Thursday, June 12, 2014

Relationship Vs Traditional Marketing : Which Way To Go?



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Relationship marketing was first defined as a form of marketing developed from direct response marketing campaigns which emphasizes Customer Retention and satisfaction, rather than a dominant focus on sales transactions
As a practice, relationship marketing differs from other forms of marketing in that it recognizes the long term value of customer relationships and extends communication beyond intrusive advertising and sales promotional messages
Relationship marketing therefore can be seen as the strategic management of collaborative relationships with customers and other stakeholders, in order to create value and distribute evenly.
Traditional Marketing on the other hand refers to marketing methods that emphasize mainly on the 'Four Ps' principles. It comprises of Product, Price, Promotion and Place. A marketer has to consider the 'Four Ps,' before launching a product or offering a service.
It focuses on sales of the moment, in the background leaving the relationship with the customer, focusing its action on the product or service that has generated the production of the company, looking to sell as soon as possible and streamline the business profitable stocks.
Some differences between traditional marketing and Relationship marketing can be deduced to include the following:

Traditional Marketing
(i)                 Finds the steady increase in sales.
(ii)               Looks to have sporadic contact with customers to sell their stocks punctual.
(iii)             It focuses on the characteristics of the product or service.
(iv)             Seeks instant and immediate sale.
(v)               It works on the basis of return on their stocks.
(vi)             The quality concerns only the production staff.
(vii)           Seek immediate profit of the seller.
(viii)         It is aimed at a target and broad masses.
(ix)             The positions of the vendor and the client are clear.
(x)               Looking for immediate sale depending on the quality and price.
(xi)             It faces economic exchange.
(xii)           It is based on the direct and massive.
(xiii)         Communication is one-way: company -> customer.
In short, traditional marketing is facing economic exchange.
Relationship marketing:
        i.            Find sales that are of quality and continuous in time, no intense promptly.
      ii.            The goal is for the customer contact is uninterrupted.
    iii.            It develops and on the client. The customer is king.
    iv.            Customer feedback is important and constant, especially once the customer has used the product or service
      v.            It focuses on customer value on perceived value and you want.
    vi.            The product or service is developed according to your wishes.
  vii.            Look for the win-win:
viii.            Product quality and service concerns all personnel of the seller.
    ix.            It is more personalized customer focus action seeking customer.
      x.            The boundaries of the sale are unclear, as a joint effort between the vendor and the customer.
    xi.            We need to develop internal marketing activities for the whole company staff collaborate.
In short, Relationship Marketing aims to exchange value.
Conclusion
The use of each of the marketing strategies is to assume a way of understanding the marketing, the market and the company. In expanding markets, which dominates demand on supply, traditional marketing is often more effective than relationship marketing, however, in mature markets where supply exceeds demand and there is certain saturation, relationship marketing is the road and clear strategy to follow.
Every company in the market depending on who moves, even being in a state of expansion, it is convenient to use relationship marketing procedures, as customer retention costs are always lower than those of re-conquer.
In service companies, relationship marketing is the clear path to follow and use, because if you use this strategy as a whole get a significant competitive advantage, differentiating you from other competitors. In the long run you will be much more profitable and stable strategy.

Writer:  Muchiri Mathenge
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