transacn vs relnship marketing

7/28/2019 Transacn vs Relnship Marketing

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RelationshipMarketinga uecrea onan s ra egy mp emen a on


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gen a

e

ang ng

ocus

n

ar et ng TraditionalversusRelationshipMarketing

Approach

Transactionalversus

Relationshi

Marketin

RelationshipMarketing:principleand

TheroleofRMtocompetitivemarketing


4/22

Asamerc antyou etter avea rien in

everytown

AnancientMiddleEasternproverb


5/22

e

ang ng

ocuso

ar e ng

Customer

Competitiveposition

focus

focus

Service

Sales

MarketingMix

focus

om nan

xity

Production

focus

focus Market

dominantCompl

Productfocus

Product

Pre1800s 1920s 1950s 1970s 1980s 1990s 2000+

Time

Source:Christopheretal(1991)


6/22

Tra t ona

Mar et ngApproac

Product

Place

romo on


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ProblemswithTraditionalMarketing

Itassumes

all

segments

of

customers

are

similarandmaybetreatedinastandardizedway

Itassumes

consumers

are

passive

absorbers

of

marketinginformation

Itassumesshorttermandoftenoneoff

transactionsbased

around

the

exchange

of

goodsformoney



8/22

e n t ono

e at ons p

ar et ng

Berry(1993)

from

a

serviceperspectiveRelationship

Marketing

is

attracting, maintaining

and

multi

serviceorganizationsenhancingcustomerrelationship

ac son roman

industrialmarketing

perspective

ar e ngconcen ra e owar s s rong, as ng

relationshipwithindividualaccounts

(1992)fromaservice

perspective

,

relationships

Gronos 1995 froma To identif andestablish maintainandenhance

networkperspective relationship

with

customers

and

other

stakeholders,

at

profitsothattheobjectivesofthepartnersinterestare

met,andthisachievedbyamutualexchangeandfulfillment

o o

Source:Christopheretal(1991


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enera

o e

o

e a ons p

Marketing

Focuseson

arelationship

rather

than

transactional

approachtomarketing

Understandstheeconomicsofcustomerretention

Highlightsthecriticalroleofinternalmarketinginachievin

external

marketin

success

Extendstomorediversemarket

Recognizesthequality,customerservicesand

mar e ngnee

o

ec ose y

n egra e

Ensuresthatmarketingisconsideredacrossfunctionalcontext


10/22

e

ransac ona

o

e a ons p

Marketing

Emphasisonall

mar e oma nsan

customerretention MARKETING

Emphasison

customerac uisition

TRANSACTIONAL

MARKETING

Functionalitybased

Marketing

Crossfunctionality

basedMarketing Source:Christopher,Relationship

Marketing,

2002


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Focusinvolume Focusonprofitable retention

Emphasizes productfeatures

Shorttimescale

Little

emphasis

on

customer

Emphasizescustomervalue

Longertermtimescalers

High

customer

service

services

Moderatecustomercontact

emphasis

Highcustomercontact

quality

quality


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Principlesof

Relationship

Marketing

fundamentalgoal

of

Relationship

Marketing

present

Focusin

marketin

actionon

multi le

markets

SixMarketsModel

It must be crossfunctional

Marketingistooimportanttobelefttothe

marketingdepartment(DavidPackard)


13/22

T eRe at ons p

Mar et ng

Orientation

Quality

RELATIONSHIP

MARKETING

CustomerService

Marketing



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BenefitsRM

to

the

firms

Towinanewcustomerismoreex ensivethanto

it

is

to

to

retain

an

existing

customer Establishedcustomerstendtobuymore(shareof

Satisfiedcustomersaremorelikelytoreferothers

Loyalcustomerscanbelesspricesensitiveandmaybelesslikelytodefectduetopriceincreases

Retainingcustomers

makes

market

entry

difficult

forcompetitors


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TheRole

of

RM

to

Competitive

M rk tin tr t Value

as

the

central

role

to

develop

and

Stakeholdersinteractionprocess

eyva ueac v es


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T eRo e

o

Customer

Va ue

Isthe

difference

between

the

prospective

customersevaluationofallbenefitsandallthe

costsofanofferingandtheperceivedalternatives.

Customerstendtobevaluemaximizers


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ComponentofCustomerValuePro uct

Attributes

Service

Attributes

Perceivedbenefit Expected

Customer

Transaction

cost

e yc e

Cost

Risk

Source:Customer

Value

Toolkit,

1st Edition,

by

E.

Naumann andR.Kordupleski,1995


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TheValue

Process

ValueDetermination

ValueCreation

ValueDelivery

ValueAssessment


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Customer

retention

Employee

recruitment

FrameworkValue

determinationCustomersatisfaction

Employee

satisfactionCustomers:

Customermarkets

Employees:InternalMarket

Recruitment

Value

assessment

Value

creation

VALUE

PROCESSCustomer

Employeeretention

e erra ar et markets

Valuedelivery

attraction

Stakeholder

retention

Stakeholder

engagement

Externalstakeholders:

Shareholders

Otherinfluencemarkets

Suppliersandalliancemarkets

Stakeholder

satisfaction Source:Christopher,RelationshipMarketing,2002


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Choiceof

Relationship

Strategy

Wierseman:

Providingcustomerswithreliableproductsorservicesat

competitive

prices

and

minimal

inconvenience Productleadership

Providingproductsthatcontinuallyredefinethestateofart

Sellingthecustomeratotalsolutionnotjustaproductor

service


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e erences Chistopher,Martin,AdrianPayneandDavidballantyne (2002).Relationship

Marketing,creatingstakeholdervalueButterwor.thHeinemann.

Harwood,Tracy,T.

Garry

and

A

Broderick

(2008).

Relationship

Marketing:

Perpectives,DimensionsandContext,McGrawHill.

aumann, . n . or up es . ustomer a ue oo t, s e t on. out

WesternCollege\publishing.


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