Evert Gummesson defines relationship marketing (RM) as “marketing seen as relationships, networks and interaction.”
Marketers recognised that customer retention plays a significant role in marketing and it needed to be incorporated into strategy. New elements of RM initially were treated as add-ons to traditional marketing, however, now there are two approaches: RM and transactional marketing (TM). TM “focuses on making a sale rather than on the ongoing retention of customers". It is an alternative or complementary approach to RM meaning that the appropriate strategy is subject to the organization.
RM is not just a supplier to customer relationship. It is made up of a constellation of successful relationships including customers, suppliers, partners and competitors, employees, distributors, regulators and influencers, which results in the ability to serve the end customer better, if the relationship is of good quality. For example, British Airways and Virgin Atlantic demonstrates the competitor relationship as they are partners in a passenger COVID-19 vaccination trail. This means that two industry competitors have formed a relationship, which is essential in RM, to overcome a problem in the macro environment that benefits both organisations.
By implementing a supplier-oriented approach, TM concentrates on customer acquisition which is explained by Gummesson as the one-shot deal. This is where customer retention is not at the forefront of marketing strategy, as opposed to RM.
Sources:
Anderson, L. M., & Taylor, R. L. (1995). McCarthy’s 4Ps: Timeworn or Time-Tested? Journal of Marketing Theory and Practice, 3(3), 1-9. https://doi.org/10.1080/10696679.1995.11501691
Auruškevičienė, V., Kuvykaitė., R., & Škudienė, V. (2007). Relationship and Transactional Marketing Integration Aspects. Journal of Engineering Economics, 4(54), 78-86. https://www.ceeol.com/search/article-detail?id=120727
Godson, M. (2009). Relationship marketing. Oxford University Press.
Grönroos, C. (1994). From Marketing Mix to Relationship Marketing: Towards a Paradigm Shift in Marketing. Management Decision 32(2), 322–20. https://doi.org/10.1108/00251749410054774
Gummesson, E. (1987). The New Marketing - Developing Long Term Interactive Relationships. Long Range Planning, (4), 10–20. https://doi.org/10.1016/0024-6301(87)90151-8
Gummesson, E. (2008). (3rd ed.). Butterworth-Heinemann.
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