Deference of Traditional Marketing and Relationship Marketing

To understand more clearly the relationship marketing valves, let’s find out the differences between transactional marketing, one of the traditional marketing approaches and relationship marketing.

In terms of time focus and organization’s goal, transaction marketing expects they can quickly sell their products and services, thus they meet customers, introduce their products, negotiate the prices and close the deal. That is end of process and they quickly switch to other potential customers. For relationship marketing, organizations do not only want to sell products or service but they also want customers to be delighted about their products and services and intent to sell more to the existing customers. Thus, those type of organization target to not only sale but also a long-term and trust relationship with these customers in order to accompany them in a long journey and sell products and services during the long journey.

Due to the difference in targeting, the priorities for customer service are also put differently. Transaction marketing does not focus on making customer satisfaction after purchase and during the use of services, products. Meanwhile, relationship marketing regards customers service a key component in the business chain. As a result, the customer engagement is much higher for relationship marketing methods because customers are asked to provide feedbacks, they are understood, and they play important roles to making the products and service better and fitter to their needs.

Transactional marketing is a traditional marketing approach that focused on a single objective, and that is making the sale. Transactional marketing tactics include advertising and promotions exclusively geared towards immediate sales. It is based on short period of time, with little or no emphasis on customer service. It is a theory that includes low-price competition, cost cutting, promotion, return on investment etc. They also believe that they can gain market share with only price strategy.

Relationship marketing has broader, longer-term goals than transactional marketing. Relationship marketing focuses on developing long-lasting relationships with clients to secure sales well into the future. 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. When an organization seeks to establish and maintain a long-term relationship with its customers, it is known as Relationship Marketing. Because of constant contact with customer, the employees get to know the customer better, and having understood his expectations, offer improved service when he comes to them for repeat service.

Characteristics Transactional marketing Relationship marketing
Time focus Short term Long term
Organization goal Make the sale Emphasis on retaining customers
Customer service priority Relatively low Key component
Customer contact Low to average Frequent
Level of customer commitment Low High
Basis for seller – customer  interactions Conflict manipulation Cooperation, trust
Source of quality Primarily from production Companywide commitment
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