See Also:
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
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.
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
