and
•Presents arguments in a logical warrants.
order. •Uses 2 or more ideas, examples and/or
arguments that support the answer.
Adequate •Does not address the task •Demonstrates accurate but only adequate
(10 pts quizzes) explicitly, although does so understanding of task because does not
tangentially. back conclusions with warrants and data.
•States a relevant and justifiable •Uses only one idea to support the answer.
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I. Directions: Identify what is asked in each item. Write the letter of the correct answer on
your notebook.
1. This is a type of customer who is not loyal to the brand because he or she keeps looking
for the best deals which may lead to patronizing other brands.
A. stranger C. true friend
B. butterfly D. freeloader
2. Recent research has shown that ____________ prove to be more profitable than ordinary
customers.
A. loyal customers C. freeloader
B. freeloader D. strangers
3. Facilitates real-time correspondence between the customer and the company
representative.
A. email and sms C. live chat support
B. social networking sites D. mobile applications
4. This is a type of customer whose needs match the company’s offerings.
A. stranger C. butterfly
B. true friend D. freeloader
5. This refers to anything that can be given up to receive the desired product or service.
A. cost C. needs
B. value D. wants
6. This is a type of customer on whom companies need not to invest because his or her needs
do not match the companies’ goods or services.
A. stranger C. true friend
B. butterfly D. freeloader
7. Given the amount of time people spend on using their smartphones, companies know that
creating ______________ increases their visibility and provides value to their customers.
A. live chat support C. social networking sites
B. mobile applications D. email and sms
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8. Most of the companies provide a _____________ that customers can call for inquiries,
concerns, and technical support.
A. mobile apps C. social networking sites
B. social media apps D. customer hotline
9. It pertains to an unexpected purchase or service experience that may go beyond what the
customers desire.
A. desired customer value
B. basic and expected levels
C. unanticipated customer value
D. customer value
10. This is a type of customer who are loyal but not profitable because of the limited fit
between their needs and the company’s offerings.
A. freeloader C. true friend
B. butterfly D. stranger
Self- Reflection
In availing a particular service, when do you say that you got your money’s worth or
that it is sulit? Reflect on the time you availed of a service and felt that you did not get your
money’s worth.
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References
Book:
Zarate, Cynthia. Principles of Marketing. Quezon City: C & E Publishing , Inc., 2017.
Website:
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Pre-assessment:
Directions: Read each item carefully. Write True if the statement is true and False if it is not
true. Write your answers on your activity notebook.
1. The strategic marketing process seeks to establish a clear and concerned direction for
all marketing activities of an organization.
2. Strategic marketing will always come first because it shows where the company wants
to go in terms of growth and in relation to its competitors.
3. A company should not only win customers today, but win them for life.
4. Marketers should find ways to retain customers by always keeping them satisfied and
happy with the company’s product and services.
5. Customer’s does not create the demand of products and services.
6. Marketing may be the <lifeblood= of an organization, but it cannot exist
independently of other organizational functions.
7. The demand for a company’s products and services is affected by the nature and
intensity of the competition.
8. The product development strategy is the development of new products with the
purpose of increasing sales.
9. Marketers should not be afraid to fail, but be brave enough to stand up and take the
challenge of leading the company to success.
10. When customers are satisfied with a product, their negative feedback and
recommendation is a form of promotion.
’s In
Task 1
Read the selection below and answer what is being asked. Write your
answer on your activity notebook.
Some companies market their products without first identifying their target market.
After several months of operation, they profile their customers and classify them
geographically, demographically and psychographically. The most recurring profile of the
customers is defined as target market.
Processing Question:
1. Is this workable? Why or why not?
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is It
People have used the terms <strategic marketing= and <tactical marketing=
interchangeably, confusing their meanings. However, there is a clear difference between the
two terms.
Strategic marketing expresses the goals of the organization that are achieved
through marketing efforts, while tactical marketing expresses the specific activities that are
needed to achieve the goals of the organization.
Strategic marketing is defined as the general plan of action with the company vision
and goals. This is carefully thought-out course of action developed for the purpose of
achieving a desired result such as profitability and high productivity. It puts heavier
emphasis on external environmental scanning to develop strategies to respond to
environmental forces that that confront the company. It is the thinking process that outlines
the course of action towards the achievement of a goal. Strategic marketing has longer time
frame, usually three to five years. One type of marketing strategy is to offer more expensive
and branded products to a small number of loyal customers. Another strategy is to offer
different products, from cheap to more expensive ones, catering to different types of
customers.
For strategic marketing to work, marketers should determine the objectives the
company wants to achieve and how the outcomes will be measured. There must be a starting
point to determine where the company is right now and where it wants to go.
According to Lambin (1993), the role of strategic marketing is <to lead the firm
towards attractive economic opportunities, that is, opportunities that are adapted to its
resources and know-how and offer a potential for growth and profitability.=
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Strategy Marketing
evaluation strategy
and control development
Cost Leadership
This is a strategy primarily for achieving low-cost leadership among industry
competitions. Cost leadership can be achieved through low-cost supply contracts, overhead
expense control, economies of scale, and comprehensive cost-cutting efforts, among others.
Example: While 16= desk fan ordinarily retail for P1,000.00 a local appliance brand is
able to market the same at P635.00 through mass production.
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Differentiation
Differentiation seeks to achieve superior product attributes and features that are
different from industry competitors. This result pronounced consumers preference for the
company’s products.
Example: A mobile phone brand introduces its version of the smartphone that does
not have a keyboard but is activated and controlled by thought.
Focused
Efforts are concentrated on a relatively small but profitable market. The development
of products and services primarily ensures that the needs and wants of this market are
addressed and that satisfaction is provided.
Example: A convenience store that concentrates on the very high-end niche market
by converting its operations into convenience stores with superior customer service, selling
purely imported and highly quality products and gourmet food prepared by resident’s chef.
Cost leadership, differentiation and focused strategies are implemented through the
following sub-categories:
1. Forward integration
This involves gaining ownership or increased control over distribution of retailers.
Example: A known newspaper company buying 418 newspaper stands in Metro
Manila
2. Backward integration
This involves gaining ownership or increased in control over supplies.
Example: A consumer goods company in the Philippines purchasing a cow farm and
dairy facility in General Santos City.
3. Horizontal integration
This involves purchase of or increased control over competition.
Example: A pizza company buying a controlling interest in another pizza company.
4. Market penetration
The objective of this strategy is to increase market share of current products or services in
current markets through greater and more intensive marketing efforts.
Example: A doughnut company launching a P56 million advertising campaign
directed at current customers.
5. Market Development
This strategy involves the introduction of existing products or services into a new
geographical area or market.
Example: A private learning institution opening a new campus in Cebu City.
6. Product development
This strategy involves the improvement of current products or services or the development of
new product with the purpose of increasing sales.
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In writing the marketing plan, one should indicate the marketing tactics needed to
achieve the marketing strategy. These tactics must cover the factors that address consumer
needs and wants: product, price promotion place, people, process, and physical evidence.
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In writing the marketing plan, one should indicate the marketing tactics needed to
achieve the marketing strategy. These tactics must cover the factors that address consumer
needs and wants: product, price promotion place, people, process, and physical evidence
3. Identify how the success of the tactics will be measured. Outline how to evaluate the
effectiveness of the tactics by setting goals and benchmarks. This will help in implementing
changes or improvements on the tactics. For example, one of the tactics of a start- up shoe
business is to participate in bazaars to introduce the brand to the market and generate leads.
The measure of the tactic’s success maybe a specific number of customers or pairs of shoes
sold during the event.
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Post regular updates March 1- 30, 2021 Asiana Post at least twice a
about a the product ( 30 days before the week. Aside from the
launching on the launching) company’s own
company’s social content, share also
media pages. reviews and blog
posts of online
influencer about the
product.
Strategic marketing will always come first because it shows where the company wants
to go in terms of growth and relation to its competitors. Tactical marketing consists of the
activities needed to implement the strategies. In short, strategic marketing is the idea and
tactical marketing is the action.
Example:
Tactical Marketing : The company participated in different sports tournament with partners
where exposed to a global audience.
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’s More
Task 2
Directions: Read and understand the following questions. Write your answers on
your activity notebook.
Have Learned
Task 3
As a marketer, which of the two should be given more emphasis, strategies or tactics? Why?
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I Can Do
Task 4
Directions. Give what is asked and write your answers on your activity notebook.
Think of three popular brands. What could be the reasons why they became popular?
What could their strategies be? Their tactics?
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I. Directions: Identify what is asked in each item. Write the letter of the correct answer on
your notebook.
1. It is defined as the general plan of action which is aligned with the vision and goals of the
company.
A. tactical marketing C. strategic marketing
B. segment marketing D. target marketing
2. It refers to the actions a company or firm undertake in order to execute a marketing
strategy. It also refers to detailed action program covering a shorter period.
A. strategic marketing C. undifferentiated marketing
B. tactical marketing D. concentrated marketing
3. A bank opening a chain of ice cream parlors is an example of ____________.
A. product development C. market development
B. market penetration D. unrelated diversification
4. A mobile phone brand introduces its version of the smartphone that does not have a
keyboard but it is activated and controlled by thought.
A. Cost leadership C. Focused
B. Differentiation D. none of these
5. This strategy involves introducing new but not related products or services.
A. unrelated differentiation C. product development
B. market development D. forward integration
6. The objective of this strategy is to increase a market share of current products or services
into a new geographical area or market.
A. product development C. forward integration
B. backward integration D. market development
7. A pizza company buying a controlling interest in another pizza company is an example of:
A. market penetration C. horizontal integration
B. product development D. none of these
8. This is a strategy primarily for achieving low-cost leadership among industry competitors.
A. Differentiation C. Cost leadership
B. Focused D. Market segmentation
9. A sequential series of marketing activities.
A. feasibility study C. work week plan
B. action plan D. all of the above
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10. A shopping mall selling off its hardware department and laying off 847 of its department
store employees is :
A. divestiture C. insolvency
B. retrenchment D. liquidation
Self- Reflection
Think of a particular product or service that you would like to offer to your friend.
Use a strategy and some specific tactics your friend to buy it.
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