Traditional Marketing Essay Example | Topics and Well Written Essays - 3000 words

Traditional Marketing - Essay ExampleTraditional merchandise is in effect focused on markets and products, give little consideration to customers - what they want and need, how they buy and when. Adrian Payne (1991) notes that traditional marketing concentrates on product features, has minimal interest in customer service, limited customer contact, and where step is primarily a concern of production.The marketing mix approach is too limited to leave a usable framework for assessing and developing customer family relationships in many industries and should be replaced by an alternative model in which the focus is on customers and relationships (Gordon, I., 1999).For these reasons, not a few companies soon found traditional marketing ineffective in selling consumer products. If sales were made at all, the level does not warrant the expense sunk in the traditional marketing tools much(prenominal) as radio, TV and outdoor ads as well as trade shows and direct mail. Gradually, it wa s acknowledged that traditional marketing is not suitable for selling comparatively low-value products to the broad masses of customers. In this case, the sales income is often not commensurate with the advertising and promotional costs.In the search for a marketing system that would carry the product scope and concentrate on how to retain customers instead of simply attracting customers to products and services, marketing experts came up with the idea o... The earliest users of the term relationship marketing include Len Berry (1983) and Jag Sheth at Emory. Theodoro Levitt (1983) of Harvard subsequently expanded the initial concept to cover activities beyond individual transactions. Customer retention is at the heart of relationship marketing. Unlike the traditional marketing approach, which goes by one-shot individual transactions, relationship marketing seeks to build longer-term relationships with the customers. Thus, it calls for ways to understand the customers needs as they go through their bread and butter cycle and provides a range of products or services as the customers need these at each cycle. In short, keeping the customers forever (Gordon, I., 1999). The idea of seeking to provide the customers specific needs at each phase of his life led to the development of relationship marketing.Increased profitability is the common objective of both the traditional and relationship marketing strategies but the most glaring difference is that one makes a sale and then moves on to another prospect, while the other girdle with one customer longer to attend to all his needs. This is service marketing at work, which means servicing the customers necessities from childhood to adolescence, from middle age to his senior years. little Cost, More BenefitsThe advantage of relationship marketing is that despite the expanded scope and longer attention span provided by the companies to customers, the cost of retaining an existing customer is utter to be about 10 per cent less than the cost required in acquiring a new customer. Moreover, the company derived other benefits such as referrals. (Wikipedia)