Question

Now, let's shift gears and focus on (In the Learning Resouce list), Introduction to Consumer Behaviour by BLYTHE, page 10-12 the discussion focuses on "Relationship Marketing vs. Transactional Marketing". Identify one retail brand that (in your opinion) practices Relationship Marketing and one retail brand that practices Transactional Marketing. Support by citing TWO reasons why each are examples of the respective types of marketing. DO NOT repeat another classmates examples.

https://www.slideshare.net/kumaravinash23/chapter-1-consumer-behavior-its-origins-and-strategic-applications

Answer 1

Relationship marketing is a facet of customer relationship management that focuses on customer loyalty and long term customer engagement rather than shorter term goals like customer acquisition and individual sales.

Starbucks uses Relationship Marketing.

Reward : For every money spent starbucks gives points which can be redeemed next time in the bill.

Reveal: The creative uses imagery and text to communicate the value proposition of the offer and important details of the offer are in closed proximity.

Relevant Offer : Gives relevant offer to the customer according to the need.

Transactional Marketing : It is a business strategy that focuses on single point of sale transactions.

An example of sales marketing is a sales pitch on QVC. The clock is ticking, and the goal is to sell as many of the featured item as well. they only use incentives, discounts and buzz words to make as many sales as they can during a short period.

Insurance Companies: they use transacttional marketing. they give offers etc just to increase sales.

For example : Orient Insurance!