Transaction Marketing and Relationship Marketing
I have researched two different styles of dynamic marketing practices ‘Transaction’ Marketing and ‘Relationship Marketing’, depending on the kind of business (service) and products that you are selling. Also in addition, what type of customer (audience) you’re wishing to attract, including short and long term customer relations goals for business.
Transaction marketing (also known as Traditional marketing) is a business strategy that concentrates on single transactions or point of sale transactions. The emphasis is solely maximising the high turnover volume of stock and revenue of sales during a short time period. Some examples of organisations that use transactional marketing are Poundland, Lidi’s and Primark. Limited or no focus is centred on developing a relationship and relationship building with consumers or suppliers. However focus is given on making the sale, “the marketing process ends when the sale has occurred, the sale is the objective and the end result of the marketing effort.” (Brendt, Brink, 2009).
Relationship marketing is a marketing strategy from direct marketing campaigns rather then focus on one sales transaction. This encourages attracting customers, who shall return for repeat business consistently and remain loyal, that in the long term is a cost effective marketing tool to retain satisfied customers. Customer Relationship Marketing (CRM) is a process that builds customer relationships, customer loyalty and brand value and brand building by using long-term marketing strategies. Relationship marketing can include the use of Internet social networking media tools to create brand awareness, also to improve products on results of customer feedback. Please refer to Appendix 1.Table. Different focuses of transaction and relationship marketing
Primark Stores Limited is an Irish clothes retailer; in the UK it has 161 Primark stores and, in Republic of Ireland has 38 stores trading as Penneys since 1969. Primark uses the method of transactional marketing as it concentrates maximising sales of its existing products in volume and revenue. The marketer E. Jerome McCarthy introduced ‘the four Ps’ marketing strategy in 1960: -
PRODUCT – PRICE – PLACE – PROMOTION
Primark transactional marketing strategy has responded to the four P’s:
Product Primark keeps up-to-date with fashion trends.
Price Primark delivers the products at budget prices.
Place Primark stores are always situated at prime locations in high streets. Primark recently opened a store with an extremely high footfall Oxford Street, London.
Promotion Primark is a low cost branding (disposable cheap clothing)
Primark is one of the only few major high street fashion chains that does not have an online web shop, or offer Smartphone apps downloads. With Primark keeping a low cost marketing budget means in turn Primark can offer these savings onto the customer. Primark rely on word of mouth recommendation, which...