Summary Marketing:Concepts & Strategies (12Th Ed.)\" - RM & TM answer PDF

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RM & TM answer...

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What are the key differences between TM & RM? Transactional Marketing: is marketing that focuses on getting the customer to buy a certain product. Relationship marketing: is marketing with the conscious aim to develop and manage long term and or trusting relationships with customers, distributors, suppliers or other parties in the marketing environment. 1. RM is market-oriented approach for management while TM is product oriented. 2. Relationship Management moved from transactional marketing approach that is simply involved with the development, selling and delivering of products to identification and appreciation of relational element of business practice. This is represented by moving away from focus on tangible products towards enhancing the value of marketers’ offerings through closer connections with their customers and moving from mass markets to mass customization; RM adds value through increased focus on customized production and one-to-one marketing and getting away from standardized mass manufacturing. 3. The TM is affected by classicist thought that follows sequential, rational and logical strategic approach while RM is more flexible in a changing business environment. 4. The competitive advantage achieved through products in case of transactional marketing approach can be easily replicated while the one thing that can’t easily copied by the competitors is the relationship with customers and other stakeholders. 5. Managerial Marketing (TM) is geared toward short-term profit maximization and relies too much upon generating sales volume through transactions with end consumers. From here it’s obvious that TM measured success through market share, be it in the volume or value, whilst RM in contrast concentrate upon the attraction and development of longterm relations between the organization as a whole and all of its stakeholders. According to RM it’s more important to be efficient in retaining the customers you have rather than to focus upon attraction strategies at the expense of retention, and it’s cheaper to retain a customer than to attract a new one. Also, the longer the relationship with the customer the more profitable the customer is for the firm. 6. RM involves incorporation of various key elements of our life world, namely such ideas as trust, promise, commitment, and mutuality. 7. RM entails involvement of the whole organization and not certain department or departments which the case in the managerial marketing. 8. RM is a win-win relationship between seller and buyer and it doesn’t deal the consumer as passive just like what is happening in TM.

Are there any industries, products or activities to which either one of these approaches is unsuitable?

To what extent are the principles of RM equally applicable to B2b and B2C marketing context? Many theorists argued that relationship marketing philosophy may not be relevant in all cases; indeed the difference between transactional and relational models is simply one of choice and suitability. Whilst managerial marketing sought to be applicable to all exchanges in all countries across all cultures, RM principles are more applicable to the B2B and service markets. Due to the nature of B2C exchanges it has been argued that RM mostly not applicable to them. Having tremendous number of customers in addition to aggressive advertising and sale promotion-driven activities make it difficult to build long-term relationships with them. For example, for a huge firm like IKEA which has numerous No. of stores, distributors and customers, it is difficult to develop and maintain direct relationships with its stakeholders. While businesses like restaurants, hotels and retailers, even the large of them, can create one-to-one relationships with their customers. Though, in certain cases of fmcg exchanges, a set of RM aspects can be adopted. Loyalty has been sought to by fmcg marketers through new means, like moving beyond the product to add value and creating dialogue with customers through incorporation of service element. But it is still important to recognize relations in the industrial and service markets differ from these within consumer markets where emphasis often placed upon the practical developments within marketing communications and/or theory of consumer-object interaction. Transference of relationship marketing to consumer markets may be difficult due to issues of database management, direct marketing and customer privacy....