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  Рwhich we term the transactional approach Рand 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.

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