Transactional Vs Relationship Approach

TRANSACTIONAL Vs RELATIONSHIP APPROACH

As marketing has entered the 21^st Century, a significant change is taking place in the way companies interact with customers. The traditional view of marketing as a simple exchange process—a concept that might be termed transaction-based marketing—is being replaced by a different, longer-term approach.

Transactional marketing strategies focused on attracting consumers. The goal was to identify prospects, convert them to customers, and co realize that, although it remains important, attracting new customers is truly an intermediate step

in the marketing process. Marketing efforts must focus on establishing and maintaining mutually beneficial relationships with existing customers. These efforts must expand to include suppliers and employees, as well.

The concept, called relationship marketing, refers to the development, growth, and maintenance of long-term, cost-effective exchange relationships with individual customers, suppliers, employees, and other partners for mutual benefits. It broaches the scope of external marketing relationships to include suppliers, customers, and referral sources. In relationship marketing, the term customer takes on a new meaning. Employees serve customers within an organization as well as outside it; individual employees and their departments are customers of and suppliers to one another.

They must apply the same high standards of customer satisfaction to inter-departmental relationships as they do to external customer relationships. Relationship marketing recognizes the critical importance of internal marketing to the success of external marketing plans. Programs that improve customer service inside a company also raise productivity and staff morale, resulting in better customer relationships outside the firm.

Relationship marketing gives a company new opportunities to gain a competitive edge by moving customers up a loyalty hierarchy from new customers to regular purchasers, then to loyal supporters of the company and its goods and services, and finally to advocates who not only buy

the company‘s products but recommend them to ot loyal ones, companies generate repeat sales.

The cost of maintaining existing customers is far below the cost of finding new ones, and these loyal customers are profitable ones. Effective relationship marketing relies heavily on

information technologies such as computer d preferences, and lifestyles along with the increase of electronic communications. This

technology helps companies become one-to-one marketers that gather customer-specific information and provide individually customized goods and services.

The firms target their marketing programs to appropriate groups, rather than relying on mass-marketing campaigns. Companies who study accordingly gain distinct competitive advantages.

1.THE KEY POINTS ARE AS FOLLOWS..

•      Transactional   marketing,   which   was   develop

•      Transactional marketing main concept which cent borden in 1964.

•      The marketing mix has since been describe planning and implementation of marketing s

•      The focus on transactional marketing is shifting to focus on relationship marketing.

•      The firms make the market fall by providing consumer packaged goods at one extreme and the services at the other.

•      In this situation all the firms are forced to adopt from transactional to relationship approach.

•      Transactional marketing approach is on individual transaction and does not concern continuous relationship with customers.

•      Transactional marketing does not contain a strategic long term perspective.

•      The relationship marketing focuses on continuous multiple transactions rather than isolated individual transactions.

•      It also considers customer as insiders to the business and aims to build a long term and never-ending relationship with them.