Transaction Marketing and Relationship Marketing
I have researched two different styles of dynamic marketing practices ‘Transaction’ Marketing and ‘Relationship Marketing’, depending on the kind of business (service) and products that you are selling. Also in addition, what type of customer (audience) you’re wishing to attract, including short and long term customer relations goals for business.
Transaction marketing (also known as Traditional marketing) is a business strategy that concentrates on single transactions or point of sale transactions. The emphasis is solely maximising the high turnover volume of stock and revenue of sales during a short time period. Some examples of organisations that use transactional marketing are Poundland, Lidi’s and Primark. Limited or no focus is centred on developing a relationship and relationship building with consumers or suppliers. However focus is given on making the sale, “the marketing process ends when the sale has occurred, the sale is the objective and the end result of the marketing effort.” (Brendt, Brink, 2009).
Relationship marketing is a marketing strategy from direct marketing campaigns rather then focus on one sales transaction. This encourages attracting customers, who shall return for repeat business consistently and remain loyal, that in the long term is a cost effective marketing tool to retain satisfied customers. Customer Relationship Marketing (CRM) is a process that builds customer relationships, customer loyalty and brand value and brand building by using long-term marketing strategies. Relationship marketing can include the use of Internet social networking media tools to create brand awareness, also to improve products on results of customer feedback. Pleas...
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Buttler, F (2009). Customer Relationship Management. Oxford: Elsevier.
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This book is important to business students because it shows that even the most seasoned executive runs into unexpected challenges and can find themselves in uncharted territory. Jim Barton’s experiences and lessons can be lessons for anyone. Any employee, whether they are support staff or a top executive, should always maintain an open mind and be ready to learn from a situation or the people around them at any time.
Ibid., 223. Zinn, People’s History, 220. Thomas C. Cochran and William Miller, The Age of Enterprise: A Social History of Industrial America, (New York: Harper & Row, 1961), 87. Cochran and Miller, The Age of Enterprise, 71-72. Zinn, People’s History, 220.
Meyer, David R. The Roots of American Industrialization. N.p.: JHU, 2003. N. pag. Google Books. JHU Press. Web. 29 Sept. 2013
Hooker, Richard. A. “The Industrial Revolution.” Posted June 6, 2014. 1999. The 'Secondary' of the 'Se Washington State University. 3 Feb. 2004 < http://www.wsu.edu:8080/dee/ENLIGHT/INDUSTRY.HTM >.
In line with the above discussion, it should be noted that there is a present shift in the world towards a view of the benefits of collaboration as opposed to the earlier understanding of competitive buyer-seller relationship (Ford, 1990, p. 542). Indeed, if reviewed from a relatively modest start, it can be easily seen that buyer-seller collaboration and relationship marketing has come to be the most valued asset of any company in the business marketing agenda as well as real business practice. Following the past four decades in which the marketing mix view was the most dominant of marketing activities in every aspect of marketing literatures, relationship marketing has gradually established itself as an alternative view of marketing scheme (Blois, 1996).
In the late 1800’s the socio-economic system within America began to change. There was a boom of commercial enterprise, which was a result of mass Industrialization. Banks, Railroads, and Factories seemed to sprout up in a matter of months. With the sudden change in enterprises there also came a shift in material longi...
There is a belief that firms have a different marketing approach depending on if the firm is trading services or goods. Service firms are assumed to have a more relational approach where they manage the whole buyer-consumer communication process while the goods firms are transactional. The main purpose of this study is to find out how firms relate to their markets and what the relative emphasis of these firms on transactional and relational aspects of marketing are.The study distinguishes the firm type by the most dominant type of product offered and the most dominant of customer
Grönroos, C. (2004). The relationship marketing process: communication, interaction, dialogue, value. Journal of Business & Industrial marketing, Vol 19, Issue: 2, 99-113.
Jones, G. R., & George, J. M. (2011). Contemporary management. (7 ed.). New York, NY: McGraw-Hill.
Furthermore, I will explain the application of theory relating to me and my purchase. I will also review the marketing activity of the organization where I purchased from. This is to explain how the two theories have been used in the marketing strategy. In addition, recommendations regarding how the marketing strategy could have been improved by applying the 2 buyer behaviour theories are given.
Hammond, J.L and Hammond, B (1937). The rise of modern industry. London: Methuen & Co . 162.
John A., 2009. Not Bosses but leaders, How to lead the way to success.3rd ed. London: kogan page.
Overall, these are all marketing strategies that can be utilized both locally, and on a larger scale. Two additional factors must also be considered when using effective marketing strategies. Determining areas where marketing will be most effective, as well as methods to organize and keep track of existing, and new clientele are imperative to successful
Marketing is a very broad term, which encompasses all the activities that help businesses in identifying their customers and needs of their target market, utilising all the communication resources in order to target their target market, eventually persuading them to purchase the organisations products and services. It is much broader than the concept of selling, as selling just includes techniques of direct communication used to persuade the customers to buy the products and services of an organisation. In fact, sales are the integral part of marketing. Marketing also helps organisations to utilise all resources in an efficient way to gain customer satisfaction, which will eventually help in the growth of the company. While, on one hand, marketers tend to focus on the needs and preferences of the customers, they also need to keep a close eye on their competitors (Gillespie, 2010). Companies always look to beat down their competition with providing better products and/or services, or by providing less-expensive goods to the customers than their competitors, in order to achieve or maintain the leading position in the industry. The core focus of this paper is to identify and discuss the core aspects how managers could maintain the marketing activities of the organisation in the global context.
Customer relationship management is a cross-functional process to achieve a continuing dialogue with customers, across all their contact and access point, with personalized treatment of the most valuable customers and to ensure customer retention and the effectiveness of marketing initiatives. It is also provide the chance for customers to interact with the brand.