Transactional Vs. Relationship Marketing

In summary, marketing is very important for a business to achieve success. Many businesses have a difficult time in this area. With the stiff competition, businesses struggle to stand out among others. Other companies resort in unethical and unfair schemes just to win the competition. But eventually find themselves in great loss and failure. As businesses all over the world enter into a gigantic marketplace, every business owner is faced with convoluted market competition. Nevertheless, any entrepreneur can be different and become successful in this matter. In every product sold and in every service provided, patience and hard work should take precedence to ensure quality. Products and services should be marketed honestly, planning should not be done with evil

In this modern society, marketers have a desire to build a customer driven marketing strategy, in a view to creating lasting customer relationships, to do this they can use one of the five marketing management philosophies which consist of production, product, selling, marketing and societal, and finally marketing concept. The suitableness of these philosophies depends on the nature of the business and its target market. This report will discuss each of these philosophies for a particular product, with comparisons.

The following report is prepared as part of the assignment 2 required for the module Strategic Marketing of the BSc Degree in Business Management from the University of Wales.

Relationship Marketing – According to Abeysekera and Kumaradeepan’s study in the year 2012, relationship marketing can be used as a strategy to race in the market. Relationship marketing has been operationalized using the model of trust and commitment. The findings suggest a significant difference in "relationship marketing orientation" in state bank and private bank. Private Banks can be viewed as concerned with more relationship marketing than state banks.

7) The significance of the shift from transaction-based marketing to relationship marketing is that firms realize that just attracting customers to buy their products is not quite as important as establishing and maintaining relationships with them so that they will turn into loyal repeat customers. Relationship building begins early in marketing. It starts with what customers want and need, and then developing high-quality products to meet those needs.

The purchasing goods & services have throughout the years begun to lead to a new perception of consumer relationship and in ways businesses conduct their operations. Not only is a business concerned with the buying and selling of goods & services but to further maintain that relationship with their customers to correlate between both parties. As this being the prime functionality of businesses, each business must differentiate themselves with other businesses offering different and wholesome services, which overwhelms their competitors, thus adding their own individualistic value to the marketing

3.) Transactional marketing, in the perspective of luring the customer for a one off purchase, focuses strongly on price and short term benefits and product performance, with limited service. Relationship marketing is all about generating repeated sales and customer interactions, thus focusing on bringing value to the customer, and assuring long term performance and service, all aspects of quality become major concerns. Relationship marketing brings customer centricity to the spotlight. This vision has

An Analysis of Marketing As defined by Kotler and Armstrong (1994) marketing is “a social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others”. Marketing is an extensive topic. Primarily when we consider what is marketing we think about the advertising, publicity and selling of a product or service. In actual fact the prime concern of marketing is customers, and the establishment and growth of relationships between organisations and consumers. It consists of studying the wants and needs of the customers and how to make the perfect product which is priced, promoted and distributed in the right place to make it

The relationship marketing has the opportunity to satisfy the buyer as the seller which is the long-term relationship with the customers. This relationship help company to develop more interesting products to attract more attention and more revenue increasing economic opportunities to grow up to another area. For example, give discount coupon for employees of different companies could bring new clients and at the same time every new client could bring their relatives creating a big relationship

For my project I will explain what relationship marketing is. Relationship marketing is different from any other form of marketing. The reason for this is that relationship marketing identifies the long term value of customer relationships and relationship marketing extends communication beyond intrusive advertising and sales promotional messages. Relationship marketing is an arrangement where both the buyer and seller have an interest in providing a more satisfying exchange. Also I will explain what the benefits are of relationship marketing to a business and to a customer. I also will explain the CRM stages, segmentation, technology in relation to relationship marketing and I will do a case study. I am looking at Boots for my case study. I will explain how Boots have managed to build valuable relationships with its customers.

Kotler defines marketing as “a social and managerial process by which individuals and groups obtain what they want and need through creating, offering, and exchanging products of value with others.” his view on marketing looks at marketing being more of an exchange process. [Kotler, 1991]

Prof. Tousely state marketing information is “ the relevant fact used in making marketing decision”. Marketing decision should be made in timely manner because it may not be possible to solve today’s problem with yesterday’s solution.

5. RELATIONSHIP MARKETING: In this competitive era, companies are always looking for ways to develop and maintain a long lasting relationship with customers, employees and even suppliers. Relationship marketing is two way traffic; it goes beyond just making ‘sales’ and companies are beginning to realize. Good relationship with customers is a strategic weapon for any company, this is because long term customers buy more, do referrals and give back valuable and truthful feedback. Keeping a customer requires an extra effort. According to the founder of Walmart: “There is only one boss, the customer, and he can fire

This is one of the reasons why there has been a gradual shift towards a relationship-approach. Harker et al. (2006a) quoted the American Marketing Association, to have followed the same approach when it gave the definition of marketing as a business functions and a set of procedure to establish, communicate and provide value to its customers and to manage customers’ relationships in such a way that it is mutually beneficial to all stakeholders. It is now clear however, the shift towards a longer-lasting and more profitable marketing approach from a product-based marketing approach has a better chance of sustainability over longer periods as it is more business-orientated. Relationship Marketing Relationship marketing has been seen during the last decade of the 20th century, as the prevailing thought in developing a marketing scheme both in industrial marketing and consumer marketing (Tseng, 2007) in (Kibeh, 2013). The initial appearance of the phrase ‘relationship marketing’ in the marketing literature was in late 1970s and early 1980s through the research of Dwyer et all (1987) and Berry (1983ab) among

Transactional marketing is based upon the 4Ps: product, price, placement, and promotion. The focus is upon the 'point of sale' and maximizing the value from the transaction rather than upon the characteristics of the buyer. Through market research, the company creates a product that meets a consumer's projected unmet needs, at a price point desired by the likely consumer, positions or places the product in the market in a desirable fashion relative to competitors, and finally promotes it in an engaging fashion that makes it 'stand out.' "For example, ask why your target audience needs a particular feature. What if you drop your price by 5%? What if you offer more colors? Why sell through wholesalers rather than direct channels? What if you improve PR rather than rely on TV advertising?" (Manktelow & Carlson 2012).