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


Related pages

defination of elasticity of demandnon redeemable preferred stocksebi rulesaccounting conventions and conceptsprofit motive definedefine urbanizationwhat is the meaning of amalgamationallotment of securitiesmeaning of payback periodaverage collection period ratio formulawhat is causing the increase in urbanizationvarious branding strategiesformat for precis writingappose toalphanumeric filing systemcif shipmentadvantages of computerized accounting systemadvantages of caste systemrbi role and function pdfwhat is the meaning of nsevoluntary winding up of companyduties of bailordebtors ratio formulaadvantages of market segmentationwhat is the meaning of mercantilebailment contractdemerit bandadvantages and disadvantages of stratified sampling methodattornment definitionconstraints of e commercedefine sales forecastingforex transactionsshipping terms fob cifopinion leaders in consumer behaviourroles and responsibilities of managerial economistbills receivable accountadvantages and disadvantages of centralized and decentralized purchasinga high receivables turnover ratio indicatesfranchising advantagescharacteristic of perfect competitiontypes of plant layout with examplesquick ratio acid test ratiomixed market economy advantages and disadvantagesadvantages and disadvantages of office automation systemadvantages and disadvantages of socialist economydefinition capexdistinguish between advertising and sales promotiondischarge of negotiable instrumentsaverage inventory turnover formuladisadvantages of hrpprepare a sales budgetimportance of probability samplingautocratic leadership style disadvantagesdefinition of zero based budgetingvoluntary winding up of companydisadvantages of tpmcapital account convertibility in indiavarious branding strategies1us inrservice blueprinting processstock jobberachievements of unctaddefinition activity based costingrole of insurance intermediariesdemerits of socialismprecis writtinggearing leverage ratiojob reengineeringquota sampling advantagesstencil duplicating machineadvantages and disadvantages of organizational structureimportance of deficit financingbenefits of probability samplingcommon size comparative statementscluster sampling method definitiontqm in marketingconsumer sovereignty means that