What Is Transaction Oriented Marketing? | Your Business
Transactional marketing is completely focused on making sales. The conception of relationship marketing is implanted with the mind-set that is it inexpensive. order to define the customer orientation (transactional vs. relational). . customer orientation into a more global concept: the firm's market. An alternative to the transactional model, relationship marketing, emphasizes customer retention and future interaction with the company. There are advantages.
Relationship Marketing Relationship marketing has broader, longer-term goals than transactional marketing. Relationship marketing focuses on developing long-lasting relationships with clients to secure sales well into the future. Some relationship marketing strategies including branding, customer service training, community and media relations, social media, newsletters, blogs, referral programs and frequent buyer incentives.
Relationship Marketing vs. Transactional Marketing | Your Business
These marketing efforts are investments in the promise of long-term sales. Face-to-face interaction is less frequent, and many more services and product transactions are occurring behind a computer screen.
- What Is Transaction Oriented Marketing?
With a few clicks on their keyboards, clients can access a world of information that influences their purchase decisions, making the client relationship more important than ever.
While the Internet has reduced face time with clients, it has provided more and different avenues to develop relationships with current and prospective clients.
Some product companies never had direct relationships with their customers before the proliferation of the Internet and social media. The stores that carried their products exclusively built and maintained the client relationships.
Now, manufacturers are reaching their customers more directly, branding and building relationships through interactive and educational features on their websites, blog articles and posts on their Facebook pages.
Discount coupons, cash back offers, bonus giveaways and mail-in rebates all have the effect of driving immediate sales with benefits for the one-time customer that require no long-term commitment.
Many small businesses attempt to build brand loyalty through the use of membership programs, loyalty rewards and points systems that build over time and result in a mutually beneficial relationship for both the consumer and the business.
Those who engage in transaction oriented marketing focus instead on the now and front load promotions to reflect that approach. Point of Sale Increasing the number of ways that consumers can make a purchase is a common method of promotion in transaction oriented marketing strategies. The thinking behind such methods is simple.
When there are more opportunities for the consumer to buy, the consumer may buy more. For example, customers who have to get in their cars and drive to your small business then stand in line and pay cash only will find the purchasing process far less convenient than those who can jump online and buy direct from your website.
Anything that increases the number of ways a consumer can buy your product, or reduces the effort required to make that purchase, is a viable transaction oriented marketing method. Problems The main problem with transaction oriented marketing is its unabashed treatment of the customer as a source of revenue and little else. When used as a primary or sole small business marketing strategy, transaction oriented marketing demonstrates a lack of concern for customer service, customer relations and future loyalty and can leave a small business with a huge number of former customers who no longer patronize the company.