Skip to main content

31. Relationships and Networks

Transaction marketing is part of a larger idea called relationship marketing. Relationship marketing aims to build long-term mutually satisfying relations with key parties—customers, suppliers, distributors—in order to earn and retain their long-term preference and business.

 Effective marketers accomplish this by promising and delivering high-quality products and services at fair prices to the other parties over time.

Relationship marketing builds strong economic, technical, and social ties among the parties. It cuts down on transaction costs and time. In the most successful cases, transactions move from being negotiated each time to being a matter of routine.

The ultimate outcome of relationship marketing is the building of a unique company asset called a marketing network. A marketing network consists of the company and its supporting stakeholders (customers, employees, suppliers, distributors, university scientists, and others) with whom it has built mutually profitable business relationships.

Increasingly, competition is not between companies but rather between marketing
networks, with the profits going to the company that has the better network

Comments

Post a Comment

Popular posts from this blog

19. What is a Market?

 Traditionally, a “market” was a physical place where buyers and sellers gathered to buy and sell goods. Economists describe a market as a collection of buyers and sellers who transact over a particular product or product class (such as the housing market or the grain market). Five basic markets and their connecting flows are shown in below. Manufacturers go to resource markets (raw material markets, labor markets, money markets), buy resources and turn them into goods and services, and sell finished products to intermediaries, who sell them to consumers. Consumers sell their labor and receive money with which they pay for goods and services. The government collects tax revenues to buy goods from resource, manufacturer, and intermediary markets and uses these goods and services to provide public services.     Each nation’s economy, and the global economy, consists of interacting sets of markets linked through exchange processes. Marketers view sellers as the industry and...
Post a Comment
Read more

37. Supply Chain

Whereas marketing channels connect the marketer to the target buyers, the supply chain describes a longer channel stretching from raw materials to components to final products that are carried to final buyers.  For example, the supply chain for women’s purses starts with hides, tanning operations, cutting operations, manufacturing, and the marketing channels that bring products to customers. This supply chain represents a value delivery system.   The supply chain is a channel stretching from raw materials to components to finished products carried to final buyers. The supply chain for coffee may start with Ethiopian farmers who plant, tend, and pick the coffee beans and sell their harvest.  If sold through a Fair Trade cooperative, the coffee is washed, dried, and packaged for shipment by an Alternative Trading Organization (ATO) that pays a minimum of $1.26 a pound. The ATO transports the coffee to the developed world where it can sell it directly or via retail channels....
Post a Comment
Read more

43. New sources of business capital

A Business capital, often referred to as capital in a business context, is the financial resources or assets that a company or a sole proprietorship uses to operate, invest, and grow. Traditionally, it can come from various sources, including: 1. Equity Capital: This is the money invested by the business owners or shareholders. It represents ownership in the company and can be in the form of common stock or retained earnings. 2. Debt Capital: Debt capital is borrowed money that the business must repay with interest. This can include loans from banks, bonds issued by the company, or other forms of debt financing. 3. Working Capital: Working capital is the money a business uses for its day-to-day operations, such as paying bills, salaries, and purchasing inventory. 4. Fixed Capital: Fixed capital refers to the funds invested in long-term assets like buildings, machinery, and equipment. 5. Venture Capital or Angel Investment: Startups and high-growth companies may secure capital from vent...
Post a Comment
Read more