Transactional Vs Relationship Marketing

1. Transactional Vs Relationship
Marketing
Transaction Relationship
One off Exchanges Focus Ongoing Exchanges
Brand Management Customer Management
Short-term focus Time perspective Long-term focus
Mass Communication Personal
Isolated market research Feedback Ongoing dialogue
Market Share Criterion for success Mind Share
Profitability of transaction Critical metrics Lifetime value of customer
Brand Equity Customer Equity

2. Brand Equity and Customer Equity
• Brand Equity- value of having a well known brand name
o High Quantitative Equity-Profit margins and market share
o Low Qualitative Equity- associations of interest
• Customer Equity- value of customer base in terms of future
revenues
o Value Equity- customer assess the value of products and services
o Brand Equity- customer assess the value of the brand
o Retention Equity- tendency of customer to stick with the brand

3. •Rihanna needs convenience on her
side, as it facilitates an easy transaction
•Big box retailers, iTunes, Rhapsody,
Verizon, etc.
•Ticketmaster
Transactional
Vs Relational
•Dave Matthews have developed close relationship
with their customers over the course of many years
•offers a wide range of products only through their fan
club and their own website
•provides a high amount of fidelity(loyalty)