Transaction oriented marketing and relationship

Relationship Marketing vs. Transactional Marketing

transaction oriented marketing and relationship

Orientation – The business orientation strategy of transactional marketing concerns on product essential roots, where as marketing relationship business. Relationship Marketing is a relatively new concept in marketing. The concept is catching more attractions by organizations day by day because of the longevity. An alternative to the transactional model, relationship marketing, emphasizes customer retention and future interaction with the company. There are advantages.

What Is Transaction Orientation Marketing? | omarcafini.info

The overall intent of relationship marketing, otherwise known as customer relationship marketing, is to forge solid, emotion-centric customer connections to a brand that can yield ongoing business, free word-of-mouth promotion and data feedback from customers capable of generating leads.

When we look at the transactional model, we see that the return on customer acquisition cost may be insufficient; a customer may be convinced to choose that brand one time, but devoid of a powerful relationship marketing strategy, he or she may not return to the brand in the future. Implementing a Relationship Marketing Strategy Based on the tenets of Customer Experience Management CEMrelationship marketing focuses on improving customer interactions to nourish better brand loyalty.

Indeed, these interactions can still take place over the phone or in person, but much of relationship marketing and CEM has taken to the Internet. Modern day relationship marketing encompasses creating simple two-way communication between customers and the companies, tracking customer activities and providing tailored data to customers based on those activities.

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  • What Is Transaction Orientation Marketing?

The Flip Side of the Coin: Product — Developing a product that meets consumer demands. Pricing — Establishing a price for the product that balances the fine line between profitability for the manufacturer and affordability for the consumer.

Placement — Determining and implementing an efficient distribution chain for the product. Promotion — Creating a visible profile for the product, rendering it appealing to clientele.

Relationship Marketing vs. Transactional Marketing | Your Business

Though the main disadvantage of the relationship-based model being its relatively expensive approach, fostering ongoing interaction with buyers through Customer Relationship Management strategies typically improves Return On Investment ROI in the long run. For example, customers who have to get in their cars and drive to your small business then stand in line and pay cash only will find the purchasing process far less convenient than those who can jump online and buy direct from your website.

Anything that increases the number of ways a consumer can buy your product, or reduces the effort required to make that purchase, is a viable transaction oriented marketing method.

transaction oriented marketing and relationship

Problems The main problem with transaction oriented marketing is its unabashed treatment of the customer as a source of revenue and little else.

When used as a primary or sole small business marketing strategy, transaction oriented marketing demonstrates a lack of concern for customer service, customer relations and future loyalty and can leave a small business with a huge number of former customers who no longer patronize the company.

transaction oriented marketing and relationship

When used as a part of a larger strategy, some of these issues are eliminated since the marketing message changes for repeat customers and the experience can be altered to provide more of what the long-term customer expects. About the Author Robert Morello has an extensive travel, marketing and business background.

Relationship Marketing vs. Transactional Marketing

Some relationship marketing strategies including branding, customer service training, community and media relations, social media, newsletters, blogs, referral programs and frequent buyer incentives.

These marketing efforts are investments in the promise of long-term sales. Face-to-face interaction is less frequent, and many more services and product transactions are occurring behind a computer screen. With a few clicks on their keyboards, clients can access a world of information that influences their purchase decisions, making the client relationship more important than ever.

Transactional Selling vs Relationship Selling

While the Internet has reduced face time with clients, it has provided more and different avenues to develop relationships with current and prospective clients. Some product companies never had direct relationships with their customers before the proliferation of the Internet and social media.