1.

What are the similarities between relationship marketing (RM) and transactional
marketing (TM)?
All have the same:
- Starting point: focus on customer satisfaction.
- Goal of generating profits, revenue and improving business performance.
- Need the same instruments to do the marketing plan.

2. How does an RM strategy differ from a TM strategy?

Relationship marketing Transactional marketing

strategy
Create a connection that ensures customer
retention and repeats purchases, building
and maintaining long-term relationships
Objective with customers, clients, partners, and
businesses which can influence the
business directly or indirectly.
strategy
Maximize the number of sales
and the profit by constantly
attracting new customers, rather
than encouraging repeat
purchases with the buyer.

Marketing rules are relatively clear,

defined, and constant. Marketing rules are very clear,
Marketing Market is relatively bound by network and defined, and constant.
environment alliances. Market is bound by countries
The boundaries between firms are blurred, and regions.
if not completely eroded.

Mass customization Mass production

Production
(enhancing the value of marketers’ (tangible products)
focus
offerings)

Competitive The long-term and close relationship with The quality of the product.
advantage customers and other stakeholders.

The relationship is based on value creation

in interactions between the supplier or
Just a passive relationship
Relationship service provider and the customer;
between buyer and seller.
cooperation is required to create the value
that the customer is looking for.
3. Which kind of industries could benefit from the use of RM versus TM and vice versa?
- Industries suitable for RM:
Complex computer systems (electronic items, software), building projects, financial services,
insurance, and healthcare (because cooperation and partnership between the partners are
needed to get a satisfactory solution for the customer).
- Industries suitable for TM:
Where mass production of standard products is taking place, like foodstuffs, components, and
raw materials (like cement). Sale of movie tickets, railway tickets, online sale, sale at malls.

4. In which situations would customers not be expected to be interested in RM?

- Low customer interactivity. They don't like the company's products or services.
- If the customer finds that they are not getting the long-term commitment and experience as
well as the quality service.