by Kris Kennedy

Created on: November 08, 2009   Last Updated: November 14, 2009

Movement to Relationship Marketing

Business commits to marketing research to determine the most appropriate target population. If the target population provides only one transaction, the research fails to provide adequate exchange. There is a need to research a target population that can support the business over the long run. This concept is the center of the move from transactional marketing to relationship marketing.

Questions

The answer to the question, when does the sale end, provides answer that reflects the change from transactional marketing to relationship marketing. Can information after a sale help in future sales? If a business never believes a sales end at the transaction, the business is stating that the sales developed a customer not a sale. The product and transaction may have completely been satisfactory and both business and customer are satisfied with this transaction. The next question is whether in the future the two can continue positive transactions. This requires a relationship.

A business that is not in a relationship with the customers may not be able to know of the changes occurring in business. If the products sold in previous transaction no longer meet the needs of business, the future business is lost not because of the fine customer service offered. Only with a relationship, can you know of these changes and inform your suppliers. In this case, a business needs to hope the suppliers also subscribe to relationship marketing rather than transactional. If the suppliers are not listening to you, the suppliers may lose your business as well.

Example

In the automobile business, dealers attempt to build fleet departments. The dealerships want to get return sales out of businesses that purchase large fleets of automobiles. These are return sales because of the depreciation rules of thee internal revenue service. The depreciation requires frequent replacement of equipment. If you gave positive customer service but never talked to the customer when the fleet was in for service, you might not have learned these vehicles would not meet the needs in the future.

If a relationship is developed, the fleet sales can tell you of the changes in the equipment used in the business. If the vehicles do not provide for fitting the change in equipment or purpose, the business will need to move to another line that fits there need. A relationship marketing system would keep information flowing to all about future needs to guarantee that the sales continue.

The dealer can add a line if necessary to keep the business if the present line causes conflict with the target population. If the supplier see the loss of sales, the vehicle manufacturer might than ask why?

If you wait until loss of sales, there may not be enough turnaround time. Relationship marketing provides for continuity of sales.

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