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    Traditional Marketing Vs Modern Marketing

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    Saurabh Kukreja
    The document discusses the differences between transactional marketing and relationship marketing. Transactional marketing focuses on single sales and short-term gains, while relationship marketing aims to develop long-term relationships with customers through trust, commitment, and mutual benefit.

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    Traditional Marketing Vs Modern Marketing

    Uploaded by

    Saurabh Kukreja
    2K views10 pages
    The document discusses the differences between transactional marketing and relationship marketing. Transactional marketing focuses on single sales and short-term gains, while relationship marketing aims to develop long-term relationships with customers through trust, commitment, and mutual benefit.

    Original Description:

    TM vs RM

    Original Title

    Traditional Marketing vs Modern Marketing

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    The document discusses the differences between transactional marketing and relationship marketing. Transactional marketing focuses on single sales and short-term gains, while relationship marketing aims to develop long-term relationships with customers through trust, commitment, and mutual benefit.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    2K views10 pages

    Traditional Marketing Vs Modern Marketing

    Uploaded by

    Saurabh Kukreja
    The document discusses the differences between transactional marketing and relationship marketing. Transactional marketing focuses on single sales and short-term gains, while relationship marketing aims to develop long-term relationships with customers through trust, commitment, and mutual benefit.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    Transaction Marketing v/s Relationship Marketing

    Sakshi Arora AMF-36 Shivani Gupta CMF- 08

    Transactional Marketing

    Transactional Marketing is also known as Traditional marketing. Transactional marketing mainly focuses on the single sale formula, pushing the sales through mass marketing and promotions of the product. Orientation on product features, rather planning for the longer run of the product in the market; it is based on the short time scale, with little or no emphasis on customer services. Employs pull technique, producing the product with quality as a primary concern, and satisfying the customers needs and wants without building any relationship with them. Transactional marketing focuses on maximizing the

    Transaction

    marketing definitely won't work for every business model. However, it makes sense when you're selling something that isn't going to be popular for long.

    For Example: Sales agent who

    is being given commission for each sale he makes. The sales man tries to persuade the customer to buy the product by describing the benefits of the product, and sales the product and then never gets back to the customer. If you were selling themed merchandise for a new movie, you probably wouldn't need to develop relationships with your customers. It's not likely they will want to buy any more merchandise when the movie isn't new anymore.

    ADVANTAGES
    Fast jumps in income for little upfront investment Cost Savvy For example, certain transactional marketing campaigns cost nothing more than a phone call or sending a flier out in the mail. Since it's a relatively inexpensive effort, marketers can make their marketing dollars stretch farther with transactional marketing campaigns. Extra time in finding and acquiring customers in the short term, boosting sales.

    DISADVANTAGES One and done concept Less recognition of brands Spend less time acquiring customer

    Relationship Marketing

    Intense rivalry led to shift from transactional marketing to relationship marketing.

    basis building and maintaining long term relationship between buyers and sellers based on trust and commitment

    elements - similar to personal relationships


    shared values, trust, mutual respect, mutual benefit, frequent communications, honest feedback, cooperation, flexibility, understanding, relationship commitment

    emphasis
    keeping existing customers forming and maintaining strong long-term ties
    social (friendship) economic ( joint investment) technical ( joint product development)

    basis
    communications, consultancy, conflict resolution, value added services, coordinated responsibilities, long term relationships

    Organizational Benefits Cheaper to keep existing customers than to attract new customers Reduced cost 80:20 rule Not all customers have equal value Lifetime value of customers

    Customer Advantages Overcome risk and ambiguity of complex services Confidence benefits

    Emphasis on all 6 market domains(especially customer retention)

    Relationship Marketing

    Emphasis on customer market domain(especially customer acquisition)

    Transaction Marketing

    Functionally-Marketing

    Cross FunctionallyMarketing

    Transactional v/s Relationship Marketing


    Marketing Strategy Continuum Time perspective Transactional Marketing Relationship Marketing Short term Focus i.e. single sale recruitment Marketing Mix Customers tend s to e more sensitive to price Quality of output(technical quality dimension) Long term focus i.e. retention to customer Interactive Marketing(supported by Marketing Mix activities) Less Sensitive

    Dominating Marketing Function Price Elasticity

    Dominating quality dimension

    Quality of Interactions(Functional quality dimension)grows in importance & may become dominant Managing the customer base(Direct approach) Real-time customer feedback system Interface of substantial strategic importance Internal marketing of substantial strategic marketing

    Measurement of customer satisfaction Customer Information System

    Monitoring market share(Indirect approach) Ad hoc customer satisfaction surveys Interface of no or limited strategic importance Internal marketing of no or limited importance to success

    Interdependency between marketing, operations and personal The role of Internal marketing

    THANK YOU

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