Marketing started in the 1970s and was known as Traditional Marketing or better known as Transactional Marketing. This transactional marketing is basically about some simple exchange of goods or an object between two parties according to their needs and wants by obtaining and by offering something in return. This kind of exchange activity is widely known as barter trade. However this activity is no longer in practise as business transaction had been introduced which is known as sell and buy activity which involves the trader to sell the goods and the customer pays money in return. The transactional marketing is a short term based marketing where the main motive is to make the sale and the level of customer service is practically very low. There is lack of customer contact which results in low customer commitment therefore there is no long-term relationship between the trader and the customers.
However we are able to trace back the history of marketing practices on how the invention of mass production, the emergence of middlemen and the separation of the producer from the consumer in the Industrial era led to transactional focus of marketing. Now, due to the growth and advancement in technology, direct marketing is staging a comeback, leading to a relationship orientation. However, the development of marketing as a field of study and practise is undergoing a re-conceptualization in its orientation from transactions to relationships. We can observe that the paradigm shift from transactions to relationships is related with the return of the direct marketing both in business-to-business and business-to-consumers market.
Relationship Marketing is an approach that focuses, not on closing a single transaction, but rather on establishing on a strong long-term relationship with customers based on understanding and fulfilling their evolving needs and wants. In other words, it is all about retaining the customers with us so that they keep coming back to us.
Tight competition in business has driven most of the companies to become innovative and produce high quality products in order to fulfil the customer needs and wants around the world and most of all ensure their relevance and survival. Therefore managers of the companies had realised that they had to work hard in order to compete in the market and most of them realised the emergence of new competitors in the global market were a threat and opportunity to gain new market. Companies had to come up with new relationship marketing strategies in order to compete in the market to sustain global relevance and presence.
Relationship marketing is designed to develop good connections with customers by providing them with information suited to their needs and interests and by promoting open communication. This kind of approach gives positive feedback and results in referral activity, high customer turnover which means repeated business and a willingness of the customer to provide relevant information to the organization.
In the tourism industry, relationship marketing refers to developing a detailed understanding of what our clients want from a holiday and working to full fill the needs and wants of the customer.
Under the subject of Relationship Marketing, I learned many things regarding what Relationship Marketing is all about and how do we maintain good relationship with the customers and business partners for the growth of our business.
What are the key point that needs to be taken into...