Transactional Marketing definition example relationship marketing Comparison Relation between two approaches

1. TRANSACTIONAL
MARKETING
VS RELATIONSHIP
MARKETING
Submitted by
Joydeep Singh
191103

2. TRANSACTIONAL MARKETING
Business strategy that focuses on single, "point of sale" transactions.
The emphasis is on maximizing the efficiency and volume of
individual sales rather than developing a relationship with the buyer.
Product -- Creating a product that meets consumer needs.
Pricing -- Establishing a product price that will be profitable while still
attractive to consumers.
Placement -- Establishing an efficient distribution chain for the
product.
Promotion -- Creating a visible profile for the product that makes it
appealing to customers.

4. RELATIONSHIP MARKETING
Process of continued interactions with the customer through multiple
touch points and channels, so as to build a bond between customers
and the organization.
The emphasis is not on acquiring new customers but on keeping
existing customers happy and satisfied and resulting in an expanded
customer base.

5. LAYS– RELATIONSHIP MARKETING
Lay’s runs an annual contest called “Do
Us A Flavor,” where they invite
customers to submit ideas for new
flavors of their chips.
Customers can then vote on flavors
that make the shortlist, via social
media.
The winning flavor gets added to the
Lay’s flavor lineup, and the customer
who suggested it receives a substantial
cash prize.

6. COMPARISON
BASIS TRANSACTIONAL
MARKETING
RELATIONSHIP MARKETING
Time Orientation Short Term Long Term
Customer Contact Low Frequent
Stresses on Gaining new customers Customer Retention
Objective To make the sale or get the
order
To be the sole or preferred
supplier
Centers on Undertaking transaction Building Trust
Nature of Relationship Short and Intermittent Long and Strong
Organizational goal Make sale Retain Customer
Quality source Production Company wide
Seller-Customer
Interaction
Conflict Manipulation Cooperation and Trust
Service priority Low High

7. COMBINING THE TWO
APPROACHES
The first point of commonality is the customer.
The customers that are pulled in through transactional marketing can
be nurtured through relationship marketing.
Customers who are nurtured through relationship marketing can be
convinced to make another purchase in a transactional way.

8. THANK
YOU