Transaction And Relationship Marketing Essay

884 Words4 Pages
There are two kind of marketing strategies that are mostly used. The first one is transaction marketing where a company does a single transaction with a customer, and relationship marketing where a relationship with a customer is built and progressed. Relationship marketing consists of developing, growing and maintaining long-term, cost-effective exchange relationships with individual customers, suppliers, employees, and other partners for mutual benefits. In relationship marketing, the term customer takes on a new meaning. Employees serve customers within an organization as well as outside it; individual employees and their departments are customers of and suppliers to one another. They must apply the same high standards of customer satisfaction to inter-departmental relationships as they do to external customer relationships. Companies invest in programs to help improve their customers service and to improve productivity within the company, which results in better customer relationships outside the firm. Relationship marketing gives a company new opportunities to gain a competitive edge by moving customers up to a new level from new customers to regular purchasers, then to loyal supporters of the company and its goods and services, and finally to advocates who not only buy the company’s products but recommend them to others which in term makes the company successful. So it is definitely an ongoing process, where the needs and values of the customers are identified and met for the lifetime of the business. Where the relationship goes beyond the transaction. (Kathleen A. Bergeron, Relationship marketing: a key to success and survival, sep/0ct 2001) In order to be effective, relationship marketing relies heavily on information technologies such as computer databases that record customers’ tastes, price preferences, and lifestyles along with the increase

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