Transactional Vs. Relational Marketing | gtfd.info
Relationship Marketing is a relatively new concept in marketing. The concept is catching more attractions by organizations day by day because of the longevity. RM, as opposed to traditional transactional marketing, can be seen as opposite ends of a continuum. The distinctions between transaction marketing and RM. Whether you choose a transactional or relational marketing campaign Relational marketing attempts to create a relationship between the customer and the.
Some product companies never had direct relationships with their customers before the proliferation of the Internet and social media. The stores that carried their products exclusively built and maintained the client relationships. Now, manufacturers are reaching their customers more directly, branding and building relationships through interactive and educational features on their websites, blog articles and posts on their Facebook pages. Retaining Customers When your business is moving product, it may be tempting to put all resources into marketing tactics that bring immediate results.
However, when you consider that acquiring new customers can cost as much as five times more than retaining current customers, according to Emmett C.Transactional Selling vs. Relationship Marketing
Murphy and Mark A. A applicable example of a transactional marketing campaign is a sales presentation for a time-share vacation home.
Relationship Marketing Vs Transactional Marketing
The salesperson concentrates only on closing the sale. Relational Marketing Relational marketing attempts to create a relationship between the customer and the salesperson or business.
Because of the relationship, customers will feel a loyalty to the business and return for future purchases. Relational marketing is important for large purchases like purchasing a car or home, but pure relational marketing runs the risk of building a relationship without closing the sale. Appropriate Use Transactional marketing is most appropriately applied to one-time purchases where a hard sell is necessary to close the sale.
For a one-time sale, there is no expectation that the customer would return for repeat business, so closing the sale with a hard sell is possibly the best choice.
With RM the emphasis switches to developing a longer-term and more interactive set of relationships between the marketer and customer based on partnership and sharing. Although transactions and immediate satisfaction are still important to both parties, in RM the success of the exchange is the extent to which both parties benefit thorough co-operation and agreement.
Transactions cease to be negotiated each time and become part of a longer-term routine. The outcome of successful relationship marketing is the development of solid, dependable supplier—customer relationships which form the basis of a marketing network and represent a valuable marketing asset.
By so doing, the bureaucratic process of sending out enquiries, receiving quotations, placing the order and following up the order can be short circuited. RM, as opposed to traditional transactional marketing, can be seen as opposite ends of a continuum.
Relationship Marketing vs. Transactional Marketing
The distinctions between transaction marketing and RM already highlighted, together with additional key areas of difference are summarized by Kotler et al.
We can see from this table that relationship and transactional marketing are different in several respects. But why has RM emerged and what has given rise to this paradigm shift in the concept of marketing?
However, as Lancaster and Massingham12 point out, the growth of RM has more pragmatic causes. Put simply, they assert, both marketer and customer have increasingly recognized that relationship marketing, and in particular the requirements needed to develop effective relationship marketing such as the building of strong trust and confidence between the two parties, the exchange of information and effective communication, and mutual support, simply makes good sense.
In particular, this commonsense approach concerns the building of strong trust and confidence between the two parties, the exchange of information, effective communication and mutual support, and this can only be good for business relationships. For example there is a whole network of parties involved in the chain of supply, manufacture and marketing including raw material suppliers, suppliers of finance, distributors and intermediaries and a whole array of service agencies like advertising and market research agencies.
- Relationship marketing and transactional marketing compared and contrasted Marketing Management
- Relationship Marketing Vs Transactional Marketing
- Transactional Vs. Relational Marketing
The suggestion is that we plan marketing strategies around the whole network of supply and marketing. Perhaps this explains why RM first began to emerge in B2B markets, where it was readily seen to make good commercial sense in terms of improving customer retention rates.