Difference Between Transactional and Relationship Marketing

Any product or services can only be considered successful when they sell well in their comparative market. For this reason, marketing is an inseparable part of every business.

However, the marketing strategy is not a straight forward thing. Every product has a niche category and its dedicated market. Any product that is designed for the mass-market may not satisfy everyone.

At this moment, the marketing strategy can be segregated into two parts. These strategies are transactional and relationship marketing.

Transactional vs Relationship Marketing

The main difference between Transactional and Relationship Marketing is that the transactional marketing strategy emphasizes on selling goods and makes a one-way communication with the customer, while relationship marketing utilizes good customer relationships for their product or service sales.

Transactional vs Relationship marketing

 

Comparison Table Between Transactional and Relationship Marketing (in Tabular Form)

Parameter of ComparisonTransactional MarketingRelationship Marketing
What is it?An aggressive marketing strategy where the primary goal of the business is to sell any product or services to the customer.A sales strategy that utilizes good customer relationships for their product or service sales.
Time frameLimitedLong term
Main objectiveMaximize salesDevelop a good relationship with the customer
Marketing mediumConventional advertisementWord of mouth and social marketing
CostExpensiveinexpensive
Used byMost fast-moving consumer goods (FMCG) companies.Multi-level marketing (MLM) companies.

 

What is Transactional Marketing?

Transactional marketing is an aggressive marketing strategy where the primary goal of the business is to sell any product or services to the customer.

Finding new customers for the product or services is a big part of this strategy. For this reason, the marketing companies often use advertisements to push forward transactional marketing strategy.

Transactional marketing does not accentuate post-sales service. Most advertisement agencies also do not take customer feedback when they use a transactional marketing strategy.

Even though this marketing strategy is very costly, but it is very effective to sell large amounts of products or services to the mass market. There must be a large number of potential customers available to make this strategy viable.

Best use of this marketing strategy can be found with festive season sale, sale at malls, buy one get one offer, etc. Various fast-moving consumer goods (FMCG) companies utilize this method of marketing.

transactional marketing
 

What is Relationship Marketing?

Relationship marketing is a sales strategy that utilizes good customer relationships for their product or service sales. This marketing strategy emphasizes heavily on the one to one relationship with the consumer and seller.

This marketing strategy is not bound by any time frame. Instead of a quick sale, this marketing strategy takes time to deliver results. This marketing strategy depends on the brand value of the product.

Consumer feedback is an important aspect of relationship marketing. The marketing company always needs to maintain two-way communications with the consumer.

Compared to other marketing methods, relationship marketing does not utilize conventional advertisements. Instead, relationship marketing methods utilize the mouth of word marketing or social media promotion.

This marketing strategy delivers better results where the number of consumers is limited. It helps both buyers and sellers come to a satisfactory agreement before the exchange.

relationship marketing

Main Differences Between Transactional and Relationship Marketing

  1. The expenses for transactional marketing are quite high and most small businesses cannot afford it. But the expenses for relationship marketing are quite low and even small businesses can afford it easily.
  2. Most fast-moving consumer goods (FMCG) companies use a transactional marketing strategy. They often provide festive season sale, sale at malls, buy one get one offer, etc to sell their products and services.

 

Conclusion

Transactional and Relationship Marketing are both effective marketing strategies. But they are effective in different places.

Contrary to transactional marketing, relationship marketing is designed for a limited market. This strategy does not utilize conventional advertisements. Therefore, it can be successful with a small group of people.


References

  1. http://www.jois.eu/files/JIS_Vol8_No1_Sonkova_Grabowska.pdf
  2. https://www.forskningsdatabasen.dk/en/catalog/2526389757
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