Transactional Marketing: Transactional Vs. Relationship Marketing

1950 Words 8 Pages
1.0 Sales and Marketing
1.1 Transactional vs Relationship marketing

Marketing today is very different to how it used to be. Effective marketing is all about understanding the external market and identifying that the customers are looking for something unique rather than what is already available. There are two approaches that an organisation can take when marketing a product to the consumer. These are transactional marketing and entrepreneurial or relationship marketing. Relationship marketing, is a more modern approach to marketing today, as it is a way of gaining repeat sales and a close relationship to the customer. Relationship marketing is defined as an “attempts to involve an integrate customers, suppliers and other infrastructural
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Wenerfelt, B the founder of the theory, believes companies and their managers should seek internally of the business for things that will give them a competitive advantage rather than externally. Having good resources is what drives an organization to gain better results. The physical resources of the company, which are also known as tangible assets can be obtained by anyone and therefore only offer a short terms competitive advantage. This theory contradicts the actions taken in Simventure as the organization leader decided to move premises after the first three months. With more employees and the business doing well, a bigger premises was needed in order to be able to cater everyone and allow room for growth. This decision was a big cost to the business, however with the new premises being located in a retail unit this allowed the sales to cover the cost of rent. The retail unit gave us the benefit and competitive advantage of having a face to face contact with consumers used in relationship marketing that was discussed earlier. Being an entrepreurials company, it is often difficult to seek internally as wenerflt B suggests, for ways to gain competitive advantage and our decision to seek externally was a valuable decision for the

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