traditional marketing vs modern marketing

7/30/2019 Traditional Marketing vs Modern Marketing

1/10

Transaction Marketing

v/s

Relationship Marketing

Saksh i A roraAMF-36

Shivani Gup ta

CMF- 08


2/10

Transactional Marketing

Transactional Marketing is also known as Traditionalmarketing.

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


3/10

Transaction marketing definitely won't work forevery business model. However, it makes

sense when you're selling something that isn'tgoing to be popular for long.

For Example:

Sales agent who is being given commission foreach sale he makes. The sales man tries topersuade the customer to buy the product bydescribing the benefits of the product, andsales the product and then never gets back tothe customer.

If you were selling themed merchandise for anew movie, you probably wouldn't need todevelop relationships with your customers. It'snot likely they will want to buy any moremerchandise when the movie isn't newanymore.


4/10

ADVANTAGES

Fast jumps in income for

little upfront investment

Cost Savvy

For example, certain

transactional marketing

campaigns cost nothing

more than a phone call orsending 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 theshort term, boosting sales.

DISADVANTAGES

One and done

concept Less recognition of

brands

Spend less time

acquiring customer


5/10

Relationship Marketing Intense rivalry led to shift from transactional

marketing to relationship marketing. basis -

building and maintaining long termrelationship between buyers and sellers

based on trust and commitment

elements - similar to personalrelationships

shared values, trust, mutual respect, mutualbenefit, frequent communications, honestfeedback, cooperation, flexibility,understanding, relationship commitment


6/10

emphasis

keeping existing customers

forming and maintaining strong long-term

ties

social (friendship)

economic ( joint investment) technical ( joint product development)

basis

communications, consultancy, conflictresolution, value added services,

coordinated responsibilities, long term

relationships


7/10

Organizational

Benefits Cheaper to keep

existing customersthan 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 ofcomplex services

Confidence benefits


8/10

Functionally-Marketing Cross Functionally-

Marketing

Emphasis on all 6

marketdomains(especially

customer retention)

Emphasis on

customer market

domain(especially

customeracquisition)

Relationship

Marketing

Transaction

Marketing


9/10

Marketing Strategy

Continuum

Transactional Marketing Relationship Marketing

Time perspective Short term Focus i.e. single sale

recruitment

Long term focus i.e. retention to

customer

Dominating Marketing Function Marketing Mix Interactive Marketing(supported

by Marketing Mix activities)

Price Elasticity Customers tend s to e more

sensitive to price

Less Sensitive

Dominating quality dimension Quality of output(technicalquality dimension) Quality ofInteractions(Functional quality

dimension)grows in importance

& may become dominant

Measurement of customer

satisfaction

Monitoring market

share(Indirect approach)

Managing the customer

base(Direct approach)

Customer Information System Ad hoc customer satisfactionsurveys

Real-time customer feedbacksystem

Interdependency between

marketing, operations and

personal

Interface of no or limited

strategic importance

Interface of substantial strategic

importance

The role of Internal marketing Internal marketing of no or

limited importance to success

Internal marketing of

substantial strategic marketing

Transactional v/s Relationship Marketing


10/10

THANK YOU

traditional marketing vs modern marketing

Documents