FACTS ABOUT TRANSACTIONAL MARKETING
If we dive into the term “MARKETING” itself, we are surrounded by various kinds of theories and definitions. We can say that it is a process of interaction between the buyer and seller where they can exchange offers, deliver or research their products and even make promotions on that.
However, this is not enough to know about Marketing largely. It has much wider concepts throughout history and even today it is largely evolving.
So considering this fact, the present-day business strategy comes up with many other ways to enhance their marketing skills and quality, one of which is called “TRANSACTIONAL MARKETING”. So this is mostly one such business strategy that focuses primarily on selling their products at once. It is the most basic kind of strategy that thinks of how they can maximize their sales from a single viewpoint. Here the Customer’s consent or the likes and dislikes aren’t counted, but only a short time service by the company is provided which generally follows the “4 P’s” formula of marketing. Now we can even call them the market variables that enhance or add to a firm's transactional marketing strategy. They are as follows:
PRODUCT: Where the firm shows up with its primary product and makes it available with promising quality.
PRICING: Here the company offers a price that satisfies both sides of the customer as well as the market. So the price is both affordable to the customer and profitable for the firm simultaneously.
PLACEMENT: Here the firm establishes a comfortable, barrier-free channel for the consumer to act on their marketing process. In short, it is mostly the market coverage area to that extent where the company can carry out its product selling and displaying activity.
PROMOTION: Where the firms assure the quality of their product and make it attractive for the consumer to buy it. So it makes the promotion of the product in such ways to the customer.
BENEFITS OF TRANSACTIONAL MARKETING:
This enhances the sales on the market to such an extent that it almost sells all of its collected products and creates a demand for newer sales. So this strategy helps the Market inventory to clear out very rapidly ensuring it fills up with new and updated products again.
Due to the short-term commitment and one-direction strategy, this type of marketing maintains a quick selling of their products as they offer prices that tend to satisfy the customer’s need. As their main motive is to ‘sell’ the product as fast as they can in a single time period and attain new customers.
This also affects the customers’ behavior towards the company as when they get a product at their required price they tend to think of buying in bulk and simultaneously the value of the product seems valuable to them. So this indirectly adds to the revenue of the company.
Since the tenure of the marketing is short so there are no expectations from both sides of the company and the customer, hence there is no fear of loss which again adds a benefit to the firm.
STRATEGIES INVOLVED IN TRANSACTIONAL MARKETING:
UPSELLING: Here, the Company gives some add-ons alongside their products to enhance their product and make the customer buy the much-upgraded version of their product despite its high price. So this benefits the firms’ revenue at the same time so they tend to focus on those qualities.
CROSS-SELLING: Here the company offers a substitute for their primary product which tends to confuse the customer and leads him to compare the two and choose. This indirectly gives a double benefit to the firm.
BULK DISCOUNTS: Here the company tends to offer price discounts to the customer on buying their products in bulk which again benefits the business of the product.
BUNDLING: This is where the company assures an additional services package along with the product which makes the customer buy the product in return for the free services. So again this enhances the selling of the company.
SALES PROMOTION: This is where the firms tend to give huge discounts and make it appear to the customer that they are giving new and better versions of their products within a short time span and at a very affordable price. So that enables the company to sell its older products and replace them with newer ones very easily and at a fast pace of time.
So, that was about Transactional marketing in a brief. However, along with benefits, this strategy comes with some disadvantages as well which are as considered below:
REACTIVE MARKET COMPETITION APPROACH:
Since the firm mainly focuses on selling its products despite any expectations from the customer’s viewpoint, they tend to pay attention only when there is any change occurring in the overall market condition so they are less competitive in such cases.
NO REAL ASSURANCE OF THE PRODUCT:
As the firm’s primary goal is to sell thor as many products as they can in a short time span, they don’t focus much on the real quality or development of the product and also the customers have cost-centric minds, which leads the customer to focus only on cheaper commodities at a large bulk.
EXAMPLES OF TRANSACTIONAL MARKETING:
The best example can be creating an impression about the product through phone calling the customer. So here the “brokerage firm” also gets its role and chances a commission for each call. Hence, the company reaches out to customers to make them buy their products and just on one call without any expectations to get denied as their main motive is to sell at a fast pace and complete the process. So they do not tend to care about the customers but at the same time benefit the company with these processes.
Hence, this is a good process to enhance the outgrowth of the market as well as keep in mind customer satisfaction. But definitely with the increase in technologies, interactions between buyers and sellers have become easy and accessible thereby opening more greater opportunities for the business or firm to promote its growth.
Hence it is most correctly said by the famous American Business executive, former vice-chair of Electric, and also an author BETH COMSTOCK that
“You have to tell a story before you can sell a story”.
This is absolutely true for a marketing strategy like this which highly aims to sell products in the most conventional ways.
Comments