Differences between Traditional Marketing and Relationship Marketing

Differences between Traditional Marketing and Relationship Marketing

Some of the most significant contrasts between the traditional approach of marketing  – which we term the transactional approach – and the emerging concept of relationship marketing are as given below.

The following table differentiates transactional or traditional marketing and the relationship marketing.

Points of DistinctionTransactional Marketing (Traditional Marketing)Relationship Marketing
1. World ViewManaging a Company's product portfolio, setting and modifying marketing mix parameters to achieve optimal 4 Ps.Managing a company's customer portfolio, building long-term business relationship.
2. Assessment PeriodShort durationLong duration.
3. Key concepts4 Ps, segmentation, branding etc.Interaction, relationships and networks
4. Marketing focusProduct / SeriviceProduct / Service and Customer.
5. Marketing goalCustomer acqisitionCustomer acquisition, customer retention and customer recovery
6. Marketing interactionOne-way communicationInteractive communication.
7. Promotion strategyNon-personal advertising, brand and image management.Personal interaction, developing identity as a reliable supplier.
8. Economic profit & Control parametersProfit, profit margin contribution, sales, costs.Additionally: customer profit contribution, customer value.
9. OrientationTowards single sales.Towards customer retention.
10. ContactIntermittent customer contact.Continuous customer contact.
11. FocusOn product featuresOn customer value.
12. QualityIt is the concern of the production staff.Quality is the concern of all.
13. CommitmentLimited commitment in meeting customer expectationsHigher commitment in meeting customer expectations.

One further significant difference between the transactional approach of marketing model and the relationship model is the wider view of the market that it adopts.

In order to build and sustain real customer value, it is important to recognize that relationships must be built with a number of important constituencies.This is called the ‘Six Markets’ model.

Leave a Reply




Recent Posts

Advertisement


Related pages


difference between continuous audit and periodic auditantedated checkthree examples of an opinion leadercpc calculatordisadvantages of wtoin privity of contractadvantages and disadvantages of marginal costingblueprinting servicescapex formadvantages and disadvantages of foreign investmentcauses of labour turnovercif vs fobdirect labor rate formulainductive deductiveaccidental sampling examplesmeaning of external recruitmentprofitability ratios calculation formulas and explanationsfutures market vs stock marketmaterial quantity variance formulawhat is the meaning of recurrent expenditureebit break evendebtors turnover ratio formulaautocratic leadership advantages and disadvantagesdefinition of direct labourcreation of agency by ratificationmergers and acquisition definitionstrengths and weaknesses of purposive samplingautocratic managernon bank intermediariesnpv limitationssalesperson responsibilitiesretail definition by philip kotlercalculating staff turnover ratemake or buy decision example accountingforward contract vs futures contractcluster sampling vs stratified samplingoperating gearing ratiodifference between shares and debenturesdisadvantages of hire purchasewhat does perpetual succession meanfree enterprise capitalism definitioncongeneric mergersvouching fordupont frameworkdecimal filing systemorigin of caveat emptoradvantages of a decentralised structurewhat is the purpose of business process reengineeringmeaning of consignor in hindiadvantages and disadvantages of random samplingadvantages and disadvantages of partnership firmwhat is the function of rbitarget costing approachreverse merger example in indiameaning of piece rateadvantage and disadvantage of mixed economic systemifcipremiums in sales promotionfinancial flexibility definitionexample of consumer cooperative society in indiasemi durable goods definitionredeemable cumulative preference sharescrystallisation meaningcif shipping costexamples of prestige pricingessentials of promissory notenominal wage definitiondepartmentalization meaningnonprobability samplessole trader wikiexample of congeneric mergerwhen is the corporate veil liftedfactors influencing buying behaviourbook rate of return formula