You are tasked with producing either an A3 or an A4
factsheet, which incorporates the following information (P1): (Please
include some images and reference any quotes.)
• A definition of the history/development of Relationship Marketing. To
do this you should include the following:
• Describe w...
Transactional marketing has been a highly discussed topic in the field of marketing for centuries. It
focuses on the current sale rather than building customer loyalties and developing a long term
relationship. This is commonly the case for products such as fruit and vegetables and one time usage
products. For centuries this style of making revenue has been effective for businesses; however, due
to technological advances, the rapid economic climate and consumer behaviour trends, a business
can no longer rely on just singular sales without strategy behind it. The reason a business can no
longer rely on just customer acquisition is because other businesses are using technology to their
advantage, finding out exactly it is customers wish to consume, conducting surveys to understand
what makes a customer likely to come back. All of this information helps a business to understand
their customers better and in turn builds customer loyalty to that business in particular which won’t
benefit other businesses.
Relationship Marketing
Relationship marketing is a rather new style of marketing that has only really developed alongside
technology and has now matured into becoming the main style of marketing. Morgan and Hunt
(1994) define Relationship Marketing as “all marketing activities directed towards establishing,
developing, and maintaining successful relational exchanges”. To summarise, in order to make
successful transactions, there must be some form of bond created between the business and the
customer; in doing so you are more likely to establish consistent customers and sales thus benefiting
the business. Businesses in this modern day focus on establishing those connections with customers
and building a long-term relationship which would make them a loyal customer. Loyal customers are
very likely to tell friends and family about the business which increases customers, generating more
income. They are also more likely to be willing to try new products and give feedback in order to
improve future products and services.
Service companies
Companies in the service sector are always finding advanced new ways to build long term
relationships with their customers. They primarily specialise in transactional marketing. This is due to
the specific sector they operate in; the sector they operate in naturally involves a genuine concern to
meet and exceed the customers’ expectations and provide the best possible service. For customer
service businesses they are constantly trying to provide the best possible service as it is where their
revenue is made, therefore learning the craft and how to improve makes them more efficient.
Care home jobs are absolutely dependant on relationship marketing. They look to form bonds
between their patients and families in order, although a care home is designed to look after the
patients – they are still a business and therefore forming strong bonds with their clients is more
likely to benefit them in being recommended for their services and encourage them to ell other
friends or family members.
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